Neighborhood center developer sees tenants making bolder steps into omnichannel

Long-running brick-and-mortar tenants have ramped up their technological prowess and are engaged in trend-setting changes to their physical stores, according to Phillip Edison & Company, an operator of nearly 300 grocery-anchored centers nationwide.

Bigger-box brands the likes of Target and Kohls have announced new smaller-footprint store models and food and beverage standouts such as Taco Bell and Cracker Barrel have increased their number of ghost kitchens and drive-thru lanes to mine more profits from online orders, according to PECO.

“These operators have shown incredible agility and innovation over the last couple of years, and we believe this points to significant growth for the entire category,” said PECO’s director of national accounts Ashley Casey. “They’re displaying incredible agility and innovation that we believe will lead to significant growth for the entire category.”

PECO stated that, within its vast portfolio, Taco Bell has begun to introduce its Defy model that offers four drive-thru lanes — three dedicated expressly to online orders. The center owner and operator also noted the increasing presence in its markets of ghost kitchens like Kitchen United, REEF, and CloudKitchens.

PECO fields an Emerging Trends team that tracks more than 400 accounts and engages with 150 expanding retailers to see how they can fulfill the real estate objectives needed to accomplish their evolving brick-and-mortar presences.  

“We continue to see retailers pushing the envelope when it comes to leveraging the latest technologies — both on and offline–to create better experiences and foster greater loyalty among their customers,” Casey said.