Published On Apr 19, 2024  
in  Areas of Expertise

Grocery-anchored developments are evolving in response to changing consumer behaviors and the rise of omin-channel retailing. From click-and-collect service to rethinking tenant mixes, let’s look to the future and what it holds for this segment of retail real estate.

Evolving Consumer Habits: 

The way we shop for groceries is undergoing a digital revolution. The surge in online grocery shopping and quick commerce (deliveries within minutes) presents opportunities for grocery-anchored developments.

The Rise of Omnichannel Retailing: 

Supermarkets are no longer solely brick-and-mortar entities. To stay competitive, they have adopted omnichannel strategies that seamlessly blend online and physical shopping experiences. This translates to:

  • Click-and-Collect: Customers order groceries online and pick them up in-store, often with designated parking spots or lockers for added convenience.
  • Delivery Services: Partnering with delivery platforms or offering in-house delivery options caters to the growing demand for speedy grocery access.

Impact on Grocery-Anchored Developments: 

These evolving consumer habits necessitate adjustments within the physical space of grocery-anchored developments:

  • Space Re-allocation: Supermarkets might require additional areas for click-and-collect operations. This could involve designated pick-up zones, packing stations, or even temperature-controlled spaces for fresh produce.
  • Warehouse-style sections: To facilitate efficient fulfillment for online orders, supermarkets might dedicate a portion of their in-store space to act as a mini-warehouse.
  • Tenant Mix Rethink: The traditional mix of stores surrounding the grocery anchor might include complementary businesses that cater to the needs of online shoppers, like packaging stores or small delivery service hubs, could become more prevalent.

Experiences Over Products: 

The modern consumer seeks experiences that go beyond simply buying products. Grocery-anchored developments can capitalize on this trend by transforming themselves into vibrant community hubs that offer a blend of retail and leisure.

Co-working spaces: 

  • Target Audience: Professionals working remotely, freelancers, or entrepreneurs seeking a flexible work environment.
  • Benefits: Increased foot traffic during non-peak grocery shopping hours. Creates a sense of community and fosters potential collaborations between businesses within the development.
  • Implementation: Designated areas with co-working memberships, offering amenities like high-speed Wi-Fi, comfortable seating, and meeting rooms.

Fitness centers or health-focused tenants: 

  • Target Audience: Health-conscious individuals seeking convenient access to fitness facilities or wellness services.
  • Benefits: Aligns with the growing focus on preventive healthcare and healthy living. Creates a destination feel, encouraging people to spend more time within the development.
  • Implementation: Partnering with gyms, yoga studios, healthy food retailers, or offering on-site fitness classes.

Entertainment options: 

  • Target Audience: Families, young adults, and individuals seeking leisure activities.
  • Benefits: Creates a vibrant atmosphere, attracting a wider demographic and encouraging longer stays. Offers a unique selling point compared to traditional grocery stores.
  • Implementation: Arcades, cinemas, bowling alleys, or hosting pop-up events like art exhibitions or live music.

The Future is Bright: 

Grocery-anchored are adapting to the changing retail landscape and embracing new trends, serving as vibrant hubs for communities.

Understanding these trends prepares both business owners and potential tenants to navigate the exciting times ahead.

Staying informed about the latest CRE trends and consumer preferences is crucial for success in the evolving landscape of grocery-anchored developments.



Greg Clough
Greg Clough
Senior Vice President, Redevelopment & Development