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The Mall is Dead
- 1. THEMALLIS DEADWho Killed It, Why It’s Not Coming Back and What’s Next for Retail
- 6. The mall isn’t coming back to life.
- 7. Let’s see what we learn from examining the body.
- 8. Let’s see what we learn from examining the body.
- 9. First, we’ll check the vital signs, just to be sure the mall is really dead.
- 10. 400+ MALLS Source: Yahoo! Finance were repurposed or closed outright in last decade
- 11. Source: Yahoo! Finance No new enclosed malls have opened since 2006
- 12. Green Street Advisors, June 2012 10%of the 1,000 malls in the U.S. will FAILin next 10 years
- 13. ARE MALLS OVER? AMERICA’S ABANDONED MALLS ARE PLACES OF NIGHTMARES -BEAUTIFUL DECAY NORTHTOWNE SQUARE MALL FIRST TOLEDO MALL TO JOIN “DEAD MALLS OF AMERICA” -EXAMINER.COM
- 14. Yep, things are NOTLOOKINGGOOD for shopping malls.
- 15. (But it wasn’t always this way...) Yep, things are NOTLOOKINGGOOD for shopping malls.
- 17. Sales / occupancy rates at malls are stagnant; only fortress malls continue to thrive 2009 More than 60 new malls larger than 400,000 square feet open in U.S. 80s–90s First enclosed regional mall, Southdale Center, opens in Edina, MN 1956 First megamall opens in Alberta, Canada with over 800 stores 1981 Mall of America opens with more than 35 million visitors in the first year 1992
- 18. FORTRESSMALLS are still succeeding due to population growth, a desirable tenant mix, sophistication of nearby residents, and high-end amenities offered. Some
- 19. In 2012, these two fortress malls surpassed $1 billion in sales! South Coast Plaza Costa Mesa, CA 2.8 million sq. ft. Northpark Center Dallas, TX 2 million sq. ft.
- 20. So, who is to blame for killing the traditional shopping mall?
- 21. GEN Y
- 25. In 2013, millennials spent about By 2020, millennial retail spending could hit $1.4 TRILLION $600 BILLION
- 26. What was Gen Y’s MOTIVE?
- 27. Malls weren’t meeting their LISTOFDEMANDS
- 28. Walkability
- 32. Source: ArchPoint Consulting of millennials say customer service is very important 48%
- 33. Source: ArchPoint Consulting 80%of millennials want brands to entertain and delight them during their shopping experience
- 34. of millennials demand an integrated, seamless shopping experience, regardless of channel.68% Source: Accenture
- 35. Online shopping offers a wider selection, better prices and access to more information.
- 36. Naturally, malls are struggling to keep up.
- 37. Amazon’s five-year average ROI is 17%whereas traditional retailers average 6.5%
- 38. During the 2013 holiday shopping season, U.S. retailers received roughly HALFof the holiday foot traffic they experienced three years prior.
- 39. In 2014, it is forecasted that online sales will account for 9%of total U.S. retail sales.
- 40. This will likely increase to 11%of total U.S. retail sales by 2018.
- 41. Don’t write off these new, higher expectations as MILLENNIALS BEING MILLENNIALS*
- 42. * Millennials are stereotypically assumed to be spoiled, demanding, etc. MILLENNIALS BEING MILLENNIALS* Don’t write off these new, higher expectations as
- 43. This evolution within the retail industry extends beyond adults ages 18 to 35. There is a NEWCLASSOF CONSUMERS
- 44. They expect a new kind of shopping experience that has… Walkability Experiences Connectivity
- 45. and they are going to get it.
- 46. The new-class consumer provides instant feedback. She posts pictures of what she likes on Instagram and complains on Twitter about bad customer service. She spends money in places where she enjoys being. The smart retailers are taking this feedback and evolving their visions and merchandising strategies. Liz Gillespie VP Marketing North American Properties
- 48. We've had a real estate strategy of not bundling or taking weaker malls, and we go to [lifestyle] centers… which allow us to really drive our business through community. Christine M. Day Lululemon Athletica Former President and CEO
- 50. And they aren’t alone. Countless restaurants and retailers are choosing this…
- 51. Alpharetta, GA
- 52. Instead of this…
- 54. Some brands are leaving their current Alpharetta locations and relocating to Avalon.
- 55. Others are completely new to the market and chose Avalon for their first location. L O U G R E Y
- 56. And they aren’t alone. Research shows that top brands and up-and-comers, alike, are moving AWAYFROMMALLS
- 57. 1STOREOPENEDTHISYEAR 4MOREOPENING The Woodlands in The Woodlands, Texas (Lifestyle Center / March 2014) University Park Village in Fort Worth, Texas (Lifestyle Center / Summer 2014) The Summit in Birmingham, Alabama (Lifestyle Center / Fall 2014) Avalon in Alpharetta, Georgia (Mixed-Use / Fall 2014) Classen Curve in Oklahoma City, Oklahoma (Mixed-Use / Fall 2014)
- 58. 3STORESANNOUNCED TOOPENTHISYEAR Belvedere Street in Tiburon, California (Standalone / June 2014) North Hills in Raleigh, North Carolina (Lifestyle Center / June 2014) Avalon in Alpharetta, Georgia (Mixed-Use / Fall 2014) Planning to open another 5-10 before the year’s end; haven’t announced where or when
- 59. 78FREESTANDINGSTORES The McLaughlins seek buildings with character on street locations, occasionally open in lifestyle centers, and shun malls. “Frankly, the mall atmosphere diminishes the brand.” – Kevin McLaughlin
- 60. Top developers and operators GETIT
- 61. THE GROVE’S AWARD-WINNING CONCIERGE SERVICES Personal shopping Dining reservations Package check Store, area and tourism information Foreign language assistance Events and activity assistance The Grove Gift Cards by American Express
- 62. ONE OF THE BIGGEST TOURIST ATTRACTIONS IN CALIFORNIA WITH 18+ MILLION VISITORS PER YEAR THAT’S MORE THAN DISNEYLAND!
- 63. THE AMERICANA AT BRAND’S CONCIERGE SERVICES Bellman service, package assistance, package check Restaurant and travel reservations Assistance with concert/event tickets Postage, mail, shipping and delivery assistance Gift giving and shopping assistance Gift cards by American Express
- 64. THE AMERICANA AT BRAND HAS 16+ MILLION VISITORS PER YEAR GENERATES ANNUAL SALES OF $1,100 PER SQUARE FOOT OUT OF ITS 70 STORES
- 65. And…
- 66. The Southeast’s preeminent experiential development – a place where specialty retail, entertainment, restaurants, residences, offices, hotels and public spaces come together to create a truly unique experience.
- 68. 60+leases signed with Avalon in the past year
- 69. 97%leased when Avalon was still 6 months away from grand opening
- 71. Their feedback is not only plentiful, but positive as well.
- 72. RETWEETS 624 MENTIONS 3,375 REACH 17.8M
- 74. MEDIABUZZ
- 75. $600M MIXED-USE DEVELOPMENT IN ATLANTA SUBURB GETS GREEN LIGHT —COMMERCIAL PROPERTY EXECUTIVE ALPHARETTA’S AVALON PROJECT SNAGS 1ST TENANT —ATLANTA BUSINESS CHRONICLE One of Atlanta’s Hottest Restaurant Groups Signs at Avalon — North American Properties “ALPHARETTA’S AVALON IS DRAWING IN-TOWN RESTAURANT, RETAILERS” —11ALIVE “ALPHARETTA LIVE-WORK-PLAY DEVELOPMENT TAKES NEXT STEP” —WSB–TV “AVALON GROWTH APPROACHING TO BOOST ALPHARETTA” —GEORGIA NEWS
- 76. The mall may be dead…
- 77. but retail is alive and well.
- 78. Experience it at
- 80. This SlideShare brought to you by
- 82. Feel free to share it with your friends or leave a comment, and let us know what you think! DIDYOUENJOYTHIS PRESENTATION?
- 83. Shutterstock / 35694751 AMC, The Walking Dead (Fair Use Doctrine) Shutterstock / 148370285 Wikimedia Commons Wikimedia Commons Flickr / “South Coast Plaza, Costa Mesa, 1980s" by Orange County Archives Flickr / "(Formerly) My Drive Home" by SteevzStuff Flickr / "Northpark Center" by Terrance Gilbert Shutterstock / 160438778 Atlantic Station / North American Properties Flickr / “The Grove in Los Angeles” by Eric E. Johnson Angie Mosier Shutterstock / 3666347 Atlantic Station / North American Properties Shutterstock / 119152066 Lululemon / Media Assets Flickr / “Anthropologie" by Dave Pinter Wikimedia Commons Kendra Scott Blog Flickr / “Vineyard Vines Hingham in-Store" by Jeff Cutler Flickr / "The Grove (Los Angeles)" by Prayitno Photography Flickr / "LA Farmers Market" by Prayitno Photography Flickr / "The Americana at Brand" by Chris Yarzab Shutterstock / 94124290 CREDITSSlide 2, 3, 4 Slide 5, 6 Slide 8 Slide 10 Slide 11 Slide 16 Slide 19 Slide 22, 23 Slide 26-29 Slide 30, 31 Slide 36 Slide 38 Slide 40 Slide 41 Slide 45 Slide 48 Slide 49 Slide 52, 53 Slide 54, 55 Slide 65