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Tenant of the Future: Insights from the Hong Kong Market

This report analyzes which brands, retailers and store formats will be winning in the retail world of the future. The report draws on global analysis performed by FGRT, retail real estate market insights about the Hong Kong market from Colliers International and an expert panel discussion that took place in Hong Kong on the theme the “Tenant of the Future.” The panel discussion was part of the second event of the “Retail Revolution: Disrupt or be Disrupted” event series—a collaboration between FGRT and ULI Asia Pacific, which focuses on innovation in retail and its applications to real estate.

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Retail Revolution – Disrupt or Be Disrupted – The Tenant of the Future (ULI)

Many stores are now part of the last-mile solution. In the US, some older malls are being repurposed as warehousing and delivery depots.
• Stores are leveraging sharing-economy technology to serve
as fulfillment centers for local deliveries.
• Malls are being used innovatively as warehouses, delivery
depots and pickup locations for customers.
• In North Randall, Ohio, outside Cleveland, a former mall is
becoming a new Amazon warehouse.

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3Q2017 Wrapup and Holiday Preview (Planalytics)

3Q17 Retail Update
1. Earnings: Positive Results Led by E-Commerce and Beauty Retailers
2. Store Traffic Continues to Be Challenged
3. Sluggish Traffic and Unfavorably Warm Weather Hurt Monthly Comps
4. Hurricanes’ Effect on Retail

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Retail Revolution – Disrupt or Be Disrupted (XSPECS)

Retail Traffic Is Down
• Retail traffic has continued to struggle, although it has been
showing slight improvement
• According to RetailNext, retail store traffic in July declined by
just 5.5%, its smallest drop since January 2016
• The conversion rate, which represents how many shoppers
became buyers, rose by 0.5% in both June and July, the highest
rate increase in almost a year

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Background on Amazon and Retail

US Retail Bankruptcies Are at Post-recession Peak
• Year to date, 14 retailers have filed for bankruptcy
• That is more than the number of filings over the entire year
in 2016
• Retail bankruptcies are on track to reach their highest level
since 2009, when 18 retailers filed for bankruptcy
• And there are likely more to come

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