Ancillary Retail

MAY 2018

Ancillary Retail magazine is the retail industry’s resource for ancillary income markets. Ancillary Retail will provide relevant news, best strategies and practical tips to help developers and retailers grow and sustain successful businesses.

Issue link: https://ancillaryretail.epubxp.com/i/981995

Contents of this Issue

Navigation

Page 24 of 46

20 Ancillary Retail | May 2018 Creating buzz around a temporary concept is one of the biggest priorities for pop-up tenants and landlords to- day. The fear of missing out (FOMO) historically only extended to seasonal merchants like the holiday sausage cart or Halloween costume store — but FOMO is alive and well in 2018. Nowhere is that more evident than at GGP's Northbrook Court in North- brook, Illinois. The 1-million-square- foot shopping destination just north of Chicago boasts a pop-up restaurant actually called FOMO Cafe, which is dedicated to the idea that if you don't get here soon, you may never get to see what all the hype was about. The pop-up concept gives local chefs and restaurateurs the opportuni- ty to showcase small, curated menus to diners who get to be the first to ex- perience the exciting variety offered by these new-to-market concepts. The 2,200-square-foot space opened in No- vember, and recently hosted Mario's Cart, a Mexican-themed concept that started as a food truck in 2013. Melinda Holland, senior vice pres- ident of business development at Chicago-based GGP, believes pop-up spaces are one of the smartest ways to keep a center's food and beverage options fresh. And we all know how crucial these offerings are in the era of e-commerce, foodies and Insta- gram-worthy dishes. "The growth of retailer-designed, branded experiences has grown in several categories, but none more so than food and beverage," she says. "I think you will continue to see retailers use pop-up opportunities to test prod- uct and engage with customers. An incredible part of our job is to provide a platform to help companies expand their brand. This is true for startups and well-established companies. To- day's consumer wants to sample the latest in food." A center's common areas also pro- vide unique opportunities for local, innovative and diverse food concepts, such as hydrogen-activated cereal, craft beer cafés, Thai-rolled ice cream and healthy, vibrant-colored Asian teas, to reach the masses. Competing for Space National brands may have had their bidding wars for premier ancillary spaces in the malls of decades' past, but today's competitive environment almost always contains a local ele- ment. "It's no overstatement to say the roadmap of the consumer's shopping journey has shifted radically in the past decade, and it will continue to evolve," says Najla Kayyem, senior vice president of Pacific Retail Capital Partners in the Los Angeles submar- ket of El Segundo. "Local brands are popping up everywhere. It's cool to 'shop local,' so we are doing every- thing we can to accommodate those desires and support our local budding entrepreneurs. Landlords are creating unique activations and curating an as- sortment of pop-up shops to meet the needs of the developments. We have been known to scour the region for the best local, cool, hip operators to devel- op a point of difference." Though the function of these ancil- lary spaces remains the same as it has for decades (get bodies into the cen- ter), the focus has certainly changed. Leasing these prime spaces to the con- cept willing to pay the highest rent is no longer a top priority for most land- lords. Instead, they're focused on nab- bing the area's up-and-coming talent. Many are adopting the same success- ful strategies that have been executed throughout the music, fashion and cu- linary worlds: host a competition, cre- ate a panel of judges and garner lots of audience participation. Instead of going the reality TV route, however, these owners are turning their vacant spaces into a shopping center stage. Pacific Retail created "Taste for the Space," a culinary com- petition and marketing initiative to bolster leasing within its portfolio. The developer reached out to food truck owners, restaurateurs and local chefs, offering the culinary competi- tion winners at each center a turnkey restaurant space, 6 months of free rent and a $50,000 investment prize. "Taste for the Space created a plat- form for us to co-invest with some local restaurateurs to roll out their culinary concepts," Kayyem says. "Unique ac- tivations and an assortment of pop- up shops enhance the merchandising mix by introducing new concepts, categories and trends to the market. Oftentimes, they supply a surprise- and- delight experience for guests who want to try something new." Pacific Retail was able to secure more than 20 competitors in each city, sell- ing out (tickets were free) Taste for the Space to more than 1,000 attendees at each center. The social media market- ing strategy allowed this program to reach more than 141,000 people, while Pacific Retail was able to collect 2,000 mobile numbers. The initiative also resulted in "several" letters of intent, a 2-year permanent lease at the Shops at South Town in Sandy, Utah, and a 7-year lease currently being negotiat- ed with Trifecta Cooks, the winner of Taste for the Space at Eastridge Cen- ter in San Jose, California. Until this time, the Japanese concept created by three Morimoto chefs had only done pop-ups, catering and private cooking classes and tastings in and around Sil- icon Valley and the Bay Area. Kayyem believes we will see much more of this programming and focus on temporary spaces in the future. It certainly doesn't hurt when a food competition and $140,000 worth of prizes turns into a permanent, 7-year lease. "We are dedicating more staff in the ON THE COVER Climax Jerky RMU at the Denver International Airport program operated by Pro Retail Inc.

Articles in this issue

Archives of this issue

view archives of Ancillary Retail - MAY 2018