Malls of the Future Are Re-Inventing Retail

September 20, 2019

Malls as we know them are going out of style — but that doesn't mean they're dying. Instead, they're using AI, curated experiences, and more to evolve and fit into the world of tomorrow.

FULL TRANSCRIPT

[MUSIC]

MALE_1: All across America, malls, as we know them are dying,

MALE_1: or so would appear if you would ask the Internet.

MALE_1: But the state of shopping in 2019 and

MALE_1: onwards isn't actually as bleak as it may seem.

MALE_1: These articles are focusing on the end.

MALE_1: But like the wise band,

MALE_1: Semisonic once said, "Every new

MALE_1: beginning comes from some other beginnings end."

MALE_1: Right now, we might just be at

MALE_1: the beginning of a retail renaissance.

MALE_1: The future of shopping is coming

MALE_1: to sooner than we realize.

MALE_1: Thanks to technological breakthroughs within

MALE_1: the fields of artificial intelligence and robotics.

MALE_1: Cheddar's exploration into how

MALE_1: technology is at the heart of

MALE_1: accelerating changes to the way we

MALE_1: shop is brought to you by iShares.

MALE_1: So what will the mall in the future look like?

MALE_1: Let's take a walk.

[MUSIC]

MALE_1: This is the mall of the future.

MALE_1: When you walk in, your device will

MALE_1: automatically connect to the Wi-Fi.

MALE_1: At the same time, an AI will recognize

MALE_1: your device and pull up

MALE_1: all the relevant data it has on you.

MALE_1: Data about previous purchases,

MALE_1: your interest regarding the store and if you might need

MALE_1: any upgrades or repairs of items you already purchased.

MALE_1: In the interim, you might get

MALE_1: a notification letting you know about

MALE_1: personalized discounts and offers

MALE_1: that might pique your interest.

MALE_1: But what really piques

MALE_1: your interests is the mannequin

MALE_1: with the snazzy outfit on.

MALE_1: Then the AI sends you a message.

[MUSIC]

MALE_1: Your phone will be the only thing you need to navigate.

MALE_1: In the Store app, you'll find a map,

MALE_1: a gallery of offerings and much more.

MALE_1: But remember that mannequin from earlier?

MALE_1: Let's go back and find out

MALE_1: more information about that snazzy outfit.

MALE_1: Using QR codes, you can get info on

MALE_1: any item you see from whether your size is in stock,

MALE_1: what material it's made out of, how much it costs,

MALE_1: and a myriad of other characteristics.

MALE_1: This feature is already available in

MALE_1: some future focus stores

MALE_1: like Nike's House of Innovation in NYC,

MALE_1: but eventually, it'll come to almost every future store.

MALE_1: Well, I like that shirt. Once you

MALE_1: get more information about it,

MALE_1: you'll realize you're not as interested

MALE_1: because it's made with polyester and not cotton.

MALE_1: However, similar items appear below it,

MALE_1: and one catches your eye.

MALE_1: It's in stock and is exactly what you're looking for.

MALE_1: So you tap it and make your way

MALE_1: over to the aisle it's located in,

MALE_1: thanks the app's map.

MALE_1: Once you get there, the shelf where the item lives

MALE_1: lights up the same color as listed on your phone,

MALE_1: making it easy to find.

MALE_1: This easy fine light up technology is being tested by

MALE_1: multiple companies and it will be

MALE_1: a staple in the stores of the future.

MALE_1: You decide you want to try it on.

MALE_1: So you go to the app and tap for an AI representative.

[MUSIC]

MALE_1: Using an augmented reality mirror,

MALE_1: the shirt is superimposed on your body.

MALE_1: While this tech isn't being implemented in stores yet,

MALE_1: it's being worked on as we speak.

MALE_1: Amazon has already patented designs for it and

MALE_1: many other companies are working on

MALE_1: similar AI Try On technology,

MALE_1: you try on the outfit in many different colors.

MALE_1: You settle on red, but you want to add

MALE_1: your own personal style to it.

MALE_1: So you speak to your representative about customizing

MALE_1: your shirt with a special pattern specific to you.

MALE_1: Getting a custom design made just

MALE_1: for you is already a reality.

MALE_1: Adidas has tested out

MALE_1: speed 3D printing shoes and Nike experts

MALE_1: can add any kind of patterning you want with

MALE_1: enough time in Nike's house of innovation.

MALE_1: Having your own unique style customized

MALE_1: specifically for you is

MALE_1: probably going to be part of the feature.

MALE_1: After discussing with a representative,

MALE_1: they take the shirt into the back and get started.

MALE_1: While it's cooking, you decide to

MALE_1: head over to the nearby tech store.

MALE_1: In this store, you can't actually buy anything.

MALE_1: It's here so people like you can come and immerse

MALE_1: yourself in the latest and greatest in tech.

MALE_1: Yet to try the stuff out, have fun.

MALE_1: It's basically like an experiential

MALE_1: playground for adults.

MALE_1: This first of its kind store is being tested

MALE_1: rather successfully with Samsung 837.

MALE_2: Here you can head to a VR lounge

MALE_2: where you play with the newest headsets.

MALE_2: Then you enter rooms full of art and photogenic lighting,

MALE_2: where you can sap some photos to post on social media,

MALE_2: check out the latest phones and so much more.

MALE_2: On your way out, you see employees

MALE_2: starting to change the layout of the store.

MALE_2: All stores might have modular functionality,

MALE_2: which would be extremely helpful.

MALE_2: It allows retailers to rearrange

MALE_2: sections of the store to better serve the customer.

MALE_2: Using the heat map of

MALE_2: foot traffic data that the retailers AI.

MALE_2: generates, it can suggest how best to situate the store

MALE_2: to make it easier for us consumers

MALE_2: to navigate without congestion.

MALE_2: Stores might also be rearranged to make space for

MALE_2: concerts or other live events

MALE_2: to entice more people to the mall.

MALE_2: Then you get a notification that

MALE_2: your shirt is ready to be picked up.

MALE_2: Before you head out, you think

MALE_2: about going to the grocery store.

MALE_2: You could do your own shopping and let

MALE_2: the cameras in the store track what you pick up

MALE_2: before walking out like the Amazon Go's stores of

MALE_2: today but you're feeling tired.

MALE_2: So instead you open

MALE_2: the store's app and let a bot do the shopping for you.

MALE_2: After all, the app knows what food and

MALE_2: toiletries you purchase and in what quantities,

MALE_2: so you allow the AI to

MALE_2: arrange in the shopping list in advance.

MALE_2: The AI uses dynamic processing

MALE_2: to select produce that comes from the same warehouse,

MALE_2: the feature that sees a ton of money on

MALE_2: deliveries and trickles down discounts to you.

MALE_2: After it's selected everything,

MALE_2: the AI arranges for your groceries to be delivered

MALE_2: back to your home by autonomous drone or car.

MALE_2: It might even be delivered directly to your fridge,

MALE_2: which is a service that Walmart has begun to offer with

MALE_2: humans but in the future, who knows?

MALE_2: It might just be robots.

MALE_2: The clothing you purchased earlier is in

MALE_2: a locker with your name on it waiting for you.

MALE_2: You pick it up and head to the exit.

MALE_2: You plop your bag into

MALE_2: your electric car and see that it's all charged up now,

MALE_2: thanks to the quick charge in

MALE_2: the mall parking lot, you head home.

MALE_2: Scan your QR parking ticket at the exit.

MALE_2: You turn left out of the mall and

MALE_2: ride off into the future sunset.

[MUSIC].

MALE_2: The future of shopping is

MALE_2: figuring out how to bring the best parts of

MALE_2: e-commerce into real world retail experiences.

MALE_2: Humans are social creatures and

MALE_2: even though we love the convenience of online shopping,

MALE_2: we'll probably never stop going to real stores.

MALE_2: With the help of AI, data driven

MALE_2: smart suggestions are certain to bridge this gap.

MALE_2: Experience will stores are amplifying this further by

MALE_2: eventizing the real world shopping experience,

MALE_2: making it a place that you want to go

MALE_2: over staying at home and shopping online.

MALE_2: Samsung 837, Nike's House of Innovation,

MALE_2: Amazon Go and many other futuristic stores

MALE_2: are piloting these ideas.

MALE_2: They're laying the groundwork for what

MALE_2: shopping will be like in the near future.

MALE_2: While most of us will have to wait to

MALE_2: experience these advancements firsthand,

MALE_2: investors who are looking to

MALE_2: future proof their portfolios have

MALE_2: the opportunity to take advantage of

MALE_2: these transformative megatrends today.

MALE_2: iShares provides you with the opportunity to invest in

MALE_2: the very companies that are poised for

MALE_2: long term growth across the megatrends,

MALE_2: that are shaping the way we work and live.

MALE_2: Learn more about how you can use iShares ETF,

MALE_2: to invest in something [inaudible 00:07:44] ,

MALE_2: visit ishares.com/megatrends.

[MUSIC]

MALE_2: If you made it this far,

MALE_2: thank you so much for watching the whole video.

MALE_2: Hopefully you liked it and if you did,

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MALE_2: thumbs up and hitting that subscribe button.

MALE_2: Um and stay tuned to

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