Webinar Series June 2016: Apparel, Accessories, Fitness & Health

Webinar Series 2016

Webinar Series June 2016: Apparel, Accessories, Fitness & Health

Webinar Series 2016:

Apparel, Accessories,

Fitness & Health

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


Expansion Plans


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

National Overview of

Trends

6

Covering Today








Expansion Plans


Q&A



Expansion Plans


Q&A

7

Health 2016 Planned Expansion

200+ 100 - 150+ 30 - 60+

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Fitness 2016 Planned Expansion

200+ 50+ 30+

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Apparel

75+75+75+75+ 50+50+50+50+ 25+25+25+25+

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Retail Strategies Overview

Ambition, Meet Strategy

Guest Speaker

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Covering Today








Expansion Plans


Q&A



Expansion Plans


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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Covering Today








Expansion Plans


Q&A



Expansion Plans


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

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10

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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

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19 23

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50

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29

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71

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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

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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

When Your Ready to Get into the

Best Shape of Your Life

We’re Here For You. 24/7.

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

Site Requirements

Real Estate Competition

Map

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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Q&A

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Connect

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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!

48

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.

120 18th Street South, Suite 120, Birmingham, AL 35233 205.314.0386 retailstrategies.com

Webinar Series June 2016: Apparel, Accessories, Fitness & Health

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Transcript of Webinar Series June 2016: Apparel, Accessories, Fitness & Health