Specialty Retail Report - Retailing Locations

Carts Across America, Winter 2010

admin — Fri, 22 Jan 2010 12:03:38 -0800

These specialty leasing operations in Alberta, Canada and across the U.S. give a snapshot of what's selling in North America. Funlayo Alabi's Shea Radiance in The Mall in Columbia, Columbia, MD by Duffy C. Weir When their children had severely dry skin, Funlayo and Shola Alabi started making natural skincare products using shea butter imported from their native Nigeria.

Carts Across America

admin — Sun, 08 Nov 2009 08:10:26 -0800

Specialty Retail For thousands of troops stationed in various bases at home and around the world, shopping centers, called exchanges, operated by the Army and Air Force Exchange Service, deliver the goods. AAFES, whose motto is "We go where you go," has operations in 183 locations—132 in the United States and 51 overseas. The exchanges are tax-free shopping centers that serve all Department of Defense military members, civilians, contractors, and their families.

Airport Specialty Retail: A Changed Landscape

admin — Sat, 07 Nov 2009 18:56:58 -0800

Well before the recession officially kicked in—as consumers chose to vacation close to home as a less expensive option to flying to tourist destinations—the term "staycation" became a part of the American vocabulary. Despite some of the lowest airfares in years, consumers and business travelers decreased their travel spending.

The Craft Market - A Story of Social Entrepreneurship

admin — Tue, 28 Jul 2009 11:21:59 -0700

Tourism brochures often describe Cape Town in South Africa, as a place where "the world meets the water's edge." It is here that visitors can find a unique craft market teeming with entrepreneurs. The Victoria and Alfred Waterfront (the V & A) retail development in Cape Town is set against a magnificent backdrop of the sea; it has mountain views and a bustling working harbor.

Inside Dubai's Specialty Leasing Scene

admin — Fri, 16 Jan 2009 11:47:51 -0800

Festival City Renowned for its sand, sun and shopping, Dubai City is the most-populous city in Dubai, one of the seven emirates that make up the United Arab Emirates, or UAE. It's one of the fastest-growing cities in the world, a thriving, multiethnic cultural metropolis that caters to the upscale tourist as no other city does. Often called "The shopping capital of the Middle East," the city has attracted the world's attention because of its "build it and they will come" attitude, which includes the world's tallest hotel (Burj Al Arab), the world's first indoor mall ski slope (the Mall of Emirates) and the first manmade archipelago commercial developments (Palm Islands and The World, with more in the works). In a city where everything is over the top, shopping is more than a pastime-it's an Olympic sport! The shopping centers radiate here with the entrepreneurial spirit of merchants bursting with extravagant concepts and imaginative product introductions presented in new ways. A visit to Dubai Festival City, opened in 2007 near the Dubai International Airport, was the highlight of our trip in mid-December (my husband, Matt, accompanied me). A sophisticated mixed-use complex on a historic waterfront that spans 1,600 acres, Festival City offers a rich and vibrant living, shopping, dining, entertainment and residential experience. Owned by The Al Futtaim Real Estate Group, when fully completed (some sections are still in development) the project will include 550 shops and services, 90 restaurants and cafes, a 12-screen cinema complex and 20 international flagship stores including IKEA, a hypermarket and a power center all in one complex. The specialty retail merchant program in the Festival City Centre retail area includes 52 indoor carts, 20 outdoor carts, 30 tenant-owned carts and kiosks, 20 promotional carts, and a sponsorship opportunities and media advertising banner program. Specialty Retail Leasing Manager Marta Bural, an ex-patriot from Poland and Assistant Manager Mark Adams, an ex-patriot from Australia, guided my tour of one of the largest specialty retail programs in the emirate. Highlights and best sellers The top-performing merchant in Festival City Centre is Portfolio, which takes a customer's original artwork or stock art, enlarges it to any size, prints it on canvas and frames it as a finished product. The lure of transforming one's original art or photos into a life-sized wall hanging is very popular with customers. Despite the intense and tight security throughout Dubai's hotels and public places, another top producing concept at Festival Centre is La Cucina (Zwilling), which sells high-quality kitchen knives in boxed sets. This product is better known in the US by the name Henckel Knives and is one of the leading global manufacturers of reliable gourmet knives, gadgets, scissors and other household products. This concept could work in any shopping center, and it had multiple units in Festival City Centre. In keeping with this city's "gold rush/boomtown" image, several other concepts offered the ultimate status symbol for affluent customers: tech gadget bling. The height of fashion in this region is decorating one's cell phone, laptop or other gadget so it reflects the unique personality of the owner. Two carts offered Swarovski crystals for cell phones, cameras and laptops. "Everything customized works best for us," Bural said. For a unique communications masterpiece, shoppers can give their phone or camera to a bead artist to customize a bejeweled look while the customer waits. Prices for SkinJam! adhesive crystals vary according to the size of the phone and the level of decoration the customer wants. SkinJam! is available at malls throughout the UAE or online (see article resources). Again, customization of products in the common area is a big success story in Dubai, as in the US. Music is a significant part of every culture and combining music and live entertainment on a cart is both a novel idea and a visual success story. The operator of the Sadek Music Centre cart serenades customers as he sells guitars and drums. With its entertainment value, this concept offers a unique product and inviting music in multiple locations within Festival City Centre. A concept called Fighter Pilot gives new meaning to the model airplane kits of yesteryear. This concept not only sells expensive finished model airplanes, but customers can also buy build-it-yourself kits. Some of the pricier models are 1,000 dirham (the UAE currency), or approximately $300. The camel, known in the Middle East as "the ship of the desert," was the primary mode of transportation for Bedouin nomads and a main source of milk, meat and wool. Festival City Centre capitalizes on the camel's symbolic importance as a tourist souvenir with a new twist on a plush toy concept by simply showcasing plush camels. This crowd pleaser organizes camels in like-shapes, sizes and colors for a clean, uniform display that draws a lot of tourists buying for children. Among the signs of a city whose primary economic engine is real estate, several sophisticated, static custom-designed real estate kiosks are strategically placed throughout the property, publicizing condominiums, waterfront town homes and commercial real estate opportunities. Manned kiosks with real estate uses include The Fairmont Heritage Place, a traditional kiosk showing architectural models of properties under development. In addition to real estate displays, banners and floor stickers at escalator landings advertise upcoming concerts and special events at Festival City Centre-all additional alternative revenue streams for the property. One last unusual use of common-area space: The Centre's foyer is outfitted as a concierge lounge for guests awaiting transportation by Tameer Malls LLC, another shopping center developer. Several more concepts are worth mentioning not necessarily because the products are unique but because they are concepts beautifully executed with wit, charm and interactive customer sampling. These concepts include (see photos at bottom): flip flops, imported blankets and shawls, bulk candy and nuts, locally made olive-oil-based soaps, a build-your-own-bag concept, and a tea cart selling fresh bulk teas and the latest brewing equipment. Jewelry, often a top-selling specialty retail category in the US, is visibly absent from the common area here. Although Dubai is also known as "The jewelry capital of the world," the jewelry business here is left to permanent retailers, mainly because quality jewelry is readily available-not only through permanent mall tenants but also in numerous gold markets, or souks, found throughout the city. Interestingly, there is an absence of tenants we know in the US as "national retailers." In fact, the only recognizable international name is a delightful Famous Amos cart selling cookies and prepackaged foods. According to Ms. Bural, "There are no US retailers operating here" other than Famous Amos. Setting the holiday season apart from the competition is an important goal for Bural. Perhaps unexpectedly, in a predominately Muslim country Bural has designed and leased an indoor/outdoor "Christmas Market" intended, she said, "To be brimming with traditional holiday gifts right down to roasted chestnuts, in the heart of the Centre." There she hosts guests, especially international visitors, who experience traditional holiday fair from more than 20 temporary units clustered in a center-court-like location. An ice rink located on the marina promenade nearby offers customers a chance to ice skate in the desert surrounded by a traditional Christmas tree and school choirs who perform on a daily basis. It's a truly unique experience for Festival City Centre visitors. Mouse over images below to view. Beyond Festival City A visit to Dubai would be incomplete without stops at the new Dubai Mall and the Souk Madinat Jumeirah, each with its own unique common-area specialty retail program. Dubai Mall, the flagship development of Emaar Properties, is set apart from other centers in the area in that it contains the Dubai Aquarium, the Discovery Center, an Olympic-size ice rink and a gold souk brimming with more than 200 jewelry retailers. Dubai Mall is the largest and most luxurious center in Dubai City, (with another 1,2000 retail outlets set to open soon) housing the finest worldwide brands. This center has many of the same temporary merchants as Festival City Centre, along with a unique common-area display posing Porsche as the fashion link between automotive and retail. Moving on to The Souk Madinat Jumeirah, imagine the most colorful and vibrant markets of an Arabian city. Souks are the real heart of Arabia. Many of the malls in Dubai have tried to artificially create the souk-the infamous labyrinth of stores filled with pottery, spices, gold and silk offered by textile merchants and traders from Iran, India, Egypt and the east coast countries of Africa. After following a maze of pathways that lead visitors through an artificially created bazaar, in time one discovers the ultimate in "products of the sea" including beads, seashells and sheesha water pipe smoking apparatuses! Here, stall market merchants and pushcarts frame the souk "streets" and retail souvenirs spill into the walkways. If you want to experience a 21st Century, multicultural city that revolves around shopping, now is a great time to visit Dubai! In the months of January and February, Dubai hosts its famous Shopping Festival. The annual extravaganza draws people from all over the world to take advantage of the incredible deals-often 50 to 70 percent off. Dubai retail marketers have made this period more important by surrounding it with other events that make the first quarter of 2009 an important retail selling season in Dubai. Bon Voyage!

Vegas Venues Mean Big Business

admin — Fri, 16 Jan 2009 11:04:13 -0800

Taking Advantage Talk about foot traffic! Would you like to operate in an open-air mall that attracts more than 18 million visitors a year? Or in a casino resort full of leisure visitors with an average income that tops $84,000? There's a reason-millions of reasons, in fact-that Las Vegas is home to some of the most successful specialty retail concepts in the country. Retail entrepreneurs in Las Vegas have a lot of advantages from the get-go. For starters, there are the 39 million tourists who spend more than $41 billion a year in the entertainment capital of the world, according to the Las Vegas Convention and Visitors Authority's 2007 count (the latest annual tally available at press time). That $41 billion represents a 5.6 percent increase over 2006, putting Vegas retailers well ahead of the national sales gain that year of three percent according to the National Retail Federation. With the Visitors Bureau expecting to welcome 43 million annual visitors in 2009, Vegas offers tremendous opportunities for specialty retailers who want to operate in centers that draw big foot traffic year-round. But millions of tourists don't add up to big sales unless there are imaginative, passionate specialty retailers launching new businesses that appeal to shoppers' sensibilities. Fortunately, Vegas entrepreneurs aren't afraid to try something different, which is what makes the city so attractive to shoppers in the first place. And with 80 million square feet of retail space, there's no doubt that Vegas offers its visitors unparalleled shopping experiences in some of the most unique retail venues in the world. Fresh approach to souvenirs General Growth Properties' bustling Fashion Show Mall is one of the top 10 retail properties in the country both in terms of size and sales volume. With six flagship anchor stores, nearly two million square feet of retail space and a trade area with more than a million residents whose average household income is above $75,000, Fashion Show is a retail powerhouse. The center attracts more than 10 million visitors a year, many lured by a stream of special events at the center that include live fashion shows on a pop-up runway that consistently draws crowds to the common area. It's no wonder that specialty retail entrepreneur Cindi Nelson decided to open her Vegas! souvenir cart in this three-level, enclosed regional center. Nelson opened Vegas! last summer and response from shoppers was so great that by fall she'd launched another cart in Chelsea Property Group's newly expanded Las Vegas Premium Outlets, an open-air center with more than 150 upscale outlet stores in a half-million-square-foot venue five minutes north of the Strip. Both Vegas! locations sell Nelson's own proprietary-logo apparel for men and women, as well as caps, water bottles, key chains, teddy bears, visors, shot glasses and dog tees-all products in black-and-white only. "That's my theme. It makes a great statement," says Nelson. Apparel, the bulk of her product mix, includes camisoles, "wildly popular" lace tees, and high quality "very, very soft" long-sleeve V-necks. Men's lightweight long-sleeve thermal shirts also are a big hit. Nelson says packaging is a key part of her success because many customers are buying gifts to take home to loved ones and want a special presentation. "Everything we do is wrapped in an organza bag with the logo showing through," she says. The two exceptions: menswear comes in mesh bags and doggie tees in organza bags with velveteen paw prints. Nelson designed her Vegas! logo, a graphic that forms the word 'Vegas' into a letter V. Her goal was to create an eye-catching logo that had "a fresher look" than the graphics she saw on the run-of-the-mill Vegas souvenirs. She wanted "something that could make a statement for a broader market," she says. "The 20 to 40-year-olds weren't thrilled with the older Vegas [souvenir] looks." Her love of the city shows beyond the merchandise she designs, becoming part of the customer's Vegas experience. "I engage [customers]. I ask them where they are staying and offer tips on where to go and what to do," she says. Building a successful business in Vegas means offering customers "more than just my product." A picture's worth... a lot of sales Nightly lines are typical at Cashman Photo Enterprises' Photo Magic kiosk at the Fremont Street Experience, a four-acre, pedestrian-only shopping and entertainment venue that hosts more than 18 million visitors a year. Dozens of specialty retailers here do business beneath the world's biggest big screen-a 1,500-foot canopy with 12.5 million LED lights that plays free, themed shows every night. With direct access to more than 10 casinos and 60 restaurants, it's obvious to retailers here why millions of visitors flock to Fremont Street year after year. But what lures so many customers to the Photo Magic kiosk that nightly lines are the norm? The chance to create one-of-a-kind fantasy photos and videos with the City of Lights as the backdrop. Photo Magic customers can have their photo taken with a Chippendale dancer at the kiosk or they can choose from more than 1,000 other digital fantasy photo shoots, including the best-selling "Elvis with Show Girl," in which a male's face is superimposed onto Elvis's body and a female's face onto the show girl's. Or customers can choose a fantasy music video instead, opting to play the starring role in any number of popular music videos. Cashman owner Karen Cashman explains that "we superimpose the customer's head onto animated bodies" to produce a one-of-a-kind Vegas video souvenir (naturally a best-seller is Elvis's rendition of "Viva, Las Vegas!"). Thanks in part to four plasma screens above the kiosk playing clips of customers' videos, the lines at Photo Magic keep forming day after day. Six more Photo Magic stores dot the Vegas landscape, including those at The Grand Canal Shoppes at The Venetian, the Miracle Mile Shops at Planet Hollywood Resort & Casino, and the Stratosphere Hotel & Casino's Tower Shops. The company also has another specialty retail concept, Cashman Crystals, with five kiosks in area resorts that use 3D scanning technology to capture a customer's image and recreate it inside crystal block or turn the image into a real-life action figure of the customer's own likeness. Other divisions of Cashman focus on event photography and videos for a variety of uses and clients-all related to Vegas. No matter what buying experience a customer chooses at the company's stores, Karen Cashman says, her company's mission is to be "a highlight of someone's Vegas vacation." Custom jewelry fits casino crowd Designed to recreate the romance and excitement of Venice, Italy, The Grand Canal Shoppes at The Venetian, a General Growth Properties platinum property, is stunning from the illuminated painted sky ceilings overhead to the cobblestone walkways and winding canals with serenading gondoliers below. And don't forget the "Streetosphere" in between featuring trained singers, musicians and actors who interact with the property's 20 million annual visitors, giving them a truly unique entertainment and shopping experience. Specialty retailers here are part of a luxurious indoor shopping center unlike any other on the Strip in this one-level, 500,000-square-foot retail venue nestled in the heart of The Venetian Resort, Hotel & Casino, the largest AAA five-diamond resort in the Americas, owned by the Las Vegas Sands Corporation. Located within walking distance of 75 percent of the Strip's 135,000+ hotel rooms, The Shoppes are across the street from the Wynn Las Vegas and Treasure Island Casinos as well as GGP's Fashion Show Mall. Ninety-four percent of the properties' 20 million visitors are tourists, with average annual incomes from $84,157 for leisure guests to $130,673 for business guests. Harlequino, a striking kiosk that sells Venetian glass beads, fits into The Grand Canal Shoppes' casino resort environment perfectly. In fact, the kiosk is designed to showcase the beauty and romance of the Harlequino products while evoking "a feeling of Venice," says owner Stefano Ripamonti. The Harlequino jewelry concept has an interesting twist, too: customers can purchase eye-catching bracelets, necklaces, earrings and other traditional jewelry pieces as they would at any store, or they can choose the beads they like and design their own pieces from scratch. The kiosk also sells a range of Vegas-themed charms, such as the dice-and-cards design that is "very popular," Ripamonti says. But usually customers pick the beads they love to build the exact look that they like, and while they continue shopping or stroll over to the casino floor for a quick bet or two, their jewelry is constructed by trained staff and tastefully packaged for pickup an hour or so later. Ninety-five percent of Harlequino's customers are tourists attracted to the idea of taking home an affordable, one-of-a-kind piece of jewelry they created to match their own individual tastes-and maybe that little black dress they just picked up at the nearby Ann Taylor for a night on the Strip. Prices at Harlequino run from about $45 for a small, simple design to $200 for larger, more-complicated pieces. Of course, for time-pressed customers, Harlequino offers a large selection of pre-made pieces ready for grab-and-go sales. Those sales are welcome, of course, says Ripamonti, but the act of "constructing their own jewelry adds to the customer's excitement," which turns a shopping trip into a shopping experience-just what Vegas tourists want. One-of-a-kind treasures Few things are more exciting for boys and girls (of any age) than dreams of finding sunken treasure-dreams that come true at the Historic Treasures cart in Turnberry Associates' Town Square Las Vegas, a 100-acre, open-air, shopping, dining and entertainment center with 1.5 million square feet of retail and class-A office space that opened in 2007. At Historic Treasures, children and adults can purchase boxed coal from the Titanic and replica coins from Spanish shipwrecks, as well as meteorites, dinosaur bones and educational books and videos. Historic Treasures fits right into the Town Square tenant mix, an eclectic group of retailers and restaurants in a mixed-use complex of 22 buildings with some pedestrian-friendly streets and lushly landscaped walkways. The average shopper income here is in excess of $88,000. Historical Treasures' president, David Vapnitsky, is both passionate and knowledgeable about his products, many of which have links to a 1622 Spanish shipwreck he helped explore in Florida waters in the late '80s. He offers replica coins from the wreck beginning at $1, to actual coins for $1,000 or more. A plasma video monitor at the cart shows customers a variety of dives for sunken treasure, including Vapnitsky at a young age working on wrecks off of Key West. In keeping with its theme, the cart is designed to resemble a museum, with lots of products displayed in locked Plexiglas cubes. But not everything is do-not-touch. Every day streams of customers enjoy playing Lift the Meteorite. "It's the size of half a cantaloupe but is very dense and very heavy, like the weight of a solid bar of gold," Vapnitsky explains. Referring mostly to his younger customers, he adds, "If you want to nourish the learning process, get this stuff in their hands." While he's making sales, he's also hoping to inspire a future scientist or two. Who knows, he says, his next young customer playing Lift the Meteorite "might even become a geologist!" Big traffic, big opportunities For Vegas visitors ready to hit the Strip in search of the hottest club or biggest party, Bella Boutique in the Tower Shops at the Stratosphere Hotel has just the outfit. Located on the second floor of the Stratosphere Hotel & Casino, owned by American Casino & Entertainment Properties, Bella Boutique gets a lot of foot traffic because the Tower Shops are a necessary detour on the way to one of Vegas's premier tourist attractions, the Stratosphere Tower-the tallest freestanding observation tower in the US that houses three amusement park thrill rides. In the 65,000-square-foot Tower Shops, shoppers find themselves journeying through themed areas that look like France, China or New York City. Bella Boutique was recently purchased by retail entrepreneur Scott Savage, who immediately made many revenue-increasing changes, including "new merchandise and a new feel" and a new men's line due soon. He points out that at Bella Boutique all of the fixtures are cherry wood, merchandise is given room to breathe, sales associates are helpful, not pushy, and all receipts are handwritten. "We make our store feel high-end, but the average price point is $50," he says. Prior to his buying the store, "almost everything was around a $100 price point and we made an effort to get that down." When it comes to accessories, sunglasses are particularly popular, with designer names such as Dior, Gucci, Chanel, Prada, and Ray-Ban retailing between $145 and $500. "A lot of people come in and want to buy that one expensive item on their trip," Savage says. "People go to gift shops for the $2 trinkets for friends, but come to our store to buy things for themselves." Business has been so good that he's now exploring opportunities inside the Tower Shops for another retail concept. "There is so much opportunity" in Vegas, he says, because "you have so many people walking by." Plumes of Profit for Primm Parrots It's not every day that shoppers stroll the common area of a mall only to come upon a large crowd of... parrots. But at Fashion Outlets of Las Vegas, a 370,000-square-foot, one-level enclosed center that's part of the Primm Valley Resort & Casino, a group of lively, colorful and incredibly friendly parrots is exactly what shoppers find. Clint Carralho, owner of One Minute Parrot Photos, has been training birds since he was 11 years old and produces bird shows so phenomenal that he's been the opening act for Jay Leno's stand-up shows at the Mirage for the past decade. Carralho brings 10 to15 (of his 213) birds to Fashion Outlets on an average day for feathery fun photo shoots with adults and children. He arranges the customers and birds in several poses, then customers choose the photos they like best, which Caralho prints and laminates on site in seconds. More Fabulous Vegas Venues In addition to the shopping centers mentioned in this article, there are many other noteworthy centers with specialty retail programs in the Vegas area. They include: Boulevard Mall, a 1.2-million-square-foot, enclosed, super-regional shopping center minutes from the Strip and one mile from the University of Nevada. Galleria at Sunset, located in Henderson, NV, an enclosed, two-level, regional center of more than one million square feet-the only enclosed mall in Henderson. Las Vegas Outlet Center, a one-level, enclosed center at the south end of the Strip with about a half-million square feet of retail housing more than 130 brand-name outlet stores. Meadows Mall, a two-level, enclosed, regional shopping center of about one million square feet with a sales increase of 18 percent over the last five years. Miracle Mile Shops at Planet Hollywood Resort & Casino, a 1.2-mile-long, enclosed center with 170 specialty stores and 15 restaurants; completely renovated in 2007. The Shoppes at The Palazzo, a one-level, 450,000-square-foot, enclosed fashion entertainment destination adjoining The Palazzo Resort-Hotel-Casino, The Venetian Resort-Hotel-Casino and The Grand Canal Shoppes. A specialty leasing program is planned for launch in January 2009. Summerlin Centre, a 1.5-million-square-foot, open-air center that's is part of a larger master-planned community approximately twelve miles from downtown Vegas; scheduled to open in 2010. Article Resources Bella Boutique702.327.1851BellaBoutiqueLasVegas@hotmail.com Boulevard Mall702.732.8949BoulevardMall.com Cashman Photo Enterprises702.830.8300CashmanPhoto.com Fashion Outlets of Las Vegas702.874.1400FOLV.com Fashion Show 702.784.7000TheFashionShow.com Fremont Street Experience702.678.5720VegasExperience.com Galleria at Sunset702.434.0202GalleriaAtSunset.com Harlequino702.733.1004Montivegas@gmail.com Historic Treasures702.340.2342Skyvaper247@yahoo.com Las Vegas Outlet Center702.896.5599 PremiumOutlets.com Las Vegas Premium Outlets702.474.7500PremiumOutlets.com Meadows Mall702.878.3331MeadowsMall.com Miracle Mile Shops at Planet Hollywood Resort & Casino702.866.0703 MiracleMileShopsLV.com One Minute Parrot Photos702.379.3057TopBird.com Summerlin Centre818.459.6814SummerlinCentre.com The Grand Canal Shoppes702.414.4500TheGrandCanalShoppes.com Tower Shops at the Stratosphere800.998.6937StratosphereHotel.com Town Square Las Vegas702.301.0100TownSquareLasVegas.com Vegas!702.379.8899 BrandVegas.com

Projecting a Powerful Retail Identity at the Airport

admin — Thu, 09 Oct 2008 10:03:56 -0700

Determine Your Image As a visual merchandiser for a wide range of retailers, I often find myself talking with retailers about their businesses, focusing in on what retailers really sell. Products are exchanged between retailers and their customers, yes, but what's really being sold isn't sitting on the shelf. If a shopper in an airport or mall or any other retail venue sees several jewelry carts, what makes that customer visit one cart over the other? Hint: It's not the jewelry. For example, one cart might sell jewelry for the successful career woman while another might sell jewelry that's fun and casual. The cart that targets career women sells success, since a well-accessorized woman conveys upwardly mobile professionalism. The casual-jewelry cart sells fun and excitement. Product categories aside, if you want to establish a powerful retail identity in an airport or a mall, the first step is to ask yourself what you really sell. Once you've determined the image you want to project, you can reinforce and layer it throughout your visual presentation. The messaging strategy starts with your signs acting as passive salespeople and extends to the right product intensity and placement, with the various display elements working together to guide your customers' purchasing decisions along the way to your register. But first a word about how airport retail is different than selling in any other venue. Rushed, distracted shoppers Establishing a retail identity based on what you really sell is vital for any retail business, no matter where it's located, but in an airport setting, it's absolutely critical. Why? Because of the stressful, harried nature of airport travel. Fliers have an important and pressing goal to achieve before they even consider shopping: making their plane. They have to look for way-finding signs, get to the right terminal, the right counter for checking, the shortest security line and the right gate. Even after they clear security, where retailers are often busier because travelers are at or close to their gate, anxiety levels can remain high while fliers stay on guard for flight announcements. How can a specialty retailer create an effective airport identity that cuts through all of this mental clutter to make an impression in just seconds that draws in shoppers? First, start with your signs. Signs: your unpaid salespeople Signs sell. They capture the customer's attention, relay key data and direct the customer's buying decision. Experienced operators recognize this and consider signs their silent selling partners, their passive salespeople. Signs have a hierarchy, starting with the one on the roof of your cart. Like any storefront signage, the sign on your roof should immediately convey not only your product selection but also your target customer and price points. Take a look at the two accessories cart logos here. The first features colorful, fanciful lettering that immediately conveys to shoppers that the retailer stocks fun and casual popular-price-point merchandise. Elevate the logo with a lighter, more-sophisticated typeface offset by a subdued mustard background and the message changes to that of mid- to high-price-point products for the woman seeking finer goods. In these logo examples it's easy to see how key information about the retailer is being conveyed, but it's often harder to recognize that your signage is conveying these images to your customers every day, even if you didn't give much thought to your signage when you launched your cart. Customers are making judgments about your business well before they're close enough to your cart to view your products up-close. The question is: Are you broadcasting the right messages to potential customers to bring them closer with an eye to buy, or are the messages you're sending falling flat? (Or even worse, are the messages you're projecting pushing customers away?) Once the customer approaches your cart, it's important to entice them to shop every side of your display with category signs that indicate the type of product housed on each side. Ideally, carts have three stories to tell-one on each wide side and another at the end cap. For example, an accessory cart may have signs saying, "Necklaces," "Headbands" and "Brooches." A customer who sees the "Necklaces" sign while approaching a cart immediately understands the idea: "This side of the cart has necklaces; take a look at the other sides to see what other accessories we have." Price signs, the third layer of signage, indicate affordability. Similarly priced merchandise can be grouped together for easy shopability (prompting the shopper to think, "I'm willing to spend $25. Which pair of earrings do I want in this $25 group?"). Prestige or higher-price-point carts might merchandise by style ("Contemporary," "Classic" or "Specialty"). Within each group, brands may be identified with additional signage, followed by conversational signs that explain more about the product and feature-price signs when appropriate. Retailers who really make their signage work for them love conversational signs that take a few paragraphs to point out product features and benefits, calling them "co-producers of service" because the signs can relay key product data to a customer while the human salesperson is busy with another customer. Take for example the sign hierarchy plan-o-grams shown here for two Texas airport tenants. The tea retailer's visual merchandising strategy shows premium-priced core products merchandised eye to waist level, with each product supported by a conversational sign. Mid-priced or peripheral products are displayed below waist level. Focal displays are shown on the top shelf unit. The jewelry retailer showcases its premium jewelry sets and special pieces at eye and waist level, with popular-price-point merchandise below waist level on the wide sides of the cart and on the end cap. Taking into account the dominance of airport way-finding signs, though, establishing a retail identity through prominent signage is only part of equation when it comes to cutting through the airport clutter. Product intensity, placement convey price Another way that customers make judgments about your business far before they're within reach of your salesperson is by analyzing your product intensity. For this reason, your merchandising intensity needs to support and extend the identity you've established through your signage, or you'll be sending your best future customers conflicting messages. Shoppers, no matter how relaxed, don't like receiving conflicting messages about what a store is or isn't, and are apt to turn their attention elsewhere if you make them work too hard to figure it out. Airport shoppers are definitely in no mood. When it comes to product intensity, the rules are very straightforward: Popular-price-point retailers intensify the amount of product displayed to convey affordability. In contrast, well-spaced products result in an enhanced value perception in the shopper's mind. The right product intensity not only helps you create a more powerful retail identity, but also helps customers understand that they're in the right place. If they're in the mood to purchase a popular-price-point piece of jewelry but hesitate to approach your cart because they can't really figure out what your general pricing strategy is, they might hesitate, and in an airport environment that can be enough to cost you a sale. The more effectively you can manage your customers' expectations by broadcasting your price points, the more likely you are to sell to the customers who approach. Product intensity can be a very powerful selling tool. The Corioliss Hair Styling Tools cart shown here carries premium products while emphasizing the buying experience. The natural strategy for this product is less intensity. In addition to setting the upscale stage with key props and fixtures, the wide side of the cart houses a large framed mirror to reflect the customer's image while the sales associate demonstrates the product's use in an intimate, soft and feminine environment. This merchandising approach forms an immediate and positive emotional attachment to the product and the salesperson. The end-cap display reinforces the product benefits advertised on the company's large blade posters (It's all about the curl!) and uses a video demonstration loop to convey additional product benefits and lifestyle marketing messages. Conversely, the handbags cart shown here featuring popular-price-point handbags is intensely merchandised to visually convey that pricing strategy in an instant. Visibility across the unit is achieved despite the high product intensity with the use of slotted standards and hang-rail fixtures. The high product intensity also focuses the customers' eyes on the product rather than a lot of blank negative space-a common display problem with handbags. Because all bags are similar in style, product categorization is achieved by color, with warm colors on one side, cool on the other and the end cap housing featured products. Reinforce your message Remember, the key to effective visual merchandising is to match your visuals to your product and customer, not to make your cart look the "prettiest" it can be. The purpose of your display isn't just to stand out in the crowd-it's to attract the maximum number of customers most likely to buy from you and help you close as many sales as possible. To achieve those display goals, start with the core "What am I really selling?" question. Reinforce that message throughout your signage, choosing the product intensity and placement strategies appropriate for your cart, and you'll be well on your way to creating a lasting image in fliers' minds. The best part? Investment in these visual merchandising strategies is minimal, while the effect on your bottom line is limitless. There's no telling how far you can grow with a powerful airport retail identity. Mistake #1: Signage that doesn't help you sell Fortunately, carts and kiosks are exceptionally visible in the middle of airport foot traffic. But that doesn't mean that airport retailers can simply turn on the lights and ring up record-breaking sales. Especially in airports, where travelers are usually focused on making a flight or finding their baggage, retailers need to use any and every available strategy to get noticed-and that means investing in signage that helps you sell. Professionally produced, prominent signage that fits the image of your business is a must. Signage that helps you sell conveys to potential customers at a distance what's being sold and, if possible, your pricing strategy (luxury, value, etc.). Once the customer is drawn closer, additional product signage needs to convey specific prices as well as product features and benefits. The two photos here from a skincare cart work together to draw the customer in. The green sign bottom center has just a few words of large type that convey what's for sale (mineral rich Dead Sea products) and can be seen from a distance. When the customer comes closer, the more-detailed sign near the mirror conveys the benefits of using the product (protecting the skin's moisture, etc.). These signs walk the customer through the process of understanding the product, pointing out the benefits the company believes are most important to the consumers they target. Signs that help you sell stand ready to relay key selling information if you're busy with another customer or if your customer just wants to browse without your assistance. They're your silent salespeople. But only if you hire them. Mistake #2: Too many price points Nothing makes it easier for customers to buy than a single price point. There is an almost-instantaneous invitation for customers to browse through a selection of products knowing how much they're going to spend. It becomes a matter of "Which one do I like?" Carts are known to offer impulse or value-priced products. Supporting this perception through a single grab-and-go pricing strategy makes conversion easier. The method has proven successful with $10 watch carts, $10 sunglasses carts, etc. Here's a photo of a $12 handbag cart that projects its pricing strategy to quite a distance, then uses a center focal color to draw the female eye to the bags. Of course, if your product lineup precludes grab-and-go pricing, you can allocate single price points for each of the three display sides of your cart or group products in a way that fits your needs. But resist the temptation to make the pricing groups smaller and smaller. Grab-and-go pricing is only effective if prices are the same across large groups of products and can be immediately understood by the customer. Six groupings of items, each $5 less than the next, is not grab-and-go pricing. Two groups, each with one price point (an average of three original price points) will display more effectively and sell faster. Mistake #3: Products with no prices If grab-and-go single pricing is not possible, every item on display needs to be clearly priced. For the hurried shopper, there are few things more off-putting than having to wait for a salesperson to find out how much something costs. How many times have you shopped a retail store where you decided not to buy because the price wasn't on the product and you didn't feel like hunting it down? Only you know. How many customers have left your cart simply because they couldn't be bothered to ask your sales staff for a price? You'll never know. Check out the handbags photo above again. Notice that the $12 price point is indicated on five signs-and that's just from one vantage point. There's no wiggle room for this cart's customer to be confused about prices. Less confusion means more sales. Of course excellent visual merchandising is designed to get your cart noticed, but the end game is using your display to fill the till. Mistake #4: An unfocused display Having three open display sides can be a double-edged sword for cart operators. While it certainly makes it easy for shoppers to view products, it also doesn't leave much room for error. Inline retailers can have a display here or there that doesn't really work to sell that product, but the store will be fine. A side of your cart that isn't selling for you is not an option if you want profits. If your display is over-packed, disorganized, lacking product, or any other symptom of bad visual merchandising, not only is it difficult for customers to shop your cart, but your display also will turn off would-be customers. Start by understanding how customers shop your specific product line. For example, most customers shop home accessories by end-use. This means that grouping all kitchen accessories on one side and living room accent pieces on another and so on. The end-use groupings will give you a higher-impact display than if the categories were mixed and the products were displayed according to, for example, color. On the other hand, if all items share the same category grouping, such as the fashion scarves shown in the photos here, color-groupings work well. Note the price groupings and signage on the bottom shelves in the enlarged photo. With color groupings like this, one side of the cart might display scarves with warm tones (reds, oranges, yellows) while another might be cool tones (greens, blues, violets) while the endcap might showcase neutrals (off-whites, tans, etc.). Take a look at how your customers shop your products to determine the best grouping strategy for your cart. Mistake #5: Poor customer service The final mistake involves your display and a lot more. Yes, great customer service has a positive impact on sales, but also remember that the benefits of excellent service extend far beyond the balance sheet. In the traveler's mind, you're not only a brand ambassador for your product and your business, but also for your airport, maybe even your city or country, in the international traveler's mind. Be a great brand ambassador. Make your customer's buying experience at the airport a positive one from your display to your attitude and you'll ensure that visitors leave with a pleasant memory of their trip.

Airport Retail 101: Your Top 15 FAQs Answered

admin — Tue, 12 Aug 2008 11:57:01 -0700

As more specialty retailers look to the airport market for their first location or next expansion, the competition for cart and kiosk space has heated up. Specialty Retail Report spoke with Iris Messina, specialty leasing manager of the airport division at Westfield Concessions Management, which manages the concessions programs in eight major US airports. The company is based in Los Angeles, but Messina is in East Boston, where she keeps a keen eye on the city's bustling Logan International Airport, which has a dynamic specialty leasing program that caters to more than 27 million fliers and 12,000 airport employees. She answered our readers' Top 10 FAQs on airport retail faster than you can say "ready for takeoff." 1. What products or concepts are most likely to succeed in an airport? A: Retail concepts that are easily understood by shoppers and fill a niche for the traveling public tend to perform better than others in an airport setting. A wide range of products have successful track records, including but not limited to: Souvenirs, gifts and unique keepsakes Forgotten or replacement items (bath & body, health, electronics, small leather goods, eyewear, seasonal, weather items, etc.) Items that are easy to carry Items to help pass the time (games, books, toys, puzzles, audio/visual, etc.) Unique products Seasonal items and "hot" trendy products Concepts or products that achieve the strongest sales traditionally complement the existing merchandising mix and fit the demographic profile of the travelers and visitors in that particular area of the airport. For example, international travelers taking off from Terminal X may represent a drastically different demographic than the value flier in Terminal Z. 2. Do I need a business plan to have my concept considered and if so, what elements does the leasing rep look for when considering a new use? A: Yes, you absolutely need a business plan. At a minimum your plan should cover in detail your previous retail/business experience, financial and market analyses, a proposed start-up timeline, and sales projections. Additionally, your plan should outline a well-defined concept, including specifics on your proposed product/category assortment, visual merchandising plan and pricing strategy (including price lists). 3. Do I need to test-market or establish a sales history in a mall, for example, before I pitch my concept to an airport? A: A retail test isn't necessary, but it is helpful. Operators who have refined their business strategy in another retail environment before attempting an airport location are traditionally better able to weather fluctuations in sales and changes in travel patterns. It is not recommended that retail entrepreneurs with no previous retail experience start off in the airport environment. Of course, there are exceptions to every rule. Some might not consider fresh, rich, homemade fudge a "sure winner" for the airport market, but in 2003 Westfield Concession Management partnered with Boston entrepreneur Steve Clement to test a unique kiosk concept based on Clement's two favorite passions: airplanes and making fudge. Nearly five years after The Fudge Bar opened in Boston's Logan International Airport, the business is still successful, with a strong cult following of loyal patrons and new customers discovering the product each day. 4. What is a Disadvantaged Business Enterprise in the world of airport retail? A: As defined by the Department of Transportation on their web site (www.osdbu.dot.gov), a Disadvantaged Business Enterprise is a for-profit small business where socially or economically disadvantaged individuals own at least a 51 percent interest and control management and daily business operations. African American, Hispanic, Native American, Asian-Pacific, Subcontinent American and female owned and operated businesses are generally qualified to receive DBE status. Other companies can also qualify as DBEs on a case-by-case basis. The DBE program is unique to the transportation industry. The Department of Transportation mandates sales percentage goals to be reached specifically by DBE operations for each property/program. The objective is to create a "level playing field" on which all firms can compete. Although DBE certification can be cumbersome and time consuming, it is not usually required, nor is it often pursued by, specialty leasing tenants, because the review/approval process may take longer than the specialty retailer's actual term of operation. Westfield views RMUs, or retail merchandising units, the formal name for carts, as excellent DBE incubators and has over the years converted many RMU and kiosk tenants to permanent tenancy. 5. What do I need to know about pricing in an airport market? A: There are a few exceptions, but the majority of airports across the country have instituted pricing regulations. Operators are required to adhere to a fair-pricing policy to ensure that the traveling public, airport and airline employees, as well as visitors to the airport will not encounter prices that are higher than those for similar products and services outside the airport. As a result, most airports require that specialty retailers submit a product price list with three local-price comparisons prior to operational approval. Airport management will recheck those comparison prices periodically once the retailer is up-and-running. Each airport determines the frequency of the price reviews and reserves the right to request price changes. 6. What do I need to know about hiring employees for airport locations? A: Hiring employees for an airport RMU or kiosk will take longer than it would for a mall location. Considerations include: n Security badging and TSA background checks. Processing times vary by airport, but it typically takes about two weeks for each employee to be processed. n Compensation rates for airport retail employees are traditionally higher than those of mall employees. Internal property recruiting and wage/bidding wars are prohibited. Retailers' operating hours are based on flight activity to best service the traveling public (may be open longer than traditional malls; scheduling flexibility is key for employers and employees). Airport retailers operate 365 days a year. Many airports have limited on-site parking facilities for employees, so additional commuting time may be required by employees. Because airport retailers have a few additional hiring hurdles to jump, some airport concessions management companies, including Westfield Concession Management, help facilitate hiring through websites specifically designed to recruit candidates interested in working at airport retail locations. 7. What do I need to know about receiving product in an airport? A: Every airport is required to adhere to strict federal regulations as set forth by the TSA concerning all product (and people) entering and leaving the airport-without exception. But each airport has clear, specific policies and procedures in place that allow retailers to adequately address their daily business needs in terms of accepting deliveries, handling prohibited items, regulating employee access to restricted areas, etc. As with hiring, receiving product takes more time than it would in a mall. However, with a little preparation, the additional time will not affect your business. 8. What is the process after I pitch my concept? And how long might it take from the day I pitch my concept to the day I open for business? A: The specific steps in the process and timeframe for start-up will vary from retailer to retailer, but will be influenced by these factors: The quality of the retailer's business plan Location availability Time needed for the badging process and TSA background checks Availability of all parties to fully review the concept Complexity of the feedback or questions that need answering If too many questions are outstanding, the concept may require further review by the airport leasing professionals or a re-submittal by the retailer. 9. What type of foot traffic can I expect in an airport? A: Passenger levels vary by airport, but generally spring break and the summer months tend to be the heaviest travel times of the year. Holidays may be busy at airports, but they are by no means the peak travel/sales times of the year. Because most airport RMUs and kiosks are in post-security areas (after passengers clear security) retailers benefit from having a captive audience of potential customers. In many airports with concession programs managed by Westfield, dwell times (from arrival at the airport to boarding a flight) range from one to one-and-a-half hours, so passengers have ample time to shop. 10. What is the biggest mistake specialty retailers make when pitching their concept? A: There are two big mistakes to avoid: poor planning and not understanding the airport environment. First, do the necessary homework to create a well-researched and well-defined retail concept. Second, remember that just because a concept works in a mall does not mean it will work in an airport. The best airport business proposals are the ones that include a thoughtful, thorough analysis of the product, how it appeals to the target airport shopper and how the business will be visually merchandised and managed. In the end, if you give the airport management a clear and thoughtful analysis of your business, you'll have a much better chance of getting your concept approved and launched. 11. What is the biggest mistake specialty retailers make once they open in an airport? A: Retailers' biggest mistakes revolve around poor planning and unrealistic expectations. It's OK to be ambitious, but to be successful you must be realistic and plan accordingly. It takes time to establish your business and build awareness. Westfield recommends planning for slower sales at the outset, with the expectation to grow sales steadily as you learn and adapt to the airport environment. Be careful to not overreact to initial difficulties. Resist the urge to add or subtract merchandise or change concepts without giving the business the proper timeframe to develop. 12. What are some of the differences between airport and mall shoppers? A: The first and somewhat obvious difference revolves around the reason why people are at the mall as opposed to the airport. Shoppers visit a mall with the primary purpose of shopping, but people at an airport are generally there for one of three reasons: 1) to travel, 2) to pick up or drop off someone who is traveling or 3) to work at the airport. Thus, shopping is at best a secondary consideration for airport visitors. Additional differences between airport and mall shoppers include the following: Airport shoppers may have higher stress levels due to travel anxieties and an unfamiliarity with the airport The customer demographic in the airport is more affluent than at malls due to the influx of business and international travelers Airport employees who are shopping expect to receive employee discounts Due to the fast-paced environment of the airport, many shoppers are not in the proper mindset to browse Product sizes and quantities are major concerns for airport shoppers Airport shoppers frequently buy gifts for those at home, so the gift market is the primary product category they seek. 13. Does my marketing or merchandising approach need to be handled differently? A: Yes! Most specialty retail purchases at airports are not planned expenditures; the majority of purchases are based on impulse. For optimal success, Westfield recommends that your location radiates the look and feel of an upscale boutique, with a visually attractive, high-end appeal, clean and neat (clutter free) merchandising and easy accessibility to products. Live by the saying, "less is more and more is less." Streamlining your presentation sends a nonverbal signal to time-constrained travelers that lets them know they have ample time to select, purchase and be on their way. The opposite is true as well: Show too much merchandise and you will send a nonverbal cue that will deter passenger patronage. 14. What should airport retailers consider when thinking of packaging and shipping? A: Offering passengers different packaging and shipping options can add to your kiosk's appeal, as they assist passengers in addressing their navigational and travel concerns. Other merchandising considerations include managing the frequency and quantity of product shipments to maintain full and attractive stock levels at all times. 15. How about a few top tips for maintaining strong sales once a retailer opens? A: Some key points to be aware of include: Maintain good stock levels of top-selling items Avoid merchandise cluster Keep your product line focused and make it clear what you're selling Maintain high operational standards (you're "on show" all the time) Stay flexible and be willing to solicit and accept advice.

On Location in Las Vegas

admin — Mon, 31 Dec 2007 22:00:00 -0800

In Vegas, every shopping center, every redevelopment, every project in the works seems impossibly more impressive than the last. From new developments like Town Square, an open-air, Main Street-themed property with 150 shops and 12 restaurants, to Miracle Mile Shops with its $50 million makeover and a sleek, contemporary look, retailing in Vegas is brighter and bigger than ever before. The Las Vegas area had 47 million square feet worth of retail space as of the second quarter of 2007, an increase of 7.5 percent over the previous year, according to the Las Vegas Business Press. And the future looks just as dazzling with coming attractions such as Summerlin Centre expected to open in October 2009, an open-air property with more than one million square feet of retail space catering to a master-planned community of over 95,000 residents. But the prime Vegas advantage for retailers is tourists—millions of them. Las Vegas is now the fifth most-popular destination in the world. Visitor volume for 2008 is forecast to reach 42 million, an increase of almost five percent over 2007, according to the University of Nevada's Center for Business and Economic Research. Stuart Bailey, retail property manager for Fashion Outlets of Las Vegas in Primm, NV, says he's noticed "a significant year-over-year increase in visitors from Canada, the United Kingdom, Mexico, Japan and Germany." He adds that Vegas also attracts "a wide reaching and diverse group of visitors not only from the local region, [and] draws significantly from Los Angeles, Arizona and the East Coast." What do all those visitors do when they get here? They spend. In 2006, tourism spending topped $39 billion. More than half of Vegas's annual visitors spend time shopping, with an average of $140.86 per trip, more than twice as much as on sightseeing and show tickets combined, reports the Las Vegas Convention & Visitors Authority. Locals are a spending force, too. With nearly two million residents, Clark County (home of Las Vegas) is one of the fastest-growing counties in the US—approximately 5,000 people move to the city every month, according to the Las Vegas Convention & Visitors Authority. Vegas is a draw like no other, with towering skyscraper resorts and more than 200 casinos. And as the casinos go, so goes Las Vegas. Where else will you hear, "If I win, I will be right back to buy this"—a common refrain on Fremont Street, according to Linda Rienzo, who manages a one-of-a-kind specialty leasing program at the Fremont Street Experience. Here's a snapshot of that property and others with specialty leasing programs in this bustling, blingfest of a city that never sleeps. The tourist trade If you visit Las Vegas, you "hit the Strip," (or Las Vegas Boulevard South), where all the action is—the bright lights, the big bets, the over-the-top places to shop. "[Visitors] will walk the entire Strip," says David Palomo, group vice-president of business development for General Growth Properties in the Las Vegas area. "They'll visit every shopping destination. That's why so many cart operators have a strong desire to be on the Strip. They know what's at their front door." Shopping centers on the Strip are just as grand as the four-star hotels and world-renowned casinos they neighbor. Fashion Show, owned by General Growth Properties, is a three-level, enclosed, super-regional center that ranks among the top 10 centers in the country for both size and sales volume. It has seven department stores, including Bloomingdale's Home, Neiman Marcus, and Nordstrom, as well as 250 specialty shops, for a whopping 1.9 million square feet. Visitors will find live models strutting their stuff every Friday, Saturday and Sunday on a fashion runway that emerges out of the ground. Fashion Show's 52 year-round carts are spread throughout all three levels, including 10 that surround the fashion runway. A new and unique use experiencing success is Travelocity, where customers can build their own travel itinerary online or speak with a representative. Other uses include wine accessories, and health and fitness products. Most cart retailers at this center are expected to exceed $500,000 in sales. In the heart of downtown Vegas, roughly 10 miles away, lies another equally impressive specialty retail venue, the Fremont Street Experience. Although this four-block-long pedestrian mall isn't technically located on the Strip, it's surrounded by 10 high-traffic casinos and draws throngs of tourists (almost 19 million last year). Fremont Street Experience boasts the world's biggest big-screen (longer than five football fields), which serves as a canopy 90 feet above a shopping scene populated by specialty retailers. Themed nightly big-screen shows, with larger-than-life images and concert-quality sound, are free. There are 40-plus carts in Fremont's specialty leasing program and additional units are added for roughly 50 special events per year. In 2007, three of the 40 specialty retail locations at Fremont Street grossed more than $1 million in sales. Interactive uses, such as Cashman's Photo Magic kiosk, where visitors can have their photos taken with Chippendale dancers, are particularly popular. Not only do photo products serve as great souvenirs for tourists, they're also a form of entertainment, which has tremendous appeal to Fremont's customers, says Specialty Retail Leasing & Parking Facilities Manager Linda Rienzo. Back on the Strip, adjoining Planet Hollywood Resort & Casino, is Miracle Mile Shops, owned by Boulevard Invest LLC, an enclosed, single-level center through which an average of 48,000 people pass per day. Shoppers will find 170 stores throughout the 475,000-square-foot property, including Sephora, bebe, H&M, and Urban Outfitters. There are also 15 restaurants and live entertainment. The center, as previously noted, recently underwent extensive remodeling, including the specialty retail program, to create a more modern, contemporary look. There are 35 custom-made new carts spread throughout the center. Because the center is 90 percent tourist driven, new shopping dollars are constantly entering the property, says Specialty Leasing Manger Amanda Cole. Naturally, then, Miracle Mile retailers "thrive on capturing the impulse shopper," she says. Located on the second floor of the Stratosphere Hotel & Casino, owned by American Casino & Entertainment Properties, directly on the way to one of Vegas's premier tourist attractions, the Stratosphere Tower—the tallest freestanding observation tower in the United States, standing 1,149 feet tall and hosting three thrill rides—are The Tower Shops, with over 65,000 square feet of retail in a one-level, enclosed center. Visitors will find themselves journeying from France to China and on to New York in the center's themed interior housing more than 50 stores and 13 kiosks with popular tourist uses, such as airbrushed tattoos and caricatures. The Grand Canal Shoppes, owned by General Growth Properties, is another one-level, enclosed center that adjoins a hotel and casino, in this case The Venetian Resort-Hotel-Casino, which evokes the spirit and feel of Venice at every turn. Visitors to The Grand Canal Shoppes, totaling 464,000 square feet, stroll cobblestone walkways with arched bridges and winding canals lined with 80 international boutiques, including exclusive stores such as Jimmy Choo and Lior. There are three carts and two wall units in Grand Canal's specialty leasing program, selling products such as fashion jewelry and Italian-themed merchandise. Banking on the community draw It's not all tourist glitz and glam in Sin City; in fact, many centers cater to the locals, including The Boulevard Mall, a General Growth property. This single-level, enclosed, super-regional property has 1.2 million square feet with anchors including Dillard's, JCPenney, Macy's, and Sears, as well as 140 stores. Old Navy joined the ranks in the fourth quarter of 2007. There are 39 carts in the specialty leasing program, with additional kiosks added during the holidays. Another community-driven property also owned by General Growth is Meadows Mall, a two-level, enclosed regional shopping center anchored by Dillard's, JCPenney, Macy's, and Sears. In this 956,000-square-foot center, visitors will find a 1,600-square-foot children's play area, as well as 140 specialty shops. Meadows Mall is conveniently located on I-95 and across from the Springs Preserve, a newly opened 180-acre non-gaming cultural and historical attraction that is expected to increase the center's traffic. There are 37 carts in the specialty leasing program with a traditional mix of tenants, including Dead Sea products and jewelry. An additional five or six kiosks are added during the holiday season. The program has been expanded with the addition of eight carts over the last two years. Three outdoor carts were also added this past June, as a test in jump-starting customers' shopping experience before they hit the front door. Eight miles from the Strip, in Henderson, NV, a fast-growing city with an average household income of $80,000, lies the Galleria at Sunset, an enclosed, two-level, regional center owned by Forest Enterprises. "We don't get the brunt of tourism. We're a local driven mall, full of business professionals and young families," says Joe Snipes, assistant general manager and specialty leasing manager. The Galleria at Sunset has one million square feet of retail, anchored by Mervyns, Dillard's, JCPenney, Macy's, and Dick's Sporting Goods, as well as 140 specialty shops. There are 22 carts and eight kiosks in the specialty retail program, with an additional seven or eight kiosks added for the winter holidays. In 2008, four somewhat smaller units will be added to the program, offering retailers shorter license agreement terms than the standard six months. Let's make a deal: outlet shopping For both tourists and locals looking for a bargain, Vegas has plenty to offer. There are two outlet centers owned by Chelsea Property Group in the heart of Vegas: Las Vegas Premium Outlets and Las Vegas Outlet Center, which bookend the Strip at the north and south ends and are only eight miles apart. Both are located within close proximity to many of their major brand's full-price stores on the Strip. These centers capture domestic and international tourists, as well as the local population. Located in downtown Las Vegas, Las Vegas Premium Outlets is a one-level, open-air center in a village-type setting. Anchored by Anne Klein, Coach, Polo Ralph Lauren and many others, this center recently expanded from 435,000 to 539,000 square feet and now houses 150 stores. During this expansion, eight carts were added to the specialty leasing program to make a total of 33. Las Vegas Outlet Center is a one-level, enclosed center, located two miles southeast of the Strip and in close proximity to the airport, in an area developing at a rapid rate, notes Tony Muccigrosso, specialty leasing manager. There are 130 stores encompassing 477,000 square feet with anchors including Adidas, Calvin Klein, Coach, Timberland, and Tommy Hilfiger. In the specialty leasing program, there are 23 carts, 17 kiosks and six wall units. Also an outlet center, yet a bit farther out (36 miles south of the city) lies Fashion Outlets of Las Vegas, an enclosed, one-level center purchased by Talisman Companies in 2000. Attached to Primm Valley Resort & Casino, and situated off I-15, over which a reported one million vehicles travel each month, shoppers will find more than 100 designer outlets in 370,000 square feet with a cityscape interior built to be reminiscent of New York's Time Square and Florida's South Beach. Anchored by Neiman Marcus, Polo Ralph Lauren, Coach, and Nike, the center has a number of stores exclusive to the area, including Versace, and Hugo Boss. The specialty leasing program includes 23 carts and six kiosks. This past August, larger and more functional carts were added to the program. Las Vegas-themed gifts are a popular use, as well as high-end handbags, fine jewelry, and cosmetics and beauty products. Mixed-use makes its mark On the Southern end of the Strip lies the newly opened (Nov. '07), Town Square, owned by Turnberry Associates and Centra Properties, an open-air, super-regional lifestyle center in a downtown-setting, where customers can drive through the streets and park in front of their favorite stores. There are 22 separate buildings, a $3 million children's play area, a park and 1.5 million square feet of retail and office space (the vast majority is retail). Anchored by Robb & Stucky Interiors (high-end furniture), Borders, Whole Foods Market, 24-Hour Fitness, and Rave Motion Pictures (a state-of-the-art 18-screen theater), there are also 150 shops and 12 restaurants, "so there's a surprise around every corner," says General Manager Mike Wethington. "People come to spend an entire day here." The specialty leasing program's 19 carts are spread throughout the property. Town Square is a dog-friendly center, so what better place for a pet-accessories cart with live dog models dressed as such Vegas icons as Elvis? A cart leasing remote-controlled boats for children (and adults) to race across the park's pond is also popular. Because this is an open-air center, the carts have been designed for both the heat and sometimes-chilly nights in mind. Large canopies offer shade from the sun (Vegas averages 294 days of sunshine annually) and each has a heating element to keep the cart staff and shoppers warm when the desert chill descends. Another mixed-use development from General Growth Properties is scheduled to open in October 2009. Summerlin Centre, with more than 1 million square feet of open-air retail. Located approximately 12 miles from downtown Vegas, the property will serve Summerlin, a 22,500-acre master-planned community with nearly 95,000 residents. This 100-acre community hub will combine retail, dining, office space, a hotel and residences, all surrounding a series of grand public plazas to be known as Summerlin Square. Approximately 25 unique carts and kiosks are on the specialty leasing agenda. A winning combination Emerging out of the parched desert as an oasis of entertainment and shopping, Vegas draws visitors worldwide to its streetscapes, shopping malls and specialty retail programs. A bigger-than-life mix of excitement, adventure and bling, Vegas offers great odds for specialty retailers who want to be in the midst of huge crowds looking for ways to spend money.

Boost Your Capture Power

admin — Sat, 30 Jun 2007 22:00:00 -0700

What determines the success of one kiosk and the failure of another? At Envirosell, we've researched that question in depth for some of the leading kiosk-based retailers in the US. Using a combination of direct shopper observation, customer-intercept interviews and video recordings, we've studied the key factors that influence kiosk shopper behavior and how kiosk retailers might alter their operations to boost sales. The bottom line is that retailers who know how to take advantage of the roughly 550 people per hour passing their kiosk (based on average mall traffic on a weekend day) are those who will succeed and live on to multiply. Specifically, the kiosk retailer's ability to stop passing traffic, or "capture power," is crucial. Our research indicates that approximately 20 percent of all passing customers will notice a mall kiosk, or about 110 people per hour on an average weekend day. Roughly 15 percent of those who notice a kiosk will actually stop to shop—or about 16 customers per hour. Of the 15 percent who shop the kiosk, 25 percent will make a purchase, which translates into four purchasing customers per hour. Our experience has shown that a small increase in the percentage of customers noticing a kiosk can lead to a healthy increase in the location's bottom line. For example, if the percentage of passersby noticing a kiosk increased from 20 percent per hour to 30 percent per hour, then the number of purchasing customers would increase from four to six per hour. Getting noticed One of the best ways to increase the capture power of a kiosk is to emphasize how it looks from a distance. Mall customers walk at such a quick clip that it takes quite a bit to slow them down. Our research shows that it's important that the customer be able to tell what a kiosk is selling from at least 40 feet away. Considering the restrictions sometimes put on kiosk signage, getting noticed from a distance is often a challenge for the retailer. Kiosks that sell small items need to work on how the product itself can actually work as a sign. For example, a two-foot by two-foot blowup of a product's packaging can work effectively to project from a distance what is being sold. When allowed by mall regulations, kiosk retailers should put up as large and strongly noticeable signage as possible. Getting a passing customer to notice and stop does not start at the kiosk itself—it starts 40 feet away, from both directions. It's important to take a close look at the traffic flow on both sides of the kiosk, as well as the sightlines of the approaching customer. Not all mall traffic is the same. One side of the kiosk may receive much more passing traffic than the other. Product placement, and even employee placement, needs to be based on mall traffic flow and first-sight lines. If the first thing the customer sees when approaching the kiosk is the back of an employee sitting on a stool, then capture power will be "compromised." If a customer does not notice or does not comprehend from a distance what product is being sold at the kiosk, the customer just won't slow down or stop. The retailer can make all the fine adjustments to the product on the kiosk itself, but it won't matter if potential customers don't notice the kiosk in the first place. Landing the sales Of course, getting noticed from a distance is not the only factor that determines the success of a mall kiosk. Salesperson-assistance is key. Our studies have found that customer conversion rates at kiosks go from less than 10 percent to more than 40 percent when the customer is assisted by a salesperson. Product-accessibility also makes a difference. If product is displayed on multiple levels (shelves of varying heights) the product is much more easily shopped and therefore more likely to be purchased. The location of kiosks within the mall also matters. Some mall managers have started to measure the demographics (gender, age, etc.) of customers that visit each anchor store and have adjusted their kiosk locations accordingly, opting for kiosk clusters located near certain anchors instead of units spread throughout the mall concourse. Kiosks near Nordstrom sell different products than kiosks near Old Navy, for example. In recent years kiosks have made some headway being accepted by their larger retail neighbors, the permanent in-line stores and anchors, and rightly so since kiosks actually help draw attention to their neighbors' window displays. According to our research, window-shopping of stores adjacent to kiosk clusters is seven to nine percent higher than window-shopping at stores without nearby kiosks. In theory, in-line neighbors might consider nearby kiosks competitors for the shopper's attention, but in reality kiosks serve as speed bumps, getting the mall shoppers to slow down and take a look at in-line and anchor window displays as well as the kiosk displays. The future of kiosks is strong, and we hope our research helps you develop effective strategies for boosting your capture power and your bottom line. The growth of kiosk programs in malls will be steady and incremental, but the thinking behind kiosk design and placement is changing. Science and performance-accountability are quickly replacing opinion and guesswork.