Welcome to ICSC’s RECon event here in Las Vegas! If you are one of the 40,000 or so individuals here, you might have attended last night’s opening reception (as we did) at Encore XS Nightclub (or one of many other parties happening around the strip).
No matter how you are spending you first night at RECon, it is clear that deals and networking don’t just happen on the show floor, they happen after hours as well. To prepare for the event, we got a few retail thoughts from some of the experts in attendance.
Dan Hoogesteger, managing director of Sands Investment Group’s West Coast headquarters, tells GlobeSt.com that there is some concern for soft goods retailers and certain categories of big box. “People are sticking to categories that they feel are safe and Amazon proof.”
Vicky Hammond, VP at Coreland Cos. and incoming ICSC Southern California operations chair.
Vicky Hammond, VP at Coreland Cos. and incoming ICSC Southern California operations chair, tells GlobeSt.com that RECon is an important forum for her teams. “It is an opportunity to gauge mid-year progress and determine the strength of the market. We are looking forward to connecting with several of our industry colleagues, from investors to retailers, to better understand market conditions. At the end of the day, our industry is based on fostering relationships and RECon is a key driver.”
When asked about how this conference will be different than in past years, she tells us that this year, the conference will feature an innovation exchange that will provide hands-on access to next-generation retail concepts. “Security robots, virtual dressing rooms and all types of A.I. integration. I think this adds an exciting new element to the vent and pushes each of us to think beyond out day-to-day responsibilities.”
In looking at how the industry has changed in the past 12 months, Brandon Duff, regional director with Stan Johnson Co., tells GlobeSt.com that for the better part of a century, the retail industry has been a dynamic and ever-changing industry. “Currently, we continue to see a shift as retailers are adapting not only due to e-commerce competition, which only makes up approximately 10% of all retail sales nationwide, but also consumer demographic shifts, retail industry maturity, department store obsolescence, and growing popularity of the customer “experiential” retail model.”
From an investment sales perspective, Duff says that investors are placing an increasing emphasis on location, residual value, and unit level performance when discussing the value drivers of a certain property. “Transactional velocity of retail product was down about 15 percent year-over-year at the end of 2017, yet there continues to be strong investor demand for certain product types such as grocery, entertainment, and service-based retailers, especially as the private investor has become the fastest growing buyer pool in the trailing 12-24 months.”
We also caught up with Heather Danko, president and CEO of Olivia and Rose & Associates, who says that there are several trends she is following and monitoring. “This includes the industry’s ability to track consumer travel, including where they shop (before and after visiting a specific center), and if they travel from home or work. Virtual reality and augmented reality are also two trends that are gaining attention as well as autonomous vehicles, 3D Printing-Contour Crafting for future development, robotics and drone delivery.”
Today, she says, there is more interest in and investment towards future enhancements to centers’ parking and common areas. These enhancements include mixed use, experiential entertainment. There is also focus on technology, customer journey and experience.”
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