November 10, 2016
Retailers across all price points are increasingly using a flagship store strategy to connect with customers. JLL’s latest research report, Flagship Confidential, looked at 145 flagship stores in New York, Los Angeles, Chicago and San Francisco and found 11 common key features among these retailers.
- Exclusive merchandise
- Famous artwork
- Food and beverage
- Green features
- Historic building/iconic architecture
- Hospitality area/community space
- Large size
- Technology showcase
- Luxury and luxury lite retailers create a shopping experience for customers that have both high standards and big budgets. JLL found that 40% of the flagships in the four markets studied were in the luxury and luxury lite categories.
- Lower-priced retailers bring the masses to their flagships with a variety of interactive features and unique experiences. High and middle-priced retailers engage customers with new technology, such as the magic mirror fitting rooms at Los Angeles’ Rebecca Minkoff.
JLL’s Scott Burns says, “Los Angeles is the top U.S. market for flagships after New York because of its diverse consumer base. The city is unique for locating because in most major markets flagship stores are for the most part within walking distance of each other. But in L.A., flagship stores are spread out across multiple neighborhoods, although Beverly Hills is the clear fashion flagship leader of the West Coast.”
For comments, questions or concerns, please contact Dennis Kaiser