This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Best Retail Landlords Realize Importance of Bricks and Clicks

Stocks in this article: KIM SKT FRT TCO SPG

NEW YORK ( TheStreet) -- Even before the opening bell on Black Friday, investors had a hint, in the form of long lines outside retailers nationwide, that holiday sales would be strong.

The holiday retail sales season is a critical period in the yearly economic cycle: It's when many retailers push into the black and seal their annual profits. This year, it's shaping up to be another record season. Thanksgiving hours and shopping in both stores and online spurred an estimated 12.8% increase in U.S. retailers' sales over the four-day holiday weekend, an industry trade group said on Sunday.

According to a survey from the National Retail Federation, an estimated 139.4 million adults visited U.S. stores and Web sites from Thanksgiving through Sunday, up from 131 million last year. Total spending for the weekend rose to $59.1 billion from $52.4 billion last year.

The average holiday shopper spent $423 this weekend, the National Retail Federation said. That is up from $398 last year.

So Are Shoppers Using Bricks or Clicks?

Some of the best retailers touch their customers seamlessly, whether through e-commerce, catalogs, direct mail or brick and mortar. Technology has improved the customer experience at all levels: the front of the house, the logistics chain, its efficiency and pricing, and customer knowledge and service. Social media will continue to enhance the connectivity of the customer and retailer, but in this omnichannel world the brand is more important than ever.

A bricks-and-mortar strategy enables retailers to holistically present and establish their brands, create an experience that inspires customers and allows them to socialize and interact with others.

Kimco Realty (KIM), the largest shopping center landlord in the nation, is landlord to many "best in class" retailers including Home Depot (HD), Wal-Mart (WMT), Kohl's (KSS) and TJ Maxx (TJX). Dave Henry, Kimco's CEO and chairman, explains why "bricks and mortar" is a critical channel for retailers:

"It is increasing clear, with the striking success of Apple (AAPL) Stores, that product manufacturers (even Amazon.com (AMZN) in due course) need physical showroom space and stores in high-traffic retail centers. Combined with the growing demand for neighborhood goods and services of all kinds -- restaurants, health clubs, theaters, etc., -- together with an increasing population, very limited new supply, and the strong probability that e-commerce retailers will have to collect sales taxes, the future continues to be bright for brick-and-mortar stores."

Tanger Factory Outlet (SKT), the only pure outlet-focused REIT in the nation, has also forged a strategic social network that integrates the brick model with the click model. Tanger's president and CEO, Steven B. Tanger, says the following:

"Obviously, the convenience and 24/7 availability of e-commerce resonates strongly with consumers, but while online and mobile sales continue to grow, I do not believe that it takes away from consumers' excitement over visiting brick and mortar shopping centers. At Tanger Outlets, we are continually bringing in more in-demand designer and brand-name tenants to provide in-season and on-trend merchandise for our shoppers. Outlet centers provide a one-stop shop that offers great brands at a value price, in one location, in contrast to shopping online where consumers have to search for deals for their favorite brands individually. We also understand that the shopping experience itself is as important as the products that our tenants sell, which is why we fill our centers with dining options and often host concerts or special events at our properties. We want to ensure that we provide those traveling to visit our centers a unique and exciting shopping experience that cannot be replicated online."

The Evolution of Retailing

It is clear that many of the best retailers and shopping center owners are focused on giving consumers more than just an outlet to purchase goods. Beyond the basics, they are focused on creating positive, exciting, interactive experiences by leveraging their physical presence and the convenience of technology ... and whatever inventions in the way humans live -- and shop -- develop in the coming decades.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs