By Paul Firth, Senior Associate Director at CallisonRTKL
Over the past decades, retail – in some form or another – has become woven into the region’s ‘cultural fabric’ with many using it as an opportunity to socialise, shop and dine. In 2019, Jawda Investment reported that the wholesale and retail sector in the Kingdom of Saudi Arabia (KSA) contributed 16 percent of non-oil GDP witnessing steady growth year-on-year[1].
This likely comes as no surprise given the driving force of the powerful and aspirational Saudi Vision 2030, to reduce Saudi Arabia’s dependence on oil and to diversify the economy. Through this, the country is committed to building a thriving economy and vibrant society that improves the quality of life and empowers its citizens.
The growth of retail is forecasted to continue at an exponential growth rate, fueled by billions of dollars of planned investments in the Kingdom that will witness the overall growth of the country’s cities and populations supported by critical sectors of economic importance, including retail. For example, a recent $800 billion plan has been drawn up to double the size of Riyadh alone, taking it from a current population of seven million to 15 million within the next decade. This substantiates plans to transform Saudi Arabia into an artistic, economic, social, and cultural hub for the Middle East region.
Achieving this will depend greatly on the retail and entertainment sector and its ability to attract modern, local, regional and international brands that all contribute to the economy, through modern trade and experience. Now, let’s go back to this initial idea of retail as part of the region’s ‘cultural fabric’. With this in mind, there is cause to believe that countries, such as Saudi Arabia, are far ahead of the global curve when considering retail as much more than a purely transactional process, and is inherently viewed as an entertainment experience instead.
A catalyst for change
2020 has been a year that has collectively rocked the world and the implications of the ongoing global COVID-19 pandemic has changed our way of life forever. The retail sector has been severely impacted and we have seen a massive decline over the past few months, with footfall and sales dropping due to the closure of retail projects and movement restrictions implemented across the world.
It is safe to say that COVID-19 has irreversibly changed the way that the retail industry will operate in the future. As such, retailers have been asking themselves if this is the end of traditional brick and mortar stores with many consumers choosing convenient ecommerce options instead. I would argue that this has for many years been a question amongst the industry and the pandemic is merely the catalyst for accelerated thought and decisive action as a matter of survival.
It is now time to step away from this traditional idea that retail is purely a shopping experience – ‘experience’ being the key word here. These days, consumers across many industries, such as retail, travel and hospitality, are seeking memorable and valuable experiences.
COVID-19 has made this somewhat even more challenging, with new protocols needing to be followed and a lack of consumer confidence regarding personal safety. There are many ways in which retail destinations can be adapted to drive consumers back while still adhering to social distancing measures. Outdoor, mixed-use and drive-through shopping experiences are becoming popular in some countries, a trend that is likely to continue growing in the coming years. A great example of this is by Al-Futtaim ACE who rapidly responded to the situation by opening the region’s first digital drive-through shopping experience at Dubai Festival City. This means that customers are now able to shop online and then drive to pick up their purchases the following day onwards.
Clean and safe shopping that provides a seamless and meaningful consumer experience are now more important than ever. The mall has always been a destination with a reliable and exciting environment, now with the right planning, it can continue to be that and so much more. Rethinking the shopping experience through health and wellness, smart city technology and operational excellence are key to successfully reopen malls in times of pandemic.
The latest retail developments in the Kingdom, such as Riyadh Front, already display many of the modern design considerations brought forward by the pandemic such as flexible, single-story, permeable structures that follow four circulation paths. For example, to follow two-metre social distancing guidelines with low time and cost implications, it is possible to remove or reposition freestanding fixtures to provide more space and add safety screens – which can also function as stylish design elements.
Beyond this, there is a significantly larger opportunity to blur the lines between digital and physical retail and rethink the way stores operate entirely with spaces designed to provide a spectrum of options for different types of customer needs. Although this would mean catering to a smaller footfall, this can offer a more bespoke and engaging experience for customers and while retailers will have to accept lower volumes of in-store transactions, research has shown that positive physical retail experiences often translate to increased online transactions locally. If you curate a better experience in person, customers are likely to spend more time online both sharing that encounter and buying products.
Designing for a thriving economy
Multi-use destinations directly contribute to the economic, cultural and societal pillars of the esteemed Saudi Vision 2030, changing the way people experience destinations while also pioneering an outdoor retail lifestyle. Retail will continue to evolve to create destinations for entertainment, contributing to the overall strength of the growing sector in the Kingdom.
It is clear that the road to recovery globally will not be easy, but with this comes the opportunity to rethink and accelerate changes that were already being discussed pre-pandemic. As KSA’s retail and entertainment sector regains its footing and prepares for a prosperous future, we will see more innovation in this area with culture and entertainment brought to the forefront.
Creating experiences through carefully crafted design in outdoor retail and entertainment destinations will gradually tempt consumers back to physical shops, with the design principles catering for both the current social distancing requirements as well as the Kingdom’s modern retail movement. By innovating and creating change now, retail can find a new purpose and carve out a place for itself in a ‘new normal’ world.
As originally published in Commerical Interior Design Magazine here