Pop-Ups are Bringing Excitement to Brick and Mortar Retailing

No Longer Just a Retail Trend, but a Way to Build Traffic and Brands
They began popping up in the bleak days of the last recession when shopping was dormant and retail vacancy rates reached 13 percent. Their focus was typically seasonal and their leases were temporary but they helped many a retail property manager survive the downturn. But the pop-ups didn’t fade away when the economy bounced back. In fact, these stop-gap stores have evolved into a $10 billion industry that some retail trend watchers say can help bricks and mortar merchants counter their online competition.

Pop-Up Retail: Custom Made for the Experience Economy
No longer just sellers of Halloween costumes or holiday decorations, pop-ups now provide innovative, sometimes daring, ways for retailers and brands to lure shoppers (especially experience-seeking Millennials) away from their screens. These temporary retail outposts sprout in urban centers, in malls, galleries and public spaces and in unexpected venues like barges, buses, even shipping containers. Known for pushing the envelope of retailing, they rely on the elements of novelty and surprise not associated with traditional stores. Read more: http://popupinsider.com/pop-up-phenomenon/

By now, virtually every brand category has at least dabbled in pop-up retailing. From big names like Nike, Reebok, Levi’s and Samsung to avant designers like Comme des Garcons to newcomers like Etsy artisans, looking to test the market, all have gone the pop-up route. Target has used the pop-up concept repeatedly for cause marketing and to promote its top product lines. eBay stepped out of the virtual world with Showhouse pop-ups decked out in furnishing and accessories available for online bids. Then there’s the Meow Mix Cat Cafe for cats and their humans, which set up temporary residence on Times Square. The creativity shows no sign of stopping.

Traditional department stores have joined the pop-up phenomenon too. Nordstrom turned the concept around with Pop-In @ Nordstrom, where select branches play host to new designers and product purveyors, some chosen because they are usually unavailable in the local market.

What Makes Pop-Up Retail So Hot? Fun and Exclusivity
With their ingenious presentations and unexpected venues, pop-ups offer something absent from the typical shopping experience: fun. When Pop-Up Republic, a specialty marketing and management company, conducted a recent survey, they found that 30 percent of pop-up customers were looking for fun in their shopping experience. Besides fun, pop-ups deliver a sense of exclusivity. Merchandise is often new to the market, making buyers the first to own it. And since the stores operate on a temporary basis, opportunities to acquire merchandise or experience the environment are time-limited –also contributing to a sense of exclusivity. Read more:

https://www.shopify.com/enterprise/91139206-why-pop-up-shops-are-the-future-of-physical-retail

Besides generating sales, pop-ups are attention magnets, capturing both news coverage and social media comments. Marketers are increasingly making them an integral component of their overall advertising initiatives.
More than a Retail Trend: Count on Pop-Ups to Keep Popping Up
Yes, those temporary tenants from a decade ago have morphed into a thriving sector of the retail industry. They are supported by specialty architects and designers like Lion’Esque Group, global consultants like Retail is Detail, and real estate firms like Storefront that match pop-up retailers with available space. And having put fun into shopping, they may be just the boost the old bricks and mortar world needs right now.

Twelve Trends Will Shape The Year in Retail

Ahead: Smaller Stores, Personalization, Experience, and Tech Everywhere
Last month – January – is always “Predictions Month,” with pundits in every industry scanning the horizon for what’s ahead. We’ve reviewed most of the 2017 retail and retail real estate outlooks and wanted to share what we think is the best of the bunch. The comprehensive list that follows is from the Vend blog and includes observations from experts worldwide. Keep an eye on these twelve as the year rolls forward.

Shoppers Will Seek Retailers Who Deliver a Good In-Store Experience
1. Stores offering unique shopping experiences will thrive. “Experience” includes special additions like food services, but also the delivery of a seamless shopping experience, reflecting the online world. Crate + Barrel’s “Mobile Tote” is a good example. Shoppers use store-provided tablets to browse and note their favorites, while sales associates ready their orders.

2. Smaller stores will win out over their super-sized counterparts. Time-starved shoppers have less tolerance for navigating big spaces and look for easy-to-access inventory. Target, Best Buy and Ikea have jumped in with junior box stores. Expect more to follow.

3. Specialty stores will perform better than department stores. Building on #2 above, smaller venues with well-curated inventory and a knowledgable staff will beat the traditional department store concept. Note: those Millennials everyone is chasing are specialty store fans.

4. “Retailment” (the fusion of retail and entertainment) is the new game in town. To entice shoppers to leave their screens for an out-of-home experience, retailers will deliver everything from virtual reality to pop-ups. Note the rise of theaters that serve dinner and cocktails along with the movie.

 

Services Will Be Expected

5. Shoppers will expect same-day shipping. Consumers want the traditional gratification of having their purchase on the day they make it.

6. Personalization will be more important than ever. Shoppers want to be recognized and rewarded. Loyalty programs will step up their game with more customized offers based on buying history and other data.

 

The Reign of Tech Will Continue
7. Mobile will be the way to pay. TechCrunch predicts that there will be 447.9 million mobile payment users this year. Purchases in this mode will total $60 billion in 2017 and $503 billion in 2020. Savvy retailers will adopt whatever system fits them best, choosing from custom apps or third-party options like Apple Pay.

8. Omnichannel growth will continue. Effective omnichannel strategies will separate the winners from the losers in 2017. Vend’s retail trend watchers expect to see retailers push omnichannel in bold, new directions to deliver that seamless experience.

9. Data will continue to drive retail success. Data will be a force in every aspect of the retail process from supply chain to purchase. Collection and analysis of information will be a top focus, with social shopping making a major contribution.

10. Retail and tech will unite to deliver new ways to bring shoppers into bricks and mortar stores. Science fiction will come to shopping: the Internet of Things, virtual reality, artificial intelligence and robots.

11. Apps, services and third parties will help bricks and mortars compete with online. But there’s one caveat: retailers will need to be selective about the tech products and platforms that serve their particular needs. There will be many to choose from. The best options are the ones that free the user to focus on the customer.

 

Transparency and Sustainability: Must Haves for Success in 2017
12. It’s no longer enough just to sell quality products at good prices. The Internet has created a hunger for information. Shoppers want to know what goes into a product. They’re driven by both ethics and a commitment to sustainability. This trend will continue into 2017 and beyond. (Think Millennials).

If you’ve enjoyed these highlights, read the complete Vend report at:

https://www.vendhq.com/university/retail-trends-and-predictions-2017 and watch these predictions become reality.

 

 

 

 

Back-to-School Retail Season Looks Like Something to Celebrate

Fastest Rate of Growth in Four Years Was Driven by Electronics and Discounters

Early numbers are in for the 2016 BTS shopping season and retailers have something to cheer about. Though August retail numbers slipped a bit (down 0.3 percent), BTS sales were strong. Retail trend watchers and managers of retail real estate alike can’t help but be cheered by the activity during this second biggest shopping period of the year.

Will BTS Sales Meet the NRF’s 2016 Projection of $75.8 Billion?
Though not all the numbers are in yet, a recent report from Reuters says that 2016 BTS spending grew at its fastest rate in four years. According to statistics from First Data, sales rose 2 percent in July vs. 1 percent in 2015 and 2014 and just .2 percent in 2013. The NRF’s $75.8 billion projection for the BTS 2016 may be realized.

Good Weather and Optimistic Outlook Brought in the Shoppers
Better weather than in recent BTS seasons brought a wave of shoppers into stores. Many of them were searching for bargains – especially parents of young children. These are the thrifty Millennials, who came of age in lean times. “Income rises faster than frugality changes,” one retail analyst suggested.

Electronics Were the Hottest Items on the 2016 Shopping List
As expected, the big-sellers could be found in the electronics category. Electronics and appliance sales have been climbing in 2016 – their sharpest ascent in four years, according to First Data. BTS shoppers went for tablets and USB drives, especially if those items were bundled with special offers. Best Buy’s aggressive offers and coupons delivered strong sales. Items geared for dorm life were among the big winners.

Gap Recovers and Fast Fashion Outposts Score Big
Gap gained traction during the BTS season, leading to thoughts that its troubles may be behind them. Low-priced, fast fashion stores like Old Navy, T.J.Maxx and Marshalls delivered strong numbers, too. Chief Industry Analyst-Retail at NPD Group, Marshal Cohen credited the numbers at these stores to youngsters who will accept shopping at lower-priced retailers because they can get “more stuff.”

Whatever the reason for surging sales, retailers are closing out a banner season – the best in a long time. Now, all eyes are on the winter holiday ahead.

Levin Mid-Year Survey Yields Strongest YTD Sales Report in Poll’s History

Influential Retail Real Estate Trends Include Technology and E-Commerce
The results of our mid-year Retail Sentiment Survey are in and the news is good, with our tenants reporting strong year-to-date performance. They’re optimistic about the months ahead and are continuing to leverage technology to stay competitive in the e-commerce-influenced retail landscape.

Retail Real Estate Tenants Cite Numerous Causes for Optimism
Our latest poll of store managers in our 95-property, 13 million-square-foot shopping center portfolio yielded the strongest percentage (65.8 percent) of participants in the survey’s five-year history reporting mid-year sales at the same or a higher volume year over year. This represents a jump from 51.9 percent reporting same-or-higher sales at mid-year 2015 and 42.9 percent at mid-year 2014. Similarly, 61.3 percent of participants reported the same or a higher volume of shopper traffic to date in 2016 compared to 2015.

“Retail is experiencing solid momentum following the stock market volatility and bankruptcy announcements that kicked off the year,” said our president Matthew K. Harding. “The latest retail sales data from the U.S. Commerce Department, which shows a 2.4 percent year-over-year increase for March to May, reinforces what our tenants are saying. At this year’s International Council of Shopping Centers’ well-attended RECon in Las Vegas, expansion was an overarching theme among national retailers – another confirmation of a positive trajectory.”

So, it’s no surprise that a full 67.0 percent of our survey participants expect sales to continue at the same pace or improve through the remainder of 2016.

The Digital Revolution is Here to Stay
Like most savvy retailers, tenants at our leased and managed properties are employing digital technology – such as online ads, mobile apps, social media, email and texting – to attract customers to their stores. And our survey found that technology’s importance is growing. Of respondents active in tech-centered marketing, 42.4 percent have upped its usage year over year; while 52.7 percent said their usage levels had remained at the same level.

Retail Real Estate Trends: Digital is Reaching Customers Everywhere
When it comes to engaging customers in-store, mobile device apps (such as those for coupons, discounts, loyalty points and/or rapid payment) are the most popular tools – employed by 69.9 percent of respondents active in tech-centered marketing. Levin tenants appear to be on the right track; a recent ICSC customer engagement survey found that two thirds of consumers in the U.S. use their mobile devices while shopping in bricks-and-mortar stores. Other popular tools among survey participants include free in-store Wi-Fi (49.3 percent), post-sale online surveys (41.9 percent) and electronic receipts (28.7 percent).

Levin tenants are going with tech to reach customers outside their stores. “For the second year, social media and email ranked as most popular among survey respondents active in tech-centered marketing, used by 79.4 and 78.1 percent, respectively,” said Melissa Sievwright, vice president of marketing. “The power of these tools is clear, and social should be on everyone’s radar. In fact, a Deloitte study found that ‘shoppers are 29 percent more likely to make a purchase the same day when they use social media to help shop.’ ”

Facebook Leads the Social Media Marketing Pack
Among Levin survey participants with social media in their marketing mix, Facebook dominates, with 91.3 percent of respondents using it. Other popular platforms include Twitter (36.9 percent), Instagram (34.2 percent) and Google+ (32.2 percent).

Business Models are Evolving as Tech Expands
As bricks-and-mortar stores seek success online, many retailers are finding new ways to serve and engage customers. Our retail real estate tenants are no exception. In our mid-year 2016 poll, 38.2 percent of participants indicated they have adapted their business model in response to e-commerce growth.

Those respondents are adding in-store services and incentives (62.7 percent), offering in-store pickup and returns options for online purchases (57.6 percent); and/or increasing collaboration with their online counterparts (44.1 percent). Some are altering store inventory (35.6 percent); introducing “experience” draws (30.5 percent); and/or changing their store prototypes (13.6 percent).

“We expect the experiential retail trend, especially, to gain momentum,” Sievwright said. “The re-invention of this industry is well underway, driven both by tech advances and new shopper preferences. Millennials and Baby Boomers alike are opting to invest in experiences over things. Smart companies are melding lifestyle with shopping and giving consumers a reason to step into the store.”

Re-inventing Retail: It’s Not Just for the Big Guys

Re-inventing Retail: It’s Not Just for the Big Guys
Smaller Stores are Joining the Latest Retail Real Estate Trend
By Melissa Sievwright – VP, Marketing

In a previous post we shared some of the latest developments in the re-invention of retail – a chapter of our industry’s history that is being written right now. But in case you thought only businesses with mega budgets, like Reebok and Target, could be re-inventors, think again. Independents and small chains are that ready to get creative can transform retail, too. Many of the tenants in the shopping centers managed by Levin are starting to explore the possibilities. Here’s a quick look at some of the winning tactics in this growing retail real estate trend.

Going Hyperlocal Drives Shopper Traffic and Customer Loyalty
The connection between small businesses and their communities is a powerful one, and something that cannot be duplicated online. People are interested in what’s going on locally and prize locally sourced products. Retailers who want to stand out are tapping into this interest and partnering with their closest “neighbors” to bring shoppers into their stores for events and special promotions.

The Seven Most Popular Recipes for Small Store Re-invention
Keeping the hyperlocal connection in mind, re-inventors with small budgets are turning their stores into destinations. The most popular templates are proving to be:

1. Samplings, with food and beverages from local sources.
2. Art shows, with displays by local artists and crafts people.
3. After-hours shopping, with special openings for VIP customers.
4. Product demonstrations.
5. Holiday tie-ins (not just in December), with a special day in every month.
6. Classes, featuring everything from crafts to accessorizing.
7. Charity, with events that benefit organizations (the more local the better).

Successful Re-inventors Look Beyond Their Core Business
Whether a retailer is large or small, they must provide a compelling and relevant customer experience (“shopper-tainment”) if they want to re-invent. That means thinking of themselves as more than a supplier of goods or services. The big players provide great examples. Staples is a source of business support, not just a place to buy supplies. Reebok is not just about gym clothes, it is about a lifestyle. Following these models, a wine store becomes a source for entertainment ideas. A hair salon becomes a place for relaxation and “me time.” The wine store offers samplings from local caterers on Friday evenings. The nail salon has a free mini-massage day. This is re-invention at its best.

Social Media Powers Small Retail Re-invention
Not surprisingly, social platforms are proving to be the retail re-inventor’s best friend. They are being used to announce in-store experiences and for post-event coverage. Instagram and Pinterest, since they are so visual, are popular choices. Live broadcasts from events on Facebook’s Livestream and Twitter’s Periscope are trending as well.

These are exciting times for the retail industry. The big players are breaking the boundaries. But there also is a lot of creative action with a hyperlocal flavor at the grassroots level.

For more about re-inventing retail and smaller businesses, check out:
http://www.snapretail.com/blog/be-the-host-with-the-most-and-stay-under-budget/

http://www.retaildoc.com/blog/attracting-customers-to-experience-the-store-is-only-half-of-retail-success

http://www.nynow.com/industry-insights/how-to-create-amazing-in-store-events

Levin Retail Sentiment Survey Reflects Positive Outlook on 2016

Lower Gas Prices, Job Growth, and the Housing Market Will Bolster Sales this Year

Store managers in our 95-property, 13 million-square-foot portfolio told us they feel good about the year ahead during our annual January Retail Sentiment Survey. This is particularly good news considering that the poll was conducted at the outset of the current stock market volatility.

In fact, an impressive 68.1 percent of the survey respondents said they are optimistic about 2016. “We really are at a transitional time for retail, with factors like positive job growth, low gas pricing and the housing market uptick working in the industry’s favor,” noted Levin President Matthew K. Harding.

Mixed with the good news was some uncertainty about the specifics of 2016’s performance, with 20.5 percent of participants undecided about what exactly to expect. “The unseasonably warm fall and early winter, and what has become a longer –and therefore more diluted – holiday shopping season impacted sales for some retailers,” Harding said. “As such, it makes sense that our tenants are expressing some remaining uncertainty.”

Our survey mirrors leading industry sources, who are also predicting a respectable 2016 performance. Kiplinger anticipates retail will grow approximately 4 percent. Trading Economics expects 3.6 percent growth.

2015 Sales Showed Modest Upward Momentum Nationally

The U.S. Department of Commerce announced in January that 2015 retail sales were up only 2.1 from 2014 (for context, 2014 sales were up 3.9 percent over 2013). And the National Retail Federation reported moderate 2015 holiday season sales growth of 3.0 percent, down from its forecasted growth of 3.7 percent. Our survey, as well, showed modest momentum in both year-over-year and holiday sales.

Nearly 53.0 percent of survey respondents reported 2015 sales at the same level or higher than 2014. This figure is up from 51.7 percent and 49.4 percent reporting same/higher sales in our January 2015 and 2014 polls, respectively.

The majority of our respondents also reported a generally positive 2015 holiday shopping season, with 58.0 percent reporting sales at the same level or higher than 2014. And 57.0 percent reported that shopper traffic at the same or higher level than in the 2014 holiday season. While these figures are slightly lower than last year’s poll (63.6 percent reported same/higher sales; 60.0 percent reported same/higher traffic), they still outpace the prior year (50.6 percent reported same/higher sales; 48.2 reported same/higher traffic).

A Retail Real Estate Trend: Online and Bricks-and-Mortar Converging

Our survey and other industry reports, like RetailNext’s Retail Performance Pulse, reflected the strength of bricks-and-mortar retail during the holidays. In fact, the International Council of Shopping Centers’ Holiday Consumer Purchasing Trends Study revealed that 91 percent of consumers shopped in physical stores during the 2015 season. ICSC also reported that 32 percent of shoppers made purchases online and picked them up in physical stores; 76 percent bought additional items in the same or an adjacent store.

“We are witnessing a growing synergy between in-store and online purchasing, and its benefits for bricks-and-mortar,” Harding pointed out. “Increasing demand for this type of technology-driven, omni-channel retailing will play a big role in 2016. Bricks-and-mortar and online are converging. And it appears our tenants are gearing up accordingly.”

Looking Forward: More Than a Retail Trend, Tech is Driving Results

More than half (50.9 percent) of our survey respondents plan to add or enhance their tech-based marketing efforts in 2016 with mobile apps, social media, email and text messaging.

Approximately half indicated their company has changed its business model in response to the growth of e-commerce. The most popular adaptations include enhanced in-store services and incentives, added in-store pickup and returns option for online purchases, and generally increased collaboration between online and bricks-and-mortar. Among the retailers that have revised their business models, 40.6 percent reported a positive impact on sales.

Crystal Ball Time: What will 2016 Hold for Retail? New Stores and Right-Sizing

What’s ahead? “It remains to be seen whether the recent stock market shake-up will have a long-term impact,” Harding concluded. “We all hope to see a fairly rapid correction. Should that take place, the retail industry is likely to maintain growth momentum well into 2016.”

In some cases, this means new stores – good news for retail real estate companies like ours. More than one quarter (28.4 percent) of the store managers in our survey indicated their company planned additional locations this year. “We anticipate that smaller footprints will be the norm as retailers continue to right-size and make shifts to incorporate e-commerce into their operations,” Harding noted.

We also asked retailers if they observed shifts in the hiring climate as the unemployment rate continues falling. Their feedback indicates about 44.0 percent are noticing changes, most prominently in the areas of applications by fewer qualified job candidates and increased demand for higher starting salaries.

“U.S. unemployment inched down to 5.0 percent last month, and if this trend continues it will likely have a growing impact on retail hiring,” Harding pointed out. “This is an area we will be focusing on more closely in upcoming surveys.”

Levin’s next Retail Sentiment Survey will be conducted in June, reporting mid-year progress and exploring technology issues.