Creating the Right Customer Experience And Driving Value to the Shopping Centre

Transcription

1 #ICSCEurope Creating the Right Customer Experience And Driving Value to the Shopping Centre 15 October 2014 Radisson Blu Hotel Lietuva, Vilnius, Lithuania

2 Darwin Was Right: the Evolution of Shopping Centre Exeprience Creating the ideal tenant mix to maximise rental an capitol values Understanding shopper behaviour through data John Godfrey Director of Sales, Path Intelligence ICSC Baltic States Retail Real Estate Conference #ICSCEurope

3 The Evolution of Shopping Centre Experience Darwin was right Path Intelligence 2014

4 The Shopper has changed The Retailer is changing The Owner must change

5 The Shopper has changed

6 FOLLOW THE MONEY Independent Amazon and PayPal account holder (WGSH), seeking fun experiences How do those that pay your bill, pay theirs?

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8 Four friends with a day to spend. Dwell 261m One looks at a tablet, leaves immediately & buys online. Dwell 16m. Three meet in a restaurant and leave without shopping. Two come back later and visit four fashion concessions before spending 30m in a coffee (book) shop. Dwell 78m. One visits the men s fashion department, three more concessions, spends 45m in the food court, visits two more concessions, and leaves three hours later. Dwell 182m. Dwell 27m.

9 The Retailer is changing

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12 has spent more than a million dollars to accommodate Alex and Ani's practical and aesthetic specifications. The investment has paid off. "People who have never been to our stores are coming in because we carry this brand," says John Anderson, the Paper Store's vice president. And the Alex and Ani customer is a nice customer. A special customer

13 Audience > transaction

14 The Owner must change

15 RETAIL REAL ESTATE IS DARWINIAN Competition for fixed resource Cycle of growth or cycle of decline precision leasing strategic marketing enhanced operations optimal mix & compelling experience

16 Predator or prey?

17 Merchants serving merchants

18 Whatever it takes

19 In a low information environment how do you avoid getting killed?

20 IMAGINE SEEING THE PATTERNS INSIDE every part of every centre every F&B every venue every event

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25 96 89 AVERAGE DWELL TIME (MINUTES) YOUR CENTER ICSC PATH BENCHMARK

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28 KNOW YOUR TENANT PERFORMANCE CROSS SHOP DENSITY Brand X DISTRIBUTION MARKETING

29 IF YOU KNEW THEIR OVERALL VALUE TOTAL TRAFFIC CROSS SHOPPING TOTAL SALES TOTAL RENT = VALUE TOP 10 RETAILERS RANKING Tenant Ranking VALUE score Forever Victoria s Secret 2 34 BRAND X 3 43 Coach 4 48 H&M 5 49 Starbucks 6 69 Nike 7 77 McDonalds 8 79 J. Crew 9 82 Burberry BOTTOM 10 RETAILERS RANKING Tenant Ranking VALUE score Salon Esprit Prestige Nails Confectioner Remix Shoes Fast Fix Jewellery Mastercuts Shoe Shop Opticians Curl Up & Dye

30 HIGH SYNERGY LOW TRAFFIC CURL UP & DYE WAG TANNING TOKYO HARRY $1 OPTOMETRY J LABBY SHOES PRETTY THINGS BAD BOY BAGELS WHITE HOUSE LOW TRAFFIC BLACK MARKET HIGH SYNERGY LOW TRAFFIC SUNGLASS HUT LOW SYNERGY BURBERRY JUICY COUTURE AMERICAN EAGLE BANANA HIGH TRAFFIC REPUBLIC HIGH SYNERGY UNDER ARMOUR AMERCROMBIE & FITCH HIGH TRAFFIC LOW SYNERGY J. CREW POLO RALPH LAUREN SEPHORA VICTORIA S SECRET H&M OLD NAVY FOREVER 21 COACH GAP APPLE HIGH TRAFFIC LOW SYNERGY

31 LIFECYCLE SUPPORT ENHANCE TENANT MIX DRIVE TENANT SALES IMPROVE OCCUPANCY OPTIMIZE BRAND LAYOUT

32 UNDERSTANDING BEHAVIOURS DELIVERS BETTER DEALS trodden paths pass by / peel off pre/post dwell bounce rates behaviour segments vacant unit analysis predict performance what if? analysis brand attraction operations development correlate: zones, anchors, transport, entrances leisure, F&B, adverts, time of day, time of year optimal mix & experience write better deals

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35 1. Know what you want to know 2. Use what you have & gather what s easy 3. When you are ready decision science

36 WHAT HAPPENS WHEN YOU DO? RTL +30% +70% +65% +60%

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38 OPERATIONAL PERFORMANCE #1 value driver after the market Precision Leasing Strategic Marketing Enhanced Operations

39 DETECT ANALYZE PREDICT INFLUENCE John Godfrey +44(0)

40 #ICSCEurope Creating the Right Customer Experience And Driving Value to the Shopping Centre 15 October 2014 Radisson Blu Hotel Lietuva, Vilnius, Lithuania