Ongoing evolution in the retail industry—including near-global access to the Internet and speedy adoption rates of smartphones—is forcing retailers to create a brick-and-mortar shopping experience that rivals the convenience and immediacy of the Internet. As a result, hundreds of retailers in thousands of locations are committing capital to renovating stores for an enhanced overall customer experience.
“There is no disputing that the Internet is having a significant impact on consumer buying trends and retailer strategies,” said Steve Jones, Managing Director, JLL. “But almost 95 percent of sales continue to take place in stores, which means that as technology changes to improve customer experiences, the brick and mortar stores also must change.”
Omni-channel shopping, technology, and Big Data are shaping how retailers approach the customer experience and their consequent renovation programs. Retailers should consider these three key questions when defining the type and magnitude of renovations to enhance their customers’ experiences:
1. Are we offering an omni-channel experience?
Retailers striving to build a true omni-channel experience are merging at-home, in-store and mobile commerce into one seamless shopping experience. Customers want continuity, so the look and feel of every channel, from mobile to desktop to in-store, should be the same.
For example, AMC Theatres recently added an expanded food and beverage menu to concession stands and replaced conventional movie chairs with wide, comfortable recliners. In addition, AMC began offering guests the opportunity to buy tickets online—and reserve actual seats at the theatre—before arriving. The omni-channel experience of buying tickets online translates to a brick-and-mortar customer experience unrivalled in the entertainment industry. In fact, AMC sells more tickets with fewer seats – to sold out audiences.
2. Are we leveraging the right technology?
To keep people in their stores, smart retailers are making their locations interactive and engaging with the right technology. Tablets and smartphones can be used to promote convenience by taking customer payments rather than making them wait in line, demonstrate product features, offer more item options and encourage social sharing. In addition to tablets, the use of large displays purposefully engross customers, making them forget they’re inside a store.
“Retailers are fighting to gain and keep consumer attention, but interactive experiences rooted in technology can help combat disengagement,” said Steve Yenser, National Retail Brokerage Lead, JLL. “Technology will be crucial to the future role of the store, as today's consumers need a reason to come into a physical retail place, beyond merely making a transaction, because a transaction can take place anywhere and anytime.”
3. Are we collecting actionable data to help personalize the customer experience?
An Infogroup Targeting Solutions study found that 54 percent of marketers have already invested in data solutions to date, and nine out of 10 plan to do so in 2014. Smart retailers know that truly personalized experiences are only possible when customer information about behavior, history and whereabouts is gathered. Collecting this actionable data through customer loyalty programs, point of sale data and online shopping behavior ultimately enables retailers to implement dynamic browsing, customized displays, personalized recommendations and shopper-specific discounts.
JLL and Food Lion collected data that revealed that the grocer’s customers were increasingly focused on produce. Based on that finding, Food Lion wasted no time renovating its stores to better position its produce offerings and, in the process, enhancing the overall customer experience.
Jones notes that in addition to the renovation work completed at AMC and Food Lion, smart retailers can enhance the customer experience and ultimately maximize return on investment of store renovations with modified layouts, in-store kiosks, virtual walls, virtual dressing rooms, augmented reality and new product offerings.
“Customer experience is individual to each retailer and the clients they target,” said Jones. “It’s crucial for retailers to ask the right questions and understand the role big data, technology and the omni-channel experience play in their overarching strategy so the appropriate renovations programs can be developed.”
About JLL
JLL’s Retail Group serves as the industry’s leader in retail real estate services. The firm’s more than 850 dedicated retail experts in the Americas partner with investors and occupiers around the globe to support and shape investment and site selection strategies. Its retail specialists provide independent and expert advice to clients, backed by industry-leading research that delivers maximum value throughout the entire lifecycle of an asset or lease. The firm has more than 80 retail brokerage experts spanning 20 major markets, representing more than 100 retail clients. As the largest third party retail property manager in the United States, JLL’s retail portfolio has 305 centers, totaling 65.7 million square feet under management in regional malls, lifestyle centers, grocery-anchored centers, power centers, central business districts, transportation facilities and mixed-use projects.
For more news, videos and research from JLL’s Retail Group, please visit: www.jllretail.com
Related Stories
Architects | Mar 11, 2016
AIA survey finds many women and minority architects still feeling underrepresented and unfulfilled
Dissatisfaction with “work-life balance” and compensation are cited as reasons why companies’ diversity strategies may be faltering.
University Buildings | Mar 11, 2016
How architects can help community colleges promote community on campus
Even in the face of funding challenges and historic precedent, there are emerging examples of how partnership between two-year academic institutions and designers can further elevate community on campus. CannonDesign's Carisima Koenig has a few key examples.
Architects | Mar 10, 2016
Value engineering: How to manage the process and limit the risk of VE
AEC consultant Steve Whitehorn shares several ways in which architects can be more effective managers of value-engineered change.
Architects | Mar 9, 2016
Two Houston firms merge to form Method Architecture
In mid-2016, Architects-Plus and Three Square Design Group will join to make a studio that will design industrial centers, corporate interiors, breweries, and more.
Hotel Facilities | Mar 7, 2016
Exclusive villas and spa in China will be built at the center of a lake
The only connection between the complex and the mainland will be a narrow pedestrian bridge.
Office Buildings | Mar 2, 2016
HDR redesigns Twin Cities' studio to have coffee shop vibe
With open spaces, huddle rooms, and a design lab, the firm's new digs are drastically different than the old studio, which felt like working in a law office. Design Principal Mike Rodriguez highlights HDR's renovation plan.
Architects | Feb 25, 2016
12 architects selected for 2016 AIA Young Architects Award
Winners include Amy Kalar and Karen Lu, both with HGA, BNIM's Carey Nagle, and MSR Design's Bob Ganser.
Architects | Feb 24, 2016
Is the booming freelance economy a threat to AEC firms?
By shifting the work (and revenue) to freelancers, “platform capitalism” startups have taken considerable market share from traditional businesses.
Industry Research | Feb 22, 2016
8 of the most interesting trends from Gensler’s Design Forecast 2016
Technology is running wild in Gensler’s 2016 forecast, as things like virtual reality, "smart" buildings and products, and fully connected online and offline worlds are making their presence felt throughout many of the future's top trends.
Market Data | Feb 17, 2016
AIA reports slight contraction in Architecture Billings Index
Multifamily residential sector improving after sluggish 2015.