shopping centre confernce presentation final
TRANSCRIPT
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Shopping Centre ConferenceCommercialisation Presentation22nd March 2011
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Presentation Overview
Lewis Commercialisation
Presentation Topic
Key Considerations
What is Commercialisation?
Commercialisation: Background
Commercialisation: Today
Shopping Centre Managers – A Balancing Game
Retailer – Key Issues
BCSC/PMA Commercialisation Guide
Case Study: Comparison Australia and the UK
Questions
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Lewis Commercialisation
,. Lewis Commercialisation works in partnership with major property owners, brands and service providers across the EMEA region.
Vision to deliver best in class commercialisation solutions, sustainable revenue streams that are aligned to corporate and/or asset and property management objectives.
Currently engaged with Shopping Centre assets with a value in excess of £5,000,000,000.
We have generated £14,000,000 of income streams for our clients equating to £175,000,000 in asset value.
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Presentation Topic
“Commercialisation revenue is now essential to any centre’s financial performance, but many operators are still struggling to manage it in a way that does not detract from in-line tenants”.
How should managers strike a balance between the two?
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Key Considerations
Alignment to Asset and Property Management Strategy
The key is to strike to correct balance with:
• Retailers
• Customers
• Owner/s
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What is Commercialisation?
• Specialty Leasing
• Advertising
• Brand Experience, Promotions and Corporate Partners
• General Income – over 40 different income opportunities
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Specialty Leasing
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Advertising
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Brand Experience, Promotions and Corporate Partners
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Brand Experience, Promotions and Corporate Partners
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General Income – over 40 different income opportunities
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UK Commercialisation: Background
•In 2001 commercialisation……
•Income to owners circa £10,000,000
•No major landlord or top 10 shopping centre had a commercialisation strategy
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Commercialisation: Background 2001
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UK Commercialisation: Today
•In 2010 commercialisation……
•Billion pound industry, income to Shopping Centre owners circa £300,000,000
•Major landlords and top 10 shopping centres have commercialisation strategy
•Thriving industry employing thousands of people
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Shopping Centre Managers – A Balancing Game
Key objective:
• Alignment to Asset and Property Management Strategy
To do this you must strike the correct balance with:
• Retailers• Customers• Owner/s
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The Retailer – Key Issues
Research has shown that the three key issues from a retailers perspective are:
•Sightlines•Competition•Disruption to store access
The BCSC and the PMA completed an extensive commercialisation research project
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BCSC/PMA Commercialisation Guide
“The key finding of this study is that a successful commercialisation strategy can benefit all stakeholders – centre managers and managers, retailers and shoppers.”
Source: BCSC/PMA Commercialisation Research Project 2009 (p.4)
Comprehensive study, 50 page report, collaboration of numerous industry stakeholders, 10 key points.
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BCSC/PMA Commercialisation Guide
Create a commercialisation strategy – optimise or maximise?
Communicate strategy to retailers
Protect sightlines and safeguard pedestrian flows to stores
Managing risk
Professional behaviour
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BCSC/PMA Commercialisation Guide
Conduct Research to demonstrate the benefits of commercialisation
Involve permanent retailers
Include commercialisation in the service charge matrix
Recognise where you need the help of professionals
Quality Control
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Case Study: Commercialisation Comparison Between Australia & United
Kingdom
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Australian Shopping Centre Background and History
•Started rapid growth in 1960’s
•Geography and urban sprawl required this
•Limited high street influence
•Wide & spacious malls as land not usually an issue
•Commercialisation developed in the 1980’s
•By 2000 transition complete - market mature
•Still evolves with industry trends such as Brand Experience
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Case Study: Comparison Australia & United Kingdom
WestfieldMiranda Australia Fashion Show
Sponsored by:
MasterCard &Ford
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Case Study: Comparison Australia & United Kingdom
Australia’s largest Telecoms company Telstra has embraced Specialty Leasing
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Case Study: Comparison Australia & United Kingdom
•The UK is world renowned for its High Street retailing and Markets
•Gradual introduction of shopping centre model since the 1970’s
•Shopping centres built before the late 1990’s were not designed with commercialisation initiatives in mind
•Width of common areas has increased from 8 metres to 12 – 16 metres
•Large out of town and city centre shopping centres recent development
• Main stream commercialisation first introduced around 2000
• Led predominately by Australian developers and international influence
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Case Study: Comparison Australia & United Kingdom
Bluewater:
Generally accepted fact that Bluewater pioneered commercialisation in UK
Introduced RMU concept to the UKImplemented advertising formats that brands wanted to buyLand Rover, Coke partnerships and other initiatives
Westfield London
The first UK Shopping Centre to truly integrate commercialisation at the design and development stage:
Best practice in many ways; kiosk design, income, qualityCommercialisation looks like it was meant to be there – not add-onFollowed Australian model and enhances customer experienceCommon areas designed for commercialisation with malls being 16 metres wide
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Integrated into all areas of shopping centre management
Development of metrics to prove return on investment for brands
Core part of asset and property management
Aligned to overall needs of stakeholders
Development of consumer databases/CRM – Minority Report
The Future
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THANK YOU
Hope You Have Questions for our Panel of Experts!
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