Page 38 - RLI March 2019

RLI RETAIL INSIGHT

Creating Destinations that

stanD the test of time

STEfAN SjöSTRANd, INGkA CENTRES CommERCIAL & dIGITAL dIRECToR
TAkES SomE TImE ouT To HIGHLIGHT How NEw ANd upComING
dESTINATIoNS SHouLd AdApT To CHANGING CoNSumER wANTS
ANd NEEdS IN oRdER To CREATE A LoNG-LASTING dESTINATIoN THAT
CuSTomERS wILL wANT To CoNTINuALLy RETuRN To.

t’s no secret that developers, owners and managers of retail In the quest to create timeless destinations the retail element
and leisure assets have to adapt to meet changing consumer is increasingly only one part of the puzzle. Out-of-town locations
behaviour. With online retailing having a growing impact, aiming to stand the test of time should put a greater focus on
Ibricks and mortar retailers are increasing focus on a more placemaking, with public spaces that promote health and wellbeing.
experiential offering. But with such fast-paced change playing out, In Russia, we interviewed 110,000 of our MEGA mall customers
the real challenge is creating destinations that are not only able to to understand their demands and respond to them with physical
succeed today, but tomorrow as well. experiences that can’t be replicated online.
As our sector invests to adapt, and moves away from a traditional This led us to introducing MEGA Parks, state of the art outdoor
approach, how do we create retail-led destinations able to stand spaces, designed to meet consumer demand for leisure, entertainment,
the test of time? Places that will remain popular and relevant long and social spaces. The parks also include areas for sports, work outs,
into the future? One thing is for sure - close interaction with local ice rinks, playgrounds and green spaces for walking and meeting
communities, customers and tenants is important. Understanding friends. They also have large event spaces where we can hold events
and following their needs to design and develop destinations with our tenants, local community groups and other partners.
around them, helps ensure these places will attract high numbers of Addressing the digitalisation of retail is another fundamental step
visitors long into the future. in building destinations that will remain relevant – after all, disruptive
Whether you are building a new asset or upgrading an existing technology is at the heart of the change sweeping through our industry.
one, evaluating individual community needs should always be the The key lies in embracing digitalisation, not seeing it as a threat. Remember,
starting point. Concepts must be tailored to local demand, depending technology enables us to collect data and be more in touch with and closer
on the characteristics of the specific town or city. Destinations offering to our customers than ever before. Landlords can use it to help tenants
meaning to local people have a greater chance of remaining relevant. understand their customers better, and connect with them in a way they
It sounds simple, but incorporating a cinema, if there are already four haven’t been able to before. Customer journeys can be simplified too, with
others within a two mile radius may not have the desired impact. better payment solutions, loyalty programmes and hands free shopping.
Similarly, a playground in an area where the surrounding demographic Physical destinations that embrace technology are immediately more
comprises more adults will resonate less. Every city is different, and relevant to consumers as it is central to their lives. We are calling our
we are always asking, what can we bring that will make people Wuxi LIVAT mall in China a ‘digital mall’ because of the services it offers.
come here not just to shop, but to socialise, work and enjoy new Its digital features are based on Wechat, China’s largest social media
experiences. What will engage people living there? platform, with loyalty programmes that encourage conversations with
Finding the right answers can be time consuming, but it’s necessary our customers via WI-FI and point of sales. But of course technology
work. It involves a lot of research, but just as importantly, developing changes quickly, and to stay relevant asset owners must pay attention
long term relationships with local authorities, local associations to how it develops. This is particularly important if major capex is being
and brands. These stakeholders will almost always have a better considered to develop tech based entertainment, edu-tainment or virtual
appreciation of what local people want than a developer or asset reality. How easily can it be updated? Is it catering to a long term trend
manager ever will. Working with them to co-create destinations is an or just a passing fad? Will non digital assets such as stake parks or flexible
excellent platform for success because your project will be more likely pop-up space actually be easier to update and better for the long term?
to include popular uses that add social value, such as health services, In today’s fast changing world change is the only constant. But
new homes, educational or cultural spaces. These types of offerings asset owners able to answer the needs of communities and embrace
are at the heart of our vision for our first city centre concepts. ongoing change will be better positioned to enjoy a bright future.

38 RETAIL & LEISURE INTERNATIONAL mARCH 2019