The Great Retail Reset: Experience & value will define winners
- MAREJ
- 7 hours ago
- 2 min read
By Joe Betesh, Premier Centers

The future of retail real estate isn’t just changing. It’s dividing.
Let’s be clear: physical retail isn’t dead – mediocre retail is.
The pandemic didn’t create new consumer behaviors; it accelerated existing ones. What would have taken a decade happened in months. The weak were exposed, the strong strengthened.
The winners in this new landscape understand a fundamental truth: Consumers want either exceptional VALUE or exceptional EXPERIENCE. Nothing in between survives.
This bifurcation is reshaping retail real estate as we know it.
The value players (Costco, TJ Maxx, Dollar General) continue expanding their physical footprints. Why? Because discount shopping remains a treasure hunt – an experience that doesn’t translate digitally.
Finding that bargain creates dopamine. It’s biology, not retail strategy.
At the other end, premium experience-driven retailers are thriving. Apple Stores generate more revenue per square foot than any other retailer because they’re not stores – they’re temples of innovation where consumers worship at the altar of aspiration.
Lululemon doesn’t just sell overpriced yoga pants; they sell community and identity. The store is merely the physical manifestation of that promise.
The implications for retail real estate are profound:
Location premium is inverting. Suburban and exurban locations with strong demographics are outperforming traditional urban centers. Remote work has redistributed spending power away from central business districts.
Size flexibility matters. The most innovative retailers are experimenting with format. From micro-stores to flagships, the rigid box mentality is dead. Retail spaces must adapt to community needs.
Tech integration is non-negotiable. Smart retail spaces blend digital and physical seamlessly. The store of the future knows who you are when you walk in and what you want before you do.
Mixed-use will dominate. The most valuable retail real estate will be embedded in ecosystems where people live, work, and play. Standalone big boxes? Dinosaurs awaiting extinction. The mall as we knew it is over. But community gathering spaces are eternal.
What does this mean for investors, developers, and retailers?
First, bet on extremes. Either pristine locations that command premium rents from experience-driven retailers or value-centered locations with strong traffic patterns.
Second, flexibility is currency. Lease structures, space configurations, and tenant mixes must evolve more rapidly than ever before.
Third, community integration is essential. Retail spaces must serve genuine community needs beyond commerce.
The retailers who will flourish understand their role isn’t selling products – it’s delivering solutions to human problems. The real estate that hosts them must facilitate this mission.
Success in retail real estate now requires asking different questions:
Not “How many square feet do you need?” but
“What experience are you creating?”
Not “What’s your merchandise mix?” but
“How does your physical space complement your digital presence?”
Not “What’s the foot traffic?” but
“What’s the community engagement?”
The future belongs to those who recognize that retail real estate isn’t about buildings. It’s about building relationships between brands and humans.
The middle is evaporating, but the extremes are expanding.
Your strategy must pick a lane.
Value or experience. Choose wisely.
Joe Betesh is principal of Premier Centers.