10.22.2012the changingface of retail BRUCE LEONARD MANAGING PRINCIPAL
WHO WE ARE 1 WE ARE an uncommon collective of designers, brokers, architects, developers, planners, researchers, and creative thinkers. We are inspired by the desire to create distinctive places and meaningful brands. Whatever the challenge, our team of experts is ready to take it on with you – our collaborative ideology is our greatest differentiator. STREETSENSE.
WHO WE ARE 2 WE HAVE A SPARK. a knack for storytelling. For understanding the end users of a project and connecting with them on an emotional level at every opportunity – through brand, design, architecture, and location. Each of these elements works together and elevates the others, with measurable results. WE CREATE VALUE. brands and places people love. Through our comprehensive approach, we have a unique ability to identify, harvest, and grow places and brands that really resonate. We are a team of experts that, together, is consistently ahead of trends. We never play catch-up – neither should you. WE INSPIRE GREATNESS. our clients to think about things a little bit differently. Because we do. We approach every project in a thoughtful, unconventional way. Not for kicks, but because the changing world demands it. We are known for leading our clients down uncommon paths to uncommonly great success. WE DELIVER THE EDGE. your vision through our creativity. We do so by working in an environment that is collaborative and truly multi-disciplinary. We are better architects because we’re brokers. Better designers because we’re developers. And we’re not just tooting our own horn. Our work speaks for itself.
WHAT WE DO 3 architecture architectural design restaurant design + Interior Design retail store design prototype development prototype adaptation construction documentation contract administration sustainability consulting 3-D visualization PLANnING site + master planning Creative naming design guidelines branding site analysis logo development streetscape + urban design WE DO environmental graphics entitlements signage site signage + wayfinding packaging landscape design marketing community outreach print collateral advertising public relations web development development social media interactive media photography feasibility studies landlord rep tenant rep BROKERAGE+ due diligence tenant coordination REAL ESTATE market research + analysis pro forma analysis custom demand modeling design + construction management site assessment investment sales roll-out strategies STRATEGY value engineering advisory services merchandising strategies
five major factors affecting retail development moving forward we are in the perfect storm...
1 OVER SUPPLY OF MAJOR RETAIL BRANDS 5 • Leading up to the downturn in 2008, Wall Street and the Investor Market were driving Retail Expansion • Many major retailers lost site of sound expansion strategies resulting in store cannibalization and dilution of brand • National retailers will be scaling back on new growth moving forward with some stores reducing the store count by 50%
2 MAJOR CHANGE IN CONSUMER BUYING PATTERNS 6 • Post 2008 the Baby Boomers started to cut back to spending, particularly with respect to Goods and General Merchandise • The X&Y Generation is becoming a significant buying force focused on “Experience” over “Things” • National and Local Retailers are adjusting to the new buying patterns and trying to re-gain their footing...there will be some winners and losers • The retailer needs to figure out how to get into the pocket of the 25 year old, who has 10% of the buying power of their parents.
3 INTERNET SHOPPING INSURGENCE 7 • Leading up to 2008... Internet shopping was insignificant compared to the dollars spent in bricks and mortar retail...roughly 3 to 8% of sales • According to recent studies...internet sales represent over 18% of total sales with the curve trending almost vertical • Many National Boxes and commodity retailers are seeing the relevance of their stores diminish...some will not survive • Specialty stores are trending towards “gallery” locations • We are just as the beginning of the internet’s influence on bricks and mortar shopping
DEVELOPMENT PATTERNS ARE SWITCHING TO4 “URBAN” OVER “SUBURBAN” 8 • Both Boomers and X & Y’s are moving back into the city and retailers are following. • Urban markets are undeserved by most retail categories and represent the biggest opportunity for retail expansion • The customer wants to connect to the retailer, regain the sense of community. • Convenience is critical.
5 STRATEGY IS THE KEY TO SUCCESS 9 • Location, location, location is now environment, environment, environment • Connecting the consumer to the retailer is key. • Not everyone who makes $80k/ year wants the same thing. Pyscho- demographcs are more important than ever. • Live, work and play were words over the last 10 years. They must be executed perfectly going forward.
100 Years of Retail in America100 YEARS OF RETAIL IN AMERICA 10 Shopping Center Growth Curves 100 YEARS OF RETAIL IN AMERICA Growth Downtowns Malls Lifestyle/Mixed Use Power Over-Heated Centers Moderate Slow No Growth 1900 - 1960 1985 1995 2005 2012-Future
ALL CATEGORIES STILL MAINTAIN THEIR RELEVANCE... 11SOME MORE THAN OTHERS POWER CENTER SPECIALTY CENTER PLACEMAKING