With placemaking, flexibility and the ever-changing needs of retailers and consumers in mind, retail architects are more creative than ever when it comes to built environments.
Retail spaces have changed dramatically over the past decade. Enclosed environments, once leading the trend in the industry, have been traded for open-air environments. Many properties that were once solely occupied by retail tenants now have multiple uses, including entertainment, office, multifamily and hotel. In a time when it’s tough to develop, smaller, convenience-oriented projects are dominant, with the redevelopment of regional properties a close second. Finding new life in old real estate is the mantra of today.
Retail environments have the future in mind when considering design. E-commerce is integrated into all things retail, and technology has to be considered in new designs. Because physical retail is now viewed as an ever-changing environment by tenants and owners, the flexibility of any new space is incredibly important. What’s being designed today may not be the use in a few years. Also of utmost importance to consumers is placemaking — consumers crave a reason to enter a physical space. They need to feel invited, welcome and intrigued at the same time.
Shopping Center Business recently spoke to a number of retail architects and designers to understand what creating a successful retail environment looks like in the mid-2020s.
INCORPORATING E-COMMERCE
While e-commerce hasn’t been a threat to physical retail in some time, retailers want to incorporate elements of their e-commerce platforms into their physical environments. The website should have the same aesthetics as a physical store. As such, incorporating materials, fixtures and colors that emulate the brand are top of mind. At the same time, because consumers are in a physical environment, retailers want to stress the service and experience that the brand conveys.
On a larger scale, shopping centers have to connect to the community through design, and provide a physical representation of the lifestyles consumers aspire to.
“In today’s digital-first world, people turn to physical retail for two compelling reasons: immediacy and experience,” says Brandon Wernli, studio director at KTGY. “These two factors have a synergy that we need to respond to when designing retail centers.”
The pandemic years oddly helped retail navigate e-commerce by fostering the “buy online, pick-up in-store” ethos that is common among many consumers. That has also been incorporated in many store and shopping center designs since.
“The rise of e-commerce pushes developers and designers alike to reimagine the physical retail environment as more than just a place to transact,” says Frankie Campione, principal with New York City-based CREATE Architecture. “Prior to the pandemic and as online shopping increased, we were already ensuring an environment that entertains. Now, more than ever, even the smallest of endeavors requires an experience or connection with the community it serves.”
Making retail more convenient to shoppers has been a big driver for many renovation and redevelopment projects. Consumers want easy access to goods, dining, services and entertainment, even when visiting physical environments. The pandemic ushered in some forgotten amenities from older retail establishments, namely drive-up/drive-thru pickup lanes and outdoor seating at restaurants.
Retailers are conscious of creating environments where consumers want to spend time. Pictured is a planned Starbucks location along the Pacific Coast Highway in Long Beach, California, designed by KTGY.
“Unlike online shopping, brick-and-mortar retail offers immediate, physical access to the things you want,” says Wernli. “People want to get where they are going; they want to know where to park and how to pick up their items. A retail environment must support this immediacy — signage should be prominent, and pathways need to be easy to move through. From the integration of drive-thru buildings to an increase in curbside delivery stalls, the site design and environment created will impact whether that shopper returns to the center or ventures elsewhere.”
As experience has become a key touchpoint with consumers, physical retail resolves that need for connection. Retail environments provide a backdrop for connections with brands and goods.
“The influence of e-commerce is driving physical retail toward more immersive, culturally rich environments where experience and in-person service take precedence over convenience and products,” says Michael Magee, retail studio principal with Little Diversified Architectural Consulting. “Stores are being reimagined as destinations for experiences, instant gratification, elevated hospitality and services that surpass or augment what can be found online.”
While e-commerce may be prevalent for household goods, consumers often prefer to purchase soft goods in a physical setting.
“Customers still prefer the tactile experience of trying on clothes and interacting with the product before buying,” says Page Winkler, president of mcg architecture. “Despite the growth of online retail, in-store purchases remain high, especially when it comes to items people want to see, feel or try in person. In response, we’re designing spaces that support product interaction, ease of navigation and visual storytelling to create a seamless and engaging customer journey.”
As generations change, the physical retail environment has to change to attract younger consumers. Gen Z and Gen Alpha like the integration of online and physical environments to be seamless.
“To stay relevant in this landscape, retailers are leveraging technologies such as AI-powered diagnostics and customization tools within their stores,” says Magee. “Brands are introducing self-service kiosks with generative AI capabilities that allow customers to co-create products or to receive personalized e-commendations based on real-time analysis.”
Most importantly, design creates an environment where consumers desire to buy goods.
“The physical store has evolved into more than just a place to shop,” says Winkler. “Experiential elements like dining, beauty services and entertainment are playing a major role in driving foot traffic. We’re integrating these service-oriented components into retail environments to create destinations that encourage people to linger — and shop. Physical retail is becoming more dynamic and experience-driven, and our design approach reflects that by prioritizing multi-purpose spaces, human connection and brand immersion that can’t be replicated online.”
FLEXIBLE DESIGN
With the range of uses for retail space ever evolving, retail designers and architects are working with landlords to create spaces that can be used for different types of occupiers in the future. With medical office, fitness, entertainment and dining much more prevalent in retail environments, spaces have to be more flexible for the future needs of a center.
“We design with adaptability in mind from day one, whether it is through demising strategies that allow spaces to expand and contract, clear heights for alternative uses or mezzanine potential, or infrastructure that supports multiple tenant types,” says Campione. “Today’s restaurant might be tomorrow’s fitness studio. This allows our clients to stay ahead of the market shifts without the necessity of reinventing the wheel.”
“Flexibility is a core principle in everything we design — especially in today’s retail environment where trends, technology and consumer behavior can shift rapidly,” says Winkler. “We prioritize cost-effective, adaptable solutions that give retailers the ability to evolve without needing to reinvent their space.”
Flexibility in design must also extend to the center’s common area. Today, the common area can be used for many events and purposes, and has to be adaptable to whatever need it must serve.
“Modern retail environments are moving away from static layouts and event-only spaces in favor of areas designed for spontaneous programming and micro-connections among customers,” says Nicole Rehfuss, director of visual strategy at Little Diversified Architectural Consulting. “By creating flexible zones that can serve multiple purposes — like pop-up installations, community gatherings or wellness activities — retailers can better align with evolving trends like the ‘access economy’ and heightened demand for experiential shopping. These strategies ensure that physical destinations remain relevant by uniting commerce with broader lifestyle experiences while allowing rapid adaptation as market dynamics shift.”
Little Diversified worked with developer EDENS to recreate Burtonsville Crossing, a neighborhood center in Burtonsville, Maryland, into a center that serves as a community hub. Improvements included renovated facades, repurposed retail spaces, expanded sidewalks and outdoor seating. A vibrant plaza at the center of the project was also created, allowing an area for community events, performances and seasonal markets, according to Rob Oppenheimer, senior project architect at Little Diversified.
“This flexible space has become a gathering point for residents and visitors alike, fostering a sense of connection and belonging,” he says. “This revitalization has not only boosted foot traffic and tenant interest, but also re-established Burtonsville Crossing as a thriving community anchor; a place where commerce, culture and community come together.”
Creating spaces where multiple activities can occur helps retail environments build a sense of community and belonging for residents and visitors.
“Creating attractive spaces for people allows for flexibility by providing a place for a variety of activities to occur there, bringing life to a center and making it an important part of the neighborhood,” says David Sabunas, senior design director at RDC. “Such spaces can be enlivened by anything one can imagine — outdoor dining, wellness-focused yoga or fitness classes, pop-up retail, farmer’s markets, Christmas tree lightings, Easter egg hunts, outdoor movies or a summer concert series.”
RDC is working with BH Properties to reimagine the 135,000-squarefoot Hazard Center in suburban San Diego into a modern lifestyle destination. Part of the redesign is the conversion of a large surface parking field into an inviting and useful green space featuring seating, retail kiosks, a fire pit and a space for community events. What was once a parking lot will serve as the heart of the project when it opens in 2026 as The Landing at HZRD.
TRANSFORMATIONS
Retail landlords are actively seeking to enliven properties by adding elements that foster communication and connection between the center, retailers and consumers.
“Innovative retail design is a matter of opportunity and collaboration with the developer, tenant and other stakeholders that creates a neighborhood or community,” says Noel Cupkovic, founding principal of Cleveland-based CUPKOVIC architecture. “It’s the place that everyone in the area wants to be. The retail design part of innovation is a function of the experience that the tenant is looking to offer.”
CUPKOVIC worked with owner LRC Realty to reimagine The Block Northway in Ross Township, Pennsylvania. The regional mall had been anchored by a movie theater and two-story department store. The 500,000-square-foot center has been reimagined with many tenants now having an exterior presence.
At Fountain Valley Plaza in Fountain Valley, California, mcg architecture recreated the building shells and tenant facades to bring the center into a new age.
“Our team refreshed storefronts, facades, signage and circulation patterns across the entire center to create a cohesive and contemporary look and feel,” says Winkler. “Our team also enhanced entrances and coordinated design elements across tenants to elevate branding consistency and visual identity. Ultimately, the elevated visual aesthetics and curated tenant experience brought Fountain Valley Plaza from a standard strip center to a vibrant, destination-style hub for shopping, dining and gathering.”
Urban areas are also striving for more retail and communal areas as economic development spurs more business. Little Diversified worked on the transformation of Brightleaf Square, converting two former tobacco warehouses in Durham, North Carolina, that were originally constructed in 1904 into a vibrant downtown district. The firm created open and inviting spaces with new storefronts along the central walkway.
“The expansion aimed to connect, revitalize and redefine the Brightleaf district’s identity while keeping sustainability top of mind,” says Little Diversified’s Magee. “The design reused existing materials, added more resilient plants and incorporated strategies to reduce the carbon footprint. Now, the dynamic landscape of Durham has prompted a new role for this iconic space, attracting a more than 30 percent increase in new business leases and inviting more people to come, stay and explore.”
CUPKOVIC worked with the developer on the creation of Midtown Miami, a mixed-use redevelopment of the Buena Vista Rail Yard. CUPKOVIC worked on a plan for 32 acres of the 55-acre project, designing retail and mixed-use buildings and parking structures that fit in an urban environment.
As retail developers get more creative, they are leaning on architects and designers to reimagine spaces beyond their original intent.
“In some cases, it is more surgical,” says Campione. “We’ve transformed former big box stores like Macy’s into new multi-use retail and healthcare centers. We’ve even converted a former Hooter’s franchise location into a thriving Starbucks unit. Success comes from understanding the site’s context, rethinking its purpose and designing with a clear, forward-looking strategy.”
PLACEMAKING
Many architects consider placemaking as the centerpoint to projects containing retail. You can design a building, but it needs special elements to make it a place. In retail, those elements are often changing. In the early days of the mall, center courts, skylights, carousels and fountains were considered placemaking features. Today, living walls, food halls, activated lawns and amenities help create spaces. Placemaking is also felt through the choice of materials and color palettes.
“Our goal with placemaking is to design spaces that build emotional connection, encourage organic interaction and offer value that can’t be found online — turning centers into vibrant hubs of daily life,” says Winkler of mcg. “We focus on designing retail environments that feel local, intentional and people-first. That means integrating walkable layouts, open gathering areas, outdoor seating and flexible spaces that can support farmer’s markets, pop-ups, art installations or live performances. These elements give people a reason to return — not just to shop, but to gather, engage and connect.”
“Physical retail delivers something that you can’t replicate online: a layered experience that engages the senses in real time and starts the minute shoppers arrive,” says Wernli. “When thoughtfully designed, physical retail transforms routine errands into moments of discovery and human connection. The tactile, emotional engagement of in-person retail isn’t just a differentiator, it’s the key competitive advantage.”
RDC recently designed a renovation for Fashion Valley Mall in San Diego that created drought-tolerant gardens, seating areas and shaded walkways throughout multiple levels of the center.
“This created a verdant destination for more than just shopping — an outdoor promenade to stroll and be social,” says Sabunas. “The renovation also included flexible outdoor spaces that feature resort-like amenities and public art that encourage al fresco shopping and dining, community gatherings and relaxing in an upscale setting.”
At a neighborhood shopping center level, placemaking can also be incorporated to create a sense of community. CREATE worked with owner Regency Centers to create generous outdoor dining areas, wide pedestrian walkways and seamless transitions between storefronts and gathering spaces at Belmont Chase shopping center in Loudoun County, Virginia.
“The goal was to create a contemporary village-like atmosphere where people naturally want to spend time,” says Campione. “We have always blurred the lines intentionally between indoor and outdoor when we are able to create places to linger. Outdoor spaces need to be more than aesthetic. They should be a functional extension of the tenant experience and a key ingredient in making retail destinations feel alive and welcoming.”
