Part 2 of 2
LAS VEGAS-In an update to an earlier story on ICSC RECon 2013's “Bricks and Clicks” panel—which discussed the silos between brick-and-mortar and e-commerce being broken down—fellow panelist Carrie Murray, marketing and communications director of Weingarten Realty, said she is also noticing a change in the tenant mix.
“We are watching what the retailers are doing and how they are going to play a role in the bricks-and-clicks,” she said. “People are still going to the bricks. You still can't eat a burger on the internet. Same with personal care—you still can't get your hair cut on the internet or get a mani pedi,” she said. “We are seeing stores get smaller a little bit, but it isn't changing our model.”
She continued that the firm's tenant mix has definitely changed at Weingarten's properties. “We have about 15% of our users as medical, and about 33% are service users.” As far as strategy, she said, the firm is changing who it is calling on for its centers. “We see the consumer come to our shopping center and they shop at more than just one store. They go pick up their clothes, then go to a shop, and then go get their teeth cleaned--also something you can get on the internet.”
Richard Childs, VP of business operations at Disney Store North America in Pasadena, CA, talked about the importance of “the experience” whether internet or brick. “For us, it is about the experience that we feel we can provide our guest and that mentality and attitude needs to translate to e-commerce as well. We used to have our brick and mortar team and e-commerce separated, but brought them together in 2010 and haven't looked back.”
He added that “The integration of our two businesses, brick-and-mortar and e-commerce initially brought many questions and we have had to re-evaluate our supply change. But the value we are seeing in that is huge.”
We also caught up with attendee Jeff Moore, senior managing director of the Orange County region and retail market leader for Southern California at CBRE, on the future of retail. “The retail market is continuing to evolve as consumers shift the way they buy and retailers adapt to capturing market share. Retailers are embracing technology to attract customers and improve operational efficiency and gross margin” he said.
“The millennial consumer, ages 13 to 30, is the largest consumer group and buying power today—more than the baby boomers,” Moore said. “They like to come to the store and 'touch the product,' then go back home to think about it and ultimately, buy on-line. They also want instant delivery and satisfaction.”
The strength of urban high street retail continues as luxury retail demand for premium space on iconic shopping streets remains vibrant, Moore continued. “The grocery sector remains dynamic with new concepts emerging to compete with the traditional chains. With minimal new retail construction, empty box stores are being steadily absorbed by a variety of uses including grocery, health clubs, discount retailers, entertainment and traditional retailers looking to grow market share.” Even healthcare/medical users, he said, are taking advantage of these retail opportunities and improved access to their customers. “Overall, we see activity picking up steam.”
According to Moore,” the retail market remains fluid and is the main driver of our American economy—it will continue to change but remain active. Opportunities will exist for those who embrace change and can adapt.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
