Nick A. Egelanian - VBgov.com

Nick A. EgelanianPresident:

August 14, 2018

RETAIL in A Post-Department Era MAR 2017

DEPARTMENT STORE CLOSURES

MALL FAILURES

AMAZON/ Whole Foods!!!

E-COMMERCE

ENTERTAINMENT RETAIL

RESTAURANT PROLIFERATION

OUTLET EXPANSION DECLINING

FOOT TRAFFIC

FACTORY STORESIN FULL PRICE CENTERS

WEALTH GAP

RETAIL APOCALYPSE

RETAIL in A Post-Department Era MAR 2017

STRATEGIC RETAIL

FRAMEWORK

RETAIL in A Post-Department Era MAR 2017

A. 20th CENTURY U.S.

RETAIL EVOLUTIONFrom Downtown Shopping

RETAIL in A Post-Department Era MAR 2017

Killed by…

To The Department Store Era

And 3,000 American Regional Malls

RETAIL in A Post-Department Era MAR 2017

Department Store

Deconstruction And “Big Box” Retail

COMMODITY RETAIL

RETAIL in A Post-Department Era MAR 2017

The Result: Market Share “Big Box”

Retailers Vs. Department Stores

RETAIL in A Post-Department Era MAR 2017

Commodity Retailers Vs.

Department Store Market Cap ($B)

RETAIL in A Post-Department Era MAR 2017

B. 21st CENTURY

U.S. RETAIL ALIGNMENT

RETAIL in A Post-Department Era MAR 2017

21st Century Retail Alignment

Two SEPARATE Retail Industries

85% 15%SPECIALTY

RETAIL

PRIMARYHH INCOME AND PURCHASES

DISCRETIONARYTIME AND PURCHASES

RETAIL in A Post-Department Era MAR 2017

Highest priceMost convenient

lowest priceleast convenient

DRUG stores

grocery stores

DiscountStores

Categorykillers

Warehousestores

Conveniencestores

E-tail

E-tail E-tail

COMMODITY RETAIL: PRICE/ CONVENIENCE EQUATION

RETAIL in A Post-Department Era MAR 2017

EMOTIONALATTACHMENT

DISCRETIONARY TIMEDISCRETIONARY INCOME

Best-in-classshops

Authentic textured places

SPECIALTY RETAIL:EMOTIONAL CONNECTION

PRODUCT PLACE

RETAIL in A Post-Department Era MAR 2017

TRADITIONAL MALLS OUTLET CENTERSTHEMED CENTERS &

ATTRACTIONS

MIXED-USE &OPEN-AIR CENTERS

HIGH STREETS

SPECIALTY RETAIL FORMATS

RETAIL in A Post-Department Era MAR 2017

As of 3rd Quarter 2017 – 9.1%

RETAIL in A Post-Department Era MAR 2017

RETAIL SALES DISTRIBUTION ( Part 3 )2015 Pure –Play online retailer sales

and percent of total Pure-Play E-Commerce sales

Source: national retail federation top 100 retailers chart, 2015, euromonitor

RETAIL in A Post-Department Era MAR 2017

OUR FINDINGS

RETAIL in A Post-Department Era MAR 2017

THE WAVE: OUR FINDINGS

1. TRANSORMATIVE MIXED USE PROJECT

2. UNIQUE SPECIALTY RETAIL AND ATTRACTIONS

4. BRIDGE FROM THE RESORT DISTRICT TO THE CONVENTION CENTER, THE VIBE & THE ARTS DISTRICT

3. NET GENERATOR Of NEW MARKET DEMAND

5. NO NET DISPLACEMENT

Nick A. EgelanianPresident:

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