Converging trends create retail entertainment mix

The future of retail entertainment destinations represented by a range of development types animated with a mix of lifestyle retailers, entertainment venues, and icon restaurants is explored in "Developing Retail Entertainment Destinations", a new publication from the Urban Land Institute.

According to a release from ULI, destination real estate developments have resulted from the convergence of trends in real estate development, the retailing and entertainment sectors, consumer behavior, and the revitalization of cities nationwide, according to the publication.

Developers are seeking new strategic real estate models to compete against the burgeoning value-oriented retail sector. Entertainment and lifestyle-oriented retailers are looking to expand in more competitive locations and configurations, and municipalities are hoping to attract suitable developments to strengthen urban revitalization efforts.

"Retail Entertainment" was authored by Michael D. Beyard, ULI's senior resident fellow for retail and entertainment development, Washington, D.C.; Raymond E. Braun, senior vice president at Economics Research Associates, Los Angeles; Herbert McLaughlin, head of design and research at KMD Architects, San Francisco; Patrick L. Phillips, president, Economics Research Associates, Washington, DC; and Michael S. Rubin, president, MRA International, Philadelphia.

"Pleasure, indulgence, relaxation, stimulation and entertainment have come to be seen as inalienable rights. For consumers who have seen everything and done everything, the old retail and entertainment options simply will not do," the publications says.

"The old-style shopping mall, the epicenter of suburban culture and entertainment, is dull when compared with the promise of a spectacular collection of new, out-of-home retail and entertainment options that, if creatively bundled and executed, can capture the interest of the most jaded guest."

Destination developments offer a combination of entertainment, dining and retail anchorsthe "trinity of synergy," within a pedestrian-oriented and multiuse environment. These amenities operate independently but complement each other, drawing visitors from overlapping markets, at different times of day and different days of the week. This is what distinguishes destination developments from other forms of retail development.

"Whereas traditional shopping malls of the 1960s and 1970s tended to be rational and functional in design, in today's destination developments, the unconventional manipulation of design variables such as materials, scale, composition and context is used to evoke a feeling of excitement, energy and creativity," the publication explains.

In the current competitive environment, retailers have sought to differentiate themselves by catering to people with specific lifestyle profiles; as a result, businesses are specializing in a particular type of consumer rather than a particular type of product.

The emergence of "lifestyle retailing" had led to stores becoming more experiential, offering more "try-before-you-buy" options that add to the entertainment concept. In addition, consumers' willingness to enjoy food with other attractions is an essential source of the synergy that fuels destination development, the book says.

Retail entertainment developments meet a growing consumer preference for leisure options that are easily accessible, closer to home and which can be enjoyed repeatedly, the book explains.

A combination of sociological and technological developments has spurred ubiquity in entertainment. Dual-income households, single parenthood, job insecurity and children's conflicting schedules have shifted consumer preferences away from costly, infrequent, pre-planned and extended vacations. In addition, more youths have disposable income and access to local entertainment venues.

"More than ever, consumers are seeking leisure experiences in convenient doses on a weekly basis, inspiring the development of regional and community-level retail entertainment destinations," the publications says.

"Retail Entertainment" predicts several trends that will influence future destination real estate, including:

1. Prevalence of lifestyle showcase stores;

2. Live, affordable performances to the masses;

3. Hip communities for the Viagra generation;

4. Joint retail ventures linking retailers selling products that complement each other;

5. More person-to-person service in stores and more personal valet service;

6. Performance studios replacing movie theaters;

7. Authentic immersive environments, where content will change with each visit;

8. Designs more oriented toward what visitors "get to do" rather than what they buy;

9. Increased focus on out-of-home experiences for women;

10. With more convenience items purchased online, consumers will have more time to pursue leisure/entertainment activities when leaving home.

"Several factors will contribute to future growth in the industry. First, consumers are growing increasingly accustomed to a meaningful experiential quality in their daily lives. Second, Generation Y (the children of baby boomers and the largest generation in U.S. history) regards shopping as a lifestyle pursuit. Finally, the aging baby boomers are reaching a time in their lives when comfort, escape, and indulgence are paramount considerations and rewards," the publication says.