ICSC RECon 2015 – Taking a Smarter Route
I’ve recently returned from my 15th ICSC RECon show. Last year was the first year since the 2008 downturn that I started to witness a positive shift in attendance and energy, and I’m pleased to report that the momentum continued in 2015. ICSC estimates 35,000 real estate professionals attended this year’s show, the highest since 2008 - and from our perspective, it was the best year ever.
We had the opportunity to meet with dozens of retail real estate leaders, and noticed some common themes emerging in our conversations. In general, they were looking for smarter and more efficient ways of getting things done. This sentiment was confirmed by the results of the survey we conducted at the show. As I mentioned in an earlier post one of our goals at the show was to assess retailers’ Store Lifecycle Management IQ by asking them questions about their real estate strategy and store development processes (and donate $5 for each completed survey to a great cause, the North Texas Food Bank).
In many meetings with senior retail real estate executives, it became clear that while most companies have some type of solution that manages part(s) of the store development lifecycle, few if any have connected the dots between GIS, Predictive Analytics and Store Lifecycle Management. And as such, they are unable to see the interplay between real estate strategy and store development execution and make adjustments that would improve results. Pranav Tyagi and I wrote about this reality in our recent white paper “Making Store Lifecycle Management Strategic”, so I won’t go into the details here. Suffice it to say, working independently these systems fail to provide the intelligence required to understand the affect and outcome of real estate and store development decisions.
We wanted to verify some of this anecdotal evidence by surveying retail real estate professionals we met at ICSC. We asked a series of questions to help uncover whether retailers real estate strategy was linked to their store development execution, and here are some top level results:
Do you have visibility into all store development execution activities?
Can you provide your field real estate with quick turnaround on site studies?
Can you quickly identify which projects are delayed and which can be accelerated to meet your numbers?
Is your existing store strategy connected to new store strategies?
In general, fewer than 50% of respondents answered “yes” to the questions, indicating that there is a strong need for a single solution that provides the intelligence and logic to build a real estate plan and execute against it – as well as to adapt to changing market and execution conditions.
For a more in-depth analysis of the current and future state of store lifecycle management, I recommend that you read the white paper, which provides a complete overview of the current landscape and why Intelligent Store Lifecycle Management is the logical next stage in the evolution of real estate strategy and store development execution.
As a final ICSC update, we announced our partnership with UberMedia at the show. In an upcoming blog post, Devon Wolfe will discuss the uniqueness of this data source, and how Tango Analytics turns raw data into actionable intelligence for retailers.
We look forward to seeing everyone at ICSC RECon 2016!