Retail in Greater Boston is experiencing a shift, and is no longer dominated by as many big-box anchor tenants. It’s no surprise brick-and-mortar stores are adapting and evolving, given the power of e-commerce and an increasing emphasis on experiential retail. Retailer PIRCH, coming to Boston soon, is one example of a company breaking the mold. PIRCH has created what the company calls an “elevated shopping experience” in which customers can visit the showroom to see various fixtures and appliances for the kitchen, bath and outdoors and test-drive them before purchasing. This method has proven to be successful, with customers spending an average of three hours in its stores.
Clearly shoppers are looking for something new. So how can suburban retailers embrace this change? Taking a complementary approach actually gives suburban retailers an edge. Once thought to be dangerous for the bottom line of individual retailers, clustering stores from one industry in one complex has turned out to strengthen these complexes and speaks to the broader change in shopping habits. Here’s a look at how it’s driving success:
A One-Stop Destination For Home Design
Suburban hotspot 3rd Ave. Burlington, a Nordblom development, has truly become a one-stop shop for home and furniture needs. In the past, shoppers would be forced to travel to multiple locations throughout their region to get everything they need when designing and decorating a new home. Over time, the 3rd Ave. Burlington shopping spot strategically gained a Boston Interiors, Kohler, The Shade Store, Mitchell Gold + Bob Williams and Dover Rug, among others, making it a hub for home decor.
John Ferris
Shopping complexes like 3rd Ave. Burlington create an environment where visitors can find everything they’re looking for in one place or allot an entire afternoon to a design and home decor shopping trip. It’s convenient for shoppers, and has helped suburban retailers by drawing customers in and increasing the amount of time spent in the area. The success of 3rd Ave. can also be attributed to its appeal to a similar demographic – shoppers are all looking for high-end furniture and decor – as well as its strategic location. Tactically located at the intersection of Route 3 and I-95, the easy-access road systems are a big draw for consumers and attract from a wider radius around the area.
Restaurants Feed Off One Another
In the past, restaurants would not have considered a location with a number of potential competitors nearby. However, we’re finding that a concentration of dining options – with high quality customer service – can bolster the “wow” factor of a suburban retail destination. For example, some dining options are even starting to offer valet, free of charge. 3rd Ave. Burlington offers this sort of complimentary valet for customers Thursday through Saturday and has proven to be successful, drawing in patrons with this ease and accessibility.
Assembly Row in Somerville has seen great success with this approach as well. Federal Realty’s shopping center has truly created a thriving restaurant scene – visitors have their pick of almost a dozen options, each of which is operating with exceptional and unprecedented volume. With multiple eatery and bar options in a dense area, the restaurants are also seeing increased foot traffic.
Suburbanites Want Variety In Fitness
Having a multitude of fitness options is another aspect of the evolving suburban retail experience. We previously found that fitness operators wouldn’t have wanted to lease space next to competitors, but that attitude has been changing in response to demand. You don’t need to look far to find success stories. At Chestnut Hill Square, SoulCycle and Equinox are both drawing large numbers of visitors. New Hampshire’s Portsmouth Green, owned by Waterstone Retail, features Orange Theory and Cyclefierce with a Pure Barre to come in early 2017 as it builds upon its fitness success. Furthermore, The Kraft Group’s Patriot Place in Foxborough includes a Pure Barre and a boutique spin studio, Rev’d Indoor Cycling, creating roots for a fitness hub.
Assembly Row is doubling down and taking a cue from this trend – the restaurant hotspot will soon be home to FitRow, a new fitness concept that encompasses five different boutique studios under one roof.
Ultimately, developers of suburban retail properties are continuing to find new, innovative ways to meet the changing habits and needs of visitors. Working with tenants who complement one another – from design and furniture to restaurants and fitness – will continue to be vital. We expect to see the model continue to evolve as developers adopt this approach and bring their vision to life.
John Ferris is first vice president of retail services for CBRE/New England.
