Shopping Centers Today

DEC 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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54 S C T / D E C E M B E R 2 0 1 8 tional connection with their clients." Another approach hinges on per- suading retailers and product brands to give brick-and-mortar stores a try. Single-serve coffee brand Nespresso and breakfast food retailer Mymuesli now operate multiple stores across the SES Spar European Shopping Centers portfolio of about 30 owned and man- aged shopping centers in Austria, the Czech Republic, Croatia, Hungary, Italy and Slovenia, according to CEO Marcus Wild. "We communicated with Nespresso for quite a long time, and they always told us that they didn't really do brick-and-mortar stores," Wild said. "Once they did a pop-up store at Europark Salzburg [in Austria] in 2015, they were extremely satisfied. In the same way, Mymuesli really boosted their business when they made offline, brick-and-mortar stores." With half a million online shoppers per day, Nespresso uses its boutiques to court new customers by offering them what it bills as "the ultimate cof- fee experience." The boutiques, about 700 globally, give visitors the chance to taste and smell the coffees and to tinker with Nespresso machines. Wild also points to Zara Home, a spinoff of Spanish fast-fashion retailer Zara, as yet another brand that has moved from clicks to bricks. "Zara Home took a position in our centers, start- ing at Europark Salzburg in 2015, but before that, they were not present in Austria, aside from online," he said. Now that department stores have declined in the U.S. and Europe, many product brands are looking for new ways to reach shoppers in physical spaces, says Wild. Landlords can work with them to create concept stores, whether pop-up or permanent, at retail properties. The Red Bull store in Salzburg and the Nivea Haus in Hamburg, Germany, are among the examples. "Often what's happening is, brands are starting online businesses and then, to give them a home and authentic appeal, they're doing one, two or three stores," Wild said. "It's not expected that they will do a big chain. However, they're using brick- and-mortar as a medium, which is quite interesting." In its analysis, JLL found that nearly 75 percent of the clicks-to- bricks companies sold apparel and accessories. About half of them sold merchandise at high price points, and roughly a third fell into the midprice range. The typical clicks-to-bricks store measures about 2,800 square feet, according to the report. An intriguing question for the industry, observers say, is whether the clicks-to-bricks trend will continue its rapid growth pace in the coming years. Of particular interest are Amazon. com's next moves in real estate, according to Johnson. So far Amazon has embarked on a limited rollout of physical stores: As the name implies, A total of 74.3 percent of clicks-to-bricks retailers are apparel and accessory brands like Bonobos, UNTUCKit and BaubleBar. Half of all clicks-to-bricks retailers have high price points, like MM.LaFleur and Pelonton, whereas 32.0 percent are midpriced retailers like Mod CLoth and Chubbies MOST CLICKS-TO-BRICKS RETAILERS SELL APPAREL AND ACCESSORIES HIGH, 50.0% APPAREL & ACCESSORIES, 74.3% FURNICURE, HOME FURNISHINGS & HOUSEWARES, 11.4% CONSUMER ELECTRONICS, 2.9% COSMETIC/BEAUTY, 5.7% SPECIALTY/ OTHER, 5.7% MIDDLE, 32.0% LUXURY LITE, 11.0% LOW/ DISCOUNT, 7.0% LUXURY, 7.0% Source: JLL Research

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