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jerryking : mappedin   6

Retail sales per square foot in decline | Retail Dive
Daphne Howland
@daphnehowland
PUBLISHED

Aug. 1, 2017

Which stores to close can be a tricky decision, though, because of how offline stores add to online sales. Moody's Investors Service last year warned that closing a physical location reduces a retailer’s presence in the market area and noted that online sales often decrease in zip codes surrounding a shuttered store. It behooves mall landlords and retailers to leverage new technologies and new math to account for that, in order to make educated decisions, according to Hongwei Liu, CEO and co-founder of Mappedin, an indoor wayfinding platform for premium North American malls.

"Fortress mall operators are under heavy scrutiny, along with the rest of their industry," he told Retail Dive in an email. "Everyone knows retail space is overbuilt in the U.S., shares are down 35% from a year ago. Our mall customers, who are almost exclusively premium operators, say that 'rents are up, sales are up, occupancy is up' in 2017. Flush with cash but seeing depressed market valuations, hostile takeover bids are increasing. Anecdotally, more is being invested in technology and consumer experiences to 'recapture' (or re-demonstrate) the value that premium malls and retailers are creating."
MappedIn  shopping_malls  retailers  Apple  Tiffany  LBMA  anecdotal  sales_per_square_foot 
august 2017 by jerryking
Chinks emerge in the armour of prized malls
22 July/23 July 2017 | Financial Times | Miles Johnson.

A defining feature of the financial crisis was a group of hedge funds making vast sums by wagering against supposedly AAA-rated mortgage debt well before markets imploded in 2008.

Now some believe a similar story will play out for US shopping malls — that the most risky investments will end up being those that investors now believe to be the safest. Central to their premise is the idea that too much faith may be being placed in a classification system used for shopping malls that is little known outside of the real estate sector.....investors are also actively leaving the office and conducting field research.

In April researchers from a large US hedge fund travelled to the outer boroughs of New York to a shopping mall that is home to Apple and Armani among other retailers....To their surprise the researchers quickly came across a pop-up shop selling cheaply manufactured stuffed teddy bears and plastic toys. Two months later the store had disappeared....
The stock market has until recently appeared to believe that prime “A” malls are largely insulated from the pain being felt across a US retail sector being shaken by e-commerce.

Shares in Washington Prime, an operator of lower quality B and C classed malls, are down by half since the start of 2015. However, until recently shares in “prime” mall operators Simon Property Group and GGP had held up, underpinned by the belief that their A-quality malls in prime locations were safe from the challenge of online shopping.......Yet there is growing evidence to suggest that these prime malls, which have been treated by investors and lenders alike as rock solid bets in the face of the internet headwinds, are not as protected as once thought.

Shares in Simon Property, the largest Reit in America with a market value of $50bn, are down by almost 30 per cent over the past 12 months, having held up strongly to the middle of 2016. Short interest in Simon, which tracks the amount of shares hedge funds have borrowed to bet that its value will fall, rose to the highest level since the financial crisis last month, with bets worth more than $1bn.....The hedge funds wagering against the highest quality malls believe that the wider market will come to believe these A-quality malls are far more similar to lesser ranked ones. “This idea that there are these magic malls in America that are immune to secular change is a myth,” the US-based hedge fund manager says.

Some argue that the market under-appreciates that A class mall operators and B and C class mall operators all have very similar tenant bases, in spite of being in different locations. L Brands, the owner of lingerie chain Victoria’s Secret, is the largest single tenant for prime operator GGP, according to company filings.....it is also the biggest tenant for the lesser ranked CBL and second largest for Washington Prime.....Russell Clark of Horseman Capital notes the vulnerability malls have to the loss of single big brands, known as anchor tenants, with their departure often triggering a wave of rent loss with other tenants.

“Many tenants have a clause in their lease to reduce rents should an anchor close a store. Thus, even though the loss of rent due to an anchor closing is minimal, the knock-on effect of reduced rents from the remaining tenants is a serious concern,” he noted.....the hunt for opportunities to bet against quality malls outside the US. The share prices of Intu Properties and Hammerson, the UK’s largest publicly listed shopping centre operators, have not yet followed the falls seen in the shares of their largest tenants.
shopping_malls  commercial_real_estate  real_estate  MappedIn  mapping  hedge_funds  primary_field_research  pop-ups  store_closings  pretense_of_knowledge  illusions  under_appreciated  retailers  vulnerabilities  anchor_tenants  REITs  L_Brands  A-class  B-class  C-class  Victoria's_Secret 
july 2017 by jerryking
Mall Landlords Roll the Dice With Tech Investments - WSJ
By Esther Fung
Updated June 20, 2017

Mall landlords are investing millions of dollars in technology to help protect them from the changes buffeting the retail sector as internet shopping gains a stronger foothold.

Some of the investments aren’t faring so well.

Macerich Co., one of the biggest U.S. mall owners, last quarter wrote off $10 million invested in a startup that purported to help online and European retailers expand their physical store presence in the U.S......landlords face growing pressure to remain relevant, and are investing more resources to understand the industry’s disrupters. Larger landlords with stronger balance sheets, such as Simon Property Group and Westfield Corp. , have been setting aside millions of dollars for incubators to take on risks similar to venture capitalists......“The real-estate technology industry is heating up, bringing along with it quite a bit of noise,” said Hongwei Liu, CEO of MappedIn, a six-year-old Canada-based firm that provides indoor mapping and search software for property owners.

The firm has developed digital maps for more than 300 U.S. malls, including for the top mall REITs.
shopping_malls  landlords  technology  MappedIn  mapping  risk-taking  retailers  indoors 
june 2017 by jerryking
A Snowier Silicon Valley in BlackBerry’s Backyard - NYTimes.com
By IAN AUSTEN
Published: December 22, 2013

Stacy Tozer : While friends and relatives were skeptical about her plan to return, Ms. Tozer had several job offers. In the end, she took a 75 percent pay cut to become director of marketing at MappedIn, a start-up that creates online interior maps of large buildings like airports and shopping malls. At 30, Ms. Tozer is her new company’s oldest employee. She believes that she will ultimately surpass her old salary, but that will depend on MappedIn’s prospering.

“In Seattle, I was very connected and I’d been headhunted by a number of major companies,” she said. “As much as I love Seattle, it was an individualistic, career-driven situation. Here it’s not about competition. It’s about building a community helping other companies grow.”
start_ups  Blackberry  bouncing_back  Second_Acts  MappedIn  Kitchener-Waterloo 
january 2014 by jerryking

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