Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Retail Trends for 2022

by 
Shira Petrack
 on 
December 14, 2021
Retail Trends for 2022

The pandemic has infused new life into brick and mortar retail. But retail’s potential will not actualize itself – retailers need to actively adapt their strategies and seize the opportunities presented by this unique moment in time. Our latest white paper examines eight key trends that emerged from the pandemic and that will continue to have a major impact on the retail sector going into 2022. This blog presents a taste of our findings. For the full analysis, you can read the white paper here

Comprehensive Approach to Omnichannel is a Must 

More and more retailers understand the business advantages of having an omnichannel strategy that blends brick and mortar stores with digital channels to create a more harmonized and holistic approach to retail. Rather than framing online and physical sales as battling in a zero-sum contest, the two channels need to be leveraged together to provide a better overall experience for the customer. 

The key for retailers is to focus on the unique benefits that online and offline channels provide and to build experiences around these strengths. For example, brick and mortar is still more effective at enabling real product discovery and allows customers the ability to touch and feel the items they are interested in and to try on products. Even if the ultimate purchase takes place through a digital channel, it is still fundamentally enabled and improved by the physical store experience. There is also the added ability to provide a truly authentic brand experience in a location. The result is a deeper relationship with the customer and the capacity to leverage experiential strategies.

Retailers like Target and Best Buy have led the way with their omnichannel capabilities, and the success they have had is directly related to these efforts. Going into 2022, expect more brands to drive a heavy focus on offering customers a cross-channel experience that allows them to pick their ideal route to buying specific products. 

Digitally Native’s Brick and Mortar Future

Digitally native brands (DNBs) have a unique perspective on the potential of omnichannel shopping. While most traditional retailers used stores as a starting point and then moved online, the online-only approach that these brands pioneered provided the key, and often only, path to early growth. Yet, many are now turning to physical locations to help expand the potential success – and this shift is incredibly important. The push for physical expansion and the exceptional growth it has provided for DNBs like Warby Parker, Allbirds, Everlane, and even Amazon, is critical not just because of the early success, but also for the wider implications.

For many, the shift of DNBs offline presents one of the most powerful testaments to the importance of brick-and-mortar locations. These brands are proving that wider omnichannel approaches are critical to driving growth, and when considered comprehensively, enable them to maximize the impact of each location. The fact that these brands are renowned for their data-driven approach to growth and deep understanding of customers only reinforces the impact. 

Should the trend continue to hold, the impact on the retail real estate ecosystem could be even more significant. The entry of more chains into the mix creates a greater level of brand diversity and offers a wide, new pool of potential tenants. The result is more optionality, more diversity and an infusion of fresh retail perspectives into the mix. For the shopping centers, downtown areas, and malls that can attract these rising chains, the effect could be significant. As a result, expect attracting top-tier DNBs to be among the key trends in the coming year.

Small-Format Stores – The Next Big Thing? 

During the summer, Target began the process of opening dozens of Ulta shops-in-shop. At the same time, the initial batch of 200 Sephora stores opened within Kohl’s locations. But it wasn’t just top retail giants launching new concepts. Though in a different format, department stores also adopted the small-concept store trend this year. Macy’s launched three “off-mall” store formats of Market by Macy’s, while Bloomingdale's opened its first small Bloomie’s store in Fairfax, Virginia. These small-concept department stores focus mainly on the customer’s experience, offering a curated assortment of products, which rotate frequently. Bloomies offers alterations, a drop box for returns and appointments with stylists. The stores also support the retailers’ fulfillment capabilities, especially when it comes to buy online, pick up in-store (BOPIS).

A comparison of Bloomie’s in Fairfax, Virginia, and adjacent Bloomingdale's in Tysons Corner Center from the past three months showed some fascinating differences. First, Bloomie’s attracted visitors from a much closer radius than Bloomingdale's did. While around only 40% of Bloomindale’s visitors came from a 10 mile radius, Bloomie’s saw nearly 70% of its visitors arrive from that distance. At the same time, Bloomie's witnessed a significantly higher median length of stay than Bloomingdale's did – 44 minutes median stay for Bloomie’s compared to 31 minutes for the nearby Bloomingdale’s.

These differences point to a critical factor that defines these newer formats - they are complementary to the existing strength the department store brands have already shown. Whereas Bloomingdale’s gains strength from the mall format it generally calls home, Bloomie’s smaller footprint enables locations in different types of areas, which offers the ability to better target certain segments and to align merchandising accordingly.

Yet, the bigger takeaway may be the willingness that more retailers are showing to testing new concepts in new markets as a means to better optimize their overall ability to reach customers. Expect these tests to drive wider adoption and interest in pushing new boundaries – especially for more established retailers looking to diversify their mix.

The Impact of COVID

Following the extended period of time during which shopping took place primarily online, consumers and retailers alike are now more aware than ever of brick and mortar’s unique value propositions. Consumers have a new appreciation of the social experience of in-person shopping, the possibilities for product discovery, and the customer service guidance and support that is difficult to replicate online. Retailers understand the brand-building capabilities, customer acquisitions potential, and logistical support that only physical stores provide. 

A major window of opportunity for retail is now open – and at the same time, the retail landscape is consolidating. Brands that fail to adapt their approach may lose ground and fall by the wayside. In order to gain a competitive edge, brands need to understand the shifts in both consumer expectations and in leading retailers’ strategies. We presented here three trends shaping retail today that highlight the changes that have taken place over the past two years. 

The full analysis can be found in our free white paper

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024: Placer.ai’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains
Placer.ai Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance
Placer.ai White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top
Placer.ai and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap
Placer.ai Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season
Placer.ai White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season
Placer.ai Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success
Placer.ai White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023
Placer.ai Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023
Blockbusters Drive Movie Theater Comeback
Crocs and Boot Barn: Shoe-Ins for Success
McDonald’s and Chipotle's Winning Recipe
The State Of Steak: Checking in With Texas Roadhouse
Pleasant Pastimes: Pickleball Potential Proves Potent
Who’s Driving Downtown Manhattan’s Weekend Revival?
Diving into Downtown Manhattan Foot Traffic Trends
Rite Aid: Rightsizing Right
Major League Soccer: Its Die-Hard and Casual Fans
The Anchor Recap: September 2023
Placer.ai Office Index: September 2023 Recap
Placer Mall Index Recap: September 2023
September White Paper Recap
The Consumer Habits of College Students
JCPenney: Rightsizing and Revitalizing
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023
Placer.ai Office Index: August 2023 Recap
Placer.ai Mall Index: August 2023 Recap