Indie Retailers and Social Media: Perfect Together?

Retail Trend Watchers Say Social Is Under-Utilized Despite Its Potential
July is Independent Retailer Month, a time to salute those merchants across the country who account for half of the annual total retail sales in the US. If our economy is to stay robust, independent retailers of all sizes need to thrive. For the smaller players in this sector of our industry, social media seems like the magic bullet. It’s pervasive, influential, and inexpensive. In addition, platforms like Facebook, offer pinpoint targeting, that matches messages to prospects.

So why aren’t more indies – especially the “Mom and Pops” – stepping up to social? Roughly one-quarter of independents have no social presence at all, and half of those who do have accounts use them inconsistently or post rarely. As regional leaders in commercial retail real estate, this is a trend we’re watching.

(Read more: https://smallbiztrends.com/2017/03/companies-that-do-not-use-social-media.html)

Why Social Media Matters to Small Businesses
As more consumers flock to social – 81 percent of the US population are on it – they expect to find local retailers there. And they expect those retailers to have websites, as well as social presence. Half the respondents to Time Warner Cable’s Small Business Technology Impact Study said they avoided businesses without websites, believing they are not credible. Thirty percent said they may not buy from a company without a social media presence, with females and millennials rejecting businesses without social at an even higher rate. Fifty percent of millennials stated they preferred businesses with active Facebook pages.

Ninety percent of the small retailers who do use social media are on Facebook. In fact, many substitute their Facebook pages for websites, a solution that, in spite of the platform’s popularity and influence, fails to impress potential customers for whom a web presence signals credibility. Bottom line? Small retailers need to think bigger and go with both a site and social for maximum success.

What’s Keeping Indie Retailers Off Social Media
With so much to gain (or lose) and so much competition, why are some indies ignoring or under-utilizing social? Respondents to the recent Clutch 2017 Small Business Social Media Survey say the primary barriers are the time social requires and doubts about ROI. And a recently released study from Infusionsoft says that half of the small businesses they surveyed had no idea what their ROI was and 14 percent believed their investment in social was not delivering a quantifiable payoff. Still, half said they plan to push forward with their online efforts.

From Special Offers to Personal Stories: Social Is Empowering the Indies
While some are missing out on the benefits of social media, many indie retailers are enjoying brand exposure and growth in traffic – both in-store and on the web. Their tactics include:

Storytelling: Millennials especially respond to the personal stories of entrepreneurs, told on social platforms like Facebook or on a website.

Special Offers: Those old reliable – coupons and special offers – are finding a new life on social.

Seasonal Events: In store-events, promoted on Facebook and sometimes livestreamed, are proving to have strong millennial appeal.

How To’s: Recipes, demonstrations, useful information of all kinds are social gold –

especially in video format on Facebook or YouTube.

Charity Tie-Ins: Socially conscious millennials tend to be responsive to social media-based tie-ins to local charities and community fundraisers.

Dialogue: Website visitors and social media followers alike expect responses to their comments and/or questions. Savvy retailers also monitor the major review platforms like Yelp for mentions of their business. Whether positive or negative, they leave a response.

Mobilization: Mobile technology is shaping the nature of shopping. Responsive design that makes websites mobile friendly is essential. And merchants who offer mobile payment options are cashing in with – you guessed it – the millennials.

Social media is no passing fad. Generation Z, the demographic wave behind the millennials, are true digital natives who live the online life. That includes not just online browsing but discovering and connecting with physical stores in their neighborhoods –

often the indies. And the place where this next generation is most likely to connect is in the palm of their hands – on their phone or tablet. Smart indies will make sure they’re there to meet them.

 

Fasten Your Seatbelts: Generation Z is Ready to Shop

Retail Trend Sees History’s Most Demanding Consumers on the Horizon There’s no rest for the retailer. Just when you thought you’d mastered Millennial marketing, along comes a new wave of consumers you’ve got to figure out. Dubbed Generation Z and 70 million strong, this rising demographic will represent 25 percent of the US population by 2020. It’s time to get ready for what retail trend watchers say will be the most demanding consumers of all time.

Raised Online and Digitally Addicted: Meet Generation Z
Gen Z members are still very young (13 to 18), so it may be difficult to draw too many solid conclusions about their eventual buying habits. But a number of factors are likely to define their future behavior. Consider the following about them:
-First generation born in the 21st century
-Grew up in challenging economic times
-Never knew a world without the Internet
-Citizens of an on-demand culture
-Tethered to technology since their earliest days

That said, a picture emerges of a consumer who expects instant access to everything and who relies on digital resources for discovering what they want and for getting it when they want it. Forty-percent of Gen Z claim they are “addicted” to their digital devices.

Where to Reach The Z’s: Instagram, Snapchat and YouTube
Characterized by their short-attention spans and love of novelty, it’s no surprise that Z’s prefer quick visual communication. Instagram, Snapchat and YouTube are their platforms of choice. In fact, 72 percent say they visit YouTube daily. Streaming movies and music is a way of life for the group – over half do so daily – obviously a result of their on-demand orientation. And gaming is a major focus with a high degree of interest in virtual reality.

Z’s Are Different from Millennials in Surprising Ways
While both these age cohorts are intense social media users, Millennials (age 19-34) are more influenced by it than Z’s. Over half of the older group (58 percent) credit social as a top purchasing driver. Only 53 percent of the younger demo names it as their major influencer.

Millennials, as we know by now, are active reviewers of brands and experiences, sharing their opinions across the social media spectrum. Z’s much less so. Millennials are 40 percent more likely than Z’s to get their viewpoints out. Will the younger group grow into word-of-mouth as they mature? That’s something worth watching.

Gen Z’s were shaped by the uncertain economic environment of the last decade. Despite this experience, they are much less likely to be bargain hunters than the Millennials. The older group is 29 percent more inclined to check and compare prices before and during shopping trips. The Z’s milder interest in pricing may be due to the fact that the majority are not yet living independently. Will they acquire the Millennials’ cost consciousness as they move out on their own? Another retail trend to watch.

Don’t Miss Out on Marketing to Generation Z
Z’s are still in their formative years, but here’s what Deborah Weinswig, managing director of Fung Global Retail & Technology foresees. “Exposure to near-infinite choice and near-endless information makes this generation more demanding than any of its predecessors. As Gen Z matures, it will become more discerning, but its demanding nature is unlikely to be diluted. We think brands and retailers will be the ones that need to change, because Gen Z is unlikely to compromise on its high expectations.” Read more about Gen Z’s consumer demand here.

Yes, today’s tweens and teens will soon be full-fledged consumers with new and unique habits and demands. Savvy retailers should be ready to accommodate them. Sharpen your visual messaging now. Get active on Instagram, Snapchat and YouTube. Stay up to the minute with mobile marketing. Be ready to deliver at warp speed. Develop incentives for the Z’s to follow you on their platforms of choice. A new breed of shopper is heading your way!

For more information on Generation Z:
https://iei.ncsu.edu/wp-content/uploads/2013/01/GenZConsumers.pdf

http://www.huffingtonpost.com/deep-patel/6-trends-for-generation-z_b_11227446.html

Retail Real Estate Trend: Non-Traditional Tenants Go A-List

Web-Proof Services Are Attracting Landlord Interest as Some Retailers Falter

Last month I served on a panel at ICSC’s PA/NJ/DE Conference and Dealmaking event in Atlantic City. My group’s discussion focused on non-traditional tenants and their growing popularity in commercial retail leasing. On the four-person panel, I was the sole spokesman for the landlord side, with the rest of the members representing non-traditional tenants who lease space (or want to lease) in shopping centers. As might be expected, they were all attracted by the visibility, convenience and traffic a popular shopping center offers. They want to be where the customers are. No surprise there.

At Levin, we have many non-traditional tenants under lease – fitness centers, health services, day care providers, gaming centers, and, of course, restaurants. Not long ago, like most managers in the business of commercial retail leasing, we were reluctant to go with tenants other than more traditional retailers. That’s changed big time. I’d like to tell you why non-traditionals are now on our A-list.

Behind the Trend #1: Non-Traditional Tenants Are Amazon-Proof
While many retailers are struggling against branded online stores and behemoths like Amazon, service businesses face no web-based competition at all. WebMD can’t stitch up a cut. YouTube videos are no substitute for a Nautilus circuit or Spin class. You can’t leave your toddler with babytv.com while you work. You get the point. Services and experiences can’t be provided by the Internet (at least not yet). We in commercial retail leasing like that. We’re looking for tenants that are fiscally solid and likely to stay that way.

Behind the Trend #2: Service Businesses Drive Traffic
In our era of the time-starved lifestyle, people look to consolidate as many of their errands and activities as possible. A shopping center that offers the opportunity to combine a fitness session with grocery shopping and a prescription refill will draw traffic, benefitting multiple tenants and attracting new ones. Our grocery tenants, for example, report a substantial flow of customers from their fitness center neighbors. That’s a win-win-win for the tenants, landlord and shoppers.

Behind the Trend #3: Long Leases and Solid Financials
Non-traditional tenants typically seek longer leases, often because of the higher construction costs due to the more extensive build-outs they initially require. They also tend to be stronger financially and have better credit than many of today’s retailers. Both these qualities make them a highly desirable addition to the tenant mix.

Non-Traditionals Do Pose Some Challenges in Retail Leasing
Since nothing’s perfect, we have to consider the challenges that these businesses – appealing as they are – present. The most common is parking. A fitness center user, for example, may tie up two hours of parking space per visit. We’re always very careful to assure that there’s adequate parking before any new lease is signed. Another roadblock may be image. Some specialized medical centers, for example, can seem out of place among the existing mix of restaurants, boutiques and entertainment providers. We’re sensitive about overall image and have declined some prospective tenants that weren’t a good “fit.”

At Levin-Managed Properties Non-Traditionals Are Here to Stay
Our portfolio has many fitness centers, which are now considered mainstream uses in today’s shopping centers. Levin-managed properties are home to most of the major national brands, including Blink, Crunch, LA Fitness, Leisure, Snap and Planet Fitness.

More health services are coming on board with us. We just signed a lease for 2,500 square feet at our Mayfair Shopping Center (Commack, NY) with GoHealth, a walk-in clinic. This medical services model is growing rapidly, with a third of the new establishments situated in shopping centers. We expect to see more of them as Levin tenants in the near future. Physical therapy services are interested in shopping center space, too. A Kessler rehab is located in our Aldrich Plaza (Howell, NJ).

Daycare (Apple Hill Academy and C2 Education Center), postal services and even a vet, along with restaurants and the popular gaming chain Dave & Buster’s evidence Levin’s interest in cultivating this new segment in commercial retail leasing. Non-traditional tenants meet the needs of today’s consumers – and even boost business for our traditional retailers. A combination that works quite well