The Changing Face of Retail Bruce Leonard Managing Principal for Streetsense.

1. 10.22.2012
the changing
face of retail
BRUCE LEONARD
MANAGING PRINCIPAL

2. WHO WE ARE 1
WE ARE
an uncommon collective of designers, brokers, architects, developers,
planners, researchers, and creative thinkers. We are inspired by
the desire to create distinctive places and meaningful brands.
Whatever the challenge, our team of experts is ready to take it on
with you – our collaborative ideology is our greatest differentiator.
STREETSENSE.

3. WHO WE ARE 2
WE HAVE A SPARK.
a knack for storytelling. For understanding the end users of a project and
connecting with them on an emotional level at every opportunity – through
brand, design, architecture, and location. Each of these elements works
together and elevates the others, with measurable results.
WE CREATE VALUE.
brands and places people love. Through our comprehensive approach, we
have a unique ability to identify, harvest, and grow places and brands that
really resonate. We are a team of experts that, together, is consistently
ahead of trends. We never play catch-up – neither should you.
WE INSPIRE GREATNESS.
our clients to think about things a little bit differently. Because we do.
We approach every project in a thoughtful, unconventional way. Not for
kicks, but because the changing world demands it. We are known for
leading our clients down uncommon paths to uncommonly great success.
WE DELIVER THE EDGE.
your vision through our creativity. We do so by working in an environment
that is collaborative and truly multi-disciplinary. We are better architects
because we’re brokers. Better designers because we’re developers. And
we’re not just tooting our own horn. Our work speaks for itself.

4. WHAT WE DO 3
architecture architectural design
restaurant design
+ Interior Design
retail store design
prototype development
prototype adaptation
construction documentation
contract administration
sustainability consulting
3-D visualization
PLANnING
site + master planning
Creative
naming design guidelines
branding site analysis
logo development streetscape + urban design
WE DO
environmental graphics entitlements
signage site signage + wayfinding
packaging landscape design
marketing community outreach
print collateral
advertising
public relations
web development
development
social media
interactive media
photography
feasibility studies
landlord rep
tenant rep BROKERAGE+ due diligence
tenant coordination
REAL ESTATE
market research + analysis
pro forma analysis
custom demand modeling
design + construction management
site assessment
investment sales
roll-out strategies
STRATEGY value engineering
advisory services
merchandising strategies

5. five major factors affecting retail
development moving forward
we are in the perfect storm...

6. 1 OVER SUPPLY OF MAJOR RETAIL BRANDS 5
• Leading up to the downturn in 2008,
Wall Street and the Investor Market were
driving Retail Expansion
• Many major retailers lost site of sound
expansion strategies resulting in store
cannibalization and dilution of brand
• National retailers will be scaling back on
new growth moving forward with some
stores reducing the store count by 50%

7. 2 MAJOR CHANGE IN CONSUMER BUYING PATTERNS 6
• Post 2008 the Baby Boomers started
to cut back to spending, particularly
with respect to Goods and General
Merchandise
• The X&Y Generation is becoming a
significant buying force focused on
“Experience” over “Things”
• National and Local Retailers are adjusting
to the new buying patterns and trying to
re-gain their footing...there will be some
winners and losers
• The retailer needs to figure out how to
get into the pocket of the 25 year old,
who has 10% of the buying power of their
parents.

8. 3 INTERNET SHOPPING INSURGENCE 7
• Leading up to 2008... Internet shopping
was insignificant compared to the dollars
spent in bricks and mortar retail...roughly
3 to 8% of sales
• According to recent studies...internet
sales represent over 18% of total sales
with the curve trending almost vertical
• Many National Boxes and commodity
retailers are seeing the relevance of their
stores diminish...some will not survive
• Specialty stores are trending towards
“gallery” locations
• We are just as the beginning of the
internet’s influence on bricks and mortar
shopping

9. DEVELOPMENT PATTERNS ARE SWITCHING TO
4 “URBAN” OVER “SUBURBAN”
8
• Both Boomers and X & Y’s are moving
back into the city and retailers are
following.
• Urban markets are undeserved by most
retail categories and represent the
biggest opportunity for retail expansion
• The customer wants to connect to the
retailer, regain the sense of community.
• Convenience is critical.

10. 5 STRATEGY IS THE KEY TO SUCCESS 9
• Location, location, location is now
environment, environment, environment
• Connecting the consumer to the retailer
is key.
• Not everyone who makes $80k/
year wants the same thing. Pyscho-
demographcs are more important than
ever.
• Live, work and play were words over the
last 10 years. They must be executed
perfectly going forward.

11. 100 Years of Retail in America
100 YEARS OF RETAIL IN AMERICA 10
Shopping Center Growth Curves
100 YEARS OF RETAIL IN AMERICA
Growth Downtowns Malls Lifestyle/Mixed Use
Power
Over-Heated
Centers
Moderate
Slow
No Growth
1900 - 1960 1985 1995 2005 2012-Future

12. ALL CATEGORIES STILL MAINTAIN THEIR RELEVANCE... 11
SOME MORE THAN OTHERS
POWER CENTER SPECIALTY CENTER PLACEMAKING

13. Thank you