MALL IDATA-BASED STORE SELECTION MIX Creating the Optimum Tenant Mix for Your Shopping Center 5A ENVIRONICS MM™* aAnaAtyticsSELECTING TENANTS BASED ON INSTINCT DOESN'T CUT IT ANYMORE For the first time, you can make critical retail tenant decisions based on hard data and smart analytics Choosing the right retailers for your development is one of the most important factors in creating successful shopping centers. For years, developers have relied on instinct and assumptions to make these critical decisions. But now there is a better way, one that takes advantage of data and the science of customer segmentation to help developers and leasing managers create the optimal tenant mix. Based on the values, spending levels and shopping style ‘of consumers in a trade area, MallMix employs a data-driven methodology to help you select the right assortment of stores for any location in Canada and the U.S. With Maldix you can create the ideal tenant mix, reflecting the lifestyles, spending patterns and shopping tastes of area consumers. MallMix uses a three-part analysis to develop insights that drive decisions 1. Define the target audience in your trade area. Using data from Environics Analytics, analysts first determine the lifestyles and spending levels of trade area customers on key categories, such as men's, women’s and children’s apparel and footwear. 2. Assess how your retailers cover the market. Analysts next identify the unique shopping style of area consumers—whether their These data-driven matrices allow analysts to compare actual sales at current stores to the market expenditure potential for specific retail categories. The data-based analysis helps you determine the ideal store imix, create fact-based projections to attract specific retailers and develop marketing campaigns targeted to current and prospective customers. tastes ate traditional, contemporary ff avant-garde—and then assess whether the current tenant mix results in gaps or overlaps. 3 3. Determine the sales and 2 poh 5 revenue growth potential = Finally, industry experts at J.C 2 Willams Group classify current § edu stores by shopping lifestyle and ZB suse price point—examining factors 3 such as sales, merchandise style, 3 store design and product pricing— ae ‘and highlight opportunities for = 656 improvement and revenue increases, |B Total e705 Traditional Women’s Apparel: Trade Area Spending by Lifestyle Discretionary @ 1% 6 ¢.. 0k $124 @s10. Contemporary Avant-Garde Lifestyle Groups Data modelling determines the potential spending in specific categories within a trade area, plotted against key lifestyle groupingsThe costs of developing and renovating shopping centers are higher than ever. But you can reduce the risks by understanding what your target consumers want. Effective for any size development anywhere in Canada and the U.S. From local shopping centers to large, regional malls, all retail developments have an ideal store mix. MallMix takes the Women’s Apparel: Store Performance guesswork out of the equation and reduces the risk of not aligning retailers to the population being served. It's a lo win-win-win: Customers get the stores they want, retailers ah get the customers they need and developers get the rents ? o they deserve 3 ot . ith detai em | Go deeper with detailed analyses of |: ec tenant performance oe e + Identify imbalances between commodities, such as Lifestyle Appeal 2 poor balance of contemporary stores between men's, wear and women’s wear. ‘Malic makes it easy to assess performance and opportunites for improvement. + Determine whether shoppers are underserved in key product groups, such as a lack of contemporary footwear to match strong contemporary appeal + Clearly identify the revenue potential for each commodity group based on the mal’ lifestyle and + Detect underperforming stores according to lifestyle income appeal to area customers. Asset managers and and income measures in the MallMlx assessment matrix leasing professionals can then focus on maximizing the for each commodity group. mall's gtoss revenue Women’s Apparel: Store Positioning Key Metrics i ° i sate 2 2 Ea i . : Eas i i Lifestyle Appeal Lifestyle Appeal With Mall, you'l understand the unique lifestyles of area Mali identities areas of opportunity fo increase gross revenue consumers and whether stores are positioned to reflect them. for a shopping center or mal, MallMix gives senior management, leasing and asset management teams a never-seen-before analysis of mall productivity that relates directly to a specific property and the surrounding area.CREATE A RETAIL MIX THAT REFLECTS THE LIFESTYLES AND SHOPPING PATTERNS OF AREA CONSUMERS. Women’s Apparel - Lifestyle Map Lifestyle maps display the clustering of women's apparel retailers by price point and lifestyle type within the shopping center. ‘Women’s Apparel - Performance Map —= Performance maps display the clustering of women’s apparel retailers by sales per square foot performance within the shopping center * Detect where stores are weak and clustered ‘© Get a custom tenant report card that will assess together, revealing mall areas that are unappealing and detract from a positive shopping experience * Identify stores that shoppers are choosing to forego—and taking their business elsewhere. With this knowledge, you can target these stores and seek new tenants to replace weak performers. each retailer in the center by ten different factors that affect performance. Every mall receives an objective rating and a report detailing the performance of each tenant, helping you decide whether to renew a lease, require a store upgrade or take other action to improve performance. With MallMix data and analysis from J.C. Williams Group and Environics Analytics, you'll make more informed decisions, develop concrete action plans for the best possible tenant mix strategy and maximize rent revenue. =A ENVIRONICS MMR ANALYTICS MARK LEBOVITS, Sales Consultant mark lebovits@environicsanalytics.ca 416,969,3539 33 Bloor Street East, Suite 400, Toronto, ON MaW 3H1 environicsanalytics.ca ROA GIBBR IL ene GLobaL RETAIL JOHN C. WILLIAMS, President jwilams@JCWG com 416.921.4181 17 Dundonald Street, 3rd Floor, Toronto, ON MaY 1K3; www jewg.com