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US Retail Looks Abroad for Ways to Enliven 2006; Hottest Concepts Coming from Europe and Asia in 2006, RTKL Predicts
[January 10, 2006]

US Retail Looks Abroad for Ways to Enliven 2006; Hottest Concepts Coming from Europe and Asia in 2006, RTKL Predicts


BALTIMORE --(Business Wire)-- Jan. 10, 2006 -- Now that the numbers are in and this past retail season was not as robust as everyone had hoped, U.S. retailers and developers need a tonic for their ills - a reason to be optimistic about the road ahead. After three decades of being the avatar of all things shopping, the domestic retail industry will spend 2006 looking abroad for fresh ideas and approaches to capturing the hearts and wallets of shoppers. Architecture and design leader RTKL offers the following predictions.



Importing Retail Concepts: Today's hottest retail design approaches come from abroad, where retail developers and even notoriously conservative investors are more willing to push for edgier designs, riskier developments and new ideas. A few of the biggest retail trends from abroad include:

-- Death of the Food Court: It's time to declare the death of the food court, that convenient but gastronomically dubious Mecca of fast food. As a 'foodie culture' emerges here in the U.S., 2006 won't be about how quickly we can get a burger; it will be about food's richer role in our lives. "Food - how we buy it, prepare it, consume it - has an unmistakable cultural DNA to it," says Gunning. "We're starting to see a much deeper appreciation for the social aspects of dining, not to mention a great desire for more relaxing environments that highlight the freshness of the food and the drama of its preparation." Europeans and Asians have designed their dining environments around this concept for centuries; expect US developers to build more 'slow-food' environments in 2006.


-- Space is the Place: Europeans and Asians have always understood that shopping is as much about the social activity as it is about the merchandise. In America, developers tend to shy away from public spaces, either because they can boost maintenance charges or open the door to liability issues. However, with the growth of online retail, public spaces are not simply detractors from leasable space, they are necessities to attracting a computer-savvy and socially sophisticated generation. Says Gunning, "Our current work places a great deal of emphasis on the public realm and common amenities - the streetscape and landscape, giving people the opportunity to sit down and watch life's rich pageant unfold."

-- Transit: The American development community has been paying lip-service to a sustainable suburbia for the last 10 years, but Europeans and Asians, who face a paucity of developable land and cities with increasingly dense populations, see mass transit as an everyday way of life. "Transit hubs will be the new malls," predicts Jeff Gunning, an RTKL vice president. "But they're much more complex than the typical suburban shopping center, and that has caused developers some anxiety." But the results are almost always worth it, Gunning believes. "The benefits to the shopper are obvious: no more oceans of parking, a livelier mix of shops and food, and the idea of living above the shop are all appealing element of TOD's."

Gunning also offers a few predictions for the coming year for U.S. retail design.

Electronics Environments for Women: The latest electronic gadgets, from iPods to HDTV's, are just as alluring to women as they are to men; but many women are turned off by the in-your-face approach of most electronics stores - the blaring noise, blinding lights and acrid smell of new electronic stuff piled chaotically on shelves is enough to convince most women to turn to the Internet. It's time for land-based electronics retailers to wise up about the female consumer - responsible for an estimated 80% of all household purchases - and create environments that are welcoming, comfortable and non-threatening. Look for educational classes, electronics marketed like clothing lines and a higher level of style in products that make them more like fashion and less like, well, gadgets.

Extreme Makeover: We've all seen the shows on television, and we've all complained about their gratuitous emotional content, but the dream of the extreme makeover has tapped into the American Zeitgeist. How long before the concept appears at a mall near you? Expect retailers to offer more "life-changing amenities" aimed at heightening the shopping experience by offering consumers a path to some type of enlightenment. These might include anything from cooking classes, yoga, personal shopping/consultation to off-site salons and spas that will offer context in which consumers can plunge deeper into pools of services and amenities. Department stores, facing near extinction brought on by the meteor strike of competition from specialty retailers, will push this a step further, offering top customers complete life-changing makeovers that will cover health, beauty, fashion, home styles, etc.

Hanging out with a brand: Retailers are beginning to catch on to the notion that people hanging out in their stores - even if they aren't buying - isn't necessarily a bad thing. In fact, it may be a very good thing. Expect to see more companies designing retail environments that create an aura that breeds fierce loyalty because the pressure to buy is assuaged by membership in the club.

Jeff Gunning, an RTKL Vice President, has worked with dozens of major retailers - from department stores to boutiques - designing stores around the world. If you are interested in speaking with Jeff about the retail trends and challenges for 2006 and beyond, please contact me at 212/840-1661 or email me at [email protected]

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