ICSC held its popular session, Retail Runway at the New York Dealmaking show this week. T
here were 3 major themes for retailers planning new stores and expanding relatively new concepts:
- The Urban Push – Retailers tend to be focusing more on growing urban store presence and this trend often coincides with a significantly smaller footprint and curated, highly-targeted merchandise. An example of this was Target’s new flexible format stores, which start at only 18,000 square feet and feature a product mix that is very specific to the local market. Starbucks is also focusing on urban-centric stores, including a very small footprint store (at 600 s.f.) on Wall Street.
- Health and Fitness – At least 3 retailers centered around wellness, fitness or healthcare, a core demand segment for consumers. Juice Press has a successful model with 29
stores and predicted revenues of $40 million by the end of this year. Retrofitness gym is a franchise concept with plans to open 30 locations this year. PM Pediatrics, a children-focused urgent care provider with vibrant, kid-friendly decor, plans to open 12 new locations by 2018.
- Experiential emphasis – with all the success that Starbucks has seen, it continues to evolve with new platforms and concepts, one such being the Starbucks Reserve Roastery which offers consumers a truly immersive experience while telling the retailer’s unique narrative. These locations will feature high-end finishes and a setting where consumers can really learn about the intricacies of coffee preparation and consumption.
One thing’s for sure, retailers are really focused on providing new and innovative solutions and concepts to consumers as their needs evolve, including more targeted, flexible layouts, highly interactive experiences and an emphasis on well-being.