Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Industry Trends
Stephanie Cegielski
May 2019
THE RETAILAPOCALYPSE
In-Store
Brick &
Mortar Sales
$4.5T
85.9%
Other Sales
$746.8B
14.1%
Brick & Mortar
Online Sales
$211.0B
4.0%
Pure-Play
E-c...
Technology Omnichannel E-Commerce Customer Engagement
Major global trends impacting our industry
Consumer Personalization
...
Technology
69%
31%
Used for Store Expansion
Used for Other Expenses
Omnichannel is coming to life
Nearly 75% of multi-channel retaile...
Web traffic goes up in markets after
retailer opens a new physical store
45%
Emerging
Retailers
Established
Retailers
36%
...
Out of sight…out of mind
The greater the proportion of
stores closed in a market, the
greater the decline in the share
of ...
Customer Engagement
Sources: ICSC Research
Conducted Research Online
Before Shopping
84%
Millennials
77%
Gen X
61%
Baby
Bo...
Demographics
Generational Cohorts
Silent Generation
Born 1928-1945; Ages 73-90*
Sources: Pew Research Center; Kasasa; ICSC Research
*Ag...
From Demographics to Psychographics
19
21
23
25
27
29
31
1960 1970 1980 1990 2000 2010
Age
Men Women
2017
Sources: U.S. Ce...
Peak Consumer Spending
$
$10
$20
$30
$40
$50
$60
$70
$80
Under 25 25-34 35-44 45-54 55-64 65+
Thousands
Average Annual Exp...
Consumer
Experience
77%
Food & Beverage
Dining
Establishments
70%
Entertainment
and/or Other
Leisure Activity
76%
Health & Wellness...
Customer Service
65%
Quality customer service
is a factor in making a
purchase
67%
Quality customer service
leads to more ...
Value
56% of adults shop
off-price retailers at
least once a month
Shop off-price retailers:
• Everyday low pricing
• Budg...
Gen Z
Malls popular among Generation Z
* Based on ICSC’s Monthly Consumer Engagement Survey conducted April 30-May 2, 2018.
Gen ...
Physical stores preferred
Physical stores Online from retailers with stores Pure-play internet retailers
Apparel Electroni...
Most popular mall activities: eating, shopping and socializing
Shop
76%
Dine
76%
Socialize
59%
See movies
44%
Personal
car...
The impact of social media on in-store purchases
Instagram Snapchat
YouTube Facebook
All the time
Frequently
Sometimes
Nev...
The retail renaissance cegielski
Upcoming SlideShare
Loading in …5
×

The retail renaissance cegielski

31 views

Published on

PRISM 2019 Presentation

Published in: Real Estate
  • Be the first to comment

  • Be the first to like this

The retail renaissance cegielski

  1. 1. Industry Trends Stephanie Cegielski May 2019
  2. 2. THE RETAILAPOCALYPSE
  3. 3. In-Store Brick & Mortar Sales $4.5T 85.9% Other Sales $746.8B 14.1% Brick & Mortar Online Sales $211.0B 4.0% Pure-Play E-commerce Sales $294.0B 5.6% Mail Order / Internet Auction $160.2B 3.0% Other Non-store (i.e. shipping & handling) $81.6B 1.5% Retail Real Estate is Becoming Consumer Real Estate In-Store Brick & Mortar Retail Sales Food & Beverage Pure-Play E-commerce 2018 Sales (in billions) $4,540.5 $717.0 $294.0 Growth since 2013 $418.2 $140.7 $135.6 % Growth 10.1% 24.4% 85.7% Salons, Laundry, Fitness & Recreational Sports Centers, Movie Theaters $159.5B 2.5% Total Retail Sales $5.3T 81.7% F&B $717.0B 11.1% Other $306.5B 4.7% 2018 Sources: ICSC Research, US Census
  4. 4. Technology Omnichannel E-Commerce Customer Engagement Major global trends impacting our industry Consumer Personalization Demographics Experience Value Baby Boomers Millennials Urban Density
  5. 5. Technology
  6. 6. 69% 31% Used for Store Expansion Used for Other Expenses Omnichannel is coming to life Nearly 75% of multi-channel retailers are more profitable than their pureplay counterparts Stated Purpose for Most Recent VC Funding Round Survey of 13 VC-backed “evolved pureplay” retailers Actual Stores 2016 2017 2022 5 25 100 Planned Source: L2: Death of Pureplay Retail
  7. 7. Web traffic goes up in markets after retailer opens a new physical store 45% Emerging Retailers Established Retailers 36% The Halo Effect: how bricks impact clicks Opening a physical store increases traffic to that retailer’s website Source: ICSC Report “The Halo Effect: How Bricks Impact Clicks”
  8. 8. Out of sight…out of mind The greater the proportion of stores closed in a market, the greater the decline in the share of web traffic in the markets where the retailer operates stores. The share of web traffic within the market goes down when a retailer closes a store Source: ICSC Report “The Halo Effect: How Bricks Impact Clicks” The Halo Effect: how bricks impact clicks Opening a physical store increases traffic to that retailer’s website
  9. 9. Customer Engagement Sources: ICSC Research Conducted Research Online Before Shopping 84% Millennials 77% Gen X 61% Baby Boomers Quality 51% Price 73% Mobile Device Use In Store:  Compare prices (53%)  Get digital coupons to use in store (39%) 70% Millennials 62% Gen X 44% Baby Boomers Use Click-and-Collect at least once a month
  10. 10. Demographics
  11. 11. Generational Cohorts Silent Generation Born 1928-1945; Ages 73-90* Sources: Pew Research Center; Kasasa; ICSC Research *Ages in 2018 Generation X Born 1965-1980; Ages 38-53* Baby Boomers Born 1946-1964; Ages 54-72* Generation Z Born 1997-2015; Ages 3-21* Millennials Born 1981-1996; Ages 22-37* Generation “Alpha” Born 2016-2018; Ages 0-2* 0 10 20 30 40 50 60 70 80 Millions
  12. 12. From Demographics to Psychographics 19 21 23 25 27 29 31 1960 1970 1980 1990 2000 2010 Age Men Women 2017 Sources: U.S. Census Bureau; Centers for Disease Control and Prevention; ICSC Research 21 22 23 24 25 26 27 1960 1970 1980 1990 2000 2010 Age 2016 23% Median Age at First Marriage 32% 1960 2017 27% 1990 Percent of 18-34 Year-Olds Living At Home Median Age at First Child
  13. 13. Peak Consumer Spending $ $10 $20 $30 $40 $50 $60 $70 $80 Under 25 25-34 35-44 45-54 55-64 65+ Thousands Average Annual Expenditures, 2016 Sources: U.S. Bureau of Labor Statistics; ICSC Research In 2016, 35-54 year-olds accounted for 42% of the annual aggregate expenditures while only accounting for 26% of the population.
  14. 14. Consumer
  15. 15. Experience 77% Food & Beverage Dining Establishments 70% Entertainment and/or Other Leisure Activity 76% Health & Wellness Facilities Source: ICSC “Mix of Use” Consumer Survey
  16. 16. Customer Service 65% Quality customer service is a factor in making a purchase 67% Quality customer service leads to more dwell time and spending 60% More satisfied with in-store customer service than online customer service Consumers want convenient parking and helpful guest information
  17. 17. Value 56% of adults shop off-price retailers at least once a month Shop off-price retailers: • Everyday low pricing • Budget reasons • Thrill of the hunt 73% prefer shopping off-price retailers over other retailers
  18. 18. Gen Z
  19. 19. Malls popular among Generation Z * Based on ICSC’s Monthly Consumer Engagement Survey conducted April 30-May 2, 2018. Gen Z (Ages 13-19) Millennials (Ages 20-37) Gen X (Ages 38-53) Boomers (Ages 54-72) 95% 75%* 58%* 53%*
  20. 20. Physical stores preferred Physical stores Online from retailers with stores Pure-play internet retailers Apparel Electronics Health and personal care Food & Beverage Novelty items
  21. 21. Most popular mall activities: eating, shopping and socializing Shop 76% Dine 76% Socialize 59% See movies 44% Personal care services 15% Visit gym, fitness facilities 6%
  22. 22. The impact of social media on in-store purchases Instagram Snapchat YouTube Facebook All the time Frequently Sometimes Never Frequency of Making In-Store Purchases of Items Seen on Social Media

×