California Centers

MAY 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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32 California Centers Magazine | May 2018 C C The Trails at Silverdale in Silverdale, Washington, creates an atmosphere for neighboring residents that encourages spending time at the center. in-store connection can lead to an ex- panded shopping experience around items they already have identified online." A well-rounded mix of inter- net-proof, free- and fee-based activi- ties can also strengthen the draw of a shopping center. "Tfhere are few stimuli that are as rewarding to Gen Z as screen time," Taylor says. "They are great food, the endorphins from exercise, and nature and physical beauty worth experienc- ing and photographing." Booty believes healthy, build-your- own quick-service restaurant con- cepts and interactive, photo-worthy cosmetics will be two bright spots for the shopping center environment in the near future. "Beauty retailers like Sephora thrive in the physical retail space," he says. "Consumers prefer to try on cos- metics, fragrances and other products to see how they look, fell, smell, etc., in person. This is especially true with the younger generation that has not developed brand loyalty, and more frequently experiments with different products and styles. Among Gen Z, a trip to the cosmetics store is a popular social outing as well." Speaking of loyalty, the punch cards and point systems of loyalty programs' past aren't effective on to- day's youth. "Our research shows that trying to gain the loyalty of Gen Z via tra- ditional loyalty programs, cards and promotions is a losing battle," Merri- man notes in her report. "No matter how we asked Gen Z, they are simply much less interested in these things. For instance, the percentage who say a loyalty program makes a store spe- cial to them drops from 45 percent for Millennials to 30 percent for Gen Z. The drop-offs are even more dramatic for interest in shopper cards and spe- cial events." Gen Z may not appreciate rewards cards and frequent-buyer programs, but that doesn't necessarily mean they're not loyal. It simply means you have to give them what they want. While past generations made it easy for retailers to dictate the cool products, access to more information via the web means Gen Z's scope of what's attractive to them is much larger. They take cues from various aspects of life, including social media influencers, global trends and local merchants, as well as their own two eyes. After all, a generation raised with the amount of political, social, economical and technological change and turmoil as this one isn't about to let a corporate conglomerate tell them what to buy. They'd rather base their opinions on their own experiences — so that experience better be a good one. "Gen Z will become the targeted consumer," Sigal asserts. "And they are loyal. The number of visits they have per store will increase once they form a relationship with the owner of a store. Centers will have to evolve to demonstrate their commitment to that community, and be able to con- vey the story of what the experience of the center means to those who fre- quent it." CC Cafe Gratitude is a chain of six cafes in hip locations across Southern California.

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