Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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330 • SHOPPING CENTER BUSINESS • MAY 2015 up 25 percent of all adults, but hold 29 percent of all net worth and 31 percent of all annual income earned. Half of them want to provide for their kids' college, and almost all want to save for retirement. Two-thirds plan on traveling for pleasure in the next year, and half will buy one or more luxuries. • Boomers, on the other hand, buy things for themselves and their grandkids. They are omni-channel and know their way around the Internet of Things. They expect hype in their advertising because they invented it ("Mad Men," anyone?). They are early adopters of smart medical devices and are very critical about experi- ential retail, again because they invented it. While we're at it, here are some char- acteristics of Gen Y and Gen Z. Gen Y is completely omni-channel, and have said that they will pay for responsible products, although this has not yet been proven in the market. They will be early adopters of smart wearables, especially sport gear such as watches. They want a seamless shopping experience and they do not want hype. Because of all the informa- tion thrown at them by their various smart devices, they want their lives simplified, so they have "curated" everything from experiences, to vacations, to cooking, shopping, to putting together furniture, to decluttering their lives. Think YouTube, Yelp, H&M and Zara (fast fashion), shop- ping sites, and Pinterest. Because there are so many of them, and because they are just starting to become a force as couples, they are the generation that will take over next. Gen Z is a whole other puzzle. They are not old enough to have much money of their own, but they will in the next 10 years. They are overscheduled, but they are completely omni-channeled, cutting across every platform of technology. They are extremely entrepreneurial and want to be heard. They also want to try out products before they buy. In order to ap- peal to them now, you have to continually innovate and evolve digitally because they live on their devices. The world is complicated today and is becoming more complicated as we evolve and innovate with our shopping methods and choices. The Internet of Things, such as magic RFID tags, augmented reality, delivery drones, curated experiences, wearable technology and life hacking are among the many new experiences we must excel at and then change our prod- ucts and communication as they change. It is a brave new world. SCB Jill Bensley is the president of JB Research Company, based in Oxna rd, California. She can be rea ched via email at jill@ jbresea rchco.co m ACQUISITION CRITERIA Transaction values (including equity and debt capitalization) range from $2 million to $50 million Greg Scheper gscheper@vikingprt.com 513-985-1113 Lev A. Orlov lorlov@vikingprt.com 513-985-1115 please contact us for more information: PROPERTY CHARACTERISTICS • Class A and B • Value-add opportunities • Core plus assets GEOGRAPHIC PREFERENCES • Primarily Midwest and Southeast U.S. • Other markets will be considered if strong demographics and dynamic economies support investment in the region TARGETED INVESTMENTS • Anchored neighborhood and community retail centers • Unanchored or shadow-anchored shopping centers • Will consider secondary and tertiary markets • Sub-performing or non-performing loans secured by retail and office properties • Portfolios that include retail assets • Development equity • Rescue Capital Seniors 16% Millennials 21% Gen-X 29% Baby Boomers 34% Share of Total Net Worth Dollars Source: Shullman Pulse Seniors 11% Millennials 18% Gen-X 31% Baby Boomers 39% Share of Total Income Dollars Source: Fall 2013 CPS

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