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.

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May 2018 | Ancillary Retail 35 ers depend. • Cost-effectiveness in mall logistics. Companies like startup Fillogic are partnering with operators to offer mall-based retailers a way to opti- mize the local shopping mall as a ful- fillment center, aggregating shipping volume across all retailers at the mall and sorting outbound e-commerce packages from a mall-based Fillogic hub. Per the company, by using Fillog- ic, retailers are reducing e-commerce delivery times by up to 3 days, low- ering overall transportation costs by 10%, and expediting shipping costs by 60% compared to existing fulfillment models. • Traffic counters at every entrance. Data is king and will only continue to in- crease in importance for brands and retailers. Knowing how many peo- ple enter the mall center is no longer enough. Mall managers and leasing teams need to have the answers and insights into how many people enter every entrance, each wing, each floor and ideally each store location. Concierge Services that Increase Consumer Order Volume Creating a place for people to stay and "be taken care of" is an environ- ment mall operators need to continue to strive for today. From amenities that drive foot traffic (like lockers for pick- ups or services for handling returns) to those that assist customers' purchase decisions, there is a growing breed of companies working to partner with property owners to help drive traffic and serve as a value-add to shoppers. Happy Returns, located at centers including Macerich, Simon Properties and Westfield, are giving customers what they want: fast, in-person re- turns — covering the hassle of boxes, return labels and waiting in line at the post office. Per the company, their re- tail partners have seen an increase in shopper frequency and they've seen customers spend more by having Happy Returns on property. Hemster, now available at Westfield centers, helps eliminates one of the most frustrating parts of shopping — finding that perfect size — by plug- ging in a modernized tailoring service right into the shopping experience. From its first pilot with Westfield, it saw that retailers on average boost- ed their sales by 15% while shoppers enjoyed having tailoring services on demand as they shopped. Hemster is now launching 13 additional locations on the West Coast in the next 3 months and, per the company, are on track to reach total 82 locations by end of 2019. Turnkey Spaces to Test With a growing expectation that brands and retailers can and will "test before they buy," investments in des- ignated storefronts to incubate and accelerate ideas are becoming more of the norm than the exception. Via the turnkey platform IRL at Water Tower Place in Chicago, brands in the home goods sector were not just given a space to showcase their story and goods for sale, but were also giv- en a weekly data report on daily foot traffic, customer dwell times and top items saved to customer carts. With programs like FOMO and IRL with GGP, Edit with Simon, Emerge with Taubman and, most recently, Pop It Up Here with Kimco, brands are get- ting options for turnkey opportunities to access shopping center customers and foot traffic along with a wide vari- ety of flexible terms, provided fixtures and access to data collection. Demystify the Rules for Buildout The more transparent and collabora- tive property owners can be to brands and retailers, or the agencies that are helping them with design and build- out, the faster they can get their doors open. Readily accessible CADs, clean space images, and a clear set of rules of engagement help demystify the process and allow plans to move into production fluidly and efficiently. Fur- ther, building out networks of local, approved teams helps brands open in new markets with vigor and trust. It's proven that when brands open brick-and-mortar locations, they un- lock their super consumers: consum- ers who spend more, return to pur- chase again more often and share their love on social media. Mall managers and leasing teams can position them- selves as true partners to brands look- ing to either launch or expand their brick-and-mortar footprint by equip- ping them with the support and infra- structure that positions them to bet- ter succeed. By having flexible lease agreements, data on hand and demy- stifying buildouts, brands can quickly get from conception to doors open. Melissa Gonzalez is CEO of The Lionesque Group, an agency of experiential retail strategists and pop-up architects who have produced more than 150 stores across major cities in the United States. Their work has received accolades such as the CLIO Image award and Retail Touchpoints Innovators of the Year. M.Gemi pop-up truck at Tyson Galleria in McLean, Virginia. Photo courtesy of GetClark.io Using innovative technologies IRL during a Ladies' Night event. POP-UPS

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