The Retail Market Is SHIFTING Again - Who Is Winning, Who Is Losing ?

What separates business winners from losers in today’s new e-commerce culture ?

A lot of pundits would say you need to be efficient, cost conscious and manage margins. Others would say you need to be really good (excellent) at something – much better than anyone else. Unfortunately, that sounds good but in our fast-paced, highly competitive world today those platitudes don’t really create winners.  Success has much more to do with the ability to shift.  And to create shift.  Quoted from “Winners Shift, Losers Don't” (see article).

As an example, Amazon’s current annualized sales are now $39 billion, rising 38% annually, of which 40% ($15.6 billion) came from Third Party Sellers in their Marketplace (see "Third Party Sellers” here). 

However, Amazon’s Marketplace of Third Part Sellers didn’t exist 10 years ago, thus demonstrating the undeniable power of e-commerce Market Shifting – taking the lead ahead of anyone else. 

Today, eBay, Walmart, Sears and others are all copying Amazon’s Third Party Seller program for competitive reasons.  However, these copycats are not Market Shifters as they didn’t change anything (other than perhaps their companies into a more competitive position).  The net-net of this Major Market Shift are a few early winners and many late-to-arrive losers.

Another terrific example of Market Shifting is by Walmart, who intends to become the world’s largest online retailer surpassing Amazon, with their “Project Titan’s Next-Day Delivery. (see MOST CURRENT Articles #1  and  #2 ). This improves on Amazon’s 3 to 10 day delivery and at lower delivery costs.  

Tommy Lasorda said: “There are three types of baseball players: those who make it happen, those who watch it happen, and those who wonder what happens.”

You can watch what happens with “The Battle Of The Titans” while trying to expand your market share, same as your competitors are doing (see GREAT article) – OR – make it happen by Market Shifting with new platforms to spike your growth as The Titans are doing.   

You certainly will not take market share from Walmart or Amazon doing the “Same-Old-Thing” – quite the opposite.  Even matching The Titans won’t cut it anymore.

Let Us Help You Create Your “SuperCyberCenter^©” – The Next Major E-Commerce Innovation Shift

For the Top 500 chain retailers, in-store retail sales are marginally up while online sales are now 10% to 30% of total sales.  (see article)

If your current sales are not at least equal to either of the above averages, you need a Market Shift:   maintaining your core business;  while shifting to new platforms with quickly changing consumer preferences.  "Times have changed forever.  Trends are NOT like the shadows of yesterday." (Quote by Robert Taylor)  It’s essential to shift to new platforms quickly with today’s trends or become irrelevant.

And forecasting future online sales over the average growth rate of 11.3% annually (see above article) is downright dangerous without making a significant Market Shift.

Here’s How To Market Shift with Your “SuperCyberCenter”:

ADD 15% to 20% of sales from other LOCAL retailers, restaurants, pharmacies & grocers (Third Party Sellers) to your existing in-store sales (as The Titans are doing) with a SuperCyberCenter = 40% additional sales & 79% added profits including your 15% ROOF (Rapid Online Order Fulfillment) in-store sales – WITH HIGHER PROFITS.

Shift your overall strategy to easier achieved platforms as many of these LOCAL retailers do not yet have e-commerce capability but know they need it.  Why struggle with underperforming e-commerce fulfillment platforms when easier, more profitable trends are right in front of you.

“Too often business leaders spend too much time thinking about what they do.  They think about costs, margins, the “business model” and execution.  But success really has less to do with those things than understanding trends, and capitalizing on those trends by shifting. You don’t have to be the lowest cost, or most efficient or even the most passionate.  What works a lot better is to go where the trends are favorable, and give customers solutions that align with the trends. And if you do this early, before anyone else, you’ll have a lot of time to figure out how to make money before competitors try to cut your margins!”

“Recognize that most “execution” is about preserving what happened in the past.  Trying to do things better, faster and cheaper.  But in a rapidly changing world, new competitors change the basis of competition.” 

“For investors, employees and suppliers you are better off to be with the company that shifts.  It has the ability to grow with the trends.  And the faster you get out of those companies which are stuck, locked-in to their old business model and practices in an effort to defend historical behaviors, the better off you’ll be.  Despite the P/E multiples, or other claims of “value investing,” to succeed you’re a lot better off with the company that’s finding and building on trends than the ones managing costs.”  Quoted from “Winners Shift, Losers Don't” (see article). 

Your new SuperCyberCenter sales are assembled, paid for as we leave the store and delivered by our professional CyberValet^® Shoppers from all your Third Party Sellers usually in less than 1-Hour  24 / 7 / 365 at the same (or less) price than in-store prices.  And delivery can be FREE.  Collectively, these are the reasons why the other LOCAL stores will participate with you, INSTEAD OF THE TITANS, as NONE of The Titans can offer them any of these significant SuperCyberCenter features, making SuperCyberCenters uniquely different than “Marketplaces”.  AND, your high profile nationally-branded stores are the “BEACON” to drive in local online consumers (bringing even more traffic to you from your Third Party Sellers’ myriad and loyal local customers.)

AND it’s 100% turnkey – We do it all.

Let your customers know about your SuperCyberCenter’s 1-Hour In-Store Shopping & Delivery program – they will be delighted to participate because their needs are so great and SuperCyberCenters uniquely offer other important local stores and restaurants “When You Just Can’t Get out, Or Have Better Things To Do ®”  Your LOCAL Third Party Sellers will willingly do the same promotions.

Neither Walmart nor Amazon can match, let alone beat, your SuperCyberCenter.  (It’s patented.)  And it complements & significantly enhances your current Online & In-Store platforms.

Your SuperCyberCenter is the difference between being relevant, or becoming irrelevant, in today’s new e-commerce culture.  However most staff members prefer the “Same-Old-Thing” because it’s job security – no risk – nothing unknown/new.  Only rising star staff members have the chutzpah to recommend such reasonable initiatives as Market Shifting and SuperCyberCenters.

If 40% sales increase with 79% higher profits is of interest, let’s discuss the feasibility of your company adding a SuperCyberCenter (or, in the least, joining one).

Thank you,

Gail

Walmart Just Beat Everyone Out Of The Gate AGAIN

IMPORTANT E-COMMERCE NEWS UPDATE

In our last blog post dated April 19 (below), Wal-Mart said their Next-Day Delivery Program was not yet approved, so we felt you had a 90+ day window to become prepared.  Well, thanks to their purposeful misinformation, we were wrong !

On Saturday, April 24, Wal-Mart opened “Walmart To Go” (see Article) starting with NEXT-DAY delivery of groceries in San Jose, California as part of their “Project Titan” (see Article); same as they have been doing in the UK, Mexico and Japan.

This is Super Bad News for Amazon, Safeway, Peapod and your local grocers.  BUT THAT’S JUST THE START OF THIS E-COMMERCE RETAIL REVOLUTION.  After all, Wal-Mart now needs to grow $14 BILLION every year just to stay relevant.  And their new market share has to come from someone else…. like you. 

Can you foresee when everything is delivered by Walmart from their local retail complex with no other local competing stores existing ?  Well, they can.

Wal-Mart has repeatedly stated that “Project Titan” is the beginning of Wal-Mart’s push to become the lead e-commerce retailer worldwide (see Article).  But when you look at the retail landscape objectively, Wal-Mart’s  “Pick Up Today”  and  “Walmart To Go”  offer high consumer convenience that not only increases Wal-Mart’s ONLINE business but takes customers away from competing local stores with Wal-Mart’s significantly lower prices and much higher service levels.  

Wal-Mart just eliminated the consumer’s need to navigate traffic, long cashier line-ups and miles of walking in stores: when they could be golfing, at the ball game or enjoying their family !  Smart People – Wal-Mart recognized and acted upon the obvious consumer needs and wants as well as offset the various problems people experience in shopping at Walmart stores.  And, Wal-Mart’s low in-store prices apply for delivery – approximately 27% less than regular supermarket prices.

NOW THAT’S TOUGH TO BEAT – And of course they planned it this way and are looking for as much lead time as they can get by telling you it’s only a test and only groceries.  BUT THEY ARE ALREADY DELIVERING THEIR ENTIRE RETAIL PRODUCT RANGE IN THE UK, MEXICO AND JAPAN.  So, Walmart To Go is no test and it’s not just groceries in the long run.

HERE’S THE GOOD NEWS – While we had hoped you might beat Wal-Mart “Out-Of-The-Gate” and take the lead position with our patented Rapid Online Order Fulfillment (ROOF) program;  Wal-Mart has demonstrated the future of retail clearly is in Rapid Home Delivery as they did in the UK, Mexico, Japan and now the U.S. 

This Leads You To Two New Opportunities:

1.     Visionary retail leaders will seize the opportunity to improve on Project Titan’s initiatives and become the industry leaders by eclipsing Walmart’s Same-Day Pick Up and Next-Day Delivery with ROOF 1-Hour In-Store Shopping and Delivery, which even Wal-Mart cannot beat. And Wal-Mart probably won’t try to match ROOF for some time to come, thus allowing you to grasp the lead time they were counting on to establish market dominance.

Before Wal-mart opened the Rapid Home Delivery program door thus trouncing the current 3 – 10 day e-commerce common practice, retailers were content with the status quo.  And, as Wal-Mart hopes and expects, these retailers will ignore Walmart To-Go and Wal-Mart's Project Titan initiatives once again, until it is too late. 

2.      Implement a ROOF SuperCyberCenter^© (i.e. Virtual SuperCenter = Walmart and Virtual Marketplaces = Amazon and others).  This is a huge new way to leverage ALL your current assets – tangible and intangible - and earn additional profit from participating stores.  

For example, most local and regional grocery stores have completely ignored Home Delivery as Wal-Mart Supercenters began significantly stealing their in-store sales in the late 90’s.  Now, with “Walmart To Go”, they have a major incentive to join your ROOF SuperCyberCenter© – a competitive Rapid Online Order Fulfillment (ROOF) local area consortium in a SuperCyberCenter format, thereby further increasing your sales and profits both in your stores and through their online sales in your ROOF SuperCyberCenters, which are greater in consumer scope than Walmart’s Project Titan.

Due to the now proven importance to Wal-Mart’s future growth of their “Project Titan”, we hope we can start ROOF with you ASAP so as to steal Project Titan’s thunder in the Media.

Thank you,

Gail

Internet Titans Are Changing E-Commerce Rules

Wal-Mart, in order to become the world’s largest ONLINE retailer has started The Internet “Battle Of The Titans” against Amazon, eBay, Target and others. (See Article)

To do this quickly, Wal-Mart is changing the rules of the e-commerce industry by stepping up speed of delivery from 3 to 10 business days to “Same-Day and Next-Day” that none of Amazon, eBay nor Target (nor anyone else) can realistically match in order to gain overall market share. 

This leaves Bricks-N-Clicks retailers in a fight they can’t win if they continue to use their current, more expensive, e-commerce 3 to 10 Business-Day delivery, thus creating a new wave of “The Living Dead” similar to Borders, Circuit City, Blockbuster, Linens-n-Things  and Office Depot.

Wal-Mart plans to have their online “Pick Up Today” program in all their Supercenters nationwide within 90 days. (See Article)  Next, they “are considering” entering the “ONLINE Next-Day Delivery” arena with their “Project Titan” as they are already doing in the U.K., Mexico and Japan, (See Article) thus setting new industry standards everyone else must follow (if they can) or die. 

Competing with “Project Titan’s” massive number of local Wal-Mart stores, huge local inventories and purchasing power will require Bricks-N-Clicks retailers to immediately adopt a new Space Age strategy.

Unfortunately, their current e-commerce distribution systems cannot help Bricks-N-Clicks retailers in the “Same-Day and Next-Day” Battle of the Titans for control of the now powerful retail e-commerce industry, leaving them as the net loser, as these Titans have done many times before. 

Smaller players need to beware.  This is a new industry, with new rules of pricing and customer convenience, way outside the scope and experience of in-house experts or normal retail consultants. 

Single-line Bricks-N-Clicks retailers competing against these multi-line Supercenters and “Marketplace” Titans will no longer attract the traffic needed for significant future growth when consumer demands for further improved selection and convenience are considered.

Inevitably, the ranks of “The Living Dead” will increase for those who cannot adapt quickly.

BUT…There Is A Solution These Titans Cannot Match

ROOF (Rapid Online Order Fulfillment):  In-Store shopping and delivery usually in less than 1-Hour, 24 / 7 / 365 AT DELIVERED PRICES LESS THAN IN-STORE PRICES.  And, it’s 100% turnkey.  ROOF provides a much higher level of service than FedEx, UPS and USPS and is easier to use and at less cost WITH A FULL ARRAY OF TOP LOCAL RETAIL STORES, RESTAURANTS, PHARMACIES & GROCERS, thus outmaneuvering any Supercenter or Marketplace.

ROOF implementation is less costly, easier and more profitable than regular e-commerce methods.  PLUS, ROOF drives more retail sales through your local stores’ cash registers while increasing customer loyalty with Space Age Delivered In A Flash^® service.

Simply stated: As in-store sales across the board continue to falter and online sales sky-rocket, doing the “Same-Old-Thing” against “Project Titan” will lead to further decreasing online sales, more store closings and significant job losses.

There can be no question what the consumer wants and where “Project Titan” is trying to go. (See chart below)

None of these Titans have ROOF’s powerful and patented system and marketing tools.  Be there first to capture the consumers’ hearts and minds  – install your ROOF system now to prevent the Internet Titans from luring away your In-Store and Online customers with “Same-Day and Next-Day” service as they intend to do within the next few months. 

The only risk you have is in doing nothing.

Our brief online slide presentation can be viewed here.   (NOTE:  Our ROOF website is ‘live’ in zip 33180 for demonstration purposes and can be reconfigured to meet your requirements.)

Please let me know a convenient time to discuss your participation.

P.S.  For even greater increased revenue and sales, ask about joining our SuperCyberCenters^©.

Thank you,

Gail

Gail W. Nichols  - Vice Chair

Retailers count on gift cards to shore up their January sales

Did you buy or receive a gift card recently?

In a post-holiday survey by ICSC (International Council of Shopping Centers) consumers said 14.5% of their total holiday gift purchases were in the form of gift cards or certificates, up from 13.1% in 2009. That was the highest since 2007, when the reported average share was 14.7%.

ICSC predicts only 36.3% of gift cards will be redeemed this month, down from 45% last year and 46.4% in 2009.

Tolu Babalola, spokesman for GiftCardRescue.com, which buys unwanted gift cards and lets people exchange them for others, believes more consumers are putting off redemption because of new federal gift card rules. The rules limit expiration dates to five years after purchase and prohibit dormancy fees for non-use until after the first year. As of Feb. 1, the dates and fees also must be disclosed right on the cards.

You can read more at USATODAY.com article:

Happy Shopping !

Gail

Aspirational Shoppers

Are you "Aspirational" ?!  "Aspirational" shoppers -- consumers who have fancy tastes but cannot afford the most expensive items -- are feeling more confident.

"Rich shoppers have recovered far more quickly from the recession than middle and lower income consumers, and are hitting stores in droves to snap up cashmere sweaters, designer dresses and diamond necklaces at stores like Saks Fifth Avenue and Neiman Marcus" according to this Reuters article

"Upscale retailers have had the extra benefit of catering to a clientele willing and able to pay full price, unlike middle-of-the-road chains like J.C. Penney Co and Liz Claiborne's Lucky Brands stores, which still have to watch their prices."


Whether you're Aspirational or just feel inspired to shop but find it hard to get out, if you live in Aventura, FL, you can shop online for retail, groceries and restaurant meals (including Food Court yummies) and get 1-Hour personal shopping and delivery via http://aventuranowmall.com/

It's A Long Way Back From The Abyss - How To Save Your Shopping Mall

The government ‘Retail Sales’ stats chart (below) tells the overall industry story – actually, it’s worse if you adjust for 12.6% core retail sales currently being diverted from the malls in 2010 via online shopping.  And this online sales drain is projected to grow to 35% by 2020 - who will be left in the malls then?

Given all things, shopping malls have a huge hill to climb.  Truly an industry visionary is needed to turn the tide.... and it literally means 'thinking outside the box'.

Shopping malls are essentially big boxes built beside major vehicle traffic byways and highways and contain (hopefully) all your favorite stores and restaurants...or at least enough to cause you to get out of your easy chair, into your car (on on the bus) and make your way through the traffic and the parking lots to see what's new...and buy something.

Your other choice to shop is online...and that's what is so scary for owners and developers of shopping malls.  The trickle of online shopping in 1998 has turned into a torrent in 2010 - and soon will become a raging tsunami by 2020.  What does this mean for malls?  It means they need to find new ways to lure shoppers into their big boxes - and not just for entertainment - the bottom line for mall owners is on-site retail store sales.

Retailers are happy if you buy in-store and/or online - either way is a sale to their head office.  But only in-store purchases benefit the malls.

Retailers are busily upgrading their e-commerce sites to respond to burgeoning interest in shopping online. Problem is - 30% of all online purchases are returned.  Big cost to retailers and big hassle for customers.  No, it's not a savings to the retailer (or convenient for the customer) to have to go to the store to return the online purchase - although the retailer hopes you will (so you will buy something else while you're there).

How can malls make shopping more convenient, fun, hassle-free and relevant for you - the consumer?  Glad you asked!

What if you could browse local stores online and decide what you want to buy - then place your order online and get it delivered within 30 to 45 minutes (or whenever else you specified) instead of 3 to 10 days?  What if it cost you less delivered this way than if you went to the store yourself to get it?

That's the basis of our ROOF (Rapid Online Order Fulfillment) program now being rolled out across the country by http://www.thenowmall.com/ in partnership with shopping mall owners as a new way to increase in-store sales while accommodating online shoppers.  Participating malls and stores will be distributing FREE Delivery Passes and many will be offering Customer Delivery Discounts + Online Passes you can print and redeem in-store for special deals.

We'll soon be announcing the "ROOF" mall locations via Twitter and on this blog as well as our website. 

You can help get your mall to offer ROOF faster - email your request to We Want ROOF NOW!  Tell us the name of your mall (including city and state).  We'll let you know their scheduled Opening Day.

Register yourself on TheNowMall.com as a Member (it's FREE to join) in your local Area.  We'll send you updates by email about Opening Day of ROOF in your local mall plus a VIP invitation to Opening Day Festivities!  Bonus for Members: When ROOF opens in your mall, you can transition to Advantage Membership that includes a 10% discount on all items you order for delivery via TheNowMall.com site PLUS you can choose your Favorite CyberValet Shoppers.  Membership has its privileges.

Together, we can save your favorite mall from the abyss and your neighborhood store owners will love you for it - including Grocers, Pharmacies, Retailers, Restaurants and Fast Food outlets.

And we promise our CyberValet Shopper Team will look after your local shopping needs with tender loving care - guaranteed!

Cheers !

Gail

Shopping Centers Can Offset Double-Dip Recession With ROOF (Rapid Online Order Fulfillment)

Here's how Shopping Centers can offset the Double-Dip recession with ROOF (Rapid Online Order Fulfillment)....

We continually mention the effect on mall sales by the rapidly growing number of “Internet-Savvy” Shoppers (76.3% of the population) because they are such an obvious problem (12.6% mall sales loss in 2010; growing to 32.6% by 2020), while ROOF (Rapid Online Order Fulfillment) is such an obvious solution (25% mall sales gain - 100% guaranteed). 

Offering your customers our turnkey ROOF service with 1-Hour in-store shopping and delivery from any retailer and restaurant in your mall is a major competitive advantage to attract time-starved, convenience-oriented, cost-conscious consumers.  Especially when you distribute the ROOF FREE Delivery passes throughout your malls.

HOWEVER:

We have 4 other major constituents beyond “Internet-Savvy” Shoppers who comprise the full 25% sales gain, including: “Mobility Challenged” Shoppers (60% of population); “Convenience” Shoppers (80% of population); “Bulky Item” Shoppers (almost everyone) and “Extended Reach” Shoppers (everyone outside your normal trading areas).

Our concern, due to this economy, is we may not have emphasized the value of these other constituents enough – particularly “Extended Reach” Shoppers.

The current general anxiety about a possible “Double-Dip” Recession would, beyond the obvious immediate negative effect on mall sales, also extensively lengthen the recovery period.

Therefore, we reach into our “Kit-Bag” and pull out the “Extended Reach” Shoppers as a strong solution to this problem for Regional Shopping Centers.

A well-documented strategy to increase sales in a recession is to aggressively steal sales from your competitors. (Article)

ROOF is the Regional Mall's “Secret Weapon” allowing you to easily reach beyond your regular trading areas to attract customers and sales from competing regional malls and their tenants who now use “distance” to shield them from you.

It’s a wide open “Turkey-Shoot” for you, a marketing match-up that Regional Mall management can’t lose.

The other 4 ROOF shopper groups listed above also offer unique marketing and growth opportunities; most importantly, “Extensive Community Goodwill”.

With all these new constituents, there is a lot we can do together.

Given we start now, based on 3 to 4 weeks to prepare for your first mall's ROOF launch, we would be ready for "Back To School" shoppers.  Then, we would open your second round of malls before Thanksgiving to take advantage of the huge year-end holiday shopping season.

Looking forward to working with you and your Team.

Gail

Shopping Mall Retailers' New Offensive Sales Strategy - Sales Soared 400% - OUT of The Malls

Retail Stores' New Offensive Sales Strategy: Divert in-mall sales off-premises with in-store kiosks. (See Article) Mall owners lose and retailers win.

Shopping Mall Owners’ New Defensive Sales Strategy: Recapture these lost sales quickly + attract an entirely new and growing customer base for your malls….with a 100% guaranteed solution that’s so unique, it is patented.

HERE’S THE CURRENT SITUATION FOR REGIONAL MALL DEVELOPERS: (Click for Article)

“Time-starved consumers are finding it more convenient to browse items online instead of driving to the mall. But growth has been rapid, with online sales soaring nearly 400% since 2000.”

“As e-commerce continues to grow at robust rates — the sector posted a 10% year-over-year sales increase in the first quarter, according to market research firm ComScore Inc. — experts have predicted that online sales could grow to as much as 30% of total retail sales over the next few decades.”

"The entire retail industry, in one way or another, is becoming driven by digital, and the days of just going to the store and shopping are really declining" said ComScore. “We’re really at the tip of this iceberg."

DANGER: To continue to ignore evidence of the massive sales shift to the Internet is a perilous strategy. Sure, malls can try raising base rents to offset reduced overage but with mall sales p.s.f. declining, so go base rents. See Article

GOOD NEWS ! ROOF (Rapid Online Order Fulfillment) is the 100% Guaranteed turnkey patented solution to recapture these lost sales + gain 5 new customer groups. ROOF immediately puts the Internet into mall properties as the highest form of Customer Loyalty and Social Media program. EVERYTHING: Delivered In A Flash®

1. ATTRACT FIVE (5) NEW CUSTOMER GROUPS: ROOF (Rapid Online Order Fulfillment) is needed and desired by all time-starved, convenience-oriented, cost-conscious consumers, including:

a. “Internet Savvy” Shoppers (76% of population): ROOF provides 1 Hour service (in-store shopping and delivery) from shopping malls so customers don’t have to wait 3 to 10 days for online orders from afar.

b. “Mobility Challenged” Shoppers: Can’t easily get to malls: Seniors (12% of population); Caregivers (29% of population); Disabled (19% of population); plus Busy Families and Offices.

c. “Convenience First” Shoppers (80% of population): Local shoppers who prefer strip malls instead of large regional malls due to easier parking, less traffic, less walking, proximity to their homes.

d. “Extended Reach” Shoppers (25% of new local population): Currently outside local malls’ normal trading area (buying from other malls elsewhere).

e. “Bulky Items” Shoppers: They visit the malls often and purchase in its stores – but only what they can carry. They see what else they want, go home to order bulky items online – elsewhere.

2. GUARANTEED to Increase Mall Sales by 25% and Profits by 50% (or more).

3. GUARANTEED No Set-Up Cost Risk: 100% guaranteed refund of the one-time nominal ROOF set-up fee over 12 months from our ongoing 15% Rebate program.

4. ENORMOUS GOODWILL from Tenants and Community: Increase Customer Loyalty + in-store inventory turns + virtually eliminate the normal 30% return rate of online orders.

We’re seasoned professionals ready to work with you to install ROOF quickly and successfully in your malls. Various performance testimonials and references are available upon request.

Click Here for the entire brief ROOF for Shopping Centers slide presentation. Insure your properties against ongoing Internet losses with ROOF. And, gain a new customer base you’ve never been able to attract before.

The Problem is Clear. The Opportunity is Clear. To Start is Easy. Call or email us today !

Gail

P.S. We’re delighted to report that 8 of the Top 100 Shopping Center developers are in various stages of joining the Regional Mall ‘Internet Revolution’ with ROOF – the “Holy Grail” of Local Search & Shopping.

As our e-Newsletters can only provide a brief overview, we suggest you at least start your due diligence now…get that part behind you so you can see the other advantages we bring you prior to your making a ‘go-ahead’ decision. Please contact us for an in-depth analysis and strategy for your malls.

Gail W. Nichols - Vice Chair

The Awakening of the Shopping Center Industry

The Shopping Center Industry Internet Revolution Is Beginning.

For years, the Internet has been skimming off larger and larger portions of shopping center sales and revenues starting with 0.6% in 1998, rising to 12.6% today and reaching 32.6% by 2020. (See Government Stats above)

This article dated May 27, 2010 tells what’s coming next: Brick-and-mortar retailers kick up sales with (In-Store Online) kiosks: It states that for the first quarter of this year, Kohl's online sales jumped by 50%, better than expectations. Nordstrom's Internet sales were up 38.7%; Macy's, 34%; Urban Outfitters, 40%. Shoppers are more comfortable using the Internet after more than a decade of online shopping, but none of these sales are from your malls – and this trend is picking up speed.

These visionary industry leaders are now sounding the alarm based on their unique position in the industry:

In their Annual Report dated 5/24/2010; Adam Metz, CEO of General Growth Properties, says:

"In addition to bricks and mortar competition, we are increasingly facing competition from the internet. Many of our retailers have adopted multi-pronged strategies that include internet sales . . . . . . . whose main attributes are price and convenience."

"In the long run, we believe physical stores and on-line sales will be more closely integrated ….as this trend evolves, we are confident that GGP will remain at the forefront of serving the needs of our tenants and providing value to them and their customers." Full Report Click Here

In a report dated 5/24/2010: Greg Maloney, President and CEO of Jones Lang LaSalle retail division says:

Social and digital media (The Internet) is essential to the new retail environment. In the global real estate services firm's report, “Get Connected -- How to Harness the Power of Digital Media” social media has changed how consumers behave, communicate, gather information, socialize and shop . . . . . The overwhelming reality is that social media is increasing across all generations and the rules have changed . . . . . . The report found that 92% of consumer respondents rely on the Web to research and browse for products. Full Report Click Here

In their 2009 Annual Report dated 3/19/2010: David Simon, Chairman & CEO of Simon Property Group says:

Despite our success, we face challenges including Internet retailing – online retailers have an advantage because in many instances they aren’t required to collect sales tax from the consumer . . . Internet retailing sites also provide retailers with distribution options beyond existing brick and mortar retail properties. The existence of competitive alternatives could have a material adverse effect on our ability to lease space and on the level of rents we can obtain. Full Articles Here & Here

These industry leaders clearly outlined the need for shopping center owners to harness the Internet as an integral part of their future growth. Most others agree the Internet is here to stay and will be embraced by the industry as a new means of promoting in-mall sales. Today, very few owners or managers believe that strategic placement or redesign of their brick and mortar properties is all they need to do.

Our patented ROOF solution (Rapid Online Order Fulfillment) immediately puts the Internet into your properties as the highest form of Customer Loyalty and Social Media Program. It also brings an additional series of new business that your properties have been missing for years. Collectively, these new local customers will reverse your Internet losses plus increase sales 25% and profits 50% or more. And it’s guaranteed.

ROOF immediately brings you 4 main customer groups you do NOT currently have and never will have without ROOF.

1. “Internet Savvy” Shoppers who 10 years ago were 1% of the population and 0.6% of sales, but today are 76.3% of the population and 12.6% of your core retail sales – AND growing to 32.6% of sales within 10 years. (See gov’t stats above)

2. “Mobility Challenged” Shoppers who can’t easily get to your shopping centers: Seniors; Caregivers; Disabled (temporary or permanent); Busy Families; Offices.

3. “Extended Reach” Shoppers who are currently outside your normal trading area (buying from competitive shopping centers elsewhere in town).

4. “Regular LOYAL” Shoppers who visit your shopping centers often. They see what they want and go home and order it online – elsewhere. They also order in your stores – but only what they can carry. You can double these sales if you provide ROOF – help them get it home quickly and inexpensively.

ROOF also improves your community goodwill and tenant goodwill as well as increases your sales 25% and profits over 50%.

The Shopping Center industry is awakening to customer demand for fast, convenient and affordable online shopping.

EVERYTHING: Delivered In A Flash®

ROOF’s customer loyalty and social networking program is so much more effective than the sum total of Twitter, Facebook, LinkedIn and Foursquare… and ROOF has real, verifiable, immediate results. ROOF has been called the “Holy Grail” of Local Search & Shopping.

We do it all. There is nothing for you, your tenants or your staff to do. ROOF is 100% turnkey – a Dream Come True.

The Shopping Center Internet Revolution Is Beginning:

As most shoppng center executives know, when we first brought the looming Internet sales threat to your attention almost a year ago, it was a complete surprise to many. You were blaming your lost sales on the then raging 2008 / 2009 economic collapse. However, it was this collapse that finally sparked the Internet’s explosive growth that, at first, was denied. But the significant ongoing growth of your tenants’ online sales by up to 50% last quarter caused everyone to begin reassessing the Internet’s real impact on mall sales and methods of defense. (See Gov’t stats above). There’s nothing fast or easy about innovation.

Today, virtually all shopping center executives we speak with are waiting for the first Major Industry Leader to show the way, vowing to join us when this Leader arrives. Who will this Industry Leader be ? For now, what we can say is we are well into due diligence with this Leader who has referred to our ROOF solution as “The Holy Grail” and also said, “we were waiting for someone to arrive with the solution”.

You are invited to join this Leader now to also gain significant Charter Member benefits including a ‘Mutual Win-Win Pricing & Rebate Plan” with an optional “Step-Up” Guarantee which repays your initial set-up and rebate cost in 12 months. Multi-center discounts apply. ROOF can increase your sales 25% and profits 50% or more. And it’s guaranteed.

We’re seasoned professionals ready to work with you to make it happen quickly. Various performance testimonials and references are available upon request.

Click Here for the entire brief ROOF slide presentation. Insure your properties against ongoing Internet losses with ROOF.

The Problem is Clear. The Opportunity is Clear. To Start is Easy. Call or email us today !

We're standing by to be of service,

Gail

Open Your Shopping Centers' ROOF: Let Higher-Spending E-Commerce Customers In

Just imagine, currently your best customers can’t buy in your shopping centers !

Today, e-commerce is a way of life. 76.3% of all Americans shop online. And, 85% of online shoppers purchase an average order of $180. But none of these online consumers can either shop or purchase online in your shopping centers. Not even your own family members.

Fact: 5% to 35% of your tenants’ sales are now online (and growing fast). These growing online sales are not coming from your malls…and never will – without ROOF.

Any chance you are still in the ‘brick-n-mortar-only’ frame of mind ? Modernize your properties to gain these E-Commerce customers and revenue plus improve relations with your tenants and local community. E-Commerce Is ‘Today’s World’ and your shopping centers need to be there. With ROOF: It’s Fast. It’s Easy. It’s Inexpensive.

ROOF (Rapid Online Order Fulfillment) immediately brings you 5 main customer groups you do NOT currently have and never will have without ROOF.

1.  “Mobility Challenged” Shoppers who can’t easily get to your malls: Seniors; Caregivers; Disabled (temporary or permanent); Busy Families; Offices.

2.  “Convenience First” Shoppers who are the 80% of locals who prefer strip malls due to easier parking, less walking, proximity to their homes.

3.   “Extended Reach” Shoppers who are currently outside your normal trading area (buying from competitive shopping centers elsewhere in town).

4.  “Internet Savvy” Shoppers who 10 years ago were 1% of the population and 0.7% of sales, but today are 76.3% of the population and 12.6% of your core retail sales – AND growing to 35% of sales within 10 years.

5.  “Regular LOYAL” Shoppers who are in your malls every day. They see what they want and go home and order it online – elsewhere. They also order in your stores – but only what they can carry. You can double these sales if you provide ROOF – help them get it home quickly and inexpensively. ROOF also improves your community goodwill and tenant goodwill as well as increasing your sales 25% and profits over 50%.

ROOF is your insurance and hedge against recessionary downturns as well as greater e-commerce sales upticks: Thrifty shoppers always need ROOF since it saves them money and time.

Open your ROOF program today and let these new, higher-spending, e-commerce (and phone-order) customers in.

ROOF has been called the “Holy Grail” for shopping centers – but your customers who really NEED it still don’t have it ! Your innovative dynamic leadership is required.

FACTS YOU CANNOT IGNORE – INTERNET SALES ARE WAY UP & GROWING

Retailers Report Online Sales Growing:

1. JCPenney: Article “it's counting on Internet sales, now just 9% of its $17.5 billion in annual revenue, to deliver $1 billion in sales growth over the next five years.”

2. Sears Holdings: Article  Sears is pouring money into beefing up its online business in an effort to become relevant to a new generation of shoppers. “Sears and Kmart stores aren't going away, but they could be a hybrid of what they are today”, said Edward Lampert.

3. Macy’s: Article “Internet customers carry growing value. Having already passed the $1 billion mark in annual online sales, Macy’s is now shooting for $2 billion, with plans to reach digital audiences by spending, for the first time, a double-digit percentage of its marketing budget on search, display, social and other online media this year.

4. Kohl’s: Article  Annual web sales increased 38.1% Comparable-store sales increased year over year 0.4%. “We're making a major new investment in capital and infrastructure in our e-commerce business to fuel future growth,” CEO Kevin Mansell “Based on our research and our own results, it appears that our opportunity in this business is substantially larger than we originally envisioned.”

5. Chico’s: Article Direct-to-consumer sales, not included in comparable store sales, increased 42% Comparable store sales increased 14.6%.

6. Williams Sonoma: Article  “It hopes that new economy e-commerce, not traditional stores, will pave the way to growth.” “E-commerce is our fastest growing and most profitable channel,” Lester concluded. It also keeps shoppers engaged with the retailer even if they are shy about stopping by the store and tripping their frugality up with temptation.

7. Ann Taylor: Article  Internet sales up by more than 50% comparable-store sales should grow 15%.

AND THAT’S JUST FOR STARTERS !

DANGER: To continue to ignore the evidence of the massive sales shift to the Internet is a perilous strategy.

GOOD NEWS ! We have a time-proven patented solution to recapture lost sales and gain new sales – and it’s 100% turnkey. Plus, it has a 6 month payback.

We’re seasoned professionals ready to work with you to make it happen quickly. Various performance testimonials and references are available upon request.

Here’s The Deal: Make it happen in your shopping centers today to earn special rebates on ROOF orders in your shopping centers. We do it all. There is nothing for you, your tenants or your staff to do. Multi-center discounts apply.

More info is in our brief ROOF slide presentation.

The Problem is Clear. The Opportunity is Clear. To Start is Easy. Call or email us today !

Looking forward to working with you,

Gail