Shopping Centre held its first Retail Destinations Forum in Dundrum, Dublin last month. Roger Hobkinson from Locum Consulting discussed experience retail with the cream of Ireland’s retail and shopping centre industry
There’s nothing quite like a recession to inspire change and innovation. Within the retail industry, the term ‘experience retail’ clearly demonstrates a shift towards services designed to attract an increasingly diverse and discerning customer base.
This was the subject of discussion when Locum Consulting’s associate director, Roger Hobkinson, took the stage at Shopping Centre’s first Retail Destinations Forum. Locum, the specialist destination development consultancy of Colliers CRE, has focused a lot of energy in recent months on encouraging landlords such as Lend Lease, Hammerson and Land Securities to explore leisure and entertainment in shopping centres.
“It is something that’s starting to be brought forward,” commented Hobkinson. “It’s all about attracting more people; getting them to stay for longer; getting them to spend more money; and getting them to come back.” So the goals themselves haven’t changed, but the customer has. According to Hobkinson, there are several drivers of this shift towards experience retail.
“At the moment people are cash-poor but time-rich, so now more than ever centres need to create a great experience for customers,” he began. “People are valuing experiences over possessions; authenticity is a new benchmark.”
Hobkinson added that, while people are getting older, they are becoming far more active and looking for new experiences at the age of 60 or 70. And the growing number of single people means the population as a whole is more mobile. “There’s a richer variety of needs, wants and aspirations. Shopping centres and retail are moving towards offering a sophisticated package, with the latest in design and technology, to meet the lifestyle, image and aspirations of an increasingly sophisticated consumer,” he concluded.
Various elements in the running of shopping centres need to be considered under this new, forward-thinking approach. Unsurprisingly, entertainment was at the top of Hobkinson’s list. In recent months, commercialisation strategies have taken on a new prominence as managers turn to shows and events to draw in customers. “Retail itself is the number one leisure activity,” noted Hobkinson. “Shopping centres provide a combination of leisure and recreation, all conveniently found in one place.”
While retail remains the core attractor, according to Hobkinson it is becoming surrounded by other attractors, including culture, events and leisure. “Not all of it needs to be expensive either, there can be cheaper initiatives,” he insisted. Examples such as the use of markets in shopping centres (“Think about looking to the past for ideas. What can we draw upon?”) and entertainment in catering (“Involve the customer – have them participate in the cooking before they eat”) are being explored in centres around the world.
Innovation in other areas, such as design, are all part and parcel of a new type of experience. “Here in Dundrum, there’s a great use of design and public space. Liverpool One and the Bullring are introducing streetscape back into retail projects,” commented Hobkinson. Another area is service, with the Apple store demonstrating Hobkinson’s ideal level of assistance, guidance and interaction from the sales staff. “Assistants need to be passionate, enthused and well-trained,”
he stressed.
Innovation in technology is another factor that cannot be ignored going forwards. By sending discounts and promotions via mobile devices, retailers and centres can target a specific demographic and market themselves to the right people.
Lastly, if centres and retailers want to attract repeat business, then branding is essential. “It’s something we call ‘experience marketing’,” said Hobkinson. “It’s about creating an appeal based on emotions, perhaps by building on local history or culture.” HMV has started introducing small art-house cinemas above its stores which adds to the offer that already exists. “Centres and stores need to tell a better story to achieve a premium on something elsewhere.”
The question on everybody’s lips, however, is does experience marketing make commercial sense? “It’s too early to tell,” admitted Hobkinson, “but early indications show that this is clearly something with a good commercial rationale. We’re convinced it’s going to be something big over the next 10 to 15 years.”
