Getting the most out of the retail environment is on many executives’ minds as ICSC Western Conference & Deal Making continues in Los Angeles. Succeeding in this sector requires more savvy and sophistication than ever before as landlords and retailers develop strategic methods for attracting customers and maintaining their loyalty.
Retail owners need innovative approaches in order to maximize the full potential of new or existing retail environments. “Instead of simply expecting tenants to drive traffic in shopping centers, landlords are utilizing promotions, marketing events, technology, and a more diverse tenant mix as points of differentiation,” Richard Rizika, partner and co-founder of Beta Retail, tells SoCal Real Estate.
Some of the strategies Rizika mentions include hosting events with third-party service providers; providing “white box” conditions for short-term installations such as “pop-ups” or temporary tenants that are using the premises for a unique, marketing-driven opportunity vs. a long-term conventional tenancy; cross-marketing promotions of tenants’ services; and monetizing common areas with events and services that can be benchmarked.
Several key components need to be understood in order for redevelopment plans to achieve triple-bottom-line success, Rizika says. For example, the landlord/tenant relationship needs to be collaborative and not combative, and property owners need to create brand identify and not formula-driven projects.
“Placemaking is achieved by understanding the consumer and target audience,” Rizika says, adding that success requires “designing and programming that is tailored to their likes/wants/needs for the place.”
Also, he says, an investment must be made in prop tech to understand consumers on a property level and to track marketing and promotional activities throughout the life cycle of properties.