Baby Boomers are retiring at record numbers and Millennials are now the economic powerhouse shaping retail. These rapidly shifting consumer demographics and evolving economic factors are driving retailers to roll out new store concepts almost weekly.
According to a 2015 Price Waterhouse Coopers report, “Retailing will become an industry that realizes, more and more, that it must tailor its offerings to select customers, as opposed to the mass appeal approach of the 1980s, in order to win over customers and foster greater customer loyalty.”
In response to changing dynamics in the marketplace, big box retailers like Sears, Target, Home Depot, Best Buy and Walmart are opening new, smaller urban stores, and partnering with other retailers to provide niche services and non-competitive products inside their stores. Online retailers are now opening brick-and-mortar store fronts, and new concept stores like Lululemon, Theory+, Zara Home and others are also moving in.
How do these dramatic changes impact facilities management (FM)? Some FM departments play an integral role in the evolution of their brand. They are invited into the planning process, involved in store development and changes, and provide invaluable input on the total cost of ownership when new designs are being considered, changes are being planned and new stores are being built.
Other FM departments play catchup after new concepts are rolling out, which often leaves them maintaining stores they cannot operate efficiently. The new concepts do not fit into existing maintenance profiles and can potentially fail, due to unexpected facilities costs.
Changes are coming rapidly and will continue to come. Savvy FM executives ensure they are included in every new design, and store change. They get involved when Marketing is planning new concepts, long before any design work starts.
How do you secure your seat at the table? You begin by statistically proving FM value and presenting that value to the right strategic audience within your organization. Need some guidance in getting started? PRSM provides the networking opportunities and tools you need to validate your FM value and help you get ahead of the retail tidal wave.