In this issue, Michel Žalac, founder of Caron Partners and growth operating partner for mixed-use destinations, explores the subtle but costly shift that happens when a destination stops feeling like one place.
We often treat “digital transformation” as a checklist of tools, yet the most common point of failure isn’t a lack of technology—it is the presence of fragmentation. When a guest receives three different answers from three different teams, the destination speaks in conflicting voices, and the experience dissolves into a collection of separate departments rather than a single, coherent environment.
Michel dives into why orchestration is the missing layer in modern retail and why true digital maturity is measured not by what you launch, but by the friction you remove between people, teams, and moments.
Key take aways:
- Fragmentation is a Business Problem, Not a Tech Issue: Digital maturity isn’t about the number of apps or features a destination launches; it’s about orchestration. When departments (marketing, leasing, operations) act as silos, the guest experiences “cracks” in the brand. True maturity is found in reducing friction between these teams to ensure the destination speaks with one coherent voice.
- The “Relationship Layer” is the New Standard: Guests no longer compare retail destinations to other malls; they compare them to the seamless service found in hospitality and premium digital platforms. Success requires moving beyond “commercial space” to a “living environment” where the destination recognizes context—offering ease for regulars and reassurance for tourists.
- Coherence Drives Asset Value: A disjointed experience is expensive. Poor coordination leads to weaker tenant confidence and a less persuasive leasing narrative. Destinations that function as a unified operating system create better conditions for leasing and more defensible, long-term asset performance because they act as a partner to tenants rather than a patchwork of services.
