CREJ

May 2021 — Retail Properties Quarterly — Page 23 www.crej.com cept that embraces a technology-first ethos. Its build-out, brand and menu options (standard, custom and hyper- personalized) cater to the post-iPhone customer. Ordering and counter- service/drive-up logistics are central to delivering its innovative products fast, fresh and hot with a “never- wait” service goal. Innovative twists on automats are reimagining food vending opera- tions from earlier times. Portland’s Pix-O-Matic fills its vending machine with fresh pastries daily, beginning at 10 a.m. In Jersey City, New Jersey, Automat Kitchen enables customers to pick up fresh-made orders with a single food bag touch via phone-acti- vated lockers inside the restaurant. And a Brooklyn, New York-based dumpling shop refers to its opera- tions as “zero human interaction,” revolutionizing fast-casual dining with its version of contactless order and pickup. n Retail demand. A first-quarter Shopping Center Business story notes that that pent-up experiential retail demand is real: Entrenched cabin fever set in during the pan- demic lockdown and shoppers are ready for engaging retail opportuni- ties. Consumers have expressed a desire for items as diverse as: • Champagne to celebrate reunions with friends and family; • Shaving kits to neaten up pan- demic scruff; and • Wardrobe additions like footwear and dresses to look fresh for newly planned occasions. Clothing sales are up 18.3% as shoppers retire pan- demic wardrobes. In their most recent “How America Shops” report, WSL Retail Strategies notes that consumer optimism is as prevalent now as it was prepan- demic. Another study of 15,000 mall shoppers in nine countries issued by IBM’s Institute of Business Value indicates that 73% of these brick- and-mortar fans plan to return to their favorite properties once vac- cinated. Like many other states, Colorado’s residents are returning to in-person experiences, as measured by cell- phone foot traffic data aggregated by SafeGraph in March. More than any other activity, Centennial State resi- dents want to head to the movies. Gyms, restaurants and grocery stores are the next most popular destina- tions with traffic gains of 40% to 83% since late 2020. n Retail changes will remain – oth- ers will expand. E-commerce growth has been significant over the last 15-plus years, but COVID-19 pushed the phenomenon more than anyone might have fathomed. The ease of searching, clicking and buying with quick, doorstep delivery via Amazon and others is real, and it will take significant effort to compete with this convenient habit. Also real is the “buy online, pick up in store” phenomenon. As a suc- cessful strategy to bring shoppers to retail locations, the channel became a survival must-have during the pandemic. Shopping centers that once featured only mandated handi- capped parking spots and comple- mentary ones for expectant moth- ers quickly expanded their BOPIS asphalt real estate, including new store-to-car delivery service via spe- cial pickup lanes. Like restaurants, some retail changes will persist beyond the pan- demic, such as contactless shopping and checkout. We are seeing recon- figured store footprints, layouts and merchandising inclusive of customer safety, hygiene and efficiencies. For example, Best Buy is testing smaller- format stores, which will devote more square footage to fulfilling online orders than displaying large- screen TVs, and Target’s chief operat- ing officer has committed to contact- less restrooms. Walmart and Kroger both announced plans to invest in automation to keep up with roaring increases in online grocery orders. n We’re ready to roar, too. Our com- pany also is returning to prepan- demic traditions. We’ve attended the Colorado Rockies’ home opener for a decade or more, and this year was both the same and very differ- ent. The first home game celebrates the change from winter to spring, and daylight savings time kicks in to reveal gorgeous, late evening sunsets from Coors Field. Camaraderie grows through the joy of being outdoors, shared bags of roasted peanuts and rooting for the home team together (no matter its performance). Today’s current level of renewed optimism and socialization makes it clear there’s no need to wear Gatsby suits or to unify around a single baseball standout to experience this century’s potential Roaring ’20s period. As Col- orado continues to ease restrictions on dining, retail, events and more, we are incredibly grateful for how every day now feels like a home opener. s Market Forecast Tim Gillies One major change due to the pandemic was the increase in outdoor dining. The city of Denver is enabling restaurants to retain their expanded outdoor service areas through October 2022.