washington prime group fulventory...us consumer. according to a business insider survey, 68% made...
TRANSCRIPT
WASHINGTON PRIME GROUPFULVENTORYLAST MILE FULFILLMENT SPACE INSIDE WPG ASSETS
MAY 2020
32
T H E B E N E F I T S O F B O P I S .Meet BOPIS and his cousin Boris . While BOPIS is cer tainly more appeal ing , truth be told , the
consuming public f inds both of them pretty darn desirable . We’re gonna provide some statistical
evidence as to why but when al l is said and done, there’s a pretty basic reason as to why these
funny sounding acronyms as wel l as physical retai l in general resonate with shoppers .
Plain and simple , we l ike to see , touch , smell , hear and taste stuf f.
Consumers Prefer BOPIS
WPG bel ieves a symbiotic re lationship exists between physical retai l and eCommerce and
that ’s why we’re rol l ing out our last mile fulf i l lment solution , Fulventory. Actual ly so does the
US consumer. According to a Business Insider survey, 68% made multiple ‘cl ick and col lect ’
purchases during 2019. The abi l ity to pick up merchandise in store also determines where
shopping takes place. Over 50% select an eCommerce site based upon whether or not it of fers
a BOPIS option .
In fact , other factors contr ibute to the high adoption of BOPIS by the US consumer. Let ’s let the
numbers continue to do the talking . According to the same Business Insider survey, par ticipants
cited del ivery cost (48% ), convenience (28%) and speed (39%) as additional BOPIS attr ibutes
valued by the US consumer.
BOPIS SHOPPER CHARACTERIZED BY SEVERAL SHOPPING TRIPS PER WEEK.
BOPIS AND BORIS ESTIMATED ADOPTION BY 2024 OF 90% AND 81%, RESPECTIVELY.
OMNICHANNEL
FULFILLMENT REPORTSOURCE: bus iness ins ider inte l l igence
Frequency of buying
goods onl ine and col lecting
in store
SOURCE: THE NEW T YPOGR APHY OF RETAIL
32%Several Times a Week
Adoption of BOPIS across big box, department store, fashion, activewear, and specialty retail verticals is expected to grow from
The most essential omnichannel services are
BOPISbuy online, pickup in-store
BORISbuy online, return in-store
US retailer adoption BORIS is expected to increase from
2016
2016
44%
40%
2024
2024
90%
81%
8%Daily
23%< Once a Week
37%Once a Week
54
T H E B E N E F I T S O F B O P I S .BOPIS Benefits Retai lers
A formidable 85% of shoppers surveyed indicated they have made additional in
store purchases while picking up an onl ine order. As a matter of fact 15% do so
‘somewhat f requently ’ (bless their hearts).
Furthermore , once a shopper is in your store you have increased the l ike l ihood
he or she wil l succumb to the temptation of the e ighth deadl iest sin…an impulse
purchase… by strategical ly placing select merchandise within close proximity
to where the BOPIS hand of f occurs .
BOPIS also provides retai lers the abi l ity to pass a long last mile shipping expense
or, if overly magnanimous , of fer discounts to BOPIS customers . Rewarding
BOPIS shoppers with targeted in store promotions and reward programs is a lso
a highly motivating factor as cited by 45% of consumers surveyed.
As i l lustrated the reciprocal benef its for both retai lers and shoppers are pretty
compell ing… operating ef f icacy… increased sales… happy customers… but you
already knew that .
FULVENTORY CAPTURES THE NEXUS BETWEEN PHYSICAL RETAIL AND
eCOMMERCE
eCOMMERCE PHYSICAL RETAIL
FU
LV
EN
TO
RY
76
C O N V E N I E N T A N D C O S T E F F E C T I V E .So here’s the plan…we’re of fering three space options…small , medium and large…
all situated within our enclosed and open air assets . All have interior and exterior
entranceways and of fer 24 hour access . Fulventory space wil l be situated within
a distinct corridor of a WPG asset far enough away from your full price store
albeit one heck of a lot closer than that warehouse near the airport where there
is no chance whatsoever to sell an additional item…or two…or three. On average
your Fulventory space wil l be about 45 seconds from your store.
We’re going to leave it up to you regarding pick ups and drop of fs . By this
we mean whether you use a scheduling notif ication application, automated
lockers with passcode or a good old fashioned runner going back and forth . Our
Information Services folks can assist you from a technology perspective and our
local management team can arrange for a pair of sturdy legs .
98
T H I N K I N S I D E T H E B OX .While we sure wouldn’t complain if we were able to charge retail rental rates , you
would. Besides , we l ike the idea of of fering our tenant partners a viable amenity.
So we’re of fering each of our three configurations at a rental rate comparable to
(if not lower than) last mile fulf i l lment space and we’l l actually f ix that amount
for a three year term. You get a vanil la box…all you have to do is provide the
racking system and f i l l it up. If you’d l ike turnkey, our space planning experts wil l
work with you as well .
In addition to uti l izing your Fulventory space for local and/or regional last mile
fulf i l lment, feel free to use it for inventory clearance as it provides a discrete
sales location, hence, maintaining separation between full price and discounted
merchandise.
We also have several 10,000 to 20,000 SF spaces throughout our portfolio
suitable for larger scale regional distribution requirements .
SMALL675 SF
MEDIUM1,250 SF
LARGE2,500 SF
1 110
C O N C E P T UA LR E N D E R I N G S .
ConcourseEntrance
Featured Merchandise
ExteriorEntranceDigital Displays
Fulfillment