2nd Shopping Center Planning and Management Semşnar was organized by Maad Retail Studies Center inTehran, Iran, 21-22 October 2013. The participants were top personalities from the development business in İran. The seminar will be an important contibution to the development of the retail industry in İran.

1. RETAILERS IN THE
LEASING PROCESS
MATH, DEMAND AND PERFORMANCE

2. OBJECTIVES
▪ RETAIL MATH
▪ TOOLS OF LEASING
▪ PERFORMANCE MATTERS
▪ LEASING DURING OPERATIONS
RETAIL VISION LTD ISTANBUL
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3. THE SUMMARY
FAMILY DISPUTE IS THE NAME OF THE GAME
RETAIL VISION LTD ISTANBUL
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4. IN THE
MALL
IN THE
STORE
FIXED (BASE)
RENT
HIGHEST
IS BEST
KEEP IT LOW
TURNOVER
RENT
EXTRA IS
GOOD
OK BUT
FAILURE IS
YOURS
CAM
CHARGES
IT’S ALL
FOR YOU
THE LESS
THE BETTER
MARKETING
FUND
PAY MORE,
PAY ALL
BRAND VALUE
PAYS LESS
LOCAL GVMT
CHARGES
PAY ME BACK
OK
RETAIL VISION LTD ISTANBUL
RETAIL MATH:
IN THE MALL &
IN THE STORE
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5. RETAIL MATH BASICS
SUPER
MARKET
DEPARTM.
STORE
MEDIUM
SIZE
APPAREL& HOME
LEATHER
GOODS
SALES/M2
INDEX
150
80
120
100
70
PROPERTY
/SALES%
2-4%
3-6%
5-8%
8-12%
6-8%
CGS/SALES
%
X COSTS
/SALES%
ACCESSO
RIES
FOD &
BEVERAGE
150
200
10-15% 10-15%
70-80% 60-70% 50-70% 40-70% 60-70% 30-40% 30-40%
7-15%
EBITDA %
10-20%
7-20%
3-10%
5-15%
10-20% 20-30% 15-25% 30-50% 30-50%
RETAIL VISION LTD ISTANBUL
10-20%
7-15%
10-15% 10-15%
15.10.2013
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6. MALL MATH BASICS
SUPER
MARKET
GLA %
DEPARTM.
STORE
ENTERTA
INMENT
APPAREL&
LEATHER
HOME
GOODS
ACCESSO
RIES
FOD &
BEVERAGE
10
TURNOVER/
M2
FIXED
RENT
TURNOVER
RENT
10
50
10
2-4%
3-6%
25%
8-12%
6-8%
150
80
120
100
70
150
200
2
PROPERTY
/SALES%
10
2
3
50
15
12
16
10
20
30
30
10
0
0
RETAIL VISION LTD ISTANBUL
4
6
10-15% 10-15%
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7. LEASE AGREEMENT
TOOLS OF NEGOTIATION
RETAIL VISION LTD ISTANBUL
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8. WHAT A RETAILER WANTS
ANCHORS
LOCATION
COMPETITION
LEASE TERM
SPECIALTY
ENTERTAIN
MENT
FOOD&
BEVERAGE
HIGH
FOOTFALL
VISIBILITY
CLOSED+OPEN
HIGH FOOTFALL SPACE
NONE
SAME
SEGMENT
NONE
SINGLE EXPERT
10+ YEARS
5+ YEARS
10-20 YEARS
5+ YEARS
TENANT
30-100%
ALLOWANCE
MANAGEMENT FULL
ATTENTION
RETAIL VISION LTD ISTANBUL
10%
IF, YES
30-50%
FULL
ATTENTION
10%
NEVER MIND
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9. WHAT THE MALL OWNER CAN DO
ANCHORS
LOCATION
DEAD ENDS
SPECIALTY
VISIBILITY
COMPETITION DIFFERENTIA SAME
ENTERTAIN
MENT
FOOD&
BEVERAGE
CLOSED+OPEN
HIGH FOOTFALL SPACE
TION
LEASE TERM
TENANT
ALLOWANCE
MANAGEMENT
SEGMENT
NONE
COMPETITION IS
GOOD
10+ YEARS
5+ YEARS
10-20 YEARS
5+ YEARS
AVOID
MAY BE
RETAIL VISION LTD ISTANBUL
NO
NO
MAY BE
OK
NEVER
NO
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10. RETAILER
MALL
OWNER
LOOK AT THE
MANAGER
LOOK AT THE
MANAGER
CHAIN
LIFE OF THE
BRAND
ACQUIRE +++
SITES
COMPETI
TION
WHAT IT BOILS
DOWN TO
ALWAYS AT
YOUR BACK
LOOK INTO
LOCAL GOVMT
THE END
GAME
LOCATION
RETURN ON PAYBACK
INVESTM. 15-48 MONTHS
RETAIL VISION LTD ISTANBUL
PAYBACK
5-18 YRS
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11. LEASING: A LIFETIME JOB
NEVER REST, NEVER STOP
RETAIL VISION LTD ISTANBUL
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12. TENANTS
MALL
AS A
BRAND
RETAIL
TRENDS
CONSUMER
RETAIL VISION LTD ISTANBUL
COMPETITION
OPERATIONS
PHASE:
DYNAMICS
OF
CHANGE
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13. RETAIL BRANDS HAVE A LIFE
STARTUP
MATURITY
REGIONAL
DECLINE
NATIONAL &+
FALL
RETAIL VISION LTD ISTANBUL
15.10.2013
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14. MEASURING RETAILER PERFORMANCE
IN THE MALL
STORE
OUTSIDE THE MALL
MALL
GROUP AVE.
SALES
60
120
100
RENT
60
100
100
MGMT
50
100
CHAIN
100
MARKET
OFFER
75
85
RETAIL VISION LTD ISTANBUL
100
100
100
100
3%/YR
10%/YR
LOCATIONS
2%
10%
RANK
DESIGN
SALES
50%
25%
GROWTH
RATE
1%
15%
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15. FOLLOW
ACTION FOR
FUTURE
IDENTIFY
CHANGE
PUT YOUR MIND
IN THE
CASH REGISTER
RETAIL VISION LTD ISTANBUL
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16. DISTINGUISH THE LOOSERS
TREAT THE WINNERS
LOOSERS
WINNERS
▪ ESTABLISH TURNOVER RENT
▪ BRAND CO-OPERATION
IN MALL MARKETING
▪ PERIODIC REVIEWS
▪ SURVEYS AND INTELLIGENCE
▪ HUMAN RESOURCES
▪ ACT AS PARTNER
▪ RE-NEGOTIATE LEASE
▪ END THE LEASE
RETAIL VISION LTD ISTANBUL
▪ INTRODUCE NEW
FORMATS
▪ PROVIDE INCENTIVES
▪ RE-FIT-OUT
ALLOWANCES
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17. STAYING ALIVE
PUT WINNERS
OVER LOSERS
FOLLOW THE
CONSUMER
MALL BRAND
TREAT TENANTS
AS PARTNERS
RETAIL VISION LTD ISTANBUL
HAVE THE BEST
TEAM
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18. THANK YOU.