Shopping centers of the future will become just “centers” by reinventing themselves as mixed-use destinations and adding healthcare, educational, and leisure uses, according to new insights from The Future Of Retail 2030, a series from CBRE. The report also predicts that gas stations will become mini-logistic hubs and serve as collection points for online shoppers.
“The speed of change may catch some people by surprise, as the mindset and requirements of the consumer will evolve more quickly than the industry can adapt. Investors and occupiers need to get ahead of the changing trends.”
“Retail will evolve at a quickening pace, reshaping the roles of the shopping center, the gas station, and the store,” says Natasha Patel, CBRE director of global retail research. “The speed of change may catch some people by surprise, as the mindset and requirements of the consumer will evolve more quickly than the industry can adapt. Investors and occupiers need to get ahead of the changing trends.”
The report examines 40 insights on how retail will change amid changes in consumer lifestyles, urban environments, retail operations, logistics, and other trends affecting the industry. CBRE revealed the first eight of those trends in early November at MAPIC, the retail real estate conference in France.
“Customers want quick access to goods and services across any and all channels, and they want meaningful experiences around their purchases, be that education, entertainment or wellness,” says Anthony Buono, CBRE executive managing director of retail advisory and transaction services for the Americas.
Other insights outlined by CBRE in the Retail 2030 series include:
|Smartphones will no longer exist, but mobile commerce will grow. As augmented and virtual reality mature, overall dependency on smartphones will decrease. Smaller and wearable gadgets will connect people to the Internet of Things and provide access to most information and services. Retailers and landlords will need to prepare to provide digitally enabled environments that can leverage consumers’ connectivity.|
|Independent stores and F&B operators will be more prevalent. Retail destinations will feature unique offerings curated toward the local clientele. Retail chains will begin to further develop local concepts and brand names to give the appearance of independence.|
|Cashwraps will be replaced by faster cashless ways to pay. Many retailers have already taken away the physical checkout desk. This is likely to continue as technology plays an increasingly important role as an enabler of retail sales. This will result in a reduction in the number of retail assistants required in this part of the customer’s in-store experience.|
|Fitting rooms will help the shopping experience. Technology will allow customers to try on an outfit in a virtual environment and show items already owned in combination with the item being considered for purchase. Fitting room technology will also allow the customer to request a different size or style via touchscreen. This will negate the need to leave the fitting room.|
|Wellness establishments will proliferate. The Instagram generation will continue to evolve and will have an even greater interest in looking and feeling good. Fitness centers will become commonplaces in malls, urban areas, and in new-build residential properties.|
|Retail will be leisure. As stores become showrooms, in-store leisure elements will dramatically increase. The divide between retail and leisure will become blurred as retail brands address the need for an experience in their store.|
To learn more about CBRE’s Future of Retail 2030, click here.