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 26 of 46

22 Ancillary Retail | May 2018 and pop-up spaces to get their newest devices in the hands of consumers so they can interact with their product before buying online. Others are leas- ing these spaces to see what the retail environment is like on the other side of the coin. "I think you will continue to see re- tailers use pop-up opportunities to test product and engage with customers," Holland says. "The winners in retail are omnichannel, have a relationship with their customers and offer en- gaging experiences. A good example of this is Untuckit, which started on- line and has recently opened several stores. M.Gemi, a luxury Italian brand of handcrafted shoes, recently popped up at Tysons Galleria outside of Wash- ington, D.C., interacting with custom- ers from a vintage gelato truck." Like Taste for the Space, these phys- ical experiences can yield more than just sales. They can net valuable in- formation that casts a wider net, in- fluencing much more than one simple shoe sale. "I have seen more entrepreneurs taking temporary space to test their e- commerce offerings and build their data- bases," says Theresa Barringer, director of specialty leasing for Downers Grove, Ill.-headquartered InvenTrust Proper- ty Management. "In those cases, data is the 'currency' — and it can be just as important as creating transactions." Online data is no less valuable to an e-commerce company when it opens a physical space. This is particular- ly true as the company utilizes social media platforms to market, promote and influence the programming of this space. In a way, this makes the transition from e-commerce to brick- and-mortar easier for many retailers who are already accustomed to work- ing with these online channels. Many startup companies embracing tempo- rary spaces are also run by younger entrepreneurs who understand and appreciate the value of a visually stim- ulating, photo-worthy retail display. "The companies that are winning are focused on social media," says Chris Conlon, executive vice president and COO of Acadia Re- alty Trust in White Plains, New York. "Platforms such as Instagram, Facebook and YouTube are becoming driving forces for marketing these newer brands. Pop-ups like Ev- erlane, Outdoor Voices and Allbirds are great examples of burgeoning brands that are effectively using social media to advance their brand message and awareness." Ted Kaminski, vice president of re- tail business development in Mace- rich's Phoenix office, has one particu- larly successful project that comes to mind when he thinks of Instagram. That is Candytopia, a Wonka-like dis- play at Santa Monica Place in Santa Monica, California. The 4-month in- teractive art installation featured vi- brant colors and candy flavors from more than a dozen environments, including flying unicorn pigs and a marshmallow tsunami. "Santa Monica Place's Candy topia is a perfect example of a major, experi- ential, temporary tenant adding great value to the existing retail mix," he says. "The interactive, candy-themed art-meets-retail exhibit is visual, im- mersive and ready-made for Insta- gram. Importantly, Candytopia is a significant foot-traffic generator for the rest of the property. Plus, the so- cial media attention this unique in- stallation creates — heightened when celebrities like Gwyneth Paltrow and Drew Barrymore visit with their chil- dren and then post about it — is in- valuable." While it's easy for landlords to get caught up in courting the next hottest pop-up with all the bells and whistles, experts warn that the fundamental principles of ancillary retail are still in effect today. "Have these temporary displays complement the current leasing mix, not compete," Kaminski says. "You don't want to place merchandise in front of a store selling the exact same product." Solid preparation on the landlord's part can also go a long way for these in-demand brands, Barringer notes. "Prepare and build your invento- ry," she says. "Invest in move-in ready spaces and provide flexible, multi- purpose fixtures. Your prospects may be coming from craft markets, the e-commerce world or Kickstarter. Many are not prepared to outfit a re- tail store. Any assistance you can pro- vide will likely give you a competitive edge, provide slightly higher rents, and possibly result in a greater oppor- tunity for the tenant to incubate into a long-term lease." We may have come a long way from pushcarts selling ordinary tchotch- kes, but as the industry continues to change and reinvent itself the goals of the retail environment remain the same. "Temporary spaces help to build awareness and differentiate through signage, product mix and face-to-face interactions," Kayyem says. "We give people a place and platform to spend time together and to be entertained. Retail is evolving, but good real estate never goes out of style." n Candytopia pop-up store at Macerich's Santa Monica Place in Santa Monica, California. ON THE COVER Chris Conlon Acadia Realty Trust Theresa Barringer InvenTrust Property Management

Articles in this issue

Archives of this issue

view archives of Ancillary Retail - MAY 2018