Philadelphia-area malls are replacing stores with ‘experiences’
Co-chair of Herrick's Real Estate Department, Jonathan A. Adelsberg, was quoted in an article from the Philadelphia Business Journal discussing the influx of experiential retailers to Philadelphia-area malls in response to consumer demands for unique and immersive shopping experiences. The article notes that consumers are craving more than just a transaction, but a meaningful interaction. These retail experiences can vary, "such as an athleisure store hosting a workout class or a kitchenware shop holding a cooking demonstration."
Despite their current appeal, the long-term success and sustainability of experiential retailers is still to be determined, according to Jonathan. As co-chair of Herrick's Real Estate Department, Jonathan negotiates lease terms for retail brands in malls and shopping centers. Many of the concepts that are currently popular may not be a few years from now, he said, given that the retail environment and consumer preferences are constantly evolving.
The article highlighted that one concern is over saturation of experience driven malls. "It doesn't work if you have malls within five miles of each other offering the same type of activity," Jonathan explained. Because of this, he added, some malls will survive, while others will shutter and either be demolished or converted to new uses.
Read the full article in the Philadelphia Business Journal here. Access may require a subscription.