What Downtown Phoenix Has in Store for the Next Generation of Urban Retail

Retail has become one of the most talked about topics in Downtown Phoenix.

As our neighborhood continues to grow, welcoming new residents, employees, students, and visitors, so does the desire for more places to shop. But what a thriving urban retail district looks like today is more nuanced than it may seem, prompting Downtown Phoenix—and many cities across the country—to rethink what constitutes its success.

If one thing is certain, it's that both the shopping experience and the way we view this age-old activity have changed dramatically over the years.

Once a patient yet exciting process involving catalog highlighting, coupon clipping, and window shopping has been considerably streamlined by the rise of e-commerce, modern-day conveniences, and a drastic shift in consumer habits following the COVID-19 pandemic.

In the face of these circumstances and the challenges presented to once thriving brick-and-mortar operations, Downtown Phoenix has found another approach that's proving to be an effective solution to this gap in the market.

Alongside ongoing efforts to attract both locally owned and national retailers, the city is working to create an approachable environment for entrepreneurs, which enables innovative models like retail incubators and shared marketplaces to surface.

By giving early-stage entrepreneurs an accessible way to test the waters in a shared storefront, these collaborative spaces and the dedicated people behind them play a significant role in expanding our local shopping scene while serving as a proof of concept for a new generation of retail that helps small businesses launch, grow, and, ultimately, put down permanent roots.

In Downtown Phoenix, we've seen that this model is also appealing to patrons because it offers an unconventional shopping experience where, in addition to discovering local brands, they can take part in things like community pop-ups and other programming that extends beyond the storefront.

While these spaces may feel like an organic evolution of Downtown's retail landscape, their progress can be directly attributed to intentional conversations between property owners and community partners like Downtown Phoenix Inc., and municipalities like the City of Phoenix, whose shared vision is working to create the conditions for entrepreneurs to succeed in the long-term.

"Downtown Phoenix's retail landscape is strongest when our approach evolves along with it. When property owners are willing to work with early-stage businesses and public partners are committed to supporting entrepreneurship, it creates opportunities that benefit the neighborhood as a whole. By connecting the right people to move ideas forward, we're helping build a Downtown where emerging businesses have the support they need to grow, and where unique local experiences can flourish alongside future retail recruitment."

Devney Majerle, President & CEO, Downtown Phoenix Inc.

Already, Downtown Phoenix is seeing a growing number of retail collectives and mixed-use marketplaces pop up across the neighborhood, each manifesting this concept through their respective outlets while maintaining the common goal of lowering barriers for budding entrepreneurs and creating unique shopping experiences for the community.

The Dynamic Revival of the Arizona Center

If you haven't been to Arizona Center lately, you might be surprised by what you find.

What was once a largely quiet and underutilized corner of Downtown Phoenix has transformed over the past few years into one of the city's most active gathering places, thanks to fresh investment and new local ownership with Reliance Management, who are prioritizing working with emerging entrepreneurs.

Today, Arizona Center is a hotspot for exploring a lively hybrid of restaurants, retailers, specialty markets, pop-up activations, and regular community programming that brings neighbors together week after week.

This influx of activity has undoubtedly put this property on the map as a prime example of what a reimagined shared marketplace can look like.

In addition to traditional retail storefronts like The Kallie Edit, Pickers Play Shop, Rep Your Brand Marketplace, and Suits at Keystone, you can stop by on any given weekend to experience community activations like the DTPHX Farmers Market, Community Play Date, Family First Friday, and an alternating lineup of pop-up events.

Details: 455 N. 3rd St. | azcenterphx.com | @azcenterphx on Instagram

Shop Like a Local Retail Therapy AZ

From the jump, this collaborative retail hub has been unwavering in its mission to create a community where small businesses can thrive—a true testament to its Downtown Phoenix origin story.

Retail Therapy AZ’s residency at the Phoenix Convention Center speaks to an intentional effort by convention leaders to ensure one of Downtown’s busiest gateways also serves as a showcase for local enterprise, offering visitors their first taste of the city's potent community spirit from the moment they arrive.

Retail Therapy AZ is home to over 80 small business vendors in one boutique space, making it easier than ever to shop like a local. Inside, you'll find an eclectic variety of Arizona-made products, including everything from unique holiday gifts to home décor, accessories, art, candles, apparel, and more.

“I wanted to build a space where small business owners could chase their dreams without having to take on the overwhelming cost and risk of opening their own storefront. I couldn’t have done it without the incredible small business owners who were willing to take that leap with me and join forces."

Erica Jerido, Owner, Retail Therapy AZ

While shoppers enjoy the convenience of discovering dozens of local brands in one place, vendors gain something equally valuable: a supportive environment where they can establish a ground-floor presence and grow alongside fellow proprietors. 

“Retail incubators are more important than ever. Starting a business is expensive, and opening a traditional storefront isn’t realistic for many entrepreneurs. Incubator spaces allow people to start smaller, build confidence, test their products, and grow sustainably.”

Erica Jerido, Owner, Retail Therapy AZ

Details: 125 N. 2nd St. #120 | retailtherapyaz.us | @retailtherapyaz on Instagram

ModPop: Arizona's Modern Fashion Pop-Up

Nestled in a historic bungalow at Heritage & Science Park, ModPop is a modern fashion boutique where each room is its own style sanctuary. 

The shop contains curated collections from several local designers, so you can browse an eclectic variety of upcycled garments, funky streetwear, and a signature charm bar all under one roof.

ModPop's mission is to empower emerging fashion designers, especially those from underrepresented backgrounds, by providing accessible retail space and holistic business support, helping them turn their creative talent into sustainable, full-time careers.

“ModPop helps bridge the gap by lowering, and, in some cases, eliminating the steep financial barrier that may prevent designers who have a strong following online and/or at pop-ups from making the jump to brick-and-mortar retail. Creating a space where a diverse community that shares a love and appreciation for fashion and the individual designers who are the backbone of Phoenix's fashion scene can come together is essential for growing each ModPop client's business.”

Laura Sylvester, Owner, ModPop

Details: 614 E. Adams St. | modpopaz.com | @modpop.az on Instagram

Marketplace Meets Community at The Churchill

At The Churchill, shopping is just one part of a much larger experience.

The Roosevelt Row destination was designed by local developer and Phoenix Community Alliance Member, Kell Duncan, as a community gathering space where small businesses could grow together, all within a campus of repurposed shipping containers centered around a spacious indoor-outdoor courtyard.

“Collaboration is important, and that was one of the main goals of The Churchill: to create a space that can host many different types of events and create a space where people feel welcome, and that is theirs, too. Working with so many talented people with ideas comes with its challenges, but it always pushes us to find ways to work together and support one another, and that process usually has some beautiful results. Not everything works, but you learn from those opportunities as well. I am still constantly inspired by things that I see in and around Phoenix, especially by those who are younger than me. I think we are a young City with a ton of potential to grow into a really special place, and I hope that there are opportunities for everyone who is looking to build and be a part of that community.”

Kell Duncan, Co-Founder & Owner, The Churchill

The Churchill's open-concept nature makes it easy for it to exceed the typical shopping experience, oftentimes doubling as a space for hosting regular programming that brings the neighborhood together. 

An ongoing calendar of watch parties, craft clubs, trivia nights, tattoo pop-ups and collaborations with local makers gives visitors plenty of reasons to return while introducing them to new businesses with each visit.

Of the ten small businesses that The Churchill is home to, three are typical retail spaces: independent grocer Neighbor Market, modern fragrance house Cayla Gray, and disposable camera shop Strap Photo Club.

Details: 901 N. 1st St. | thechurchillphx.com | @thechurchillphx on Instagram

In the Market for Growth

The conversation around retail in Downtown Phoenix is far from over, but these establishments highlight how the urban core is making conscious efforts to connect the dots between today's retail landscape and tomorrow's opportunities.

As these businesses grow, Downtown Phoenix Inc. is committed to helping them take the next step by providing technical assistance, business planning support, financial strategy resources and guidance in finding their next brick-and-mortar location.

Every time you choose to shop locally, you not only support the livelihood of individuals in your community but also the ecosystem that enables future businesses to open their doors in the DTPHX neighborhood.