Look Who’s Spending
Discussion from A.R.E.’s recent Industry Summit provides insight into
which retail segments will be investing in retail environments.
At A.R.E.’s Industry Summit in November, Ann Natunewicz of Colliers International shared ata about which stores are
Natunewicz cited continuing bifurcation
between lower- and higher-priced retailers,
noting that targeting middle-class consumers for growth in aspirational purchasing may not be a winning strategy. Watch
these sectors for growth:
• Luxury. Not only are luxury customers back after the recession, but many luxury retailers are working to broaden their
appeal to wider customer bases.
• Dollar stores. Dollar stores have
invested in real estate, committed to
opening hundreds of stores each year, and
are improving their retail environments
through better lighting and displays. They
are also enhancing their value proposition
with more private-label and consumable
• Discounters. Discounters continue to
steal market share from many retailers.
• High-end grocery. These higher-end
retailers continue to draw more “cultural
omnivores,” people with active digital lifestyles, and an increasing number of affluent
and male customers away from traditional
• Quick-serve restaurants. Watch those
that are changing and updating their con-
cepts to be better for delivery and carryout.
New locations may have smaller footprints.
These sectors are facing challenges:
• Mid-range department stores. Expect
more store closing announcements in 2013
as they invest elsewhere in their businesses.
• Mid-range grocers. Squeezed by everyone, traditional grocery stores now account
for only about 50 percent of grocery
While much of retailers’ 2012 CapEx spending was
investment in IT/infrastructure, this represents an
opportunity for brick-and-mortar retail for the future.
As consumers demand the integration of brick-and-mortar, web, and mobile technologies, retailers must
rethink their entire message, their merchandising
strategy, fullfillment, supply chain, and logistics.
Retailers are investing significantly in:
• Real-time product information
• Enhanced in-store (and virtual) fitting rooms
• Cross-merchandising of related and complementary SKUs to drive incremental revenue
• Customer loyalty programs/in-store branding
• Inventory management
• Cross-channel pricing consistency
• Timely, accurate payment processing
• Fulfillment options
• Flexibility of returns/exchanges programs