While it seems that technology is transforming every aspect of life, how and where we shop is still fundamentally about convenience. Case in point — I am writing this blog right after ordering a new iPhone case, my son’s Halloween costume, and coffee filters all with one click on Amazon!

As the retail industry convened last week at the International Council of Shopping Centers (ICSC) Western Division conference, this “era of change” was definitely put into perspective. The thoughtful remarks of ICSC Chairman and Blackstone Group Global Retail Real Estate Advisor Robert (Bob) Welanetz articulately summarized the state of retail today. Here are the highlights.

  • A changing demographic landscape. Increased middle class growth in China, India, and Africa has led to a shifting balance of real estate investment increasingly from the West to the East as Asia continues to grow more steadily than the United States and Europe.
  • While customers look the same today, they don’t act the same. Psychographics are more important than pure demographics in determining the right end-user experience.
  • RELEVANCE. In order to draw people off their devices and into an actual store, retailers need to create a relevant user experience, not just a predictable store format. (Think about it … Apple may not have a single store layout/format, but you never question the brand that’s being sold.)
  • Innovate what? For retailers, innovating their shopping environment is just as important as innovating their products. Those who are good at this are actually creating demand in a whole new way.
  • Food is fun. Reinforcing the fact that experience is the major driver for shopping now, food is now the most important underpinning of any tenant mix — nearly 50 percent in China!

Indeed, shopping is no longer about “stuff.” It’s about activity and entertainment. We see this trend playing out in Fremont in new and exciting ways. Take the Tap Room in Whole Foods or Vestar’s plans for additional outdoor lounge spaces at Pacific Commons. Savvy retailers get it and are finding ways to evolve their offerings to include more lifestyle components. Good news for my husband when I go off to try on shoes!