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
Sponsored | | Dec 3, 2014
Modular Space Showcase: Bringing work-life balance to energy workers in the Bakken region
To meet the demands of the booming energy business, Williston needs to provide homes, recreation centers, restaurants, hotels, and other support facilities for the tidal wave of energy workers relocating to the Bakken Shale area. SPONSORED CONTENT
| Dec 3, 2014
U.S., Canada, and Mexico finalize agreement to recognize architect credentials
The agreement represents over a decade of negotiations, bringing cross-border recognition of professional credentials from concept to reality in the spirit of the North American Free Trade Agreement.
| Dec 3, 2014
35 cities added to Rockefeller Foundation's 100 Resilient Cities Challenge
Chicago, Dallas, and Pittsburgh are among the U.S. cities to join the 100 Resilient Cities Challenge, pioneered by The Rockefeller Foundation.
| Dec 2, 2014
First existing multifamily buildings to earn Energy Star certification unveiled
River City in Chicago is one of 17 existing multifamily properties to earn Energy Star certification, which became available to this sector on Sept. 16 via a scoring system for multifamily properties that Energy Star and Fannie Mae had been developing for three years.
| Dec 2, 2014
Nashville planning retail district made from 21 shipping containers
OneC1TY, a healthcare- and technology-focused community under construction on 18.7 acres near Nashville, Tenn., will include a mini retail district made from 21 shipping containers, the first time in this market containers have been repurposed for such use.
| Dec 2, 2014
Main attractions: New list tallies up the Top 10 museums completed this year
The list includes both additions to existing structures and entirely new buildings, from Frank Gehry's Foundation Louis Vuitton in Paris to Shigeru Ban's Aspen (Colo.) Art Museum.
| Dec 2, 2014
Nonresidential construction spending rebounds in October
This month's increase in nonresidential construction spending is far more consistent with the anecdotal information floating around the industry, says ABC's Chief Economist Anirban Basu.
| Dec 2, 2014
Hoffmann Architects announces promotions
The architecture and engineering firm specializing in the rehabilitation of building exteriors announces the promotion of members of its Connecticut staff.
| Dec 2, 2014
SPARK designs urban farming housing for Singapore’s elderly population
The proposal blends affordable retirement housing with urban farming by integrating vertical aquaponic farming and rooftop soil planting into multi-unit housing for seniors.
| Dec 2, 2014
Bjarke Ingels unveils cave-like plan for public square in Battersea Power Station
A Malaysian development consortium is guiding the project, which is meant to mimic the caves of Gunung Mulu National Park in Sarawak, East Malaysia.
