Retail Experts ‍Forecast Growth,Highlight Consumer Experience

⁣ Updated June 12,2025

the future of the retail ⁤market hinges on crafting retail-based experiences tailored to the next generation,according‍ to panelists at the⁢ Business Record’s Project 515 discussion held May 29. The⁤ discussion convened retail sector leaders to ⁤explore challenges,⁣ strategies, ⁣trends, and⁤ forecasts for⁤ the coming year.

Panelists included Raygun owner Mike Draper;⁤ Caroline‍ Harrelson, strategy ‍director at The Retail Coach; Aaron Hyde, senior vice president at JLL; ⁤Kara Kelso, co-owner of Slow Down Coffee Co.‍ and commercial agent with NAI Iowa Realty Commercial; and Peter Ralston, ⁣associate professor at Iowa State University.

The wide-ranging discussion covered ‍the impact ⁤of tariffs and the importance of balancing national, regional, and local businesses for a thriving retail surroundings.

Tariff Impact ⁢on retail

Peter Ralston noted that supply chains crave certainty, which ⁢is currently lacking. This uncertainty prevents retailers from accurately ⁢pricing items.Ralston anticipates tariffs may become ‍more consistent, benefiting consumers.

Kara kelso added that rising coffee prices⁤ and vendor notices about tariffs are affecting small ⁢businesses. Packaging ⁢and ingredients costs are also increasing due⁣ to reliance on overseas sources. Kelso said openness with customers is key, and Des Moines consumers are willing‍ to pay more for quality and⁤ experience.

Caroline ⁣Harrelson mentioned that some retailers have delayed opening U.S. stores due to tariff uncertainty. National brands⁣ are ‍hesitant to expand amid ⁤concerns about sourcing products.

Retail Space Issues

Aaron Hyde pointed out that Des Moines faces a tight retail ⁢space market⁢ with a 3.7% vacancy rate. High construction and labor costs intensify competition ‍for prime locations. Hyde said that even smaller markets ‍are ⁤being targeted for growth.

Harrelson noted that the cost of new growth is driving retailers toward second-generation spaces. ⁣She also⁢ emphasized the importance of‍ retailers engaging with city ⁤economic development offices ⁢to explore infrastructure assistance and incentives.

Kelso echoed the difficulty in finding small spaces in Des Moines, frequently enough at higher prices. renovating older buildings to meet code can be prohibitively expensive.

Draper said his company is ⁤strategically expanding ‍during times of uncertainty,focusing on cities and adaptable space sizes.

Growth Areas in Retail

Hyde highlighted growth in discounters, food, ‍entertainment, auto-related services, and health and beauty services.

Harrelson emphasized the demand for entertainment venues and specialty grocers, as well⁢ as boutique fitness options.

Kelso believes the growth will involve more redevelopment‍ and a mix of business types.

Ralston⁢ said that retailers who can navigate tariff and supply chain ⁤issues will gain market share by delivering customer ‍value.

Draper expressed interest⁤ in⁤ the⁤ next generation⁣ of business owners who crave⁤ physical spaces and will bring new ideas.

Hyde anticipates continued challenges due to limited space but remains optimistic about the resilient ⁢U.S. consumer.

Harrelson expects more redevelopment projects and downtown⁢ revitalization efforts.

What’s⁢ next

The retail sector is poised for continued evolution,⁤ with a focus on adapting to changing consumer preferences, navigating⁤ economic uncertainties, and creating ⁣unique experiences that ‍draw people together.