CINCINNATI–(BUSINESS WIRE)–Phillips Edison & Company (NASDAQ: PECO), one of the largest owners and operators of grocery-anchored shopping malls in the United States, today released its findings on key shopping mall trends that are draw in 2022 as part of ICSC Las Vegas.
Common themes driving this year’s trends are proximity and convenience as retailers across all categories seek easier access to their end consumers. This has led some retailers to evolve or change their real estate strategies to focus on suburban expansion, meeting growing consumer demand as these areas continue to experience strong population growth across the country.
“As cities recover from the pandemic, we have seen suburbanization as a theme continue to play out, supported by strong macro tailwinds, including long-term work-from-home trends and an aging millennial cohort. looking for space to raise their growing families,” said Mike Conway, vice president of national accounts and retail partnerships at PECO. “As inflation and supply chain issues continue to create hurdles, retailers are recognizing more than ever the importance of getting closer to their end consumers, and this is driving many of the trends that we observe today.”
Healthcare providers – who have traditionally been located in medical office buildings and other non-commercial properties – are among the most active in PECO’s portfolio, reflecting their desire to be even more easily and efficiently accessible for patients. . Additionally, vendors such as One Medical, Pacific Dental, Humana and Carbon Health have also recognized the opportunity to leverage outdoor retail storefronts to create an even more comforting and welcoming environment and experience. The “medtail” trend demonstrates the attractiveness of convenience shopping centers due to their high visibility, high footfall and ability to open quickly and efficiently.
When it comes to convenience, a rising tide of quick service restaurants including Scooters, Dutch Bros., PF Changs, Salad & Go, Krispy Kreme, Popeyes and Jimmy Johns are introducing non-food and drive-thru only locations, reflecting strong takeout trends that have emerged during the pandemic. Designed to integrate with mobile ordering and other technologies, these concepts show how innovative brands are quickly adapting to changing consumer preferences and diversifying their portfolios to give consumers more options. These digital-focused locations are also helping to accommodate labor shortages, which continue to present significant challenges for restaurateurs.
Big box retailers such as Petco, Target, Macy’s and Kohl’s, as well as traditional mall tenants such as Bath & Body Works, Visionworks and Pearle Vision, are introducing smaller format stores in outdoor malls to bring them closer to their consumers. Traditionally, these retailers were most often located in larger malls and malls and proximity to shoppers was further away. From these neighborhood hubs, they facilitate access for online shopping, in-store pickup and last mile delivery, helping to alleviate some of the pressure resulting from ongoing supply chain issues.
On the theme of the environment, social and governance (ESG), on which investors and consumers are constantly emphasizing, a growing number of brands of all sizes are reaffirming their commitments in terms of sustainable development. Target and Amazon have both introduced sustainable stores that use less energy than they produce, while Walmart is creating a net zero store in Canada. Additionally, UPS has announced its commitment to achieve carbon neutrality by 2050, Petco aims to increase sustainable pet products by 50% by 2025, and Williams-Sonoma has partnered with the Arbor Day Foundation. to plant 6 million trees by 2023. The Raley’s chain is also taking innovative steps by introducing new technologies and strategies to reduce its carbon footprint, including reducing waste stream, increasing recycling and reducing the use of microplastics.
PECO also noted that retailers are becoming more creative with their use of technology. Grocery chains HEB and Albertson’s have been successful in driving sales through the use of Facebook’s live shopping feature, where consumers can watch a live demo on the social media platform and buy the products used directly in the video. Additionally, following its acquisition of virtual dressing room platform Zeekit last year, Walmart recently announced that the technology is now available to its customers, making online shopping even easier.
“The world has changed so rapidly over the past two years, and yet we have continued to see a level of creativity, innovation and adaptation from retailers that further demonstrates their ability to move with the times and adapt. giving consumers more of what they want,” said Ashley Casey, senior director of national accounts at PECO. “One of the areas that will be interesting to watch over the next few years is how retailers are integrating Web3 and the metaverse into their omnichannel strategies. We’ve already seen companies like Adidas and Gap introduce NFTs, while Panda Express trademarked virtual goods, and Forever 21 opened a virtual store. still in the very early days of this next iteration of the internet, and we’re excited to see how retailers are using the technology.”
This insight is produced by PECO’s National Accounts and Emerging Trends team, which consists of a group of highly specialized rental professionals who track over 400 accounts and actively engage with 150 growing retailers. . This team travels the country meeting brands to learn how they are evolving in order to identify creative ways in which PECO can advance its real estate goals. During this process, the team closely monitors and documents developing trends in various retail categories, including grocery, foodservice, fitness, health and beauty, medical, entertainment and discounts.
This deliberate approach to gathering information has proven extremely beneficial to PECO since the team was formed in 2016. This focus leads to the collection of an abundant amount of data that continuously informs the company’s leasing strategies as well as how, where and when it chooses to deploy capital. . The team’s efforts have resulted in new and stronger relationships with a wide range of innovative retailers who are redefining the retail landscape and customer experiences.
For more from the Emerging Trends team, visit the Phillips Edison booth (#6217) this week at ICSC Las Vegas and connect with the company at instagram, Twitter and LinkedIn. Also, listen Retail Intela podcast series hosted by Mike Conway and Ashley Casey.
About Phillips Edison & Company
Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”) is one of the largest owners and operators of grocery-anchored omnichannel neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically integrated operating platform and nationwide footprint of busy shopping centers. PECO Centers feature a mix of national and regional retailers providing essential goods and services to fundamentally strong markets across the United States. Major CEE grocery stalwarts include Kroger, Publix, Albertsons and Ahold Delhaize. As of February 28, 2022, PECO operates 291 shopping centers, including 270 wholly owned centers comprising approximately 30.9 million square feet in 31 states, and 21 shopping centers owned in two institutional joint ventures. PECO is exclusively focused on creating omnichannel shopping experiences rooted in grocery and improving communities, one mall at a time.
PECO uses, and intends to continue to use, its website for investors, which can be accessed at https://investors.phillipsedison.comas a means of disclosing material nonpublic information and complying with its disclosure obligations under Regulation FD.