By André Stromeyer
Success in the retail sector needs to be redefined. Traditional KPIs, such as sales per square meter, are no longer sufficient when it comes to measuring the success of a retail outlet. In today’s retail landscape, customers are looking for more than just products – they’re looking for experiences as well. A successful retail property is characterized by its ability to emotionally appeal to customers and to offer them unforgettable experiences.
The challenge is to create comfortable, welcoming places. In recent years, HBB has increasingly focused on enhancing its properties with leisure and entertainment concepts as well as experiencing gastronomy and the right ambience. As a result, the property is transformed into a “Third Place”, offering a high quality of stay that shopping at home on the sofa simply can’t match. Both retailers and property owners need to identify and incorporate what contributes to people’s well-being (to ensure that they keep coming back).
An Experience For All Of The Senses
Nowadays, shopping or a trip to a shopping center needs to be an experience for all the senses. Multi-sensory experiences not only enhance the customer experience, but they also increase dwell time and, ultimately, sales. Music and lighting also play significant roles when it comes to enhancing the mood and creating an inviting environment.
The FORUM Schwanthalerhöhe in Munich, which we developed and manage, is a good example of how essential it is to continuously adapt to new circumstances and environments. There were a number of hurdles that had to be overcome at the beginning of the development of the center: The opening was delayed because the general contractor did not complete the project on time, and the pandemic followed hot on the heels of the opening. Major construction sites around the building impaired both the visibility and accessibility of the property, which was still in the establishment phase. The underlying conditions of the rental market and consumer behavior have changed significantly in recent years.
As a result, the FORUM is being repositioned as a mixed-use property and unique location with innovative concepts, a strong focus on entertainment and leisure, as well as a gastronomy offering that is appropriate to the location. That way, the property is being prepared for the future. We have already started using new technologies such as AI-generated key visuals – which are animated, extraordinary, and future-proof.
How Can Space Be Rethought?
Today, it is not always possible or desirable to occupy all of the space within a shopping center with retail, for example. The right mix of uses can revitalize footfall at a shopping location. Shopping centers have been in a state of change for some time now, and they have to be.
The days of them being “pure sales machines” are over. As a result, shopping centers need to create alternative incentives for visitors that go beyond simply buying products. Customers’ free time is limited, and they want or need to find everything that they would like to do and experience at a center. Therefore, we have decided to combine shopping with suitable gastronomy concepts, leisure activities, and various service offers in order to create a high quality of stay, and to offer additional services. Shopping centers have to be transformed into social meeting places, and they must be unique.
Shared and Co-Working Spaces: Converting unused retail space into co-working spaces can attract new target groups, such as freelancers and start-ups, while also ensuring greater customer loyalty thanks to repeat visitors. At Forum Hanau, Hanau City Library provides every resident of the city and the region with access to information, education, and entertainment via an up-to-date, diverse media collection, library services, and modern information technology. VHS-Zentrum Nord, a branch of Frankfurt’s adult education center, can be found at NordWestZentrum (NWZ). More than 350 courses and events are offered in 14 modern classrooms. Rathaus Galerie Wuppertal is home to the Institute of Psychology at the University of Wuppertal, which offers visitors to the center the opportunity to take part in psychological studies, some of which offer participants a “small financial incentive”.
Mixed Use: Retail space can be flexibly utilized by creating space for pop-up stores, events, and communal areas, increasing the attractiveness of a location and creating variety for customers. These days, the pop-up concept’s primary function is to offer customers something special and give retailers or start-ups the opportunity to try things out. HBB has been focused on this particular issue for years, using its own “Pop-Up by HBB” banner, which acts as an incubator for new brands and concepts. Along with the respective retailers, we test concepts there, and if they work well, the retailers move to other spaces on a more long-term basis. Such stores are equipped with a modular shopfitting system and various fixtures.
Community Building: Retail spaces can become places in which members of the local community meet and exchange ideas. Shopping centers turn into meeting places and sources of inspiration, which fosters stronger customer loyalty and transforms the locations into social hubs. We’ve been pursuing this concept for years, via our social pop-ups, such as our Munich-based blood drives and the co-organization of the Westend Art and Culture Days at FORUM Schwanthalerhöhe, or the Burgplatz Sommer at Petersbogen Leipzig in cooperation with the city of Leipzig, the Brothers Grimm Days in collaboration with the city of Hanau and Hanau Marketing, and a carnival event at Forum Gummersbach in cooperation with the local dance corps. Emre Can’s brand AECE’s first successful pop-up store at NWZ was another highlight, which was particularly significant as he grew up in the north-west of the city.
Experience at the Center: The focus here is on creating multi-sensory experiences that cannot be replicated online. That can take the form of interactive displays, workshops, events, or gastronomic offerings. We constantly strive to develop and offer new concepts and services – individually tailored to the respective location, without following a standardized approach. For example, we offer workshops such as the “Temple of Arts!” at the NWZ in collaboration with Eyecandy Frankfurt, which builds unique bridges between artists and those interested in art. The aim is to bring art and culture to life.
The extremely successful autograph session with 1. FC Magdeburg at Florapark Magdeburg was another highlight, as were the popular salsa evenings that took place at various centers. We also organize exhibitions such as the “Social Heroes of Langenhagen” at CCL Langenhagen and have successfully used our interactive multiball wall at several locations. “The Dark Side of the Petersbogen”, a spectacular event at Petersbogen Leipzig, which coincides with the Wave Gothic festival in Leipzig, was another particular highlight worth mentioning. Various artists have held their promotional tours at our centers – most recently, a particularly successful one by Eko Fresh featuring his new album “Elijah”. In summary: Brick-and-mortar retailers and retail real estate operators must adapt to the changing expectations and needs of customers if they wish to remain relevant and successful.
André Stromeyer
André Stromeyer is the Managing Director at HBB Centermanagement.
