Greater Boston has no shortage of vibrant retail options – from historic storied squares, cobblestone streets, carefully planned retail destinations, main streets and the trusty regional mall. No matter the mood or weather, there’s a retail option within reach.
Aside from location and store lineup, what attracts shoppers to one over the other? Retail and mixed-use developers have found that the answer depends in part on lifestyle preferences. In this socially connected, increasingly busy, triple-booked world in which we live and shop in, a retailer must find a way to rise above the noise in order to best connect with its audience.
In Greater Boston, we’re seeing retailers noting the shift from suburban to urban environments, as their customers want to be not only where the action is, but near transit or walkable locations. Whether it is in the form of unique communities or neighborhoods or town centers, they are creating a social scene, or “outdoor living room” – which is more than a place where people shop; it’s also where they live and work.
The prevalence of social media encourages consumers to share, and the retailer better be on the other end. This is not confined to virtual communities, however. Today’s socially engaged consumer is seeking “cool” amenities and lifestyle events to complement the retail experience. We’ve seen this firsthand at Assembly Row where Somerville’s first-ever food truck festival attracted 18,000 people. Other events such as free fitness activities, live music, arts markets and free art lessons in the park are appealing to a variety of audiences.
“Customers are evolving and so must the way in which we serve them,” said Chris Weilminster, executive vice president of leasing at Federal Realty. “We’re seeing our retailers put a high level of priority on customer service satisfaction levels, store events and programs. It is no longer about a transaction; it’s about the relationship that is built around the transaction. Sales are earned now.”
Putting On The Pressure
Consumers want convenience and value but also demand that it comes in an honest, genuine package, where their dollars and feedback are appreciated, and where the retailer relates to them as individuals. The level of organic-expectation put on the local mom-and-pops has put more pressure on national retailers – forcing them to go above and beyond with their marketing messaging and engagement initiatives.
Nike hosts run clubs, Lululemon hosts in-store yoga, Le Creuset hosts cooking classes, and this is a win for consumers and retailers alike. Even shopping center owners and mixed-use developers are keying into the need to provide the right experience on the ground to keep shoppers coming back, while at the same time creating an exciting social environment.
The majority of shoppers are looking for value – strong, quality brands at reasonable pricing. The concept of outlet shopping as “second-hand goods” is becoming passé, as quality retailers are producing their own lines of merchandise specifically for sale in their outlet stores.
Outlet stores are finding their way closer to the urban core in other parts of the country. Riverwalk in New Orleans just opened and the Citadel is located within Los Angeles city limits. But Assembly Row is unique in that it is the first development of its kind bringing together outlet retail with residential, office, a full complement of full-service restaurants and transit, not to mention a waterfront location. Not only is the mix unique, but there’s been the creation of a new urban neighborhood – it’s all about the sense of place and destination, certainly more Main Street than mall, which is why it is attractive to office tenants as well.
“Assembly Row has created what it calls a 360-degree-office experience that includes fitness programs for its corporate clients with its retailers, cooking classes, fly fishing tutorials, and festivals all in the name of experience,” said Joe Flaherty, executive vice president and managing partner of Colliers International. “Mixed-use is how our clients want to experience work and what Assembly is doing helps our clients recruit and retain talent. No one works an eight-hour day anymore – this has to feel more like home than work, and it needs to be fun as much as it is functional.”
Don Briggs is Boston president and senior vice president of development for Federal Realty Investment Trust, developer of Assembly Row in Somerville.
