Skip Ribbon Commands
Skip to main content

News release

LAS VEGAS, NV

Retailers Meeting the Needs of the “Me” Generation

Retailers adapt to consumer demands for personalization, connectivity and mobility in their shopping experience, according to Jones Lang LaSalle’s recent retail trend report


LAS VEGAS (RECon), May 20, 2013 – Few trends stand the test of time. However, as the consumption of merchandise evolves, Jones Lang LaSalle’s retail experts, embarking on the International Council of Shopping Centers (ICSC) Real Estate Conference (RECon) in Las Vegas this week, expect five key trends to develop and change the course of the retail industry.


“The success of the retail industry is rooted in meeting consumers’ desires, however, with constant connectivity, mobility and personalization, it’s a challenge to meet every need,” said Greg Maloney, Americas CEO of Jones Lang LaSalle Retail. “In the next five years, we’ll see retailers brace themselves for an operational overhaul – from store layout and design to payment methods and offerings. Retailers that are nimble and adapt with flexibility will rise to the top, and those that don’t will falter and, ultimately, fail.”

1.       BYOD: Bring Your Own Device
By year end 2013, there will be more mobile devices on earth than people. We are living in a world of constant connectivity and access to immediate information. The presence of mobile devices has advanced consumer shopping behaviors by leaps and bounds. Before making purchases, 40 percent of consumers will consult more than three online channels, making the separation of traditional and digital retailing obsolete. “Consumers have become digital omnivores. Retailer’s best plan of attack is to adjust their strategies for seamless integration of in-store, online and mobile shopping channels. Then and only then will they survive and thrive,” said Lew Kornberg, Leader of JLL’s Retail Tenant Solutions Group

2.       Me-tail
The “it’s all about me” consumer mentality is redefining retailer’s product offerings across the nation. Commoditized and run-of-the-mill goods are being swapped for original, hand-crafted and unique items. As this shift continues, there is a tremendous opportunity for mom-and-pop shops to capitalize on their smaller custom formats. “In the age of fast fashion, precision retailing will be the new norm as orders are prepared to shoppers’ taste. It’s likely stores will continue to shrink their layouts to keep the experience streamlined and stores nimble,” said Walter Wahlfeldt, Executive Vice President of JLL’s Retail Tenant Solutions Group. 

3.       The all about me the experience
United States e-commerce sales are projected to grow 62 percent by 2016 to a whopping $327 billion industry. Consequently, bricks and mortar retailers will need to look beyond the traditional store model of stocked shelves and rows of racks to keep their customers interested. “The quick-fix, online purchase is becoming more and more appealing to consumers strapped for time, but there’s no instant gratification like buying from a store. In the next few years, to keep shoppers in their space we’re going to see retailers reconfigure their store formats to be interactive and all-inclusive experiences. Destination shopping will soon be the new norm,” said Steve Jones, Managing Director of JLL’s Project and Development Services Group specializing in retail.

4.       Curated Consumption
Henry David Thoreau once said, “Live the life you’ve imagined,” and with the rise of Pinterest, shoppers can do just that.  The channel allows users to create virtual inspiration boards and “pin” photos of products and other items that interest them. The relatively new retail-centric platform has swiftly become the fastest-growing social network, with 10 million unique monthly visitors. 

“Pinterest allows consumers to curate their consumption of goods and tailor experiences they wish to have. The platform has been adopted by a wide variety of retailers, from Nordstrom to LL Bean, who have integrated traditional marketing efforts to build brand equity. If integrated successfully, Pinterest has the ability to virally spread new products, drive website traffic and ultimately increase sales,” said Julie Rickey, Director of Marketing for JLL Retail.

5.       Pay by Phone
Pay by phone, will have a whole new meaning by 2018 as smartphones continue to penetrate the everyday routine of consumers. In the next five years, mobile wallets are expected to become the preferred payment method by half of all smartphone users. This will push retailers to adopt new technologies and payment platforms. “Landlords and retailers that leverage and embrace mobile technology by creating smartphone scanners and self-checkout kiosks in their space will retain customers. While there is a fragmented marketplace for mobile payment platforms, we expect that by 2014 a defined leader will emerge,” said Geno Coradini, Texas Retail Market Lead for JLL.

To learn more about the trends affecting the retail industry, stay tuned for more news this week at ICSC RECon. 

JLL Retail offers comprehensive retail services to meet the expanding needs of investors and occupiers of real estate.  As the leading retail service provider, JLL Retail manages a portfolio of 94 million square feet of retail centers within the United States and delivers service offerings to 80+ retailers – locally and nationally.  For more information on JLL Retail, visit www.jllretail.com.               
For more news, videos and research resources, please visit the firm’s U.S. media center webpage. Bookmark it here:  bit.ly/14hRbTl

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management. For further information, visit www.jll.com.