According to a report submitted by A.T. Kearney on online trading, the e-commerce industry’s share of the retail pie will increase to one-third of total sales.
In fact, the transformation is so fast that already leading retail stores of traditional brands are planning to shift their strategy on the layout of their outlet. The retail premise owners have also decided to shape up and usher in more food and entertainment along with their optimal tenant mixes.
Michael Brown, author of the A.T. Kearney report titled, “Future of Shopping Centers,” informed CNBC, “Right now we see traditional retail space built for twentieth-century shopping behaviors … now we are in the twenty-first century, and we have to rethink how we use the space to engage consumers. We're starting to see a slow transition."
“Part of that transition is retail landlords scaling back on apparel. American Dream Meadowlands, a massive retail development underway in New Jersey (spearheaded by Triple Five Group) set to include an indoor ski slope and KidZania, is just one example of that,” Brown said.
He also cited other examples that included Simon Property Group that ushered in residential, office and hotel uses to its King of Prussia Mall, at Philadelphia and Westfield on the lookout to introduce a concert venue to its Promenade Mall in Woodland Hills, California.
Brown went on to add, "It's no longer a shopping mall but a consumer engagement space, which opens up a world of opportunities for developers in terms of how they use this space."
The examples living up to this reasoning include Warby Parker. The company commenced online and later shifted to running a fleet of stores. Their retail destinations have less inventory and more service or experiential component.