Change is a hallmark of the marketplaces industry, but by any definition, 2021 was a doozy. The year began with soaring optimism and rapid economic recovery, fueled largely by the global vaccination push, and ended with a new round of challenges triggered by the omicron variant, inflation and the worst employment and materials shortages in recent memory. And yet, marketplaces professionals are well-schooled in seizing opportunities during tumultuous times. In fact, many companies posted strong or even record growth last year despite the historic headwinds. As the industry gears up for the new year, Commerce + Communities Today asked experts to reflect on what worked in 2021 and thus will guide the industry into 2022. Here’s Part 1. Look for more in the coming days.

More of What Worked in 2021:
Reimagining Existing Spaces
Portfolio Optimization
Sustainability in Development
Selling Fresh Food at Economy of Scale
Reinventing and Reinvesting
Customer Relationship Management
Focusing on the Customer Experience

Tech in Retailers’ Real Estate Decisions

In 2021, retailers accelerated their expansion strategies via consumer data and analytics, said Barrie Scardina, head of retail in the Americas and executive managing director for Cushman & Wakefield. “Developing successful market-entry and expansion strategies requires an understanding of consumer demographics, traffic patterns, consumer mobility and changes to co-tenancy,” she said. “This is the focus of our work, where we are incorporating new datasets and predictive analytics to mitigate risk and maximize results for retailers.”

• Interactive mapping helps visualize complex data. The latest iteration can showcase real estate considerations and co-tenant activity and provide submarket insights. When combined with mobile data, interactive mapping can provide insights down to specific street corners, provided the context is properly understood. “The map is a fantastic way to illustrate data,” Scardina said. “It gives you a clear understanding of each available property in the context of its submarket.”
• Virtual tours, store construction and design are evolving rapidly. Technology like Matterport and Autodesk Revit help retailers evaluate a location, build sample fixture layouts and understand the in-store consumer journey. “These tools not only enable the retailer to look at numerous locations without ever leaving the office but are increasingly being used to develop planograms, test merchandising strategies or even build out a virtual storefront,” Scardina said.
• Turnkey location solutions also gave retailers new options in 2021, including working with platforms like Leap to launch and operate omnichannel-enabled temporary or popup stores. “These solutions allow retailers to test markets, consumer journeys and product launches,” Scardina said. “Pop-ups and short-term leases are here to stay, and nimble, agile approaches to testing are critical to growth.”
• Mobile data and traffic analytics continued to be game changers. “Mobile data is everywhere, but it is the application and the relevant insights that retailers crave,” Scardina noted. Economic recovery was a particular area of interest. “Recovery data is helping retailers understand new traffic patterns, the timing of the recovery by submarket and how consumers’ travel behavior has shifted,” Scardina said.

During the pandemic, retailers have faced new challenges relative to store location, size and purpose. Technology has rapidly evolved to meet these needs. As retailers continue to pursue their site-selection strategies, expanding brands will rely on a combination of in-depth market knowledge, consumer-centric technology and detailed analytics, Scardina said. “To mitigate risk and make the best decisions for capital investments, retail real estate professionals are combining art and science,” she said. “Partnering with data experts helps retailers understand the meaning behind the analytics so they can best apply the information and have the strongest outcome.”