Know it Alls
- About 83% of shoppers believe they’re more knowledgeable than retail store associates, though 79% say being able to engage with knowledgeable store associates is “important” or “very important,” according to a new survey from Tulip Retail.
- Meanwhile, 63% of consumers prefer to shop both in-store and online, and 64% of respondents said physical retail locations will be part of their shopping journeys in the future.
Store No. 8
- Wal-Mart is creating a Silicon Valley-based retail startup incubator designed to nurture and accelerate to market cutting-edge technologies including virtual reality, drone delivery and personalized shopping.
- Store No. 8 is somewhat like corporate venture arms at other companies and will be charged with identifying emerging technologies that could prove useful.. It will also strike strategic partnerships with other promising young e-commerce companies.
- Marc Lore, the president and CEO of Wal-Mart’s U.S. e-commerce unit, announced the incubator — dubbed Store No. 8 in honor of an early Wal-Mart location home to some of founder Sam Walton’s most ambitious experiments
- ‘’startups that have a responsibility to change the course of retail,” “The focus is not just on today,” Lore said. “Think bigger.”
- Adds onto recent purchases post-Jet — Moosejaw, Modcloth, and Shoebuy
- Head of Jet.com is the head of e-comm. All of these are e-comm transactions.
The Fall of the Mall Rats
- There are 1,221 malls in the US today, according to the International Council of Shopping Centers (ICSC). The number of malls increased by more than 300% from 1970 to 2015. Given the oversaturation of malls in the US, we believe that at least 30% of malls—mostly within the C and D classifications—need to be closed.
- Malls classified as A properties are the most productive: they account for only 20% of all malls, yet represent 72% of total mall sales.
- Even though retail traffic at malls has declined, retailers such as Tesla Motors and Apple are choosing to locate stores in malls in order to expose their brands to meaningful traffic.
- The top 10 malls in the US see average sales per square foot of over $1,000. Four of these malls are located in Florida and two are in New Hampshire, which has no sales tax. Two are in tourist locations and two are outlet malls.
- Other reports in this series will analyze department stores in malls, trends impacting malls, malls’ evolution and store concepts that are expanding.