Retail Revival – Mixing Digital Convenience with the Brick & Mortar Experience

Abstract

Retailers are embracing digitalization, even within their stores, and consumers are looking for both the emotional engagement of physical and the convenience of digital. "Phygital is a compound word used to describe the melding of physical and digital experiences. Phygital defines the intersection between the virtual and real world, shaping marketing strategies and shopping experiences." According to CBRE, there were more store openings than closings in the retail market over the past year - with nearly 100 million square feet of positive net absorption. There has been significant activity around all retail property segments, from strip malls to open-air shopping centers. Another way the pandemic helped usher in a new way of doing business is to compel retailers to get creative with their use of square footage. Whether it's as fundamental as putting a Starbucks in a bookstore or grocery store, or it's a combination of live, work, shop and play, as with Accenture, retailers are able to meet people where they are - and where they want to be. CBRE's third trend, ESG, is important for retailers as many consumers prefer shopping with brands that are in line with their values, particularly those focused on reducing carbon footprints and waste. "There is growing consumer demand in the resale market for products that are in good condition. Retailers can take advantage of this trend by marketing their own secondhand products for sale, promoting a 'circular' economy and reducing waste," says CBRE. "Overall, Forrester estimates that 41% of U.S. consumers prefer to purchase environmentally sustainable goods." In the end, retailers that can optimize what's working with technology, solve for what's not, and get creative with ways to leverage mixed-use options to lead the way.