As we gear up for ICSC New England, our retail design team has been reflecting on the evolving landscape of the retail market. This industry is undergoing significant transformations due to shifting consumer behaviors that are reshaping retail spaces nationwide. Understanding these trends is pivotal for architects, developers, and retailers as they seek to create compelling environments that resonate with today’s consumers.
Here is an overview of the key developments shaping the retail market today, including placemaking, a rise in suburban retail traffic, and innovations in fast casual design.
1. Placemaking
Placemaking is at the forefront of modern urban development strategies—a concept that involves creating public spaces that go beyond utilitarian needs to foster social interactions and exchange. In today’s retail environment, retailers, developers, and architects increasingly leverage placemaking principles to reimagine the traditional shopping experience, crafting spaces that give consumers multiple reasons to visit retail centers.
Implementing the “live-work-play” concept integrates living, working, and recreational spaces into a cohesive experience that attracts diverse tenants and breathes new life into older retail venues. This approach is pivotal in creating environments that offer compelling reasons for consumers to visit retail centers and malls, enhancing overall foot traffic and tenant diversity.
2. Retailer’s Suburban Shift
Suburban markets continue to thrive, as many companies in the post-pandemic world still use remote and hybrid work models. While some organizations have called their workers back to the office five days a week, many are implementing a three-day in-office schedule or another hybrid work model.
With many consumers traveling to city offices less frequently, there has been a notable increase in visits to retailers, shopping centers, and restaurants closer to their homes in residential areas. This trend has led to a resurgence in suburban retail traffic and, consequently, a decrease in urban traffic. This trend depicts the growing importance of convenience and accessibility in consumer decision-making, prompting retailers to reevaluate their location strategies and adapt to these evolving patterns.
3. Fast Casual on the Rise
The fast-casual and quick-serve segments now lead the restaurant industry in design innovation. Historically, design trends originated in fine dining and polished casual restaurants, eventually trickling down to the other segments. As today’s consumers seek convenience and spaces that enhance their daily lives, the fast-casual segment has become increasingly important, focusing more on the dining experience and transforming into hubs of innovative design. This shift has also led to a rise in smaller infill retail spaces, often anchored by coffee shops or fast-casual restaurants with drive-through and pick-up options.
To explore these trends further and discuss the future of retail design, we invite you to connect with our retail team at booth #413 during the ICSC New England show. We look forward to seeing you there!
Massachusetts
35 Pond Park Rd. Bay 16
Hingham, MA 02043
781-452-7121
Connecticut
8 Wilcox St.
Simsbury, CT 06070
860-264-1624