Technology in Retail

Nur Asri is an associate at Larisa Ortiz Associates.

As we continue to move forward in this digital age, consumers are expecting simpler and seamless processes at home, at work, and at the retail store. As a result, retailers are making significant investments in technology in- stores to meet these consumer demands for a connected and convenient shopping experience. Here are some ways that retailers and brands are using technology to enhance consumer experience but also personalize marketing, improve logistics and customer service in brick-and-mortar stores.

1. Data Integration: Understanding consumer preferences, personalized marketing

Connecting data from smart appliances, mobile phones and other portable devices to digital systems helps businesses understand how customers actually use products and services, and which ones are preferred. To take advantage of this data and metrics, retailers can begin using devices to facilitate a more seamless retail experience in the store, and at home, to integrate products and services.

Retailers can use “customer genomes” to create highly personalized offers, promotions and experiences.

Source: Let's Talk Payments.Com

Macy’s and Apple are using in-store beacons to provide personalized offers directly to customers via mobile devices. House of Fraser, another department store in the UK, inserted beacons into mannequins for a proximity marketing campaign. When shoppers download an app and browse in- store, they receive information about the clothes on display. In other bigger retail stores, in-store shopper tracking systems have been installed to pinpoint a customer’s location. Retailers can then send targeted messages to customers (via smartphones) about nearby items.

Hugo Boss Heat Sensor in Regent Street store.
Source: Bloomberg

In London UK, Hugo Boss uses heat sensors to track customer traffic in its clothing stores, which helps store managers organize priority merchandise in high-traffic areas.

Monsoon Accessorize uses multichannel data sources from in-store and online customers to deliver unique personalized offers via emailed receipts. Similarly, UK department store John Lewis is partnering with an omnichannel personalization company to customize product recommendations for each individual shopper.

Walmart Media Exchange is using data collected from store sales, social-media platforms and third parties to supplement data from its Savings Catcher loyalty program. From the data, Walmart plans to create customer segments, and eventually individual customer profiles, to make better offers, as well as to improve targeted marketing.

2. Building brand/ product awareness: Educating consumers on what’s available on offer, sharing products through social media

Photo: Fashion Network.Com

Sephora has installed display screens showing latest trends, make-up tutorials, and new Made in Sephora exclusive offerings updated by theme each month. The screen greets customers as they enter the store, much like a mall directory screen. In addition, Sephora also has Beauty Boards. These are physical social media platforms to like a look, tag products used and share with the Sephora beauty community. Finally, Sephora’s snapchat geofilters feature highlighted products in-store and are designed to engage everyone within a mile of a store.

3. Product Testing: Allowing consumers to test products digitally or via augmented reality

Again, at Sephora, the Beauty Hub is a virtual look book which provides a catalog of beauty inspiration while the Virtual Artist service enables customers to test looks on an iPad or connected mirror. Developed with Pantone, the Color Profile application helps choose the right foundation shade with almost scientific precision. Recommendations are then made from all the complexion products available at in-store.  

Marie Claire’s pop-up store in NYC SoHo, called “The Next Big Thing Concept Shop”  has dressing rooms with interactive mirrors from Oak Labs that recommend accessories for outfits being worn. Similarly, Clarins beauty stores now feature Sensor Mirror Pro virtual skincare mirrors developed by MemoMi to educate consumers about their skin types so they are able to select the most suitable skincare products.

Photo: Connected-store.Com

Finally, fashion retailer Uniqlo has also piloted a “Magic Mirror” technology from Sharp that allows customers to virtually change the colors of clothing they’re trying on while standing in front of the mirror.

Photo: Ikea

Even when consumers aren’t physically in stores, they are now able to test products thanks to advanced technology. Ikea will soon enable shoppers to virtually test drive merchandise before making a purchase via an augmented reality app called Ikea Place. The app will allow customers to virtually place any Ikea furniture in any space and share the images with friends. The app will automatically scale furniture with 98% accuracy. This enables customers to experience how light and shadows will render on furniture within the space, and is intended to make buying decisions easier and inspire customers ahead of purchasing products. Other furniture retailers such as Wayfair and Ashley Furniture are similarly preparing to launch such initiatives with their products and brand.

Ashley Furniture will take technology a step further and feature in-store virtual reality tech bars that will combine a guided iPad-based space configuration experience with VR headset visualization, allowing shoppers to design and visualize their own homes.

4. Payment Processing: Easy and seamless payment methods

With a smartphone in every pocket and imaging technologies now available for scanning products, faster alternative checkout methods will continue to grow across the retail industry, predicts Tony Rodriguez, CTO of digital identification solutions provider Digimarc.

Self-service checkouts have gotten more sophisticated in grocery stores and moved into other retail sub-segments, such as home improvement, fashion and electronics stores. Tesco, a grocery store in the UK for example, is testing a high-speed checkout solution that automatically scans products placed on conveyor belts. The system can process up to three customers at a time.

Apple Pay at Whole Foods. Photo: Eric Risberg

Integrated mobile apps and “contactless” mobile payments now also enable visitors to make seamless cashless transactions, supported by MasterCard and Apple Pay, from anywhere within the store, including via fitting room mirrors. The Sephora store at Newbury Street, Boston, for example, has no cash registers because staff associates can process payments digitally, on their phones from anywhere on the floor of the store.

Since Apple’s launch of its Apple Pay solution, retailers including Staples and Whole Foods have announced plans to accept Apple Pay at their retail locations, adding to an impressive list of other major brands such as Bank of America, Disney and McDonald’s.

5. Customer service: Efficient appointment bookings, improve staff efficiency, deliveries

Many stores now enable customers to use an integrated mobile app to book one-on-one appointments with fashion stylists, and sign up for a variety of in-store events and activities. Neiman Marcus, for example, has already piloted this at their pop-up store in SoHo.

To free up store employees’ time, Lowe’s has also begun rolling out customer-helping robots into the aisles of 11 stores in the San Francisco Bay Area. Lowe’s Innovation Labs unit worked with Silicon Valley start-up Fellow Robots on the LoweBot. The robots allow store associates to devote their attention to customers that need more thoughtful advice and personalized service. Likewise, Safeway grocery store helps customers locate stock and obtain product information through its Just for U service app. The app also goes a step further by helping shoppers create and sort their shopping list by store aisles.

Wearables, or ‘smart glasses and other connected devices intended to be worn on the body’, are another productivity booster. Tesco distribution center workers wear armbands that track the goods they are gathering. The band also assigns tasks to the wearer, forecasts task completion time, and quantifies precise movements among the facility’s shelving and loading bays.

The advancement of such technology amongst retailers will serve to deliver a seamless shopping experience for customers. However, even with all of these gadgets, customers still walk into brick-and-mortar stores to get the personable experience of getting expert advice from a staff person who’s tried and tested products for themselves. From 2015 report on Navigating the New Digital Divide, Deloitte noted that “one in three customers still prefer to consult store associates for assistance when selecting and validating products.” Retailers must therefore adapt and learn to balance both the human experience and technological convenience in stores to attract consumers in the digital age. 

Retail Mistakes in Santiago Calatrava's Oculus

No one is saying the space is not beautiful. Ok, maybe SOME people are, but in my mind, architect Santiago Calatrava added something very special to downtown Manhattan in his stunning, and stunningly overbudget, Oculus. Shopping there, however, is another thing entirely.

The Oculus doubles as a transportation hub for New Jersey PATH trains and as a Westfield shopping center and while it serves it's purpose, I was shocked at how poorly thought out the retail components of the project are. Getting urban retail right - particularly vertical retail - can be a challenge as a new Citylab article on the historic trials and tribulations of urban shopping malls makes clear.  Yet the article speaks to solutions that were clearly not put in place at Westfield World Trade Center. The aesthetics may be beautiful (though the leaky roof and wet marble fall are likely keeping attorney's busy), my experience as a shopper left me confused and frustrated. A few things I noted...

Challenging Circulation Patterns. This picture was taken from the central "piazza". My first question was...how do you get from where I'm standing up to that overlook? The elevator doesn't go to the first floor and neither do the stairs. Hmm...

Yet another image, this time from the second floor. It's nice that the stairs float, but again, how do I get down to the first level of shopping? I couldn't find a single sign directing me to the escalators (which I did eventually find, but they were of course hidden from plain view in deference to the architecture, because really, it is hard to dress up a functional escalator). Finding ways to get from one floor to another was confusing and frustrating. Is this how a retailer wants their customers to remember the shopping experience?And what about those commuters who are in a rush? If the elevator doesn't go down to the PATH level, those customers have to double back to the middle of the piazza to find an escalator. When a few minutes may mean missing a commuter train, the answer for many will be "no way".






Poor Directional Signage. Here I am, finally, at the escalator and elevator on the second floor trying to get down to the first floor. It is nice that there is a sign directing me UP and OUT to a variety of things - the 9/11 Memorial, One World Trade Center, One World Observatory, and Greenwich Street - but not a single sign for where to go DOWN for more shopping.

Seemingly Non-Existent Store signage. Can you even tell what that store is selling? I had a very difficult time figuring out it out until I walked right up to the window (hint. Apple products. Ok, that was more than a hint). Perhaps the designers thought signage would distract from the design (they were probably right), but it also undermines retailers ability to raise awareness and drive foot traffic. 

It also strikes me that there is a mismatch between the most frequent potential customers (those going to PATH trains) and the retailers who occupy the stores, particularly on the piazza. While having an Apple store there makes sense, Hugo Boss and John Varvatos a little less so. To be fair, more accessible retailers can be found hidden, and I mean hidden (again, no signage directing you there) in the South Concourse.

While I don't know for sure, my sense is that high end brands were convinced to locate here for the vanity of it, but in the end, sales won't quite cover costs. The few times I've been there so far I have not seen many people shopping in any of the higher end clothing stores or boutiques. I'd be curious to see what happens at the end of some of the lease terms. I imagine turnover is likely. 

Distance decay and other reasons why planners overlook the obvious when planning for retail

There is a universal premise in retail - if people can’t get to stores, they can’t shop. It’s a very simple concept, yet time and again this principle fails to get considered during the planning process - especially when it comes to retail. Through our work at LOA, we have come across our fair share of projects that left us, let’s just say, confused. There was that 14,000 sf isolated retail in a mixed-use building located about .2 miles from a nearby shopping district. If that distance wasn’t bad enough, the space was located at the bottom of a hill on a street that dead-ended at a highway. Or what about that urban grocery store adjacent to a major expressway? While it was certainly visible, it was not accessible because there was no nearby exit ramp. So every day thousands of cars would see the big sign for the shopping center and drive right by because they couldn't get there. Let’s just say that the developer of that project skirted bankruptcy. 

Over twenty years we have witnessed our fair share of “don’ts”. Over time, our experience has led us to the conclusion that planning strategies are often based on an imaginary trade area, rather than a real trade area. Trade area is the area from which a store or district will pull (think "gravity" here) the majority of their customers. We take the question of trade area very seriously because it under girds every single piece of data a market research firm will provide to you about your district. Get this wrong and you might as well throw that report away.

At the most simplified level, the ability to predict a district's gravitation pull – or trade area – is directly related to two characteristics. One is the distance (or accessibility, but I'll get to that in a minute) of a district to its customer base. The other is the number and total square footage of retail offerings - what can also be referred to as mass. These two principles, mass and distance, are taken from science. In science we know that the greater the mass of an object, the more of a gravitational pull it has on other objects. The same goes for commercial districts. A district with a greater number of offerings (whether it be in the number of businesses or total SF) generally correlate to a larger trade area. I often say that people will travel 1 minute for every 4 minutes of activity. This 1:4 ratio means that if someone travels 30 minutes, they want at least two hours of activity to make the trip worth while. This is simply another way to discuss the relationship between mass and distance. 

120 linear feet of law office creates significant distance
decay between one end of Main Street and the other. 

Conversely, the shorter the distance between two objects, the greater the gravitational pull and higher interaction between those two objects. More recently we’ve been studying how these ideas relate to “distance decay”. Distance decay refers to the idea that the farther apart you pull two objects, the less interaction you are going to get between those two objects. Here are a few examples of distance decay in practice.

• The distance between a shopper and a store. The farther a customer has to travel, the less likely they are to patronize a business. We should also keep in mind that “distance” is a loaded term. Lots of things impact how far people perceive a place to be. If going somewhere requires driving around in circles looking for parking, there will be a perception that a distance is greater than if parking is easily available. 
• The distance between two stores. The further apart those two stores are located, the less likelihood a customer will shop at both during a single visit. 
• The distance between a parking lot and stores. If there are things to do and see along the way, this distance feels shorter. 

The perception of distance is important here too. More than a few things can make distance feel longer to the average shopper, including:

• Feelings of insecurity - loitering, trash that make a walk uncomfortable and therefore feel longer
• Lack of shade trees on a hot day
• A street pockmarked by parking lots 
• Nothing interesting to look at - blank walls along the sides of buildings
• Lack of transparency in storefronts - nothing to see as you walk down the street

The list goes on. 

Our work often centers around ways in which we can reduce distance decay - whether that distance is real or perceived by the customer. This might include way finding or storefront signage or mid-block crossings to name a few. 

Robert Gibbs, author of “Principles of Urban Retail Planning and Development” likes to say that people stop walking if there is 50 feet or more of a dead zone. Just 50’ can create significant distance decay such that two businesses will be unlikely to share the same customer. This distance is incredibly short – much shorter than most people realize. As you can imagine, this issue comes up extremely frequently in our work. We recently did some work in a community in North Carolina where a rapidly expanding law firm was taking over storefronts along the most vibrant stretch of Main Street – ultimately occupying 120’ linear feet of storefront(!) with office space. This precise issue came up for me many years ago when, as a Project Manager for the NYC Economic Development Corporation during the 125th Street rezoning (2008) we incorporated a restriction that would limit banks to 25 linear feet of store frontage. Since then other communities have followed suit, including Cambridge, MA where we recently completed a retail study. They too limited banks to 25' linear feet in some commercial districts. 

So while there are solutions to the very real problem of distance decay, many planners first have to recognize that this is a problem worth addressing. 

Retailer Spotlight of the Month: Starbucks Reserve

Starbucks, the Seattle-based coffee giant, will nearly double the numbers of its shops over the next five years and in the process roll out a new higher-end format called Starbucks Reserve.

Starbucks Reserve Roastery in Seattle

The first Starbucks Reserve Roastery and Tasting Room debuted late 2014 in Seattle. This new concept seeks to immerse customers in the craft of roasting and brewing small lot specialty coffees from around the world. A success since its opening, the shop can be seen as a ‘coffee theater’, encouraging customers to interact with Starbucks roasters and baristas in order to deepen their understanding of the art and process behind roasting and brewing rare coffees.

Starbucks Reserve on 250 Vesey Street, New York City

Reserve stores' atmosphere are as curated as its premium coffees, with an attention to high end finishes and a contemporary-chic industrial look. The concept is being rolled out as new single stores but also by adding a Reserve bar experience to existing stores. It is also being adapted to a variety of retail footprints. For example, four Starbucks Reserve stores have recently open in smaller formats throughout New York City while a larger 20,000SF Reserve Roastery is set to open in the heart of the Meatpacking District next year.

Starbucks Reserve on 771 Broadway, New York City

The Meatpacking Reserve Roastery will be housed in a new building designed by Rafael Vinoly and steps from Chelsea Market. The new store will build upon everything Starbucks has learned from its Seattle location in terms of integrating coffee roasting, manufacturing, education and retail to create a unique experience.

Tailored for customers in each market, Starbucks plans to open up to 1,000 Starbucks stores with a Reserve coffee bar experience by the end of 2017. Twelve exist today located in New York, Chicago, Atlanta, Baltimore and Boston.

Price Point: high

Target Market: foodies, millennials, and patrons looking for high-quality coffee and crafted beverages

Site Requirements: Flexible; stores vary from 2,000 to 20,000 SF

Real Estate Contact Info:

David Firestein, Shopping Center Group

914-328-2222

DFirestein@scg-retail.com

Taryn Brandes, Shopping Center Group

914-582-7176

TBrandes@scg-retail.com

Enhancing Business Visibility: Six Tips for Producing Effective Retail Signage

It is well know that visibility is a key factor to retail success. Quality signage can be an easy and effective tool to make sure passersby see (and perhaps enter) business establishments. An effective signage not only shows customers where businesses are, but it also communicates their brand and identity and can be a powerful tool shaping overall corridor and district perception.

While it’s clear that signage is an essential tool to operating a successful retail establishment, there are many factors that must be considered when developing an appropriate signage strategy. Below are six tips to have these in mind when working with local businesses in facade improvement or district beautification efforts.

Example of clear and visible signage (note that despite being on the window, the signage did not obstruct views to inside the store)

Tip 1: Focus on Customer Experience

At the most basic level, retail signage has one purpose: to communicate with the customer. Businesses should prioritize this goal above all others when developing retail signage. After all, what’s the point of a sign if the public can’t understand the message around it? There are several ways to improve the customer experience.

Make sure businesses signage have appropriate size and placement. If signs are too big your district might end up overwhelming customers. If wrongly placed, signage might not be seen or might block another business signage, generating conflict and visual confusion for customers.

Analyze the district with fresh eyes. One of the best ways is to walk your district like a customer. Be honest about what works and what doesn’t. What’s easy to find, and what is missing? Are the signs easy to understand, or are they jumbled or confusing?

Tip 2: Think About Location, Location, Location

Sign placement can seem deceptively simple, but there are many important elements to consider. Of course a sign needs to be placed in an appropriate location where it can be seen, interpreted and ultimately drive consumer action. But what else do you need to consider? For exterior signage, make sure businesses place it where it can be seen by as many passersby—on foot and in vehicles--as possible. Consider factors like glare, and what might block it (parked cars? Delivery trucks? Hot dog cart?) at different times of the day or week. Effectively placed, businesses will have a guaranteed presence worth far more than the cost of the sign installation. As an expert marketer put it: “You pay for your signs once, and they work for you 24 hours a day, 7 days a week.” (Bang 2011)

This creative signage spruces up the store entrance and reinforces the business identity as an antique store

Tip 3: Check out the Competition

Do your homework and check out other stores signage, especially the ones you admire. They don’t have to be in your district.  Pay attention and consider whether it’s a good model for the businesses in your district. By benchmarking other businesses (and districts), you just may discover something that you should do—or even not do—in your own district.

Tip 4: Get the Look Right

Once the type and placement of signage is established, it’s time to make sure the messaging looks professional and well-designed. There are some basic graphic design rules that should always be followed. “Be consistent with the feature lines, price, size, color, and fonts so the customer’s eyes can easily scan the sign. Allow for plenty of white space, keep the font simple, be sure the text is balanced and proportional and consider using bullets. Highlight words in bold or by using a different color. Avoid using all capital letters, which makes it difficult to read.” (DS 2006)

Color choices are also critical. Even a sign that looks nice and professionally designed from an aesthetic perspective may not be as readable as it needs to be in a retail environment. Using contrasting colors in the font and background is highly recommended. The most visible colors are black, white and red for the text, and these should be printed over backgrounds that are as opposite as possible. For example, white text on a black background, or red type over a yellow background can improve readability. Backgrounds that are nearly the same color as text can render signs nearly unreadable.

Tip 5: Be Clear and Keep it Simple

Clear, compelling messaging is what sets apart great signage from mediocre. Different signage has specific goals, and when a retailer can convey these distinct messages in a way that is clear, informative, and above all, still on brand, that business is going to be more competitive. Informative signage such as directional signage must be concise and readable to enable users to understand the message with a split-second glance.

Good quality signage doesn't require expensive materials. With simple paint is possible to have attractive and efficient signs.

Tip 6: Make Quality a Priority

Given that all business owners know how critical it is to inspire trust in their customers, it’s surprising how many stumble at producing well-made, error-free signage. And it doesn’t have to be this way. Creating quality signage is an easy and inexpensive way to cultivate that trust. “Signs will convey your authority and attention to detail. Make sure they are clear and accurate every time. Poorly printed signs, misspelled words and other inaccuracies can erode your credibility.” (Kinsella 2012)

Simplicity is key.  To be effective, signage must be easy to read. As some experts warn us: "Some signs are so full of tiny images, starbursts, exclamation marks, and small print, that you can’t take it all in.” (Inspire 2013).

Blade signs are a very effective way to capture pedestrians’ attention. The signs above are simple, straight to point and very effective in communicating what these businesses are about.

Works Cited/Referenced:

Business 2 Community. 5 Ways for Retailers to Drive Sales Using Digital Signage. 2012. Source Link
DS Marketing Solutions. Retail Signage…Tips for Increasing Sales & Service. 2006. Source Link
Foxfire. How to Start Using Retail Signage. Source Link
Inspire Retail Solutions. How to Create Effective Retail Signs. 2013. Source Link
John Kinsella. IGC Retailer. Powerful Signage Promotes Your Brand. 2012. Source Link
Kevin Johnston. Demand Media. Rules for Effective Retail Signage. Source Link

Bang Advertising. Why Exterior Signage Provides the Best ROI for Retailers. 2011. Source Link

http://www.signsbytomorrow.com/custom-retail-signage

The fallacies of retail market analysis and why looking at the numbers alone is a recipe for failure

Here is something to chew on. One of the biggest factors in the success of your downtown or commercial district has nothing to do with local purchasing power. As any broker or retailer can tell you, retail success is based on a variety of conditions and as a firm we have always taken a comprehensive approach to understanding retail environments, one that extends far beyond leakage calculations. As urban planners, we are also quite cognizant of the impact of the physical environment and its role on successful retail. Whenever I train downtown practitioners, I tell them to think about their job this way - "your job is to create the conditions to ensure businesses succeed, to 'set the stage' for a retailer. If you can do that well you have done a good portion of what you were hired to do."

So while understanding market demand is a critical and often a first step in determining opportunities for downtown retail, we have always posited that retail market analysis requires an analysis of much more than market demand. Our approach, developed over nearly twenty years of field work, looks at four key areas - the physical environment, the business environment, the market demand generated by residents, employees and visitors, and the adminstriative capacity to improve and manage the district over time. In fact, these four elements are part of a tool we developed for the City of New York and funded by the Local Initaitive Support Corporation called the Commercial District Neighborhood Assessment tool (CDNA). I like to call it "Commercial DNA". The goal of the assessment is to understand the fundamental and dinstincive qualities and characteristicts that make a commercial district unique - much like our DNA is what makes each of us unique. This kind of asset-based retail analysis is by nature much more comprehensive, and allows us to develop a clearly defined set of improvements, interventions and activities that will build off of local assets and ensure more viable and sustainable retail environments.  

This post focuses on one specific element of the Commercial DNA assessment, that of the physical environment and in particular issues of access, convenience and visibility. The failure of a retail environment to ensure these fundamental conditions are met can ultimately undermine retail performance in subtle but destructive ways. Below I’ve outlined a few issues that we see come up quite frequently when looking at traditional downtown environments. This is certainly not an exhaustive list, but it’s a good start for those looking to diagnose “access” challenges. 

Access/Convenience

Two Starbuck exist comfortably across the street from one a
nother along Mission Street in San Francisco.

For many goods and services, customers are driven by convenience and ease. The minute you ask a potential customer to wait at a light and make a left hand turn across a few lanes of traffic, you have decreased the likelihood that they will do it, and therefore decreased sales volume for a business. The same holds true the minute you ask a shopper to cross a busy street to grab a cup of coffee on the way to work. This is precisely why there are two Starbucks across the street from one another on Market Street in San Francisco, for instance. And it is also why Dunkin Donuts’ site selection criteria includes being on the “in bound” side of the street, or take-out food businesses want to be on the "out bound" side of the street to grab customers on their way home from work. In both cases, the idea is to faciliate an easy purchase in every way possible. Basically, it is a basic human reflex to find the shortest distance between two points, and downtown retailers need to find ways to make sure customers can easily walk in the front door with the least hassle possible. This is one reason why we perform a block-by-block analysis in our work, because each block and each corner holds unique challenges and possibilities for retailers that often must be addressed.

Visibility
Stores, particularly mom and pop stores that do not advertise like national chains, need visibility from every angle to compete.

Years ago I met the owner of this ice cream store in
Downtown Bethesda, MD, (then Gifford's)
who told me that this vertical ice cream cone made a huge
 difference in sales when he put it in. Clearly Haagen Daz agrees. 

When a quick glance by a passing pedestrian or motorist is your only form of advertising, you better work hard to make sure you are catching the customer's eye. 

If buildings are blocking visibility or if signage is non-existent or only facing one way, the lower visibility will affect sales volume. This matters even more for convenience shopping when there are no anchors. For many businesses, and especially mom-and-pops, the lost of even a single every matters. This is why 150 feet can matter to a retailer deciding between a corner location (called an “end cap”) with high visibility from all angles and a mid-block location. 

Retailers will also wait for the right site, even if it means foregoing a market entirely. A few years ago we talked to CVS about a location one block from a subway stop in a market with high demand and limited drugstores offerings. The response was “come back to us if you can get us that corner location. There is no way I can go to our real estate committee with anything less than what we consider a 100% corner”.

That brusk response is not uncommon, but some of the challenges of a site 1/2 a block off a 100% corner can be offset by signage. Our work a few years ago in Mount Washington, Pittsburgh, PA bore this out. After blade signs were introduced down a sleepy street, pedestrian counts increased by 30%, businesses reported increased sales volume, one jewelery store owner was able to keep his store open a few extra days a week and vacancies declined.

Enough parking, but not visible or comfortable to use

The walkways in Shadyside, PA to rear parking lots are well
lit and attractive. Source: Google Streetview

In many downtowns, the problem isn’t a lack of parking, but rather a lack of visible parking directly in front of the stores that shoppers want to patronize. Of course many will argue that people don't park in front of the store they want to visit when going to a mall, so why should downtown be different? In theory, that is true, but the problem is that struggling downtowns do not function like the malls (yet). They often have successful retailers and restaurants interspered among vacancies or less attractive offerings. The take away here is not to solve for the problem by putting lots of parking in front of a given store, but rather increase density of offerings so that shoppers can in fact patronize multiple stores at once, rather than a single destination. 

South Orange, NJ has nicely landscaped
walkways to rear parking lots. 

Another issue with parking is the perceived inconvenience of parking in a lot that is a block or two from a shopper’s ultimate destination. To make matters worse, sometimes the public realm between the lot and the retail area is so poorly tended that a block long walk can feel a lot longer. For example, in areas where heat is an issue, the lack of shade trees can make a short walk oppressive. Other issues include lighting, or giving shoppers something interesting to look at while they walk. Without these improvements, walking can be uncomfortable and unappealing. Some communities have addressed these connectivity challenges fairly well – South Orange in New Jersey and Shady Hill in Pittsburgh come to mind. Both have invested in well tended landscaping and pavings along these mid-block alleys that make the experience of walking to/from the parking lot more pleasant.

Inadequate Street Crossings
Even minor barriers affect shopping behavior. Asking shoppers to walk to the end of the street before crossing results in a loss of shoppers and sales volume. We worked in one community in New Jersey where the lack of a mid-block crossing was resulting in significant detrimental affects for all businesses. Whereas the district could have felt cohesive, offering 60k + sf of total offerings and drawing from a larger trade area, retailers and property owners made it more difficult for shoppers to patronize both sides of the street. In fact, you were prohibited from parking in one lot and patronizing businesses on the other side of the street. Instead, you were expected to get back in your car and park in the lot across the street if you wanted to patronize a business within 50 ft of your already parked car. Once a drive is in the car, they are likely going elsewhere. This only means lost business for all businesses.

As I said, this is certainly not an exhaustive list, but it gives you insight into the variety of issues that we consider, beyond discretionary spending power, that make a difference between a successful downtown retail environment and one that is struggling.

Please check out our website (larisaortizassociates.com) for more information on how we can help your community. 

Retailer Spotlight of the Month: 365 by Whole Foods

Whole Foods recently opened in Silver Lake, California the first of its smaller and budget-conscious new format stores: 365.

365 Store in Silver Lake, California

The new store format offers simple and clean design infused with many high-tech features to enhance offerings and streamline store operations (i.e. customers weigh their own produce to accelerate cashier transactions). At the center of the store is a section with prepared foods where customers can pick from the typical buffet but also order through an online kiosk and pick up at a window as well as an automated tea/coffee kiosk where customers can customize their own coffee and tea blends.  

The automated tea and coffee kiosk

The store main customer target are millennials, and the first store in Silver Lake includes a craft beer bar and vegan offerings from a local restaurant. However, its accessible layout and lower price point has also attracted an increasing number of seniors.

365 stores will generally measure 25,000 to 30,000 square feet, small compared with traditional Whole Foods locations, which average 38,000 and can go well beyond 50,000 square feet. They will also have roughly a quarter the number of products – reducing real estate and merchandise-related costs. Staffing is leaner and no longer specialized. An iPad app replaces wine experts, while meat, cheese and fish are in “grab-and-go” packages – meaning no butchers or cheese and fishmongers.

In addition to the first location, in Silver Lake, Calif., two more 365 stores are scheduled to open in 2016 (in Oregon and Washington), and 10 more are scheduled to open in 2017.  Stores will all have similar layout and design aesthetics, but for each, Whole Foods is planning to add local flavor through the addition of different local retailers. Still in the planning stages, Whole Foods says that shoppers may find bike shops, music stores, barber shops, pet supply retailers, or knife-sharpening services inside 365 stores.

For more info you can contact one of the company's regional offices. You can find their phone number and email here:
http://www.wholefoodsmarket.com/company-info/regional-offices

Five Design Principles that Every Facade Improvement Program Should Incorporate

By Patricia Voltolini, Associate, LOA

What is the first thing you notice when you visit a commercial district? Storefronts and buildings probably make that list. Great storefronts are critical to a vibrant street environment. They engage passersby and contribute to active street life. Not surprisingly, façade improvement programs have become a common and effective tool in many commercial district revitalization efforts.

Yet many facade programs go wrong quite quickly. Without design guidance, the "after" might not look much better than the "before", and resources spent will have less impact than you might like. Unfortunately, overcoming this issue can be a challenge. Many BIDS, BIAs or CDCs working to revitalize low-income or distressed corridors do not have the budget to engage a retail designer to help prepare and review façade improvement applications. Even when they do, this person is often not a retail design expert.

With that in mind, we thought it would be helpful to share some of our own insights as they relate to the key takeaways from a wonderful new publication entitled, Laying the Groundwork:Design Guidelines for Retail and Other Ground-Floor Uses in Mixed-UseAffordable Housing Developments, prepared by the Design Trust for Public Space in partnership with the NYC Department of Housing Preservation and Development. The publication is the result of extensive research and collaboration from a broad range of design and retail experts - including our own Principal, Larisa Ortiz - who served on the advisory panel. It is available for purchase on the Design Trust website.

While the report outlines best practices and provides practical guidance for those building new retail space in mixed-use buildings, we think it also provides excellent insight for those looking to develop facade improvement programs. A good facade improvement program not only impacts the overall look and feel of the district, but if done with certain principles in mind, can help businesses achieve higher sales. Incorporating these concepts into your facade program design will help ensure that the program meets the objectives of your district stakeholders as well as the businesses themselves.

So keep in mind the following key principles as you design your facade improvement program....

1. Maintain Transparency

There is growing recognition of the importance and value of transparency in driving retail sales. A transparent storefront invites customers inside with products and services on display. It also discourages crime by providing what urban theorist Jane Jacobs called “eyes on the street”. Making the facade as transparent as possible allows for a full visual exchange between indoors and outdoors. Customers and shopkeepers inside the store see what is happening on the street and pedestrians outside see the activity and offerings in the store. This interdependent relationship benefits both customers and retailers. 

The same storefront with different window treatments create a very different corridor environment. The previous merchant (also a pharmacy) completely covered the windows and failed to create any visual connection to the interior of the store. The new pharmacy made the windows completely transparent, and uses them to showcase products while allowing enough visual exchange between indoors and outdoors.

In order to maximize transparency, the design guidelines recommend having 70% of the façade surface completely transparent between 2’ and 10’above sidewalk-level, with measures in place for attractive privacy solutions when needed.

In many urban districts, retailers (even after a façade improvement program) cover their windows with sales posters and signs. Store-owners want to attract customers with these signs but in doing so they block visual connection between inside and outside and often create an uninviting storefront. A customer who can't see inside a business is highly unlikely to walk inside.

One way to keep the façade transparent and place signs  at the lower (or upper) section of the storefront, immediate below (or above) eye-level.

The same facade before and after renovations. The image above (before) shows all windows entirely covered with signs, a typical feature of many supermarkets and delis in urban districts. The image below shows the same supermarket after a facade renovation. Despite significantly covering the windows with sales posters, the owner  made an effort to keep some level-of transparency by placing signs below and above pedestrian eye-level.

This dollar store has large windows (over 70% of its facade is glass) but the store owner has covered it almost completely with products, blocking any visual connection to the interior of the store.

Another common occurrence is having non-retail stores (salons, professional offices, etc.) with minimal transparency. These businesses should also be regarded with the same design standards as other retail businesses as they are also key components of the streetscape and as responsible for creating vibrancy in the corridor as retail stores are. In fact, the design guidelines presented in Laying the Groundwork  target not only retailers but also banks, laundromats, and even community uses like cultural space, healthcare and childcare facilities.

This facade provides an excellent example of what non-retail stores should look like (or not). The space on the left has a highly transparent and engaging storefront while still providing some level of privacy to its users. The space on the right, however, has windows but they're completely covered with shades and gates and impede any visual connection between inside and out.

In order to guarantee full transparency, facade improvement programs should add a clause requiring windows to be kept free (or with minimal) signage and that product display should not block vision to the store's interior. In fact, the  minimum of 70% transparency recommendation does not refer only to the substantial presence of store windows, but that these windows be kept fully transparent.

Exterior illumination provides light on the sidewalk and highlights the facade at night. Exterior lighting can also be used to accent trees and planting. An active, well-illuminated street frontage improves safety for retailers, residents, and the district. It also reduces the need for security gates by creating a safer street front.

One important consideration is the relationship between lighting and store signage. Both should be coordinated and the new façade design should minimize lighting presence above the sign, especially if the units above are residential.

2. Maintain  Connections between the Storefront and the Street by Minimizing Barriers

An active, well-illuminated street frontage improves safety for retailers, residents, and the district. It also reduces the need for security gates by creating a safer street front. Ideally, security gates should not be allowed in retail spaces under lease agreements. There are many other ways to provide security, including security systems with video, sensors, alarms, etc.

Unfortunately, in many urban communities, transparency is often trumped by safety concerns. For example, many retailers elect to put up solid security gates as a anti-theft measure. However these gates only serve to accentuate concerns about safety. Your facade program should discourage, or require, less obtrusive forms of security. If roll down gates are required, share alternatives to exterior rolls down gates. (See our previous post "Are there viable alternatives to roll down gates?")

Air conditioning units can also be barriers and jeopardize a facade design's  potential to creating vibrant streets. Avoid whenever possible the installation of air-conditioning units over doorways or having them protrude through the façade. Instead, plan the placement of louvers to enhance the facade and the quality of the retail storefront. Provide a clear zone for louvers on the exterior storefront. Finish louvers to match the color of the surrounding storefront elements so that they are an integral part of the facade design.

A store's visibility has significant impact on retail sales - this is why businesses pay more for corner locations ("end caps" in retail parlance) where the store is visible to customers from a variety of angles. Effective signage can also play a role in improving visibility. In pedestrian environments, signage that projects from the building (i.e. blade signs) offer pedestrians strong visual cues that there are businesses in the vicinity. In one community where we worked, the installation of blade signs increased pedestrian traffic down a previously quiet street by 30%. (See our post "Pittsburgh Neighborhood Unveils Strategies Aimed at Drawing Tourists")

3. Keep the Street Wall Continuous and Avoid Gaps

The conditions of street-level retail are intimately connected to the quality of the customers’ experience in your district. The benefits of well-designed storefronts extend far beyond district attractiveness. From fostering community pride to serving as catalyst for further economic investment, they create positive changes to the social, economic and environmental health of the commercial district and surrounding communities. Although this recommendation is not technically about facade improvements, it does suggest that by clustering facade improvements and/or creating a continuous street-wall of improved storefronts, the program can have greater impact. Consider using the the facade program in a targeted way along a single block front for a limited amount of time. Or design the program as an incentive to fill vacancies - perhaps by increasing the allowable grant contributions when used for a vacant space. 

4. Maintain Flexibility for a Variety of Potential Tenants

Effective retail spaces are flexible. In many districts, the needs of tenants vary widely. Offering flexibility means greater potential to fit the needs of a larger set of prospective tenants. One suggestion is to design the façade program so that it has the potential to accommodate multiple entries. Another is to require improvements that result in on-grade pedestrian entries to ensure ease of access. Consider a retailer whose customers are young families with children - a set of steps will cause immediate concern. How might a parent with a stroller make it up the steps? Or a senior citizen - or anyone with mobility challenges? 

5. Remain Distinctive so that Shoppers Can Easily Find the Retailer

Retail entrances that are clearly marked and distinct from other street-level uses (residential or office entrances) facilitate wayfinding and help catch a shoppers eye. While the guide suggests a minimum of 15 feet between any retail entrance and other uses, we think that clear visual delineations are more important than actual physical distance. Awning and other design elements, like signs, can be deployed in a way that ensures a retailer has a clearly defined entrance.  

Great signs, great streets...

Lyn Falk, President and Owner of Retailworks, Inc. shares her "Do's and Don'ts of Main Street Signage" on this great post by the National Main Street Center.

Inspired by the South Bronx - Aspirational Staging of Vacant Space

Earlier this week I had the distinct pleasure of speaking on a panel with my friend and colleague Kerry McLean at the annual conference of the New York State Neighborhood Preservation Coalition. Kerry is Director of Community Development at the Women’s Housing and Economic Development Corporation (WHEDco), a non-profit that builds ‘green’ affordable housing and offers innovative solutions to Bronx families. I've written about WHEDco's work before - but her most recent accomplishment really deserves mention. The district where Kerry works is one that has seen its fair share of troubles. When the Bronx was burning in the 1970's, Southern Boulevard in the South Bronx was ground zero. Remember that famous image of President Carter touring a destroyed urban neighborhood? Yup, that is exactly where we are talking about. 

Before: Vacant Space along Southern Blvd, Bronx, NY

After years of investment in new housing, education and programming - the organization turned its efforts to improving the retail offerings. But getting "retail ready" meant starting with the basics first. Working with local merchants to improve the overall safety and cleanliness of the street. 

In 2010, WHEDco was a member of the first cohort to participate in the City of New York's award-winning Neighborhood Retail Leasing Program. As the program director during it's inaugural year, I had the opportunity to see the "before" situation - new housing, some of it developed by WHEDCO, with long standing ground floor vacancies. 

As you can tell from the"before" image. These spaces were clearly not showing well. The retail consultants we hired, JGSC Group, recommended improved staging, starting with the window displays. They encouraged Kerry to identify images of the kinds of retail the community wanted and could sustain (based on an assessment and market research) and fill the windows with images that not only improved the look and feel of the space (and district), but might also build interest from potential tenants. To our knowledge, this is the first time that this strategy has been deployed by a non-profit.

While this particular space has not yet been leased, the "after" pictures are phenomenal improvement over what was there before.

After: Staging of Vacant Spaces

After: Staging of Vacant Spaces

For those interested in replicating this great idea, be forewarned, it took a lot longer to execute than we originally thought. For those considering going this route, Kerry has a an important lesson learned....finding the images was the hardest part. Once the decision was made to fill the windows with images, WHEDco wanted images that not only reflected the retail uses they wanted, but also the demographics of the neighborhood. This meant that most stock images were not quite right. And when they finally did find images that they liked, they were too small to be blown up to the size needed without becoming pix elated.

After month's of searching for the right images, the outcome speaks for itself! We'll keep tabs on the progress of this space for you. For more information on WHEDco's efforts, please visit the dedicated website at www.southernblvd.org