the changing face of retail

BrUce leonarDManaging PrinciPal

10.22.2012

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an uncommon collective of designers, brokers, architects, developers, planners, researchers, and creative thinkers. We are inspired by the desire to create distinctive places and meaningful brands. Whatever the challenge, our team of experts is ready to take it on with you – our collaborative ideology is our greatest differentiator.

WE ARESTREETSENSE.

Who We are

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WE DELIVER THE EDGE.

a knack for storytelling. For understanding the end users of a project and connecting with them on an emotional level at every opportunity – through brand, design, architecture, and location. Each of these elements works together and elevates the others, with measurable results.WE HAVE A SPARK.brands and places people love. Through our comprehensive approach, we have a unique ability to identify, harvest, and grow places and brands that really resonate. We are a team of experts that, together, is consistently ahead of trends. We never play catch-up – neither should you.WE CREATE VALUE.our clients to think about things a little bit differently. Because we do. We approach every project in a thoughtful, unconventional way. Not for kicks, but because the changing world demands it. We are known for leading our clients down uncommon paths to uncommonly great success.

your vision through our creativity. We do so by working in an environment that is collaborative and truly multi-disciplinary. We are better architects because we’re brokers. Better designers because we’re developers. And we’re not just tooting our own horn. Our work speaks for itself.

WE INSPIRE GREATNESS.

Who We are

3What We Do

namingbranding

logo developmentenvironmental graphics

signagepackagingmarketing

print collateraladvertising

public relationsweb development

social mediainteractive media

photographyfeasibility studiesdue diligencetenant coordinationpro forma analysisdesign + construction managementvalue engineeringadvisory services

architectural designrestaurant designretail store designprototype developmentprototype adaptationconstruction documentationcontract administrationsustainability consulting3-D visualization

landlord reptenant rep

market research + analysiscustom demand modeling

site assessmentinvestment salesroll-out strategies

merchandising strategies

site + master planningdesign guidelinessite analysisstreetscape + urban designentitlementssite signage + wayfindinglandscape designcommunity outreach

BROKERAGE+ REAL ESTATESTRATEGY

PLANNING

CREATIVE

ARCHITECTURE + INTERIOR DESIGN

DEVELOPmENT

WE DO

five Major factors affecting retail DeveloPMent Moving forWarD

We are in the Perfect storM...

5over sUPPlY of Major retail BranDs1

• leading up to the downturn in 2008, Wall street and the investor Market were driving retail expansion

• Many major retailers lost site of sound expansion strategies resulting in store cannibalization and dilution of brand

• national retailers will be scaling back on new growth moving forward with some stores reducing the store count by 50%

6Major change in consUMer BUYing Patterns2

• Post 2008 the Baby Boomers started to cut back to spending, particularly with respect to goods and general Merchandise

• the X&Y generation is becoming a significant buying force focused on “experience” over “things”

• national and local retailers are adjusting to the new buying patterns and trying to re-gain their footing...there will be some winners and losers

• the retailer needs to figure out how to get into the pocket of the 25 year old, who has 10% of the buying power of their parents.

7internet shoPPing insUrgence3

• leading up to 2008... internet shopping was insignificant compared to the dollars spent in bricks and mortar retail...roughly 3 to 8% of sales

• according to recent studies...internet sales represent over 18% of total sales with the curve trending almost vertical

• Many national Boxes and commodity retailers are seeing the relevance of their stores diminish...some will not survive

• specialty stores are trending towards “gallery” locations

• We are just as the beginning of the internet’s influence on bricks and mortar shopping

8DeveloPMent Patterns are sWitching to “UrBan” over “sUBUrBan”4

• Both Boomers and X & Y’s are moving back into the city and retailers are following.

• Urban markets are undeserved by most retail categories and represent the biggest opportunity for retail expansion

• the customer wants to connect to the retailer, regain the sense of community.

• convenience is critical.

9strategY is the KeY to sUccess5

• location, location, location is now environment, environment, environment

• connecting the consumer to the retailer is key.

• not everyone who makes $80k/year wants the same thing. Pyscho-demographcs are more important than ever.

• live, work and play were words over the last 10 years. they must be executed perfectly going forward.

10100 Years of Retail in America

Shopping Center Growth Curves

Growth

Over-Heated

Moderate

Slow

No Growth

1985 1995 2005 2012-Future1900 - 1960

Downtowns Malls Power Centers

Lifestyle/Mixed Use

100 Years of retail in aMerica

100 Years of retail in aMerica

11all categories still Maintain their relevance...soMe More than others

PoWer center sPecialtY center PlaceMaKing

thanK YoU