The document discusses the transition of retail from traditional malls to digital marketplaces, emphasizing how retailers must adapt to new consumer behaviors and expectations shaped by digital tools. It highlights the importance of understanding and connecting with the best customers, utilizing data and technology to create personalized shopping experiences. Additionally, it urges malls and retailers to collaborate and leverage digital marketplaces to enhance customer engagement and drive demand.

1. WE NOW LIVE IN A
DIGITAL MARKETPLACE ECONOMY
SHOPPERS are increasingly engaging in multiple digital marketplaces via multiple digital tools
and services before choosing how to transact and RETAILERS are increasingly discovering how to
distribute and engage in places and ways other than the mall and store
@bricksandmatter
@lfreudenberg
@robgorrie

2. the original marketplace
digital marketplaces
expensive:
square footage + right
inventory + right time + right
location + high service levels
+ scaled traffic
asset appreciation focus
efficient:
scale + all inventory + right
time + low service levels +
solve problems + distribution
customer value
appreciation focus

3. I N A W O R L D O F T H I S …
…W H Y I S T H I S T H E
S H O P P I N G E X P E R I E N C E
W E A R E P R E S E R V I N G ?

4. I N A D I G I TA L W O R L D
O F…
…W H Y I S T H I S
E N V I R O N M E N T S O
A N A LO G ?

5. customer focused Canadian startups are solving your shopper
problems at your expense
…nibbling away at the edges at the expense of the mall and retailers by using or creating digital
marketplaces, the same way FinTech startups are eating the banks.

6. WE ARE LIVING IN A VERY DIFFERENT RETAIL WORLD
The Lux+Food Mall
Community mall The Mega-mall The Digital Mall
The Digital
Marketplace
The Lux Digital
Marketplace
1950s 1980s 2000s Today Tomorrow

7. DIGITAL MARKETPLACE PARTICIPANTS
• 35% increase in stock
price over 5 years
• Westfield labs
• Big bets on tech
• Solving problems with
partners (partner
strategy) to create
their own marketplace
• Top 50 most innovative
companies (Fast
Company)
• 85% increase in stock
price over 5 years
• Simon Ventures
• Investing in
technology companies
to solve problems
(financial strategy) to
enable a marketplace
• 120% increase in stock
price over 5 years
• Open marketplace to
answer business
velocity challenge
• Non-organic growth via
developer community
• Highest in Customer
Satisfaction with Home
Improvement Retail
Stores” by J.D. Power
eight years in a row
• heavy emphasis on
digital data collection
• overweight on mobile
driven innovation to/in
the store
• use marketplaces for
content distribution

8. THE COMMON THREAD?
beyond the silo’d tactics of contests, campaigns, coupons, wifi,
digital signage, beacons, email, etc
(low value, disconnected efforts not tied to solving shopper problems, eliminating friction or improving the experience)

9. SHOPPERS & RETAILERS NOW EXPECT
A DIGITAL MARKETPLACE EXPERIENCE
a loyal relationship a true value exchange connecting on my terms memorable experiences personalized moments

10. increasing value propositions and effectiveness by playing in (or being) a digital marketplace
know your best customer -
intimately
be able to connect with your
best customer
enable, empower & engage
your retailers/brands
the connected store/mall
shotgun approaches don’t
work. know and spend money
on those spending money on
you
integrate the data in real time
and implement the right tools
to create and integrate with
digital marketplaces
use the data and tools to
provide distribution channels
and cheap digital traffic to
your tenants or brands while
letting them “plug in” to your
marketplace efforts
it’s all about personalization
but not all malls/stores are
created equal
HOW TO GET THERE
1 2 3 4

11. Lux & Frequency Shoppers
Infrequent & Convenience
Campaigns, Coupons
& Contests
Value & Non-mall /
non-store shoppers
WHO IS YOUR BEST CUSTOMER? CAN YOU TALK TO THEM? DO YOU SPEAK TO
THEM AND PROVIDE VALUE THE SAME WAY YOU WOULD A WAL-MART SHOPPER?
Why are so many traditional retailers still so far
behind at creating digital experiences that
customers really want?:
because retailers have focused exclusively
outwards at their competitors…at the expense of
paying closer attention to the cues their customers
were giving them about what they really want. This
has dramatically widened the “digital divide”
Deloitte: The New Digital Divide
#1. know your best customer
#1

12. stitching together new tracking tools to create more shopper value
traditional trade
area
digital behaviour
exact trade area
digital activity
store visit+store
path
in-store product
demand
to a transaction
basic store
segments
who are my real
customers and what
do they do
exact/enhanced
store segments via
mobile
in store identification
and tracking
product interest
who are my BEST
customers
#1. know your best customer

13. connect with your best customer:
digital traffic IS physical traffic: 60-80% of shoppers research and are influenced digitally first. You
have to GET THERE first.
#2. tools to connect with your
best customer
#2

14. digital traffic generation tools
#2. tools to connect with your
best customer

15. 10% of shoe sales in Canada
are online…90% offline
Town Shoes competitors are
intercepting them before they
even get to their website OR
their stores
use the tools to understand who is reaching shoppers via digital marketplaces before you
#2. tools to connect with your
best customer

16. who is investing in digital tools & marketplaces?: home hardware vs. the competition
#2. tools to connect with your
best customer

17. malls MUST take a leadership role in demand generation.
use their scale and data & share the “tools of demand”
not sufficient to expect/hope retailers to drive their own demand and margins. It’s a team
problem and retailers need help and your resources (cash, human, knowledge) to succeed in
your spaces
#2. tools to connect with your
best customer

18. landlord/retailer as a strategic partner with a plan
(and the data, tools + marketplace)
complete value proposition enhancement: using all of this consumer knowledge, data, tech
and infrastructure to enable your retailers or brands:
#3
1 + 1 = 5#3. empower your partners

19. sharing
digital marketplaces require open
door sharing and actioning of data
malls need to mature their efforts
retailers need to open up
data is the new oil
#3. empower your partners

20. Amazon mall vs. physical mall - Reports + Coaching: $29.99 / mo + % of sales
#3. empower your partners

21. retailer knowledge base
(I know my customers!)
3rd party knowledge base
new shopper data,
tools and services
potential mall knowledge base
& marketplace creation
brand knowledge
base
#3. empower your partners

22. changing the leasing terms / relationships based on new digital marketplace models.
changing the relationship with the data and tools
digital pureplay to retail online suiting experiential popup 400,000 merchants in a popup subscriptions meet stores
#3. empower your partners

23. a d v a n c i n g d i g i t a l r e t a i l
data + tools + partnerships —> physical customer experiences
extending marketplaces into the mall to create experiences to engage brands and delight
customers
#4. the connected store
the connected store /mall#4

24. the data-driven store becomes (and integrates with) the digital marketplaces and malls.
It’s all about store personalization and your “Customer of 1”
#4. the connected store

25. the connected store and
customer experiences
retailer / brand engagement
The Amazon Effect (retailer
friction elimination)
shopper problem solving
automation
analytics sources
transactional sources
data aggregation
data analysis
data visualization
data distribution
tactics data demand generation engagement experiential
connect with consumers
change customer expectations

26. THE DIGITAL MARKETPLACE ECONOMY IS
HEREthe ways malls and retailers can participate has fundamentally changed
Laurie Freudenberg
laurie@bricksandmatter.com
Rob Gorrie
rob@bricksandmatter.com