What’s New With RMUs?
Luxury retailers recently entered the game, elevating the quality, design and innovation of new RMU programs everywhere.
Katie Foxworth Lee

Retail merchandising units, or RMUs, constantly evolve, and the past 12 months have been no exception. Outdoor lifestyle centers continue to be the product type of choice for developers nationwide, and demand is high for cart manufacturers and designers to perfect outdoor units for these centers. But RMUs, indoors or out, are no longer confined to the box-like, rectangular footprint; 2006 saw many innovative new shapes and sizes take form, pushing the envelope of design creativity. Even what is sold on RMU shelves has evolved. Put simply, luxury has arrived.

The Luxury RMU

Retail merchandising units usually run the gamut of product offerings, from wireless cell phones and iPod accessories to Yankee Candles and Crocs sandals. Impulse buys are big, and the price tag rarely is. However, one element always seemed to be missing: luxury. If you happened to crave Petrossian caviar or need a new Swarovski crystal vase (and who doesn’t?), you were out of luck. Until now.

Luxury merchandising units (LMUs) burst on the scene in 2006. Pictured here is Swarovski at The Shops at Columbus Circle, Time Warner Center, in New York.

You certainly know the RMU industry has “arrived” when Related Urban Development unveils a new cart program unlike any other, featuring luxury merchants Petrossian, Johnnie Walker Blue and Swarovski. The pilot program — launched in New York City on November 15, 2006 at Time Warner Center’s The Shops at Columbus Circle — affords luxury retailers the chance to reach a wider range of shoppers; and to Related Urban Development, the presence of such high-end merchandise adds extraordinary value to its common area.

“It gives luxury merchants an opportunity to ‘test-drive’ the project before making a full-time commitment,” says Webber Hudson, executive vice president of Related Urban Development. “It’s an incubator of sorts. And for the same reason it works well for us.”

Unlike regular RMUs, which are excellent revenue generators for developers in their own right, these “LMUs” (luxury merchandising units) have certainly taken specialty leasing programs to a new, more distinctive level — taking full advantage of higher quality materials, a larger footprint and a more creative shape. Compared to traditional RMUs that are small and rectangular in shape, LMUs are quite generous in their square footage, even up to 16 square feet, and use high-end glass, stone accents, newer metal laminates with creative color options, stainless steel and only the finest wood in their construction.

“The LMU came on the scene in 2006 and is beginning to garner attention,” says Terri Boettigheimer, division vice president of T L Horton Design. “These are typically requested for premium malls and are ideally suited for high-end tourist shopping centers.”

An innovative retail merchandising unit (RMU) at Fashion Show in Las Vegas. Image courtesy of STAK Design and A/Z Photography.

Fitting the bill on both counts is The Shops at Columbus Circle. Related Urban Development knew it didn’t want to launch any ordinary RMU program for this high-end tourist destination. Therefore, Related hired an architect, who worked closely with a Dallas-based manufacturer, Creations at Dallas, on the design and implementation of the program. According to Hudson, Related Urban Development required that materials be highly compatible with the materials used in the center itself.

“[We wanted] to develop a program that was compatible with the award-winning architecture of Time Warner Center,” Hudson says. “So we ended up hiring an architect and challenging him and sending him back to the drawing board on several occasions to develop this program.”

Johnnie Walker Blue, a top-shelf whisky, occupies an incredible space at The Shops at Columbus Circle, complete with flat screen projection, comfortable couches and stylish modern lighting. There is nothing “cart” or “kiosk” about this unit — it is a miniature store.

Impressive in their build and stature, the LMUs at The Shops at Columbus Circle are certainly stunning. Johnnie Walker Blue, a top-shelf whisky, occupies an incredible space complete with flat screen projection, comfortable couches and stylish modern lighting. There is nothing “cart” or “kiosk” about this unit — it is a miniature store, and a very fine one at that.

“The design and fabrication process for those structures are unique to anything else we have ever built,” says Sharon Loeff, director of sales and design, common area units, for Creations at Dallas. “They were also the most expensive structures we’ve ever constructed, but if you see them, it is apparent that they are very high-end.”

Adds Hudson: “They’re inwardly oriented while providing a great exterior view and an exterior design sensibility. They really require the shopper to come in and experience that brand’s environment. This is very important when you’re dealing with luxury brands; they’re very [sensitive to] what it is they’re presenting and how they’re presenting it.”

Leading into the 2006 holiday season, Hudson reports that sales surged dramatically for Petrossian’s caviar and other specialty food, and Johnnie Walker was also pleased with its sales activity. “And Swarovski, from my observation, has sold a heck of a lot of those stars,” says Hudson.

Loeff has also heard positive feedback from the retailers operating luxury units at The Shops at Columbus Circle. “They said consumer interest was high, and sales were on target,” she says. “I believe a luxury retailer can operate in a kiosk in any environment that can substantiate the demographics and is suited for their project.”

Not just any high-end retailer will do, though: LMUs call for a very special retailer with excellent brand recognition. “I think that if the retailers have a strong brand image, consumers will buy from them no matter if it off of a cart or brick-and-mortar,” says Janet Mayer, co-owner of Winterset, Iowa-based Merchandising Frontiers, Inc. (MFI). “However, I do not think consumers will purchase expensive luxury items off of a cart if the retailer does not have that brand recognition.”

For the foreseeable future, Related Urban Development plans to continue its pioneering LMU program during key selling times throughout the year, eventually adding new luxury retailers to the mix.

Outdoor Is Still “In”

Outdoor RMUs, like this unit by Creations at Dallas at Victoria Gardens in Rancho Cucamonga, California, present their own unique weather- and security-related challenges.

The demand for exterior RMUs appears to be gaining momentum as more and more developers draw up plans for new lifestyle centers. The request for exterior RMUs spans the spectrum from outlet centers to high-end lifestyle centers. As outdoor centers continue to grow in popularity, the product type brings a whole range of challenges for the RMU designer and manufacturer. The most obvious challenges are weather-related — constant exposure to rain, wind and sunlight can wear on the units — but another unique challenge is brought on by one of the very advantages that makes RMUs attractive in the first place: their small footprint.

“You have to be able to display enough products to generate enough sales to justify the rents and at the same time deal with elements such as wind, rain and sunlight that can make it difficult in displaying product for sale,” says Rob McCoy, principal with Carrollton, Texas-based STAK Design.

McCoy says exterior RMUs remain a large part of STAK Design’s clients’ growth plans for 2007. The company has introduced exterior RMUs at many big-name projects, including Hollywood & Highland in Los Angeles and Fashion Show in Las Vegas.

Terri Boettigheimer of T L Horton Design, agrees. “The demand for exterior RMUs is still the strongest new market segment that we have seen the last 2 years,” she says. And the demand must be met, rain or shine. Boettigheimer says T L Horton Design installs heaters and fans into its units and even includes misters in some hot-weather environments to help cool the vicinity.

Cell phone providers are mainstay retailers for RMU programs. New merchandise popular in 2006 included pet treats, cosmetics, bubble tea and Crocs sandals.

Not only must materials be able to withstand the elements, security for outdoor RMUs becomes an issue as well. “Security challenges stem from the unit having to be secure from theft and vandalism when the property is closed,” says Mayer. “Not only must the unit be totally locked down with well built security materials, it must also be physically anchored to the ground.”

In 2006, Mayer’s company, Merchandising Frontiers, completed exterior specialty leasing programs at Crocker Park in Westlake, Ohio, as well as two centers in the Orlando/Kissimmee, Florida, area: The Loop and Pointe Orlando.

Creating Visual Interest

RMUs, by basic definition, are a platform for the display and selling of the retailer’s products. The better the platform — through the use of lighting, display, fixturing, signage and architecture — the better the sales. Successful retailers understand this; they know that visual merchandising and the proper display of their merchandise is key to success.

“Look at NY Shades. This retailer has taken boxed sunglasses and focused on their visual displays and created a uniform look around the country to provide a clean and well displayed RMU of sunglasses,” says McCoy of STAK Design. “We will always focus on architecture, but by working with visual merchandisers and retailers, we have learned about a few areas that we are going to focus on, which will make it easier for merchants to display their products on our RMUs.”

Part of innovating new looks for display merchandise is using new materials. “We are adding fun details such as mosaic tile, solid surface countertops and stainless steel,” says Angie Bozeman, sales executive with T L Horton Design.

The design of this RMU is certainly thinking “outside the box.” Shapes and sizes became more innovative in 2006 as designers were challenged to move away from the traditional rectangular, box-like footprint of older RMUs. Image courtsey of STAK Design and A/Z Photography.

Bozeman’s colleague Terri Boettigheimer continues: “The primary request we hear from developers is for a new level of RMU design,” she says. And the RMU companies are stepping up their game to meet that demand. “The manufacturing industry has become very sophisticated and the material suppliers are likewise introducing new and exciting options that can be incorporated into RMU designs for both indoor and outdoor use.”

“It is our goal to keep our designs fresh,” Bozeman says. “This means that our design team always challenges our engineers to find ways to incorporate new materials and shapes in a way that holds true to our standard of quality.”

Boettigheimer views the RMU like a boutique store, which is also the same vibe that many luxury retailers seek. “Boutique stores have their own unique customer draw because they offer products that you typically cannot find in inline stores or department stores,” she says. “A well designed store includes product that is itself interesting and must be presented in a captivating way. Creating visual interest is the key.” Ways to do this, she says, include incorporating cleverly designed accessories and fixtures, complementary fabrics, three-dimensional decorations and brilliant lighting. All are part of a successful RMU program. “It starts with the product itself and ends with the culmination of all elements coming together beautifully.”


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