Q2 2024: Open Air Retail
a sociological perspective
The resurgence of open-air retail is defying the odds by capitalizing on consumer preferences and challenging the narrative of a declining brick-and-mortar retail sector. Recent acquisitions and partnerships underline the growing interest in these retail formats. This trend is fueled by various factors, including the flexibility of tenants, the experiential nature of open-air environments, and the convenience they offer consumers. This is especially true amid the rise of hybrid work arrangements and the enduring appeal of ready accessibility.
Despite the dominance of e-commerce, open-air retail continues to thrive, with increasing demand for space, positive foot traffic trends, and notable tenant demand. These centers attract service-oriented businesses, discount grocers, and fast-casual restaurants, catering to changing consumer habits and preferences. Additionally, open-air retail benefits from repurposing empty big-box store spaces and provides a convenient and visible destination for consumers, contributing to its resilience in the evolving retail landscape. [12]
The Role of Aesthetics
Once the consumer has opted for a brick-and-mortar experience, it’s important to consider the interior environment. Recent studies in consumer behaviors have demonstrated that shoppers showed greater impulse buying intentions in orderly spaces than disorderly ones. [13]
There are many practical implications to enhance impulse buying by organizing spaces which starts as early as the design stages, ensuring the space is conducive to orderliness.
[12] Levitt, D. M. (2024, May 20). Open air retail defies the odds with service-oriented businesses. Commercial Observer. https://commercialobserver.com/2024/05/open-air-retail-2024-investment/[13] Shi, Y., & Joo, J. (2023). Effect of Space Order on Impulse Buying: Moderated by Self-Construal. Behavioral Sciences, 13(8), 638-. https://doi.org/10.3390/bs13080638