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News Release

MAPIC, Cannes and London

Winning Strategies in a Changing Retail Landscape

Jones Lang LaSalle MAPIC Panel discussion - Retailing over the Next Decade

MAPIC, Cannes and London, 18th November 2010 - Jones Lang LaSalle hosted a Retail 2020 panel discussion at MAPIC today, looking at the issues affecting retail over the next decade and how retailers need to respond to consumer change. The key message highlighted was that the rate of change is set to outpace the previous decade and that the retailer response needs to be smarter and faster than ever before. It will be crucial to embrace new technologies to gain access to consumers’ personal data but also to make shopping more convenient, as well as going beyond transactional retail and offering consumers superior services and experiences.
Jones Lang LaSalle presenters Guy Grainger, Head of UK Retail and Richard Bloxam, Head of EMEA Capital Markets team, were joined by a panel of industry experts including Scott Abbey (Vice President, Footlocker Europe), Richard Collyer (Senior Director, Abercrombie and Fitch), Josip Kardun (Deputy Managing Director Development, ECE), John van Haaren (CEO, Corio Nederland) and Marcus Wild (Chairman, ICSC European Advisory Board and CEO, SES Spar European Shopping Centres).
As shopping becomes more convenient through smartphones and simpler payment systems, retail is becoming increasingly transparent putting more power into consumers’ hands; the prospect of cashier-less stores, more showroom formats and improvements to logistics are moving ever closer.
The panel debated the speed at which technological advances will be rolled out, a critical factor in being able to capture the growing number of digital natives as they emerge as the key consumer group over the next decade. In a reaction to understanding this growing consumer group, Corio spoke about how they are providing iPhones to all staff members to ensure every level of their business is engaged with the virtual world.
Guy Grainger said: “The internet and social media is opening a new line of communication between retailer, shopping centre owner and consumer. It needs to be a two way conversation – the successful will convince consumers to let them into their lives but the big winners will be the ones that shout the loudest.”
Retailers on the panel highlighted how brands are constantly engaging with their customers via social media. From a landlord perspective it was evident that they appreciate the need to engage at a similar level, which will require a more joined up approach between retail venues, retailers and customers.
Turning to the growing difference between major regional centres compared to neighbourhood facilities the panel acknowledged the ever increasing polarisation between destination and easy shopping.
Richard Bloxam concluded that whilst landlords can use social media as a tool to drive footfall the most important step will be to create unique and special shopping environments: “The winners in the future will be those who work with retailers to fully tailor a shopping centre to their wider customer base or local community to offer either superior shopping experiences or convenience.”
Highlights from the presentation included:
o The Internet and associated technologies will continue to liberate consumer spending power with mobile internet traffic set to multiply 40 times over the next five years.
o This trend will sit alongside a decline in the volume of consumers and their spending power, as baby boomers retire and the number of young adults falls significantly.
o The act of shopping and the pace of technological change will lead to consumer demands for improvements to convenience; logistical advances will need to enhance the shopping experience but also make it easier.
o Fulfilment of online purchases will need to be extraordinary going forward and home delivery will need to become cheaper and more rapid.
o Retailers will have to adjust how they use their physical space, incorporating more showroom formats and establishing shops integrated into distribution networks. Consumers will respond well to changes that make their life easier and these initiatives will quickly become expected.
o Digital natives who are used to being connected to social networking sites such as Facebook, are willing to let retailers and shopping centre owners into their lives; the astute retailers are telling their customers personal shopping trends that they didn’t realise about themselves and helping them make cost saving and life enhancing decisions.
o Landlords however have remained relatively quiet in the conversation. The growing importance of the Internet and social media will not only allow but also require them to have a voice.