India Shopping Centre Forum 2016 Marquee Keynote Speaker ... · Visual representation of digital...

2016-5-13

India Shopping Centre Forum 2016

Marquee Keynote Speaker

Byron Lewis

2016-5-13

INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION & AGENDA& AGENDA& AGENDA& AGENDA

About me

About Mall Solutions Europe

Retail is changing

What will the future look like

Technological innovation

Design concept stores

The rise of F&B

Game changing concepts

Q&A

2UNDERSTAND UNDERSTAND UNDERSTAND UNDERSTAND ‒‒‒‒ INNOVATE INNOVATE INNOVATE INNOVATE - DELIVER- DELIVER- DELIVER- DELIVER

2016-5-13

INTRODUCING INTRODUCING INTRODUCING INTRODUCING BYRON LEWISBYRON LEWISBYRON LEWISBYRON LEWIS

Successful retailer in Australia

Commercialisation revolution – Bluewater UK

Integral part of asset management in the UK

Mall Solutions Europe manages over £10 billion of assets

RICS Commercialisation Code of Practice White PaperFounding Chairman of the BCSC Commercialisation CommitteeEditorial Board for the Shopping Centre Magazine

2016-5-13

ABOUT ABOUT ABOUT ABOUT MSEMSEMSEMSE

Commercialisation solutions to leading retail asset owners

Embed professionals into existing management teams

Outsource to central teams

Consult on a wide range of commercialisation projects

Tailored solutions that optimise the potential of retail assets

All forms and aspects of commercialisation

UNDERSTAND UNDERSTAND UNDERSTAND UNDERSTAND –––– INNOVATE INNOVATE INNOVATE INNOVATE - DELIVER- DELIVER- DELIVER- DELIVER

2016-5-13

PAST PAST PAST PAST & CURRENT CLIENTS& CURRENT CLIENTS& CURRENT CLIENTS& CURRENT CLIENTS

2016-5-13

StoresStoresStoresStores

RETAIL RETAIL RETAIL RETAIL IS CHANGINGIS CHANGINGIS CHANGINGIS CHANGING

Rapid period of global commercial changeRapid period of global commercial changeRapid period of global commercial changeRapid period of global commercial change

Retail is central to that changeRetail is central to that changeRetail is central to that changeRetail is central to that change

2016-5-13



”””” We always overestimate the We always overestimate the We always overestimate the We always overestimate the change that will occur in the change that will occur in the change that will occur in the change that will occur in the next two years and next two years and next two years and next two years and underestimate the change that underestimate the change that underestimate the change that underestimate the change that will occur in the next ten. Don't will occur in the next ten. Don't will occur in the next ten. Don't will occur in the next ten. Don't let yourself be lulled into let yourself be lulled into let yourself be lulled into let yourself be lulled into inaction.inaction.inaction.inaction.””””

Bill GatesBill GatesBill GatesBill Gates

2016-5-13

GROWTH?GROWTH?GROWTH?GROWTH?

UK non-food sales, in-store and onlineUK non-food sales, in-store and onlineUK non-food sales, in-store and onlineUK non-food sales, in-store and online

£B

50

100

150

200

2015 2020


eComeComeComeCom


2015201520152015

2020 2020 2020 2020Source: Kantar Retail

2016-5-13

B2C e-retail as % share of total retailB2C e-retail as % share of total retailB2C e-retail as % share of total retailB2C e-retail as % share of total retail


20142018

GBR CHN KOR DNK USA JAP FRA NDL AUS ESP BRZ RUS GBR CHN KOR DNK USA JAP FRA NDL AUS ESP BRZ RUS GBR CHN KOR DNK USA JAP FRA NDL AUS ESP BRZ RUS GBR CHN KOR DNK USA JAP FRA NDL AUS ESP BRZ RUS INDINDINDIND IDNIDNIDNIDNSource:

0%0%0%0%

10%10%10%10%

20%20%20%20%

2016-5-13


UK B2C e-retail sales UK B2C e-retail sales UK B2C e-retail sales UK B2C e-retail sales ££££bn % share (2013-18)bn % share (2013-18)bn % share (2013-18)bn % share (2013-18)

Source:

2016-5-13



Source: Accenture Analysis of CapIQ, Internet retailer, Annual Reports

Ecommerce participation %

EBIT %

2006 2015

Sales online & EBIT, top 10 UK non-food retailersSales online & EBIT, top 10 UK non-food retailersSales online & EBIT, top 10 UK non-food retailersSales online & EBIT, top 10 UK non-food retailers

0

5

10

15

20

2006 2006 2006 2006 2015201520152015

2016-5-13


In 2015 Amazon spent $10bn on In 2015 Amazon spent $10bn on In 2015 Amazon spent $10bn on In 2015 Amazon spent $10bn on

R&D R&D R&D R&D

(circa 10% of revenues)(circa 10% of revenues)(circa 10% of revenues)(circa 10% of revenues)

Source:

2016-5-13


2016-5-13


Shopping Centre industry is under attackShopping Centre industry is under attackShopping Centre industry is under attackShopping Centre industry is under attack

What is the conventional world doing about it?What is the conventional world doing about it?What is the conventional world doing about it?What is the conventional world doing about it?

Source: Javelin Group

2016-5-13

DEADMALLSDEADMALLSDEADMALLSDEADMALLS.COM.COM.COM.COM

2016-5-13Source: Stephan D. Lebovitz – “Five trends that will change the future of shopping centers”

WHAT WILL THE WHAT WILL THE WHAT WILL THE WHAT WILL THE FUTURE LOOK LIKE?FUTURE LOOK LIKE?FUTURE LOOK LIKE?FUTURE LOOK LIKE?

2016-5-13

GLOBAL SNAPSHOT GLOBAL SNAPSHOT GLOBAL SNAPSHOT GLOBAL SNAPSHOT THE SHOPPING RESORT THE SHOPPING RESORT THE SHOPPING RESORT THE SHOPPING RESORT CONCEPTCONCEPTCONCEPTCONCEPTChanging world of retailChanging world of retailChanging world of retailChanging world of retail

Internet revolutionizing how & where we shopDiverging models - rational and experience based shoppingDriving retailers to fewer but larger shopsWhat a shop does?

intu Eurofundintu Eurofundintu Eurofundintu Eurofund’’’’s responses responses responses response

Retail, entertainment & services hubCentred around stunning public spacesBringing together a sense of experience, a sense of placeCreating a place where people want to spend their leisure time

Create a SSSShopping hopping hopping hopping RRRResortesortesortesort

2016-5-13

Creating a Shopping ResortCreating a Shopping ResortCreating a Shopping ResortCreating a Shopping Resort

Make it emotional

Competing for people’s free time

Think family - think everybody

Think variety and think surprise

Create the family’s second spaceSomething for every family memberReduce the compromisesMake it a day out

GLOBAL SNAPSHOT GLOBAL SNAPSHOT GLOBAL SNAPSHOT GLOBAL SNAPSHOT THE SHOPPING RESORT THE SHOPPING RESORT THE SHOPPING RESORT THE SHOPPING RESORT CONCEPTCONCEPTCONCEPTCONCEPT

2016-5-13Source: Eurofund Investments


2016-5-13


Source: Eurofund Investments

2016-5-13

GLOBAL GLOBAL GLOBAL GLOBAL SNAPSHOTSNAPSHOTSNAPSHOTSNAPSHOT

TECHNOLOGICAL INNOVATIONTECHNOLOGICAL INNOVATIONTECHNOLOGICAL INNOVATIONTECHNOLOGICAL INNOVATION

2016-5-13

MACYMACYMACYMACY’’’’S AUTOMATED S AUTOMATED S AUTOMATED S AUTOMATED FITTING ROOMSFITTING ROOMSFITTING ROOMSFITTING ROOMS

Source: CBRE

Smartphones & tablets are used to request items from fitting rooms

Items are delivered through chutes

Focusing on a consumer led experienceFocusing on a consumer led experienceFocusing on a consumer led experienceFocusing on a consumer led experience

2016-5-13

HEADSPACEHEADSPACEHEADSPACEHEADSPACE

Source: CBRE

Personal interactive meditative pods

Designed to work with Headspace, a smartphone app

All-wood seat facing a screen, surrounded by a cube-like structure

Creating Creating Creating Creating zones for consumers to engage in dizones for consumers to engage in dizones for consumers to engage in dizones for consumers to engage in difffffffferenterenterenterent experiencesexperiencesexperiencesexperiences

2016-5-13

TORFSTORFSTORFSTORFS’’’’ INTERACTIVE INTERACTIVE INTERACTIVE INTERACTIVE TREND BROWSERTREND BROWSERTREND BROWSERTREND BROWSER

Source: CBRE

Interactive screens instore

Consumers can browse, check stocks and order

Linked tablets for kids

Focusing a consumer led experienceFocusing a consumer led experienceFocusing a consumer led experienceFocusing a consumer led experience

2016-5-13

TRYERS TRYERS TRYERS TRYERS SOCIALSOCIALSOCIALSOCIAL MEDIA RAILMEDIA RAILMEDIA RAILMEDIA RAIL

Source: CBRE

Social media likes and comments manifested instore

Likes and recommendations for items ranked instore

Visual representation of digital behaviour

Linking online and in-person shoppingLinking online and in-person shoppingLinking online and in-person shoppingLinking online and in-person shopping

2016-5-13

PLACEMETER PLACEMETER PLACEMETER PLACEMETER –––– FOOT TRAFFIC AND FOOT TRAFFIC AND FOOT TRAFFIC AND FOOT TRAFFIC AND CONVERSIONCONVERSIONCONVERSIONCONVERSION

Source: CBRE

Urban intelligence platform qualifying movement in cities

Uses any kind of video to assess pedestrian and vehicle movement

Video feeds are aggregated and sold

Understand flows and target relevant consumersUnderstand flows and target relevant consumersUnderstand flows and target relevant consumersUnderstand flows and target relevant consumers

2016-5-13

Mobile app using facial recognition for payments

Personal data and transaction data held in app

Smartphone is detected by Bluetooth at POS

Consumer’s face is recognised and payment processed

Enabling a positive & efficient consumer experienceEnabling a positive & efficient consumer experienceEnabling a positive & efficient consumer experienceEnabling a positive & efficient consumer experience

PAY PAY PAY PAY BY SELFIEBY SELFIEBY SELFIEBY SELFIE

Source: CBRE

2016-5-13

MITSUKOSHI MITSUKOSHI MITSUKOSHI MITSUKOSHI ROBOT INFORMATION DESKROBOT INFORMATION DESKROBOT INFORMATION DESKROBOT INFORMATION DESK

Source: CBRE

Humanoid employed on the information desk

Aiko Chihira speaks Japanese & sign language

Aiko reads facial features & gestures

Creating an exciting & stimulating consumer experienceCreating an exciting & stimulating consumer experienceCreating an exciting & stimulating consumer experienceCreating an exciting & stimulating consumer experience

2016-5-13

LOCAL LOCAL LOCAL LOCAL MEASUREMEASUREMEASUREMEASURE

Source: CBRE

Local Measure aggregates geo-tagged social media content

Gain fast & accurate consumer data

Highlighting what consumers are doing & saying in real-time

Ensuring that the consumer experience is tailored by Ensuring that the consumer experience is tailored by Ensuring that the consumer experience is tailored by Ensuring that the consumer experience is tailored by contextcontextcontextcontext

2016-5-13


UNDERSTAND UNDERSTAND UNDERSTAND UNDERSTAND ‒‒‒‒ INNOVATE INNOVATE INNOVATE INNOVATE - DELIVER- DELIVER- DELIVER- DELIVER

DESIGN CONCEPT STORESDESIGN CONCEPT STORESDESIGN CONCEPT STORESDESIGN CONCEPT STORES

33

2016-5-13

O2O2O2O2

Source: CBRE

O2 opening ‘Apple’ type stores in UK

Roving experts

Technology workshops & themed interactive events

Creating a destinationCreating a destinationCreating a destinationCreating a destination

2016-5-13

SEPHORASEPHORASEPHORASEPHORA

Source: CBRE

12 beauty stations used for instore demonstrations

Mirrors & tablets allow consumers to watch tutorials

Experience shared with friends through social media

Linking social media with in-person shoppingLinking social media with in-person shoppingLinking social media with in-person shoppingLinking social media with in-person shopping

2016-5-13

LACES LACES LACES LACES SHOE STORESHOE STORESHOE STORESHOE STORE

Source: CBRE

New concept store aimed at young consumers

Mirrored walls with special edition items on central displays

Colour & quality of the products reflected back at consumer

Rethinking conventional designsRethinking conventional designsRethinking conventional designsRethinking conventional designs

2016-5-13


UNDERSTAND UNDERSTAND UNDERSTAND UNDERSTAND ‒‒‒‒ INNOVATE INNOVATE INNOVATE INNOVATE - DELIVER- DELIVER- DELIVER- DELIVER

FOOD & BEVERAGE CONCEPTSFOOD & BEVERAGE CONCEPTSFOOD & BEVERAGE CONCEPTSFOOD & BEVERAGE CONCEPTS

37

2016-5-13

SPRING SPRING SPRING SPRING WORKSHOPWORKSHOPWORKSHOPWORKSHOP

Source: CBRE

Café & bar doubling as community hub

Offering apprenticeships & work experience

Literacy & coffee training

Profits donated to local charitiesCreating a focal point for the communityCreating a focal point for the communityCreating a focal point for the communityCreating a focal point for the community

2016-5-13

COSTA COSTA COSTA COSTA FRESCOFRESCOFRESCOFRESCO

Source: CBRE

Concept store for much larger hand-crafted bakery offer

Anglo-Italian theme throughout

Inspired by original Costa which offered freshly baked goods

Prioritise changing consumer desiresPrioritise changing consumer desiresPrioritise changing consumer desiresPrioritise changing consumer desires

2016-5-13

THE FUTURE OF THE FUTURE OF THE FUTURE OF THE FUTURE OF THE SHOPPING CENTRE THE SHOPPING CENTRE THE SHOPPING CENTRE THE SHOPPING CENTRE INDUSTRYINDUSTRYINDUSTRYINDUSTRY

Commercialisation revolution over last 20 years

Huge advances in ‘non-core’ income from common spaces

In 2000 commercialisation delivered £10m in UK

In 2015 approaching £400m

2016-5-13 41UNDERSTAND UNDERSTAND UNDERSTAND UNDERSTAND ‒‒‒‒ INNOVATE INNOVATE INNOVATE INNOVATE - DELIVER- DELIVER- DELIVER- DELIVER

MSE EXPERIENCEMSE EXPERIENCEMSE EXPERIENCEMSE EXPERIENCE –––– BEST IN CLASS BEST IN CLASS BEST IN CLASS BEST IN CLASS

2016-5-13

MSE MSE MSE MSE EXPERIENCEEXPERIENCEEXPERIENCEEXPERIENCE

42UNDERSTAND UNDERSTAND UNDERSTAND UNDERSTAND ‒‒‒‒ INNOVATE INNOVATE INNOVATE INNOVATE - DELIVER- DELIVER- DELIVER- DELIVER

Puerto Venezia, Zaragoza Puerto Venezia, Zaragoza Puerto Venezia, Zaragoza Puerto Venezia, Zaragoza – largest leisure and retail destination in Europe 206,000 m2

2016-5-13Source: ECE Market Research Destination Food

ECE ECE ECE ECE FOOD & BEVERAGEFOOD & BEVERAGEFOOD & BEVERAGEFOOD & BEVERAGE

Select by F&BSelect by F&BSelect by F&BSelect by F&B

Want Want Want Want fast foodfast foodfast foodfast food

Like food Like food Like food Like food courtscourtscourtscourts

Stay 15 Stay 15 Stay 15 Stay 15 mins+mins+mins+mins+

Stay 15 Stay 15 Stay 15 Stay 15 mins+mins+mins+mins+ Average saleAverage saleAverage saleAverage sale

F&B F&B F&B F&B every every every every visitvisitvisitvisit

Outlets in Outlets in Outlets in Outlets in ECEECEECEECE

Daily meals Daily meals Daily meals Daily meals per outletper outletper outletper outlet

Rate F&B mix as Rate F&B mix as Rate F&B mix as Rate F&B mix as goodgoodgoodgood

2016-5-13

THE FUTURE OF THE FUTURE OF THE FUTURE OF THE FUTURE OF THE SHOPPING CENTRE THE SHOPPING CENTRE THE SHOPPING CENTRE THE SHOPPING CENTRE INDUSTRYINDUSTRYINDUSTRYINDUSTRYGame changing concepts for Shopping CentresGame changing concepts for Shopping CentresGame changing concepts for Shopping CentresGame changing concepts for Shopping Centres

Unification of Bricks-and-Mortar and Online Retail

Unprecedented Intimacy with the Consumer

Conversion of Shopping Centres Into Communities

Mall Environments that Engage Millennials

Incorporating Distribution Into Shopping Centres

Accelerated Developer–Retailer Collaboration

Emergence of a New Blended Rental Model

Arrival of a Retail–Friendly Investment Outlook

Source: ICSC Board of Trustees “The Future of the Shopping Centre Industry”

2016-5-13

UNIFICATION OF UNIFICATION OF UNIFICATION OF UNIFICATION OF BRICKSBRICKSBRICKSBRICKS’’’’NNNN’’’’MORTAR & MORTAR & MORTAR & MORTAR & ONLINEONLINEONLINEONLINE

Shopping Centres as e-commerce participants

Sophisticated websites

Onsite digital consumers interfaces

Mobile communications in the mall & beyond

E-commerce retailers are getting into bricks-and-mortar stores

Solidify brand

Curate product assortments


2016-5-13


Hybrid form of commerce is emerging

Shoppers moving between digital and in-person shopping

Researching & experiencing products before purchase

Show-rooming is much talked about

Web-rooming actually more popular

90% of all US retail sales still occur instore


2016-5-13

Westfield Labs created in 2012Westfield Labs created in 2012Westfield Labs created in 2012Westfield Labs created in 2012Dedicated to digital innovationDedicated to digital innovationDedicated to digital innovationDedicated to digital innovationTicketless parking through smartphonesTicketless parking through smartphonesTicketless parking through smartphonesTicketless parking through smartphonesFood ordering appsFood ordering appsFood ordering appsFood ordering appsProduct finding and comparisons toolsProduct finding and comparisons toolsProduct finding and comparisons toolsProduct finding and comparisons tools



50% of all Westfield50% of all Westfield50% of all Westfield50% of all Westfield ’’’’ s retail purchases s retail purchases s retail purchases s retail purchases are influenced by onlineare influenced by onlineare influenced by onlineare influenced by online

Westfield London

2016-5-13

Beacons also have big implications

Compact, inexpensive Bluetooth transponders

Installed through malls & stores

Provide continuous connectivity with consumers

Empowering shopping centres owners like never before

48Source: ICSC Board of Trustees “The Future of the Shopping Centre Industry”

UNPRECEDENTED INTIMACY UNPRECEDENTED INTIMACY UNPRECEDENTED INTIMACY UNPRECEDENTED INTIMACY WITH THE WITH THE WITH THE WITH THE CONSUMERCONSUMERCONSUMERCONSUMER

2016-5-13

Leveraging technology to embrace the human experience

Enhancement of customer outreach

Emerging technologies have potential to disrupt

Billion+ smartphones sold per annum now

Developers creating apps for “every imaginable use”

Including anytime/anywhere shopping

Location & movement data enable interactional context

49Source: ICSC Board of Trustees “The Future of the Shopping Centre Industry”


2016-5-13

Arabian Centres Company using mobile phones to track traffic patternsTo improve merchandising, revenue & amenitiesGather general demographic informationSend tailored offers to smartphones



Arabian Centres, Mall of Arabia/Jeddah, Saudi Arabia

2016-5-13

North American Properties undertook a ‘design-discovery tour’

Used Facebook for consumer feedback on various design features

Experiential retailers & restaurants can assist consumer intimacy

Leisure tenants are becoming more prevalent

Common spaces designed for recreation & entertainment



2016-5-13

Properties evolving into shopping, dining & entertainment centres

Centres must be more than ‘a distribution centre for goods’

Steiner & Associates are unveiling a mixed-use project in the US

Featuring parks, places of worship & a community event space

Centres to play a greater role in the cultural life of communities

CONVERSION OF CONVERSION OF CONVERSION OF CONVERSION OF CENTRES INTO COMMUNITIESCENTRES INTO COMMUNITIESCENTRES INTO COMMUNITIESCENTRES INTO COMMUNITIES


2016-5-13

Successful events can drive significant footfall growthFrequent events in Santafe Mall, Medellin ColumbiaSo successful they can charge admissionHas become the city’s highest grossing mallFootfall has doubled in 4 yearsPeople can shop anywhere, anytime The experience makes the difference


Source: ICSC Board of Trustees “The Future of the Shopping Centre Industry”Santafé Mall, Medellín, Colombia

2016-5-13

Shopping centre industry in the Middle East is evolving

Greater number of smaller-scale projects

Providing both convenience and a tailored retail experience

A notable shift from supercentre culture to smaller formats

Smaller formats will become more dominant

Meeting the needs of increasing urbanisation

Consumers’ changing notion of convenience



2016-5-13

Provide a more customised, personalised appeal

Heightened coordination between developers and retailers

Creating a seamlessly attractive and entertaining environment

Commonalities among millennials have big implications

82% of millennials prefer to shop in stores

Although they spend a great deal of time online web-rooming

MALLS MALLS MALLS MALLS THAT ENGAGE MILLENIALSTHAT ENGAGE MILLENIALSTHAT ENGAGE MILLENIALSTHAT ENGAGE MILLENIALS


2016-5-13

Millennials are savvy, price-conscious shoppers

Placing a high value on experiences

Eating out experiences are valued highly

Proliferation of restaurant concepts

F&B represent 40% of planned opening for next year in US

Millennials are techies & foodies



2016-5-13

Millennials prize social responsibility & sustainability

Want to believe in the companies they patronise

Millennials are looking for high-value experiences

Millennials prefer city living as young adults

Mixed use schemes are preferred for family living

Providing job & social opportunities



2016-5-13

Mall Plaza in Chile has positioned its properties a social hubsGrowing economy creates more leisure timeUtilising enhanced mall appsAdding restaurants & amenitiesRelying heavily on social media to engage & build the brand1.5 million Facebook followersStreamed large-scale events



Mall Plaza Egaña, Santiago, Chile

2016-5-13

Centres will combine retail with physical distribution points

Macy’s (US) fulfilment network includes all 800 stores

Shipping $1billion merchandise from its stores last year

Allowing ‘buy online, pick up in store’

Same-day delivery in 8 pilot markets

In US a group of centre owners have invested in Deliv Inc.

Using crowd sourced personnel to provide same-day delivery

INCORPORATING DISTRIBUTION INCORPORATING DISTRIBUTION INCORPORATING DISTRIBUTION INCORPORATING DISTRIBUTION INTO INTO INTO INTO CENTRESCENTRESCENTRESCENTRES


2016-5-13

Westfield London have a luxurious click-and-collect loungeIn partnership with CollectPlus, a parcel delivery serviceShoppers can order online for delivery to CollectPlus loungeEnjoy complimentary refreshments & try items onUnwanted items are returned & parking is free

INCORPORATING DISTRIBUTION INCORPORATING DISTRIBUTION INCORPORATING DISTRIBUTION INCORPORATING DISTRIBUTION INTO INTO INTO INTO CENTRESCENTRESCENTRESCENTRES


23% of customers purchase more items when collecting20% of customers purchase more items when returning

The CollectPlus lounge at Westfield London

2016-5-13

New paradigm for landlord-tenant collaboration

Sharing data & technology

Taking on Amazon together

Landlords & retailers are investing heavily in technology

Providing insights into shopper behaviour

Connecting the digital and physical worlds of retailing

Westfield app product-search feature

Digital storefronts – discover products in real time

ACCELERATED DEVELOPER ACCELERATED DEVELOPER ACCELERATED DEVELOPER ACCELERATED DEVELOPER –––– RETAILER RETAILER RETAILER RETAILER COLLABORATIONCOLLABORATIONCOLLABORATIONCOLLABORATION


2016-5-13

Westfield San Francisco MallWestfield San Francisco MallWestfield San Francisco MallWestfield San Francisco MallDedicated innovation & collaboration spaceDedicated innovation & collaboration spaceDedicated innovation & collaboration spaceDedicated innovation & collaboration space

““““BespokeBespokeBespokeBespoke”””” –––– 37,000 square foot facility 37,000 square foot facility 37,000 square foot facility 37,000 square foot facility2,000 square feet of demonstration space2,000 square feet of demonstration space2,000 square feet of demonstration space2,000 square feet of demonstration space3,000 square foot pop-up shop3,000 square foot pop-up shop3,000 square foot pop-up shop3,000 square foot pop-up shopCo-working and event spaceCo-working and event spaceCo-working and event spaceCo-working and event space

ACCELERATED DEVELOPER ACCELERATED DEVELOPER ACCELERATED DEVELOPER ACCELERATED DEVELOPER –––– RETAILER RETAILER RETAILER RETAILER COLLABORATIONCOLLABORATIONCOLLABORATIONCOLLABORATION


Bespoke co-working space, Westfield San Francisco Centre

2016-5-13

Rents will eventually be determined by new formulas

Current system based upon project sales

New flexible model incorporates online and in-store volume

Newly emerging hybrid-shopping patterns

Show-rooming & web-rooming

ICSC Report – Emerging Rental Models

In response to the evolution of omni-channel retailing

Physical store the cornerstone of omni-channel strategies

Far richer value than that of a mere point-of-sale

NEW BLENDEDNEW BLENDEDNEW BLENDEDNEW BLENDED RENTAL MODEL RENTAL MODEL RENTAL MODEL RENTAL MODEL


2016-5-13

ICSC Report – hurdles

60% of retailers running separate profit centre for online

Many retailers yet to master omni-channel models

Costly and complex

Inventory management & fulfilment

Emerging ideas – new leasing modelsFixed rentsBase plus percentage rentsClick & collect sales percentage rentsIn-store online sales in the percentage rentsGeo-code models



2016-5-13

Alternative performance metrics

Measuring the delivery of the customer opportunity

Net shopping hours

Volume of customers

Conversion rates

Basket sizes

More refined metrics for quantifying purchases volumesWi-FiBeaconsSmartphone appsOther technology



2016-5-13

Investment in newly emerging shopping centre formats favoured

No existing performance benchmarks

Lenders are conservative and they want to see results first

Institutions favouring top-tier retail properties

Relative performance

Minimal development underway

High levels of reinvestment by owners

RETAIL FRIENDLY RETAIL FRIENDLY RETAIL FRIENDLY RETAIL FRIENDLY INVESTMENT OUTLOOKINVESTMENT OUTLOOKINVESTMENT OUTLOOKINVESTMENT OUTLOOK


2016-5-13

“Tsunami” of capital” flowing into commercial real estate

Nearly 10% of portfolios into commercial real estate

Super-regional malls outperform other property sectorsNet operating income (NOI) growthLower level of NOI volatility

Lenders & investors increasingly more comfortable

Healthy balance between supply & demand in shopping centres

Realisation that centres are critical to omni-channel retailing

RETAIL FRIENDLY RETAIL FRIENDLY RETAIL FRIENDLY RETAIL FRIENDLY INVESTMENT OUTLOOKINVESTMENT OUTLOOKINVESTMENT OUTLOOKINVESTMENT OUTLOOK


2016-5-13

Exceptional personalisation and connection to the consumer

Creation of flexible formats

Better developer-retailer collaboration between

Fusion of physical stores and e-commerce

Re-evaluation of a new rental model

5 KEY 5 KEY 5 KEY 5 KEY TRENDSTRENDSTRENDSTRENDS


2016-5-13

Thankyou very much for listening!

Any questions..?Any questions..?Any questions..?Any questions..?

PRESENTATION PRESENTATION PRESENTATION PRESENTATION CONCLUSIONCONCLUSIONCONCLUSIONCONCLUSION

India Shopping Centre Forum 2016 Marquee Keynote Speaker ... · Visual representation of digital...

Documents

Transcript of India Shopping Centre Forum 2016 Marquee Keynote Speaker ... · Visual representation of digital...