New retail technology will not kill off shopping centres - on the contrary, it has the potential to make them more vital than ever.

Technological innovation is moving at such a rapid pace - with the rise of click-and-collect, the mass adoption of mobile commerce and in-store gadgets all aimed at improving the customer experience - that it is quite possible to imagine a world in which virtual shopping renders physical stores obsolete. Or is it?

It is certainly true that consumer expectations are evolving and retailers that fail to invest in digital infrastructure will be left behind, but
it would be wrong to write off the importance of the physical store.

After all, shopping remains the nation’s second favourite leisure pursuit (after watching television), and pure-play etailers are cottoning on. Only last month Missguided signed a deal to open its first concession with US retailer Nordstrom, and Google and Amazon are both now experimenting with physical stores as part of a multichannel offering.

What’s clear is that traditional lines between online and physical retail have become blurred, with astute retailers recognising that the same customer wants to shop a number of channels.

“The most successful retailers are those that invest in omnichannel infrastructure”

‘Mrs Smith’ might like to browse her favourite websites on her tablet at home, head into her local shopping centre to try on a few items and stop for lunch with friends, and then order online during her lunch break at work the next day.

The most successful retailers are those that invest in omnichannel infrastructure and adopt flexible structures that allow them to remain agile and deliver a seamless experience to customers across channels. John Lewis was among the first to recognise this trend, reporting that multichannel shoppers spend on average 3.5 times more than single-channel shoppers and are more loyal to the brand.

For Hammerson as a landlord, it is important that we create destinations that bring together the best in physical and digital retail, ensuring the optimum environment for our retailers to engage with customers.

We were quick to install beacon technology across our European portfolio and, following trials of our ‘Plus’ app at Les Terrasses du Port in France and Brent Cross in London we have just pushed the button on a full-scale rollout - a first for the sector.

“As retail specialists, it is important that we remain at the forefront of digital innovation”

The app lets consumers map their day using geo-location technology, access store information and learn about events. It also allows retailers to engage with their customers, tailoring personalised offers and promotions based on expressed customer interests.

As retail specialists, it is important that we remain at the forefront of digital innovation. Embracing new technologies will allow us to enhance the experiential side of shopping, bringing digital theatre to our malls and encouraging dwell-time, while at the same time minimising the ‘boring’ aspects, with time spent queuing or paying becoming automated at the swipe of a button.

As technology evolves, developers must continue to adapt so that shopping destinations remain as relevant and attractive as the retailers in our centres.

  • Sophie Ross, head of multichannel, Hammerson Plc