Phillips Edison & Company, a fully integrated real estate firm with a national platform of grocery-anchored shopping centers, released its industry insights on trending themes for retail shopping centers this week at ICSC’s RECon event in Las Vegas.
According to a press release, shopping centers are becoming a social arena where shoppers can eat, drink, socialize and shop.
“There’s a good chance that the shopping center as we know it will look completely different ten years from now,” said Michael Conway, Vice President of National Accounts and Retention for Phillips Edison. “We all have to continue to adapt; when you have an innovative mind-set new ideas come to light. It’s a pivotal time for the industry and we feel lucky to be a part of its evolution.”
The findings identified a number of retail concepts that are breaking out this year, including the emergence of online retailers, such as Bonobos, Rent the Runway, BaubleBar, and even Google and Amazon, opening brick and mortar stores. And group fitness will continue to grow, with studios like CycleBar, Soul Cycle, Core Power Yoga, Orange Theory Fitness, Pure Barre and Club Pilates continuing to infiltrate shopping centers as an experiential retailer.
Of course, food also plays a vital role in the consumer experience. Research shows that by 2020, it is expected that there will be 200 food halls in the U.S., which is more than double the current number. In fact, Eataly, the leading food hall developer, has 35 locations and plans for several additional food halls in the coming years.
In addition, quick service restaurant options are getting healthier and trendier with salad concepts like Grabbagreen, Chopt and organic/fresh ingredients options like Core Life Eatery, sweetgreen, BibibBob, Taziki’s and Newks. And grocerants and restaurants within grocery stores are also becoming more popular, while grocery delivery programs, “click and pick” options and prepared meals show how traditional grocers like Kroger and Publix have adapted and responded to consumer needs as they compete against concepts like Blue Apron, Plated and Hello Fresh.
“The retail industry at large continues to step-up their game,” said Conway. “Ecommerce, ease of delivery have encouraged brick and mortar retailers to innovate and improve their in-store experience.”