Earnings came out for some of the major retailers in the last few days. July is shaping up as a tough month for sales which is also hurting second quarter results.
Back to school sales are down, and retailers are trying to survive. One analyst I heard expect sluggish sales to continue through XMAS. Let’s hope he is wrong.
Quickest way to reverse sales slump is to reverse negative employment trends so that:
1) there is more disposable income in the system
2) the psychological effect gives comfort to those who are employed that it is okay to spend.
However the reversal in employment is s not going to happen soon. We will still be losing jobs for a few more months
Consequently, marketing the centers and your retailers is key to combating declining sales. The trick is to spend minimally. Here are a few suggestions:
1. Bartering with the media – Exchange, physical space in the mall for advertising. Whether asking the media for print or air time, offer up available places on the property to hang the media’s logo and any special event they may want. Consider asking them to co-sponsor an event that the property would have held anyway. Retail properties have numerous signage opportunities:
a) Signs along the property walkways,/mall corridors
b) Inside vacant storefronts
c) Flyers/brochures in upright stands or in soft seated areas, food courts and customer service desks. Also table top advertising and giving out premiums.
d) Existing electronic readerboards – indoor or outdoor
2. Fill vacant store fronts with merchandise from existing retailers – Offer existing tenants the right to fill vacant store fronts with merchandise. In good times you could charge rent for these spaces but in tough times helping your retailers survive is paramount. The property will look more occupied and makes a better appearance. Conversely, avoid filling up an empty wing or side of a center with signs that scream “For Lease”. It will make the center look desperate.
3. Host community service events that attract the media – Food and can drives, blood drives, clothing drives, medical check-ups, reading hour in the soft play area etc. help your communities while you help your property. Talk to hospitals and the County Health and Human Services asking what you can do to help. Speak to local town officials about what is needed in the community. Invite the leading personalities of the community to speak at the event: Town and county officials, mayors and anyone else who might be beneficial to your center. Often they will assist with marketing the event. The media loves this type of news story.
4. Providing retail customers with lists of stores promotions for the week - at central locations will make it easier for them to comparison shop.
5. Co –promote with your retailers - - Sometimes they will want to do their own promotion and pay for it and you may not be aware of it. With a little effort from the property manager or marketing director, tenants may be willing to cross promote in print ads (local tenants often use Penny Saver or Valu-Pak inserts). Ask them for gift cards, discount coupons or merchandise to raffle off at an event or hand out as a promotion.
6. Continually talk to your retailers. Often they have great ideas to help market the centers and may be willing to defray significant amounts of a company promotion.
KEEP MARKETING TENANTS WHOSE RENT IS BASED UPON PERCENTAGE RENT. - Profit goes to your bottom line. Those that by some miracle are near or over your breakpoint keep marketing them as well for the same reason.
KEEP AN EYE OUT FOR ANY TENANTS THAT ARE BELOW YOUR SALES KICKOUT - There may be a slight chance you can save them by promoting their wares.
Subscribe to:
Posts (Atom)