2014 State of the Shopping Center
Even in a world where consumers can connect with each other via text in an instant and do their shopping from their couches, people still crave a physical place to congregate, connect and engage. And more and more, shopping centers are a big part of fulfilling that need. So as shopping centers and malls remain prominent in our culture and consciousness, developers and retailers have big opportunities to become the centers of their communities.
No longer just a place to shop, shopping centers are key activity centers in the social fabric of communities, elevating their purpose beyond simply offering an outlet to buy groceries or pick up a new blouse. This concept is nothing new, but implementation to activate communities has been rare.
In this report, we examine:
- Shifts in the shopping center landscape: lifestyle on the rise.
- Shifts in retail formats: think small.
- Brick-and-mortar, e-commerce and m-commerce: Frenemies in the retail space.
Market trends: Young, diverse and urban consumers are the future of retail:
- Consumer deep dive: Hispanic Millennials in San Diego.
- Location deep dive: Understanding market and retail activity to make smarter location decisions.
And what does it all mean?
Shifting Retail Formats
Bigger isn’t always better. Since the start of the Great Recession at the end of 2007, small formats like dollar stores, convenience stores and drug stores have driven retail chain expansion. Of the nearly 17,000 new stores that opened between 2007 and 2013, 36 percent were dollar stores, 32 percent were convenience stores and 21 percent were drug stores.