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Feature Article, February 2006
The Evolution Of RMUs
RMU programs continue to evolve with the times.
Susan H. Fishman
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Stak Designs created RMUs for General Growth Properties' Jordan Creek Town Center in West Des Moines, Iowa.
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With so many options for retail merchandising units (RMUs) available to mall developers and owners, RMU manufacturers are competing to deliver more unique designs and quality units that will survive the outdoor or lifestyle center environment. Shopping Center Business recently talked to Janet Mayer, CEO and co-owner of Merchandising Frontiers, Inc.; Lon Conner, president of WC-Designs, Inc.; Rob McCoy, principal with Stak Design; and Terri Boettigheimer, division vice president of T L Horton Design to find out what they're currently delivering and what developers and retailers look for in an RMU. SCB: What are retailers asking for in an RMU — what are the top three things they need?
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Merchandising Frontiers created this unit displaying Carole Shiber Designs' products.
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McCoy: Retailers are asking for more functional items that need to be incorporated into the design of the RMUs. The needs of the merchants continue to evolve from the days of a standard cash register into much more sophisticated computer systems that are networked and that have the capability to download sales, print reports from laser printers, etc. The technology side of the retail business continues to grow and evolve for specialty retail merchants much the same way as that of the in-line merchants, but in a smaller space. Our firm is focusing on providing a much more functional and operational sensitive workspace for the retailer while maintaining the design standards for many of our development clients. Also, there is an ever growing need for improved usable storage capacity. Our firm tries to maximize the amount of usable storage with all of our design concepts. We also focus on continually improving the merchandising elements of our units' displays. These efforts improve the retailer's sales and, at the same time, meet the visual merchandising requirements of the developers. Mayer: Retailers want flexible and abundant merchandising space; operationally friendly — minimal setup for opening and for closing; a dependable, strong security system that is quick to operate (for example, roll down aluminum slat shutters); and a design that will beckon customers.
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A Stak Designs RMU at Taubman's Great Lakes Crossings, Auburn, Michigan.
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Conner: Security, storage and space to make a good visual presentation. Boettigheimer: The top three requirements from retailers that we hear most frequently include: Lighting provisions so that all product areas are well lit; Increased demand for accommodating electronics (such as plasma screens); and more options for flexible product display such as shelves that pull out, hinged shelving, etc.
SCB: What new retailers have you seen use RMUs over the last 2 years?
Mayer: Vacation timeshares, electronic sales, wireless products, cell phones and accessories.
Conner: That is one of the areas that the specialty leasing managers are struggling with — the lack of new, innovative products to place on RMUs. The strongest, newest retailers have probably been in the massage products category. The demonstration aspect of their presentation really draws attention. Also, lotions and creams are very popular.
McCoy: We are seeing more atypical types of uses. Your typical retailer still has a valuable presence, but we are seeing more unique and non-traditional uses entering the world of specialty retail, such as Resorts International, and Carnival Cruise Lines. They are adding to the shopping experience and finding desired markets at the mall level.
SCB: What are developers asking for in units and RMU programs?
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A Stak Designs unit for Westfield Merry Hill in Brierley Hill, West Midlands, United Kingdom.
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Mayer: More value-added engineering with shorter project lead times; going ‘green' and energy conservation; ergonomics and meeting ADA and accessibility standards; and distinctive designs that reflect the unique architectural style of their locations. Conner: Since the majority of the new malls being developed are outdoor venues, we have been working on making our units better to stand up against the elements. It creates a lot of new challenges when you have to take into account the changes in temperatures, snow, rain, etc. We are currently working on new manufacturing techniques that will make the units hold up to the elements much better and even enhancing the look of the units. Another request has been to develop a smaller unit that will coordinate with their existing units for other purposes such as mortgage companies, banks, etc.
McCoy: More unique ways of merchandising with cleaner lines and more unique, higher quality materials that have a lasting quality. More functional cash wrap areas to meet the merchants needs. Higher quality lighting and merchandising systems which highlight product displays. More creative ways to display in the common areas. For example, walkway bridges have the space for unique sized units that can add to the shopping experience and, at the same time, generate income. Our clients seem to be focusing more and more on cleaner lines with sensitivity to the in-line merchants. They are attempting to clean up the common areas with units that restrict the merchants from growing from the footprint that the developer leased to the retailer with height restrictions, etc. — all in an effort to maintain visual clutter and not compete with their in-line merchants.
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A T L Horton-designed RMU for TimeWarner Cable.
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Boettigheimer: One common theme among many interior RMU programs is the request for a low-profile canopy. The move away from a decorative canopy seems to be driven somewhat by the in-line store tenants who don't want an RMU to block their store visually. Plus, developers are concerned about a ‘heavy' canopy when multiple RMUs are in a row in the common area. Developers are also asking for accessories that organize and present a variety of tenant products beautifully while retaining visibility through the RMU. While many tenants provide their own props for displaying products on the RMU, the developer often assists them by providing an assortment of ‘approved' accessories that will accommodate their need while still presenting a look that matches the mall décor and projects a professional image. Many developers have reached some level of saturation with their RMU program and cannot fit any additional full-size units in their common area. However, they still are challenged with producing new sources of revenue. At TLH we are introducing a new product line of smaller units for short-term leases, such as for sponsorship programs. These units can produce additional revenue for the developer by filling the smaller spaces in the common area to a weekend type of tenant and yet provide a custom look that matches the interior of the mall. SCB: How often are developers updating their RMU programs? Why?
Mayer: It varies. Some developers are still using RMUs that we manufactured over 12 years ago. Others will update their RMUs whenever the center is architecturally updated or expanded. Durability or how well the RMUs are holding up, as well as budgets, are factors.
Conner: I would say that projects should be updated approximately every 5 years, if the units last that long. With so much consolidation, mergers, etc., in our industry, the new owners of malls seem to want their own ‘new' RMUs.
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A Stak Designs RMU created for General Growth Properties' The Shops at La Cantera in San Antonio.
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McCoy: We are seeing units being updated and/or changed every 5 to 7 years. However, in today's REIT environment, and with the turnover of assets to experienced developers that have strong programs, if there's a program that was recently acquired from another developer that doesn't fit the merchandising needs of the acquiring developer, they are more than likely to replace the existing units to maintain their visual standards in the common area. Also, developers are updating their programs possibly more frequently than every 5 years, depending on the market and the changes within the industry.
Boettigheimer: Most developers seem to update their RMU program in conjunction with a mall renovation or after an acquisition. As part of a renovation, the RMU is considered part of the ‘furniture' décor of a mall and thus is updated to match the new color schemes or architectural details. For an acquisition, the new owner generally wants the RMU program to blend with their existing RMU design they successfully use at other malls they own.
SCB: What new projects are you currently working on?
Mayer: Outdoor RMU projects for Prime Retail at various locations; The Loop at Orlando for the Wilder Companies; walk-in style retail kiosks for The Paradies Shops at various airports; bakery kiosks for Paul Bakery in various mall locations; Intellifit kiosks/RMUs in various malls; gift shop RMUs for United Health Services in hospitals; and food service kiosks in colleges and universities for Sodexho.
Conner: We are currently working on a couple of outdoor projects needing RMUs. Both projects are for CB Richard Ellis managed properties. We continue to build units for Chelsea Property Group. As the mall developers have to find or develop new sources of income from the temporary tenant market, I think that the manufacturers of these products must be flexible enough to attend to different ideas, uses and materials.
McCoy: Our firm is currently working on a number of large exterior projects for General Growth Properties at Fashion Show in Las Vegas, Riverwalk in New Orleans (as well as a completely new interior program) and its new center, O-Tay Ranch. We are also working on programs for The Mills Corporation's Del Amo Fashion Center and the Sawgrass Mills Colonade expansion. We have just been awarded the contract on the Branson Landing project in Branson, Missouri, for Urban Retail Properties. This is an exciting exterior project on the Riverwalk in Branson that features dining, entertainment and retail. We are also working with Gulf Coast Town Center, which is a new lifestyle project that is being developed by CBL & Associates Properties.
©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
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