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Designing Retail in Emerging Markets - You don't normally think of Europe as an emerging market....(More)

Fixing / Repositioning Retail Centers

The combination of internet shopping, discount box retail, and economic downturn has left many retail centers struggling to sustain sales and retail customers - the industry is in crisis-management mode. Every retail center will have a different set of problems. The solution is rarely just a simple leasing fix. Retail in mature markets like the US has become a zero sum game with many retail centers competing for a shrinking pie of customer sales and customer mind share. The realistic solutions are going to be complex and involve both short and long-term strategies. The solution set will evolve from an asset management approach that matches costs and benefits of each potential strategy to ensure that any new interventions produce economic outcomes. But, equally important, it ensures that short-term fixes are designed to support long-term value.

The basis of real estate value in this zero sum market is customer loyalty, customer repeat use, and ultimately, customer brand. The amount of mind share that a center has in any one market will determine how much of the sales dollars are spent in any one location. And, survival in today's market depends on brand dominance - that is, taking sales away from the competitors. Commodity retail is destined to become surplus land. Now more than ever, managing the "asset" depends on solving the customer/brand equation.

Clearly a plan of action will start by finding the right partners who bring a deep understanding of retail merchandising, economics, and design strategy. JRDV has become an expert at partnering with owners to find solutions, both short and long-term. Our Development Services group has extensive experience understanding how to integrate business decisions into the design and planning process. Our projects have included replacing large department stores with multiple tenants, re-imaging and re-branding centers, and transforming public spaces. We have also created strategies for increasing site density and integrating alternate uses including housing, hotels, and offices. JRDV has extensive experience working with city planning departments, redevelopment agencies and regional authorities to manage the entitlement process and to achieve joint public/private project goals.

Customer expectations have irrevocably changed what makes a center successful. And, JRDV has developed a unique understanding of how to reposition retail centers relative to the larger trade-area competition; and how to renew a center's brand.