As online shopping continues to become the focal point of consumers across the U.S., big-box retailers are struggling with the economic impact. In 2018 alone, 15 corporations that were once staples in the retail industry are facing the threat of closure. Large big-box chains such as Sears, Toys”R”Us, and JC Penney are struggling in the face of the changes in consumers’ shopping habits.
Changes in the Retail Landscape
This shift in the market is causing retail owners to rethink their business strategies - particularly in the size of the stores they want to open. Retail shopping centers have been attracting new tenants and smaller specialty stores to fill large empty spaces. The surge of shopping centers in America has slowed with very little growth expected over the next few years. Existing centers are now looking at remodeling with upgrades that attract modern consumers.
Crossroads of Roseville Mall
An example of a mall owner’s response to these challenges was the repositioning of the Crossroads of Roseville retail center. Shingobee Builders partnered with the mall’s owner to construct multiple renovation projects over the course of several years.
Popular outlets such as Lane Bryant, Dick’s Sporting Goods, Jo-Ann Fabrics, and an Armed Services Recruiting Center were all built as infill to replace spaces vacated by big box stores. Remodeling included both interior and exterior construction.
The Current Retail Situation
The trend toward online marketing has skyrocketed over the last decade. The effects of online giants such as eBay, Etsy, and Amazon have played a significant role in the decline of traditional retail models. Businesses that embrace the transition and look for viable brick-and-mortar solutions will continue to thrive.
The current trends include experiential shopping, omnichannel marketing, technology-driven, personalized service, and try-before-you-buy options for customers. These alternatives could keep the retail industry alive.
Current Examples of Shopping Center Improvements
Shingobee has been working with RAMCO Properties since 2017 on upgrades to the Woodbury Lakes retail center in Woodbury, MN. Extensive remodel of parking areas and streetscapes, reconstruction of spaces for new tenants, and addition of the 43,000 square foot Alamo Drafthouse Cinema have enhanced the retail center, providing a new look and new experiences to draw shoppers.
Check out this video of the center’s improvements, taken shortly before the opening of the theater.
At Apple Valley Square in Apple Valley, MN, Shingobee is working with Regency Centers of Jacksonville, FL, to redevelop a space vacated by a Rainbow grocery store. Exterior and interior renovations are being provided to divide the space for three smaller tenants, including an Xperience Fitness center.
The Future of Brick-and-Mortar Retail
Shopping center property managers will continue to demonstrate creativity to fill spaces vacated by retail stores and to attract consumers to their facilities. Shoppers will observe changes in the type of services and products centers will offer. For instance, co-working facilities, fitness centers, restaurants and bars, and pick-up/drop off stores will emerge as the new standard for customers’ experience.
One of the most significant factors that will play a role in the success of the retail industry is the utilization of technology across a broad spectrum of applications.
Mobility will be at the heart of the issue. Autonomous vehicles will impact retail in the next 10 to 15 years, affecting parking, pickup/dropoff, the bar scene, and more. Navigational systems and interactive automation will allow drivers and passengers to make reservations and purchases from their dashboards. Kiosks and digital ordering services will become standard in nearly all retail facilities.
Retail property managers will continue to stay ahead of the changes in consumers’ shopping habits, and evolve as necessary to retain tenants and shoppers.
Construction Service From Shingobee Builders
As construction, sustainability, and project management changes due to current and future industry trends, Shingobee Builders will be at the forefront of innovation that meets the needs of retail companies.
To find out more about the services we offer in the Minneapolis, Minnesota area, call us today at 763-479-1300, or you can message us at firstname.lastname@example.org.