Social media and the Internet are nothing new in this day and age. In fact, most of America and nearly all youth have assimilated it into their daily routines. What is becoming a trend, however, is the use of this technology as a way for businesses to reach their customers, and vice versa. Social media sites like Facebook, Twitter, and Yelp have made it easier than ever for consumers to communicate with their favorite businesses. In a survey conducted by SmartBlogs, 97% of people polled felt their complaints and suggestions expressed on a company’s social media site are heard and resolved more efficiently than it has been in the past. Not only is this a great way for consumers to convey their feelings, but also an amazing opportunity for businesses to improve and adapt to their customer’s needs.

The recent advents of couponing websites have a tremendous impact on consumer behavior. The traditional method of delivering these coupons has been via standard mail, which have been considered junk and caused an overflow in recycling bins. Major couponing websites like LivingSocial, Groupon, and Bloomspot have eliminated the paper waste and adapted by using email as an infinitely more efficient way to deliver great deals to consumers. What makes these sites even more special is their ability to customize deals that consumers want to receive.

Restaurants have even started to use small computer programs called applications, or “Apps” for short, to increase internal productivity. Open Table is an extremely revolutionary company whose App allows consumers to find and review restaurants, buy dinner deals, earn rewards points towards their favorite eateries, and even book a reservation. They have successfully combined the benefits of social media and couponing websites while adding their own unique functions, to create a unique consumer experience. The ease of use and accessibility of these Apps makes it easier for hungry customers to eat the food they desire.

When considering your businesses next marketing tactic or promotion, consider who you’re customer is and what streams of communication they would most likely utilize.  With the internet just a simple click away and the ever growing use of social media, using current trends in technology to attract consumers to restaurants and storefronts are sure to be in one shape or form, rewarding.

When it comes to saving the economy, there have been numerous suggestions of ways to do so: increasing the debt ceiling, creating a new infrastructure bank, eliminating job outsourcing, increasing taxes on the rich and larger corporations, and so forth.  Whichever way you look at it, the truth of the matter is that money needs to continue circulating through our own economy, and the best way to tackle this piece of the puzzle is to understand the behaviors of the most influential spending generation: Generation Y, otherwise known as the Millennials.

According to the U.S. Census Bureau, the Millennials, now between the ages of 17 and 34, are currently the largest population of any generation, larger than the baby boomers, and account for the majority of America’s consumer population. Their exposure to modern day technology is adapted and incorporated into their lives. This cutting-edge lifestyle is prominent in their spending behavior, which is focused on brand and product consciousness. Their ability to perform on-the-fly research over the Internet and through hand-held devices gives them greater awareness of what’s new and who’s delivering it.

Despite the efficiency of shopping online, Millennials still yearn for the physical retail experience. Shopping malls are expected to see an increase in patronage if they add trendsetting stores that are able to shift and adapt to the community’s taste which larger retailers, along with online merchants, are unable to accomplish. Utilizing this type of brand consciousness and loyalty invites a local crowd, in turn generating more of the communal revenue needed to reinvigorate the economy. However, whether or not businesses are trying to positively impact the growth of our nation, or simply make a profit, their knowledge contributes to the understanding of the buying nature of America’s largest and most influential population.

Despite the overall conception that the retail sector has taken a nosedive, with millions of lost jobs and boarded up storefronts, along with a turbulent, troubling Great Recession, recent facts and figures suggest the industry is actually getting back on its feet and quite solidly so.

Retailers had notably robust third quarters across the spectrum, from high-end to low. Luxury department store Saks Fifth Avenue increased same store sales by 5.7%. One would think with a struggling economy, a store like Saks would be hurting for business, but this doesn’t seem to be the case. On the other end of the scale, discounter the Dollar Tree saw similar store sales increase in the third quarter.  Their sales grew by 8.7% in 2010, compared to 6.5% in the third quarter of last year. The company’s stock price has rose by 70% in 2010. Mid-level retailers such as department store Macy’s, also showed strong results.  Macy’s in fact saw sales, earnings and cash flow increase in the third quarter, this growth exceeded the company’s own expectations.

The US Department of Commerce has reported that consumer spending as a whole has rose, at the fastest pace in four years, during the third quarter of 2010.

Heading into the fourth quarter, The National Retail Federation issued a report stating that 212 million shoppers visited stores and websites over the four-day Thanksgiving/Black Friday holiday 2010 weekend, which is greater than the 195 million in 2009. Overall, shoppers spent $45 billion over the four days, an increase from $41.2 billion last year.

The National Retail Federation is also expecting total holiday retail sales, excluding online sales, to rise by 2.3 percent this year reaching a total of $447.1 billion, compared with a rise of only 0.4 percent last year and even more than the dismal 2008 season, in which sales did not climb, but dropped by 3.9%.

Surprisingly retail sales numbers are growing, even while other economic indicators, such as the job market, continue to disappoint. Since spending by the nation’s consumers account for 70% of the gross domestic product, retail along with its consumers can lead the way for the nation’s economy to become stable.

The following articles were excerpted from Chain Store Age News and Analysis for Retail Executives, August/September 2011

http://www.chainstoreage.com/

The Primacy of Value Add

The old existential question, “Why am I here?” is helping more retailers define what “value” means in their stores. In pursuit of a closer connection with their customers, retail brands search for the meaning and purpose beyond the SKUs on the shelf. Do they make life easier? Do they make people smarter? Differentiators that add meaning to the transaction can be a devotion to healthy/natural offerings, an image of authenticity via a strong brand personality or emotive storytelling. It can also include hyper-trained employees that educate on the fine points of consumption. Sensory Lab, The Science of Specialty Coffee in Melbourne, Australia, is a prime example of going narrow and deep into java. As its non-sexy name implies, it is a lab with beakers, bubbling and halogen heating to explore flavor possibilities. Not to mention the $15 cup of siphon Geisha. The branded environment elicits strong reactions. People either love it or consider it to have “a high wank factor.”

Is It Still Possible to Have A Pleasant Surprise?

Studies by comScore, BIGResearch, Yahoo! And others have found 80% to more than 90% of consumers buying in-store have consulted the Internet for information prior to purchase. The vast majority of consumers continue to find online customer reviews important, and believe in sharing their own shopping and product experiences online. The results of consumer research set their expectations, eliminating surprise. And yet part of retail is an art, the art of delight and surprise, two powerful attractants that keep customers attached. Despite the prevalence of so much product data, creativity and design have an enormous role to play in retail to keep shopping fresh and exciting.

Digitally Driven Retail

Old predictions about the effects of technology warned us of the death of travel and decreased urbanization. It was thought that once everyone was connected to the Internet, people would scatter into the country, since a broadband connection would be all we’d ever need. Of course, today’s increase in travel and urbanization proves the opposite. Our digital presence has increased our desire to socialize physically. Brick-and-mortar is feeling the benefit. While e-commerce has naturally taken a greater share of overall retail, broadband usage strongly and positively correlates with physical store sales. The internet does two important things-it reduces search costs and increases interaction around purchasing goods.

Retail as popular culture

We live in an experience-driven self-oriented culture.  Strong brands and cultural makers moving with the times.  According to Echochamber, “Retail brands are clever clubs that curate our style, give us somewhere to stay and play, get us involved and make us truly feel we belong no matter what age we are.  The proof is out there.”  Fabulous stores, temporary restaurants, mobile stores, pop-up shops, flash sales, branded events, Facebook storefronts, online sharing-designing something that’s intensely engaging is really the key.  Brands have learned to give us things to do and enjoy.  The design of things shapes our experience of them.  A brand must stake its claim boldly amidst the totality of ideas, perspectives, attitudes and images that permeate our lives.

The secret to long-term success: Love people, love merchandise

Just when you think you have retail all figured out, a wave of change rolls through the industry, upending paradigms and shaking up sleepy companies.  According to Gary Hoover, entrepreneur and retail history buff, the single most important thing a retailer can do, even in the era of global retailing, is focus on the people and the merchandise.  A retailer whose central focus is real estate, distribution or acquisition is often distracted from what matters.  The basic premise of “right time, right place and right customer” is timeless.  It’s just that now there are more channels to make delivery of value that much tougher.  “Those who don’t cherish and respect and innovatively serve their customers,” Hoover asserts, “will not be long for this world.”

Retail Pops Up, Pops By

“Fluid modernity” refers to today’s impermanence of things, a new fact of life.  Social forms and institutions, being no longer “solid”, cannot serve as frames of reference for our actions, so individuals have to find other ways to organize their lives.  With life so fragmented, shoppers are ready to seize the day-and the store.  Enter the mobile retail entity as brands understand they can no longer stay put.  Pop-up retail initiatives continue to draw crowds-especially when they’re seasonal, surprising, changing and creating buzz-and test new techniques without risking much capital.  Thanks to low overhead and start-up costs, the food truck trend has joined the mobile retail scene, often “a gourmet gig on the move, on Twitter and Facebook.”  But does it need to be just food?  How about a mobile barber, office supplies or florist?

The Emotional Pull of Heritage and Authenticity

Although Americans love and depend on their mass merchants, we continue to be delighted by the new exclusive, having a taste for both mass and class.  Plus, with the world getting smaller, consumers, especially male shoppers, are happy to be reminded of the heritage brands in their own back yard.  Brands like Red Wing boots, Pendleton wool, even Zippo lighters are being discovered by a new generation.  Online, Taigon is bringing rare and handmand product lines to the masses, with the tagline “discovering the elusive.”  At the heart of the heritage trend is the draw of a powerful story and a strong point of view.

An article from Apparel News entitled “Social networking Applied to Retail Inventory Control” offers great insight to how technology and social media will be influencing fashion retail to be more engaging for both customers and employees.

Social Networking Applied to Retail Inventory Control

September 09, 2011

What will the store of the future look like, and what will it be like working in them?

According to technology analysts, fashion retail is on the verge of taking a big leap forward in technology.

Don’t expect something out of “The Jetsons” or “Star Trek,” said Leslie Hand of Framingham, Mass.–based technology-analysis group IDC Retail Insights. Rather, Hand said, the store of the future will take advantage of mobile technology, social media and even online games such as Farmville.

Social media, games and mobile communications will enable retailers to boost efficiency and worker productivity, Hand wrote in her recently released paper, titled “Perspective: The Future of Work in Retail Operations—Creating a Platform for a Productive and Engaged Workforce.”

Hand’s vision of retail is still the stuff of science fiction. But retailers are already communicating and interacting with their consumers in the same way they engage with their friends—through mobile-communications networks and social media.

According to Hand, retail workers could be more highly engaged with retail product, store inventory and operations if retail management set up a platform where all store information is on a network that mixes the functions of social media and mobile communications—perhaps cloud computing. Workers would be able to build a “rich experience” for consumers. This would boost efficiency and sales because sales associates would always potentially have answers to consumers’ questions at their fingertips, she said.

“There’s the classic example: A customer asks a question, and you don’t have the answer,” Hand said. “But you know who has the answer. The social enables you to connect to other people … to better support customers in the store.”

Sales associates would not have to waste time walking to the cash register or to the back room to find whomever has the answer. Instead, the question would be answered by the store’s social-media network—in the same way Facebook users query their friends.

Managers could use Farmville-like games to motivate workers and boost productivity. The games could be more engaging than the old reward-driven system that awards prizes to employees who meet or exceed set sales goals.

Retail productivity, instead, could be posted in a social media–style game, and the goal would be to beat the top performers. “We’re more inspired by peers than rewards,” Hand said. “We want to look good in the eyes of the people we work with.”

Mobile communications also is represented strongly in “Deloitte Store 3.0, Planning Tomorrow’s Store Today,” a recently released paper by consulting firm Deloitte. The report posits that all commerce platforms will be integrated much more fully than they currently are. Shoppers will be able to enjoy the best features of bricks-and-mortar stores, mobile phone commerce and e-commerce—often at the same spot.

Marketing information will be sharply tailored to specific consumers’ desires. And because retailers will be doing much more marketing and selling online, they will cut down on store size and locations.

Technological change seems inevitable, but there won’t be one model that will fit all retailers.

Casey C. Chroust, executive vice president of retail operations at trade group Retail Industry Leaders Association, advised retailers to consider their business model and specific needs before they adopt new retail technology.

An independent boutique’s needs should be much different than the technology needs of a specialty chain with more than 100 locations. “See what fits and what does not fit,” Chroust said. —Andrew Asch

An article from The Wall Street Journal entitled “The Customer Is Always Right” includes great examples of how independent retailers have created their niche amongst big box retailers and department stores. Through offering a tailor-made shopping experience lead by outstanding customer service, these specialty boutiques have experienced great success and have become a preferred shopping destination.

The Customer Is Always Right

A handful of small boutiques around the country revive the revive the lost art of true personal shopping

July 23, 2011

By Nicole Berrie

Remember when personal attention, private appointments and shopkeepers who knew their customers’ likes and dislikes were the rule, not the exception?

If you were born anytime after the 1970s, probably not. But a handful of boutiques are reviving the tailor-made shopping experience miles from the fashion hubs of New York and Los Angeles.

These small purveyors shun the volume and anonymity of department stores in favor of hand-picked offerings for loyal locals. Here are some very special stores where old-fashioned customer service still reigns supreme.

Brie WilliamsCapitol

Capitol | Charlotte, N.C.

“When Neiman Marcus came here five years ago, people were insulted,” said Laura Poole, owner of Capitol, which stands, literally, in the shadow of the department store.

Since 1997, Ms. Poole has dressed debutantes, Southern belles and even Nascar wives. (The latter, Ms. Poole said, “have better taste than anybody I know.”)

She and her staff help clients with wardrobe organization and personal styling, selecting which Balenciaga biker jacket or Givenchy suit works best for an event. “Charlotte is not a huge pool.

I know not to buy the same dress for girls in the same social set,” said Ms. Poole, who attaches a client’s name to every dress she orders.

Stacey HainesLaura Poole

She was also the first to commission a Rodarte wedding gown for a customer. “It’s not a short race,” Ms. Poole said of the retail game. “I want to work with my clients for the rest of their lives.”

Put even more simply: “If I sell something that doesn’t look pretty on them, they’re not coming back.” capitolcharlotte.com

Nuages | Aspen, Colo.

NuagesNuages

At the 25-year-old institution Nuages, owner Mary Moyer keeps lists of customer requests for upcoming local events, such as the Aspen Art Museum’s Summer Benefit. “We remember what they bought 10 or 20 years ago,” said Ms. Moyer. Her 700-square-foot shop carries only 12 labels, from Alaïa dresses to custom Irish cashmere sweaters by Lainey Keogh.

Ms. Moyer doesn’t care that the upscale resort town has been bombarded with steroidal retail conglomerates. She thumbs her nose at “it” items. “They don’t want the same thing that they’ve seen in Paris or New York,” Ms. Moyer said of her clientele, most of whom live in Aspen year-round.

For example, when she saw Roland Mouret’s mid-calf cocktail dress, “I thought it looked great on the runway,” she said. “But it’s not for my customer.” Ms. Moyer ordered a shorter version. 601 E. Cooper Ave., 970-925-6569

Kristin BarloweH. Audrey

H. Audrey | Nashville, Tenn.

Below the Mason-Dixon line at H. Audrey, Holly Williams (daughter of singer Hank Jr.) acts as a stylist and concierge for locals including Faith Hill, Taylor Swift and visitor Gwyneth Paltrow, who praised Ms. Williams for her “exquisite taste” on her website GOOP.

You want people to feel like they’re getting something special,” said Ms. Williams. “My buying philosophy is it’s better to have the closet of a French woman—small and stocked with great pieces.” When she’s not doing Pilates with customers in town, she’s filling her boutique with rock ‘n’ roll designers (Rick Owens), down-home favorites (Golden Goose) and native talents, like jeweler Many Will See.

Ms. Williams also offers alteration services and home deliveries (even on Christmas eve), and will personally curate gift packages of clothing and accessories for specific customers. She’s even been known to drive shoppers to the local spa for a massage. haudrey.com

NeapolitanNeapolitan

NeapolitanNeapolitan

Neapolitan | Winnetka, Ill.

A 30-minute drive from the famous shop Ikram in Chicago, the quainter Neapolitan has attracted a stable of loyal suburban customers, whom owner Kelly Golden will bring to New York Fashion Week and open for at any hour.

“A department store might buy 10 dresses from a collection but I’m buying specifically for Amy or Sarah,” said Ms. Golden, who keeps tabs on everything from clients’ upcoming anniversaries to what color clashes with their skin tone.

The 4,200-square-foot shop favors a tightly edited selection of designers such as Derek Lam and Jason Wu, and has an exclusive Christian Dior shop-in-shop. Ms. Golden also collaborates with jewelers Irene Neuwirth and Kimberly McDonald to create one-of-a-kind pieces

“If a designer shows me a dress that is going to be on Bergdorf Goodman’s catalogue cover, I’ll offer the dress in a different color or change the neckline so it’s special,” she said. neapolitanonline.com

The evolution of retail has created opportunities for the best retailers to thrive throughout the changes in consumer spending.  Retailers are putting great efforts towards trying to redefine themselves in order to compensate for the disruption in their previous business models but are finding it difficult to keep up with the constant changes of the industry’s working environment. It’s still uncertain when the market will bounce back and recover due to the evolving buying attitudes of consumers; however, select retail operations amazingly have been able to keep up with the ongoing changes in the market and have proven to be quite successful.

The first level of promotional retailers put pressure on the independent specialty retailers by offering the public competitive prices and larger selections, beginning the first major shift within the retail industry.  Those promotional retailers were then wiped out by the big box power center tenant creating an emerging of opportunity for larger companies to take hold of the market by offering even more competitive prices and elaborate product selections and merchandising in their specific departments such as major book stores, office supply distributers and toys. These same category killer or big box retailers are now under tremendous pressure due to the next bigger box, of the highly identified one stop shop retailers such as Target, Wal-Mart and Costco.  Price and convenience has put the category killer with tremendous pressure to survive.

The amount of pressure put on different levels of retailers has shifted numerous times just within the last twenty years there has been a focus on competition with the Internet  illustrating the market’s vulnerability to the changes in consumer buying practices.  The Recession is over but some retailers are waiting for consumers to return to their old routines while the successful retailer has discovered and embedded their changes.  It’s not about size it’s about maneuverability.  Those retailers and restaurants that focus on service and experience will create the value add that changes the point of difference necessary to be successful in this competitive environment. 

The Internet is a powerful force putting tremendous pressure on top of retailers acting as a virtual shopping mall for shopping convenience and the best prices.  It has created a tremendous point of difference between online shopping and destination shopping and has threatened the growth of any incoming foot traffic to stores.  True full service retailers are able to take advantage of this major shift and use it as an opportunity to play up their strengths in adding value to its products through amazing service, proper merchandising, and style savvy marketing.  These prime initiatives are what sets the independent retailer from the corporate retail giants and are what makes them an even greater retailer today and also in a better position to succeed than ever before.  

Keeping in mind that there is no room for mediocre in the large competitive realm of the retail industry, Main Street Property Services has shared the experience from the best chain store tenants with the independent retailers.  Retailers and restaurants benefit by utilizing the tactics of the larger retailer while still having the maneuverability of a locally owned and operated retail store.  The awareness that we’ve gained through working with so many successful restaurants and retailers allows us to stay on top of trends in the market place and gives us the ability to be an expert in our field and share this growing knowledge.  Retail is evolving faster and faster, but the evolution has never been clearer for us given the compilation of our retail and commercial real estate experience that we’ve gained within the last decade.  Working with the never successful entrepreneur further contributes to our passion for retailing and sharing our experience with all those we work with.

At Main Street Property Services there isn’t anything more rewarding than helping the right start up business, reach their ultimate goal of opening their first retail store.  We’re proud to announce that Plum, a new start up business we identified, successfully opened their doors to the public this month in downtown Danville.  Plum, owned by sisters Dana and Kara Grigas is a fashion-forward boutique which provides the latest fashion trends from cutting-edge designers as well as personalized styling consultations and attentive customer service.  With a mission that showcases helping women enhance their current wardrobe with high quality, fresh fashion at an accessible price and comfortable, stylish and approachable boutique environment; picking Plum was the right choice.

Our first job was as the leasing agent for the site and simply selecting Plum; making sure that we selected a great tenant for the Landlord to ensure there would be a good long term relationship.  In addition, we further assisted their development in various ways including working out a deal structure that would reduce their risk and allow them the best probability to achieving their goals.  Once this was achieved we then took our understanding of their needs and were able to explain to Ownership why this was the appropriate deal structure to ensure their success.  Furthermore, we openly shared with them key relationships that we have in the industry that would be able to assist them with all their architectural, design, and construction efforts towards attaining their ideal space.    

With countless start up businesses contacting us daily, people may wonder as to why we decided to stretch ourselves and work with Plum.  What is it about Plum that geared us towards investing our time and energy with them?  To summarize that answer in three very powerful words, it is their experience, passion, and commitment.  Dana and Kara both carry with them not only a great deal of experience, but also the utmost enthusiasm and passion for the fashion industry. Their willingness to listen made us feel like they had the attributes that we have found in the most successful start up businesses and this has proven to be the case the whole way through their development process.  We’re very impressed with the job that they’ve done.  We believe that they will be very successful and may even become a multiple store operator.

 “Main Street Property Services is a full-service retail real estate company, specializing in development, management, marketing, and the leasing of shopping centers and downtown shopping districts.”

Having ten years of retail experience prior to jump starting my career of twenty years in commercial real estate has truly contributed to our company’s passion and care towards independent retailers and their development.  At Main Street Property Services, we love sharing our collective experience in both realms of retail store operation as well as commercial real estate.  Having this experience to share is definitely enriching to us, seeing how beneficial it is for retailers when utilized.

There are numerous ways that retailers can utilize Main Street Property Services as a resource and many of them take a single step.  Our newsletter, website and blog are literally only a couple clicks away to gather valuable information on how to improve your business.  A compilation of useful resources are available on our website under the resource tab and also in our collection of resource binders in our office for independent retailers to use.  Resources for construction, architectural, design and marketing needs can all be found within our company.  In addition to being a source for helpful resources we also provide various services which include designing logos, sharing marketing tactic and consulting on storefront designs. We make it a point to make ourselves available to share all knowledge we have about any component that effects retail performance.  By doing so, we benefit not only ourselves and retailers, but also the various projects we represent. 

Main Street Property Services believes that the value of our projects isn’t just the credit of the tenant and the contract rent negotiated; it’s more importantly the performance of the store.  We’ve tailored our business to work to the benefit of both landlords and tenants by focusing on optimizing sales performance.  Main Street is known for understanding each retailer’s individual business before creating the ideal terms that are appropriate for their particular use. We know that it’s important to retailers to have us customize to them and believe it’s an important step towards the success of the retailers, landlords and projects we represent.

Main Street Property Services couldn’t be happier with the success of Patxi’s Pizza at the Clocktower Building in Downtown Lafayette.  With the opening of their fifth restaurant and their Lafayette location as the first to join the East Bay, Main Street Property Services together with Patxi’s Pizza has a lot to celebrate.  The road to becoming a new dining institution in the affluent community of Downtown Lafayette was not the easiest, however; the care and commitment of Main Street Property Services proved to be most effective as the successful opening of Patxi’s Pizza has already added value to the Clocktower Building’s stand as one of Downtown Lafayette’s most sought out retail destinations.

 To assist the award winning Chicago style pizzeria obtain the opportunity of landing a place in the heart of the savvy downtown area of Lafayette, Main Street Property Services helped in various contributing factors of the businesses new development.  The sign program was reinvented to allow Patxi’s the type of signage consistent with better street locations. Design guidelines were created that would make the retail environment lively and compliment the restaurant’s warm and contemporary vibe.  Patio areas featuring outdoor seating were designed and installed adding an attractive and inviting open area that would draw in traffic from the busy main street of Mount Diablo Boulevard, and a unique storefront was designed with operable windows that would open onto the patio and compliment the restaurant’s distinct personality.  These amongst other numerous efforts of Main Street Property Services played a major role in the company’s overall victory.

 Within the short time of being open for business at the Clocktower Building, Patxi’s Pizza has already obtained ground breaking success.  Their Lafayette location has achieved substantial sales surpassing Patxi’s expectations giving Patxi’s Pizza more reasons to predict an additional increase in business.  Main Street Property Services is thrilled to be a part of an amazing success story and looks forward to its shared future endeavors.  As Main Street Property Services continues to build its relationships with tenants along with its ongoing commitment to its clients and partners; Main Street Property Services will continue working with specialty retailers like Patxi’s Pizza in their quest to be a part of the Bay Area’s most dynamic shopping centers and downtown shopping districts using our experience gained over more than three decades of retail real estate experience.