A blueprint for fashion retail real estate Creating excellence in store design and operation to maximize customer satisfaction

Contents Introduction

Transform stores for customer connection

Sustainable store design and operation

Use data to optimize real estate performance

Summary 11

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Introduction Fashion retailers are responding to challenges on multiple fronts: continuing economic uncertainty, fierce competition and intensifying sustainability regulations. Customer expectations have never been higher. Retailers are responding by crafting shopping experiences that inspire loyalty, and experimenting with AI, all the while focused on revenue targets.

Stay ahead in the era of multidimensional retail As a retailer, you wear multiple hats— not just as a purveyor of goods and digital customer experience, but also as a steward of commercial real estate. Bricks and mortar remain a central pillar of the shopping experience. And in the pursuit of seamless brand experiences, retailers are finding a surprising ally in their physical stores.

As a result of the COVID-19 pandemic, the focus on improving stores has only increased as businesses have rethought how retail spaces and digitally enabled innovations could contribute to customers’ comfort and health.

We’re entering a world where smart, ‘blended’ shopping experiences are a key element in driving customer loyalty.

The objective is clear: to grow sales, strengthen brand loyalty and mitigate uncertainty with agility and innovation.

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In this e-book, we’ll shed light on the crucial role physical spaces play in fostering customer loyalty. You’ll discover a wealth of ideas for how fashion retailers can get ahead of these trends, using your physical assets to support sales growth while prioritizing sustainability in store design, construction and operation, such as through:

Designing, building, and retrofitting stores to create consistent customer experiences and deliver revenue quickly.

Learn how, with these three approaches, you can enhance brand experiences, open new and refurbished stores in record time and reduce carbon emissions.

“When identifying the biggest challenges and opportunities in the year ahead, some 12 percent cite sustainability as a principal opportunity [...], placing it at the top of the C-suite agenda. However, reflecting the scale of the task and rising regulatory pressure, 12 percent also name it as a top challenge.” – McKinsey & Company, The State of Fashion 20241

2 3 Using data to transform the operational efficiency and effectiveness of your entire physical estate.

Sustainable store design and operations.

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Transform stores for customer connection

Consumers expect a seamless and responsive experience across all channels. The challenge for retailers is to create store layouts that deliver on brand promise and maximize sales.

Plan better shopping experiences with 3D digital assets Artificial intelligence can be put to work in the form of generative design to help you explore many more store layout options than previously possible.

When you have a shortlist of options, they can be simulated using a digital twin of an actual store— a way to model a physical asset in digital, using data to simulate how physical objects function in real-world situations and how spaces are used.

This approach enables wider design thinking considerations as part of a comprehensive retail strategy and allows fashion retailers to model and trial new store layouts with agility—responding to shopper habits, seasonal promotions, and more.

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Put data to work in the store construction process Consider the collaborative potential of using the same digital 3D model across the design and build process. With BIM (Building Information Modeling) and a cloud-based approach from design through construction and handover, retailers can achieve better, faster, and on-budget construction and get new and refurbished stores operational quicker. Together, these help accelerate time to revenue.

A single source of truth for all parties involved significantly reduces errors, rework, and waste. And the power of data extends beyond the design and construction phases, permeating the entire retail environment, tracking the performance of a store design over time to improve the customer experience and maximize sales. Read on to learn how retailers can incorporate

sustainability into the design and operation of physical spaces.

Autodesk customers typically see a 15–20% increase in productivity as a result of a 3D approach to store layout, and time and cost savings of 10% on average.

The result: A next-level customer and employee experience

• Improved design quality

• Faster time to revenue

• Agility to expand and diversify services

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Sustainable store design and operation

The Corporate Sustainability Reporting Directive (CSRD) and EU textile legislation, such as Ecodesign for Sustainable Products Regulation (ESPR), have placed a spotlight on the environmental impact of fashion retail. While the focus to date has been on the supply chain, there is an opportunity to include your physical spaces in the interest of a holistic sustainable approach.

Sustainability efforts are often viewed as a cost to the business, but also represent a significant opportunity. An opportunity to save costs and drive value while also aligning with consumers’ values and reaping the brand benefits that come with it. Now might be the time for retailers to incorporate sustainability into the fabric of their stores, warehouses and logistics centers.

Ensure sustainable approaches to store design Embedding sustainability practices as early as possible into store design and renovation projects is the key to designing high-performing buildings.

This is where real-world simulations using digital tools can be a game changer. These tools help you design for more efficient operations and use of lower carbon materials by performing predictive analysis that helps you plan buildings around factors such as solar, wind and operational energy. You can also plug in strategies like standardizing key building elements and leveraging offsite fabrication for the reduction of waste during the construction process.

A shift to efficient construction using a single source of truth and cloud-based collaboration leads to a reduction in the waste that results from errors and rework. And the integration of a digital twin can ensure a continued commitment to sustainability throughout the store’s lifecycle, where you can continually optimize your operations with real-time visibility into how your buildings are performing.

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The result: Reduced environmental impact and enhanced reputation

• Optimized material and energy usage

• Reduced environmental impact

• Reduced or eliminated emissions

Attract the carbon-conscious and the fashion-conscious by accelerating net zero goals Sustainability is not just a behind- the-scenes initiative—it’s a powerful tool for building customer confidence in brands, as fashion consumers increasingly base their shopping decisions on a retailer’s commitment to sustainability. Going beyond traditional metrics, advanced data tools allow major organizations to see everything connected to wider net zero goals.

By gaining visibility of the entire value chain, fashion retailers can identify holistic ways to make their stores more carbon neutral and sustainable, presenting an opportunity to tell a more connected story with the store at its center.

By adopting digital tools and platforms across the many sites you operate, you can significantly impact overall sustainability and reduce your carbon footprint across the whole of your business, boosting positive brand image and customer loyalty.

Read on to discover how retailers can use data to maximize operational efficiency across the entire physical estate.

The integration of a digital twin can ensure a continued commitment to sustainability throughout the store’s lifecycle.

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Leverage data to optimize real estate performance across stores, warehouses and distribution centers

Pressures on margins, maintenance challenges, and the need for cost optimization create a compelling case for a data-centric approach to facility management.

Boost productivity, efficiency and margins with data integration

Digital twins—dynamic digital replicas of built assets—let you leverage data from multiple sources to optimize your real estate. These sources include construction data, facilities management systems, and Internet of Things (IoT) sensors. As a result, predictive maintenance becomes possible, ‘what if’ scenarios can be simulated, and energy usage can be monitored and optimized in the moment. Putting in place the infrastructure to do more with data also enables new types of experiences, powered by generative AI and analytics, to delight your customers.

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Manage risk and change through standardization Another critical use of data is to enhance building performance and support teams in managing risk in a predictive and preemptive manner.

Standardized, predictive data helps with better communication of the onsite risks related to a facility specification, as well as aiding predictive maintenance in stores and warehouses. This deeper understanding contributes to stronger safety measures, risk management, regulatory compliance, health and safety, and supply chain optimization.

The result: Optimized operational performance across the lifecycle of real estate assets

• Optimized asset life expectancy and resilience

• Optimized energy usage

• Improved risk management

Digital twins enable retailers to leverage data to optimize their real estate, driving productivity and efficiency.

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The journey toward retail excellence extends to retailers’ role as real estate owners, recognizing the transformative potential inherent in their physical assets.

By investing in agile approaches to store design and construction, coupled with smart, data-led strategies, you can leverage these spaces to boost brand loyalty and facilitate sustainable outcomes, while positively impacting margins—so you can be ready to meet the needs of your customers and the community at large.

Summary

Retailers are focused on delivering experiences that go beyond the transactional to engage and delight customers across all points of interaction, and inspire them to be customers for life.

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