Trends and Hot Topics

2015 Shopping Center Trends

by Mike Kercheval

Mike Kercheval -Head Shot

Mike Kercheval

The shopping center industry is thriving thanks to its ability to constantly adapt to new trends and respond to changing consumer shopping habits and preferences. In the next two years, more than 77,000 stores will open in the U.S. In addition to new stores opening their doors (including previously online-only retailers), many shopping centers and existing storefronts will undergo renovations and transformations, expand their omni-channel strategies and adopt new technological services to better cater to the on-the-go, constantly-connected consumer lifestyle .

As the Internet and e-commerce continue to shape the consumer experience, shopping centers and retailers across the country are turning to omni-channel strategies, where mobile, online, and in-store experiences complement, rather than compete with, one another. Retailers will increasingly begin to use physical storefronts not only as showrooms, but also as storage and shipping centers to support their online businesses by offering online ordering and in-store pickup and returns.

According to the International Council of Shopping Centers’ (ICSC) latest comprehensive survey, the omni-channel experience benefits retailers and customers, creating seamless shopping for consumers and resulting in increased sales for stores themselves, with omni-channel consumers shopping three times more frequently and spending 3.5 times more than single-channel shoppers. A Shop Visible study also found that flexible pick-up and return options boost conversion rates at physical stores. Online sales with direct delivery and only remote exchanges typically see net sales of 77%, whereas online sales with in-store returns result in an expected net sale of 95% because of an 18% increase in additional sales.

Yet brick-and-mortar stores aren’t the only ones adapting to new consumer trends and preferences. Many formerly online-only retailers are reverting to the old, tried and true model — the physical storefront. E-tailers are planting roots in order to build stronger relationships with their customer base and hear firsthand about consumer preferences. They are also looking to provide a space where consumers can interact with merchandise: 73% of consumers prefer to try on merchandise or touch it before they buy.

Shopping centers are also leveraging new technologies to personalize consumer experiences and make shopping more convenient. Retailers throughout the country will continue to use beacon technology in 2015, using the technology to track consumers within their stores to formulate purchasing recommendations and offer special promotions. They will also turn to cloud-based offerings to provide more convenience through systems such as Apple Pay.

All in all, 2015 will bring many new changes to the shopping center — including enhanced technologies and physical transformations — and each will be an exciting step to better meet consumer needs and make each trip to the shopping center a more engaging and convenient experience.

Mike Kercheval is president and CEO, International Council of Shopping Centers.