Retail Project Management Trends
Melina Cordero and Brad Sanders discuss how retailers are changing how they use their bricks and mortar space.
Retailer real estate matters now more than ever—both where it’s located and how it’s used. In the context of omnichannel retail, the bricks and mortar experience is changing, starting with the design and construction of stores.
Design and Branding Collaboration
With an increased emphasis on branding, retailers are looking to integrate their defined aesthetic into their physical space. This has retailers bringing design into the mix much earlier in the construction process, often hiring a designer to create visioning and to incorporate brand elements prior to construction drawings.
Omnichannel Considerations
As retailers continue to incorporate their store space into their supply chains, changes are made to the in-store experience and footprint. For some, this means housing more inventory, doubling a storefront as a distribution center, allowing customers to buy online and pick up in store, or to return/exchange products nearby. For others, it means housing less inventory, using retail space as a showroom and order centers. The factors that go into making these decisions, include size, store count and supply chain strategy, are different for every retailer, meaning that more than ever, one size doesn’t fit all.
Capex Considerations
Increasingly, retailers are signing shorter leases—whether renewing or rolling out a new program. This inevitably changes the allowance that they—or their landlords—are willing to put into the buildout of a space. This makes the procurement process more important than ever, with retailers and investors looking to get the most out of a dollar on a shorter term lease.
Contributors
CBRE Retail in Your Inbox