35 – Avoid Retail Disaster by Using the CORRECT Supply Vs Demand formula: GAP Analysis Revisited

Hello, and welcome to Episode 35 of the Corporate Real Estate Podcast, brought to you by LeaseSmart.com. Your host is Craig Melby, the founder of LeaseSmart, whose objective is to find companies the best facilities and get them the best terms, making their business more profitable and less vulnerable to future, unpredictable circumstances.

Today Craig welcomes back special guest Nick Egelanian with SiteWorks Retail. Nick Egelanian does lots of site selection for the retail industry and site analysis. As we’re talking about the retail industry, Nick is confirming that the information that we are getting from the demographic reporting companies, the government and all of the sources out there, is right. Rather it’s that a portion of the application of that information is wrong.

Craig Melby and Nick Egelanian discuss big retail centers and the presence of department stores in malls and there is a lot of evolution happening in malls today.

What is the retail insight into Disneyland? This is a fantastic question for business owners to consider.

What is necessary in order to have a successful specialty center today? You must produce a place that is best-in-class place-wise; best-in-class merchandise-wise; a place that, in the market you’re in, will motivate the shopper to shift their consumption patterns and spend their discretionary income in your shopping center. And, that is going to be different in every case depending on your market.

What is the validity of gap analysis? Nick Egelanian says there’s no longer a formula. There is more of an art to it. Just think about it: What do people do on vacation? How do they spend their time and money? City planning is part art and part science and Retail is a huge part of that. Thanks for listening!

Nick Egelanian may be reached at:
(301) 922-4466
siteworksretail (DOT) com

Links:
For more information, be sure to visit LeaseSmart.com

34 – Disruptive Retail: Commodity Vs Specialty and How to Benefit From Modern Trends

Hello, and welcome to Episode 034 of the Corporate Real Estate Podcast, brought to you by LeaseSmart.com. Your host is Craig Melby, the founder of LeaseSmart, whose objective is to find companies the best facilities and get them the best terms, making their business more profitable and less vulnerable to future, unpredictable circumstances.

Today Craig welcomes special guest Nick Egelanian with SiteWorks Retail. He is a Strategic Real Estate Consultant with offices in Annapolis, Maryland and London. This is a fascinating interview covering the history and future department stores. He looks at the big picture of what’s going on in the world today.

There is a new model of outlet center leading us away from typical malls. It has been successful in Boston and other locations and it is due to this Post Department Store Era we find ourselves in. Why is this happening? Well, if we look back to the 50s and 60s, the Department Store Era was born out of people needing to buy things daily at the general store. It affected our culture so much that even the roads were laid out for such purposes and that all worked very well. Building the foundation for malls and big box stores where low prices are king.

Fast forward to 2016 and today the department store industry does 72 billion in sales.
Target alone is a 75 billion dollar company. And, Walmart is 500 billion dollar company. The Retail delivery portion of Amazon is 85 billion. Each of these companies is exceeding the total volume done by all department stores. Nordstrom has not been adding net stores for 5 years now. In the last 2 years Nordstrom has closed 2 stores including in San Diego and Orlando. In the Wall Street Journal on July 11th, there was an article about this very mall.

Do department stores have any hope to evolve and survive? Nick Egelanian believes their future is dependent on them repurposing. He predicts that we’ll go from 3000 to only about 200 malls left in the end. Department stores will have little to do with malls’ sticking around. In the 90s, a mall’s ability to get a Nordstrom was the key factor to their success, but not any more. What matters now is experience. People want the experience of eating good food, buying clothes and finding entertainment. Malls are going to have to refocus around “Experience Stores.” Thanks for tuning in!

Links:
For more information, be sure to visit LeaseSmart.com

Nick Egelanian may be reached at:
(301) 922-4466
siteworksretail (DOT) com