CREJ

Page 2 — Retail Properties Quarterly — February 2019 www.crej.com Contents Letter from the Editor T hroughout this issue, you’ll read about a couple of major retail trends happening right now, including the importance of omnichannel strategies for retailers and right-sizing real estate footprints.Target, a retail giant, is tak- ing many of these trends to heart, shared Ashlee Justis, aTarget store team leader, who spoke at the Colorado Real Estate Journal’s 2019 Retail Sum- mit and Expo in January. The company equates its “amaz- ing” fourth-quarter numbers to an investment strategy that is focusing on revamping many of its current stores, she said. Based on customer feedback, Target guests still want to come to the store and talk to a trained expert about certain purchases; they also love its brands. However, the company found that in order to satisfy customers, it needed to get a bit more advanced with conve- nience-oriented, quick shopping expe- riences, Justis said.This means guests want the option to order online and pick up in stores, leading to the cre- ation of drive-up pick-up areas, which are “booming with guest satisfaction,” she said. In addition to adding pick-up areas, the company is remodeling many of the existing, larger stores, including a location in Stapleton, which is the first Target remodel in the region.The goal is to make it feel “newer, fresher and energized,” Justis said.While customer areas will get a face-lift,Target also will repurpose some of that space as fulfill- ment centers to help grow its digital market. Justis said that these remodels aren’t just happening at underperforming stores.The GlendaleTarget, one of the busiest Targets in the nation, will be remodeled as well in order to keep up, continue to adapt and embrace its omnichannel strategies. For new stores,Target is moving away from the larger footprints to smaller prototypes, with the majority of the 22 stores set to open in the next two years falling under this category, Justis said.These footprints are important to Target’s strategy because it allows the company to get into neighborhoods it previously hadn’t been in, such as central business districts, college cam- puses and dense, urban markets, Justis said.The 16th Street Mall location is an example of this prototype. Within these smaller footprints, food and beverage becomes a bigger busi- ness component, equating to roughly 35 percent of the overall business.The grab-and-go options, catering to busy customers common in these demo- graphics, makes up a large portion of this business.While it hasn’t happened in the Colorado stores yet, delivery ser- vices are beginning as well. Justis said she’s hoping it will roll out here soon. In the days of changing consumer habits,Target’s outlook seems indica- tive of many trends successful retailers are embracing. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104 Target exemplifies trends Denver’s retail industry continues to improve Drew Isaac and Ryan Bowlby Lending expectations for preferred property types Peter Keepper Investor sentiments and trends in retail real estate Chad Murray and Jason Schmidt Retailers push Denver closer to top-tier status Matt Writt Public-private partnership galvanizes West Colfax William P. Marino and Thomas M. Yockey As retail evolves, so too should our perspective Corey Sandberg How Sears is paring down its Colorado footprint Gwen Roush and Erin Stafford Online business models add physical locations Michael R. J. McKenzie Beer sales in grocery stores will impact retailers Glen Weinberg Airport dining: Reaching new heights at DIA Chris von Eckartsberg A look ahead: What will 2019 bring for retail trends Mike Willingham Leasing technology offers tools for savvy managers Ross Carpenter Cherry Creek North reports surge in activity Brian Phetteplace 4 6 7 8 9 10 11 12 13 14 15 16 17