As cities evolve, retail is becoming a cornerstone of urban transformation, turning mixed-use developments into dynamic lifestyle hubs where living, working, entertainment, and culture seamlessly intersect. At a 2025 RLC Global Forum panel discussion, titled “Urban Renaissance: The High-Stakes Evolution of Retail-Driven Cities,” Craig Watson (Head of Retail, JLL), Julie Alexander (Senior Director of Smart Cities, Diriyah Company), David Wilkinson (Executive Director, Streem & Strom), Karl Schwitzke (Founder & Managing Partner, Schwitzke Group), and Lee Talbott (Senior Director, Retail Portfolio, ROSHN Group)—moderated by Simon Mitchell (CEO, Sybarite)—explored how sustainable design and innovative technologies are shaping the future of urban retail. With best practices and real-world case studies at the forefront, the discussion examined whether retail’s greatest potential lies in fostering cultural transformation or unlocking new economic and strategic advantages for the cities of the future.
Retail as the Catalyst for Urban Transformation
The notion that retail is declining is misleading. Instead of disappearing, retail is adapting and reshaping itself to meet modern demands. Over the past two decades, cities have overbuilt retail space, leading to an oversupply that no longer aligns with changing consumer behaviors. Today, people are spending less on mid-priced goods and more on travel, dining, and experiences.
To stay relevant, urban planners and developers are focusing on livable cities—walkable, green, and multi-functional spaces that offer a blend of retail, dining, entertainment, culture, and residential areas. Cities must reduce retail oversupply while enhancing urban environments to attract visitors and drive long-term growth.
The Future is Mixed-Use: Creating 15-Minute Cities
The old model of single-purpose shopping malls is being replaced by multi-functional urban spaces that combine retail, work, and leisure. 15-minute cities, where residents can access work, shopping, education, and entertainment within a short walk or bike ride, are becoming the ideal model for sustainable urban planning.
In places like Riyadh, the demand for walkable, green, mixed-use developments is increasing. Retail spaces that were once primarily shopping-focused are being restructured to include offices, co-working spaces, residential units, and cultural venues. This shift is making retail environments more dynamic, extending foot traffic beyond peak shopping hours, and creating more sustainable revenue streams for landlords.
Department Stores & Cultural Integration
Department stores, once the heart of urban shopping, are adapting to stay culturally relevant. Instead of solely being retail spaces, they are now becoming community hubs, experience centers, and even educational spaces. Some department stores are:
- Hosting art installations and cultural exhibitions to engage local communities.
- Partnering with local designers and independent brands to create unique, city-specific shopping experiences.
- Providing co-working spaces, event venues, and tech-driven activations to draw foot traffic.
Rather than focusing only on selling products, successful department stores are curating experiences that connect with their city’s heritage and identity.
Sustainability & ESG in Retail Development
Sustainability is no longer an afterthought in retail and urban planning—it is a core strategy. Developers are increasingly expected to meet environmental, social, and governance (ESG) standards, integrating green spaces, energy-efficient design, and sustainable supply chains into their projects.
While green construction costs more upfront, the long-term benefits in energy savings, environmental impact, and consumer appeal make it worthwhile. Leading global retailers are now certifying their stores for environmental standards and prioritizing sustainable materials in construction and design.
For instance, high-end retailers now require suppliers and partners to align with ESG policies before awarding contracts. This approach ensures that sustainability becomes an industry standard rather than an optional feature.
Key Statistics
- Repurposed retail spaces are seeing a 20-30% increase in foot traffic compared to traditional malls.
- 15-minute cities are emerging as a dominant urban planning model
- Sustainability-certified retail spaces are growing by 40% annually
“Retail is transforming. People seek social experiences, and the future lies in creating spaces where living, working, and shopping come together seamlessly. Mixed-use developments will define the next era of retail, and those that don’t adapt will struggle to stay relevant.”
– Lee Talbott
