9-15-17

8A — September 15 - 28, 2017 — Appraisal — Financial Digest — M id A tlantic

Real Estate Journal

www.marejournal.com

A ppraisal By Joseph D. Pasquarella, MAI, CRE, FRICS

Brick and Mortar Retailers Must Embrace Innovation and “the Shopping Experience”

soar to new heights, tra- ditional brick and mortar r e t a i l e r s continue to shrivel and vanish from bustling city s t ree t cor - W

hile e-commerce giants like Ama- zon and Alibaba

that will continue brick and mortar options. Which strategies are brick and mortar stores successfully employing to cater to custom- ers’ evolving preferences? It is our observation that retailers that leverage interactive retail strategies, wisely select their physical site, and take advan- tage of big data by analyzing consumer behavior bear the most successful outcomes. The assimilation of interactive experiences and marketing techniques to entice sampling and other forms of experience are paramount. Selecting the

right retail venue is also cru- cial. Decision matrices are fre- quently utilized to identify the most appropriate locations, whether in a mall/shopping center or freestanding facility. The matrix output could lean toward a grocery anchored center, a more interactive cen- ter with a heavy concentration of restaurants, or locations with prepared food as well as entertainment uses. Another practice of successful retailers is the aggregation of big data to analyze, understand, and cater to customer behavior and preferences.

The Philadelphia retail mar- ket is mirroring these trends as malls like the King of Prus- sia Mall, Moorestown Mall, Cherry Hill Mall and Fashion Outlets of Philadelphia (the former Gallery Mall) demon- strate offerings that are built for “the shopping experience.” The Simon-owned King of Prus- sia Mall recently invested more than $260MM in the expansion of the mall, adding more than 100,000 SF of retail, a customer lounge, and dining choices from Philadelphia’s well-known ce- lebrity chefs in hopes of enhanc- ing its shoppers’ experiences.

Frederick Grubbe Appraisal Institute accepts CEO’s resignation CHICAGO, IL — The Board of Directors of the nation’s larg- est professional association It is not enough for retailers to simply display merchandise when these same products are only a few clicks away on mo- bile devices. Today’s successful brick and mortar retailers are embracing the reality that they must innovate or vacate. Joseph D. Pasquarella, MAI, CRE, FRICS. n Then there is PREIT’s Fashion Outlets of Philadelphia that will also focus on the customer experience. Its strategy involves shifting the tenant mix to in- clude a fusion of outlet retail, traditional mall retail, artisanal food experiences, and exciting entertainment concepts. The Board appointed Ap- praisal Institute 2017 presi- dent Jim Amorin, MAI, SRA, AI-GRS , as the organization’s Acting CEO. Amorin also will continue as president through his one-year term, which ends Dec. 31. The Appraisal Insti- tute will immediately begin a search for a new CEO. “I have enjoyed my tenure at the Appraisal Institute, and I am grateful to have had the op- portunity to work with so many fine people over the years,” Grubbe said in his resignation letter to the AI Board of Direc- tors. “I am proud of what we’ve accomplished, and I wish you nothing but the best in address- ing the many issues you have before you.” The Appraisal Institute Ex- ecutive Committee – consist- ing of Amorin, president-elect James Murrett, MAI, SRA; VP Stephen Wagner, MAI, SRA, AI-GRS; and Immediate past president Scott Robinson, MAI, SRA, AI-GRS – said in a letter to the AI Board of Directors: “Fred dedicated himself to the Appraisal Institute and its members and laid the ground- work for the association’s future. We wish Fred well in his future endeavors.” n of real estate a p p r a i s e r s accepted the resignation of CEO Freder- ick Grubbe, MBA, CAE a f t e r mo r e than 10 years of service.

Joseph Pasquarella

ners. It’s no secret that cur- rent consumer trends favor the speed and convenience of the online shopping experience. However, there are retailers

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