COVER STORY
REIMAGINING BRICK-AND-MORTAR
With an eye on flexibility, stores evolve to keep pace with shifting retail landscape By Janet Groeber
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-commerce. New real estate strategies. Staffing shortages. Increased operating costs. Personalization. Buy-onlinepickup-in-store. Changing shopping behaviors. These are among the considerations that retailers are factoring in as they plan new stores and retrofit existing ones. More than three years after the disruption of in-store shopping, many retailers are rethinking and reimagining their stores, with an eye to creating spaces that work for shoppers as well as staff and incorporate features that gained momentum during the pandemic. BOPIS, for example, has emerged as a must-have strategic element for many retailers and increasingly figures into a store’s design. So have dedicated spaces for curbside pickup. “We’re working with several retail clients now to explore new format ideas and how existing stores will need to evolve,” said Joseph Bona, founding partner, Bona Design Lab, New York City. Retailers across the spectrum are rethinking their box, Bona added, including convenience store chains who are joining other retailers in embracing technology that supports quick in-and-out. Depending on the format, a fast-and-efficient shopping experience is often top of mind for today’s in-store shopper. “This means retailers need to provide quick checkout options, speedy delivery and pickup, and other ways to minimize wait times,” said Jeff Nader, design services, api(+), Tampa, Fla. In a trend that continues to pick up steam, more and more retailers are integrating online convenience within their physical locations. Walmart, for example, recently closed two locations (one in Bentonville, Ark., and the other in Lincolnwood, Ill.) devoted exclusively to pickup and delivery operations. The reason behind the closings: The retail giant has added those very services to thousands of full-service locations since the two stores opened. Target Corp. has been rolling out new features for its curbside pickup service. The chain is going nationwide with an option that allows customers to use the Target app to return an item to the store from the comfort of their car. Flexible: MJ Munsell, chief creative officer at MG2, Seattle, said that retailers need to be nimble to accommodate ongoing shifts. Operational issues, she added, especially location volatility, are affecting all retailers. Now, more than ever, it’s time to check under the hood. “Retailers need to carefully consider co-tenants, traffic counts, proximity of amenities, ease of access and real estate costs,” 10
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Target debuted its new larger footprint in Katy, Texas. At nearly 150,000 sq.ft., the store is more than 20,000 sq. ft. larger than the chain average.
Munsell advised. “It’s no longer a given that going into an inline mall location is the best strategy.” Bath & Body Works is among the companies re-examining its real estate strategy. The specialty retailer plans to open about 90 off-mall stores and close some 50 mall locations this year. It shuttered 48 stores last year, with the majority in malls, and opened about 95 off-mall locations last year. Retailers are also paying attention to outside-the-box selling spaces. “We’ve seen an uptick in pop-up stores and other temporary retail formats, which offer retailers greater flexibility and lower overhead costs,” noted api(+)’s Nader. “These formats allow retailers to showcase new products and concepts without committing to long construction schedules and permitting delays.” Alternative spaces also include retail trailers or sampling vehicles that reach customers where they live or work. The notion of flexibility extends beyond location. Layouts and open concepts that can be easily reimagined offer retailers the adaptability they need to keep up with today’s fast-changing retail environment. Modular furnishings do the same. As retailers reconsider their boxes, many are taking a more flexible approach to store size. Target Corp. has debuted a larger-format store that, at 150,000 sq. ft., is more than 20,000 sq.ft. larger than its average location. The company plans to open about 20 new stores this year in a variety of sizes. (See story on page 12.) The discounter will include design elements that reflect the local community, from native landscaping to localized product offerings, in many of its new and remodeled stores. MARCH/APRIL 2023
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3/3/23 10:13 AM