Credit: Shutterstock photoThe online activewear and accessories line Fabletics, co-founded by American actress Kate Hudson, is set to open its first physical stores at five malls of General Growth Properties, Inc.GGP this fall.
The online retailer's intention to open brick-and-mortar stores depicts its drive to go beyond its e-commerce platform and faith in General Growth's properties. These stores are expected to not only boost sales but also help in brand visibility.
Specifically, the five malls of General Growth that are ushering in Fabletics stores are Bridgewater Commons (Bridgewater, NJ); Christiana Mall (Wilmington, DE); Kenwood Towne Centre (Cincinnati); The Mall in Columbia (Columbia, MD) and Saint Louis Galleria (St. Louis).
These stores would offer a host of amenities to enhance shopping experience for customers. With facilities ranging from mobile points of sale, free shipping from warehouses for out-of-stock stuffs to buying online and pick-up in store ("BOPUS"), and virtual shopping cart to help consumers complete their online shopping following an in-store visit.
Omni-channel Retailing
Notably, it is this way of retailing, referred to as omni-channel method, which retailers are adopting these days to push up their sales. To put it simply, it is the method of selling products simultaneously through all available shopping channels such as brick-and-mortar stores, Internet, mobile phones, television, radio, direct mail, catalog and others.
This cross-platform mechanism essentially foresees a customer showing interest in one channel, progressing and shifting to other channels and finally ending the transaction in another channel. This enables retailers to effectively and efficiently operate both physical stores and online channels in tandem, and update information on a real-time basis across all these modes.
Not only is this unified customer experience redefining the marketing strategies of retailers, it is also blurring the difference between a store and the Internet. And encouragingly, pure-play retailers are experiencing a significant rise in online sales from the same trade area after opening physical stores.
The retail real estate investment trusts ("REIT") are leaving no stones unturned to pull crowds to their properties, enhance occupancy, keep their stores open and charge higher rents. REITs are also giving their malls a facelift to attract customers, transforming them from a regular shopping hub to swanky entertainment zones and distribution centers.
The Bottom-Line
Moreover, retail REITs like General Growth has already earned its reputation for making such efforts. In 2014, the company had collaborated with RetailMeNot for availing digital coupon facilities across its properties and prior to that, it had teamed up with Deliv to offer same-day delivery services to customers. Such moves are a strategic fit as they are expected to boost the shopping experience and enhance sales volume at tenant stores, consequently raising demand for the company's assets.
General Growth Properties currently carries a Zacks Rank #3 (Hold). Investors interested in the retail REIT sector may consider stocks like Agree Realty Corp. ADC , EPR Properties EPR and Simon Property Group Inc. SPG . All three stocks carry a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
