Chris Haedrich and I had a productive time seeing old friends and meeting new ones at the ICSC Monterey Idea Exchange last week. The weather could not have been more beautiful and the setting at the Hyatt Regency in Monterey was perfect. The meetings and programs highlighted the energy in the retail sector across the state and nation. One of the more interesting presentations was the keynote programs with Sarah Quinlan, Senior Vice President with MasterCard International Incorporated.
Sarah Quinlan was an excellent presenter and provided many factual figures of the spending activity in the nation and local level. Here are a few facts that I found very interesting;
- 85% of retail shopping uses cell phones.
- 75% of retail shopping is done by women.
- Of all retail shopping, 8.4% is online sales, which is mainly due to the return component.
- Chip in charge card moved the fraud to online.
- Retailers need to create the experience in the store because shopping is social.
- Restaurants are primary spending sector and the first retail visited when going shopping.
- Restaurants and airlines make up the biggest areas of spending.
- Millennials have the biggest wage growth and aren’t moving out of the City for larger homes. “Buying bunkbeds for the family instead of a larger home in the suburbs.”
- Now Americans are spending more on restaurants than groceries; 52% on restaurants and 48% on groceries. First time ever.
The take away from her presentation was to accommodate the biggest spender in the household, the woman. The woman of the household now works to support the family and requires a shopping experience and more accommodating hours around her work schedule. “Brick and mortar” is here to stay if the companies can provide the experience to the consumer. In fact, at the breakout presentation for P3 Retail there was a discussion on D2C (Direct to Consumer) companies looking at retail store outlets to increase growth. The retail component that is driving the centers is restaurants and will continue. Hands down people want social interaction and experiences with every aspect of retail.
Many great presentations and meetings were accomplished at this year’s ICSC event and we look forward to next years!
About Ryan Haedrich
In 2006 Ryan Haedrich joined Haedrich & Co., Inc. after working for three years in the commercial lending industry. He is a graduate of the California Bankers Association Commercial Lending School. Ryan is knowledgeable about all areas of commercial financing, commercial appraisal reviews, and title and escrow. He is an alumnus of University of California, Santa Barbara and received a B.A. in Business/Economics with an emphasis in accounting. Go Gauchos! Ryan holds the Certified Commercial Investment Member designation (CCIM), which recognizes him as an expert in the commercial and investment real estate industry. Aside from exceeding clients' expectations in commercial real estate, he loves to spend time with his wife and two little boys, which is most important.