In Retail, Consumer Experience Is The New Location, Location, Location
There was a time when retail was all about location. Rooted in the mid-20th-century notion that retail follows rooftops, the thinking was that stores belonged near customers. While that seems to still make sense, consider for a moment that consumer behavior is shifting from real estate-based values to meaning-based experiences. While real estate and experiential retail are not mutually exclusive, consumers are not anchored to physical stores the way retailers are. Consumers aren’t waiting for a lease to expire; in fact, spending behavior stands in stark contrast to reports of a retail apocalypse. Stores are closing and well-known names like Barney’s and Toys R Us are in flux, causing uncertainty on Wall Street and 7th Avenue and in the press, but consumers are indifferent to the chaos and spending steadily. In fact, consumer spending has seen consistent growth over the last ten years. Essentially, the so-called apocalypse is a real estate problem, and while it is taking a toll on retailers and their employees, consumers are moving forward. Read more at Forbes.
