To some, the idea of jumping into a brick-and-mortar retail space sounds like a daunting challenge. With in-person shopping experiences closing left and right and huge chains declaring bankruptcy, the "little guy" feels like it's a battle that they don't want to fight. And while no one has promised an easy journey, the world of retail is rewarding and something that consumers always desire.
As we keep an eye on what’s happening in the retail shopping world, the following areas have caught our attention.
The retail shopping experience continues to change with many uncertainties. With the ability of customers to make purchases via a variety of channels, they have control over the paths they require. Therefore, businesses need to develop memorable customer experiences that will keep customers coming back.
Construction is one of several aspects of new builds/remodels that have been impacted by delays in supplies and labor shortages. One way to handle the delays that are certain to happen is to be prepared and have the best general contractor that you can find. Knowing that things can, and will, come up will keep you a step ahead for when issues arise.
Generation of Interest
There are dramatic shifts in consumer behavior. Retailers need to work extra hard to meet the ever-evolving customers' requirements to win and remain relevant. Retailers have to reimagine their omnichannel approach to offer a distinctive customer experience to recover and operate in the future. The customers' behaviors have changed, and with or without the pandemic, they insist on getting services with little to no contact.
No Cookie-Cutter Pieces
The cookie-cutter approach is impossible to achieve during this pandemic. Retailers should interact and engage with consumers to understand their concerns, adjust their activities and match their needs. Scaling a business to appeal to the customer helps to stay in business and adapt to new changes.
Keeping e-Commerce Options Available
The expansion of eCommerce enhances the convenience and safety of products reaching customers in their homes. Firms continue to operate amidst the pandemic, and eCommerce transactions boost their revenues effectively. This trend, which includes curbside pickup and touchless payments, offers an excellent opportunity for an excellent customer experience.
What We've Seen at Real Estate Shows
As we’ve started attending Real Estate shows again and are interacting with those in the industry, we’re noticing additional things across the industry that may or may impact small retailers:
Delay of Leases and Permits - With things still struggling to get back to normal, many retailers are seeing a delay in leases and permits from mall management groups and government agencies. That delay can impact openings, putting expected earnings on hold.
High Rents for Malls - Total revenue for the largest mall owner in the US declined from the first outbreak of COVID-19 by around 24%. Malls have since seen a correction in 2021, but are still struggling. While others waive their rents, some have to deal with costly leases and licenses, leading to high rents. In the future, the expectation is higher rents due to the need to resolve the outbreak's deficit.
Reduced Space Sizes To About 1500-3000 Sq. Ft. - During the history of retail, having a larger store that fulfilled many needs was standard. That has changed, especially in a mall setting, and retailers are looking for smaller spaces for their stores. Even bigger retailers are downsizing to boost their revenue, reduce revenue, and help with labor costs.
Randal Retail Group works with retail or restaurant businesses to create customized fixtures, signage, and graphics. If your retail business is ready to stand out from the rest, we're ready to help.