Post on 11-May-2023
3
Covering Today
Lacy Beasley, President, Retail Strategies:Welcome from Retail Strategies
National Overview of Topic
National Year Over Year Same Store Sales Trends
Big Picture Trends for Past / Present / Future of Category
Top Brands Expanding in Category
Michael J. Stanley, Senior VP of Real Estate, francesca’s:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
Randy Trotter, Senior VP of Development, Workout Anytime:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
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Why Should a Municipality Invest Resources in Retail?
Increase Tax
Revenue
Create
Jobs
Improve
Quality of
Life
Attract
Desired
Businesses
6
Covering Today
Lacy Beasley, President, Retail Strategies:Welcome from Retail Strategies
National Overview of Topic
National Year Over Year Same Store Sales Trends
Big Picture Trends for Past / Present / Future of Category
Top Brands Expanding in Category
Michael J. Stanley, Senior VP of Real Estate, francesca’s:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
Randy Trotter, Senior VP of Development, Workout Anytime:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
12
Covering Today
Lacy Beasley, President, Retail Strategies:Welcome from Retail Strategies
National Overview of Topic
National Year Over Year Same Store Sales Trends
Big Picture Trends for Past / Present / Future of Category
Top Brands Expanding in Category
Michael J. Stanley, Senior VP of Real Estate, francesca’s:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
Randy Trotter, Senior VP of Development, Workout Anytime:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
14
Hibbett Sports Update
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• Full line sporting goods operator with a focus on small to mid sized markets
• Annual total sales approaching $1 billion dollars
• Public company. Listed on Nasdaq since 1996
• Market specific stores. Bring what the customer wants to each market. We do
not go by a cookie cutter approach
• Vendor driven locations. Name brands, full price with customer service. Not
found in most small markets. Nike, Under armour, Adidas, North Face, etc.
• 2 store brands Hibbett Sports and Sports Additions. Majority growth is with
the Hibbett stores.
• Fast growth plan. Anticipate opening 70 stores in 2016 with similar growth for
next few years. 1,300 stores open within 5 years.
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Real Estate Priorities
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• New store growth
• Focus on stores with higher sales potential (first year)
• Favor states with current high volume stores
• Prioritize stores with key metrics that correlate best to higher sales potential
• 3 mile, 5 mile population
• Diverse demographic mix
• Little or no big box competition
• Expansions/remodels• Review current high performing stores with growth history
• Prioritize high volume mall stores for remodels
• California opportunity• Assess potential markets
• Open initial 8 stores for testing by 3/31/2017
• Evaluate differences regarding construction, HR policies, lease terms, etc.
• Finalize strategy for # of stores, assortments, logistics plans, etc.
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CURRENTLY 1047 STORES IN 33 STATES 4-21-16
107 5665
96 102
36
58
623
44 43
10
49
11
37
30 2328
10 18
63
16
2
2
5
9 1
129
1
1
Current breakdown mall vs strip
Malls = 195 stores 19%
Strip centers = 852 stores 81%
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Real Estate Contacts
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DAVID NICHOLS – SR REAL ESTATE MANAGER WESTERN DIVISION
ROBBY COMPTON –LA, MS, TX
BRAD WALTON – DE, MD, NJ, NC, SC, VA, WV
JAKE DATNOFF – AR, AZ, CA,CO, NM, NV, OK, UT, WY
DAN WILBOURN – IL, IN, MI, NY, OH, PA
SAM KILLIAN – FL, GA, KY, TN
SCOTT TEDDER– IA, KS, MN, MO, NE, SD, WI
JAMIE EDMONSON – SR PORTFOLIO MANAGER
TERRY DONLEVY- AR, DE, FL, GA, MD, MS,
LINDA KELLER – AZ, CO, KS, LA, NM, OK, TX, UT
LACY RITENBURGH –AL, KY, MN, MO, NE, TN
JOHN BROOKS – IA, IL, IN, OH, PA, NC, SC, SD, VA, WI, WV
TARA COOK– LEASING ASSISTANT
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Real Estate Contacts
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DAVID NICHOLS – SR REAL ESTATE MANAGER WESTERN DIVISION
ROBBY COMPTON –LA, MS, TX
BRAD WALTON – DE, MD, NJ, NC, SC, VA, WV
JAKE DATNOFF – AR, AZ, CA,CO, NM, NV, OK, UT, WY
DAN WILBOURN – IL, IN, MI, NY, OH, PA
SAM KILLIAN – FL, GA, KY, TN
SCOTT TEDDER– IA, KS, MN, MO, NE, SD, WI
JAMIE EDMONSON – SR PORTFOLIO MANAGER
TERRY DONLEVY- AR, DE, FL, GA, MD, MS,
LINDA KELLER – AZ, CO, KS, LA, NM, OK, TX, UT
LACY RITENBURGH –AL, KY, MN, MO, NE, TN
JOHN BROOKS – IA, IL, IN, OH, PA, NC, SC, SD, VA, WI, WV
TARA COOK– LEASING ASSISTANT
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Real Estate Contacts
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DAVID NICHOLS – SR REAL ESTATE MANAGER WESTERN DIVISION
ROBBY COMPTON –LA, MS, TX
BRAD WALTON – DE, MD, NJ, NC, SC, VA, WV
JAKE DATNOFF – AR, AZ, CA,CO, NM, NV, OK, UT, WY
DAN WILBOURN – IL, IN, MI, NY, OH, PA
SAM KILLIAN – FL, GA, KY, TN
SCOTT TEDDER– IA, KS, MN, MO, NE, SD, WI
JAMIE EDMONSON – SR PORTFOLIO MANAGER
TERRY DONLEVY- AR, DE, FL, GA, MD, MS,
LINDA KELLER – AZ, CO, KS, LA, NM, OK, TX, UT
LACY RITENBURGH –AL, KY, MN, MO, NE, TN
JOHN BROOKS – IA, IL, IN, OH, PA, NC, SC, SD, VA, WI, WV
TARA COOK– LEASING ASSISTANT
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Covering Today
Lacy Beasley, President, Retail Strategies:Welcome from Retail Strategies
National Overview of Topic
National Year Over Year Same Store Sales Trends
Big Picture Trends for Past / Present / Future of Category
Top Brands Expanding in Category
Michael J. Stanley, Senior VP of Real Estate, francesca’s:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
Randy Trotter, Senior VP of Development, Workout Anytime:Brand Overview
Big Picture Industry Trends and How Brand is Affected
Expansion Plans
Site Selection Criteria
Q&A
The Franchise Relationship
• Structured Entrepreneurialism
• Interdependence
• Proven Historical Performance
• Branded Identity
• Proven Operating System
• Ongoing Support
The Strength of Franchising
• 68¢ of every $1 spent in the service sector is with a franchise
• Over 3,500 franchise systems operate in the United States
• With over 600,000 franchise units
• Recent Wall Street Journal Poll indicated that buyers are willing to pay 22% more for a franchised business
The Strength of Franchising
0
10
20
30
40
50
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10
Business Success Business Success Business Success Business Success Over 10 YearsOver 10 YearsOver 10 YearsOver 10 Years
Franchising Traditional
The Fitness Industry
• Over 32,000 clubs
• Serving over 52.9 million members
• Total Revenues of $22.4 billion
• Fastest growing – Value Priced Segment
The Fitness Industry
• Over 70% of US population DOES NOT DOES NOT DOES NOT DOES NOT belong to a club
• Biggest Reason – Too Expensive (58%)
• That’s Our Opportunity!
Mission
Our Mission is to create a unique
business opportunity for our Franchise-
Partners that helps allow them to achieve
their lifestyle and financial goals through
hard work, commitment and passion
Company Growth
• Club openings accelerating
• Crossed 100-unit threshold Q1/16
• 4x growth in openings over the previous 4 years
66 66
16
16
16
16 19
19
19
19 23
23
23
23
50
50
50
50
29
29
29
29
45
45
45
45
64
64
64
64
87
87
87
87
13
71
37
13
71
37
2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016 (EST)2016 (EST)2016 (EST)2016 (EST)
WORKOUT ANYTIMEWORKOUT ANYTIMEWORKOUT ANYTIMEWORKOUT ANYTIMECLUB GROWTH CLUB GROWTH CLUB GROWTH CLUB GROWTH
2012201220122012----1016101610161016
new clubsnew clubsnew clubsnew clubs total clubstotal clubstotal clubstotal clubs
Accelerated Pace
• Record Openings in Q3/15
• Opened more clubs in first 9 months than all 2014
• Q4 Better than Q3
• 1 short of all 2013
• Q1/15 maintaining momentum
• Q1 improved on Q4
5555 5555
999910101010
15151515
0
2
4
6
8
10
12
14
16
Q1/15Q1/15Q1/15Q1/15 Q2/15Q2/15Q2/15Q2/15 Q3/15Q3/15Q3/15Q3/15 Q4/15Q4/15Q4/15Q4/15 Q1/16Q1/16Q1/16Q1/16
NEW OPENINGSNEW OPENINGSNEW OPENINGSNEW OPENINGS
Revenue Growth
• Flat through most of ‘15
• Began significant growth trajectory December
• Coincides with new branding & focus on operational excellence
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Network RevenueTotal Network
Our Strengths
– The best workout per square foot in the industry
– Lines of the finest strength training from Matrix, reACT and others
– Rows of cardio including treadmills, ellipticals and bikes
– Tanning and HydroMassage
– Our convenient locations
– Personal Training
– Nutritional counseling
Your Real Estate Search
Once the franchise
agreement is signed, we get
to work!
Find local broker: a
specialist in retail tenant
leasing
Identify markets of
interest
Find locations
Send and negotiate LOI and
lease
Sign lease
Letter of Intent (LOI) Points
• Size
• Use
• Term
• Guarantee
• Rent
• NNN’s- Common Area Maintenance (CAM), Taxes and Insurance
• TI (Tenant Improvement) Allowance
• Free Rent
• Security Deposit
• Presales Space
• Assignment
• Exclusive
• Signage
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Key Takeaways
Research is critical but Real Estate always winsResearch
Isn’t the
End
Retail
Recruitment is
a Challenge
Retail Recruitment is Economic Development but it is a
commercial Real Estate function. Enlist professionals to
assist the community
Retail Recruitment is not an event. Manage expectations.
This process takes time.
Retail
Recruitment is
a Marathon
Retailers
are
Expanding
70% of Retailers will expand this year. Get in the game!
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Our Process
Retail Strategies is a
full-service consultant
firm that develops and
implements long term
retail commercial real
estate strategies for
municipalities.
Our process involves a team of
experienced experts making
connections between the public
and private sector in a complex
industry. Information, persistence
and focus minimizes hurdles,
accelerates timelines and increases
economic development in a
competitive environment.