Shopping Centre Confernce Presentation Final

Shopping Centre ConferenceCommercialisation Presentation22nd March 2011

Presentation Overview

Lewis Commercialisation

Presentation Topic

Key Considerations

What is Commercialisation?

Commercialisation: Background

Commercialisation: Today

Shopping Centre Managers – A Balancing Game

Retailer – Key Issues

BCSC/PMA Commercialisation Guide

Case Study: Comparison Australia and the UK

Questions

Lewis Commercialisation

,. Lewis Commercialisation works in partnership with major property owners, brands and service providers across the EMEA region.

Vision to deliver best in class commercialisation solutions, sustainable revenue streams that are aligned to corporate and/or asset and property management objectives.

Currently engaged with Shopping Centre assets with a value in excess of £5,000,000,000.

We have generated £14,000,000 of income streams for our clients equating to £175,000,000 in asset value.

Presentation Topic

“Commercialisation revenue is now essential to any centre’s financial performance, but many operators are still struggling to manage it in a way that does not detract from in-line tenants”.

How should managers strike a balance between the two?

Key Considerations

Alignment to Asset and Property Management Strategy

The key is to strike to correct balance with:

• Retailers

• Customers

• Owner/s

What is Commercialisation?

• Specialty Leasing

• Advertising

• Brand Experience, Promotions and Corporate Partners

• General Income – over 40 different income opportunities

Specialty Leasing

Advertising

Brand Experience, Promotions and Corporate Partners

Brand Experience, Promotions and Corporate Partners

General Income – over 40 different income opportunities

UK Commercialisation: Background

•In 2001 commercialisation……

•Income to owners circa £10,000,000

•No major landlord or top 10 shopping centre had a commercialisation strategy

Commercialisation: Background 2001

UK Commercialisation: Today

•In 2010 commercialisation……

•Billion pound industry, income to Shopping Centre owners circa £300,000,000

•Major landlords and top 10 shopping centres have commercialisation strategy

•Thriving industry employing thousands of people

Shopping Centre Managers – A Balancing Game

Key objective:

• Alignment to Asset and Property Management Strategy

To do this you must strike the correct balance with:

• Retailers• Customers• Owner/s

The Retailer – Key Issues

Research has shown that the three key issues from a retailers perspective are:

•Sightlines•Competition•Disruption to store access

The BCSC and the PMA completed an extensive commercialisation research project


“The key finding of this study is that a successful commercialisation strategy can benefit all stakeholders – centre managers and managers, retailers and shoppers.”

Source: BCSC/PMA Commercialisation Research Project 2009 (p.4)

Comprehensive study, 50 page report, collaboration of numerous industry stakeholders, 10 key points.


Create a commercialisation strategy – optimise or maximise?

Communicate strategy to retailers

Protect sightlines and safeguard pedestrian flows to stores

Managing risk

Professional behaviour


Conduct Research to demonstrate the benefits of commercialisation

Involve permanent retailers

Include commercialisation in the service charge matrix

Recognise where you need the help of professionals

Quality Control

Case Study: Commercialisation Comparison Between Australia & United

Kingdom

Australian Shopping Centre Background and History

•Started rapid growth in 1960’s

•Geography and urban sprawl required this

•Limited high street influence

•Wide & spacious malls as land not usually an issue

•Commercialisation developed in the 1980’s

•By 2000 transition complete - market mature

•Still evolves with industry trends such as Brand Experience

Case Study: Comparison Australia & United Kingdom

WestfieldMiranda Australia Fashion Show

Sponsored by:

MasterCard &Ford


Australia’s largest Telecoms company Telstra has embraced Specialty Leasing


•The UK is world renowned for its High Street retailing and Markets

•Gradual introduction of shopping centre model since the 1970’s

•Shopping centres built before the late 1990’s were not designed with commercialisation initiatives in mind

•Width of common areas has increased from 8 metres to 12 – 16 metres

•Large out of town and city centre shopping centres recent development

• Main stream commercialisation first introduced around 2000

• Led predominately by Australian developers and international influence


Bluewater:

Generally accepted fact that Bluewater pioneered commercialisation in UK

Introduced RMU concept to the UKImplemented advertising formats that brands wanted to buyLand Rover, Coke partnerships and other initiatives

Westfield London

The first UK Shopping Centre to truly integrate commercialisation at the design and development stage:

Best practice in many ways; kiosk design, income, qualityCommercialisation looks like it was meant to be there – not add-onFollowed Australian model and enhances customer experienceCommon areas designed for commercialisation with malls being 16 metres wide

Integrated into all areas of shopping centre management

Development of metrics to prove return on investment for brands

Core part of asset and property management

Aligned to overall needs of stakeholders

Development of consumer databases/CRM – Minority Report

The Future

THANK YOU

Hope You Have Questions for our Panel of Experts!

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Documents

Shopping Centre Confernce Presentation Final