CSA July/August 2023

July/August 2023

Retail’s Top Women Awards Holiday Tech Prep Small Format Stores

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from the editor’s desk

tech viewpoint: a retail tech column

Contents VOL. 98 JULY/AUGUST NO. 4

COVER STORY

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Mall of America tops the list of Chain Store Age’s annual Top 10 Retail Center Experiences..

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CSA’s Retail’s Top Women Awards: Special section profiling 25 female executives making their mark in technology, store development/ facilities, supply chain and real estate.

CHAINSTOREAGE.COM

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Smaller store formats require special planning and design.

Trending Stores: Swiss athletic brand On makes Brooklyn debut.

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New ASHRAE standard prioritizes indoor air quality with new requirements.

STORE SPACES

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Vendor Q&A: Tom Bevacqua of Abby Solutions Group discusses retail facilities maintenance challenges and solutions for after-hours emergencies.

Babies”R”Us makes U.S. retail comeback with experiential store format.

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Contents VOL. 98 JULY/AUGUST NO. 4

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REAL ESTATE Top 10 Retail Center Experiences: Mall of America...................................24 Tuscan Village......................................26 Fenton.....................................................26 Naperville Crossings..........................28 Crocker Park.........................................28 Scottsdale Fashion Square.............30 Westmoreland Mall...........................30 Pacific City.............................................31 Ala Moana.............................................31 Westfield Topanga.............................31

TECH

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Vendor Q&A: Ricoh North America’s Jim Kirby discusses how retailers maximize employee performance with artificial intelligence and automated systems.

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A look at how retailers can integrate AI into their holiday prep.

CSA (USPS 054-410; ISSN 0193-1199), is published bimonthly by EnsembleIQ, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631, on a controlled basis to qualified retailer titles and architects. Real estate and shopping center owners and developers $75 per year. All other non-qualified in the United States: $80 one year; $155 two year; $14 single issue copy; Canada and Mexico: $105 one year; $185 two year; $16 single issue copy; Foreign: $115 one year; $215 two year; $16 single issue copy. Digital edition subscription: $55 one year digital; $105 two year digital. Periodicals postage paid at Chicago, IL and additional mailing offices. P ­ OSTMASTER: Please send address changes to CSA, Circulation Fulfillment Director, 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631. Subscription changes may also be emailed to contact@chainstoreage.com, or call 1-877-687-7321. Vol. 98, No. 4, July/August 2023. Copyright ©2023 by EnsembleIQ. All rights reserved.

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FROM THE EDITOR’S DESK

12 Emerging Brands To Watch A digital commerce disruptor, an art-inspired streetwear brand and a metaverse platform are among 12 emerging brands disrupting the global marketplace.

That’s according to design consultancy Interbrand’s annual “Breakthrough Brands” study, which named 12 companies it described as being on track to become the next generation of legacy brands.

Here is a short recap of the brands that make the ranking.

•Betterhalf: The world’s fastestgrowing matrimony app, Betterhalf was founded in India in 2019. It allows urban professionals in India to find their perfect partner as opposed to being matched up by their parents.

In addition to matchmaking, the app offers wedding and event planning services.

•BILT: BILT is the first credit card that helps its holders earn points on rent.

It operates as both a loyalty program and co-branded credit card (with Wells Fargo) and enables tenants to earn points through roughly 2 million rental properties.

•Cake: The Swedish company makes street-legal and off-road electric bikes for adults and kids that feature keyless, appenabled controls and colorful designs.

Cake, which has stores across Europe, debuted its first U.S. location in 2022, in Los Angeles, and recently opened in New York City’s Seaport district. Cake stores are multi-purpose, serving as showrooms, test centers, full-service centers and event spaces.

•Eight Sleep: The San Francisco-based mattress brand, offers a luxury, high-tech “sleep pod” that promises to give the user the temperature-regulated, noise-free, blackout sleep of their life.

CHAIN STORE AGE

•Fishwife: Founded in 2020, the LA-based brand sells canned fish— a developing trend — in chic packaging and sources from responsibly managed farms and fisheries.

•KidSuper: The Brooklyn, N.Y.based streetwear brand, is known for its unconventional approach to design and marketing. It recently launched a collaboration with Louis Vuitton. The company is reportedly building a 10,000-sq.-ft. retail space and “creative center” in Brooklyn.

•HiPhi: One of the top-selling premium electric vehicle brands in China, the cars have perks that include voice-activated at home charging, customizable LED messages on the side paneling and sleek, touch-free doors. Parent company Human Horizons plans to launch the brand in Europe later this year.

•Obsess: The virtual reality platform, which is helping to build the shopping metaverse, powers the virtual storefronts of over 200 brands, ranging from Ralph Lauren to Johnson & Johnson, enabling highly interactive customer worlds.

•Neko Health: The Swedish clinic, brainchild of Spotify founders, is looking to lead the future of preventative care. Its AI-powered body scanner promises to evaluate a patient’s cardiovascular and skin health — finding issues invisible to the naked eye — in 15 minutes.

•Open AI: Founded in 2016 in San Francisco, the research group launched ChatGPT in late 2022, which has become a brand in its own right, according to Interbrand.

•Sila: The battery materials company went to market in 2021, has started large-scale production of its proprietary nano-composite silicon anode — a powder that makes lithium-ion batteries more energy-dense.

•Zepeto: The South Korean avatarbased social network has grown into Asia’s largest metaverse platform. Users can explore infinite virtual worlds, many of which are branded.

CHANNELS > COMMERCE > CUSTOMERS

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BRAND MANAGEMENT Vice President & Group Publisher, SPECS Chairman Gary Esposito gesposito@ensembleiq.com

EDITORIAL Editor Marianne Wilson mwilson@ensembleiq.com Technology Editor Dan Berthiaume dberthiaume@ensembleiq.com Real Estate Editor Al Urbanski aurbanski@ensembleiq.com Online Editor Jennifer Mosscrop-Setteducato jmosscrop@ensembleiq.com

ADVERTISING SALES & BUSINESS Midwest & South Sales Manager Michael Morrissey mmorrissey@ensembleiq.com East & West Sales Manager Lise Slaviero Groh lgroh@ensembleiq.com Real Estate Sales Manager Al Urbanski aurbanski@ensembleiq.com

EVENTS/MARKETING Program Director Deena AmatoMcCoy damccoy@ensembleiq.com Event Director Melissa Murphy mmurphy@ensembleiq.com Event Coordinator Rita Ruzalski rruzalski@ensembleiq.com Marketing & Event Administration Coordinator Farida Batuta fbatuta@ensembleiq.com

ART/PRODUCTION Art Director Michael Escobedo mescobedo@ensembleiq.com Production Manager Patricia Wisser pwisser@ensembleiq.com

SUBSCRIPTION SERVICES List Rental mbriganti@anteriad.com Subscription Questions contact@chainstoreage.com

CORPORATE OFFICERS Chief Executive Officer Jennifer Litterick Chief Financial Officer Jane Volland Chief People Officer Ann Jadown Chief Strategy Officer Joe Territo Chief Operating Officer Derek Estey

Marianne Wilson mwilson@chainstoreage.com

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RETAIL’S TOP WOMEN AWARDS Female executives making their mark in the retail industry

By CSA staff

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wenty-five outstanding female executives — women who are helping to transform the retail industry as they work to position their companies for continued success — were honored with Chain Store Age’s 2023 Retail’s Top Women Awards.

The annual program, now in its eighth year, is designed to recognize the crucial role women play in key areas of retail operations as well as their overall contributions to the industry at large. The honorees were recognized in four areas: • Technology; • Store development/facilities; • Real estate; and • Supply chain.

In addition, a special category — Women of the Year — was reserved for C-level executives for their outstanding contributions to their companies in the areas above.

This year’s class of Retail’s Top Women winners are leaders in every sense of the word. Through their achievements, they are not only driving the industry forward but also advancing the presence and influence of women in senior leader and decision-making positions across the industry.

CSA’s Retail’s Top Women winners were celebrated for their achievements in a virtual awards event sponsored by Melissa, T-Mobile and Nest.

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WOMEN OF THE YEAR PRAMA BHATT Chief Digital Officer Ulta Beauty • Managing a team of digital experts across a wide variety of technology areas, Bhatt and her group have transformed the beauty experience at Ulta, deploying technology to create innovative, reimagined and personalized experiences at every touchpoint of the customer journey, both in-store and online.

• Bhatt’s strategic vision and penchant for innovation have fueled e-commerce growth at Ulta, turning the company into an online powerhouse. She has overseen the development of numerous personalization-oriented digital technologies at Ulta, including the Virtual Beauty Advisor, Skin Analysis, GLAMLab Virtual Try-On and real-time recommendations.

• Bhatt joined the company as VP of digital and e-commerce in 2014 and has served as chief digital officer since December 2019. E-commerce has grown to account for more than 20% of Ulta’s total revenues in that time. Specific technology areas she oversees include customer analytics, data science, online and mobile merchandising, customer service, operations, digital product management, user experience, digital optimization, augmented reality and AI. MARIE MCCARTHY Chief Operations Officer L.L. Bean • McCarthy has spent her 30-year professional retail career at L.L. Bean, starting in the HR department. After initially working as an HR generalist, she progressed to manager and director-level roles, becoming the VP of HR in 2011 and chief human relations officer in 2016. From there, McCarthy kept successively adding responsibility for larger operating areas, including facilities, real estate and customer satisfaction, as well as fulfillment, returns, logistics and manufacturing. In January 2021, McCarthy assumed her current role as COO. • Among McCarthy’s proud achievements from her three-decade career at L.L. Bean is the evolution of automation at the company’s fulfillment center in Freeport, Maine. “We have always had automation in our warehouse with things like miles of conveyance, auto-pack capabilities, auto-box-cutting, etc. and our team keeps seeking robotic solutions that create efficiency, but also help reduce the physical demands on our employees,” McCarthy said.

• When asked what advice she would give to other women, pursuing a supply chain career, McCarthy emphasized having faith in yourself as well as connecting with other female mentors in supply chain and across. “Having trust and confidence in expressing your point of view is so important, and I am grateful for the encouragement of other women in the room who have helped to support and reinforce my voice,” she said. “I’ve sought them out as personal guides.”

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CSA’S RETAIL’S TOP WOMEN FIONA TAN CTO Wayfair • After starting her technology career on the enterprise software side, Tan joined Walmart in 2014, where she oversaw the engineering team responsible for the evolution of the company to omnichannel. In 2020, she joined Wayfair as VP of customer and supplier technology, and was named CTO in early 2022, managing a global team responsible for the company’s e-commerce platform, supply chain technology and omnichannel experiences.

• “Wayfair is currently in the midst of a technology transformation, where we are taking our existing legacy infrastructure and applications and modernizing them into cloud native microservices,” said Tan. “This transformation is critical for Wayfair to continue to grow market share and remain the preferred destination for all things home.”

• Tan advises fellow women working, or considering working, in the retail technology field that a career in the industry is a “marathon,” with many advancement opportunities along the way. “Embrace those opportunities and adopt a lifelong learner attitude,” she advised.” Take the time to go deep in honing your craft as a technologist, but also look for opportunities to learn the commercial and operational aspects of the business.”

TECHNOLOGY KATE BAILY VP, e-commerce Journeys (a division of Genesco)

• Among Baily’s recent career achievements: successfully managing the website redesign of Journeys’ U.S. and Canadian e-commerce sites (including the launch of a French-language version of Journeys.ca); early adoption of personalization solutions such as site search, browse and product recommendations; and being early to market with virtual try-on functionality.

ANSHU BHARDWAJ Senior VP, technology strategy and commercialization Walmart Global Tech • In her current role, Bhardwaj leads strategy, operations and commercialization for Walmart Global Tech, the technology arm for Walmart Inc. “I work at the intersection of technology and retail to deliver technology products and services that customers love,” she said. “Our offering enables customers to effectively choose Walmart as their shopping destination of choice.”

• During her 14-year career at Walmart, Bhardwaj has worked in almost all aspects of retail, including technology, e-commerce, market development, manufacturing, merchandising, finance, strategy and mergers & acquisitions. “This wide perspective helps me connect dots in retail from a unique perspective as a customer, retailer and technologist, all at once,” she noted.

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• One career highlight Bhardwaj is particularly proud of is leading the team that launched the Scan & Go mobile shopping app at Walmart’s Sam’s Club warehouse banner in 2016. Another is ideating on and implementing Walmart Commerce Technologies, a start-up within the Walmart ecosystem designed to help other businesses easily run operations using Walmart technology.

SHWETA BHATIA Senior VP, IT Applications & Base Engineering Dollar General

• A 35-plus-year retail veteran who has worked for Fortune 500 and best-in-class companies, Baily manages web operations, product photography, email/SMS marketing, website search and personalization functions for Journeys e-commerce U.S. and Canada businesses. Her responsibilities include customer-facing site optimization strategies and implementation of solutions to accelerate digital growth and support a unified commerce experience.

Bhatia takes immense pride in being part of the Dollar General organization, where approximately 75% of employees at the manager level and above are female. The group she leads supports 19,000 stores, more than 30 distribution centers, and corporate systems at Dollar General.

• “The experience of shopping has enormously transformed the way retail operates, with different technologies.,” said Baily.

“This has opened the door for women that go beyond that of traditional roles with countless opportunities in IT, data analytics, website operations, user and customer experience design, email, social media and more.”

“As a female leader, I deeply understand the significance of serving as a role model,” said Bhatia “Dollar General has established employee resource groups, including the Women’s Professional Network (WPN), which I am a member of and has a mission to cultivate an inspiring, inclusive, and empowering network for women within the organization.”

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CSA’S RETAIL’S TOP WOMEN

• While Bhatia is proud of her team’s accomplishments on a daily basis, she takes particular satisfaction in how her employees have developed a business-led, technology-enabled strategy. “Merely pursuing technology for technology’s sake is not effective,” she said. “Establishing genuine partnerships with the business and collaboratively building the future vision are essential for success.”

ANGIE BROWN Senior VP, Technology The Home Depot • Brown’s career at The Home Depot began in 1998 as an entry-level software developer, writing code for the HR systems team. She has stayed on the home improvement giant’s technology team the entirety of her career, with the opportunity to work with a variety of different business functions and help implement order management solutions, ERP platforms and new hardware.

• Currently, Brown has responsibility for Home Depot’s merchandising, digital platforms, customer, marketing, pro, services, data and reliability functions. “For these areas, I focus on what problems we are trying to solve, how should we solve them, and what our teams need to be successful,” she explained.

• Since she first joined The Home Depot technology team 25 years ago, Brown says opportunities for women have grown significantly, both in retail and technology. “While there’s still work to be done, I’m grateful to work at The Home Depot, which actively supports and promotes diversity,’ she said. “More generally, one of the amazing things about working in retail technology is the reach our products have. We are building solutions our friends, families, and neighbors all use.

MARIA FIDELIBUS VP, IT QuickChek Corp.

• Fidelibus, who says she initially got into technology as a result of her natural math orientation, has served as VP of IT at convenience store retailer QuickChek for almost 20 years, starting her retail IT career as a systems analyst in the grocery vertical.

• One technology area where Fidelibus says QuickChek, a subsidiary of Murphy USA, has been a pioneer is self-checkout.

“We started implementing self-checkout in 2009 and have it full deployed in over 100 stores,” she said. Other technology implementations the VP has spearheaded include solutions to

help customers order food and associates monitor kitchens and provide customer service.

• Fidelibus advises other women beginning retail technology careers to properly focus their priorities. The technology comes second, she said. “You need to be a real student of the business and understand the customers, the employees and the general organizational processes,” Fidelibus explained. “You can then apply and operationalize technical solutions that help accelerate business delivery and satisfy the customers and the employee needs. But you really need to understand the foundation of the business.”

DAWN IEZZI Formerly Senior IT Director, Stores & Services PetSmart • Iezzi started her retail technology career as an engineer at American Eagle Outfitters. She quickly fell in love with store technology and moved into a leadership role involving store and marketing technologies. After nearly 17 years at AEO, she joined PetSmart to lead their store services and marketing technologies. (At press time, Iezzi is taking some time off to spend time with her family and explore future opportunities. ) • During Iezzi’s six-year career at PetSmart, noteworthy projects she oversaw included the launch of a new services reservation system for dog grooming, a new loyalty program and various other store/marketing initiatives. “Launching PetSmart’s Treats loyalty program was a huge undertaking, and we did it very quickly while also building out a new customer data repository for all systems to access to have one view of the customer,” said Iezzi.

• Iezzi advises women entering the retail technology field to pursue what they love. A long time ago, I fell in love with retail technology, and while I didn’t have all the experience needed for my first leadership position, I worked hard and asked a ton of questions,” she said. “Now 20 years later, I consider myself an expert in store tech but I still ask questions and remain curious so I can continue to evolve and learn every day.”

JENA RAND VP, Retail Operations Warby Parker • Rand has been in retail for more than 20 years, spending a majority of her preWarby Parker career at Coach in the retail operations function outside the U.S. “I got the opportunity to spend a large part of my career in different cultures understanding different ways of working and lived CONTINUED ON PAGE 14

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CSA’S RETAIL’S TOP WOMEN

in multiple places for quite a period of time,” she said. “This allowed me to see operations from multiple perspectives before entering the retail operations leadership era of my career.”

• Rand’s career also took her to positions at J.Crew and at Estee Lauder. In her current position at Warby Parker, Rand is in charge of store and vision service operational areas including training and communication, new store openings, policies and processes, retail maintenance (including facility refresh and renovation) and retail and eye care strategy.

• For women currently entering or considering a career in retail technology, Rand advises reaching out to fellow women for mutual support. “The world has shifted and opened a ton of doors for many women to have a voice and have a place at the table in the past 20 years,” she said. “Don’t forget to network, network, network. There are always good learnings to be had and amazing stories to be heard.”

DEBRA SELL Director, e-commerce Dick’s Sporting Goods • Sell is a multifaceted and growth-focused retail executive with over 15 years of experience in retail merchandising and ecommerce business operations. Her background includes creating e-commerce strategies to drive omnichannel experience, increase awareness, generate sales, and secure retention.

• Throughout her career, Sell has demonstrated a proven track record of leading collaboration across teams, managing site operations and content, overseeing marketing initiatives and ensuring scalable growth. She also has always forged and fostered strategic partnerships and professional relationships with internal and external sources.

• “I’m so lucky to work at a company that truly supports women and allowed me to thrive,” Sell said. “I work with very talented team of e-commerce and retail experts who challenge and push me every day to be my very best. I’m very lucky to be given space at Dick’s to innovate and make mistakes, all in the spirit of being better every day.”

NICOLE WEST VP, Digital Strategy & Product Chipotle Mexican Grill • With nearly 20 years of customer-focused experience in the restaurant industry, West has witnessed and contributed to the transformative impact of technology in the

space. This includes overseeing the development of Chipotle’s digital ecosystem during her 16 years at the chain. “My journey has been focused on leveraging technology to connect consumers with the Chipotle brand,” said West. “I am passionate about creating products that enhance guest experiences and drive business growth.”

• In her position as the VP of digital strategy and product at Chipotle, West has a multifaceted role, overseeing areas including the Chipotle e-commerce site and app, rewards program and robotics and automation. This entails leading the user interface/ experience design process and ensuring the seamless execution of Chipotle’s integrated “customer-first” digital flywheel.

• “My primary goal is to ensure that our digital products consistently deliver exceptional experiences for our team members and customers while driving convenience and access to our real food,” explained West. “Also, I am incredibly proud of the growth we’ve achieved with Chipotle Rewards. We recently surpassed 33 million members. Digital sales represent nearly 40% of our business, and Chipotle Rewards is a significant driver of our digital success.

STORE DEVELOPMENT/FACILITIES THERESA FISHER Senior VP, Visual Merchandising & Brand Development CCA Global Partners • A 20-year CCA Global Partners veteran, Fisher heads up the flooring retailer’s branding, store design and visual merchandising. Currently, she is excited about CCA’s ambitious “Retail 2.0” project, which she described as an integrated merchandising system engineered to shorten the customer [purchasing] journey with an inspirational, intuitive and rewarding experience. “It is the single largest consumer facing launch in the flooring industry and it will change the way consumers shop for flooring,” she said.

• CCA’s cooperative, shared ownership business model is what attracted Fisher to the company. “Our Carpet One Floor & Home, Flooring America, and Flooring Canada stores are individually owned and operated by families across North America,” she explained. “I believe strongly that small businesses and family businesses are the lifeblood of local communities and I wanted to play some small role in helping them.”

• When asked what it takes to move more female professionals up the corporate ladder, Fisher’s answer was simple: confidence. “I would tell any woman that we need to pull up a seat and sit at the table,” she said. “We need to be confident in our own voices and we need to support each other – and to offer guidance and support to other women coming up.”

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CSA’S RETAIL’S TOP WOMEN DANNI GALLAGHER VP Planning, Design and Construction CVS Health

LAUREN KRUSE VP, Store Creation/Store Development Sephora

• Leading a team of 117 members, Gallagher is responsible for CVS Health’s capital planning, design and construction teams across all the company’s business units, including CVS pharmacy, Aetna, Caremark and Specialty.

• After starting her retail career as a project manager at Guess? and then spending 12 years at Gap, Kruse joined Sephora in 2017 as senior director, execution/property development. In 2019, she was promoted to VP, overseeing Sephora’s store concept, design, procurement, construction, new store opening and facilities teams, as well as the beauty retailer’s sustainability group.

• Despite leading the execution of over 6,000 projects (including more than 1,000 store resets and refreshes), Gallagher is most proud of the team she has created, which is comprised of many talented and impressive individuals who respond to the toughest challenges, remain flexible with their approach and always exceed expectations for delivery, she explained. “Seeing each of their accomplishments, whether large or small — and knowing that I helped them throughout the process — makes me incredibly proud of what we do.”

• Gallagher urges other female professions in the design and construction industry to be brave enough to step outside of their comfort zone. “Take every opportunity that presents itself, and always be willing to challenge yourself,” she advised. “Don’t step away if it feels uncomfortable, or there are unknowns. It just means that the opportunity is going to provide you with personal growth and enhance a skill that makes you more valuable.”

LAURA GROSS Senior Manager, Facilities American Signature • A skillset in maintenance software led Gross to American Signature in 2015. She now holds the role of senior manager of facilities and is responsible for the company’s repair, maintenance budget and capital expense projects, and work orders for more than 120 stores.

• Among her many responsibilities: transitioning the company from a “break-fix mentality” caused by deferring maintenance to one that prioritizes spending on the top-performing stores in the fleet. “This approach helps the company to look ahead instead of only working in the ‘now,” she noted.

• Gross is grateful for several female mentors who have paved the way for her success at American Signature. “American Signature is incredibly inclusive when it comes to their management teams in the facility spectrum,” she said. “The women in leadership [at American Signature] have helped shape me to become the driving force needed within this industry.”

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• Among her many accomplishments, Kruse championed the consolidation of Sephora’s vast store development teams into a unified group. “When I started my journey at Sephora, the teams I now lead were scattered across different leaders and functions within the company,” she said. “By consolidating all these teams under the umbrella of ‘store development’ we now have a cohesive group with unified leadership. Everyone shares the same goals and focus, and together we have built what I proudly refer to as a ‘center of excellence.’ ” AMY OCHOA VP of Facilities Salon Lofts • Despite being the new kid on the block at Salon Lofts (she joined the company in January), Ochoa is fully immersed in the organization and her role as VP of facilities. She leads a team of 40 facility professionals that, under her leadership, is responsible for providing best-in-class maintenance services to all “Loft” owners, including adopting technology initiatives to support growth.

• Ochoa noted that her biggest achievement is related to the teams that she had managed over the years. “Most of my career has involved transformational change,” she explained.

“Bringing groups of professional individuals together, uniting and aligning them to the mission and goals — and seeing them succeed — has been the greatest reward throughout my career in retail and store development.”

• Ochoa’s successes have been driven by her passion for store development — but she realizes this career is not for everyone. “Store development is not an easy career choice,” she said. “It’s not for the individual who will mind being woken up in the middle of the night with an emergency call,” she explained. “But if you are a servant leader at heart, take your seat at the table and know your value.”

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RITA SIEGEL Director of Real Estate-North American Retail New Balance Athletics

JULIE STARZYNSKI Director, Construction & Design Floor & Décor • Starzynski oversees the construction and design department for Floor & Décor’s North, Southwest and Western regions.

Adept at managing multiple projects simultaneously — and in multiple jurisdictions with differing permitting requirements — she has played a key role in the growth and success of Floor & Decor’s store expansion efforts.

• Reflecting on her career, Starzyznski said she had witnessed “immense changes” that created more opportunities for female construction professionals. “I have seen more and more women entering store development and holding higher level positions,” she added. “The number of women I see on the construction job site has also increased immensely since my first year on the job.

It’s exciting to see those barriers being broken and more women pursuing careers in a formerly male-dominated industry.”

• What does Starzynski believe is the best way for female professionals to cultivate their skill sets? Keep pursuing new opportunities. “Learning and accepting new opportunities in the industry will help to bring more women into this industry and support their move into higher level positions,” she said.

“Support women in the industry as a means of ensuring we can level the playing field for more females in the industry.”

REAL ESTATE SHANNON LETTS Senior VP Real Estate Procurement & Sustainability Big Lots • Letts joined Walmart after graduating from the University of Arkansas and stayed for 23 years—13 of them in real estate development. “Maybe a third of the real estate managers there in the Nineties were women,” she said. “They even promoted women into construction roles—pretty progressive at that time. We have continued that trajectory at Big Lots.”

• Joined Big Lots in 2021 to help lead a major expansion: 58 new projects in 2022 and 18 this year.

• “I feel like real estate is very entrepreneurial,” she said. “It forced me out of my comfort zone and led me to take on big responsibility. I’d advise young women taking this route to raise their hands when opportunity presents itself. Doing that gave me the freedom to try new things.”

• Siegel worked for Brookstone and Eastern Mountain Sports before joining New Balance as the controller for its retail division.

• “In the smaller, specialty retail store environment, we do a lot of collaboration,” Siegel said. “You have to know about store design, visual merchandising, and operations. It’s not just about where you select a space, but is it visually correct? Is it functional for the operations team. Do the numbers work?”

• Siegel advises women interested in retail management to be eager to move into operations or planning or merchandising roles.

“Don’t be afraid to try something new,” she said.

JENNIFER SORRELS Senior Manager, Retail Real Estate T-Mobile • Sorrels manages a team that oversees the 9,000-door portfolio for T-Mobile and Metro and is responsible for all non-corporate real estate ranging from new store target areas to renewals and relocations.

• She was a novice realtor who worked part-time as a barista when her boss at the coffee shop tipped her off on a real estate opening at T-Mobile. “Somehow, I was lucky enough to land one of the hottest jobs in the industry, making the jump from a retail store to corporate. It changed the trajectory of my professional career,” she said.

• “I don’t think we can ever achieve perfect equality, but I believe striving to be better is making space for women and minorities in retail real estate that did not exist just a few years ago,” Sorrels said.

SHANNON YEAKEL Senior Director of Real Estate Development Dick’s Sporting Goods • After graduating from college with a degree in urban planning, Yeakel went to work for the township of Upper St. Clair, Penn. to oversee community developments. One she worked on was for a Simon mall. “I said, ‘This is what I want to do,’” Yeakel recalled.

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CSA’S RETAIL’S TOP WOMEN

• She has been highly involved in the development of the first Dick’s House of Sport locations, whose 100,000-sq.-ft. footprints position the stores as anchors in malls.

• “I’m a go-to person, always the first to raise my hand for a job that’s difficult or tedious,” Yeakel said. “Good relationships are the most important things in real estate, and the only way to learn and create lasting relationships is to raise your hand.”

SUPPLY CHAIN STACEY FUREY Director, Supplier Performance Ace Hardware • After overseeing a variety of supply chain functions at Kraft Foods, Furey joined Ace Hardware in 2016 as a supply chain manager and led the development of its vendor compliance program. In her current position, Furey and her team are responsible for monitoring and improving vendor compliance across all supply chain metrics, including shipping performance, EDI, load quality and warehouse receiving efficiency.

• According to Furey, although the supply chain career path continues to be male dominated, many women have innate skills that will help them succeed. “A female college student with a degree in industrial engineering, statistics, or supply chain has already developed problem solving, communication, and partnership skills by the time she graduates,” said Furey, who also recommends finding women in leadership positions as mentors.

• Recently , Furey and her team worked with a third-party software provider to identify vendor shipment quality violations, automate the notification of the problems to the vendor and recoup a portion of Ace Hardware’s warehousing & labor costs related to those issues. “In just one year, we saw a 30% to 40% reduction in the number of violations we were tracking,” she said.

KIM RAMSEY VP, Inventory Management Family Dollar • Throughout her 34-year career in inventory management, Ramsey has served in a variety of roles including merchandise planning, allocation/replenishment, store

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planning and inventory optimization. Besides her current position as VP of inventory management for Family Dollar, she has held executive supply chain positions at chains including Gap/ Old Navy, Disney Stores, Icing and At Home.

• At Family Dollar, Ramsey leads a team of 60 people responsible for servicing stores and customers by ensuring the retailer is in-stock on all essential products, supporting more than 8,000 stores across 46 states. Recently, Ramsey and her team successfully completed a large replenishment system implementation that will transform how we work and support our 8,000 stores and millions of shoppers,” she said.

• Despite continuing challenges, Ramsey sees a bright future for women in supply chain leadership roles. She noted that when she started her career, there were very few leadership roles for women in supply chain. While progress has been made, there is still a way to go, she said. But that shouldn’t discourage women from entering the field. “I think many companies out there are looking to diversify their supply chain organizations,” she added. “If you have a passion for analytics and serving the customer, then go for it.”

LISA WITTMAN-SMITH Senior VP, Planning, Replenishment & Supply Chain Optimization Joann • Wittman-Smith describes her retail career as a story of “talent plus preparation, with a focus on building effective teams.”

She said that throughout her 30-year retail career, she has been obsessed with expanding her capacity to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly and learn from experience.

• While becoming an expert cannot drive results alone, Wittman-Smith has focused her attention on building effective teams through talent management and organizational design.

“I deeply believe that strong results require a strong team,” she said. “Effective leaders excel at taking individual employees and bringing them together as a cohesive team.”

• As the senior VP of merchandise financial planning and business analytics at Joann, she leads a team of merchandise planners, replenishment analysts and business, data and customer analysts that include a newly formed data science, engineering and governance team. Within a year of joining Joann in 2021, Wittman-Smith brought together disparate merchandise planning and supply chain experts, delivering a post-pandemic $120 million inventory optimization by end of 2022.

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STORE SPACES

Design Tips for Small-Format Stores Store formats are shrinking fast — from Express Edit, Market by Macy’s and Bloomingdale’s Bloomie’s concept to smaller stores from the likes of Kohl’s, Ikea, Barnes & Noble and Sprouts.

The trend is being driven by a number of factors, including shoppers’ growing acceptance of having goods shipped to them (as opposed to strolling out of the store carrying a shopping bag) and intensifying pressure to cut labor needs and occupancy costs.

Also driving the trend is greater awareness among retailers of “choice paralysis ” — the phenomenon of consumers feeling overwhelmed by too many SKUs — and the increasing availability of labor- and space-saving self-checkout technology.

Indeed, footprints could shrink further if cashier-less, AI-driven stores such as Choice Market’s Mini-Mart catch on.

Smaller formats stand to boost operating efficiency and open up access to new, growing markets. Express Edit, for example, fits nicely in downtown retail districts, giving Express a new off-mall alternative. But it’s important to stay focused on the customer experience.

New prototypes shouldn’t feel lesser than what came before. Retailers need to find ways to motivate and inspire shoppers in all their spaces — even the tiny ones. Thoughtful, integrated approaches to design, architecture and engineering can go a long way toward achieving this goal.

Here are three tips for planning and designing small-format locations.

Big Tent Conversation When retailers have just 1,400 or 2,500 sq.ft. to play with—versus, say, 10,000 or 15,000 —they have to think carefully about how to approach checkout, merchandising/fixtures, consumerfacing technology, and back-of-house CHAINSTOREAGE.COM

equipment and mechanicals. To maximize productivity and punch from every square foot, retail execs should consider engaging in a multidisciplinary conversation about the look, feel and function of the store.

Starting early in the design phase, the big tent brainstorming with architects, engineers and interior designers could also include: • energy-efficiency and retail technology experts; • environmental, social and governance (ESG) consultants and internal leads; • leasing pros who understand cotenancy and other constraints; • third-party or in-house researchers with access to customer and traffic data; and • brand agencies and the in-house marketing team Technology Retailers also need to think about how their plans to use in-store technology could be supported by architects and designers. Let’s say the plan is to have roaming store associates use iPads to check customers out. This could allow the retailer to eliminate the cash wrap and claw back some square footage, but how will this approach affect traffic flow and the journey in a tiny store, in particular?

Likewise, installing a kiosk for online ordering could be efficient. But what happens to the flow and experience if shoppers start queueing up in front of it?

Designers can run these scenarios to find the best fit.

Technology and customer habits are changing incredibly quickly. It’s not hard to imagine a day when Uniqlo-style vending machines or AI-assisted, cashier-less technology become more commonplace in small-format retail.

PHOTO: BUSINESS WIRE

By Bob Owens

Macy’s has been accelerating the growth of its small-format stores, such as Market by Macy’s.

Retailers need to be able to pivot and redesign their stores to accommodate these changes without incurring massive construction costs. Architecture and engineering teams can offer suggestions for basic shells that offer maximum flexibility — for example, lighter, more modular and moveable fixtures and design elements as opposed to permanent built-ins.

Rethink Backend Systems On the engineering side, smaller stores create opportunities to make progress on ESG and cost-reduction goals. Smaller spaces can be heated, cooled, powered and fire-protected much more efficiently than junior anchor or big-box stores. In some cases, retailers should explore their options for things such s heat pumps, solar-plus-battery storage, or next-gen refrigeration.

Specialized engineers can run the numbers, study the building codes and convene with utilities to suggest the best equipment. They might also be able to provide details on government breaks and incentives. The retailer could then use the savings to pay for better-quality lighting and more attractive color palettes and finishes, adding oomph to the overall experience.

Creating a better experience, after all, should always be a top priority. And multidisciplinary teamwork is a great way to get the job done — whether the space is a cavernous, big-box store, or a retail “jewel box” the size of a bedroom closet.

Bob Owens (AIA, NCARB) is a VP at HFA Architecture & Engineering.

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STORE SPACES Q & A

24/7 Maintenance Support Chain Store Age recently spoke with Tom Bevacqua, CEO of Abby Solutions Group, about facilities management challenges and a solution for after-hours emergencies.

Tom Bevacqua is CEO of Abby Solutions Group.

What are some of the most common facilities management problems affecting retailers?

Attracting and retaining talent is a big challenge the retail industry faces in 2023.

The problem is compounded by the difficult nature of the job and the demands of a 24/7 work-life.

Another challenge is constraint on adding headcount to facilities departments while store counts and individual responsibilities grow. A third problem is maintaining cost control in a labordeficient market.

Tell us about Abby Solutions Group.

Abby Solutions Group, or ASG, started nearly 25 years ago with a clear mission: “To be the low-cost provider of the highest-quality services in the facilities maintenance industry.” Exceeding the goal, we’ve become one of the largest plumbing and electrical service contractors in the nation and have managed projects from national rollouts to one-off remodels.

ASG responds to service requests through our proprietary software, named “ABBY,” and our national network of trade partners. We provide 24/7/365 service, with our after-hours solution “NIGHTFIXX,” managing emergency after-hour calls.

Additionally, ASG has a long-established reputation as a reliable and dependable national general contractor.

What distinguishes ASG from other FM companies?

When ASG was founded in 1999, transparency wasn’t a popular business model in facilities. Transparency was, and is, our number one differentiator. Our clients

enjoy full visibility to technician’s costs.

ASG invested millions in developing our ABBY internal software. It drives savings for our clients, has improved our service delivery and provides clients with over 300 reports, real-time data analytics and automatic quarterly reports which review over 50 performance metrics.

The company has won four Nike Retail Vendor Excellence awards and four awards from adidas, including the adidas 2010-2019 Vendor of the Decade. But the number we are most proud of is our client tenure average, which currently exceeds 12 years.

Can ASG service retailers with footprints that span the entire U.S.?

ASG services multi-site operators in all 50 states and Puerto Rico. And almost 25 years of developing our field partner network enables ASG to complete all service requests with a recall rate below 1% nationally without incurring a dollar in field Q&A expense.

We accomplish this by incurring the time and expense to root out 95.5% of vendors who are sub-par. Our metric scoring, zero tolerance policies and real hands-on involvement make failure unacceptable. Only 4.5% of all vendors who complete our on-boarding process join our service network.

Our clients’ expectations of seamless delivery, competitive pricing and real-time information are demands extended to the field level. Our service providers meet these expectations and, in return, receive quick payment, quarterly newsletters and bi-monthly training meetings.

Are after-hours service emergencies

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common in retail settings? How can ASG help in this regard?

Data shows emergencies as a category are just over 10% of total service requests for most clients, half of which are initiated after normal hours. ASG has always provided around-the-clock support for our clients. And then, in 2015, a client asked for help standardizing relief from afterhours issues. We created NIGHTFIXX in partnership with Burlington.

NIGHTFIXX takes the calls and manages them as if they are a member of the client’s own facilities team. Seamless coverage is accomplished through digitizing our clients’ process, performing morning handoffs and providing activity reports from the night prior. NIGHTFIXX has never failed to answer the call for our clients.

What other benefits does NIGHTFIXX offer retailers?

Top-tier companies using NIGHTFIXX experience intrinsic benefits that include cost savings and compliance. They also cease draining their team with emergencies at night, weekends and holidays.

There are 128 after-hours to cover weekly. After-hours coverage requires three regular-rate full-time employees, or rotation of the existing team which may bring large overtime costs. NIGHTFIXX costs about 50% less than adding headcount or increasing overtime hours.

Without exception every single NIGHTFIXX client has reported a marked improvement in retention.

The solution also ensures compliance with the law —the Fair Labor Standards Act ensures that overtime work is compensated at 1.5 times regular pay (depending on the employee’s classification).

JULY/AUGUST 2023

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TRENDING STORES

On

Fast-growing Swiss athletic brand On opened its fourth U.S. location, in the Williamsburg neighborhood of Brooklyn, N.Y. The store spans 3,625 sq. ft. across two floors, with the second level dedicated to community experiences. (On also play host to weekly run clubs.) It has a sleek look and include the brand’s signature “magic wall,” which consists of concealed shelves that hold every size of every On shoe style available in the store. … Skims, the popular shapewear brand co-founded by reality TV star and entrepreneur Kim Kardashian, will debut its first permanent stores in 2024, opening a 5,000-sq.-ft. flagship in West Hollywood (Los Angeles) in the first half of the year,

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followed by an outpost in New York City. … Department store retailer Van Maur is expanding its young women’s contemporary fashions banner Dry Goods, opening open 11 locations in 2023. … The world’s first Angry Birds retail café has opened at Tangram, a mixed-use development project in Flushing, Queens (New York City). The 3,300-sq.ft. themed space combines specialty desserts and other food offerings with gaming stations, a retail section and unique interactive activities. The décor includes a colorful ceiling mural with Angry Birds graphics, and flooring and counters designed to resemble sprinkles. … REI Co-Op is opening a standalone REI Re/Supply store dedicated to used gear and apparel at Clackamas Town Center in Clackamas, Ore. The merchandise mix will change frequently and be made up of lightly used products that REI receives through the typical returns process along with items received through trade-in programs. … Petco Health and Wellness has opened a one-stop health and wellness destination for pets in Manhattan’s Union Square. The two-level, 25,000-sq.-ft. store houses a full suite of experiences, products and services, ranging from a full-service veterinary hospital to an indoor dog training park to a pet salon that offers grooming services tailored to specific needs, as well as a self-service dog wash station.

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STORE SPACES PHOTO: JARRETT BIRNBAUM/AMERICAN DREAM

Comeback Kid: Babies”R”Us

Revival of brand starts at American Dream The store includes a stroller test track.

By Marianne Wilson Babies”R”Us has returned to brickand-mortar in the United States with a stylish, modern-looking store that put an emphasis on experiences and customer amenities.

The baby products retailer, which liquidated its U.S. assets in 2018 along with parent company Toys”R”Us, has opened a flagship at American Dream, the three million sq.-ft.-plus entertainment and retail center in East Rutherford, New Jersey. It’s the brand’s first U.S. store under its new owners, brand management firm WHP Global. The company acquired Tru Kids, parent of Toys”R”Us, Babies”R”Us and more than 20 related consumer toy and baby brands, in 2021.

Designed to make shopping for baby an engaging, enjoyable and stress-free experience, the new Babies”R”Us has a much smaller footprint — 10,000 sq. ft. — than the brand inhabited in its previous life.

It’s also more experiential. Along with a full range of product, it offers an array of interactive experiences that include test tracks to try out strollers and and an automobile seat where customers can sample installing infant car seats.

The flagship also boasts a photo-opp station where parents can announce their new arrival, a nursery design center, a baby registry lounge and a “comfort zone” to feed or change baby. Other features include a dedicated space for private

events and educational workshops.

Regarding future expansion plans for Babies”R”Us , WHP chairman and CEO Yehuda Shmidman told Chain Store Age that “we’re starting here and then we’re going national.”

The return of Babies”R”Us is in line with WHP’s goal to return both the baby products retailer and Toys”R”Us to the U.S. retail marketplace. In December 2021, Toys”R”Us opened a 20,000-sq. ft. flagship at American Dream.

Since then, the toy retailer has opened in-store shops across Macy’s and will open its first airport location, at Dallas Fort Worth International Airport, in time for the upcoming holiday season.

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STORE SPACES

ASHRAE Standard Breaks New Ground

Standard prioritizes indoor air quality with new requirements

By Marianne Wilson A new ASHRAE standard provides requirements for many aspects of air system design, installation, operation and maintenance.

The group recently approved publication of its long-awaited standard to reduce the risk of disease transmission by exposure to infectious aerosols in new buildings, existing buildings and major renovations. (Infectious aerosols, which are so small they can remain in the air for long periods of time, can carry diseasecausing pathogens). Use of the standard could reduce exposure to the SARSCOVID-2 virus, flu viruses and other pathogens, noted ASHRAE.

The new standard includes an infection risk management mode (IRMM) that applies during identified periods of elevated risk of disease transmission.

Other key aspects of the standard include: •Requirements for Equivalent Clean Airflow Rate – Other indoor air quality standard specify outdoor airflow rate and filtration requirements to control normal indoor air contaminants. Standard 241 breaks new ground by setting requirements for equivalent clean airflow rate, the flow rate of pathogen free air flow into occupied areas of a building that would have the same effect as the total of outdoor air, filtration of indoor air, and

air disinfection by technologies such as germicidal ultraviolet light.

This approach allows the user of the standard flexibility to select combinations of technologies to comply with the standard that best satisfy their economic constraints and energy use goals.

•Requirements for Use of Filtration and Air Cleaning Technology – Standard 241 provides extensive requirements for use of filtration and air cleaning to effectively and safely achieve meet equivalent clean airflow requirements efficiently and cost effectively.

These include testing requirements to establish performance and to demonstrate that operation does not degrade indoor air quality in other ways, for example by elevating ozone levels.

•Planning and Commissioning – Standard 241 provides assessment and planning requirements culminating in the development of a building readiness plan, a concept carried over from the work of the ASHRAE Epidemic Task Force. It also describes procedures for

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REAL ESTATE

TOP 10 RETAIL CENTER

EXPERIENCES

2023

• MALL OF AMERICA • TUSCAN VILLAGE • FENTON • NAPERVILLE CROSSINGS • CROCKER PARK

Chain Store Age picks physical retail’s most engaging spots.

By Al Urbanski

1 NO. 1 MALL OF AMERICA,

Bloomington, Minn.

Being bigger isn’t always better, but in Mall of America’s case, it is.

The 5.6 million-sq.-ft. mega-mall covers 129 acres in Bloomington, Minn., enough space to accommodate 11 Target Fields—home of the local Twins. The Minneapolis Metro Blue and D lines stop inside the center. That not only gives residents and visitors to the Twin Cities easy access to MOA, but also travelers burdened with long layovers at the nearby Minneapolis-St. Paul International Airport. They can hop a 10-minute ride to America’s largest mall and kill a few hours in a place that houses more than 500 stores and 60 restaurants.

They can even ride the Avatar Airbender at Nickelodeon Universe to prepare for their next flight.

“Mall of America benefits from a unique infrastructure. Even in the cold Minnesota winters we’re packed because can you get here and have a great time here without ever having to go outside,” said MOA”s chief business development and marketing officer Jill Renslow.

While year-round event staging has become a rather recent 24

• SCOTTSDALE FASHION SQUARE • WESTMORELAND MALL • PACIFIC CITY • ALA MOANA • WESTFIELD TOPANGA

undertaking at retail centers, Renslow started doing it at the Triple Five property after graduating college 26 years ago and has helped plan more than 10,000 events—many of them packed-house presentations like Mariah Carey concerts and Minnesota Vikings cheerleader auditions.

This September, MOA will host Saturday Night Nitro in the mall’s Huntington Bank Rotunda, a World Championship Wrestling event that harks back to the night in 1996 when Hulk Hogan, Sting, and Ric Flair battled it out in the mall.

Over the 31 years that America’s largest mall has been in business, its events team has ardently kept pace with current societal trends.

“In the Nineties, it was all about the pop stars,” Renslow recalled. “Then home design became big and we did a lot with HGTV. Now influencers have taken off and we bring in a lot of YouTube sensations. Recently, we jumped on the Taylor Swift tour with interactive events for Swifties.”

But the No. 1 form of entertainment that 2023’s No. 1 Retail Center Experience provides for its 40 million annual visitors (five times Magic Kingdom’s draw) is shopping.

The property constantly tweaks its tenant list, having added 70 new brands over the past five years. Many are experiential--such as ClimbZone and the Museum of Illusions—but most are national retail names with stores that can’t be found anywhere else.

Lululemon opened a flagship with a studio for classes and a fuel-up bar dispensing coffee, tea, and fresh smoothies. The M&M store cut the ribbon on a 24,000-sq.-ft. location. And Nike Rise’s flagship is set to open there later this year.

“The vast majority of mall tenants are top-end chains, and it’s not uncommon for them to be the No. 1 stores in their chains,” said MOA’s SVP of leasing Heather Swilley. “It’s a mall for everybody. There’s a huge diversity of brands. We have everything from Five Below to Burberry. We’ve added kid’s concepts. We brought in Rowan, which does ear piercings performed by licensed nurses.”

Mall of America, Swilley proclaims, lives up to its name.

“It’s a national mall,” she said.

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REAL ESTATE

2

NO. 2 TUSCAN VILLAGE,

Salem, N.H.

Through the entire 20th Century, Salem, N.H., was a popular entertainment destination for Bostonians who regularly made the 30-mile trip to its famed Rockingham Park Race Track, where Seabiscuit once galloped to glory. That changed when the track closed in 2016.

But just seven years later, the burg is bustling once again.

Tuscan Village, a 170-acre mixed-use project with multifamily housing, a lake, the first Mass General Brigham medical center in New Hampshire, and tenants like Arhaus, Nike, Pottery Barn, and the Sam Adams Beer Garden bringing crowds back to Salem.

“I could pretty easily say that there are 2,000 to 3,000 people walking around on the property every day,” said Tuscan

NO. 3 FENTON

Cary, N.C.

When Fenton was about to open a year ago, its then leasing director Dotan Zuckerman told us that locals in Cary would be glad that North Carolina nixed its original plan to turn the empty 92-acre site between Raleigh and Durham into a storage location for state vehicles.

“Everyone around there compared it to other modern openair developments,” Zuckerman said then, “but they didn’t know what they didn’t know, and they soon will.”

Now they do.

Today, thousands of residents in this well-to-do suburban enclave in the Research Triangle escape to Fenton to dine at chef-driven restaurants such as M Sushi and Colletta, from which they can exit with their cocktails and stroll through artlined paseos.

They can pause at two green spaces set with hammocks, fireplaces, cornhole sets, and chess tables. And they and their families can take advantage of the center’s 200-plus annual activations such as Raleigh Fashion Fest, Little Fentonians, and Light the Square—Fenton’s Christmas tree lighting event which drew more than 17,000 visitors in its first year.

“It’s a vibe. It’s an environment,” said Kurt Hartman, a senior 26

Village’s senior VP of leasing Mike Powers, who previously performed the same role at Top 10 alumni Easton Town Center and Crocker Park. “And at full build we expect to have 5,000 people living here.”

In the meantime, crowds continue to pack the site for a calendar-crowding series of events such as the Summer Wine Fest, Fourth of July fireworks, The Tiki Takeover, Spritz O’Clock, Trivia Tuesday, and paddle-boarding and kayak demos at the L.L. Bean store on the lake.

During the summer, Tuscan Village’s activation strategy does not limit itself to one-off special events. Its Summer Concert Series runs every Thursday through Sunday, presenting popular Boston metro bands, live DJ’s, and themed programs such as The Italian Music Festival. It’s a known happening, and people throughout the Boston area check the lineup on a weekly basis.

During the holidays, Tuscan Village presents an outdoor Winter Market featuring 40 to 50 booths for crafts sellers.

“Our events calendar keeps building on itself. It started out very experimentally and exploded into a packed 12-month program,” Powers said. “We’ve become a destination for people who make 40-to-60-minute drives from Boston and Portsmouth.”

Powers and Tuscan Village’s owner, local food product manufacturer and restaurateur Joe Faro, have been busy building on the project’s success in planning Phase 3 of the project. Twenty tenants have been signed that include The Artisan Hotel, West Elm, and Shake Shack.

3

managing director at the global real estate power Hines, which developed Fenton in partnership with Columbia Development.

“Most of the other retail centers in the area have been around a long, long time. There is an old mall that has been morphing into an outdoor center. This is the only one created from the ground up.”

Wegmans was the very first tenant to show an interest in the location, and its lease signing shone as a beacon to other top national and local brands.

Fenton’s 345,000-sq.-ft. of retail GLA houses Arhaus, Lululemon, Paragon Theaters, PBR Cowboy Bar, Williams Sonoma, CRU Food & Wine Bar, Club Pilates, and Sephora.

Office space and multitenant residential is elevated above the street-level retail deck.

Phase Two of the project is now underway and Phase One’s exceptional debut has caught the eye of many more valuable tenants, according to Hartman.

“Leasing is up like crazy,” he said.

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REAL ESTATE

NO. 4 NAPERVILLE CROSSINGS

Naperville, Ill.

“Activations” is one of the key items on the to-do lists of today’s growing number of mixed-use centers. A steady calendar of events churns traffic on a weekly basis, not just during the back-to-school and holiday seasons. It’s not, however, a standard operating procedure at more utilitarian grocery-anchored centers that focus on providing everyday needs and services.

Then there’s Naperville Crossings.

This Phillips Edison & Company center in the comfortable western suburb of Naperville has…

•An annual Halloween Trick-or-Treat event that draws 500-plus kids from the neighborhood and beyond. All tenants hand out treats.

•A Hug Your Heroes event starring local police officers and firefighters with their trucks — along with the PAW Patrol — recently atrracted more than 500 people.

•A chess tournament run by the local high school chess club that drew 85 competitors last year and was supported by tenants and Naperville Crossings vendors offering such goodies as free hot chocolate and $100 gift cards.

“Our big events draw people from way beyond the local neighborhood,” said Kathy Jemilo, the senior regional property manager in charge of Naperville Crossings. “We pull people from Bolingbrook, Oswego—many of the towns along Route 59, where we’re located.”

The chess tournament blossomed when Phillips Edison placed a large board with tall chess pieces on a patio at the property.

“People come to the center and just sit there and relax. It seems there’s never a time I go there when somebody’s not playing chess,” Jemilo said.

But the best experiences at the Aldi-anchored center, it seems, are enjoyed by its tenants—whom Phillips Edison managers refer to as their “Neighbors.”

“There’s always something going on here for people to enjoy the neighborhood and that leads to having a lot more awareness and walk-in customers,” said Alexis Landrieu, manager of the A La Folie confectionery shop.

Devon Whittaker from the KidStrong activity center remarked that Naperville Crossings is a neighborhood center unlike most others.

“Employees come out before their shifts, mixing and matching,” he said. “We’re creating business opportunities together.

It’s great to have a community of businesses working together, not just competing.”

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NO. 5 CROCKER PARK

Westlake, Ohio

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Some 25 years ago, while walking the streets of Midtown Manhattan, Cleveland-based real estate executive Bob Stark scanned the rows of street-level shops topped by offices and apartments and wondered, “Why couldn’t we recreate this in a suburban development?”

And that’s what he ended up doing 10 miles west of Cleveland in Westlake. Crocker Park’s opening in 2004 laid down the game plan now being used by mixed-use developers nationwide: Don’t create shopping centers, create retail-based community centers.

In a quiet suburb lined with corporate headquarters, Stark built the classy community its residents lacked. A Park Avenue-style main entrance leading to a roundabout directing visitors to different sectors. City streets lined with two-tofive-story buildings evoking different architectural styles hold apartments above and shops at street level. Green spaces, recreational areas, sidewalk cafés.

Crocker Park eventually blended into the community with a corporate headquarters of its own—American Greetings.

“We continue to integrate as much as possible into the community. The City of Westlake itself invested a couple of million dollars to create our Market Square section, where many couples hold their weddings,” said Bob Stark’s son Ezra, now CEO of Stark Enterprises.

For three years running, Crocker Park has been designated as the Best Kid-Friendly Shopping Destination by Northeast Ohio Parent magazine for its youth events program and tenants such as Urban Air and The Lego Store. Its largest visitor demographic is the 0-17 age segment, making up 21% of its audience.

At the same time, new tenants continue to flow into Crocker Park that engage across the demographic spectrum. Some 30 new brands entered the center over the last five years, among them Nike by Crocker Park, World Market, Pulpo Brewery, Pandora, Leo’s Italian Social, Vionic Shoes, and Warby Parker.

“It’s a constant evolution, a living, breathing organism. Human trends change and you have to adapt to them or people no longer feel that sense of place,” Ezra Stark said. “You have to create enough density and structure the parking and the city blocks to allow people to get lost in the center and feel that it’s their own place.”

JULY/AUGUST 2023

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NO. 6 SCOTTSDALE FASHION SQUARE

Scottsdale, Ariz.

More than 650,000 people moved to Phoenix from 2010 to 2020, an increase of 11.2% according to the Census Bureau.

Retirees used to be the chief migrators to the metro, but no longer. Young professionals and families have taken up the slack as tech businesses the likes of Meta Platforms and Taiwan Semiconductor take root in the region.

Macerich, Scottsdale Fashion Square’s owner, had been well aware of Phoenix’s demographic shifts and decided it was time to make some changes itself.

“Each year we’d study the Phoenix demographics and see big shifts,,” said the company’s senior VP of leasing Kim Choukalas. “New businesses were moving in and bringing in sophisticated consumers looking for the kinds of goods and

services they were used to in the places they’d left.”

Scottsdale Fashion Center was already known as a luxury shopping destination, but Macerich decided to ramp it up and establish it as Arizona’s undisputed home of fine goods. In 2018, construction began on the new Luxury Wing. Given a distinct identity at the north end of the center, and anchored

by Neiman Marcus, the luxe loop houses 35 tenants that run the range from Vuitton to Rolex to Tiffany.

Since then, the center has focused on elevating its dining options. It’s added Nobu, Francine, Toca Madera, Ocean 44, and a 12,000-sq.-ft. space for Elephanté—the first expansion for Santa Monica’s renowned Italian eatery.

Its elevated its fitness options, as well, this year when Life Time Fitness took a space next to the Luxury Wing, delivering about a thousand people a day from morning to night.

The changes made over the past five years at Fashion Square have delivered on Macerich’s chief goals: More people spending more time and more money in the center.

Average sales per sq. ft. that were $1,032 at Fashion Square shot to $1,472 after the Luxury Wing arrived in 2019.

After the new lineup of dining options arrived, this year’s average hit $1,737.

“We’re constantly adding more reasons for more people to spend more time at our properties,” said Macerich executive VP of leasing Doug Healey. “Sometimes you want a new T-shirt, and sometimes you want a new Hermés bag. Diversity of experiences is what Scottsdale Fashion Square is all about.”

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NO. 7 WESTMORELAND MALL

Greensburg, Pa.

In 2022, this 45-year-old classic enclosed mall owned by longstanding classic enclosed mall operator CBL Properties saw customer traffic increase by 15% above pre-pandemic levels. Some of those visitors, in fact, drove distances of more than 200 miles to get to Westmoreland Mall. How did CBL hit this traffic jackpot?

It filled its vacated, 100,000-sq.-ft. Bon Ton department store anchor with a Live! Casino operated by The Cordish Companies.

There are other retail center-based casinos in the United States, but Westmoreland’s is the only one that opens into the mall. (CBL itself also has a Hollywood Casino at York Galleria Mall in Pennsylvania.)

“We’ve seen a 50% increase in the number of zip codes of our visitors. The most significant increase has been the number of people traveling 30 or more miles to the property,” said CBL CEO Stephen Lebovitz.

“And it’s not just the casino that draws. There’s a bar entertainment base with Sports & Social and a FanDuel sportsbook, and there are three new restaurants.” Lebovitz continued. “We’ve completed a dead space that now can attract parties and weddings.”

The entertainment draw of Live! Casino has been so impact30

ful that CBL felt no need to perform any renovations in the mall itself. Cordish itself renovated the parking deck.

Over the past year, CBL has made deals with new tenants that will open more than 230,000 sq. ft. of entertainment options across its 90-property mall and open-air portfolio. Tilt will occupy nearly 50,000 sq. ft at Dakota Square in North Dakota, Stars and Strikes will fill the former Dick’s Sporting Goods space at Coastal Grand Mall in Myrtle Beach, and Main Event has signed a 38,000-sq.-ft. lease at Cross Creek Mall in South Carolina.

“The demand for entertainment is strong,” said Lebovitz, “and a casino gives the shopper a bigger experience and reason to come to a property than just about any other entertainment concept. We’re really pleased how this worked out.”

JULY/AUGUST 2023

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NO. 8 PACIFIC CITY

Huntington Beach, Calif.

This 8-year-old center that sits on the beach where the U.S. Open of Surfing is held each July had subsisted primarily on tourist traffic. That was until Centennial bought Pacific City in 2021 and took it on a surfin’ safari.

The Dallas-based company--whose MainPlace in Orange County was No. 6 on our 2020 list--did a kick-out on the center’s positioning by diving headfirst into a wall of waves.

Centennial partnered with the Huntington Beach Surfing Walk of Fame to create an Honor Wall honoring surfing legends like Kelly Slater and Bruce Brown.

Pacific City now hosts meet-and-greets with famed surfers. At one such event with Lisa Anderson—the inspiration for the Roxy swimwear and apparel brand-- Pacific City’s art gallery hosted a reception honoring her 30-year career.

One of Pacific City’s most popular events is its hosting of the KROQ “Roq the Ocean” concert series on its ocean deck, a raucous night of reggae and rock music.

A change has been made in the tenant mix, as well. The center landed the first U.S. dealership of VinFast, the Vietnamese e-car brand, plus a new line of local-appeal dining options that include Old Crow Smokehouse, Bluegold seafood, and Ola Mexican Kitchen--some of which keep their doors open until midnight.

Centennial’s re-theming of the uniquely situated center has resulted in a 20% year-over-year increase in visitors. And what once was just 10% local traffic has been pumped up to 30%.

“We succeeded in changing the perception of Pacific City by adjusting the merchandise strategy and amplifying the experience to embrace the local culture,” said Centennial executive VP of marketing Colleen Heydon.

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NO. 10 WESTFIELD TOPANGA

Canoga Park, Calif.

NO. 9 ALA MOANA

Honolulu, Hi.

“You land for the first time in Honolulu, pick up your luggage, get into a taxi and ask the driver what you need to see.

First thing he’ll tell you is not to miss Ala Moana,” said Jake Wilson, Brookfield Properties’ VP of property management in Hawaii. “I’m not kidding.”

Ala Moana, the world’s largest open-air shopping center with 2.4 million sq. ft. of GLA, gets 53 million visitations a year.

It was panned by critics when it opened in 1959 (the year Hawaii achieved statehood), but eventually displaced downtown Honolulu as Oahu’s retail hub. Today it has its own post office as well as a branch of Honolulu’s Town Hall.

The center puts on 500-plus events a year. Its Center Stage hosts daily Hula shows, and this year’s winner of the Little League World Series—the Hawaii Team—signed autographs and posed for selfies with adoring fans at the property.

Situated 6,500 miles from Osaka and 2,500 miles from Los Angeles, the center is employed as a launching point for American retail brands looking to expand in Asia and Asian brands getting a feel for new customers in the States.

“In Ala Moana you could be walking next to a billionaire, or a couple from Kansas City on their honeymoon, or the locals who visit three times a week,” Wilson said.

The 500-plus stores and dining options on the property range from Marshall’s to Ferragamo, Sbarro to Morton’s Steak House, and Famous Footwear to Prada. In a city whose thermometers hit 80 degrees in February, Moncler has a store that sells thousand-dollar down jackets.

“Ala Moana is a center for the international customer, to whom we’re able to showcase the best of brands and the most popular brands,” Wilson observed. “When we opened the first Chick-fil-A on Oahu, we had folks lining up at four a.m. for a 10 o’clock opening.”

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At this center in the Santa Monica Mountains west of Los Angeles, Unibail-Rodamco-Westfield showed what heights could be hit following the withdrawal of a longtime anchor.

Long a popular fashion stop with retailers like Nordstrom, Neiman Marcus, Versace, and Dior on its tenant roster, URW saw an opportunity to build on that strength at Topanga with all the square footage at its disposal from its acquisition the former Sears space there.

“We tore the department store down,” said Kim Brewer, URW’s senior VP of development.

“As we looked at the evolution of the shopping center, we wanted to use the space to create a dynamic experience.”

The luxury wing was expanded with Grand Seiko and an expanded Gucci store. Signed to open there later this year are Hermés, Bottega Veneta, and an expanded Cartier.

Topanga Social, a 50,000-sq.-ft. dining hall experience, offers 25 food and drink venues and an indoor/outdoor cocktail garden.

Tenants include Amboy Quality Burgers, Dumpling Monster, Slab BBQ, and The Pie Room by Curtis Stone With Topanga Social open, dwell time at Westfield Topanga from January to June was 14% higher than it was during the same period in 2022. Traffic was up 9% in May, and 8% of the visitors drove in from 30 miles or more away.

“We’ve engaged in a lot of social media activity about the renovations and invited hundreds of influencers,” said Brewer. “But the people in the center taking pictures is what’s really building our customer base.”

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JULY/AUGUST 2023

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TECH VIEWPOINT

Every Tuesday

DTC Retailers Innovate — In-Store and Online

The premier newsletter showcasing technology and multi-channel, seamless retailing.

The direct-to-consumer (DTC) space is producing some interesting technology deployments that are transforming operations across channels.

Here are three recent examples of DTC retailers engaging in innovative technology deployments to ease the process of engaging consumers — wherever they may be.

From e-commerce and mobility to in-store technology and social media, Connected Retail keeps retail executives in the know about the fast-paced, ever-evolving world of retail tech.

Filson and Shinola Two direct-to-consumer brands owned by Bedrock Manufacturing Co. are offering a unified shopping journey across all channels: Filson, an outdoor apparel and accessories brand, and Shinola, a hancrafted wallet, jewelry and leather goods maker, are both deploying NewStore mobile POS, order management and store inventory solutions.

The retailers will leverage the NewStore platform’s omnichannel capabilities, including mobile checkout, endless aisle, store fulfillment, buy online pickup in-store (BOPIS) and buy online return in-store (BORIS).

In addition, Filson and Shinola employees will be able to consolidate customer, order, and inventory data into one iOS app. Store employees will be equipped with iPhones, providing them with access real-time data and enabling them to assist customers and process transactions from anywhere on the store floor.

True Religion Premium denim and sportswear brand True Religion is launching a new omnichannel loyalty offering. Known as True Fam, the program is the latest in a series of strategic initiatives intended to transform the company into a digital-first direct-to-consumer brand. www.chainstoreage.com/register True Religion anticipates that online sales will represent 50% of revenues by 2025, up from 35% in 2021.

The three-tiered True Fam loyalty program allows members to earn and redeem points

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across all consumer touchpoints, including instore, online, and through the brand’s recently launched mobile app. The tiers are differentiated by spending threshold and rewards.

Each tier offers points based on spend, welcome discounts, birthday discounts, and early access to sales. The program has been rolling out to customers across all of True Religion’s channels throughout spring 2023.

In addition, True Religion is using emails and SMS messaging to promote True Fam. In-store offerings include signage, scannable POS receipts, and sign-up and redemption at checkout.

True Religion developed True Fam in partnership with Lexer for CDP data and Yotpo, a loyalty strategy platform. Zurb tested the program with current and prospective True Religion customers.

Zenni DTC eyewear retailer Zenni is actively adopting advanced AI technology to optimize its digital shopping experience. In a recent Chain Store Age interview, Zenni CTO David Ting discussed how AI is transforming e-commerce operations.

“Zenni introduced an optical character recognition (OCR) solution where customers can just scan the prescription,” said Ting. “No matter how sloppy the writing is war, or if the form fields are named differently than on our webform, or if it’s in a different language, our AI is smart enough to input it correctly.”

At this point, AI outperforms a human customer service agent in preventing webform errors, Ting added.

“The return rate has dropped because 20% of customers are using the prescription OCR solution,” he said.

Zenni also is launching a proprietary visual search solution that lets customers take or upload a picture instead of typing words in its search results.

“There’s a lot of advancement with AI that will allow consumers to see a new type of shopping experience that’s basically going to lessen the disadvantage of not having physical products there by making it easier for customers to find what they need,” Ting said.

Dan Berthiaume dberthiaume@chainstoreage.com JULY/AUGUST 2023

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TECH

Maximizing Employee Performance Jim Kirby is VP, service advantage for Ricoh North America.

Retailers seeking to optimize the output of their human workforce should look to artificial intelligence and automated systems. Chain Store Age recently spoke with Jim Kirby, VP, Service Advantage for Ricoh North America, about the challenges retailers face today in maintaining adequate staffing levels and ensuring their employees remain productive without causing a negative effect on worker morale.

By Dan Berthiaume

Kirby delved into how retailers can effectively utilize leading-edge technologies such as robotics and automation to properly support their workforce in performing higher-value and more complex tasks by streamlining routine, manually oriented workflows.

How can retailers help avoid and remediate employee burnout?

We have found, through industry research, most retail employees cite increased workloads due to turnover as one of the primary drivers of high stress levels and burnout. Moreover, the workload that these employees reference is often overloaded with tedious, mind-numbing, and repetitive tasks.

Employees want to be empowered to make a difference at their place of work rather than spend time feeling like they’re simply a machine. It may sound counter-intuitive, but leveraging automation to reduce manual workflows is the key to creating a more humancentric work environment.

This ultimately leads to increased productivity, streamlined procedures and time savings. By freeing up resources, employees can focus on more strategic and complex duties, and spend more time interacting directly with consumers.

Short staffing is a major issue with today’s labor shortage. What can retailers do to overcome this challenge?

Many retailers are looking to technology, such as robots and cobots (EDITOR’S NOTE: cobots are trainable robots designed to work alongside humans), to act as a workforce multiplier to help CHAINSTOREAGE.COM

close the personnel gap caused by labor shortages. Implementing these types of solutions often benefits both employers and employees alike.

Robots and cobots can help alleviate the burden of manual and mindless tasks, which leads to more time selling and engaging with customers. Innovative tech also gives employees more time for professional development and training.

This has the additional benefit of helping to close skill gaps that are often a byproduct of short staffing. It is a common misconception that robot and cobot solutions are there to replace humans.

Robots and cobots supplement the human workforce allowing employees to shift focus away from tasks and onto customers or strategic activities.

What advice would you give retailers looking to implement and scale technology to maximize employee productivity?

I give every customer three pieces of advice. First, focus on innovation instead of maintenance and support — this creates exciting, efficient ways to shop. Engaging innovative technologies promoting customer and employee satisfaction is a win-win — the critical support needed to achieve this funds itself.

Second, avoid overextending your existing staff with large-scale tech projects that consume their capacity and take time away from supporting your core business.

And third, find the right partner that can offer a variety of tech support and consult with you as you adapt new, automated solutions that fit your organization’s and your customers’ needs. These

programs must promote the adaptation of new automated workflows and technology — with new workflows come change requiring continuous learning.

Ensure technology is available to employees when needed (uptime), otherwise they’ll reject your usage model.

How can Ricoh solutions and services help retailers optimize their workforce and scale technology?

Ricoh Service Advantage does both, giving retailers options as they evolve in deploying newly optimized workflows, automation, and technology. We support full technical and user training programs, perform new installations, setup, and provisioning at stores, warehouses and distribution centers. We can engage tiger teams for pilot work, consult on optimizing drive uptime and scale new technologies.

Our programs include training design and delivery, service desk support, onthe-ground, local technicians for routine maintenance, break-fix management, installation support for technology, automation rollouts and more.

From store technologies that automate critical workflows to routine tasks, we work closely with store leadership and their technology manufacturers to provide programs promoting uptime, usage, and adaptation to new automated workflows.

We can help them track assets, determine root cause and avoid costly downtime through more predictive and remote monitoring measures. Essentially, Ricoh helps retailers accelerate change and maintain the ongoing and expected returns that come with today’s significant tech investments.

JULY/AUGUST 2023

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TECH

Holiday Tech Prep Getting smart about holiday retailing with AI

By Dan Berthiaume

Artificial intelligence (AI) and machine learning (ML) technology is rapidly transforming the retail enterprise, and holiday preparation efforts can benefit.

Retailers are adopting AI at a breakneck pace. This is especially true regarding generative AI, which is based on ML and can create new content and ideas, including conversations, stories, images, videos and music.

According to a recent forecast from IHL Research, AI will have a financial impact of $9.2 trillion through 2029 on retail (see sidebar). And Salesforce estimates that predictive and generative AI will influence $194 billion in global online holiday shopping spend this year.

Everyone is talking about the wonders of AI, but can retailers actually leverage this leading-edge technology to maximize their holiday performance? Following is a look at how retailers can integrate AI into their holiday customer service, merchandise planning and fulfillment initiatives.

Customer Service Generative AI, with its ability to understand and respond to conversational inquiries from consumers, is a natural technology to support sophisticated automated customer service chatbots.

Digital secondhand marketplace

Greater Efficiencies

According to a recent IHL Group forecast, retailers can expect to achieve between five to 100 times greater efficiency using generative AI technologies, particularly in sales and general administrative tasks.

While currently representing only 9% of the overall retail industry financial impact in 2023, IHL predicts generative AI will account for 78% of the total financial impact by 2029 and a total of $4.4 trillion during that year.

Mercari is beta testing Merchat AI, a customer service chatbot based on ChatGPT technology. ChatGPT leverages generative AI to interact with users in a conversational style that mimics human interaction and uses ML to continually refine and improve its responses.

Customers can now engage in realtime conversations with Merchat AI to discover product recommendations based on their individual needs. The new tool leverages the capabilities of ChatGPT to search the millions of items listed on Mercari’s platform in seconds, surfacing real-time recommendations based on specific chat prompts.

However, retailers need to keep in mind that many holiday shoppers may still be happier with at least some human online customer service interaction. A recent survey from AI platform InRule revealed that 59% of respondents distrust generative chatbot technology, 47% prefer humans over chatbots like ChatGPT during their customer experience and 70% prefer to interact with and keep a human in the loop even if they are engaging with an automated chatbot.

Demand Forecasting Urban Outfitters Inc. (URBN) is deploying an AI-based merchandise planning platform from o9. The company is utilizing AI’s capability to quickly detect and react to changes in customer demand and inventory levels in a way that perfectly aligns with the need to manage real-time shifts in holiday shopping patterns.

The o9 solution consists of merchandise financial planning, assortment planning, demand planning, allocation and replenishment applications. With the deployment. URBN can optimize decision-making by being able to more quickly adapt to trends, seasonality (such as the winter

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holidays), stock positions, promotions and unique demand drivers. This includes determining the optimal product mix across channels, regions and stores.

In addition, URBN intends to integrate predictive analytics, assumptions visibility and collaboration. The company also plans to utilize advanced allocation and replenishment optimization techniques to proactively position inventory to better meet consumer demand.

Fulfillment Given substantial increases in time-sensitive customer demand (nobody wants to give or receive a late holiday gift), retailers should consider integrating AI into their fulfillment operations. AI can also open up new levels of fulfillment scalability, as demonstrated by the next-gen fulfillment center model being implemented by Walmart.

The retail giant is opening a total of four state-of-the-art fulfillment centers dedicated to e-commerce during the next three years. The first location opened in summer 2022 in Joliet, Ill., while the second opened in June 2023 in the greater Indianapolis area. The other facilities will open in Lancaster, Texas, and Greencastle, Pa. The new, high-tech centers feature an automated, high-density storage system that allows Walmart to double the number of customer orders it can fulfill in a day. The system, developed in partnership with intelligent automation technology provider Knapp, streamlines a formerly manual, 12-step fulfillment process into five steps.

According to Walmart, the benefits of the new, AI-based fulfillment model include double the storage capacity and double the number of customer orders it can fulfill in a day.

JULY/AUGUST 2023

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