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THE SHOPS AT LA CANTERA San Antonio, TX  Saah: What are people are looking for in their retail experience? Tell
FASHION SHOW, Las Vegas, NV                us about some of the things GGP is doing to support the retailer and
                                           enhance the customer experience.
       32 Realcomm
                                         Morey: Understanding the consumers’ path to purchase and how we can
                                           maximize the path is critical. All the developers are focused on this.

                                         Saah: Can you give us an example of your efforts?
                                         Morey: A year-and-a-half ago I was charged with trying to figure out

                                           how to provide same-day delivery. We partnered with Deliv to provide
                                           that service. Several retailers focused on omni-channeling signed up
                                           quickly. At first we thought this would give us a short-term competitive
                                           advantage, but quickly realized if every mall owner started doing
                                           their own thing, we would lock up the retailers and no one would do
                                           anything. So we made it an industry-wide effort. In the third quarter of
                                           2013, we launched in four markets. We now have close to one hundred
                                           retailers, and are expanding into another 10 markets via this mall
                                           aggregated delivery service.
                                         		 This delivery service can range from same day delivery for online
                                           orders to centralized areas within a mall for pickup. There are many
                                           ways to build on this service. For example, Macerich now offers services
                                           where you can shop and never pick up a bag, and if you have valeted
                                           your car the bag shows up in your car. Other examples include providing
                                           intelligent directories, personal shoppers, and free WiFi. Simon now offers
                                           a loyalty program to help track consumer habits. All the mall owners in
                                           some way are testing these concepts and others to ultimately further
                                           drive retailer productivity.

                                         Saah: And what is the specific benefit that you as the mall owner are
                                           adding to this service?

                                         Morey: The value we offer is that, while you the retailer could do this
                                           without us, we bring scale and therefore a decreased cost. So we’re
                                           adding value to the price point, but we are also adding infrastructure. We
                                           have runners to pick up bags and common areas to store merchandise
                                           to be picked up for delivery, and a range of other things.

                                         Saah: I noticed in the Wall Street Journal that a growing number of
                                           people are telecommuting from malls. Instead of hanging out at the
                                           coffee shop, they’re hanging out at malls.

                                         Morey: I can see that. More malls are expanding their common areas
                                           and I believe everyone, if they are not already, will offer free WiFi soon.
                                           Providing bandwidth is not just for the consumer. Increasingly, the
                                           retailers are demanding it and virtually everyone is in some phase of
                                           deploying high speed internet infrastructure in their malls.

                                         Saah: Agreed. We assisted with the opening of Avalon in Alpharetta, GA
                                           and that is basically a GigaCity with fiber and Gigabit WiFi throughout
                                           for both retailers, customer, and residence.

                                         Morey: At the end of the day, the retailers are going to navigate to the best
                                           locations. Our mission is to help the retailers be more productive and
                                           draw the right kind of customers—both repeat and first-time customers.
                                           When we look at the entire mix of technology, marketing, and customer
                                           experience, there are really just three things we can do: bring people in
                                           for the first time; bring them back more often (experience); and try to get
                                           a bigger share of their purchasing power.
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