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Retailers in the leasing process math, demand and performance
The document discusses the leasing process for retailers, addressing key factors including retail math, performance objectives, and negotiation tools. It emphasizes the importance of lease terms, tenant relations, and understanding market dynamics to achieve successful outcomes for both mall owners and retailers. Additionally, it highlights the need for continual evaluation and adaptation in the retail landscape to maintain competitiveness.
Retailers in the leasing process math, demand and performance
- 1. RETAILERS IN THE LEASINGPROCESS MATH, DEMAND AND PERFORMANCE
- 2. OBJECTIVES ▪ RETAIL MATH ▪TOOLS OF LEASING ▪ PERFORMANCE MATTERS ▪ LEASING DURING OPERATIONS RETAIL VISION LTD ISTANBUL 15.10.2013 2
- 3. THE SUMMARY FAMILY DISPUTEIS THE NAME OF THE GAME RETAIL VISION LTD ISTANBUL 15.10.2013 3
- 4. IN THE MALL IN THE STORE FIXED(BASE) RENT HIGHEST IS BEST KEEP IT LOW TURNOVER RENT EXTRA IS GOOD OK BUT FAILURE IS YOURS CAM CHARGES IT’S ALL FOR YOU THE LESS THE BETTER MARKETING FUND PAY MORE, PAY ALL BRAND VALUE PAYS LESS LOCAL GVMT CHARGES PAY ME BACK OK RETAIL VISION LTD ISTANBUL RETAIL MATH: IN THE MALL & IN THE STORE 15.10.2013 4
- 5. RETAIL MATH BASICS SUPER MARKET DEPARTM. STORE MEDIUM SIZE APPAREL&HOME LEATHER GOODS SALES/M2 INDEX 150 80 120 100 70 PROPERTY /SALES% 2-4% 3-6% 5-8% 8-12% 6-8% CGS/SALES % X COSTS /SALES% ACCESSO RIES FOD & BEVERAGE 150 200 10-15% 10-15% 70-80% 60-70% 50-70% 40-70% 60-70% 30-40% 30-40% 7-15% EBITDA % 10-20% 7-20% 3-10% 5-15% 10-20% 20-30% 15-25% 30-50% 30-50% RETAIL VISION LTD ISTANBUL 10-20% 7-15% 10-15% 10-15% 15.10.2013 5
- 6. MALL MATH BASICS SUPER MARKET GLA% DEPARTM. STORE ENTERTA INMENT APPAREL& LEATHER HOME GOODS ACCESSO RIES FOD & BEVERAGE 10 TURNOVER/ M2 FIXED RENT TURNOVER RENT 10 50 10 2-4% 3-6% 25% 8-12% 6-8% 150 80 120 100 70 150 200 2 PROPERTY /SALES% 10 2 3 50 15 12 16 10 20 30 30 10 0 0 RETAIL VISION LTD ISTANBUL 4 6 10-15% 10-15% 15.10.2013 6
- 7. LEASE AGREEMENT TOOLS OFNEGOTIATION RETAIL VISION LTD ISTANBUL 15.10.2013 7
- 8. WHAT A RETAILERWANTS ANCHORS LOCATION COMPETITION LEASE TERM SPECIALTY ENTERTAIN MENT FOOD& BEVERAGE HIGH FOOTFALL VISIBILITY CLOSED+OPEN HIGH FOOTFALL SPACE NONE SAME SEGMENT NONE SINGLE EXPERT 10+ YEARS 5+ YEARS 10-20 YEARS 5+ YEARS TENANT 30-100% ALLOWANCE MANAGEMENT FULL ATTENTION RETAIL VISION LTD ISTANBUL 10% IF, YES 30-50% FULL ATTENTION 10% NEVER MIND 15.10.2013 8
- 9. WHAT THE MALLOWNER CAN DO ANCHORS LOCATION DEAD ENDS SPECIALTY VISIBILITY COMPETITION DIFFERENTIA SAME ENTERTAIN MENT FOOD& BEVERAGE CLOSED+OPEN HIGH FOOTFALL SPACE TION LEASE TERM TENANT ALLOWANCE MANAGEMENT SEGMENT NONE COMPETITION IS GOOD 10+ YEARS 5+ YEARS 10-20 YEARS 5+ YEARS AVOID MAY BE RETAIL VISION LTD ISTANBUL NO NO MAY BE OK NEVER NO 15.10.2013 9
- 10. RETAILER MALL OWNER LOOK AT THE MANAGER LOOKAT THE MANAGER CHAIN LIFE OF THE BRAND ACQUIRE +++ SITES COMPETI TION WHAT IT BOILS DOWN TO ALWAYS AT YOUR BACK LOOK INTO LOCAL GOVMT THE END GAME LOCATION RETURN ON PAYBACK INVESTM. 15-48 MONTHS RETAIL VISION LTD ISTANBUL PAYBACK 5-18 YRS 15.10.2013 10
- 11. LEASING: A LIFETIMEJOB NEVER REST, NEVER STOP RETAIL VISION LTD ISTANBUL 15.10.2013 11
- 12. TENANTS MALL AS A BRAND RETAIL TRENDS CONSUMER RETAIL VISIONLTD ISTANBUL COMPETITION OPERATIONS PHASE: DYNAMICS OF CHANGE 15.10.2013 12
- 13. RETAIL BRANDS HAVEA LIFE STARTUP MATURITY REGIONAL DECLINE NATIONAL &+ FALL RETAIL VISION LTD ISTANBUL 15.10.2013 13
- 14. MEASURING RETAILER PERFORMANCE INTHE MALL STORE OUTSIDE THE MALL MALL GROUP AVE. SALES 60 120 100 RENT 60 100 100 MGMT 50 100 CHAIN 100 MARKET OFFER 75 85 RETAIL VISION LTD ISTANBUL 100 100 100 100 3%/YR 10%/YR LOCATIONS 2% 10% RANK DESIGN SALES 50% 25% GROWTH RATE 1% 15% 15.10.2013 14
- 15. FOLLOW ACTION FOR FUTURE IDENTIFY CHANGE PUT YOURMIND IN THE CASH REGISTER RETAIL VISION LTD ISTANBUL 15.10.2013 15
- 16. DISTINGUISH THE LOOSERS TREATTHE WINNERS LOOSERS WINNERS ▪ ESTABLISH TURNOVER RENT ▪ BRAND CO-OPERATION IN MALL MARKETING ▪ PERIODIC REVIEWS ▪ SURVEYS AND INTELLIGENCE ▪ HUMAN RESOURCES ▪ ACT AS PARTNER ▪ RE-NEGOTIATE LEASE ▪ END THE LEASE RETAIL VISION LTD ISTANBUL ▪ INTRODUCE NEW FORMATS ▪ PROVIDE INCENTIVES ▪ RE-FIT-OUT ALLOWANCES 15.10.2013 16
- 17. STAYING ALIVE PUT WINNERS OVERLOSERS FOLLOW THE CONSUMER MALL BRAND TREAT TENANTS AS PARTNERS RETAIL VISION LTD ISTANBUL HAVE THE BEST TEAM 15.10.2013 17
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