Retail Presentationn

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Retail Real Estate Services


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The share of retail trade in the country's gross domestic product(GDP) was between 810 per cent in 2007. It is currently around12 per cent, and is likely to reach 22 per cent by 2010.

In a recent survey, 300 global retailers, representing a global, ,

sought-after retailing destination.

Indian Retail Growth

2006-7

2005-6

Total Retail

0 100 200 300 400 500

2010-11

Organised Retail


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Total retail space available in 2009 90 million Sqft

Expected retail space by 2011 154 million Sqft.

-

Tier - 1 Tier - 2 Tier - 3

Tier - 1 Tier - 2 Tier - 3

53%

21%

26%

68%

18%


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Retailers will need retail space of around 316 million Sqft by.

Estimated growth in mall space is 154 million Sqft by 2011.

250

300

350

100

150

200

available mall space

required retail space

0

50

2008 2009 2010 2011


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Selling mall space to private investor.

Lack for retailer and consumer understanding.

Lack of Planning the mall around anchor tenants.

Lack of market research by developers.

Tendency to lease out on a FCFS basis.

Perceive outsourcing as additional cost.

Lack of accountability for in-house promotional activities.

Improper planning for space (lack of parking space, single entry/exit points)


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CONCEPT & POSITIONING - Understanding yourConsumer and designing the product to suit the needs

(assuming control on leasing)

Pre-development

PRODUCT DIFFERENTIATION - Creatin USPs:Mix, Environment, Overall Experience; Competitiveness

forever.

PREEFERED DESTINATION - Enhancing CustomerLoyalty; Becoming the preferred shopping destination:

engaging with consumers, and retailers

Post-development

-An Effective Business and Operational Plan


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Mar et Ana ysis

Estimating the Retail Trade Area

Primary and Secondary. CONCEPT DEVELOPMENT

. Population/Expenditure Approach.

Customer Spotting Approach. Drive-time approach. In the Door Approach.

Broad Mix & Positioning.

Creating a USP.Financial Analysis/ Rent affordability.

Analyzing the Retail Trade Area.

Characteristics of local area.

Growth Patterns. Site Factors.

Market positioning.Anchor tenant Planning.

Tenant Mix.Tenant Placement/ Zoning.

Characteristics of Local. Population. Demographics. Expenditure Patterns. Characteristics of local retail.

MARKETING AND LEASING PLAN

Strategy and Plan Public Relations.

.

Demand and Supply Gap. Analysis. Competition. Market share. Traffic enerators Footfalls.

vert s ng . promotion.Budgeting/ Funding.Lease structures, pricing etc.

Sales volume/sales per Sqft.


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RETAIL PLANNING AND DESIGN

Circulation and Access. Visibility & Signage.

Store Sizing & Placement. Hot Spots & Amenity forecast. Building Services and Technology. Special Features.

SITE ANALYSIS

Location. Size and Shape.

REGULATORY STUDY

Title and Ownership. Zoning and Land-use. FSI, Ground Coverage, Bye laws etc.

Accessibility and Visibility.

AMENITIES/ INFRASTRUCTUREPLANNING.

.

Parking : Quantity & Quality. Deliveries, Waste Management. Other Infrastructure & Amenities.


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Professional Centre Management. Brand-Building, A&P for Sales/Sqft. Customer Lo alt Pro rams. Security.

Understanding Asset Management.. Crisis/ Disaster Management. Leasing and Development Strategies.


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Specialty Concepts.

Trade Category Specialization. Historic Preservation and Reconstruction. Pedestrian-Friendly Design.

a er ron eve opmen s. Food &Entertainment Focused developments (Skating Rinks etc)

.

Outdoor landscape Features. Indoor Plantation and special elements.

Special Attractions- Aquariums, sculptures, art. Iconic Elements - Clock Towers, Murals etc. Environmental Graphics.


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Sale Model

Shops sold to retailers/ investors.

Short term investment.

Lack of discipline, maintenance & control over trade and tenant mix, high vacancy rates.

oss o opp ng en re a ue, pera ng os s.

Price increases, if any, lost to investors.

Lease Model

Revenue from Rents.

Lesser Risks & Greater Returns.

Medium term investment (low-risk/medium returns).

Some Control over Mix & therefore the shopper.

Some Ability/ Flexibility & Incentive to improve.

Enhancement of Value comes to Developers. Greater Res onsibilit to run the mall well.

Revenue Share Model

Base rent or %age of sales, whichever is higher.

Business partnerships between retailer & developer.

Incentive to build a better product.

ncent ve or ma management to ocus on sa es growt .

Result oriented events and promotions.

Better equipped to face competition.

Overall long term sustainable model & a stable investment.

Same risk profile but greatest returns.


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Retail Presentationn