You can’t bowl two strikes in a row while shopping on Amazon. You can’t smack a golf ball past a windmill for a hole-in-on-one while browsing Temu.
There are certain retail experiences that consumers can only enjoy in person. And those retailers who are offering experiences? They are succeeding today, in both the Twin Cities market and across the country.
Patricia Weller, an attorney and chair of the Commercial Real Estate Department at Minneapolis law firm Monroe Moxness Berg, said that consumers today are firmly in out-and-about mode. They grew tired of online shopping during COVID and are now eager to shop in person again.
That drive has powered the retail sector, both locally and across the nation, Weller said. And as others have said, experiential retail is leading the way today. Weller points to Can Can Wonderland in St. Paul as an example.
This former can factory now houses an entertainment venue of more than 300,000 square feet that features indoor miniature golf, vintage arcade games, a bar and restaurant.
“Just look at what you get with Dick’s Sporting Goods locations,” Weller said. “The location in Minnetonka has a batting cage. It has an ice rink for hockey. Kids and families can engage in a lot of activities there. This concept of creating experiences has been very successful for Dick’s. REI has been around for a long time, but it has experiences, too, such as climbing walls. It’s about encouraging people to come in and enjoy their time in your store. It’s not just hoping they run in and buy something. It’s a family experience.”
Weller has also seen steady growth in the number of new restaurants opening in the Twin Cities market. Suburban areas are especially seeing a strong influx of new restaurant concepts, Weller said.
This makes sense. Rents are typically less expensive for suburban restaurant locations. At the same time, with the office sector continuing to struggle, there might not be as many customers in downtown Minneapolis. This trend, too, is encouraging restaurateurs to look for space in suburban locations.
This isn’t to say, though, that restaurant concepts are completely avoiding downtown areas. The glamor of opening in the center of the city can still be a lure.
“You are always going to have destination restaurants in downtown,” Weller said. “That’s true even in nearby neighborhoods such as the North Loop. That’s where many of the cutting-edge restaurants go. These are walkable, vibrant neighborhoods.”
Hot spots for new restaurants? Weller points to the east side of Minneapolis near U.S. Bank Stadium as an area that is seeing new restaurants open. Edina is one of the more affluent areas in the Twin Cities and is also home to several new restaurants. Apple Valley and Eagan, too, are attracting young professionals, with restaurants following them.
Given the largely positive news surrounding the retail sector today, is there anything that is concerning retailers? Weller says that many of her clients are concerned about expanding insurance requirements and the rising cost of insuring their spaces.
Other retailers worry about the neighborhoods and properties that surround them, Weller said. “They are very interested in what is around them,” Weller said. “They want to make sure that it is a synergistic fit. I am getting more inquiries from clients going into multi-site developments asking me, ‘Who will be my partners?’ Customers like that mix of restaurants and retailers. But the retailers want to make sure that the other businesses near them are a good fit for what they are offering.”
