From challenges to opportunities, the morning focused on environmental, social, and governance (ESG) and anti-social behaviour with difficult and emotionally charged sessions, before moving on to the evolution of places and AI’s role in that journey, where the mood was upbeat in embracing change through collaboration. 

Gareth Jordan, ART’s Director, chaired a reflective session following AI presentations from Alex McCulloch, Director at CACI and Ross Powell, Technologies Director at JLL. The panel discussion delved into current approaches to insights and strategy through data and a grounded view on how that continues to evolve for both the full price and outlet sectors. It was important to debunk some myths surrounding AI to understand its capabilities and limitations for retail destinations. Aside from agreeing that AI is not about to replace our jobs, it could be said that jobs might be taken by people using AI! Seriously though, the consensus was to enhance roles, rather than replace them, with new technology, making tasks easier and decisions better and faster.

Alex Petit, Head of Data & Insights at Global Mutual, set the tone in answer to Gareth’s first question about the key components of active management. “We’ve spoken a lot about data, and data can be scary, but I wanted to make a point about active asset management and the success factor is you in the room.” Alex elaborated: “The last 12 months have seen a lot of activity from an investment perspective, and a recurring question I always get is around measuring the value of active asset management. This is where Retail Advantage is a valuable tool and other data pointers, which are really helping us to measure value. So understanding how a centre is performing, what’s happening from a turnover perspective, what sales coverage you get… so I think it’s a good way to introduce the subject – yes it’s about data, but it’s about you, because you are the ones producing the good work, and we are just here to measure it.”

The discussion moved on to the important KPIs when approaching Sales Performance insights and how data is being used on a daily basis to inform decisions. Glynn Edwards – Trading Director at Landsec, explained that while they use fairly traditional KPIs like sales, density, and things you would expect to see, Landsec has made good headway in the volume of data with AI, bringing better coverage. “But when you look at sales, one thing that has changed quite dramatically is what is included in that number. You look at the introduction of click & collect, digital sales in a physical store, and all of a sudden the success of a particular store is a lot more confusing. You may have a brand that does not make significant money from the store, yet they consider it a successful store, so you need to look at the value from a different perspective. That has been a fundamental change, so understanding the ‘halo effect’ through footfall monitoring and customer data is important.” 

Alex answered next, “Just to add to that, it’s super important to understand what’s happening within the four walls, but it’s also very important to triangulate sales with catchment data – demographics, mobility and banking data. People who know me know I am the queen of bad analogies, so I’m sorry, but I am living up to my reputation. First, it is really important to understand what slice of the pie you have. In a cost-of-living crisis, the pie may have shrunk, so understanding that the slice of the pie isn’t growing is an opportunity to understand what really matters to you, your investors, or your shareholders. So it’s great to know what’s happening inside the box, but relating it to the catchment is really important to measure share of wallet evolution.”

Kenny Murray, General Manager at McArthurGlen Cheshire Oaks Designer Outlet and Regional Retail Lead for UK & Canada, brought in the evolution of how we treat data: “Cheshire Oaks Opened 29 years ago this month, and in the old days, the data we used to get from brands was very transactional. You take the sales data to calculate the rent, but I think because we are retailers, we are naturally curious, and we realised there was much more we could do with that data. And it wasn’t just about density and sales return; it was also about what the store commercial was like, what the units they were selling were, and what the average selling price was. What would we see happening in terms of average unit price – was it going up? Or was it going down? And also looking at things in terms of asset management, which Alex touched on, the importance of understanding the capture rate.” Kenny explained that this approach is fundamental to their relationships with brand partners, enabling them to understand and resolve any issues. 

Gareth raised a question around regional comparisons and whether this was a useful performance metric. Kenny said, “I think that’s an interesting thing for us, and I think over the last few years, we’ve gotten much better at looking at things from a regional perspective. We’ve identified that the more we can work with a brand partner on the numbers, not just on one location of the business, but across multiple locations, brings a real big opportunity to drive performance overall.” McArthurGlen’s Friends and Family marketing campaign gave a good opportunity to share how they work with brands around KPIs on promotions so that they can understand how to maximise it together. “From day one, when any brand joins a McArthurGlen centre, it’s a partnership,” Kenny added. 

Gareth asked Glynn for his take on regional comparisons and whether “local” brands are still having an impact for Landsec at the moment. Glynn explained that “in terms of geography, there is value in those comparisons, but we also have different destinations with plenty of very different guests. So you could compare them, you get some value, but generally, they are vastly different. So you actually find out more about how different they are. We look at our data using geography, end-use and a whole raft of other metrics. Local brands still absolutely have impact – and in many ways, they’re more important than ever. So many of our retail spaces in the UK now have such a similar lineup of brands driven by their global success and appeal. We all want the biggest Zara, we all want the biggest JD, we all want the biggest Next. Unfortunately, that leads to pretty homogeneous centres, so local brands can be the best way to differentiate and stand out from the crowd.”

Gareth touched on a conversation with host Darren Pearce during the break about security, facial recognition and monitoring, leading to the question of the day: “Are we seeing AI replace humans already?” 

“Not replacing humans. But I think it is making us slicker in terms of the way that we operate,” said Kenny. He described the efficiencies made possible through innovation and the way that the outlet sector has transformed their deliveries of stock – dramatically reducing stockroom size thanks to the use of technology providing up-to-the-minute visibility on the stock movement. 

Alex followed with another compelling example: “We are talking to an F&B operator, and the brand’s background is interesting because the founder used to be an analyst in the banking sector. We are helping him understand and predict the footfall pattern for the F&B unit he’s looking at. Given that he’s using all fresh ingredients, understanding how much to buy on which day or how much could be wasted makes a massive difference between a super profitable unit and just breaking even.” 

Glynn also raised the increasing connection surrounding insights: “I think we probably share more data now than we ever have with brands – and with that, you get far more collaboration.”

Gareth moved on to a potentially divisive question about outlet vs full price, but no boxing gloves were required. Kenny commented, “I think it’s the detail at which the outlet sector works with brands is a big distinguishing difference… I think the full price market has followed for sure. You can definitely see that, but I think we’re still further ahead. And I think that ties into the question you asked about looking at things from a centre perspective or are we looking at things more regionally? If you look at McArthurGlen we are looking at things centrally, we are looking at things regionally and we’re also looking at things at a group level. Brand partners really want to work with us because they understand that we will help them maximise the potential within our centres. And I think that’s the part that outlet retailers need to continue to do, and you see full price working more in partnership with the brand partners, too – looking at how they deliver events and experiences that will drive footfall into the stores.”

Landsec has a mix of both outlet and full price, and Glynn gave his perspective next: “I think they’re probably more similar than they’ve ever been before; people could be in an outlet now and not necessarily realise it, the lines are being blurred, so people just want to shop brands and it does not necessarily matter.” 

Alex agreed that they are getting closer and closer and raised the benefits of Global Mutual having full price and outlet destinations with the technologies that cover both. However, she raised one big difference in how valuers value outlets vs full price: “Full price is seeing more and more turnover rents, and if you think of churning tenants in an outlet, it is something that is viewed very positively because you can keep on growing your densities. Sadly, when it comes to shopping centres where most investors want longevity and a very stable income, having that churn means that valuers take a dimmer view of that. So the valuation system needs to evolve.”

Apart from the light-hearted questions Gareth finished on courtesy of AI using ChatGPT, Glynn ended with an interesting point comparing the last decade’s predictions around the death of bricks and mortar due to online shopping with fear surrounding job losses from AI. He quoted share of market statistics from an earlier presentation, explaining that the opposite has happened and that online sales have been going down for the last three to four years. “We will find a new balance between the two, but the reality is that we learn to adapt to it; we have brought it into our everyday lives, and the same will happen with AI,” concluded Glynn. 

Whether you want to understand how to get more from the data you collect or learn more about how the industry is using AI-enabled tools to simply and quickly achieve connection and collaboration, let’s discuss.

Stay tuned for next year’s line-up for Retail Destination Live

See our top tips to optimise your retail destination’s digital strategy and de-clutter where necessary.

1. Think accessibility  

It’s important to make sure that you are getting the most out of the data you collect and that it delivers value to the people and brand partners working across your retail destination. 

Reviewing the data different partners and teams can access may help de-clutter hurdles that make the analytics less timely and the insights less actionable. 

Data can be very siloed, so through Retail Advantage, we structure data to be consistent. This way, analytics are presented dynamically to different teams, but still working to the same defined standards. This is essential for a portfolio of centres, but it is equally important for individual retail and leisure destinations so that different teams can access the data in real-time. 

2. Prioritise accuracy 

It is no surprise that destinations thrive on accuracy. It is essential to have the most reliable data you can. If you don’t have accurate data then you are making decisions based upon anecdotal information or simply guessing. Data gets old quickly, so it is essential to swiftly collect, incorporate checks and connect the right data points. Understanding the truth about your traffic and the impact of campaigns and other influences gives you the accuracy to target sales and increase performance. 

3. Be active 

Data only drives impact when you use the learnings.  Whether you are measuring the performance of a destination, street or store, get active about what you are measuring and what you aren’t and why. When building a picture of what is happening at a retail or leisure location, it is good to ask:

• What questions does the data answer? 
• What else would you like to know and are there any information gaps? 
• How can you add value for brand partners with a data sharing strategy that helps support shared goals? 

Looking for a digital de-clutter and support with your data strategy? Get in touch or meet us at Completely Retail Marketplace in London on 27 September 2022. If you are attending, we would be delighted to share our experience and demonstrate Retail Advantage at our Stand 114. 

The Innovation Forum is always a buzzy area at MAPIC, with delegates keen to hear about the key tools and latest tech offerings, so we were glad to be part of the Innovation panel at MAPIC DIGITAL. ART Software Group Director, Gareth Jordan discussed our analytics platform Retail Advantage and fresh approaches to data collection. Innovative approaches to leasing were also the order of the day’s discussion, with property owners, landlords and retailers keen to create more collaborative models. Matt Thompson, Head of Retail Strategy at Colliers International led the panel which also included Angela Maurer, Head of Innovation at Landsec and Maxim Karbasnikoff, Head of Retail & Property Management at ADG.

Lockdown gave destination teams the time to launch new innovative products much more quickly, which in turn is leading to new data feeds. Another angle that the last six months have highlighted is the people on the front lines of the industry and retail destination teams adapting to the changing consumer in an ever-changing situation, so Gareth Jordan of ART reiterated the important part that tech has to play: “I think what is important, going forward, particularly as we gain access to more data – that there needs to be a much more people-centric approach to ensure insights get to the people that need them, and that tools cater to the needs of individual users and their specific tasks and roles.”

From the use of data to find pinch points and design Covid-secure one way systems to data that supports the creation of shopping malls like neighbourhoods with community tools, the group agreed that it is integral to stay close to the consumer and constantly measure the impact of different actions and initiatives to understand where strategy needs to change.

Matt Thompson of Colliers raised the landlord/occupier relationship, which has been redefined this year, and the role that data has to play in improving this relationship with greater transparency. Angela Maurer, shared learnings from discussions that Landsec has had with their retailers, and commented: “it was really clear that in terms of the partnership that we need to have going forward – given the big structural challenges that we have in retail – that we can only solve these if we work together, and that includes the sharing of data… which was quite a defining moment.” Angela explained that unanimously everyone agreed that we have got to work together: “There is the community of consumers, but there is also the community of your retail businesses.”

Get in touch to design your data strategy to build community

Image Courtesy of Mapic & LeisurUp Digital

As much of the retail real estate and placemaking industry navigates disruption, we are sharing practical guidance coupled with inspiring insights from people with experience in their field. Blame it on the need for more physical exercise, or the fact that Wimbledon has just been cancelled due to Covid-19, as this week’s words again come courtesy of a professional athlete.

“Start where you are. Use what you have.  Do what you can.” – Professional tennis player, Arthur Ashe

Many things have been written about the Corona pandemic, but because the situation is unprecedented we have to start where we are, and do what we can with what we have. Retail is normally such a ferociously fast paced industry that a forced moment to pause, assess priorities, and perhaps pivot, could prove beneficial. Just like with data, there can sometimes be too much emphasis on gathering large quantities of information, whereas using what you have to gain analysis on what you need yields far more valuable insights.

Last month before the corona crisis escalated, I contributed an article about retail real estate for RLI magazine on the real revolution at play. ‘Never has the “real” in real estate held so much potential than today as customers tethered to their tech devices crave the satisfaction gained from authentic human connection, social experiences and physical places’ I wrote. 

Yes, all of that is on pause for the moment, but the ties to tech devices whilst people work from home, or seek entertainment during lockdown are only getting tighter. This will drive momentum in two ways – firstly it will accelerate digitalisation, but it will also make a shaken society rush to leisure destinations that serve security and a new warm welcome.

Stay safe, and please connect so we can help get architecture in place for your reopening.

Gratefully, Gareth Jordan and the ART Software team

At ART we feel it is important to prepare for a faster recovery than expected. Although the timeline is difficult to predict, recovery planning takes time and must start whilst businesses are reacting to the situation as it progresses day by day.

As retail maps its road in the recovery we are sharing insights from people with experience in their field: “Talent wins games, but teamwork and intelligence win championships” – Michael Jordan

Retail is at the forefront of inspiring teamwork – helping customers to get essential items in their baskets during this challenging time. Immediate access to data is also helping landlords and tenants with the timely intelligence they need.

Reaching partners and customers with reliable, relevant information is invaluable in normal times to improve operations and profitability, and it is proving particularly crucial now for critical communications. Business models will inevitably incorporate more technology and intelligence beyond crisis management.

Get in touch to discuss the architecture we can help you implement for recovery

Image courtesy of Creative Commons Flickr

Our experience shows that a data hub which provides clear analytics to both retailer and landlord can support what is sometimes an adversarial relationship.  The transparent sharing of information not only arms retail professionals with essential insights, it also paves the way for honest dialogue based on accurate data.

Drapers reports that dialogue, flexibility, and a willingness to trial new solutions are the key to strengthening this all-important relationship.  And as Edward Cooke, of Revo concludes: “There’s more that unites us than divides us.”Read the full Drapers article here

1.Pop-ups without products

From brands to apps, we are seeing an increasing number of players look to pop-ups in retail environments as a way of attracting customers that are not just shopping for products, but experiences.  This year will see the social and dating app Bumble continue to grow a physical presence with its Hive pop-up concept; a play on the beehive branding to offer entertainment activities and networking.  “They’ll be something no one’s seen in the space, and it won’t be a model that you’ve seen outside the space” said Whitney Wolfe Herd, founder and CEO of Bumble at this year’s TechCrunch Disrupt in San Francisco.

Fresh from the holiday, perhaps you watched Miracle on 34th Street this Christmas?  The film shows Macy’s Santa Claus serving customers by telling them where they can find the toys they’re looking for, even if that means sending them to shop elsewhere. The story showed it to be a huge success for Macy’s as people felt more aligned with the store they could trust.  Customers are increasingly shopping with their emotions instead of their wallets, which leads to our next trend…

2.The rise of cultural hubs 

Customers are looking to engage with companies outside of conventional shopping parameters, so brands are increasingly aligning themselves with cultural agendas.  Leaders are seeking diversity of thought and using their internal culture to convey brand identity.  This not only attracts customers but staff as millennials are pushing preferences for authenticity and social consciousness.

3.Data with purpose

Tools that measure change and unlock value are increasingly popular to support teams with a live view on data tailored to different roles or tasks. Fast access to data helps to develop the right tactics, decide how much to invest in each effort and how to prioritise opportunities. A tailored platform powered by real-time analytics can free up managers from day-to-day specifics, allowing them to survey the competitive landscape and effectively lead the business with purpose.

As we carve the future of retail and the spaces where we live, network and play, it will become increasingly important to measure success in new ways. Data will drive this as we innovate and experiment.

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We started MAPIC 2018 early at the International Outlet Summit, where ART Software Group director, Gareth Jordan took the stage for a panel discussion on The Connected Consumer Experience in Outlet Destinations.  The lively debate hosted by Mark Faithful, editor of Retail Property confirmed the importance of sharing information and connected working in order to satisfy the new connected customer.

Neinver’s European marketing and retail director, Sebastian Sommer commented “We need to provide a stage where guests and consumers want to be loyalty customers… This requires a lot of data sharing between outlets and retailers. We cannot underestimate how important this will be.”

There was also discussion about connections between outlet and full-price retail.  Nike’s senior director of real estate, construction and facilities EMEA, Fabien Stultz said the company was redefining its outlet store model and becoming more experience-led. “Discounts are no longer just in outlet centres,” he added.

ART’s director Gareth Jordan also commented on how changes in consumer patterns, with more focus on positive experiences are changing the way outlets and traditional retail portfolios are interacting with brands: “The gap and the difference between outlets and full-price retail is changing now. Brands that are in full-price retailing are more willing to work with shopping centres to share data. But the key is not how much you have to share – it’s what you do with it.”

Gareth elaborated on this point at the Innovation Forum on the opening day of MAPIC – showcasing ART’s data analytics and management solution Retail Advantage.

In this session, Gareth spoke about data with purpose: “Retail environments have access to more data than ever. In theory, this should be fuelling insights and informing decisions, but you have to treat it with purpose.” He expanded on the importance of connecting the right person with the right information at the right moment. 

“There has rightly been a huge push to deliver a connected customer experience. Retail Advantage expands this concept, communicating and sharing live information to create connected stores; supporting retail efforts. The aim is to help create a community where shopping centres and outlets can work together with tenants to get the best performance based on up-to-date information,” Gareth added. 

Reiterating the mood across MAPIC 2018 that tech may be transforming our reality, but it is also transforming our culture as we move into the future of connected retail.

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Visualise

Visual analysis helps more people see and understand data so you can unlock collective potential.  Disruptive times call for robust collaboration so we believe in creating a safe space to democratise data.  Retail portfolios run on data, but they also rely on clear communication. One cloud-based dashboard can provide customisable heat maps to measure KPIs and laser in on days, weeks, months or specific event periods. These learnings can also be viewed as tabular reports with 1-click and shared securely.

Automatically analyse in real-time

Moving forward from traditional spreadsheet methods allows you to achieve quality of data with software that can provide digital-validation and auditable system-assisted input.  When planning and operating a retail site you rely on data to answer key questions, so knowing the data at your fingertips is accurate and up-to-date is crucial.  Our experience shows that you get the most value from data when tools deliver a strategy-driven platform. Dashboards are designed for the individual at the moment of access and scaled for the benefit of the whole business.

Maximise all of your data, no matter where it is sourced

Do away with multiple spreadsheets that require constant attention from staff. Cloud solutions can leverage existing investments in data capture with automatic imports from multiple sources.  From traffic data to staff commentary or internally developed applications, it is important to easily interact with all of the data arranged to suit you from your desktop or smart device.  Bringing data together supports innovation with insight into all activities and true understanding of multiple locations and assets.

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We have reached a point where the quantity of connected devices means the ‘connected customer’ is really just the customer again. Online to offline or O2O is all about driving customers from their screens to stores.  Food and leisure activities are naturally enticing because they invite emotions that can only be fulfilled in the real world.  Customers want to connect with brands and products in a traditional physical way too, but that does not mean leaving their digital savviness at the door. Uniting data collection from online to offline is essential in a market where customers switch between channels.

O2O is often about streamlining service, but leveraging the unique opportunity in physical spaces relies on live events and the emotional side of the buying experience. Data can yield powerful actionable insight to help achieve positive emotional responses, but it’s not about quantity, it’s about quality.

Experiences are also about quality, so decision-makers need tools to innovate and investigate which events, promotions and environments work and why.  

From sales to footfall, social media to staff commentary, weather to WiFi; O2O is about connecting and leveraging data from across the business.  Put all of the channels you have to good use and both you and your customer will benefit.

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