Category Archives: The Market

Musings From a Bored Feasibility Consultant  

Posted on May 11, 2020 | Comments Off on Musings From a Bored Feasibility Consultant  

My practice lives and dies with innovation and optimism.  With most clients and friends scared to death about what this crisis will bring when it is over, or whether it will ever be over, my normally optimistic client base is taking a nap.  They are shut down and not practicing good old American ingenuity.

I have lived through many downturns and booms, a litany of business cycles.  My space in the entertainment development world falls between the idea and execution. Is this idea crazy?  Does it have legs?  Can I afford to develop it?  Where will I get development funds?  Am I nuts to be thinking this right now?  These are some of the questions my practice is hired to consider.

In all cases, I provide one of the following answers:

  1. Brilliant idea. Let’s do some preliminary testing.
  2. Hmmmm, I think that’s been done before, but maybe we can improve on the existing model.
  3. I like it, but I really think the idea needs more development on your part, or if you like, we can help you move it along.
  4. That is the dumbest idea I have ever heard. Save your money, don’t hire me, or if you’ve already hired me, you should fire me!

A couple examples of the ill-though-out ideas:

  • A large INDOOR entertainment center on the beachfront of a major East coast resort.  The branding strategy: It’s a beautiful beach day, let’s all head inside!
  • A 100,000 square foot museum at a major Indian casino in the U.S. with the theme “The slaughter of the tribe by the White man.”  (Footnote: The gamblers at the resort are 95% White.)
  • A major entertainment company’s decision to disallow wine at a park in France.
  • The decision to build two competing 20,000-seat amphitheaters across the highway from each other in a major Orange Co. California city.

But happily, more of my practice involves ideas that have you smacking your forehead and saying, “Why didn’t I think of that?”!  Some examples:

American Girl Place (built and wildly successful),

Academy of Motion Pictures Museum (to open year’s end 2020),

Hollywood and Highland (the initial plan didn’t follow our advice);

Sony Metreon (also, didn’t follow our advice);

A new hospitality/retail/dining/entertainment/ development in Mecca, the Hajj (they didn’t hire us:  I wouldn’t have either!);

A mixed-use sports and entertainment-infused $1.0 billion development in downtown Edmonton (The Oilers got 60% of their Phase One development funds from our numbers, the first time ever a sports venue received public funding in the province):

Maybe soon we will have a few new brilliant ideas to report to you.  Until that time, stay safe, well, healthy and hopefully, not too bored!

 

 

 

 

 

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Posted in Attractions, Entertainment, Entertainment Industry, JB Research Company, Retail Market, The Market

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Some Bright Spots on the Jobs Horizon

Posted on May 1, 2020 | Comments Off on Some Bright Spots on the Jobs Horizon

While we’re all at home doing a bit of R&R and obsessively watching the news (oh, maybe that’s just me) for any glimmer of hope, I found some good news.  While the GDP shrank by 4.8% in the first quarter of 2020 and unemployment nationally is upward of 16%, there is plenty to worry about. 

But some companies are expanding and hiring like mad! These are the frontline businesses that need to ramp up workers to meet the short-term growing demand for their products and services, according to a report by Linkedin.    Here is a list of some of these growing companies:

Upwards of 51,000 Employees 

25,000 to 50,000 Employees 

  • CVS Health is hiring 50,000 employees to serve in various capacities across its business.
  • Dollar General says it’s looking to add 50,000 employees by the end of April.
  • Walmart is hiring 50,000 workers for its distribution and fulfillment centers.
  • FedEx is hiring 35,000 people for essential roles.
  • Allied Universal is hiring more than 30,000 people for open positions.
  • Ace Hardware is hiring 30,000 people to work in its stores nationwide.
  • Pizza Hut is hiring 30,000 permanent employees to serve as drivers, shift leaders, cooks and managers.
  • Lowe’s is hiring 30,000 employees
  • Dollar Tree, which is also the parent company of Family Dollar, is hiring 25,000 workers for its stores and distribution centers.
  • Walgreens is hiring 25,000 employees for permanent and temporary roles.

10,000 to 20,000 Employees 

400 to  9,999 employees 

  •  Office Depot is hiring up to 8,000 people to be seasonal retail        associates.
  • PepsiCo says it plans to hire 6,000 employees over the coming months.
  • AdventHealth is hiring more than 5,000 people to fill open roles.
  • TNG Retail Services is looking to hire 5,000 people for hourly roles.
  • Amwell is hiring people to fill 5,000 positions across the country.
  • Nestle USA is hiring more than 5,000 people.
  • Lockheed Martin is hiring more than 5,000 people to fill open positions.
  • Tractor Supply Company is hiring more than 5,000 people at its stores and distribution centers.
  • Rite Aid is hiring 5,000 people to work in their stores and distribution centers.
  • Big Lots is hiring 5,000 people to help meet increased demand.
  • Outschool is looking to hire 5,000 teachers to start offering online classes.
  • Providence St Josephs is hiring people for more than 3,000 positions.
  • Bon Secours Mercy Health is hiring nearly 3,000 people for open positions.
  • United Wholesale Mortgage plans to hire 2,500 people over the coming months.
  • Addus HomeCare is hiring people for 2,400 open roles.
  • CommonSpirit Health is hiring for more than 2,200 positions.
  • Mercy is seeking to hire more than 2,000 co-workers for essential health care roles.
  • Fidelity Investments plans to hire 2,000 people to fill roles, including financial consultants, licensed representatives and customer service representatives.
  • Salesforce is hiring for more than 2,000 positions.
  • Love’s Travel Centers and Country Stores is hiring more than 2,000 people to meet demand.
  • IQVIA is hiring for more than 2,000 roles.
  • Takeda, a large pharmaceutical company, is hiring for 2,000 positions.
  • Mercy Health is hiring nearly 1,900 people for open positions.
  • L3 Harris is hiring more than 1,800 people for open roles.
  • BAYADA Home Health Care is hiring more than 1,5000 people.
  • Trillium Health Partners are hiring 1,500 people for open positions.
  • Capital One is hiring for more than 1,300 roles across the U.S.
  • UCHealth is hiring people to fill more than 1,200 positions.
  • Bon Secours is hiring nearly 1,100 people for open positions.
  • Aveanna Healthcare is hiring more than 1,000 people for open roles.
  • Pruitt Health is hiring people for more than 1,000 roles.
  • Parsons Corporation is hiring more than 1,000 people for open positions.
  • Tetra Tech is hiring people in North America for 1,000 roles.
  • Better.com is hiring 1,000 employees — with a focus on hospitality employees.
  • Success Academy Charter Schools plan to fill about 1,000 full-time positions in New York City.
  • Publix Super Markets is hiring “thousands” of workers to meet increased demand.
  • Safeway is hiring thousands of workers due to the demand created by the virus.
  • Shipt is hiring “thousands” of people across the country.
  • CHRISTUS Health is hiring more than 1,000 people for open positions.
  • Regions Bank is hiring more than 900 people for open roles.
  • Philips is hiring roughly 900 people for open positions globally.
  • Ball Aerospace is hiring to fill more than 800 positions.
  • Veeva Systems is hiring people for more than 800 positions.
  • Fifth Third Bank is hiring nearly 750 people for open positions.
  • MUFG is hiring 700 people for open positions.
  • KLA is hiring workers for 700 roles.
  • Electronic Arts is hiring people to fill more than 700 roles.
  • Autodesk is looking to hire nearly 700 people for open roles.
  • Apple is hiring people for 600 roles in the U.S.
  • GoHealth is hiring 600 people for open positions.
  • Fortive is hiring 500 people for open roles.
  • New York City is hiring people for 500 non-clinical positions.
  • The CDC Foundation is hiring up to 500 people for open positions.
  • FactSet is hiring people for nearly 500 positions.
  • FirstGroup America is hiring people for 475 jobs.
  • Corizon Health is hiring more than 400 people for open roles.
  • Western Governors University is hiring more than 400 people.
  • Liberty Mutual is looking to hire more than 400 people to fill open roles.
  • DocuSign is hiring people for over 400 positions.
  • CommScope is hiring 400 people for open positions.
  • Fannie Mae is hiring 400 people for open roles.

Other Businesses that are expanding:

  • GHA Technologies
  • Cargill
  • Koch Industries
  • ServiceNow
  • The U.S. Census
  • BJ’s Wholesale Club
  • Blue Apron is looking to hire in New Jersey and California.
  • Land O’Lakes is looking to hire to meet increased demand.
  • Support.com is hiring a for remote positions.

These businesses are essential  retailers or those with strong cloud formats They include drug stores; other “Essential Retailers” (especially those that offer cheap good such as Dollar Tree), and businesses that can conduct all business remotely.

Will these firms continue their growth for the long term, or are they merely meeting new demand generated by the COVID-19 pandemic?  That’s the big question! Let us know your thoughts?  We love hearing from you!

 

 

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Notes from the Underground – An Update on How We’re Doing

Posted on April 22, 2020 | 2 comments

Are you as sick of washing your hands and your shelter-in-place roommate, husband, family, extended family as I am? I am ready to go ballistic if my husband puts one more item away that I just took out to use! We are all getting on each other’s nerves, and I don’t care how emotionally even you are (I am not!) or how much you promise yourself you will be calm, cool and collected, we are all experiencing cabin-fever and long for the days when we could go into Starbucks to get the morning cup of Joe.

Well, I have no answer for you.  Surprised?  You thought I’d give you four coping strategies.  But I have none. However, I can share some things that work for me.

 

  1. I have found that walking my dog with or without my husband, helps bring me back into the moment.  My dog, however, is tuckered and runs away when I bring out his leash.

 

  1. Playing the guitar and writing music helps. Now that is REALLY challenging when I feel completely uninspired and dried up, creatively speaking. It’s a real chore and maybe I will look back on these works someday, like you did when you wrote a poem when you were stoned and say to yourself, “what was I thinking?!”

 

  1. Writing blogs (which now seem like “Dear Diary” entries) and just simply going about the requisite chores have helped me stay sane.

 

  1. Each evening, making a list of the tasks for the next day. I never thought “order dinner from _____” (insert name of your favorite restaurant) would make it onto a to do list.  Parkinson’s Law (work expands to fill the time available).

 

  1. Also, the new-old sharing/visiting apps, ZOOM or Facetime, or Skype (does anyone use that anymore?) are actually very soothing and helpful. It is uplifting just to hear what my friends and family are experiencing, see their faces, giggle at something not really funny, or just share stories of our days.

We had an online Seder on Sunday, with many of my family members on both coasts, something we couldn’t do before because who travels cross-country for a Seder?  It was wonderful to connect with the extended family, Jewish and gentile, and drink red wine (not Manischewitz, some lovely Santa Rosa Cabernet, because, hey, it’s the local offering)

  1. We are planting our summer vegetables including tomatoes and zucchini. Have I ever done that before? Have we met? No, that’s Charley’s job, ‘cause he is from Indiana.

 

  1. Shopping online for spring and summer dresses. That might just be me, probably doesn’t help most people.  But I’ve gotten some really great stuff that fits perfectly, which doesn’t happen very often!  My favorite website for this is VICI.com.  Really airy, adorable comfortable dresses.  Retail is my vocation and avocation.

So that’s it for now.  Let us know how you are coping. Sharing is caring in this new world!  I feel better already!

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What Will the World Look like in 2025? Five Things to Know for the Future

Posted on April 8, 2020 | Comments Off on What Will the World Look like in 2025? Five Things to Know for the Future

 

It’s a question on everyone’s mind.  In times of uncertainty, we look to the past, we look to the future, because we just can’t understand what’s going on right now!

In my world (and probably yours), I am working digitally.  That’s nothing new for me.  But right now, I have a profound sense of loneliness.  I miss the sights and sounds of movies, shopping, visiting with my grandkids, even going to doctor’s appointments!  I miss the gym (well maybe not too much) and I miss going out to dinner!!

In these quiet moments, I’ve been thinking about how our world will change in the next five years.  Here are five of my predictions about what we will be doing and how we will be doing it in 2025.

  1. People have short memories. That’s a good thing.  If it were not so, no one would ever have a second child!  One of my major prognostications is that the gathering spots all over the nation will be teeming with people and activity.  But it will be different.  Visitors will “keep their distance”, be more polite, and leave space for their fellows both in front and back.  This new behavior will change necessary planning factors for public assembly.  Our current “order-of-magnitude” space requirements for various entertainment and attraction venues – theme parks, movies, museums, convention/conference centers and retail spaces – are all planned this way.  We will need new numbers, and that will put pressure on the size of many of our social institutions and facilities.  This will make them bigger, and thus likely more expensive to build.

 

  1. Consumers will pivot spending from big ticket items to more affordable choices.  Theme parks and cinemas are considered recession-proof.  That’s not true, but they are much more sustainable than expensive cars, hotels, high-priced vacations and restaurants during and after a recession.

As a corollary, Millennials who are the darlings of advertisers and the future of our country’s spending, will keep on the same consumption track, preferring experiences to things. But the experiences will be closer to home and without as much adventure as before.

These Millennial consumers are:

    •  Born between 1980 – 1994
    • Number 72 Million
    • Ages: 25-39
    • Forming Families Now
    • 29% of Adults in the U.S.
    • Ethnically Diverse
    • Tech Savvy
    • Multi-Taskers
    • Prefer Experiences to Things (So important to keep in mind for retailers!)
    • Prefer Health to Wealth
    • Prefer Mobile/Digital Communication
    • Responsible for $14 billion in consumption expenditure

More fascinating though is the amount spent by Generation X, those consumers born from 1965 to 1980, and aged 40 to 55.  These are the most prolific spenders, accounting for $24 billion in annual expenditure.  Why we aren’t planning for and paying more attention to these mid-life consumers is beyond my understanding!  (In fact, a comparison of the average annual expenditure on Entertainment by cohort shows GenXers spending $3,231 per household, followed by Boomers at $3,286 per household and finally the younger Millennial Generation at $2,186 per household.  Average for the nation is about $2,800.)

These expenditures will likely be at the same in 2025 as they are today.  But smart owners and developers will target the groups that spend the most.

  1. New entertainment-infused projects that continue planning and development during this relatively short period of confinement will come out on top. These projects will be first to market.  If planners/owners develop well thought out, well designed, well executed projects with rational business plans, they will reap the benefits of a surge in demand immediately following the downturn and thereafter.

 

  1. Cultural entities such as museums and live theaters will present content that is relevant, easily understood and fundable. They will likely lag behind the uptick in commercial entertainment activity.  This is because spending for nonprofit activities are seen as more discretionary than other forms of entertainment.  In fact, for the past 20 years, expenditures on cultural attractions have been slipping. Why?  Baby Boomer parents did not do a good job of educating their children on the value of theater and art.  That’s the number one factor in propensity to spend on the arts:  exposure as a child.  Our institutions will reflect the society and cultural needs of a diverse population.  Many of our older institutions were born in a homogeneous America that no longer exists.

 

  1. We will return to a simpler time, albeit with sophisticated tech all around us. Everything old will become new. Consumption of just plain fun with some silliness will be the norm!

While living abroad for a year, I experienced this uncomplicated world that offered          simpler and enduring fun.

I went to the mountains with my friends:

I attended Oktoberfest in Munich:

I attended  opera at La Scala and the Teatro dell’Opera di Firenze. I went to formal            dances:

And I lightened up, became a kid again, upped my joie de vivre:

What are your thoughts about the world after Covid-19?  Write us and let us know.  We want to keep connecting with our friends during this time.

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Young Adults

Posted on April 16, 2018 | 1 comment

OUR MILLENNIALS

Some say Gen Y, or Millennials, are a lazy, over-parented, indulged cohort.  Being the mother of two Millennials, both parents, home-owners and extremely responsible young men, I tended to strongly disagree.  Are you sensing a “but” here?

I wanted to see if this is true statistically.  So I embarked on a study of current census data, and to my surprise and delight, the United States Census had already done this for me!  What I found is that there is striking statistical support for some of these beliefs.

Below is a summary table of some of the information collected and collated by the government.  What is most illuminating is that almost one third of this cohort lives with their parents, while only one quarter did a quarter century ago.  A huge number live in poverty, more than 13.5 million, while only 9.5  million lived under the same conditions in 1990.  This is not good news!

Young Adults Table

In 1990, 15% spoke a language other than English at home.  Now about one in four are brought up in a household in which English may not be spoken at home.  What we all know is true, these young people are 43% “minority,” whereas only 27% were in the “minority” in 1990.  This is a positive in our country, since we are all “minorities,” and we are all immigrants, but classifications have changed since we emigrated from Europe, Asia, Africa, Australia, and other continents.

One great finding is that 22% have earned a Bachelor’s Degree or higher, while only 17% had this level of advanced education in 1990. And remember, many of these people are on their way to earning a Bachelor’s degree because they are still in college.

Analyzing these data in graphic form illuminates these findings.

1.  Median earnings are waaaay down in the past quarter century!

Median Earnings.JPG

2.  This population segment is highly diverse.

Millenials Figure 2

3.  Asian Americans show about 60% of this cohort in college, while Blacks and Hispanics show increases in student enrollment, making up 30% of each of their population bases in this age range.

Millenials Figure 7

4.  We need more Millennials in the STEM fields!

Millenials Figure 8

5.  Student debt is a big problem for our college students.

Millenials Figure 9

6.  About half of college students are working, a bit less than in 1990 when that total was about 60%.

Millenials Figure 12

7.   Women are out-pacing men in Bachelor’s Degrees conferred and with some Graduate School.  It has been this way since 1994!

Millenials Figure 22

8.  As always, with this generation, the higher the level of education, the higher the average household income.

Millenials Figure 18

9.  And for older Millennials, long unemployment as a percentage of total unemployment is higher than ever, up from 15% in 1977 to over 40% in 2014.

Millenials Figure 21

10.  Millennials are marrying older.

Millenials Figure 26

11.  Educated Millennials are having kids later.

Millenials Figure 28

12.  And almost a third still live with parents.

Millenials Figure 29

My conclusions from these data is that Millennial issues stem more from  the Great Recession, and the fact that they are dogged by student debt rather than their lack of ambition.  They entered the workforce at a terrible economic point in our history.  As REAL wages increase, and the economy improves, they will quickly be absorbed into the grown-up population.

Tell me what you think.  I always love hearing from our readers!

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Posted in Demographics, JB Research Company, The Market

THE POWER OF GLOBAL GENDER PARITY

Posted on May 25, 2017 | Comments Off on THE POWER OF GLOBAL GENDER PARITY

I am just back from ICSC.  Besides much discussion of the demise or denial of the demise of  bricks and mortar shopping opportunities, I saw a presentation about this “Gender Parity” study completed by the McKinsey Global Institute (MGI).  Take a look!

Click Picture to Download Report

“Narrowing the global gender gap in work would not only be equitable in the broadest sense but could double the contribution of women to global GDP growth between 2014 and 2025. Delivering that impact, however, will require tackling gender equality in society.

“MGI has mapped 15 gender equality indicators for 95 countries and finds that 40 of them have high or extremely high levels of gender inequality on at least half of the indicators. The indicators fall into four categories: equality in work, essential services and enablers of economic opportunity, legal protection and political voice, and physical security and autonomy.  We consider a “full-potential” scenario in which women participate in the economy identically to men, and find that it would add up to $28 trillion, or 26 percent, to annual global GDP in 2025 compared with a business-as-usual scenario. This impact is roughly equivalent to the size of the combined US and Chinese economies today. We also analyzed an alternative “best-in-region” scenario in which all countries match the rate of improvement of the best-performing country in their region. This would add as much as $12 trillion in annual 2025 GDP, equivalent in size to the current GDP of Japan, Germany, and the United Kingdom combined, or twice the likely growth in global GDP contributed by female workers between 2014 and 2025 in a business-as-usual scenario.

“Both advanced and developing countries stand to gain. In 46 of the 95 countries analyzed, the best in-region outcome could increase annual GDP in 2025 by more than 10 percent over the business as-usual case, with the highest relative boost in India and Latin America.

“MGI’s new Gender Parity Score, or GPS, measures the distance each country has traveled toward gender parity, which is set at 1.00. The regional GPS is lowest in South Asia (excluding India) at 0.44 and highest in North America and Oceania at 0.74. Using the GPS, MGI has established a strong link between gender equality in society, attitudes and beliefs about the role of women, and gender equality in work. The latter is not achievable without the former two elements. We found virtually no countries with high gender equality in society but low gender equality in work. Economic development enables countries to close gender gaps, but progress in four areas in particular— education level, financial and digital inclusion, legal protection, and unpaid care work—could help accelerate progress.

“MGI has identified ten “impact zones” (issue-region combinations) where effective action would move more than 75 percent of women affected by gender inequality globally closer to parity. The global impact zones are blocked economic potential, time spent in unpaid care work, fewer legal rights, political underrepresentation, and violence against women, globally pervasive issues. The regional impact zones are low labor-force participation in quality jobs, low maternal and reproductive health, unequal education levels, financial and digital exclusion, and girl-child vulnerability, concentrated in certain regions of the world.

“Six types of intervention are necessary to bridge the gender gap: financial incentives and support; technology and infrastructure; the creation of economic opportunity; capability building; advocacy and shaping attitudes; and laws, policies, and regulations. We identify some 75 potential interventions that could be evaluated and tailored to suit the social and economic context of each impact zone and country.

“Tackling gender inequality will require change within businesses as well as new coalitions. The private sector will need to play a more active role in concert with governments and non-governmental organizations—and companies could benefit both directly and indirectly by taking action.”

http://www.mckinsey.com/global-themes/employment-and-growth/how-advancing-womens-equality-can-add-12-trillion-to-global-growth

 

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The Best Job I Ever Had

Posted on September 30, 2015 | 2 comments

Oscar Museum 2

Ten years ago, in about 2004, I got a call from a prospective client, a newly hired director of the Academy of Motion Pictures Arts and Sciences museum project, asking if I would be interested in conducting some market research for a new attraction/museum themed on the Academy Awards.

Would I Ever!!!

I had been the one lucky enough to do the work for the Dolby Theater at Hollywood & Highland where the ceremony takes place, so it seemed a good fit and logical that I continue on to do the museum feasibility.  But my joy, my heart, for Hollywood, no one knew that!

No One Had Ever Known That:

  • My family had always been in the entertainment business, with my father involved on the business side, having been a pioneer in the cable television industry.
  • My aunt always working for this or that movie star as an executive assistant.
  • I was lucky enough to visit the back-lot of 20th Century Fox before it was Century City!
  • I spent countless hours watching movies being filmed, then sitting in theaters watching them roll by me on the big screen.

Would I be interested?  Heck, yea!!

Since that time, I have been the consultant called upon to do the background market research, analysis and financial projections for the site selection, sizing and operation of museum.

I learned a thing or two during those years like:

  • I gained a deep knowledge of large museums and what keeps them thriving.
  • How an endowment can shrink during a deflation.
  • Money earmarked to never-be-touched has a way of disappearing in hard times.
  • I learned about the conundrum of keeping things fresh so that resident visitors will keep returning, time and again.

I am thankful that my job always changes and that I always learn, no matter the engagement.

Picture of Oscar 2Over the years, we have wrestled with all the issues associated with new development including disagreements about what it should look like, what its mission should be, where it should be sited, who is its targeted audience (please, don’t say everyone!), and what’s the best way to keep the project on-time and on-budget.  To be clear, these issues are complex and are made more difficult when there are many masters to serve.  Still, when the project is to reflect the points of view, hopes, dreams, and legacies of America’s most important cultural export, (which I believe is cinema) there must be the most careful consideration to each one.

This was my best job ever.  Write and tell me about yours in the comments below.

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WHICH GENERATION TO TARGET?

Posted on April 20, 2015 | Comments Off on WHICH GENERATION TO TARGET?

We are all fans of the newest consumers to come of age, the Millennials. These young adults, who are now aged 19 to 33 and number almost 70 million, are the darlings of the marketing world. But in their rush to capture the hearts and minds of these young consumers, who are now forming their first real households, many brands are forgetting about the other generations.

To help our colleagues drive sales to adults in various life stages, we created an easy chart to start the conversation. A discussion of these groups is like teenage sex: everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it.

Generational Market Segments

· Swing and World II

  • Born between 1909-1945image
  • 33.7 Million
  • 69 or Older
  • 14% of Adults
  • Health Care Consumers
  • “Grandchildren” Spending
  • Delayed Gratification
  • Moderation
  • Discipline
· Baby Boomers

  • Born between 1946 – 1964image
  • 74.9 Million
  • Ages: 50 – 68
  • 32% of Adults
  • Multi-generational Consumers
  • Drivers of Growth in Leisure/Hospitality
  • Still Individualistic and “Rebels”
  • Starting to think about retirement
  • Forever Young
  • 45 Million Grandparents
· Gen X

  • Born between 1965 – 1980image
  • 60.4 Million
  • Ages: 34 – 49
  • 25% of Adults
  • Boomer Parents
  • Divorced Parents
  • Insecure
  • Practical in Consumption
  • Diversity
  • Responsible
  • Use Web Extensively
· Gen Y / Millennials

  • Born between 1981 – 1995image
  • 67.9 Million
  • Ages: 19 – 33
  • 29% of Adults
  • Ethnically Diverse
  • Tech Savvy
  • Multi-Tasker
  • Need Lots of Input
  • Prefer Health to Wealth
  • Prefer Mobile Communication
  • Omnicultural
· Gen Z

  • Born between 1996 – 2010image
  • 46 Million
  • Ages: 5 – 18
  • Structured Schedules
  • Over Managed
  • Info in Short Grabs
  • Multi-Tasker
  • Tech Savvy/Omnicultural
  • The “I” Generation

Source: JB Research Company

(For a Printable Chart, Click Here.) 

Each generation has a special way it likes to be approached, and each responds differently to messaging. For example, Boomers still shop in department stores, although certainly not as much as when the oldest boomers, now 69, were kids. Gen Y rarely shops in department stores unless it is one of the “cool” ones, which include Nordstrom’s or Barney’s. Or when they are shopping for their parents’ Christmas gifts, so they can be easily returned to a convenient location.

In terms of amount spend per visit to the mall and department store, the 45-54 age group cuts across two generations, Gen X and Baby Boomers. Department store spending, however, is highest among Boomers, while all other spending is highest again across Gen Y and Boomers. Teenagers visit the mall most frequently, but understandably, do not spend much per visit.

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In terms of wealth, an interesting analysis indicates that Gen X, a sector largely ignored by great brands, is a real contender when it comes to income, net worth and wealth. The difference between income and wealth is that income is what you earn every year, and wealth is the totality of your assets minus your liabilities. According to the United States Department of the Census Current Population Survey, net worth and total income is as follows in 2013:

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In terms of net wealth, Baby Boomers hold the highest percentage of net worth dollars at 34% and the highest share of total income dollars, at 39%. The second highest is held by Gen –X at 29% of net worth dollars and 31% of total income dollars. Millennials hold 21% of net worth, and about 18% of total income dollars. Again, markets with the most money are Boomers and Gen-X.  But that is because Gen Y is young, and on their way to being the consumer heavyweight in the next 20 years.

Some salient characteristics of each of the largest buying generations, Boomers and Gen-X include the following:

.  Gen- Xers have money! They make up 25 % of all adults, but hold 29% of all net worth and 31% of all annual income earned. Half of them want to provide for their kids’ college, and almost all want to save for retirement. Two thirds plan on traveling for pleasure in the next year, and half will buy one or more luxuries.

· Boomers on the other hand, buy things for themselves and their grandkids. They are omnichannel and know their way around the Internet of Things. They expect hype in their advertising because they invented it (Mad Men, anyone?) They are early adopters of smart medical devices and are very critical about experiential retail, again because they invented it.

While we’re at it, here are some characteristic of Gen Y and Gen Z.  Gen Y is completely omnichannel, and have said that they will pay for responsible products, although this has not yet been proven in the market. They will be early adopters of smart wearables, especially sport gear such as watches. They want a seamless shopping experience and they DO NOT WANT HYPE. Because of all the information thrown at them by their various smart devises, they want their lives simplified, so they have invented “curated” everything from experiences, to vacations, to cooking, shopping, to putting together furniture, to decluttering their lives. Think  YouTube, Yelp, H&M and Zara (fast fashion), shopping sites, and Pinterest. Because there are so many of them, and because they are just starting to become a force as couples, they are the generation that will take over next.

Gen Z is a whole other puzzle. They are not old enough to have much money of their own, but they will in the next ten years. They are overscheduled, but they are completely omnichanneled, cutting across every platform of technology. They are extremely entrepreneurial and want to be heard. They also want to try out products before they buy. In order to appeal to them now, you have to continually innovate and evolve digitally because they live on their devices.

The world is complicated today and is becoming more complicated as we evolve and innovate with our shopping methods and choices. The Internet of Things, such as magic RFID tags, augmented reality, delivery drones, curated experiences, wearable technology and life hacking are among the many new experiences we must excel at and then change our products and communication as they change. It is a brave new world!

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Entertainment Evolution Experience

Posted on January 9, 2015 | Comments Off on Entertainment Evolution Experience

Happy New Year Friends!

I can’t believe so much time has passed since I last wrote.  We have been very busy and had a lovely holiday.  Hope all is well with you and your family.

We are reminding you to come and join us at an exceptional conference “Entertainment Evolution Experience” to be held February 18th and 19th at LA Live! in Los Angeles.  I will be speaking on a panel entitled, “Open Air Projects – Pushing the Envelope,” where we will discuss, among other things, the need for human contact and fresh air!

We would be thrilled to see you there!

Here are the details:

Shopping Center Business and InterFace Conference Group are pleased to highlight the following panel for the Entertainment Experience Evolution Conference, February 18-19, 2015 at LA Live in Los Angeles. The multi-day conference will focus on what developers, owners, restaurants, retailers, cinemas, designers and entertainment venues are doing to evolve the consumer experience and create vibrant places to spend time.

Featured Panel:

Open Air Projects –
Pushing the Envelope

Arguably the most active type of multi-tenant retail, open-air centers have grown beyond service retail to become true community environments. Find out how amenities, restaurants, landscaping, hardscaping, and placemaking are changing open-air retail. See case studies from developers and architects on the transformation of open-air centers, from regional lifestyle centers to power centers to small community centers.

EEE - Open Air Pushing the Envelope Speakers

For a complete agenda, click here.

To reserve your spot today, click here.

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The New Face of Retail

Posted on September 15, 2010 | 2 comments

Can you smell it?  Fall is in the air!  It may still be 85 degrees in sunny California, but the kids have returned to school, a crispness is the order of the day, and last weekend, I did my annual fall shopping.  The trip this year was much more measured than other years, as I suppose it is for most in the developed world.  The recession is alive, growth from the last few quarters has slowed, and there is still rampant uncertainty in all of our daily lives.

But that is not what I want to blog about today.  On my trip, I did my usual “people watching”  noting a subtle but noticeable shift in the gestalt of the crowd.  We visited our local mall which is owned by Macerich.  The shopping center was renovated in 2007 and a huge Target took over a vacated Robinson’s-May as one of the anchors.  Still, the mall floundered and felt like an unhappy place to me.  And then voila!  In the midst of the downturn, with unemployment still above 9 percent nationally and American companies holding on to more than $1.8 trillion in cash ( not investing, not hiring), a new sense of hope and purpose is in the air.  Unscientific you say?  Yes, but after so many years in the business I am a reader of attitudes, unspoken  intentions, a focus group unto myself.

What has caused this shift in outlook, turned the gray glasses to rose-colored?  I believe it is the retailers, some of whom are doing an excellent job of reading their markets.  With my husband in tow, we were given free treats at Cinnabun, Wetzels Pretzels, and See’s Candy while waiting in line to buy a low-cal coffee at Coffee Bean and Tea Leaf.  I smelled popcorn and saw several happy families with brightly colored red-and-white boxes.  Where did they get these cheery delicious snacks?  Target!  (Sears, you lose again, even though this was your idea in the first place!) And while waiting in line, I saw the Giant Surprise that H & M, one of my favorites, will be opening in our mall in less than two weeks.  The fast-fashion Swedish retailer made the excellent choice not to locate in a struggling new “upscale” lifestyle center in Oxnard (oxymoron, lifestyle center: Oxnard) which would have been a huge mistake!

As a very wise presidential candidate once said, “it’s the economy stupid!” and retailers that have learned to provide VALUE and fun in the shopping experience and in the goods and services they offer are faring well.  TJX, Ross, Forever 21 and now Bloomingdale’s Outlets are giving consumers what they want and need in today’s difficult world.  Free stuff, fun stuff, inexpensive stuff, value for the money!

So while the economic indicators continue to stump the experts, the American consumer is not giving up!  They will continue to shop (less and cheaper), eat sugar and popcorn, and hope for the much badly needed turnaround.  And this, my friends, is a self-fulfilling prophecy for a better year in 2012!

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Posted in Entertainment, Entertainment Industry, JB Research Company, Lessons Learned, Retail Market, The Market