Location Strategy

The Modern Airport is the Destination

The Modern Airport is the Destination 1440 428 ASG

Imagine visiting an airport that not only serves as a transport hub, but also doubles as an adventure park, shopping mall, and sanctuary for relaxation.

In today’s travel landscape, airports are redefining themselves as destinations in their own right, offering travelers and locals alike experiences that go beyond the usual concept of an airport. Whether you’re looking for a taste of local culture, thrilling entertainment or an oasis to escape the stresses of travel, airports are evolving to cater to a diverse range of preferences and needs.

The timing couldn’t be more important. Industry experts say an expected 9.4 billion passengers are expected to travel by air in 2024, an important milestone as the global industry continues to recover post-pandemic. By comparison, the year 2019 saw 9.2 billion airline passengers.

The transformation of airports into dynamic, multifaceted spaces reflects a growing trend that enhances the travel experience, making the journey as memorable as the destination. Here’s how they’re doing it.

Amplifying Local: Airports Embracing Regional Flavors and Culture

At Adelaide Airport in South Australia, you’ll find 100 Miles, a restaurant with a unique philosophy: It exclusively uses ingredients procured from within a 100-mile radius of the establishment. Embracing the flavors of the region, this innovative eatery offers a menu featuring locally-sourced, seasonal ingredients sourced from the city’s Central Market and paired with South Australian wine.

The conceptual restaurant amplifies local flair and offers the nearly 6.5 million passengers traveling through the airport each year a taste of the region’s culture and products.

Yet 100 Miles isn’t just a restaurant; it’s a snapshot of the modern airport, reflecting the growing trend of providing authentic and locally-inspired experiences to travelers.

Across the ocean in Seattle, an expansion currently under way of the C Concourse at the Seattle-Tacoma International Airport is inspired by the Pacific Northwest landscape. The more than 145,500-square-foot expansion, expected to be complete in 2027, adds four additional stories above the airport’s existing concourse.

With enhanced views of the surrounding Olympic Mountains as the backdrop, the project provides travelers with additional dining and retail spaces, as well as amenities like interfaith prayer and meditation rooms and a nursing suite. A marketplace located in the middle of the concourse will be modeled after Seattle’s famous farmers’ markets and will serve as a location for more retail kiosks and musician performances.

As part of the Metropolitan Washington Airports Authority’s multi-year redevelopment plans, Reagan National Airport and Dulles International Airport will see a boost of local flair. D.C.-area coffee shops, gift shops and apparel shops will add locations inside the airports, alongside a new restaurant at Dulles from Fabio Trabocchi, a celebrity chef and owner of the Italian restaurant Sfoglina, which is nestled in the northern D.C. neighborhood of Van Ness.

Revamped Retail: Transforming Airports into Entertainment Destinations

Airports are not only redesigning retail and entertainment spaces to cater to the preferences of today’s travelers, but also becoming entertainment hubs – not simply a necessary stop.

At Perth Airport in Western Australia, guests can escape a haunted house, explore a space station, or battle pirates on the high seas– all while never leaving the first level of Terminal 1 International. It’s all part of the airport’s enhanced VR experience, Gaming Point, which offers VR escape rooms to elevate the travel experience. Gaming Point also allows guests to choose from a library of more than 50,000 games to play on state-of-the-art gaming desktops. Once gamers leave the airport, they can continue to play using their own Steam network account.

Have a long layover? No problem. Check out the flight museum or the used book store at the Milwaukee Mitchell airport, or play interactive games in Buzz Zones at the Hong Kong International Airport. Immerse yourself in art at one of Miami International Airport’s galleries, or make sure you plan a special trip through the Munich Airport during the holidays where you’ll find a Christmas market that features an ice skating rink, carousel and an open market selling handmade crafts.

Airport Innovation: Setting New Standards for Comfort

It’s not all about entertainment. International airports are also elevating passenger comfort and relaxation during layovers.

At the forefront of innovation, Auckland Airport’s Strata Lounge boasts private wellness pods that visitors can book in advance. These pods create a calming ambiance through gentle, customizable lighting, immersive floor-to-ceiling photographic murals of tranquil forest landscapes, and modular sofas that can be converted into single and twin sizes.

At Dubai International Airport, global travel hospitality brand Airport Dimensions has installed its largest “Sleep and Fly” lounge where guests can unwind and even take a power nap in between flights. Afterward, guests can freshen up in luxurious showers stocked with Ayurvedic spa products, enhancing the sense of relaxation and rejuvenation.

The “Sleep and Fly” lounge is a prime example of how airports are setting new standards for airport comfort, reflecting a growing trend in which airports worldwide are redefining the passenger experience. As travelers increasingly seek unique and enjoyable layover experiences, these airports are taking the lead in offering services that elevate the airport experience to new heights.

Airports as Community Hubs: Enticing Locals to the Airport

While most people who walk through the automatic doors of an airport are on their way to somewhere else, more airports are reimagining what it means to be a community hub.

By transforming airports into hubs for socializing, recreation and even a whole day of entertainment, they are no longer simply places for travelers in transit. This shift in perspective is enticing locals to visit the airport for activities – many of which have nothing to do with traveling.

One example of this transformation that sets the standard for airports serving as the new mall is the Changi Airport in Singapore, home to the Jewel mall. Nearly 300 retail and dining outlets offer a variety of airport shopping center experiences at the mall. Near these airport retailers is a 150,000-square-foot Canopy Park that includes gardens, topiary walks, bouncing nets, mazes and giant slides that create a fun airport experience. While these areas are part of the airport complex, they are located in the landside zone and are accessible to anyone – flight ticket or not.

At the Detroit Metro Airport, visitors have access to two terminals with a DTW Destination Pass, and at Orlando International Airport, you can visit terminal C with a visitor pass. While these passes allow family and friends to surprise loved ones arriving at any of the gates near the terminals, it also offers an opportunity for locals to access a PGA tour shop, gather for a drink at a taproom, get a massage and eat at one of dozens of restaurants.

The distinction between travelers and locals blurs in these locations, as airports are increasingly working to invite everyone to explore a world of social interaction within their confines.

Wellness in Travel: Enhancing Passenger Well-Being

1 in 3 business travelers say the journey itself is the most stressful stage of their trip out of town. And in a post-pandemic world, only about a third of those traveling for business are happy to be back on the road, citing stress and exhaustion for their hesitance.

Even those traveling for vacation often experience stress. More than 90% of Americans say traveling can be stressful.

Many airports are seeing an opportunity to address this stress by enhancing the passenger experience. While comfortable lounge chairs, calming teas and neck warmers to relax tension may sound like pampering tools found in a luxurious spa, they are actually part of the Centurion Lounge space at Houston’s George Bush Intercontinental Airport.

Airports like this one are increasingly focused on promoting passenger well-being by introducing a range of amenities and services that cater to holistic health, relaxation and mental peace. This shift in perspective reflects a broader trend in the travel industry, as travelers seek ways to alleviate the stress and anxiety often associated with journeys.

Other key developments in this wellness-centric transformation include:

Bringing nature into the terminal through incorporating natural elements like dog parks and walking paths.
Offering healthier dining options like at Newcastle International Airport in the UK, where you can find a range of vegan, vegetarian and other healthy food options.
Wellness-centric lounges that offer private sanctuaries to de-stress and take a break from the airport crowds.
Digital gyms like at the Incheon Airport in South Korea, where passengers can participate in interactive visual workouts for different ages.
Wellness services, including flu shots, IV infusions, diagnostic testing and even virtual yoga and meditation services offered through XpresSpa at airports in New York, Phoenix, and Salt Lake City.
Noise pollution reductions that eliminate loudspeaker announcements (and additional passenger stress) at Zurich Airport.

From celebrating local culture where passengers can embrace regional flavors to ensuring visitors are entertained or comforted, airports have undergone a remarkable transformation. With more than 9 billion passengers expected to travel by air in 2024, it’s crucial for airports to evolve and carefully craft elevated experiences so that they are not merely a means to an end.

The way and why people travel are changing. Read about The New Bucket List Travel: https://consultasg.com/redefining-bucket-list-travel/

The Retail Store Prototype is Dead

The Retail Store Prototype is Dead 1440 428 ASG

Once upon a time, when a store launched, there was a flagship on 5th Avenue in New York City that served as the prototype store. From there, a standard cookie-cutter rollout of smaller, but similar, stores proliferated across the country as the brand grew. In fact, it became so cookie-cutter that it led our CEO, Carrie Barclay, to write about the threat of retail homogeny in 2017.

As Carrie wrote then, homogeny is for milk, not for retail. Today, those prescient words are proving themselves again and again.

Time to Toss Out the Recipe Book

There is no cookie-cutter roll out anymore. In fact, without the right data, it’s hard to know where to locate a new retail store, let alone the design that should be implemented.
You might instinctively think New York City is where you need to be, but the data may point to better success in Indianapolis.

Most retailers vying for today’s customers must be able to deliver a hyper-personal, customized experience that is different in every location. The store a brand opens in Buffalo, New York simply cannot be the same store as the one in Raleigh, North Carolina.

Retail Location Strategy and Store Design Are Intertwined

Today’s retail location strategy and store design must be relevant and deliberate. Rollout is a complex dance where every store is now a prototype.

As retailers try to control the cost of building, sourcing materials from the local area is a smart approach, but that means different material boards for each region; styles and materials for stores in the Pacific Northwest will be different from those in the Midwest.

Rather than see this as another wall barring retail growth, brands can embrace the opportunity to use location, materials, and product mix together as a way to provide a unique experience in every store. Not only do local customers appreciate the local feel, but travelers enjoy going into to a store they love in a different location and noticing local or regional differences in the retail environment.

“Don’t go too quickly. Take it slow. You don’t need to go from 0 to 20 stores in a year—especially if you’re just starting out. You don’t have to commit to rolling something out across the entire fleet. Give yourself the chance to evaluate what works and what doesn’t. How does it work for the staff? Customers? What if we can’t duplicate it? Or if you must change it for every single store? Someone needs to be the keeper of the standards and organization, and that’s where we step in,” says Jennifer Crawford, Senior Project Manager at ASG.

Opportunity to Meet Customers Where They Are

Post-pandemic, consumers are shopping closer to home, but they still seek unique and memorable experiences when shopping in person – and they do love to shop in person. These factors are shifting location strategies for retailers, leading to store openings outside of the typical launch areas – and introducing unique store designs for certain neighborhoods and college campuses.

“You can maintain a national footprint and effectively leverage regional and localized design. Bringing these strategies to scale can be a differentiator for retailers who want to thrive, not just survive.”

—Carrie Barclay, President and CEO of ASG

When assessing retail spaces, location data emerges as a distinct form of insight, capable of revealing unexplored opportunities for every potential location. This data explores more than just traffic patterns, structures, and roadways. In addition to all that information, it also reveals extensive demographic data about the consumers living in the area, including median income, home values, and more.

With data-driven insights, brands can test a variety of different prototypes to see what works where. Small-format stores and flagships can benefit from the insights that give a human touch to the brand.

How Are Brands Repositioning?

Retailer solebox is a shoe company in which every location is specifically designed for where it’s located. Their website explains, “The stores all have their own design concept and stand for themselves – what connects them is the carefully curated assortment. The latest sneakers, streetwear from different continents but also some pieces from the high fashion world can be found at solebox.”

Jeni’s is a popular ice cream shop with more than 25+ locations. Travelers love seeking out Jeni’s in the towns they visit because they know they’ll find something different at each location. Jeni’s has developed a winning strategy of choosing a location, like Congress Street in Austin, Texas, and then creating flavors based on the local market. They also appeal to customers’ desire for sustainability and inclusivity by using Direct Trade ingredients, employing a diverse team of people, and working to improve our environmental and social impact.

“People go on first dates at Jeni’s Scoop Shops, people get proposed to, and have their weddings with us…Our customers send our ice cream for Mother’s Day, bereavement gifts, and anniversary gifts. We are a part of people’s lives,” said Chelsea Clements, former director of ecommerce at Jeni’s, to ShopperHQ.

American clothing and accessory retailer Vineyard Vines was founded in 1998 on Martha’s Vineyard by brothers Shep & Ian Murray, who still lead the company. They now operate more than 70 retail locations, including an outlet division, a successful e-commerce business, a domestic distribution center, and expanding corporate headquarters. Shep & Ian’s philosophy that “every day should feel this good” and “if you’re doing what you love, you’ll be successful” is a major part of their brand. In 2020, they reevaluated their location strategy and, working with ASG, discovered that the brand does best along the coastlines.

To compete effectively for today’s experience-driven consumer, retailers must toss out their old playbooks and develop location and design strategies that connect with consumers where they are. The traditional store prototype is dead; now, every store is a prototype that allows the brand to learn more about what customers want and fine-tune their approach.

Read more about ASG’s retail location and insights tool, ASGEdge, which helps retailers examine potential sites using a forward-looking modeling that scrutinizes an extensive list of variables, including proximity to competitors, demographic insights, and consumer behavior.

Medtail is Moving In

Medtail is Moving In 1440 428 ASG

Once one of the largest shopping centers in Tennessee, One Hundred Oaks in Nashville faced a prolonged downward spiral. Like many malls, it enjoyed success as a thriving urban shopping hub with nearly 900,000 square feet of retail space. However, the story of One Hundred Oaks mirrors a broader trend seen across America, where malls struggle and eventually succumb to closure due to changing consumer preferences, community migration, and the rise of e-commerce.

Nearly half of the former mall’s property is dedicated to Vanderbilt University Medical Center’s clinical and administrative support operations with 22 specialty clinics, a pharmacy, imaging center, and laboratory.

The opportunity came at a time when Vanderbilt University Medical Center needed to expand its services to keep up with patient demand. Despite the unconventional nature of the location at the time, the transformation of the One Hundred Oaks site made sense. It was just four miles away from downtown Nashville—creating a medical space at a time when there was a demand for accessible health care.

With an aging Boomer population, increased healthcare demands and shifting consumer preferences, it’s no surprise that repurposing retail space has become a strategic necessity. It has created a dynamic landscape that continues to evolve as both the health care and retail industries face unique challenges.

medtail

Meet Medtail

Referred to as “Medtail,” this transformation within retail stems from healthcare tenants moving away from expansive hospitals and independent structures to more accessible locations to deliver in-person services that cannot be accessed through online platforms.

And these healthcare services aren’t only the vision centers, dental clinics, or urgent care facilities you typically see occupying former malls, strip malls, and other commercial spaces. Health and wellness providers of all kinds—therapists, sleep clinics, dermatology centers, and even university medical systems, as we’ve learned—are playing a pivotal role in revolutionizing the healthcare real estate sector.

Today, major healthcare systems, including the University of Rochester, are embracing this trend. The university constructed a 350,000-square-foot ambulatory orthopedic facility at The Marketplace Mall site in Henrietta, New York. The $227 million project—the largest offsite project the university has ever undertaken—will include an outpatient surgery center and a physical therapy space.

Similarly to the former One Hundred Oaks space, the University of Rochester project is an example of how new life can be breathed into an unoccupied retail space—the outpatient surgical center is a former Sears store—by converting it into a space that meets the country’s growing demand for more healthcare infrastructure.

At a time when a healthcare worker shortage and endemic COVID-19 are making the outlook of the healthcare industry less clear, one trend is evident: There is a dire need for more healthcare infrastructure. And that infrastructure may look different than expected, but it’s transforming the way we access medical care.

The Face of Medtail

Successful Medtail businesses have a keen awareness of the demand for accessible healthcare solutions. These setups strategically position healthcare services in high-traffic areas, making medical attention conveniently available where people already frequent, redefining the accessibility and approachability of healthcare.

A Tether Advisors survey found that nearly 80% of private equity, commercial real estate, and retail healthcare respondents believe Medtail investment will increase. You don’t have to look far to see proof.

  • VillageMD and Walgreens are opening of nearly 600+ full-services doctors’ offices. The clinics, located inside Walgreens pharmacy locations, will staff more than 3,600 primary care providers. The company says at least half the locations will be in medically underserved areas.
  • In Winona, Minnesota, a once vacant Kmart now serves as a primary care clinic for Gundersen Health System. Vacant since 2014, the building now houses several medical specialty offices, including family and internal medicine, pediatrics, women’s health, imaging services, occupational therapy, and an eye clinic.
  • About four hours north in Duluth, Minnesota, developer Kraus-Anderson converted a former Younkers department store into an adult and pediatric therapy facility for Essentia Health. The 45,000-square-foot facility includes gym spaces, treatment rooms, and spaces for rehabilitation psychology and support groups.
  • After an economic downturn during the pandemic, the Good ‘N Plenty restaurant closed in Lancaster County, Pennsylvania. Well Spring Care Inc. purchased the 8.5-acre property in 2022 to convert the structure into a 24/7 medical clinic for the Amish community.

Research shows that nearly 20% of retail space is now leased by medical providers, up from 16% in 2010, and it shows no signs of stopping.

What’s Driving Medtail?

What’s behind this surge in utilizing retail space for medical services? One of the biggest key drivers is convenience.

While convenience may mean proximity to one consumer, it may mean avoiding enormous hospital campuses to another. A vast majority of hospital and health systems say they expect a continued increase in outpatient volumes through this year and beyond. In fact, 95% of health leaders surveyed in the Guidehouse and Healthcare Financial Management Association report say outpatient volumes will increase this year alone, and 40% expect jumps of 10% or more.

While many patients may prefer to bypass navigating through complex facilities to find a physician or healthcare specialist, these statistics also beg the question: Is there even enough room at current healthcare facilities to accommodate rising patient numbers?

Small communities in remote areas also once had little access to medical facilities, with patients forced to drive dozens of miles to see a specialist. With Medtail’s rise, rural patients are now seeing more options available to them.

There has also been a shift in how healthcare has embraced preventative wellness, recognizing the importance of proactive measures and offering services that empower individuals to maintain their health and well-being before issues arise.

Look no further than Dollar General to illustrate this transformation. Not to be left in the dust by Medtail leaders Amazon, CVS, Walmart and Best Buy, the discount retailer created a healthcare advisory panel to assess opportunities in Medtail and healthcare under its DG Wellbeing brand.

Earlier this year, Dollar General began teaming up with DocGo, a mobile health and transportation service provider, to pilot three mobile health clinics. Large vans in three Tennessee store parking lots now offer customers basic, preventive, and urgent care services, as well as lab testing to reach underserved populations in high-traffic areas.

Malls experienced among the highest vacancy rates in the fourth quarter of 2022, with an average rate of 8.7%. General retail locations fared much better at just 2.5%. The number of empty office buildings looked even more bleak, with a record 963 million square feet of office space unoccupied in the United States at the end of the first quarter of 2023.

Commercial leasing agents may feel like they have their work cut out for them. Yet reusing underutilized retail space offers a glimmer of hope and opportunity in these changing times. Opening retail spaces to health and wellness businesses can not only bring new life to empty storefronts while also tapping into the growing demand for accessible medical services.

Incorporating Medtail is just one way malls are transforming to reflect consumer behavior. Learn about an exciting new chapter for the modern mall.
Retail Location Data

Make the Right Move with Retail Location Data

Make the Right Move with Retail Location Data 1440 428 ASG

In the retail industry, where competition is cutthroat and every move matters, the right location can be the ultimate arbiter of success. Yet, astonishingly, many ambitious retailers fail to recognize the untapped potential and invaluable insights that retail location data offers. 

We get it. It’s easy to get wooed by a vacant retail space in a trendy neighborhood or an open location that has high foot traffic at first glance. But ignoring valuable insights before making a decision can lead to missed opportunities and potential pitfalls.

Empowered with retail store location analysis, retailers can strategically select a site that provides the best opportunities to achieve objectives and maximize profit potential. 

But what kind of information is useful in determining the right location for your retail business so that you can make the best decision for long-term success?

A Data-Driven Approach to Evaluating Retail Locations

In a dynamic marketplace, retailers must stay ahead of the curve before they ever even open. Harnessing the power of data and leveraging it to make informed decisions about where to invest in real estate is critical in today’s competitive retail landscape. 

But what exactly is location data, and how can it help your business? On a macro level, location data refers to information that indicates the geographic position of places, people or objects. While location data can provide details like latitude and longitude coordinates or direction of movement, this information can also provide valuable details like patterns, trends and even historical information that can help businesses make important decisions. 

For example, this type of data is widely used in targeted advertising. By analyzing location data, businesses can understand the behavior and preferences of their target audience in different locations, enabling them to tailor their marketing campaigns accordingly. 

Location data can also be utilized in supply chain management, helping businesses optimize logistics, track shipments and improve overall operational efficiency. By analyzing historical location data, businesses can identify patterns and trends, optimize routes and reduce delivery times, ultimately saving costs and enhancing customer satisfaction.

When evaluating retail spaces, location data is a specialized type of intelligence that can unveil hidden secrets and untapped potential of each possible storefront. The data isn’t only about roads, buildings and traffic patterns. Location data can unveil who lives in an area, their average incomes, the types of homes they live in and more demographic details. 

Thanks to advances in location data, retailers can now explore potential locations by leveraging sophisticated analytics and predictive modeling that analyzes a wide range of factors like competitor proximity, demographic information, and consumer behavior.

Retail Location Data

Key Data Points when Evaluating Locations

A retail store location analysis involves examining several data key points that include:

  • Demographics: Beyond population size and income levels, savvy retailers now delve into the nuanced intricacies of the community. They unravel the aspirations, values, and lifestyles of potential customers, tapping into the emotional connections that drive purchasing decisions.
  • Competition: Competition is no longer just a hurdle to overcome. It’s an opportunity for collaboration and differentiation. Retailers armed with this new mindset embrace the strengths and weaknesses of their counterparts, crafting innovative strategies that set them apart. By harnessing the power of partnerships and symbiotic relationships, they create unique experiences that resonate with customers on a deeper level.
  • Foot traffic: Foot traffic analysis evolves into an art form, a delicate dance between prediction and anticipation. Retailers move beyond static numbers and tap into real-time data, understanding the ebb and flow of customer movements. By embracing the patterns of time and space, they strategically position themselves to intercept the ever-changing currents of consumer traffic.
  • Accessibility: Accessibility encompasses more than physical proximity. Retailers now navigate a complex landscape of convenience and connectivity. They reimagine the concept of accessibility, exploring parking availability, public transportation integration, and the interplay of digital and physical realms. By seamlessly blending the virtual and brick-and-mortar experiences, they become beacons for modern consumers.
  • Cost: Many retailers struggle with achieving a delicate balance between investment and potential returns. It’s no longer a straightforward calculation. Visionary retailers consider the intangible assets and the value they bring to their chosen location. They weigh the cost of leasing or purchasing against the transformative power of their unique offerings, creating a new formula for success.

In this era of retail reinvention, the evaluation of retail locations transcends the mundane checklists of the past. It requires a fresh perspective that relies on a retail store location analysis, embracing collaboration, and tapping into the pulse of the community. 

Retail Location Data

Consumer Migration Trends to Keep an Eye On

Another essential piece of data retailers should consider are the latest consumer migration trends. Consumer migration trends in the context of retail locations refer to the patterns and movements of consumers in terms of their residential locations and preferences for shopping destinations. 

These trends can provide valuable insights into where consumers are moving, how their preferences are changing, and how retailers can adapt their strategies to align with these shifts.

Consumer migration trends can be influenced by a variety of factors, including changes in population demographics, economic conditions, urban development, and lifestyle preferences. 

For example, a neighborhood or city may experience an influx of young professionals, leading to a rise in demand for trendy boutiques and upscale dining options. On the other hand, suburban areas may witness an increase in family-oriented retail establishments as more people move to these areas for a quieter lifestyle.

In our hometown of Columbus, Ohio, community leaders and businesses are leaning into the concept of developing mixed-use spaces in the East Franklinton neighborhood, which is adjacent to downtown, and experiencing a rebirth into a trendy, more progressive area. This area is seeing more young professionals move in just as the business district is developing Gravity – a mixed-use space that caters to entrepreneurs, artists, and other social innovators. 

By analyzing consumer migration trends, which can evolve over time, retailers can identify emerging markets and potential growth opportunities. They can adjust their expansion plans, allocate resources effectively, and tailor their product offerings to meet the needs and preferences of the target consumer base in specific locations.

The Right Location for Long-Term Success

Whether you’re a retailer looking for the right location to jump-start or expand your business, you can significantly benefit from using data to inform the decision-making process. 

Yet knowing how to obtain this data and then use it to make an informed decision can be challenging. Retail location analytics technology platforms can offer a tailored approach to generating real estate data with the goal of empowering clients so they can make confident decisions. 

When choosing analytics technology platforms, look for qualities like:

  • A user-friendly interface that is designed to simplify the analysis and visualization of data
  • Modeling capabilities that leverage historical data and market trends to forecast the potential success of a retail location
  • Integration capabilities that allow seamless data integration from multiple sources, such as demographics, foot traffic, and competitor analysis
  • Advanced geospatial analysis tools that enable businesses to understand the spatial relationships between different retail locations, competitor proximity, and customer density
  • Real-time data updates and monitoring features that provide up-to-date insights into consumer behavior
  • Data security and privacy measures that ensure the protection of sensitive information
  • Customization options that allow businesses to tailor the platform to their specific needs or metrics

By leveraging advanced analytics and artificial intelligence, businesses can make strategic decisions that align with their target market, mitigate risks and capitalize on growth opportunities. 

To learn more about how a retail data platform can help businesses, check out ASGEdge.

Connected Wellness: Healthcare as a Retail Opportunity

Connected Wellness: Healthcare as a Retail Opportunity 1440 428 ASG

The pandemic impacted the healthcare industry much the way it did education and retail; it helped accelerate technology out of necessity. Not only did the wearable device industry grow, but our idea of what health care can look like has changed considerably too. 

Now, we log in to our computers to talk to our doctors rather than spending time in waiting rooms; we upload our own health stats from our wearable devices rather than having a nurse take our blood pressure and pulse. In a world now reliant on self-service connected wellness, the healthcare industry is ripe for evolution. Here’s a look at how retailers can take part in the health revolution and what is driving changes in the industry.

What’s Reshaping Healthcare?

An aging population – According to SeniorLiving.org, “From now until 2030, 10,000 Baby Boomers each day will hit retirement age. Millions will begin to officially retire, collect social security checks and go on Medicare. Other Boomers will keep on working either out of financial necessity or out of some less tangible need like identity and self-worth.”

Telehealth convenience – Due to the pandemic, technology has advanced rapidly in the healthcare space out of necessity. 

“While the surge in telehealth has been driven by the immediate goal to avoid exposure to COVID-19, with more than 70 percent of in-person visits cancelled, 76 percent of survey respondents indicated they were highly or moderately likely to use telehealth going forward, and 74 percent of telehealth users reported high satisfaction,” according to McKinsey’s 2020 Healthcare Report.

The wearable trend – It isn’t so much about the wearables as the data. Consumers have access to their own medical data more than ever, which allows them to be more proactive in caring for themselves.

“With 76% of adults age 50 and older indicating a desire to age in place, voice-activated tools, such as home assistants and home health-care technology (emergency or virtual care) are relevant potential purchases for them. If offered a choice, over half (53%) would prefer to have their health-care needs managed by a mix of medical professionals and health-care technology,” according to AARP.

Creating New Health and Wellness Experiences

Today’s retail consumers want personalization and convenience, and health and wellness retailers have an incredible opportunity to deliver high-quality, personalized, and convenient care to consumers. Doctors’ offices can learn how to create a patient experience that earns loyalty and satisfaction by looking to retailers’ offerings. 

Like retail, medical providers must customize the entire experience—patients want to have access to information, manage their own care, choose whether they come in to see the doctor or have an online appointment.

Think of patients as customers who want to have a consistent experience no matter how they choose to engage. If they chat online with a nurse, they expect the nurse to have the same information the doctor would if they were in the room with the patient’s medical file. But more than just consistency, patients are looking for ways to be more proactive in managing their own health.

Retail Health Clinics

Since the early ‘90s, when retail health clinics began opening, consumers have benefited from—and come to expect—the ability to seek non-emergency medical care outside of business hours. It’s clear that consumers want the same kind of convenience with their medical care that they receive in other areas of their lives. Healthcare providers who offer convenient, local care are not only popular among consumers but also are expected to see major growth. 

Self-Service Healthcare

As a multitude of wellness wearables, connected health devices and apps are developed, there could be space for an Apple Store-like offering for a health-care device shopping experience akin to the Genius Bar. 

Empowering consumers to manage and monitor their own health could eventually mean they can use a wearable to obtain information, like an EKG on the go. That could free physicians to focus on treating patients in need while simultaneously giving more people the power to be proactive about their own health.

Health Meta—Taking Telemedicine to the Next Level

Industry watchers’ speculation about potential partnerships between retail and medicine is exciting. Think about existing retailers like CVS and Walgreens, who already provide vaccines, fill prescriptions, and offer blood pressure screenings. What if they were able to extend those medical partnerships to create a one-stop telehealth shop? The future could see patients who meet with telehealth doctors in Walgreens or CVS for proactive screenings, upload their data from their wearable devices and do a little shopping while their prescriptions are filled. 

Incorporating Health and Wellness into Retail Design

Incorporating health and wellness into retail spaces can also enhance the consumer experience. Healthcare retailers can win customers by offering wellness products in-store and providing wellness experiences, such as massage chairs, meditation rooms, or spaces to host conversations on wellness topics.

“It’s not just about a breadth of product options, it’s about continuous wellness support for the consumer’s home, workplace, workouts and lifestyle. Create dedicated sections for healthy morning rituals (smoothie makers, lunch boxes, yoga mats), daytime products (working, running errands, exercising) and evening needs (sleep aids, organic cotton sheets, dream journals),” according to Medallion Retail.

As innovation drives the health and wellness revolution, design will take center stage. Design impacts the patient experience, drives patient retention, and enables health providers to empower patients to be more proactive about their health. 

The possibilities are endless.

Layered Construction: The Challenges in Retail Design

Layered Construction: The Challenges in Retail Design 1440 428 ASG

Opening a new store is essential, whether a brand is opening their first or their hundredth. A new store builds excitement, embodies the relationship between the brand and their customer, and showcases what’s new.  Those brands that choose design-driven concepts have the advantage to ensure a unique experience that also performs in the marketplace. So imagine the frustration and expense, both in capital and sales, that occurs when store openings become stalled at every turn. 

The World Has Changed.  

The variables that drive retail design have changed dramatically. And it’s not just labor shortages and supply chain issues; every step, from location decisions, lease negotiation, early concept design, through to how one structures the build team can now be a challenge and needs to be considered more thoughtfully as a whole than ever before. 

“The complexity of the system eats itself alive if one part fails,

explains Ed Hofmann, Partner of Design and Strategy at ASG-Chute Gerdeman. “We find ourselves navigating decisions that spread across multiple layers and choices – literally as an extension of the Brand’s in-house group.  For instance, the ability to move with real ‘speed’ is now contingent on the ability to navigate thru 10 – 12 decisions at once, supported by only partial information.  You don’t know everything you need to know, so we are more and more relying on instinct, strong back up plans, and our relationships to move at pace.

Vendors are wanting more up front, work is taking longer, so we are value-adding where we can, for instance, helping clients on the tenant negotiation side to suspend leases or postpone payments due to uncontrollable delays. We place a lot more emphasis on streamlining the work leading up to the construction so that the build can go as efficiently as possible, such as separating the interior and exterior builds if we must – it creates 2 permitting tracks, but it allows work to continuously move forward, rather than being totally stalled.”  

Clients Crave Control

Clients know what they want for their store designs, but they are frustrated, simply by the lack of control. Delays are increasing due to factors out of the control of both the agency and the client. These delays don’t just add to frustration but increase spending on construction and payroll. Delays in opening lead to lost revenues. 

Neither clients nor agencies can defeat the supply chain, but the situation is causing clients to lose confidence not only in the agencies with whom they work but with their own internal teams and their vendors as well. And vendors, who are either protecting themselves or simply unable to move quickly enough due to the supply chain, are driving up wait times and increasing costs.

“It used to be you got to choose 2: good, fast, or cheap….but now it includes a 4th variable: just getting it done, and you’re allowed only one mistake,” says Hofmann.

Layered Construction in Design

On the execution side, layered construction is becoming more common to help overcome the challenges of supply chain and labor issues. But these challenges aren’t just happening with the storefront. A retailer may not be able to get the correct fixtures or all of the fixtures they need, so a layered approach is being used to help keep the client moving toward opening. 

Clients may be able to have some of the fixtures installed and use alternates for the rest while they wait for the remaining fixtures. They’re making do with what they can get – literally buying things off the shelf, at second-hand stores, or recycled from other locations as placeholders until the real elements arrive. 

For example, if the space has been designed with certain color-themed rugs that you can’t get right away, they find something that works, place it in the store, open the store, and then replace it when the actual items arrive. And it’s not just rugs – it’s light fixtures, window glass, paint colors, display tables, shelving – it could be anything. Now imagine the scale of that when it is multiple locations or multiple elements. Just to get the store open, the design team might have had to get fixtures at West Elm, Arhaus® Outlet, Wal-Mart, or even Amazon, as the first layer and then later, come back and add in the desired elements. 

Managing the Customer’s Experience 

This obviously isn’t the optimal approach, because the design is part of the experience for customers walking into a newly-opened location. In order to manage this “layered” experience will require finesse and transparency. So how the retailer positions the design choices they make will influence how it is received by consumers. 

The key to a successful layered construction approach comes down to closely following the brand intent, that powerful story, with thoughtful, perhaps temporary substitutions, back up plans and complete transparency with the client and often the end consumer.  The relationship between Brand and the people that love them is paramount – it’s our job to protect that and find a way to go above and beyond, delivering unique and powerful connections, sales, and memorable experiences. 

An Era of Layered Construction

An Era of Layered Construction 1440 428 ASG

It’s tough to be a retailer trying to open new stores right now. Everyone is experiencing high costs, lack of materials, logistical issues, and labor issues. One of the hot topics at the ICSC convention this year was the idea of layered construction. Layered construction allows the retailer to open sooner, albeit not in the ideal state. Layered construction is the outcome of more than two years of pandemic-related supply chain and labor shortage issues that show no real signs of letting up any time soon, which have only been exacerbated by the war in Ukraine.

What Is Layered Construction?

Layered construction is an approach to launching a new location in the midst of all the construction industry challenges currently besetting the industry. It can take much too long for a brand to realize the ideal design for a new location due to shortages or wait times for materials, labor, and partner resources, so they sacrifice or alter the design to help facilitate progress towards opening. This can look like many things, but basically, it means implementing a new prototype in layers. For example, a store has a new, beautiful storefront design, but the design requires certain materials which are not accessible for 22 weeks, despite sourcing locally or looking for custom-made solutions. Waiting 22 weeks for the materials isn’t feasible when the store needs to be open for customers now, so the design is built in layers. Often, this means creating an alternative to the prototype that can be built immediately, then returning later to update with the correct materials when they’re finally available.

Drawbacks of Layered Construction

For retailers, the design of a location is a significant piece of the branding. By opening without having the design elements in place, they risk losing that all-important customer experience element that drives loyalty and return visits. However, this is the world everyone is living in right now. While it adds complexity to the construction and design build, it’s important to move forward, even though there may be a slower response to what should be a great store experience.

Even with these drawbacks, because labor and supply chain issues are having such a significant impact on construction schedules, retailers who want to open more quickly are using a layered construction approach to be able to open their doors to consumers even before the elements of their retail design are complete. It’s not a perfect solution, but when handled properly, it can be a way for retailers to more quickly.

Processed Have Changed

Processes have changed dramatically, and because most of these things are completely outside the control of the agency and the client, it becomes a matter of adjusting to the changes, communicating them effectively, and adjusting internal processes to accommodate the changes. For example, permit times have doubled in the last year.

“Speed is no one’s ally”

explains Liz Seitz, ASG’s Store Planning and Construction Leader. “What used to be a 6-8-week timeline, is now 20 weeks in some scenarios.” What agencies must do to help assuage the frustration for clients is to perform due diligence and organize everything prior to construction to make the process quicker and more efficient to execute.

Agencies must be vigilant, keeping their eye on the swiftly changing environment. “As soon as one lever opens up, another one, down the road we never expected, shuts,” says Seitz. Sometimes, Liz explains, it’s important pump the brakes earlier- talk to vendors and ensure construction schedule will align for everything to come along as scheduled.

“Companies will do anything to get into their space,” says Seitz. “They will literally rig their HVAC to make it into their space quicker.”

Globalization is Challenged

For years, the industry has relied on globalization as a solution that delivered cost-effective materials. Now, sourcing materials are part of the challenge. Could anyone have possibly predicted that just as we were coming out of the worst part of the global pandemic that a war would break out? Ukraine may be a small country, but it is pivotal politically and geographically for both food (Ukraine is a major wheat supplier) and oil (most of Europe imported oil from Russia and have stopped because of the invasion.

“None of us expected that after covid, another massive global crisis would emerge,” says Seitz.

Global struggles have a direct effect on US construction in some fashion, and all these factors make it more difficult to consider offshore manufacturing, at least in the short term. Complicating matters is that fewer and fewer people in America can actually put things together.

It’s the agency’s responsibility to have everything organized, to simplify the process and make the job simpler for vendors, contractors, and partners, but that’s far more difficult to do when everything is so much more unpredictable.

Supply Chain Woes

As with so many other industries, the construction industry has been plagued with supply chain issues. These issues are now compounded by a backlog of projects, a new infrastructure bill, and pent up demand for projects that were put on hold during the pandemic. These supply chain issues are impacting every phase of construction, and lead times are growing, exacerbated by the labor shortage in the trucking industry that moves the materials.

Labor Shortage

According to the Associated Builders and Contractors (ABC) organization, the construction industry needs 650,000 additional workers on top of the normal pace of hiring in 2022 to meet the demand for labor. In 2023, ABC says the industry will need to bring in nearly 590,000 new workers on top of normal hiring to meet industry demand. The labor shortage is compounded by a tattered supply chain. It’s not just that there are labor shortages in general. It’s that the labor shortages are hitting blue-collar jobs, so even when the store is finally able to get the materials, they may not be able to find enough people to do the work, whether it’s installing fixtures or painting, or specialized services like plumbing and electric.

Alternative Buildout Matters

One of the wonderful specters we see in retail over and over again is a willingness to be flexible, to switch gears, and to change directions in order to keep moving forward. It’s one of the most invigorating reasons to be in this industry. There are many creative and innovative options rising to the forefront to make it easier to complete construction as expected.

“Just as we’ve seen new store formats or logistics solutions in response to the pandemic, businesses are becoming more adaptable and flexible overall in response to a new normal. Those that are prepared to make the most of this will benefit in the long run if any other supply chain issues arise.” said Tom McGee, president and CEO of ICSC, in an interview with Costar.

Some of the alternatives being considered include:

3D Printing

3D printing is becoming an innovative way forward in retail design construction. There have been entire buildings manufactured from 3D printing, and it’s offering retailers who need to open sooner a way of moving forward without losing all the elements of their design. According to Construction Dive, 3D printing is more cost-effective and projects can be completed much more quickly.

Using Different Materials

Even though lumber prices are starting to fall, the overall cost of construction remains higher than expected. Many retailers are seeking out alternative materials to be able to complete their projects, whether for construction or for interior design elements.

Local Sourcing

There has been an increase in demand for materials manufactured in the U.S. in order to shorten the supply chain. While this may not be a permanent solution to the issue, in the short-term, it allows construction to move forward with both construction.

Prefab

Robins & Morton makes the argument for prefabrication to ease the supply chain issues, reduce costs, and overcome labor shortages: “Once dismissed by skeptics as a risky idea destined to diminish construction quality, prefabrication is now universally embraced as an industry best practice. Companies in all building sectors are investing in it, clients are intrigued by its savings potential, and the field staff is integrating it in ways that will forever change the traditional supply chain in construction.”

Using Existing Construction

Not only can it be cost-effective to use an existing building and transform it for your brand, but it can ensure you get the location you want. Demand for prime locations is growing rapidly but given the cost and delay in constructing an entire storefront, the investment in retrofitting an existing location can be worthwhile. It can even be inspiring.

At the end of the day, suggests Seitz, you have to set the tone early and understand the client’s priorities. Then use your experience to develop forward-thinking design that is flexible enough to withstand the current industry climate.

Social Segmentation: Connecting & Marketing in Modern Retail

Social Segmentation: Connecting & Marketing in Modern Retail 1440 428 ASG

The data every retailer relied on to connect with consumers before the pandemic must be reevaluated. Today’s consumer – the post-pandemic consumer who was isolated at home for several months, learned to rely on others to choose their groceries and deliver them, and refurbished their homes while shopping online – are not the same consumer they were before the pandemic. And more than ever, demographics are no longer an accurate predictor of consumer behavior on their own. Consumer behavior crosses gender and generational lines in ways retailers have never seen before. As we think about analytics and strategy, fully understanding a consumer requires demographic, psychographic, and social analytics. In fact, social segmentation has become an influential piece of the puzzle.

According to Synchrony, “In a world where consumer behaviors have been turned upside down, businesses have to rethink what loyalty looks like — and create new paths for building and maintaining customer loyalty for the long term. Smart brands are on it: finding ways to adapt technology, social media and other tools for the current environment while still leaning into the human elements of incentives, rewards and personal connections that sustain loyalty over time.”

Social as Part of the Shopper Journey

Rachel Lloyd of Green Room discussed the social retail trend in Retail TouchPoints:

“…despite the fact that most customer journeys start on social media through product discovery, there will always be a huge desire for people to experience brands in real life. Humans have an inherent desire to come together and connect in social settings. Yes, the rules of retail are changing, but the human needs and desires that retail fulfils are not.

But in order to survive, the store’s connection to the brand’s wider digital ecosystem is now absolutely vital to ensure that a dialogue is maintained long before a customer goes in-store and continued long after they leave.”

So as retailers find new ways to “adapt technology … while still leaning into the human elements…” social media rises to the forefront of the new way to not only connect with customers but learn about them. Consumers are turning to social media more than ever to explore and connect with brands. The search for and discover of products online fulfills a sense of adventure for consumers – it’s like being on a quest. And consumers are eager to share their discoveries and take pride in being the first to know about an unknown brand.

So while most consumers still want that in-store experience, for brands to get consumers to walk through the doors, they need to be accessible on social and paying attention to what their customers want. In other words, even as retail continues to change, the need for human connection and in-store shopping isn’t going away. Social retail is the connection brands need – and the way forward for more intelligent marketing.

The Need to Move from Demographics to Social Segmentation

Retailers currently have an enormous opportunity to connect more authentically and more effectively with their customers. In combination with actual physical shopping behavior and historical data, brands have an opportunity to leverage social sentiment to guide how they move forward. In fact, a social view is critical now to form a complete picture and guide retail strategy. By incorporating social listening and social segmentation, it’s possible to gain a more holistic picture of today’s consumer and how they’re interacting with your brand.

Moving Beyond Demographics

Retailers have historically lumped customers into targeting groups based on demographics. Messaging and advertising, maybe even product mix, became based on age and generational characteristics. People of a certain age were in specific stages of life. 20-somethings were starting families and buying homes. 30-somethings were making home improvements and raising families. 40-somethings were thinking about things like investing and insurance. 50-somethings were becoming empty nesters, focusing on travel and retirement planning. It was concrete, and everyone was following along with their age group in terms of life stages. Now, we have 80-year-olds graduating from college and 40-year-olds having their first child. Millennials aren’t even thinking about buying a home until they’re in their late 30s – if at all – and consumers across all demographics are spending their dollars with brands and companies whose beliefs and behaviors align with their own.

Benefits of Social Segmentation

In building the case for social segmentation as a strategy for better consumer engagement, consider these statistics:

  • 77% of consumers say they are more likely to buy from a brand they follow on social media over one they do not (Social Media Today)
  • In 2020, over 3.6 billion people were using social media worldwide, a number projected to increase to almost 4.41 billion in 2025. (Statista)
  • 71% of consumers say it’s important for brands to raise awareness and take a stand on social issues. (Sprout Social)
  • Half of worldwide marketers have turned to social listening to understand consumers’ changing preferences during the pandemic. (eMarketer)

In the past few years, retailers have learned to be quick to pivot because of how rapidly consumer sentiment can change. Using social signals gives retailers a deeper understanding of what consumers want – and how they want to buy. Instead of relying on what has happened in the past, a social view provides context around what is influencing buyer behaviors in real-time. Benefits include:

  • Increase Customer Lifetime Value
  • Improved customer engagement
  • More cost-effective customer acquisition
  • Improved omnichannel/integrated experience
  • Significant improvement in anticipating customer needs, wants, and behaviors

How Can Retailers Use Social Segmentation?

Customers are more than their demographics. Social listening allows brands to identify not only consumer sentiment – toward brands and toward social issues they care about – but also can help brands measure what consumers say online against their actual behavior as consumers. And it allows brands to customize and personalize their messaging. For example, if consumers are talking about sustainability, a brand can tailor messaging with social segmentation around sustainability efforts. If they’re concerned with diversity and inclusion, the brand could then create content around the efforts they’re making in DEI. Knowing what is important to customers is crucial to building and maintaining loyalty for every brand.

Brands Doing It Right: Leveraging a Social View to Create Better Experiences

Understanding customers in real-time through social listening and targeting customers based on social segmentation rather than demographics can help brands connect more authentically with their consumers.

Target

Target is so good at attracting customers to their stores that they have their own entry in Urban Dictionary. They incorporate a variety of marketing strategies, an in-store shopping experience that makes people want to be in their stores, and partnerships with brands people love but in limited quantities that create FOMO – the “fear of missing out.” Their social media effectively connects them to their customers and explain that they try to post what their customers want, not what they think they should post. They incorporate user-generated content in their social media and website, from sharing shopping experiences posted by customers to reviews to answers about products on their website provided by users.

Sephora

Sephora uses a variety of social listening tools and social segmentation to reach their customers. They’ve recently been highlighted by Wall Street Journal for how they are using social media to share their purpose. In the interview, Suzanne Kounkel, CMO of Deloitte US says, “Organizations are seeking to demonstrate to all stakeholders—from customers and employees to partners and investors—why their companies exist and how they make an impact beyond profit.”

Gymshark

Gymshark, which we recently named a DTC brand to watch, is in part having success because of their approach to social retail. Not only are they leveraging influencer marketing to turn their brand into a household name, but they are using social listening to more accurately target their customers. Giraffe explains, “Gymshark is a key player in knowing your audience and using social media channels in a hyper-targeted way. For instance, Gymshark owns 3 different Instagram accounts (@gymshark, @gymsharkwomen and @gymsharktrain) all with different goals and purposes.” Maybe conducted an in-depth analysis of how Gymshark used social media to listen and connect with consumers here.


Social Retail Connects You with Your Customers

Social listening provides more accurate and up-to-date information than typical historical data and forecasting. And by using social signals, retailers can more quickly adapt to changing sentiments. Most importantly, however, social signals provide a cross-section of data that moves beyond generational demographics and allows a brand to align with consumers and use social segmentation to deliver more impactful experiences. With the great wealth transfer well underway, there are invaluable opportunities for companies to listen and learn from their customers in new ways.

The Rise of Lease Management Outsourcing

The Rise of Lease Management Outsourcing 1440 428 ASG

A Decline in Institutional Knowledge is Leading to an Increase in Lease Management Outsourcing

Before the pandemic, there were 10,000 boomers retiring every day, taking an enormous amount of institutional knowledge with them. While this has been most noticeable in the healthcare and insurance industries, over the next decade, we’re going to feel it in every industry.

In an article written in 2013 by Dr. Andrew M. Pena, SHRM, he sounded an alarm about the loss of institutional knowledge and its impact on businesses.

“Today, as Baby Boomers prepare for retirement, some Gen. X’ers and many Millennials are not remaining employed in one organization long enough to learn from their older colleagues. As a result, the institutional knowledge, history, and business continuity possessed by the veterans and Boomers might vanish with little or no knowledge being retained by the Gen. X’ers and Millennials. The failure to retain and transfer institutional knowledge could result in a steady increase in employee turnover and further loss of institutional knowledge, translating into higher costs and lower institutional efficiency.”

Fast forward eight years, factor in a pandemic, a significant labor shortage, and more than a year of “The Great Resignation,” and the threat of institutional knowledge losses have increased substantially.

The Generational Divide

Because Boomers have worked longer and are retiring later, Gen X and Millennial employees, in many cases, have not had the opportunity to rise through the ranks as quickly. As Boomers now begin to disappear at an alarming rate, they are leaving behind very inexperienced replacements who have had much less time and opportunity to enter leadership positions. Consequently, these replacements have limited high-level work experience, creating a giant skills gap. The choice to delay having children quickly enough to create future replacements, combined with the shift in attitude about staying with the same company longer than a few years, and the gap and skills shortage will continue to widen.

What Does This Have to Do with Retail?

Retailers often benefit from younger generations working in their stores. Digitally native brands inherently understand what traditional brick -and-mortar brands often fail to realize: The brand is the brand, regardless of how or where the shopper engages with the brand. While operations and other aspects are feeling the pinch on the front end of the talent pool – on the corporate side of retail –a painful loss of institutional knowledge on a regular basis in lease administration – and it is a costly and painful deficit.

Lease Management Is a Negotiation Game that Requires Expertise and Finesse

As experienced lease administrators retire and take with them their considerable understanding of leases, settlement negotiations, and relationship building, their younger replacements simply are not armed with the information and knowledge needed to properly defend contracts and protect their companies. In one instance with a national retail brand, the lease administrator retired. When the new administrator started, he immediately invested in a new system that included a lot of promised bells and whistles. They spent a ton of money on it – and promptly missed a kickout, costing them over $300,000. When we audited the system after taking over, 82% of their expiration dates were wrong.

Why Outsource Lease Management

Outsourcing lease management offers several benefits, including more efficient administration and expertise that saves you money. Outsourcing retail lease management has a measurable ROI. By placing lease administration in the hands of dedicated experts, there is a team proactively seeking opportunities, ensuring you’re not overcharged, and helping maintain compliance.

Lease management is often overlooked as a contributor to a company’s bottom line. But the benefit derived from expert lease management in terms of cost avoidance, negotiations, and credits that can be offset against monthly expenses is often immeasurable.

Outsourcing lease management ensures that you have the best experts handling the second-largest expense item for many retailers. Relying on experts can help transform a game-changing expense item into a hidden profit center.

Increased Efficiency

For many companies, internal lease management is just one of many responsibilities that an employee shoulders, and they often don’t have the time to fully analyze and manage leases. Outsourcing to a company that specializes in lease management can free your employees to focus on the primary duties of their jobs – often allowing the company to realize measurable savings in labor and efficiency.

Expertise

Outsourcing provides your company with depth and breadth of experience that can improve your negotiations and ensure that you do not miss cost savings. Because outsourced lease administrators manage leases across multiple industries and niches, they are familiar with retailers of all sizes, ages, and types. And, they have a finger on the pulse of the industry, staying abreast of and ahead of changes that might impact your costs.

What to Look for in an Outsourced Lease Management Service

When seeking an outsourced provider for lease administration, seek a partner who has:

  • Provided this service for portfolios of all sizes, for retailers that are at the height of success, and for those experiencing their last days
  • Read thousands of lease clauses and has learned to detect the nuance of how they are written.
  • Experience disputing billing errors and demonstrated success in getting revisions for most disputes
  • An in-depth understanding of co-tenancy failures retroactive to previous years
  • The ability to play a key role in obtaining the best possible lease terms for you
  • A demonstrated track record processing billions of dollars in lease-related payments.
  • State-of-the-art technology

What You Should Expect with Outsourced Lease Management

Meticulous Auditing

One of the most essential functions of an outsourced retail lease administrator is auditing. The lease manager should ensure that all your lease documents, dates, and detailed information about your leases for each property as accessible. They should meticulously audit your invoices and conduct regular reviews to ensure you are not overpaying and that all your negotiated concessions are being met.

CAM Reviews

Building operation expenses (CAM charges) are a significant expense and one of the biggest areas in which there can be errors. When you work with a retail lease management partner, they can often save your organization more than what you pay for the service provided.

Preservation of Institutional Knowledge

If you rely on one or two internal lease managers, and one or both leave or retire, it is almost impossible to replace that industry knowledge. By outsourcing to a firm with a specialty in lease management, you get depth of experience without the risk of the loss of institutional knowledge.

7 DTC Brands to Watch

7 DTC Brands to Watch 1440 428 ASG

It’s an exciting time to be in retail. For DTCs, the opportunity to redefine their purpose and connect with customers on a whole new level has led to a surge in DTCs opening physical stores. Here, we take a look at some DTC brands to watch – those that have already made the leap into physical stores and those who may be in the near future.

“Direct-to-consumer, digital-first, pure-play, or whatever you want to call this new breed of breakout brands, for them, the physical footprint is about customer acquisition, building loyalty, and increasing eCommerce sales. Utilizing their online data assets, they’re focusing the in-store experience on a high level of service and brand engagement. With that, traditional retail metrics like sales per square foot are being replaced by new measurements that take into account multiple channels working together.”Chute Gerdeman

Take Note of these DTC Brands

Article – Launched in 2013, DTC furniture company Article grew profits by 45% in 2021 by opening regional fulfilment centers and focusing on last-mile delivery network. “We’ve decided to take final-mile delivery to the next level with ADT [Article Delivery Team]. In-house delivery gives us a tighter feedback loop which helps us iterate on the process and create experiences people look forward to,” said Aamir Baig, Article’s CEO, in a Chain Store Age interview.

Tecovas – Founder, Paul Hedrick turned his passion for good-looking cowboy boots that were actually comfortable to wear into a business that was named by Business Insider as one of the 25 DTCs to watch in 2022. Paul Hedrick, founder and CEO of Tecovas, said in an interview with FN, “Our focus is – and will always be – on building the most beloved heritage western brand in the world, and this round of funding will only help us further drive towards that vision.”

Vuori – With a commitment to sustainability, ethical manufacturing, and community, Vuori is a standout brand for a number of reasons. After receiving an infusion of capital and completing a successful expansion in the U.S., Vuori recently announced plans to expand into Europe with their own physical locations as well as through partnerships with companies like Costwold Outdoor in England. “2022 is going to be Vuori’s biggest year yet, and we look forward to sharing much more in the weeks and months ahead,” Vuori founder and CEO Joe Kudla said in a statement.

Gymshark – Launched by a 19-year old in a garage in Birmingham, UK in 2012, Gymshark’s online presence today is nothing short of remarkable. The company now has five regional offices and was featured in an article last year about their transition to a billion dollar fitness company.

Rhone  – CEO and co-founder Nate Checketts of Rhone was an early visionary in recognizing the importance of developing physical retail locations for his performance-driven clothing and the company has enjoyed growth and success as they expand, being named one of the top 12 men’s athleisure brands in 2022.

Knot Standard – Recognized for their unique blend of fashion and technology, Knot Standard is not only expanding their own physical presence with showroom locations across the country but also selling its technology to retailers to create their own custom clothing offering.

Thuma – Launched in 2018, Thuma is on a mission to revitalize the modern-day bed through timeless design and smart manufacturing. Their success is reflected in the fact that they’ve been named the top bed frame to sleep on by Architectural Digest and Insider.  Thuma has also been named one of the top home and appliance DTCs to watch by IAB. This is definitely a brand to keep an eye on.

As the cost of customer acquisition continues to climb with increasing digital ad costs, more and more DTCs will likely consider new ways of fulfilling the needs of existing customers while also attracting new ones. Strategically located physical locations is a huge opportunity for many DTCs.

Skip to content