"13 brands who get it right"

1. The Retail
Innovation Factor
13 brands who get it right

2. Retail is in the midst of a
dramatic disruption.

3. But, this does NOT
mean brick and mortar
retail is dead.

4. In fact...

5. Close to 90% of purchases
still occur in store.

6. The key shopper demographic
MILLENNIALS
have demonstrated that they are not
traditional shoppers. They hunger for
experiences and a personal
relationship with brands.

7. And, in-store customers are often
more loyal. According to Birchbox,
its in-store customers have
3X the lifetime value.

8. Smart retailers understand the
benefits of the in-store experience
to consumers. At its core are
discovery, trial and
instant gratification.

9. A 2016 survey revealed that
85% of consumers
prefer in-store shopping to online,
due in part to the personalized and tangible
experiences physical retail can deliver.

10. How are brands capitalizing
on today’s brick and mortar
experience?

11. Traditional Retailers
In-store innovation
separates winners
from losers

12. & Other Stories nails the
“total brand” experience.

13. Each seasonal collection has a story of its own.
For example, the fall collection offers four “stories” each
based on a different city - Stockholm, Paris, New York
and Berlin. These stories are told both in-store and online.

14. The clothes, jewelry, lingerie and cosmetics all complement
and coordinate with each other. For example, the pink nail
polish matches the pink in the coat.
Everything is very purposeful, thoughtful, and intentional.

15. 2013 2014 2015 2016
H&M launches
“& Other Stories” – the
fast fashion giant’s answer
to the luxury market
Opens first U.S.
location in NYC
Opens second
NYC store on
Fifth Avenue
Opens stores in
Costa Mesa, CA,
World Trade Center, NY,
Georgetown in
Washington, D.C.
& Other Stories Timeline

16. “H&M continues to
dominate the apparel
category because of
their commitment to
brand storytelling and
new store openings in
strategic locations.”
- Nick Koeijmans,
Partner, RetailUnion

17. “Everyone is trying to think about how to differentiate and
distinguish their brands, and lifestyle is the way they’re doing it.”
- Dana Telsey, CEO, Telsey Advisory Group

18. Anthropologie & Co.
is taking experiential
retail to the next level.

19. Its 30,000-square-foot destination superstores* attract more
foot traffic and compel customers to carry on with their
shopping for more than 30 minutes.
*Locations: Walnut Creek, CA, Palo Alto, CA, Portland, OR, Newport Beach, CA,
King of Prussia, PA, Westport, CT (2017)

20. 75% of consumers prefer customized
experiences – which is the key to success
for retailers, whether they operate
through clicks or bricks.

21. “We love our stores.
It’s a way for us to
really connect with
the customer. They get
to feel [the brand],
not only through the
clothes but through the
environment and our
people.”
- Billy Reid,
Designer

22. “We really started Shindig to connect people to Alabama and
show them what we were doing. It started to expand to not just our
community, but to photographers, chefs, artists or musicians. Eventually
it became much more of a happening, sort of like a festival.” - Billy Reid

23. 2008 2010 2016
Opens Bond Street
Store in NYC
Launched the annual
“Shindig” event concept
Wins CFDA/Vogue
Fashion Fund Prize
Operating 13 total brick
and mortar stores in
nine states: NY, LA, GA,
TX, TN, AL, DC, SC, IL
Billy Reid Timeline
2017
Taking Shindig
event concept
“on the road.”

24. “Billy Reid goes above
and beyond, leveraging
real estate, curated
events and southern
hospitality to connect
with customers and
build fierce loyalty.”
-Daphne Berger,
Vice President, RetailUnion

25. Consumers appear to favor services and
experiences over merchandise. By 2020,
consumers will be spending $2 on services
for every $1 they spend on stuff.
services merchandise
vs

26. “We incubated MiniLuxe with the vision to ‘Starbucks’ the nail salon and
bring more professionalized standards to the industry.”
- Tony Tjan, CEO & Managing Partner, Cue Ball Capital

27. 2007 2014
Opens first salon in Netown,
MA with $1 million in seed
funding from Boston’s
Cue Ball Capital
Secures $23 million
in Series C round of
funding from outside
investors
MiniLuxe Timeline
2016
Now there are
18 MiniLuxe locations
and counting in CA,
MA, RI, TX

28. “MiniLuxe has done for
nail salons what Starbucks
did for coffee shops. They
have elevated a weekly
necessity into a luxurious
and pampering experience
located right in the
neighborhoods of their best
customers.”
-Carey Moen,
Vice President, RetailUnion

29. Luxury fashion houses are opening
a wave of stand-alone
“Beautiques”
to create brand awareness and
attract the Millennial customer.

30. Dior opened four beauty boutiques in the US: Forum Shops at
Caesar’s Palace, Valley Fair in Santa Clara, Highland Park Village
in Dallas, and Westfield’s World Trade Center NYC.

31. “This move is a bid to embrace a younger customer who
perhaps feels too intimidated to shop in Dior’s fashion
boutiques, or who maybe didn’t see herself as a department
store counter customer.” - BeautyMART

32. E-tailers
Driving sales growth
through physical
storefronts

33. There are more than
800,000 online stores
all vying to attract customers through the
gateway of Google.

34. “It’s very hard to launch a brand these days that’s just online-only.
It’s an incredibly difficult and crowded e-commerce environment.”
-Sucharita Mulpuru, Retail Analyst, Forrester Research

35. Omnichannel shoppers buy
254% more on average
than single channel shoppers.
Single channel Omnichannel

36. “Consumers want an
on-line experience in a
three-dimensional retail
setting. That’s really
what we think the
Millennial customer is
interested in--having a
holistic, compelling
experience that’s
memorable.”
-Harvey Kanter,
CEO, Blue Nile

37. “We want to see if the one web room, which has really had great results,
can be extrapolated to five. And if five web rooms perform even similarly,
I think it would become part of the broader strategy and a major growth
initiative in 2017 and beyond.” - Harvey Kanter, CEO, Blue Nile

38. 1999 2015
Launches
online store
Opens first stand alone
brick and mortar
“web room” on
Long Island, NY at
Roosevelt Field Mall
Blue Nile Timeline
2016
Opens 4 web rooms:
The Westchester in NY,
Tysons Corner Center
in VA, Washington
Square in OR and
Bellevue Square in WA
2013
Tests brick
and mortar with two
“in-store” Nordstrom
locations

39. Warby Parker, an early online-only entrant,
opened its Soho flagship store in 2013 and
now has 36 stores in 17 states.

40. Warby Parker
stores average
$3,000
per square foot.
Co-founder Neil
Blumenthal said
he could envision
a future with
800 to 1,000
physical stores.

41. “We see a halo effect where stores themselves
become a great generator of awareness for our brand,
drive a lot of traffic to our website and accelerate
our e-commerce sales.”
- Dave Bilboa, Co-founder, Warby Parker

42. The average order
size in Bonobos’
stores has proven
to be
2X
that of online,
with a higher
proportion of new
customers also
coming through
the guideshop.

43. 2007 2012 2020
Launches
online store
Opens its fleet of brick and mortar
guideshops in response to digital
customers who wanted to try items on
before buying.
Plans to have 100 stores
open. Founder Andy Dunn
expects a “tidal wave” of
e-commerce companies to
make a similar leap.
Bonobos Timeline

44. “The Beverly Hills store is a sanctuary where people can feel and see
what we’re all about. We’re all familiar with Alo from seeing it on the
yoga instructor in the class, but to actually have a tangible place to
walk inside and experience it is pretty unique.”
- Danny Harris, Co-founder, Alo Yoga

45. 2008 2021
Launches online
store
Plans to have opened
19 more US locations
Alo Yoga Timeline
2016
Opens Flagship
Beverly Hills store

46. Food & Beverage
Destinations for
consumers seeking
experiences and
community

47. Eataly, the largest Italian market in the world, is “a
veritable theme park for foodies—Epcot for epicures,
if you will.” – Entrepreneur

48. “Since opening in
2010, Eataly has
emerged as one of
New York’s busiest
shopping destinations
and tourist attractions,
welcoming 8,000 to
10,000 guests each
weekday and 12,000
to 13,000 per day on
weekends.”
- Entrepreneur

49. 2007 2010 2013
Opens first
store in
Turin, Italy
Opens first
NYC store
near Madison
Square Park
Opens the largest store
in the U.S. on Michigan
Avenue in Chicago
Eataly Timeline
2016
Opens second NYC
store at Westfield
World Trade Center
2017
Opening first LA store at
Westfield Century City
2018
Opening at Park
MGM Casino in
Las Vegas

50. Wally’s Beverly Hills is
a small space – about
7,500 square feet
- that unites the
world’s best wine
with a contemporary
restaurant, hot social
scene and food market
together into one
experiential concept.

51. “We went from being a
traditional, small wine and
spirits store to reaching
out all over the world and
selling products globally.
The market has changed
dramatically. Our customers’
needs and desires have
also evolved. My goal is to
have a vehicle that allows
me to expose people
to food and wine in a
passionate, curated way.”
- Christian Navarro,
Co-owner, Wally’s

52. Non-traditional
Retailers
Disrupting old practices
and exploring new
avenues

53. Disrupting the auto sales model

54. Tesla started in Silicon Valley in 2003,
and now consistently produces
2,000 vehicles per week.
Tesla expects to deliver
80,000 cars in 2016.

55. “Traditional
independent
dealerships are usually
built on large plots of
land in out-of-the-way
locations. In contrast,
Tesla stores are better
off in areas that have
a lot of foot traffic like
malls and city centers.”
--Todd Maron,
General Counsel, Tesla

56. Transforming into an
auto AND mobility company

57. FordHubs are urban storefronts where consumers can
explore the company’s latest innovations, learn about its
mobility services and experience exclusive events.
Opening in New York, San Francisco, London and Shanghai.

58. “These aren’t places
where we’re trying to
sell something. We
want to hear people’s
thoughts, and we want
to show them what
we’re doing to solve the
transportation issues of
today and tomorrow –
and not just in their city,
but around the world.”
Stephen Odell, Executive
Vice President, Ford

59. Innovative Real Estate
Solutions for Bricks
and Clicks Retail

60. RetailUnion is a retail real estate firm
known for representing innovative
tenants and helping them find the
right location near the right brands
for the right price.

61. The leadership team brings 70+ years of
combined experience and unparalleled industry
relationships. They have secured tenant locations
in every top-rated shopping center and on all the
great streets of the world.
Koeijmans Robinson Moen Berger

62. RetailUnion tenant rep services include:
Market analysis
Strategic planning
Market tours
Sales projections
Financial evaluation/pro forma
Board and executive presentations
Site disposition
Economic and business negotiations
Lease execution

63. Want a winning growth strategy?
Contact:
Brett Robinson
brett@retailunion.com
214-243-8999
Nick Koeijmans
nick@retailunion.com
214-668-6244

64. Sources:
Slide 5: https://techcrunch.com/2016/04/18/the-next-frontier-is-retailing/
Slide 6: https://techcrunch.com/2015/07/13/beauty-product-subscription-service-birchbox-is-opening-more-brick-and-mortar-retail-stores/
Slide 7: https://techcrunch.com/2016/04/18/the-next-frontier-is-retailing/
Slide 8: https://storage.googleapis.com/realmassive-reports/The_Retail_CREcosystem_RealMassive.pdf
Slide 9: http://www.cnbc.com/2016/04/29/cramer-retail-isnt-dead-millennials-are-changing-the-game.html
Slide 15: http://fashionista.com/2012/09/hms-new-luxury-line-other-stories-to-launch-spring-2013
Slide 17: https://www.businessoffashion.com/articles/intelligence/anthropologie-super-store
Slide 19: https://www.businessoffashion.com/articles/intelligence/anthropologie-super-store
Slide 20: http://www.forbes.com/sites/didemtali/2016/09/13/high-street-retail/#7548844c36da
Slide 21: http://fashionista.com/2015/01/billy-reid
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Slide 23: http://www.fashionnstyle.com/articles/89392/20160831/jack-white-alison-and-matthew-mosshart-and-more-at-the-billy-reid-shindig-no8.htm
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venture-capital/#3e3d9be86487
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Slide 43: http://www.wsj.com/articles/warby-parker-bonobos-have-big-plans-for-physical-stores-1475767980
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http://newsroom.mgmresorts.com/mgm-resorts/latest-news/company-news/eataly-to-open-in-las-vegas.htm
https://www.entrepreneur.com/article/238389
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Slide 63: https://media.ford.com/content/fordmedia/fna/us/en/news/2016/01/11/fordpass.html