Date post: | 09-May-2015 |
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Real Estate |
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From Bricks to ClicksWhen Demographics and Technology
Collide
• Founded in 1954 & headquartered in Miami, Florida
• 2nd largest homebuilder in the US
• Has delivered homes to more than 750,000 families
• More than 5,500 associates across 18 states
HOMEBUILDING & LAND
FIVE POINT
Land Development & Entitlements
COMMERCIAL
Retail & Office
RIALTO CAPITAL
Investment & Asset Management
FINANCIAL SERVICES
Title & Mortgage
MULTIFAMILY
Apartment Communities
Evolution of Retail
pre-retail
the general store
mail order catalogues
suburban shopping malls
mixed-use
Retailing Today
E-Commerce
The Millennials
Experiential Retail
E-Commerce
E-Commerce
2013 Retail Snap ShotTotal Retail Sales $5.09 trillion
Retail Sales Increase over 2012 4.2%
Total Retail Sales (excluding cars & food)
$3.57 trillion
E-Commerce Sales $263.3 billion
E-Commerce Sales Increase over 2012 16.9%
Percentage of Total Retail Sales 5.2%
Percentage of Retail Sales (excluding cars & food)
7.4%
Source: US Dept. of Commerce
E-Commerce Sales Trends
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$0
$50
$100
$150
$200
$250
$300
(US$ billions)
Source: US Dept. of Commerce
2013 Holiday Season
• Store Traffic Sales
• 13% increase in e-commerce sales over 2012
• 54% “last minute” shopping increase
• $1B Internet Sales Days• 2013: 10• 2012: 0
Source of E-Commerce Sales 2013-2014
Desktops - 71%Phones - 18%Tablets - 11%
8 main trends of
June 29, 2007
1. Mobile Goes Mainstream
2. Your Phone Is Your Wallet
3. Multi/Omni Channel Retailing
Multi/Omni Channel Retailing
4. Mass Customization
5. Faster Delivery Times
6. High Tech Coupons
7. Better In-Store Experience
New AT&T store, Manhattan
8. The Shrinking Big Box
Millennials American teens and twenty-somethings (born after 1980) who are making the passage into adulthood at the start of the new millenium
Millennials account for 21% of consumer spending . . . and 33% of their spending is on nonessential items
Millennials make up the largest percentage of the workforce
American Generations
Silent Generation
1927-1945 • Disciplined & Self-Sacrificing• Avid Readers – especially newspapers
Baby Boomers 1946-1964 • Hard working & Driven• Television, Rock ‘n Roll, Activism
Generation X 1965-1979 • Individualistic & Wary of Commitment• “Before” and “After” Computers & Cell
Phones
Generation Y “Millennials”
1980-2000 • Entrepreneurial & Tech Savvy• Digital environment, Internet, Smart
Phones
Generation Z 2001 - Today • Culturally Diverse & Over-saturated with brands
• Electronic-centric & Less Interested in Toys
• Already have Eco-Fatigue
The Millennial Demographic
Millennial Identity
• Technology savvy• Confident and self-
expressive• Liberal viewpoints
and open to change
• Ethnically & racially diverse
• Upbeat• On track to
become the most educated generation in American history
Politics & Religion
• Less likely to associate with organized religion
• Primarily “Independent” but tend to vote democratic
• Only 2% have served in the military
• More optimistic about America’s future than any other generation
Technology• 92% have a
smartphone and a laptop
• 83% sleep with their smartphones
• 81% are on Facebook
• 74% feel that technology makes their lives easier
• 50% have posted a “selfie” online
• Millennials spend 21 hours/month on social media
Economics• Began to enter the
workforce during the recession
• High levels of student loan debt
• Lower levels of wealth & personal income
• 1 in 8 have moved back in with parents
• 21% are married• 34% have children• Price conscious
and deal savvy
Source: Nielsen & Pew Research Center
Millennial Shopping Trends
• 88% of Millennial smartphone owners used their smartphones for holiday shopping
• 77% browse online before purchasing in the store – nearly 17% higher than the general population
• 56% admitted to browsing for an item in the store and then purchasing it online from a different retailer – double the rate of the general population
• 19% have been in a store and purchased an item via their mobile phone from a different retailer while still in the store – double the rate of the general population
• 89% would not return to a store if the inventory they confirmed was there was not available upon visit
80% of Millennials consider themselves price conscious and promotion sensitive
Extreme Couponing
97% of Millennials would return to a retailer if
provided with a discount for future shopping events
92% download coupons to their retailer cards before shopping and 80% at the store
79% use paperless coupons
67% go looking for deals after hearing
about them on social media
80% are more likely to frequent a store if it provides a rewards
program
Experiential Retail
59% of consumers say they have all the material possessions
they need
Consumer experience is the single most important factor in continued
growth for retail brands.
Experiential retail is one-on-one engagement between a company’s offering – either product or service –
and the consumer themselves.
Shoppertainment
Virtual Grocery Shopping
Tesla Showrooms
Pop Up Shops & Virtual Storefronts
Top Performing Malls in the US - 2013
Mall Location GLA Sales/SF
Bal Harbour Shops Bal Harbour, FL 450,000 $2,555
Forum Shops at Caesars Palace
Las Vegas, NV 636,000 $1,750
Shops at Columbus Circle
New York, NY 338,000 $1,600
The Grove Los Angeles, CA 575,000 $1,400
The Mall at Millennia Orlando, FL 1,118,000 $1,250
Ala Moana Center Honolulu, HI 2,100,000 $1,200
The Mall at Short Hills Short Hills, NJ 1,370,000 $1,110
The Americana at Brand Glendale, CA 450,000 $1,110
Aventura Mall Aventura, FL 2,700,000 $1,100
Tysons Galleria McLean, VA 824,000 $973Source: ICSC – Shopping Centers Today
Development Impact
• Smaller, Urban Mixed-Use Centers
• Transportation Oriented
• Highly amenitized• “Fiberhoods”• Social Media
• Dramatic Change in Merchandising Strategies• Old Approach: merchandising mirrored the way we bought our clothes –
compliments with large chain stores• New Approach: merchandising mirrors the way we live our lives – specialty,
green, quick serve, chef-driven farm-to-table dining, wellness
Question: Is it sustainable? What happens when baby boomers need congregate care and millennials need schools for their children?