KNOWLEDGE
THE EVOLUTION OF LEASING MODELS Part of the issue in retail is both landlords and retailers have been primarily focused on shaping their own business models to changing consumer behaviour, rather than on exploring how rent structures should adapt.
A welcome study from ICSC has suggested a range of newly emerging flexible rental models that can reflect the importance of a store in the wider ecosystem for a brand – using exactly this type of data.
One idea removes store turnover entirely and centres around ‘Shopper Exposure’ – using our measure of ‘Total Shopping Hours’ for a location.
Allocations for each store could then be made based on their share of shopping hours, to reflect the ‘Opportunity Afforded’. Perhaps a weighting could also be made to reflect digital exposure – given the tools are available to measure location based web performance.
This could include a share in uplift of local website visits and transactions following a store launch and could adopt a similar revenue structure to a Google, Facebook or Instagram – a ‘cost per click’ if you like.
DATA, DATA EVERYWHERE!
EXECUTIVE SUMMARY
THE MARKET
RETAIL REIMAGINED
MONEY
IS THIS THE END OF THE GOLDEN AGE OF ONLINE RETAILING?
KNOWLEDGE
SHOPPING WITH A CONSCIENCE
FOOD
REGIONAL UPDATES
CONTACTS
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