This is not a fad; it is essential to survive in a market, which remains competitive and dynamic.
These are some of our thoughts on MAPIC's theme this year, which is "The new retail equations: Growing in a fast-changing world".
Technological integration and AI in retail
As with many sectors, technology and Artificial Intelligence (AI) has the capability of revolutionising how retailers operate and interact with their customers. Technology is being used to enhance customer experiences, streamline operations and boost sales. Smart technology is creating more intuitive and personalised shopping experiences.
But this does not mean that stores are obsolete – they need to embrace the technology. AI-driven analytics can understand consumer behaviours – Amazon Go stores offer cashier-less shopping experiences utilising AI-powered sensors and cameras to track items picked up by customers, reducing wait times but also providing data on shopping habits. This allows for more targeted marketing and inventory management.
Stores are also incorporating virtual reality to create immersive experiences. The latest EE Experience stores target customers who want innovative and exciting retail experiences that give them a reason to visit many times over. EE's Retail Director, Asif Aziz, says: "We've redesigned our stores to ensure EE continues to offer the most personal, customer-focused service on the high street".
Sustainability
Technology is not the only thing on consumer's minds. They are increasingly demanding eco-friendly practices and retailers are having to respond by incorporating sustainable design and operations into their properties.
Green building certifications are becoming more prevalent in retail developments and retailers are adopting renewable energy sources to power their properties. Another concept, which is becoming more and more apparent is waste reduction initiatives with a number of retailers implementing recycling or garment collection programmes – which attracts customers into stores.
Mixed-use schemes in retail
What remains prevalent is attracting more people back into cities and towns following COVID and mixed-use developments help towards that – integrating various functions attracts a diverse group of visitors and boosts the retail sector. Combining retail and recreational (and increasingly experiential) spaces with residential and office concepts create environments that are attractive and accessible.
We see today's communities wanting to be in live-work-play environments – there are some great examples in the UK such as Battersea Power Station (residential apartments, office spaces, shops, restaurants and leisure facilities) and Kings Cross (as with Battersea but with cultural venues and event space too) in London and MediaCity UK in Salford, home to BBC and ITV. Seamless experiences are created.
So, what does this mean? We'll know more for sure after MAPIC, when we'll hear of more examples of how retail property is evolving to meet consumer needs. But there is no doubt that the future of retail property will involve integrating technology, sustainability and mixed-use schemes.
