{"id":173727,"date":"2023-01-30T23:54:07","date_gmt":"2023-01-31T06:54:07","guid":{"rendered":"https:\/\/inbusinessphx.com\/?p=173727"},"modified":"2023-01-30T23:54:07","modified_gmt":"2023-01-31T06:54:07","slug":"retail-on-top-why-brick-and-mortar-businesses-are-booming","status":"publish","type":"post","link":"https:\/\/staging.inbusinessphx.com\/?p=173727","title":{"rendered":"Retail on Top: Why Brick-and-Mortar Businesses Are Booming"},"content":{"rendered":"
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Scottsdale Fashion Square LUX Exterior. Courtesy of Scottsdale Fashion Square<\/figcaption><\/figure>\n

Commerce makes the world go \u2018round, and retail is its end play. With all the shifting and challenges of recent years, In Business Magazine<\/i> decided to take a look at retail\u2019s brick-and-mortar component, where transactions are made with a human connection.<\/p>\n

Here\u2019s the human voice of retail enterprises that span merchandise and service, from one-shop businesses to those aggressively expanding, and from independent location to destination shopping.\u00a0<\/span><\/p>\n

The powerhouse of destination shopping is the shopping mall. Ryan Sarbinoff explores this retail concept from a commercial real estate perspective in the accompanying article, \u201cEvolution of Retail and Malls in the Phoenix Metro,\u201d while we start our shopping spree at Valley gem Scottsdale Fashion Square<\/a>.<\/p>\n

Retail Concept<\/b><\/h3>\n

\u201cScottsdale and Greater Phoenix make up one of the fastest-growing markets in the U.S.,\u201d says Kim Choukalas, senior vice president of leasing for Macerich, the real estate investment trust that operates many of the Valley\u2019s shopping centers, including Scottsdale Fashion Square. She explains that, with an increasing tech presence as well as long-standing visitor credentials and a world-class resort infrastructure, the region has been an amazingly buoyant market and luxury destination. And she notes, \u201cThis is a market that loves retail: Scottsdale residents spend 50% more on retail goods than the nation overall.\u201d<\/p>\n

To respond to these customers, Scottsdale Fashion Square debuted its luxury wing in 2018, with high-end design elements and amenities carefully considered to be just right for the incredible luxury brands that call this center home. \u201cBy every measure, the luxury redevelopment has been a tremendous success,\u201d Choukalas says, citing an enviable collection of new-to-market and pure luxury brands from Louis Vuitton, Brunello Cucinelli, Cartier, Saint Laurent, Bottega Veneta, Dior the mall has already attracted, with more to come. \u201cMany of these brands remain the first and only in Arizona,\u201d she notes. \u201cNow, the success of luxury is inspiring more top brands to choose Scottsdale Fashion Square.\u201d<\/p>\n

\u201cLocal\u201d is a key part of the motivating ethic at Agritopia<\/a> in the East Valley, where Johnston & Co. is developing mixed-use Epicenter<\/a> to have a strong retail component. \u201cAt Epicenter, we really focused on trying to get some of the best of Arizona, focused on food, health\/wellness and lifestyle,\u201d says CEO William Johnston. The merchandising plan focuses on having different users for different day parts \u2014 different businesses that can thrive throughout the day, that are very experiential and that are unique. \u201cI think those are two things that are really important for retail and restaurants these days. There has to be something that sets them apart from everything else, and for us we really tried to hand-select and hand-pick and really spent time building relationships with each of the businesses that come into Epicenter,\u201d Johnston says, adding, \u201cThe tenants that we have coming in, the businesses are well-known in the Valley and they do a fantastic job of being a great place for people to come and feel like they\u2019re part of something outside of just a generic location. And so, feeling connected to the space and the business I think really sets certain restaurants and retailers apart.\u201d<\/p>\n

For Johnston, there is an added dimension to the selection. \u201cPart of our goal for Epicenter was to add more uses and more businesses that allowed Agritopia and the surrounding neighborhoods to be even more walkable \u2014 where you don\u2019t have to get in your car\u201d to go find what you need, he explains. \u201cHowever, that being said, we want to be a local regional draw, and so we\u2019re pulling from outside of just Agritopia or the neighboring communities\u201d \u2014 and specifically aiming to fill some of the needs that market research had identified. For example, \u201cWe had people saying we really want to have a higher-end, sit-down, date-night kind of restaurant.\u201d So, Belly Kitchen & Bar, a full-service Vietnamese restaurant from Phoenix, is now open, with well-known local restaurant Buck & Rider planned to open later this year.\u00a0<\/span><\/p>\n

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Courtesy of Downtown Tempe<\/figcaption><\/figure>\n

Downtown Tempe is another destination shopping area. \u201cIt offers a unique shopping experience, attracting people from all walks of life \u2014 visitors, office workers, residents, students, and families,\u201d says Lori Foster, chief strategy officer with the Downtown Tempe Authority<\/a>. \u201cThe urban, energetic vibe, along with the tree-lined brick walkways lead to shopping destinations you can\u2019t get anywhere else \u2014 literally. Over 67% of the businesses in downtown Tempe are local and independently owned and offer an eclectic mix of retail.\u201d Plus, she notes, \u201cThe many modes of transportation servicing downtown Tempe, including the light rail, Tempe Streetcar, oodles of bike lanes and scooter access, make it accessible for all.\u201d<\/p>\n

Samir Sandesara, who owns Henna Shoppe<\/a> with his wife, Neelam, finds being on Mill Avenue offers some unique features that benefit retail businesses like theirs. \u201cWe\u2019re adjacent to some beautiful hiking and nature around Tempe Town Lake and Papago Park. Being in nature, watching sunsets over the lake, and the youthful vibrancy of ASU all really help commune with the spiritual side of the world.\u201d Explaining why they believe the market supports their success, he says, \u201cWhile Mill Avenue certainly has its share of clubs and night life, plenty of families also enjoy spending time with their children hiking Hayden Butte, spending time at the lake, or going for ice cream after a day at the zoo. So, as parents ourselves, we\u2019ve built a friendly retail destination on Mill Avenue also. Kids love finding just the right crystal or bracelet for them. And, of course, temporary henna body art is always a fun way to have a truly unique experience on Mill Avenue.\u201d\u00a0<\/span><\/p>\n

Troy Scoma has been in business in downtown Tempe with Cactus Sports<\/a> for 31 years, and says that, as an ASU fan store, \u201cWe are the last independent retailer left.\u201d For the alumnus-owned and -operated business, Scoma says, \u201cShop small and shop local is pretty important. The majority of our competition is now run by large corporations who aren\u2019t headquartered in Arizona.\u00a0We feel this gives us an advantage and a lot of our guests know they are supporting a local Sun Devil alumni [sic] who understands their needs and wants.\u201d He\u2019s kept the retail concept simple, he says, explaining he never wanted more than the single location. \u201cIt was important to focus on running the business with all the attention on customer service, attention to detail and product selection.\u201d\u00a0<\/span><\/p>\n

Customer service is the key element for Mint Cannabis<\/a>, as CEO Eivan Shahara explains, \u201cCannabis has been trending for the last couple of years. With the addition of recreational sales, it has added to the growth in sales and foot traffic. At the Mint, we have taken special care to devote lots of our attention to the consumer retail experience to make sure we are able to attract the lion\u2019s share of this trend while it is hot!\u201d<\/p>\n

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Courtesy of Mint Dispensary<\/figcaption><\/figure>\n

In a similar vein, State Forty Eight<\/a>\u00a0CEO and co-founder Mike Spangenberg says, \u201cWe truly value the importance of brick-and-mortar retail because it allows us the opportunity to directly connect and engage with our community.\u201d The apparel brand has three brick-and-mortar locations, selling Arizona-inspired T-shirts, hats, outerwear and other accessories. \u201cWhile our e-commerce does well, there is something to be said about touching and being able to try on our products.\u201d He points out that brick-and-mortar also gives the business the opportunity to showcase its customer service. \u201cOur goal is for everyone to leave one of our retail locations with not only a great product they love, but with a better understanding of our company and who we are.\u201d Says Spangenberg, \u201cI believe\u00a0we\u2019re supported in this market for not only our uniquely designed products, but because people recognize that State Forty Eight is a locally run small business with heart. We strive to be authentic and make a difference in Arizona and, because of that, we\u2019ve managed to build an incredibly supportive community.\u201d<\/p>\n

Cindy Dach, co-owner of Changing Hands Bookstore<\/a>, also finds the community responds to the fact that the business is locally owned and operated. \u201cDuring the pandemic, we had to close our doors to the public for four months. That was very difficult, and a traumatic experience. At the same time, our community went out of their way to support us with online orders and curbside pickup, and ensured that we could be here when we reopened to the public. They stick with us through thick and thin, and we\u2019re so grateful.\u201d<\/p>\n

The independent bookstore opened in 1974 in downtown Tempe as a used bookstore, but very quickly became a new and <\/i>used bookstore. \u201cShortly after that, we began carrying gift items like bookmarks and journals, and today our gifts include a vast array of items such as kitchenware, ceramics, and bath and beauty products.\u201d Says Dach, \u201cFrom the very beginning, we prioritized being a community gathering space and curated merchandise that reflects the interests and values of our great community. They responded by shopping in our two locations.\u201d<\/p>\n

Brick-and-mortar was important to Tracy Dempsey even before she had her own location. \u201cIn the early days of building my own brand, I recognized that, until I had the funds to afford my own brick-and-mortar retail space, I needed the support of local merchants who would purchase my products at wholesale and grace their shelves (precious real estate) with it,\u201d says the owner of bakery and bottle shop TDOriginals<\/a> and ODV Wines. \u201cHaving my products in various shops around the Valley was a tremendous marketing opportunity to reach lots of different customer in different parts of the Valley. In turn, that helped build my customer base when I decided to open my own retail shop.\u201d<\/p>\n

Dempsey believes her current level of revenue, marketing and partnerships are all because of those brick-and-mortar retail shops. Noting that many of her confections are still carried by and sold in a number of local retails shops that supported her from the early days, she says, \u201cThose relationships are a contributing factor to why I carry so much local product and want to support fellow local producers \u2014 it\u2019s a little bit of paying it forward as well as being able to offer products I truly believe in, and maybe help someone else starting out realize their own dreams as a small business owner.\u201d As she emphasizes her belief in supporting the local community, Dempsey says, \u201cThe majority of our customer base is very much like-minded. Therein lies the support and the success.\u201d<\/p>\n

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Courtesy of Salad And Go<\/figcaption><\/figure>\n

Salad and Go<\/a> was founded as a brick-and-mortar concept but with its own approach to quick-service restaurants: drive-thru only. \u201cThe brand was designed to revolutionize the industry with its ease, affordability and access to fresh, made-to-order and healthy meals, including salads, wraps, breakfast burritos and soup as well as delicious beverages such as hand-crafted lemonades, teas, and cold brew,\u201d says CEO Charlie Morrison. Since opening its first location in Gilbert in 2013, Salad and Go now has more than 80 locations open across Arizona, Texas, Oklahoma and, soon, Nevada. \u201cWe are currently operating more than 45 locations in the Greater Phoenix area and are excited to continue expansion of our mission in our home state in 2023,\u201d Morrison continues.\u00a0<\/span><\/p>\n

The business model emphasizes the value of local. \u201cWe\u2019ve vertically integrated operations and distribution, and we source our ingredients directly from high-quality local farmers and suppliers whenever possible,\u201d Morrison says, explaining, \u201cThis model ensures each meal has fresh, quality ingredients and that our costs remain low. Salad and Go\u2019s drive-thru only concept has seen so much success due to the vertical supply chain\u2019s efficiency, which in turn allows us to provide high-value healthy choices to our guests.\u201d Salad and Go also supports the community it is part of through various partnerships, fundraisers and weekly donations to those in need.\u00a0<\/span><\/p>\n

Kevin Fretz, managing director of franchise finance at Western Alliance Bank<\/a>, says his department is seeing operators in the limited-service restaurant section, especially the QSR subsector, continue to show remarkable resilience in the face of the intense economic headwinds of 2022, \u201cand therefore remain relatively safe and stable investments over time,\u201d he says.<\/p>\n

\u201cMore specifically,\u201d Fretz continues, \u201cthe inflationary spike the nation saw in 2022 was the strongest headwind the industry has experienced in decades, but operators have generally proven to be quick on their feet to make necessary staffing and pricing changes. The nimbleness we saw at the height of the pandemic \u2014 where operators modified their customer interface procedures to adhere to COVID protocols such as pivoting to drive-thru and takeout \u2014 was seen again in 2022. This time around, they\u2019ve made prudent pricing and operational adjustments to accommodate these inflationary hurdles.\u201d\u00a0<\/span><\/p>\n

For the bank itself, in-person banking is still important although the use of digital services has been increasing. \u201cYet,\u201d says Jeff Schelter, manager director of commercial banking at Alliance Bank of Arizona<\/a>, \u201cdespite growth and reliance on technology, relationships are proving to be more important than ever before.\u201d<\/p>\n

Impact of Online Ordering and Direct Delivery<\/b><\/h3>\n

\u201cThe shift toward convenience in our industry is exactly why we created Salad and Go to make healthy food convenient and accessible,\u201d Morrison says. Guests can order at the drive-thru or place orders online to pick-up in person. The business model\u2019s efficiency has allowed the brand and its guests to make and receive orders quickly and without complications \u2014 even with its made-to-order model to ensure freshness. Some Salad and Go locations feature double drive-thru lanes and a pickup window, allowing team members to serve multiple guests\u2019 needs at once and maintain the order and flow of business operations.\u00a0<\/span><\/p>\n

When Dempsey was starting TDOriginals, she says she \u201cactually dabbled in both on-line order fulfilling and direct delivery.\u201d Realizing there are a lot of moving parts to being able to be successful at both and\/or either, she decided to let go of the on-line ordering as well as direct delivery. \u201cI don\u2019t think there is a great impact on our business,\u201d she says, noting, \u201cWe are a destination location for wine, desserts, and we have a sweet little space that I believe our customers enjoy visiting. We\u2019re offering more of an in-person shopping experience than a quick, on-line shopping solution.\u201d<\/p>\n

At State Forty Eight, Spangenberg says, \u201cWe understand how popular online ordering has become, and we do our best to mimic our customer service via e-commerce.\u201d But his belief in the value of in-person shopping is the reason the company opened its third retail location in Gilbert. \u201cThe beauty of the e-commerce side of our business is that we\u2019re not solely relying on in-person shopping, so we have some flexibility \u2014 and a ton of data that we can use to our advantage,\u201d says Spangenberg. \u201cWe pay attention to trends and the behaviors of our customers to inform our business hours, as well take note of what products are most popular online, so that we can keep them stocked in store.\u201d\u00a0<\/span><\/p>\n

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Courtesy of Cactus Sports<\/figcaption><\/figure>\n

As the proprietor of a small mom-and-pop store, Scoma says Cactus Sports doesn\u2019t have the budget to spend big money on SEO to compete online with the large corporations.\u00a0\u201cLuckily, we are a niche business that still has heavy foot traffic that wants to touch and feel products in person,\u201d he says. He believes getting licensed ASU products for a game is part of an experience and buying online is just not the same. \u201cThen there is also tourism and bringing back something from your visit \u2014 it just doesn\u2019t translate to online purchases,\u201d he says. \u201cHowever, being local and independent allows us\u00a0to react to trends faster.\u201d<\/p>\n

\u201cHonestly, there are certain areas where we simply cannot compete,\u201d says Dach, pointing out that Changing Hands is not a large warehouse; as a brick-and-mortar business, the model is fundamentally different. \u201cWe will always lose a sale if, for example, we are out of a book and someone wants it the same day or the next day.\u201d Nor can she compete with an online mega-retailer who devalues books to sell, often at or below cost, as a loss-leader. \u201cFortunately, though, our customers want <\/i>to come into our space. They want <\/i>to gather and talk about authors and about writing and buy not just books, but a unique candle, for example, or a greeting card or any number of the hundreds of non-book gift items we carry. They want us to be here so that they can browse with a friend,\u201d Dach says. \u201cPut simply, we are supported by a community that wants to keep us here. It means everything to us.\u201d<\/p>\n

It\u2019s a wholly different situation for Shahara, who notes there is no delivery in the cannabis industry. And, while online ordering is allowed, consumers are still required to visit the brick-and-mortar location to finish their transaction onsite. For the consumer who prefers online and delivery, Mint Cannabis offers quick and efficient express service with online orders. \u201cWe strongly believe in well-trained employees and the best customer service,\u201d Shahara says, noting that, in cannabis, a large percentage of customers still need more and better information. \u201cWe make sure we are very well versed on the latest and the greatest, so we can pass that on to our customers.\u201d<\/p>\n

Foster points to lessons from the pandemic underscoring the need for brick-and-mortar merchants to be active in both the physical and virtual realms \u2014 a lesson she believes most businesses in Downtown Tempe took to heart, and worked to improve their web stores and delivery options. Acknowledging the convenience of online ordering and doorstep delivery as an asset, Foster notes the value of the in-store experience, the engagement with a well-trained staffer to answer questions, make suggestions and try out products before purchase. \u201cThe combination of online and in-store operations result in a win-win for the merchant and the customer.\u201d<\/p>\n

In fact, Sandesara believes the growth of online ordering has helped the Henna Shoppe. \u201cMuch of what customers (ourselves included) buy online is either comparison shopping large ticket items or everyday necessities.\u201d What\u2019s missing is the experience of discovery. \u201cWhen you come into our stores, you\u2019re transported. You smell the incense, feel the crystals, hear the singing bowls, try on the clothes. So much of our product is unique and one-of-a-kind, that if you love what you\u2019re holding, there\u2019s not likely to be another one quite like it.\u201d\u00a0<\/span><\/p>\n

Henna Shoppe does have a website, but Sandesara says much of what most people buy are the repeat necessities they had already bought in-store.\u00a0<\/span><\/p>\n

Choukalas says Macerich views brick-and-mortar stores as a complement to online shopping, but at the same time points out many brands that began online are increasingly opening brick-and-mortar locations at Macerich\u2019s centers so that shoppers can physically experience their merchandise \u2014 from Alo Yoga to UNTUCKit to Warby Parker. \u201cOf course, along with traditional shopping visits, we also offer curbside pickup, dining takeout and buy online\/pick-up in-store options to meet the consumer\u2019s needs,\u201d she says.<\/p>\n

Observing that, after the past few years, people are hungrier than ever for in-person experiences, Choukalas believes shoppers want to see, touch and feel the quality of iconic and trusted labels as well as trendy, up-and-coming new brands \u2014 with comfort and ease at every turn. \u201cAt Scottsdale Fashion Square, people encounter the full gamut of offerings \u2014 luxury and contemporary brands, experiential opportunities, digitally native brands and great dining \u2014 that together deliver the rich, multisensory experience people want.<\/p>\n

\u201cWhat\u2019s more,\u201d she continues, \u201cwith the challenges in e-commerce right now, from layoffs to shipping delays, we\u2019re seeing shoppers choosing to select merchandise they can bring home right then and there.\u201d<\/p>\n

For the Epicenter businesses, Johnston believes e-commerce has actually expanded what they can do sales volume-wise because it gives them an online presence as well. \u201cPeople maybe see them on Instagram or have seen an article about them,\u201d he says. \u201cBut for the most part, I would say the bulk of shoppers that will be coming to retail at Epicenter, that come to Agritopia already, they come because they want to do <\/i>something \u2014 they want to not just get a generic item that has zero connection to them.\u201d Using shoes as one example, he says, \u201cYou can get shoes on Amazon or online somewhere, but can you get the special, unique, Jordan releases that Manor has? Not really.\u201d And where it comes to food, delivery services offer convenience, but \u201cthe quality of what you get delivered versus what you get when you dine in is just always different. And the quality\u2019s always better in store.\u201d For dining and also for softgoods, \u201cYou want the best experience, and you have to go to a brick-and-mortar for that.\u201d For the health and wellness tenants, there\u2019s an additional element to on-site versus online. \u201cIf you want to feel like you are part of a group of people that are your friends, your colleagues, your daily routine, going to a place like Bar 3 or The Collective \u2014 two of our fitness tenants \u2014 there\u2019s a big difference.\u201d\u00a0<\/span><\/p>\n

Encouraging Foot Traffic<\/b><\/h3>\n

\u201cWe host many events, which draw people from around the Valley,\u201d says Changing Hands Bookstore\u2019s Dach. Some are author events and some are community events, and Dach notes that a good number of them generate earned media. The bookstore also hosts discussions on current events, celebrations of book releases, political discussions and much more. An active e-newsletter and a large social media presence are augmented by a select bit of print, radio, television and digital marketing. \u201cWe\u2019re also in the middle of updating our website to better reflect online the experience of being at Changing Hands Bookstore in person.\u201d<\/p>\n

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Courtesy of Scottsdale Fashion Square<\/figcaption><\/figure>\n

Additionally, Dach notes the bookstore\u2019s Phoenix location has a beer\/wine\/coffee bar inside the bookstore. \u201cA guest can get a glass of wine, beer or a latte with a tasty treat and roam the bookstore for hours,\u201d she says. \u201cFirst Draft Book Bar is a unique experience in our bookstore. It drives its own traffic.\u201d<\/p>\n

For Salad and Go, which is expanding across the U.S. and had two new market entries last month in Houston and Las Vegas, Morrison says, \u201cWe announce our grand openings locally to generate buzz and conduct special promotions whenever possible to encourage attendance and give back to the community.\u201d Once the restaurant is established in a community, he says, \u201cOur growth is driven by those who love what we do and the delicious offerings we provide at our stores.\u201d<\/p>\n

State Forty Eight has relied on the traditional marketing tactics of social media, email, text messaging and discounts to drive traffic, but Spangenberg says the business is beginning to implement monthly activations at its locations. \u201cWe love our community, so we aim to add value to shopping in store,\u201d he says. \u201cWe will often\u00a0sell exclusive or limited-edition products in-store only,\u00a0we\u2019ll throw community block parties, put on sale events with live music, host local markets and invite other local vendors to set up in our parking lot, incentivize with freebies like food and drinks with purchase, etc.\u201d The aim is to create a fun and welcoming atmosphere for customers, show appreciation for the community and \u201cseparate ourselves from the rest by creating a memorable experience that leads to genuine connection with our brand and our team.\u201d\u00a0<\/span><\/p>\n

Dempsey says that, at TDOriginals and ODV Wines, \u201cOne of the biggest things we do is to try to make everyone who walks through the door feel welcome and to build relationships.\u201d She shares news of an array of experiences that include wine sampling, cooking classes and meet-the-winemaker events through the business\u2019s newsletter and social media platforms, and thanks \u201cour friend who is a public relations professional\u201d for help getting word out to the media about events and other happenings. \u201cOur customers are precious to us and the reason we have managed to maintain this humble but relatively successful little business,\u201d Dempsey says, sharing, \u201cI\u2019m big on quizzing folks about how they found us, what brought them in, et cetera. A good many answer with, \u2018so and so told me about you,\u2019 and then many mention looking for certain products on search engines and being led to us.\u201d<\/p>\n

At Cactus Sports, Scoma believes foot traffic follows from the business staying true to its roots. \u201cWe embrace our shop-small, shop-local presence, and being Sun Devil-owned and -operated means a lot to our alumni guests,\u201d he says. \u201cSocial media plays a big part in driving traffic to what makes us unique amongst our competition.\u201d And he shares, \u201cWhat\u2019s selling may surprise some people, but crewneck and hooded sweatshirts sell all year round no matter how hot it gets in Arizona.\u201d<\/p>\n

Many of the downtown Tempe retailers have reported that 2021-2022 sales are back up to pre-COVID levels and many surpassed their goals last year, according to Foster. \u201cThe merchants that are nimble and in touch with their customers can react to market demands \u2014 whether it\u2019s the latest trends in fashion, food or drink,\u201d she notes. And she has found the downtown merchants are well-versed in sharing the shopping\/dining\/personal service experiences of customers in social media. \u201cThey know their markets and cater their products and services to them,\u201d she says.<\/p>\n

Sandesara, for instance, says he and his wife are seeing a deeper embrace of the entire Bohemian\/naturalistic lifestyle impacting foot traffic for Henna Shoppe. \u201cWe think [in] the past couple years people really had a chance to reflect on the importance of being at peace with their surroundings and focusing on their own mental health,\u201d he says.\u00a0Noting that there\u2019s also been an increased shift to more natural products, he says a line of clothing made of natural fibers that Henna Shoppe recently launched has been very well received.\u00a0And while most of their advertising is through word of mouth, he notes, \u201cOf course, being on Mill Avenue generates a good amount of foot traffic in its own right.\u201d\u00a0<\/span><\/p>\n

Observing that the definition of what a shopping center means and brings to a community has changed and pointing out that the best centers in the country offer not only great shopping but a range of outstanding experiences, Choukalas says Macerich responds to those changes by constantly refining and curating the mix of offerings at Scottsdale Fashion Square. \u201cAlong with the best luxury brands, we offer an array of flagship retailers, elevated food and beverage choices, fitness and well-being, art and artistry, co-working, and purposeful mixed-use densification,\u201d she says.<\/p>\n

She notes, in fact, that Macerich\u2019s town center strategy of adding density and new uses to its top-performing retail properties in great locations is exactly in sync with how people want to engage with places today. \u201cPeople want proximity, convenience and the ability to do exciting, in-person activities at places they enjoy, such as their favorite retail destinations,\u201d she says. \u201cWe continue to evolve Scottsdale Fashion Square with several innovative uses, such as the Caesars Republic Hotel, opening in February 2024; a 30,000-square-foot, high-end Life Time fitness currently under construction; and the co-working space Industrious, which opened in 2019.\u201d\u00a0<\/span><\/p>\n

Johnston believes foot traffic for Epicenter got a boost from the existing reputation of Joe\u2019s Farm Grill and The Coffee Shop and Bar None in Agritopia. \u201cPeople have been excited about it for a long time, and so, through PR as we announce different things, it really has done well,\u201d he says.\u00a0<\/span><\/p>\n

Of its draw, Johnston says his company\u2019s market studies show that the number of regulars who come to the businesses in Agritopia from outside the Gilbert area fairly evenly matches the number who live in the Gilbert area. And the development also attracts national travelers thanks to its proximity to Mesa Gateway Airport. \u201cWe get a lot of people that are flying in from Chicago, the Dakotas, that whole area as well. It\u2019s beneficial to have that proximity to the airport where, when they get off the plane, they\u2019re looking for a place to go, and if you type \u2018best restaurant\u2019 on Yelp or Google, Farm Grill and Coffee Shop always pop up pretty quickly on those lists.\u201d\u00a0<\/span><\/p>\n

How does that translate to foot traffic? \u201cOnce they come out and they see Epicenter, it\u2019s like, \u2018Oh my gosh, what is this thing?\u2019 And then they start to explore.\u201d Careful attention goes into creating and building on that first impression, focusing on getting people to come out for more than just one thing. \u201cLet\u2019s say they go to Belly for lunch. Once they\u2019ve done that, because of what they can see visually when they walk out that door, they\u2019re going to want to explore a bit more. So they might walk east and they\u2019ll go look at more stuff at Epicenter. Or they could walk west and look at The Farm\u2019s own coffee shop and walk The Farm and see the organic produce that\u2019s being grown.\u201d And have that generate interest in return visits for more exploring. \u201cAs more and more businesses open, foot traffic will continue to increase,\u201d Johnston says.\u00a0<\/span><\/p>\n

\u201cWe really try to make it a place where people can have a longer dwell time and enjoy sitting a part of longer,\u201d says Johnston.\u00a0<\/span><\/p>\n

The two parts of this cover story are:<\/strong><\/p>\n