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The 15-Minute City concept gains tracking.

The 15-Minute City Concept Gains Traction

The-15-Minute City concept is gaining traction around the world as a placemaking tactic and means to enhance quality of life.   Although “city” is used in this coined term, this planning concept is more about a focus on livable neighborhoods and districts.

 

The “15-minute city” is a term for urban design and master planning wherein it is possible to meet the basic “needs of living” within a 15-minute walk or bike ride from a person’s home.  The needs of living include such services and amenities as:

 

  • Places of work, or, at least a coworking venue;
  • Grocers;
  • Pharmacies;
  • Schools for children, youth;
  • Health care or medical facilities, or simply, doctor and dentist offices;
  • Recreation, leisure and/or green spaces; at least a pocket or linear park;
  • Cultural venues;
  • Mass transit accessibility;
  • Affordable housing is assumed;
  • Flexible zoning to allow places with different day-part uses, such as local school facility that can be a community gathering place at night or on weekends; and
  • Places of worship are seldom mentioned as part of the 15-Minute City concept, but such places may be among the most successful community-building forces that have existed.

 

 

The planning term was first coined by by Prof. Carlos Moreno, a professor at Sorbonne University (Paris, France).  Prof. Moreno is the director of entrepreneurship and innovation at The Sorbonne.  Though popularized by the professor, the 15-Minute City concept itself  has been explored in major cities throughout the world from Melbourne to Portland, prior to its burgeoning popularity as an planning concept.

 

During 2020, the 15-Minute City concept has surged in interest as a sturdy planning concept alongside the increasing acceptance of coworking facilities and communities.   Coworking venues situated in close proximity to homes simply adds an additional destination within a 15-minute “neighborhood” that is vital within a 15-minute radii.

 

The 15-Minute City concept is a multi-faceted placemaking tactic.

Another aspect of making the 15-Minute City concept workable is the presence of affordable housing within each 15-Minute City cluster.  Many neighborhoods and districts around the world may work well for most required services and work places, but do not have the array of housing choices necessary.

 

Integrating the 15-Minute City concept with allied planning concepts is particularly interesting to local governments charged with numerous quality of life objectives and economic development initiatives.   A 15-Minute City imperative, as an example, is also deemed helpful in reducing the use of fossil fuels (vehicles), fighting carbon emissions, and thereby fighting climate change.  Also, applying the 15-Minute City thresholds of accessibility also advances the objectives for some groups in reversing local zoning codes to allow increased affordable housing options and thereby, more diversity, inclusion, and social justice.

 

The 15-Minute City concept has created such interest that purpose-built apps have been created to evaluate any particular location for 15-Minute City thresholds. Here Technologies (Eindhoven, Netherlands) is one such company that has created this kind of threshold’s map to answer the question – Do You Live in a 15-Minute City? We expect that the 15-Minute City parameters and software applications that track such notions, will join similar concepts as a niche investment asset class among those pursuing environmental, social, and governmental investments (so-called ESG Investing).

REI's New Product Impact Standards

REI’s New Product Impact Standards

REI’s new Product Impact Standards for 2021, now include diversity, equity, and inclusion requirements for companies wanting REI shelf space.   The standards include the retailer’s core requirements as well as optional preferred attributes.   REI is an American retail and outdoor recreation services corporation, organized as a consumers’ co-operative.  The retailer sells sporting goods, camping gear, travel equipment, and clothing, as well as outdoor-oriented experiences, recreation activities, and courses.

 

Back in 2018, REI had originally devised its product standards to focus on ethical production practices and sustainability.  As part of this update, REI has also added two new programs to its list of preferred attributes—a collection of voluntary business certifications that vendor brands are encouraged to pursue, such as for certifications for aspects of climate and environmental stewardship, chemicals management, and animal welfare.

 

REI’s product impact standards are part of the emerging interest among global investors to evaluate environmental, social and governance issues (so called ESG Investing) when investing and operating.   REI’s dedication to sustainable and ethical production, diversity, equity, and inclusion are precisely what ESG Investing seeks to encourage.

 

According to an article by SNEWS, the outdoor recreation retailer consulted with brands of various sizes and product categories, as well as with more than a dozen DEI nonprofits, advocates, and ambassadors.   The advice from such third-parties included feasibility considerations.  SNEW is an outdoor industry publication of Pocket Outdoor Media Inc.

 

The full December 9, 2020 article by SNEWS is available at this link, along with with reference to the full document describing these REI standards:  REI holds vendors accountable for climate and DEI practices with new product standards

Retailer bankruptcies and store closings.

Lifestyle Retail Centers the “Evergreen” for Malls?

As winners and losers become apparent, lifestyle centers may be well-poised for the future.

Are lifestyle retail centers, the “evergreen” among mall formats?    For several important reasons, we believe this may be true.

 

Let’s start with the capacity for lifestyle retail centers to adapt and retrofit over time.   Most of the best lifestyle centers feature single-story retail, or at maximum two-story.    And these centers are also commonly set up in main street configurations, sometimes even with a city grid (block) format.   As the businesses that reside in a lifestyle change evolve, grow, get replaced, and the like, the cost of change-outs are simply less expensive than enclosed malls or shopping centers set within fixed overall shells.

 

Lifestyle retail centers are also less likely to be anchored by the department store and big box retailers that are facing their possible obsolescence.  And where a lifestyle center has been “anchored” by a retailer or lifestyle center (such as a fitness club) that has lost its lease, the vacant store and its pad are not difficult to re-purpose for even a new land use.   And since such anchors typically have had some amount of adjacent dedicated parking, re-configuring a building shell is somewhat more flexible when some surface parking is used.

 

Like politics, the feasibility and success of all lifestyle centers are local.    Accordingly, as local market conditions change and consumer preferences evolve, the mall product augmentations may head towards location-based entertainment, to mixed-use reconfiguration, and of course, a full scraping of the original mall concept.   Some of the reconfiguration possible include last-mile fulfillment for online retailers as well as dark grocers handling similar online fulfillment.   Shopping centers are usually well-located with regard to their local customer support for of course these centers work well for fullfillment.

 

Then there’s the placemaking and “gathering place” aspects of lifestyle retail centers.   The open-air design of lifestyle centers is conducive to providing attractive (and green) walkways, approaches from parking, sunshine (when available), and outdoor settings and structures that we all of enjoy.   When a shopping trip is more about having an experience, enjoying some camaraderie, and doing some people watching, it becomes apparent that … just maybe … lifestyle retail centers may be the new mall “evergreen” format.

 

Our directory and history of lifestyle retail centers, is available at the link provided below.

 

 

Lifestyle retail centers the new mall evergreen?

Lifestyle retail centers may be the new mall evergreen, in terms of mall configuration and customer appeal.

Arc’teryx's store has four "experiential huts"

Arc’teryx’s Store has four “Experiential Huts”

AEC’s Consumer Products Monitor

 

Arc’teryx’s store has four “experiential huts” throughout its two-level, 8,000 SF store space in Shanghai; the retailer’s 30th store in China.   The outdoor apparel and gear store is among more than 3,000 locations globally for the retailer.  Arc’teryx Equipment specializes in technical high-performance apparel, outerwear and equipment, based in North Vancouver, British Columbia.  Arc’teryx Equipment is in turn owned by Amer Sports Oyj, a PRC-owned Finnish sporting goods company.

 

The immersive approach to the store’s design is an example of the kind of experiential retail necessary to make the -in-store visit compelling.  The four different experiential huts include: the “Hardshell Hut” featuring LED screen views and sounds of the Canadian mountains; the “Gore-Tex Hut” rain room; the “Hardgoods Hut” with the brand’s hard goods and a climbing wall; and the “Brand Hut” featuring a seasonally-changing virtual reality module.

 

Retailers that deliver in-store experiences are also what’s needed for shopping centers and retail districts.   As online retail purchases continue to rise, the relevancy of mall retail is more akin to the enduring interest of consumers for location-based entertainmentArc’teryx’s store with four “experiential huts” is the kind of hybrid retail/LBE that will allow physical mall destinations to make sense.

 

An interesting description of the store is available on the SGB Media website, at: Arc’teryx Opens Global Flagship Store In Shanghai

Mirror the at-Home Fitness Company to be Acquired by Lululemon

AEC’s Consumer Products Monitor

 

Lululemon’s $500 million acquisition of Mirror is a fascinating moment in the Convergence Era.   With the deal, Lululemon evolves its brand further into consumer lifestyle and with a decided new technology edge.    Mirror offers live classes weekly through its wall-mounted mirror device in addition to on-demand workouts and one-on-one personal training sessions.  The company is a competitor to Peloton.

 

The Mirror acquisition come as the retailer achieved surprising Q2 2020 sales results, actually achieving increased quarterly revenue during the Pandemic as compared to Q2 2019.   Lululemon’s Q2 results were propelled by its online sales being up 157% year-over-year.  The retailer’s sales at company-operated stores actually dropped 51% from the same quarter last year.

 

CNBC reported on Lululemon’s acquisition of Mirror on June 29:  Lululemon to acquire at-home fitness company Mirror for $500 million.

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