Shopping Center Business is the leading monthly business magazine for the retail real estate industry.
Issue link: http://shoppingcenterbusiness.epubxp.com/i/903727
ONLINE RETAIL 134 • SHOPPING CENTER BUSINESS • December 2017 In June, Amazon announced the acqui- sition of Whole Foods, probably one of the fastest-possible pathways for them to break big-time into the "brick and mortar" grocery world and build their fresh food delivery service. Finally, the first Amazon Books opened in Seattle in 2015. Eleven now operate na- tionwide, with two more in the pipeline in California. Its first Big Apple location opened earlier this year at Columbus Circle in the former Borders Books. The bookstores also promote Amazon products. In addition to siting and co-tenancy con- siderations mentioned above, are there other best practices for online brands newly expanding into physical outlets? Well, owing to the disrupted retail mar- ket, we see many landlords entertaining short-term or pop-up opportunities with options to convert to long term. This pres- ents retailers with an opportunity to test a market without over-committing to a deal over an extend- ed period. There is also the option of partnering or c o n j o i n i n g with an estab- lished brick- a n d - m o r t a r operator. Ex- amples include Amazon and Whole Foods, and Rent the Runway's joint enterprise with Neiman Marcus in San Francisco's Union Square. BROKERS, IT'S YOUR TIME Consumers, owners, retailers, investors and many others have a big interest in how this will all shake out. The key thing to no- tice here is that many members of Ameri- ca's entrepreneurial elite are rediscovering bricks and mortar – and the importance of the in-person retail experience to the ultimate end-user: the customer. To the surprise of some — or of many — we are witnessing a bit of a reversal, all in the form of this growing "click-to-bricks" momentum. At this time of often-unpredictable change, I think the brokerage community has a splendid opportunity to add depth and value to the national discussion about retail's future. Brokers should study and scrutinize this phenomenon and think through the best practices that will help enable and abet it, where it makes sense. Brokers should leverage their expertise and demonstrate their thought leader- ship. They should speak up at a time like this. Their constructive input will help en- sure that tomorrow's retail sector — with whatever blend of clicks and bricks — will truly benefit its full spectrum of constitu- ents. SCB Michael Azarian is director at Cushman & Wakefield in New York. Michael Azarian Director Cushman & Wakefield The key thing to notice here is that many members of America's entrepreneurial elite are rediscovering bricks and mortar – and the importance of the in- person retail experience to the ultimate end-user: the customer.To the surprise of some — or of many — we are witnessing a bit of a reversal, all in the form of this growing "click-to-bricks" momentum. Warby Parker has been one of the biggest clicks-to-bricks success stories yet, with more than 50 physical locations, including this one in Midtown Manhattan.