The changing face of traditional retail space runs the gamut from how stores attract customers to what actually occupies the physical space, and it presents challenges that reach to facilities management and the supply chain.
The annual review from the Professional Retail Store Maintenance Association (PRSM) identifies five major trends driving the facilities management industry. They include the growth of mixed-use retail, the plethora of restaurants and medical services in retail spaces, the impact of blockchain technology and batteries in energy management.
“The retail industry is evolving rapidly and it is important retail facility executives understand the trends driving this evolution,” Bill Yanek, PRSM CEO, said. “These trends provide great opportunities for today’s retail facilities management professionals to demonstrate their expertise and help their companies and the industry exceed customer expectations.”
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Looking at the advent of mixed-use and experiential retailing, the report said physical stores “must provide experiences to attract shoppers and shopping centers must become the center of the community.” The report cited the Adidas NYC store that offers fitness consultations from EXOS trainers, healthy juices and snacks co-created with Brooklyn-based Grass Roots Juicery, a concierge desk, same-day hotel service and personalized shopping experiences such as the Run Genie gait analysis tool.
Along the same trend, “the rise of restaurant retail” has merchants turning to food to bring traffic into stores and malls that has been lost to the e-commerce phenomenon. Often, they are creating cross-promotional partnerships with culinary establishments to boost business in both sectors. The report said, “Restaurants and retail can be a match made in heaven by attracting new customers who stay longer and spend more. This trend is predicted to not just continue, but to permeate most retail locations, including those in mixed-use developments.”
What the report calls “New Doc-in-the-Big-Box” finds doctor’s offices, medical centers, pharmacies and other healthcare businesses opening in shopping centers and in stores to offer customers extra convenience and a one-stop-shop approach. PRSM noted that 89 percent of enclosed malls now offer some type of healthcare service.
As it is in many commercial areas, blockchain technology is becoming a key tool in retail facilities management and “has the power to revolutionize contract management, work order processing and tracking, payment processing and facility transparency,” the report said. For example, blockchain can be used to track the life cycle of a retail facility from the original designs through construction, operation and maintenance.
“As more retailers adopt blockchain technology to enhance product history records and inventory tracking, payment systems and consumer data, it is only a matter of time before it is used in numerous aspects of facilities management,” the review stated.
