Move Over, Globalization: Community Retail Has Arrived

IAN JINDAL, Editor-in-Chief, InternetRetailingSOPHIE ROSS, Group Head of Multichannel,Hammerson

ERIKA SEROW, President and U.S. CEO, Sweaty Betty

From London with love, since 1998

Beyond fitness

Ambitious growth goals

Stores

Web

Retail locations Channel mix

0

10

20

30

40

50

1998 2000 2005 2010 2015

RE UK

US

Brands are global.Retail is local.

Market (vs shop) orientation

Community marketing does not scale

(Neither do relationships)

Community team Store managers Customer care

Bethany TerilynLots

Lessons learned in community retailing

Adapt to market conditions

Coordinate with brand campaigns

Find the local influencers

Instill a front-line mentality

A presentation by A presentation to

Move Over, Globalization: Community Retail Has Arrived

Sophie Ross – Group Head of Multichannel

The Big Show15 January 2017

12(1) As at 30 June 2016, including Irish loan portfolio and VIA Outlets acquired

Portfolio overview (1)

Hammerson invests in prime retail assets throughout Europe

UK shop-ping

centres34%

France shopping centres

21%

UK retail parks14%

Premium Outlets17%

Ireland retail8%

Gross Asset Value £9.8bn UK shopping centres £3.3bnFrance £2.1bnPremium Outlets £1.6bnUK Retail Parks £1.4bnIreland retail £0.8bnOther/ developments

£0.6bn

Our assets (1)

Other/developments

6%

Hammerson creates retail destinations

22 prime shopping centres UK & France

250 million visitors each year

£2bn annual sales

£260m passing rents

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19 premium outlets

13 countries

Value Retail and VIA Outlets

17% GAV

Victoria, Leeds Elliott’s Field Shopping Park, Rugby Fashion Arena, Prague

18 retail parks

Selective focus on superior locations

Over 500,000m2

£90m passing rents

Experience Convenience Luxury

Click icon to add picture

Creating destinations where more happens for communities, shoppers & brands

We create desirability

Iconic destinations

World class architecture

Seamless technologyHeart of the community

Best @ retail

Optimal retail mix including new

conceptsFlexible stores

Shared resource

Convenient & easy

Services that drive footfall and support in & out missions

FacilitiesGrab & go food

Interactive & engaging

Services that support browse &

dwell missionsCustomer service

Digital infrastructure

Entertaining & exciting

Integrated leisureFood & beverage

Arts & culture

Sustainability: positive places

Optimal operational performance

Responsive to local needs

Resilient to changing climates

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Hammerson approach to marketing: customised mass production

• Economies of scale• Share and implement

best practice• Rationalised agencies• Lower management costs

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Mass production

• Engage shoppers locally• Ensure relevance for the

market • Differentiate from

competitors

Customised

Key trends in retail

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PersonalisationExperience

Placemaking

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Interactive aquarium – Les Trois Fontaines, Cergy

Terrasses – Les Terrasses du Port, Marseille

Beacons – Highcross, Leicester Bull – Bullring, Birmingham

Fresh retail concepts

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Link Street – Bullring, Birmingham

Focus on local events

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Theatre event space – Italie Deux, Paris

Theatre & outdoor space – Dundrum, Dublin

Esplanade – Westquay, Southampton

Community initiatives

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Pop up business school – Centrale, Croydon

Community Garden – Silverburn, Glasgow

Exclusive offers and loyalty-based rewards personalised to our shoppersLocation-based alerts sent to shoppers in centre using beacon technologyRSVP to events and exclusive competitions Interactive centre map, shop directory, and centre servicesEnables us to collect data and understand how customers are shopping our centres

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The Plus app: Personal shopping companion

The Plus app: 2016 results are encouraging, informative and actionable

• Plus shoppers visit our centres 14% more often

• Plus customers spend 16% longer in centre

• 78% of users register in the app (vs industry norm of under 50%)

• Almost half of registered Plus users have redeemed an offer

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Key takeaways

Focus on centralised delivery to drive down costs and deliver best practice consistently

BUT

Consumers are looking for experience and personalisation This cannot be mass produced

Experience needs to be tailored to the local community and individuals to ensure continued relevance

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