With Apple’s decision to drop the word “store” from its branding efforts and redesign 95 of its stores into “town squares,” it’s apparent that the tech giant is taking note of the changing brick-and-mortar environment. As opposed to just selling products, Apple will offer classes and workshops for children and adults alike, and bring in local artists and musicians to perform.
Whole Foods is on the same track with its 365 by Whole Foods-branded stores, which will complement its products with those from independent businesses. Even brands such as Bed Bath & Beyond and Barnes & Noble have entered the experiential space, committing to open concept stores that serve alcohol so shoppers can extend their stay.
The RTP team weighs in on what the establishment of these “town squares” signals in the ongoing evolution of the brick-and-mortar store, and whether they will be another nail in the coffin of traditional malls.
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Debbie Hauss, Editor-in-Chief: The evolution of this town square concept — also called eat-shop-live — is a reflection of consumer preferences for convenience and experience. Case in point: If you search “eat shop live” on Google you get more than 7 million results. This will likely be the direction malls are headed. While America’s first shopping mall, in Providence, R.I., went the way of micro-apartments, other malls will likely convert into a combination of living spaces, retail and hospitality. At least one retailer is taking charge of the concept by purchasing land around its store and filling the nearby space with complementary businesses. Dallas-based and Warren Buffett-backed Nebraska Furniture Mart owns an extensive parcel of land next to its immense store and is interviewing potential retail clients that align with the tech-savvy retailer’s strategies. This is definitely a trend to watch and one that is here to stay.
Adam Blair, Executive Editor: The “town square” concept sounded more than a little gimmick-y to me when I first heard about it, but the more I’ve read about it the more it makes sense. In many ways it’s a throwback to a very basic retail concept: the more time people spend in a retail space, the more likely they are to buy something. It’s a kinder, gentler version of placing the milk and eggs the furthest away from the supermarket entrance, which forces shoppers to snake through multiple aisles in search of necessities. In this case, people want to stay in order to explore, relax, take a class or just listen to some music. The Samsung 837 store in New York City’s Meatpacking district — which showcases products but doesn’t sell anything within its four walls — is a perfect example of this type of town square in an urban setting. Retailers should pay attention to the “bonfire effect,” which identifies places that can gather people around their products and services because of a unique kind of emotional purchase they can’t find elsewhere. Brick-and-mortar retailers will need these kinds of sparks to thrive in our increasingly digital economy.
Alicia Fiorletta Esposito, Content Strategist: Brands like Apple and Whole Foods realize that consumers have access to more product and brand options than ever before. If they want low prices, great discounts and an in-and-out type shopping experience, they can go online or to the myriad other big box retailers in their area. By implementing a “town square” environment, Apple is turning its locations into hubs for local, tight-knit communities. I think this will be a trend that spreads across different categories, and what I can’t wait to see is how these types of businesses adapt the town square concept to their own unique businesses and products. I don’t think this will be a rapid transition — I think it will be ongoing, with a few use cases trickling in over the next few years. In addition, I don’t think this will mark the “death” of malls or even traditional stores; I think we’ll just see all of these formats evolve so they revolve around this community or “bonfire” concept. What will be interesting to see, though, is how all these stores will use technology and other tactics to make these experiences more immersive, relevant and memorable.
David DeZuzio, Managing Editor: As brick-and-mortar retail evolves, turning traditional stores into town squares isn’t just a great idea; it is necessary. If consumers are going to go to the trouble of getting out to a physical store and eschew the convenience of online, it has to be an immersive, engaging experience. According to the “Bonfire Effect” there is too much focus on the commonplace drivers — price, variety, convenience, and even service and quality — and every shopper knows they can probably get whatever they’re looking for cheaper on Amazon. So it is essential for retailers to focus on the emotional aspect of the trip. They’re not just selling to a bunch of faceless consumers anymore, they’re selling to “you”. Strangely, Bed Bath & Beyond’s plans to allow consumers to enjoy a nice adult beverage as they shopped reminded me of being in a casino. The only thing they need to do now is block out the windows, remove all the clocks and people can be there all day and shop the kids’ college funds away. All kidding aside, will this be another nail in the coffin of the traditional mall? In soft markets, yes; almost definitely — but nothing will happen overnight. It will be interesting to see how retailers try to adapt this new model to their own stores and who really nails it. Like anything else, if all retailers offer a town square experience, it’s not that special, is it? So, not only do retailers have to embrace this concept, they have to immediately start thinking how to outdo the other guys. Good luck!
Klaudia Tirico, Features Editor: The “town square” concept being implemented by Apple and Whole Foods seems like a great next step for retailers looking to gain more foot traffic in their stores. Experiential retail has grown in popularity, mainly because consumers — especially Millennials and Gen Z — are always looking for a unique experience that they can share on social media. So why not give the people what they want? Additionally, I think this is a great way to give people a sense of community — especially when the country is so divided. This concept can truly bring people with similar interests (such as food tastes or loyalty to a certain electronics giant) together. Whether this will put another nail in the coffin of traditional malls, I’m not so sure. I don’t see why these two store types can’t coexist. And I also don’t understand why the traditional mall can’t be made into a “town square” of its own. I personally see my local Westfield mall in Northern New Jersey as one already. Between the great restaurant and retail store selection to a variety of events hosted in large common meeting areas (such as fashion shows and virtual reality demonstrations), it’s already providing consumers with an experience they may not find when they’re shopping online or even in stand-alone stores. Either way, I think a retailer or mall that wants to bring people together has already won in my book.
Glenn Taylor, Senior Editor: The ever-changing state of consumer demands has led to a massive change in the role of the retail store, forcing merchants to experiment with different ideas that ironically turn back the clock. Whether through malls or strip malls, brick-and-mortar shopping can convey an impersonal atmosphere, particularly when you walk into one store, then down to the next just to see a whole new batch of products being sold. While admittedly a good portion of individual retailers have done a great job of enhancing the store experience through associate interaction and technology integration, the actual “feel” of a major shopping center doesn’t carry quite the same charm as that of a mom-and-pop “Main Street,” where business owners, employees and shoppers alike largely knew each other. This “town square” idea appears to deliver a similar concept that encourages consumers to not only shop, but hang around to take a class or even meet new people. I don’t think malls will die out any time soon as they still provide an outlet to shop while getting away from everything else in life, but their decreasing foot traffic does show that more mall-based retailers should at least examine where the town square concept may benefit them.
