Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/74664
and therefore difficult to link it to a spe- cific store," Groener said. The issue has been on the minds of landlords and retailers since the explo- sion of online sales began, though there has been no widespread push to change the definition of gross sales — yet. "The last several years have taught us that these types of issues and their financial implica- tions have to be worked out in a win-win quadrant and must be affordable, sustain- able and transparent for both parties," Lamy said. There has to be equilibrium so both sides can achieve their financial goals and share information, he says. The issue is growing more significant, and the industry needs to pay closer at- tention, says Owen Buckley, president of Kansas City, Mo.–based Lane4 Property Group. Stores are becoming like bill- boards in some respects, says Buckley, who offers representation services to /FXFTU 3FUBJM %FTUJOBUJPO $BOBEB T both landlords and tenants. "You hope [they] will influence the marketplace and make people react to your company and full line of products with them." A grow- ing number of retailers have been forced to counter the Amazon.com effect with their own in-store online programs. The challenge will be to find a flexible sales- accounting formula that retains the re- tailer's competitive edge yet still compen- sates the landlord for driving the foot traffic, Buckley says. Large retailers are also at work de- fining what constitutes a store-initiated sale. Walmart, whose online sales are just 1 percent of annual revenue, ac- cording to market researcher Kantar Re- tail, is trying to expand that by reward- ing employees who refer shoppers to Walmart.com whenever any merchan- dise is unavailable at the store. The re- tailer credits the purchases to the ledger of the store nearest the customer. About half the shoppers who buy on Walmart. com pick up the purchases at the store, according to the company. Creating a sustainable earning 7 million residents within Greater Toronto trade area Tourist hub for more than 10 million annual visitors .PSF UIBO B TIPQQJOH NBMM The Remington Centre JT B QMBDF UP NFFU QMBZ FYQMPSF BOE EJTDPWFS 5IF TJHOBUVSF BSDIJUFDUVSBM EFTJHO GFBUVSFT CSJHIU SFUBJM TQBDFT XIFSF WJTJUPST XJMM mOE BO FYDFQUJPOBM CSFBEUI PG SFUBJM PQUJPOT SBOHJOH GSPN FYDMVTJWF CPVUJRVFT UP HMPCBM SFUBJMFST .BOJDVSFE QSPNFOBEFT PQFO BJS BOE JOEPPS QFSGPSNBODF GBDJMJUJFT BOE B TJHOBUVSF OJHIU NBSLFU FOTVSF JUT QMBDF BT UIF DPSOFSTUPOF PG B UISJWJOH HSPXJOH DPNNVOJUZ BOE NBLF JU B NVTU TFF PO BOZ UPVSJTU T UP EP MJTU 5IF 3FNJOHUPO $FOUSF " MPDBM NFFUJOH QMBDF GPS B HMPCBM DPNNVOJUZ $POUBDU VT UPEBZ GPS NPSF EFUBJMT 905 940 6880 remingtoncentre.ca info@remingtoncentre.ca model has become a far more complex and costly undertaking these days be- cause of the necessity of accommodat- ing entertainment, events, residential components, gourmet food courts and a wide variety of service businesses at shopping centers, Groener says. "The principles of innovation are far from what property investors are used to," he said. "The time developers could sim- ply present a line of shops with a roof and make a profit is gone." Eventually, percentage rents may have to rise, as the relationship between retailer and land- lord shifts from supplier-client model to a form of broader partnership, he says. "The store space is rented to generate sales for the retailer in partnership with the landlord," Lamy said. "The store pays base minimum and percentage rent to use that square footage, so anything that happens in that space enters into the calculation." SCT 48 SCT / AUGUST 2012