Speciality Hobby Concepts on the Rise; Experience and Convenience Still Remain at the Heart of Leasing Trends, Says Real Estate Investment Trust PECO.
Phillips Edison & Company (PECO), an internally-managed real estate investment trust and one of US’s largest owners and operators of grocery-anchored shopping centers, released today its insights on the top shopping center trends to watch in 2020 as part of ICSC’s New York Deal Making event.
As the experience continues to drive success, retailers are finding new and innovative ways to make it more fun to shop in-store. Moreover, the increasing demand for custom experiences is leading to a rise in the number of boutique specialty concepts devoted to specific hobbies and activities that target smaller, but highly engaged groups of consumers.
Games Workshop, an Instance of Interest in Speciality Hobby Concepts
PECO points to the expansion of Games Workshop – a manufacturer of miniature war games that hosts painting and modeling sessions for hobbyists – and the proliferation of children’s activities such as indoor trampoline parks and theme parks as well as interactive museums including Play Street Museum in Texas, as key indications of this growing trend.
“What is playing out in shopping centers across America, is that there is a growing market for retailers that appeal to niche interests and experiences. This trend reinforces the fact that people with common interests are eager to gather and engage in activities that allow them to form connections and relationships,” said PECO’s Director of National Accounts – West, Ashley Casey.
Faster Shopping Experience Drives Engagements in Groceries
When it comes to groceries, take-out and shopping for specific items, consumers continue to seek new, innovative options that make the process faster and more efficient. This speaks to a continually growing need among consumers to be able to get in and out of stores quickly, and brands are rising to the occasion.
Hair salons including Sport Clips and Great Clips were ahead of the curve on this trend years ago, introducing apps allowing customers to track the nearest locations and wait times to limit the time they spend in the shop. Now, as online ordering for pick-up of food and products has taken off, retailers are finding new ways to make this experience even easier, which in turn will keep customers coming back.
“In many instances, it’s become less about finding ways to get people to spend more time in-store and more about providing them with a faster way to get what they need. While counterintuitive to the traditional retail model, this helps to drive stronger levels of brand loyalty by increasing the value provided to the consumer,” said Ryan Mitzel, PECO’s Director of National Accounts – East.
These insights were produced by PECO’s National Accounts and Emerging Trends team, which consists of a group of leasing professionals that tracks over 400 accounts and actively engages with 150 growing retailers.
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