Optimiz izing Re Retail Re Recruit itment - - PowerPoint PPT Presentation

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Optimiz izing Re Retail Re Recruit itment - - PowerPoint PPT Presentation

May 01, 2023 30 likes •622 views

Retail Strategies Optimiz izing Re Retail Re Recruit itment info@retailstrategies.com 2200 Magnolia Ave, Suite 100 (205) 314-0386 Birmingham, AL 2 Who We Area Matt Petro Chief Development Officer matt@retailstrategies.com (205)

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Optimiz izing Re Retail Re Recruit itment

Retail Strategies

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Who We Area

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Matt Petro

Chief Development Officer matt@retailstrategies.com (205) 427-7030

As Chief Development Officer, Matt Petro works with elected and city officials to make a positive impact on communities nationwide. His primary focus is understanding the needs of communities and providing solutions that help them achieve their goals.

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Our Services

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Partnered with 200 communities nationwide

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Our Services

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  • Extension of City Hall
  • Tools – Data, Analytics, Retail Recruitment Plan
  • Team – Real Estate Expertise & Connections
  • Man Power – Calls, Emails, Tradeshow Representation
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Our Services

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  • Revitalizing & Rejuvenating Downtowns
  • The Next Step in Your Downtown’s Journey
  • Assess the 5 Pillars of Main Street
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Our Services

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  • Empowering Communities
  • Tools – Data, Analytics, Retail Recruitment Plan
  • Education – Best Practices
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

  • What’s Going on In Retail?
  • Retail Expansion Process
  • Retail Recruitment Best Practices

Agenda

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail = Revenue Retail = Jobs Retail = Quality of Life

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Technology Trends

13 products advertised by Radio Shack in 1991 $3,055 in 1991 $6,000+ Today

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Technology Trends

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VS

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

E-Commerce

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Roughly 19% of Retail Sales are Online

High Online Purchases

  • Electronics & Appliance
  • Apparel
  • Home & Sporting Goods

Low Online Purchases

  • Food (Grocery & Restaurant)
  • Automotive
  • Home Improvement
  • Personal Care

Source: IHL Group

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

convenience experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Decline

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Growth

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Closures and Openings

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Net Openings vs Closings Openings Closings Net Change 2017 Actuals 18,532

  • 14,404

4,128 2018 Actuals 21,213

  • 19,731

1,482 2019 Estimates 11,393

  • 8,428

2,965 Net Increase In Stores 51,138

  • 42,563

8,575

Source: IHL Group

  • Includes 1,660+ retailers and restaurants that are public and private in our Sophia system
  • Threshold for this study is 50 locations
  • Sources include SEC and SEDAR filings, websites, presentations, press releases, phone

conversations w/corporate, industry compilations, etc.

  • All of the news out there (from other research houses) is based only on large public retailers through

7/31/19

  • Detailed list of retailers and opens and closings is available here.
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Growth

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Source: Lee Holman & Greg Buzek, IHL Group, “Debunking the Retail Apocalypse, August 2017

Segment Net Store Growth

Food/Supermarkets 383 Drug Stores 480 Superstores/WH Clubs 38 Department Stores

  • 301

Specialty Hardgoods 1,668 Specialty Softgoods

  • 3,728

Mass Merchandisers 659 Convenience Stores 855 Bar / Restaurants 2,911

+2,965 Net Stores Opening

2017 - 2019 Openings Closings Net Change All Other Segments 46,501

  • 28,275

+18,226 Softgoods and Dept. Stores 4,637

  • 14,288
  • 9,651
  • ------------------------------------- Mall Based Stores Are Struggling ----------------------------------
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Growth

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Every 5 Hours in America a New Dollar Store Opens.

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Restaurant Consumer Trends

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  • Selfie Age
  • Control Our Time
  • Looking for an Experience
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Restaurant Decline

TOP 20 BY NUMBER OF CLOSINGS 20 Net Loss = -1,893 for 20 brands New Units = + 3,225 for 20 Brands

Previously Shown Brands

Rank Chain Net Loss 1 Subway

  • 836

2 Pizza Hut

  • 167

3 McDonald's

  • 119

4 Applebee's Neighborhood Grill & Bar

  • 76

5 Church's Chicken

  • 61

6 Joe's Crab Shack

  • 60

7 Sam's Cafe (Walmart stores)

  • 59

8 KFC

  • 58

9 Papa Murphy's Take 'N' Bake Pizza

  • 54

10 Dairy Queen

  • 52

11 Noodles & Company

  • 52

12 Tim Hortons

  • 50

13 Bruegger's Bagels

  • 41

14 Romano's Macaroni Grill

  • 37

15 Long John Silver's

  • 33

16 TGI Fridays

  • 31

17 Pollo Tropical

  • 31

18 Bob Evans Restaurants

  • 28

19 Famous Dave's

  • 27

20 Ruby Tuesday

  • 21
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Restaurant Decline

TOP 20 BY NUMBER OF CLOSINGS 20

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Growth

FAST CASUAL GROWING BRANDS 21

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Growth

QUICK SERVICE RESTAURANT (QSR) GROWING BRANDS 22

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Growth

QUICK SERVICE RESTAURANT (QSR) GROWING BRANDS 22

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience & Experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Convenience

PICK UP LANES + ORDER FOOD & DRINKS AHEAD 30

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

convenience experience

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

5% of Consumers Make a Purchase After Browsing and Online Store 20% of Consumers Make a Purchase After Browsing a Physical Store

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

  • Two Ways to Get Your Money Back
  • Credit Card or Bank Account Balance Isn’t Reimbursed Until…..
  • Credit Card or Bank Account Immediately Reimbursed and…

Returns?

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  • r
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

  • You are in their store. Full of Deals!

Returns?

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

retail is not dying it’s changing

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

RETAIL EXPANSION

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Retail Timeline

HOW RETAILERS EXPAND 32

Retailer Drives the Decision Small percentage of proposed sites equal new openings Long Process

It’s all about PROFIT!

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Homerun Real Estate

HOW RETAILERS EXPAND 33

Convenience High visibility / Strong signage High Traffic counts Excellent Access Ample Parking

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Site Selection Criteria

HOW RETAILERS EXPAND 34

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Selecting Target Markets

HOW RETAILERS EXPAND 35

  • Retailer Identified Areas of

Expansion

  • Corporate/Franchisee

Driven Geographical Expansion

  • Broker Suggested Markets
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Selecting Target Markets

HOW RETAILERS EXPAND 36

  • Where do they want to be in the

market?

  • Where is their target customer?
  • How close is their nearest

location?

  • How does their comparable

perform in the market?

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Analyzing Target Markets

HOW RETAILERS EXPAND 37

  • Growing, Stable, Shrinking
  • Competition Within Market
  • Sales Volumes
  • Planned New Developments
  • Growth Segments of Market
  • Market Pricing Expectations
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Locating Available Sites

HOW RETAILERS EXPAND 38

  • Driving The Market
  • Loopnet, Costar, etc
  • Local Brokerage Firms
  • Google Earth
  • GIS Maps
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Qualifying Sites

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  • Availability
  • Purchase/Lease
  • Exclusives/Restrictions
  • Size
  • Can it be Sub-divided?
  • Access
  • Ingress/Egress
  • Signalized Entrances
  • Traffic Counts
  • Within Budget?
  • Demographics
  • Going Work/Going Home
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Prepare Site Tour Package

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  • Asking Price
  • Demographics
  • Population
  • Median Household Income
  • Racial Makeup
  • Zoning
  • Traffic Counts
  • Available Utilities
  • Environmental
  • Gas Station/Cleaners?
  • Survey
  • Aerial Maps
  • Full Trade Area Aerial Map
  • Zoomed in Site Aerial Map
  • Major Retailers Labeled
  • Competition Labeled
  • Traffic Counts
  • Traffic Lights
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Sample Retail Area Map

HOW RETAILERS EXPAND 41

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Letter of Intent (LOI)

HOW RETAILERS EXPAND 42

  • What exactly is an LOI?
  • Rent
  • Co-tenancy
  • Exclusive
  • Early Termination Clause
  • Tenant Allowance or Free Rent
  • Work Letter
  • Retailer’s Standard LOI/Lease Form
  • Negotiate basic deal terms in the LOI
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Real Estate Committee

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  • Site Presented to Retailer REC for Formal Approval
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Site Approval

HOW RETAILERS EXPAND 44

  • The LOI is negotiated and executed by the Retailer and Property Owner
  • Lease Negotiations Process can be lengthy…a few months to a few years
  • During Lease Negotiations or once negotiated, the construction team will

begin plan process and obtaining necessary approvals (due diligence) Due Diligence

  • Survey
  • Geotech
  • Engineer/Architect
  • City Codes
  • Permits
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Lease Signed & Construction Begins

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  • Retailer’s do not want to share the news until a lease is FULLY executed
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Opening Day

HOW RETAILERS EXPAND 46

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Do Your Homework

RECRUITMENT TOOLS 49

  • Know your retail trade area
  • Know how to communicate the fabric of your community
  • Know the best properties in your community and keep inventory
  • Know who you are contacting and what they need
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Know Your Trade Area

RECRUITMENT TOOLS 50

Your Trade Area is Not Your City Limits! Population: 15,025 Population: 50,000+

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Know Your Trade Area

RECRUITMENT TOOLS 50

Understand a Core Trade Area Versus a Secondary Trade Area Milk & Bread Steakhouse

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Be Business Friendly

RECRUITMENT TOOLS 53

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

RECRUITMENT TOOLS 55

Know the Sides of the Road

PM AM

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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Conclusion

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  • Retail isn’t dying, it’s evolving!
  • Retail recruitment is a marathon, not a sprint!
  • Be proactive!
  • Take advantage of resources within your reach!
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info@retailstrategies.com (205) 314-0386 2200 Magnolia Ave, Suite 100 Birmingham, AL

Tha hank You! u! Matt Petro

Chief Development Officer matt@retailstrategies.com (205) 427-7030