LAS VEGAS—Brick-and-mortar fashion is the largest at-risk category that's been impacted by e-commerce and that will continue for the short term. Those thoughts are according to Emil Gullia, senior director of Franklin Street's Atlanta office.
GlobeSt.com was in attendance Monday afternoon at the firm's ICSC RECon 2016 reception. Gullia tells us that “Fashion retailers are being challenged to find more creative ways to remain relevant beyond that first sale whereby the consumer became comfortable enough with the fashion or value proposition that they need to go back to the store.”
In addition, he says, the wider acceptance of more casual and performance wear (not just yoga clothes) is allowing consumers to spend more time online. The output is more e-commerce sales, but far more returns too.”
He continues that “the return rate on e-commerce soft line sales far, far exceeds those of in-store purchases.” This, he adds, creates more handling, technological resources, and logistical efficiencies “to get that product back to a sale worthy condition, while in season, long after it has seen its second stop at a distribution center. This has compressed margins and expanded the risk in capital deployment for these retailers. The irony to this is next to food; this is the most sought after sector in mixed-use projects.”
At this year's ICSC RECon event, he tells GlobeSt.com, tech-driven solutions will have a larger presence. “These platforms are trying to engage all types of real estate professionals to help them make smarter decisions, with more information than has ever been available in the past,” he says. “Real estate professionals are far more willing to listen. Compatibility, usability, more intuitive programming and decreased costs allow for this acceptance.”
One of the many examples of how this technology is already being accepted, he says, is shown by “landlords hiring data and technology resources to better to understand the relevance, perceived longevity and financial health of retailers in the early stages of marketing and before signing leases. Developers and retailers alike are relying on these solutions more frequently to perform analysis to determine what they don't know about a market, but should.”
LAS VEGAS—Brick-and-mortar fashion is the largest at-risk category that's been impacted by e-commerce and that will continue for the short term. Those thoughts are according to Emil Gullia, senior director of Franklin Street's Atlanta office.
GlobeSt.com was in attendance Monday afternoon at the firm's ICSC RECon 2016 reception. Gullia tells us that “Fashion retailers are being challenged to find more creative ways to remain relevant beyond that first sale whereby the consumer became comfortable enough with the fashion or value proposition that they need to go back to the store.”
In addition, he says, the wider acceptance of more casual and performance wear (not just yoga clothes) is allowing consumers to spend more time online. The output is more e-commerce sales, but far more returns too.”
He continues that “the return rate on e-commerce soft line sales far, far exceeds those of in-store purchases.” This, he adds, creates more handling, technological resources, and logistical efficiencies “to get that product back to a sale worthy condition, while in season, long after it has seen its second stop at a distribution center. This has compressed margins and expanded the risk in capital deployment for these retailers. The irony to this is next to food; this is the most sought after sector in mixed-use projects.”
At this year's ICSC RECon event, he tells GlobeSt.com, tech-driven solutions will have a larger presence. “These platforms are trying to engage all types of real estate professionals to help them make smarter decisions, with more information than has ever been available in the past,” he says. “Real estate professionals are far more willing to listen. Compatibility, usability, more intuitive programming and decreased costs allow for this acceptance.”
One of the many examples of how this technology is already being accepted, he says, is shown by “landlords hiring data and technology resources to better to understand the relevance, perceived longevity and financial health of retailers in the early stages of marketing and before signing leases. Developers and retailers alike are relying on these solutions more frequently to perform analysis to determine what they don't know about a market, but should.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, 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.
