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 | Sep 24, 2015
Supertall buildings vie for dominance along Chicago’s skyline
The latest proposals pit designs by Rafael Viñoly, Jeanne Gang, and Helmut Jahn.
Architects | Sep 24, 2015
From Gehry to the High Line: What makes a project a game-changer?
Each year, there are a handful of projects that significantly advance the AEC industry or a particular building type. Send us your game-changing projects for BD+C’s January 2016 special report.
Cultural Facilities | Sep 24, 2015
Bakpak Architects' 'pottery courtyard' concept in Poland incorporates local heritage
The multifunctional building proposed for Rzeszow, Poland, looks like it was handcrafted on a potter’s wheel.
Modular Building | Sep 23, 2015
SOM and DOE unveil 3D-printed, off-the-grid building
The Additive Manufacturing Integrated Energy (AMIE) building features a high-performance shell with a photovoltaic roof and built-in natural gas generator.
Airports | Sep 23, 2015
JFK Airport's dormant TWA terminal will be reborn as a hotel
After 15 years of disuse, the Googie architecture-inspired TWA Flight Center at New York’s John F. Kennedy International Airport will be transformed into a hotel. Gizmodo reports that the city’s Port Authority chose a renovation proposal from Jet Blue this week.
Architects | Sep 23, 2015
Architecture billings dip in August, but no 'cause for concern' says AIA economist
The American Institute of Architects reported the August ABI score was 49.1, down from a mark of 54.7 in July. This score reflects a slight decrease in design services.
Sports and Recreational Facilities | Sep 21, 2015
Tokyo Olympic Stadium saga ends for Zaha Hadid
After resubmitting a bid, the firm will not design the main venue for the 2020 Olympics after all.
University Buildings | Sep 21, 2015
6 lessons in campus planning
For campus planning, focus typically falls on repairing the bricks and mortar without consideration of program priorities. Gensler's Pamela Delphenich offers helpful tips and advice.
Museums | Sep 21, 2015
Ma Yansong and Jeanne Gang revise Chicago lakefront Lucas Museum
New renderings of the proposed Lucas Museum show a scaled-down building on more green space.
Designers | Sep 21, 2015
Can STEAM power the disruptive change needed in education?
Companies need entrepreneurial and creative workers that possess critical thinking skills that allow them to function in collaborative teams. STEAM (science, technology, engineering, arts, and mathematics) education might be the solution.
