Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/753030
28 S C T / D E C E M B E R 2 0 1 6 as much about showcasing what users are able to do with smartphones and wireless devices as they are about selling products and service contracts, says Michael Hirschfeld, executive vice president of national retail tenant services at JLL. (JLL represents T-Mobile nationally in its retail-site selection.) T-Mobile opened a flagship store in Times Square in January and also rolled one out on Lincoln Road in Miami's South Beach area in September. Both are designed to give customers new and entertaining ways to shop for wireless services and to experience what T-Mobile has to offer, according to company spokeswoman Brandy Sloan. In addition, the two offer exclusive items that shoppers can get only at those particular stores, such as city-specific phone cases and customized products. "These stores also serve as test beds for new and better ways we can serve our customers and continue to change the wireless retail experience," said Sloan. Nearly two-thirds of American adults already own a smartphone, according to Pew Research. Thus, most cell-phone stores focus their sales efforts not so much on first-time users as on existing customers, to whom they offer service- plan changes and upgrades, technical assistance and the like. Because customers want to be able to walk into a store just around the corner from the office or to make a stop on the way home, the big carriers are keen to provide such convenience. Verizon Wireless is the largest U.S. carrier, in customer terms, serving some 113 million with smartphones, tablets and other devices. According to Cushman & Wakefield, the company operates roughly 1,800 stores in North America, with about 20 more on the way. AT&T; is second, with about 100 million subscribers, but it boasts the largest store count, at 2,220, with roughly 75 more pending, Cushman & Wakefield says. AT&T; has been advancing with expansion in Mexico, where it now serves about 10 million wireless customers. Sprint and T-Mobile are putting pressure on their larger rivals. T-Mobile holds third place based on revenue and serves 63 million customers. T-Mobile also has the most-active pipeline for store growth, being on track to roll out some 400 new U.S. stores in 2016 alone, which will bring its total to nearly 4,000 across its T-Mobile and MetroPCS banners. Sprint is fourth, providing cell service to 45 million customers directly and to 15 million through resellers and affiliates. Sprint has a current store base of about 1,700, with 20 in the pipeline, like Verizon, as of midyear, according to Cushman & Wakefield. In addition to these major players, there are a number of smaller chains in the game. Among them are The Cellular Connection and Wireless Zone, which, combined, account for some 1,000 stores in the U.S. "Tomorrow there could be a new carrier or a new phone," said Fishbach. "Expansion in the category is subject to technology as well." Cricket Wireless is an up-and-coming prepaid services provider that began offering wireless broadband in 2007, and it enjoys the benefit of some financial muscle, having been acquired by AT&T; in 2014. All these carriers want to become the go-to source for products, services and information, given the growing numbers of things that users are now able to do with mobile devices. "They are trying to mirror how technology is integrated in our lives through these retail concepts," said Hirschfeld. "And they want to be there as a content provider and a retailer." n The store is now the biggest product we produce. Accessories are avenues, and the huge digital screen in each store is the forum" " —ANGELA AHRENDT, APPLE'S SENIOR VICE PRESIDENT OF RETAIL S T O R E F R O N T S