WEBVTT - Holiday Shoppers Buying Now, Paying Later

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 1>Tim Stenebek on Bloomberg Radio. Well, Bailey, something weird is

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<v Speaker 1>happening to toy prices. They're actually falling this holiday season.

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<v Speaker 1>I don't know if you saw this story from Bloomberg

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<v Speaker 1>News yesterday.

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<v Speaker 2>Did you see this? I saw it, But I'm not

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<v Speaker 2>buying toys. Are you buying toys?

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<v Speaker 1>I'm yeah, yeah, you know, Santa Claus has got to

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<v Speaker 1>go shopping somewhere. Okay, reported yesterday Bloomberg News here reporting

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<v Speaker 1>yesterday that toy makers are actually slashing prices, with toy

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<v Speaker 1>promotions during the holiday season expected to peak at thirty

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<v Speaker 1>five percent. Okay, that's just toys. It's certainly a unique

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<v Speaker 1>retail segment and one that saw a huge shift during

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<v Speaker 1>the pandemic. So what about other types of retail. Well,

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<v Speaker 1>we've got a great guest to talk all things retail

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<v Speaker 1>as we do get through the holiday season. Nicole Larson

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<v Speaker 1>is National Research Manager for Retail Services at Colliers. She's

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<v Speaker 1>on the retail team There managed a portfolio of over

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<v Speaker 1>two billion square feet in the US. They got storefronts, malls,

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<v Speaker 1>grocery stores, restaurants, and more. Nicole joining us this afternoon

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<v Speaker 1>on Zoom from Fort Lauderdale, Florida. Nicole, how are you good?

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<v Speaker 3>How are you guys? I'm excited to talk all things retail.

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<v Speaker 1>Yeah, well, what are you seeing right now? I mean,

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<v Speaker 1>you guys have incredible real time data that shows who's

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<v Speaker 1>shopping where, who's eating where, and who's spending money where.

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<v Speaker 1>What does the environment look like?

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<v Speaker 3>I mean, first of all, let's start off with the

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<v Speaker 3>holiday shopping season has really been off to a great start.

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<v Speaker 3>I mean, obviously, consumers are, you know, remaining pretty cautious

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<v Speaker 3>and selective about what they're buying. They're focusing, they're purchasing

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<v Speaker 3>power more on their needs rather than they're once they're

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<v Speaker 3>not buying on impulse, and they're really not splurging on

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<v Speaker 3>products that don't wow them. So we actually saw nearly

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<v Speaker 3>sixty percent of consumers said that they bought less on

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<v Speaker 3>impulse this Black Friday than they did last year. But

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<v Speaker 3>also about forty percent of consumers thought that retailers were

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<v Speaker 3>more generous this year with their discounts than they were

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<v Speaker 3>last year. So that goes to your point of toy prices.

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<v Speaker 2>As well, Nicole, one that has definitely been top of

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<v Speaker 2>mine for me has been this kind of rush of

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<v Speaker 2>buy now, Pay later.

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<v Speaker 1>I thought you're gonna say buying toys.

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<v Speaker 2>I know, I don't know.

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<v Speaker 1>I don't know to buy toys.

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<v Speaker 2>I don't have anyone to buy toys for.

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<v Speaker 1>So buy toys for my kids.

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<v Speaker 2>Yeah, exactly.

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<v Speaker 1>You know it'll be a Christmas surprise, a Christmas miracle.

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<v Speaker 2>A Christmas miracle brought to you by Bailey Lipsholtz Nicole. So,

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<v Speaker 2>we saw a firm with a partnership with Walmart to

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<v Speaker 2>drive for their volume. How does buy now, Pay Later

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<v Speaker 2>play into the retail landscape?

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<v Speaker 3>So we actually took a survey. We found one in

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<v Speaker 3>five consumers planned to heavily leverage the buy Now, Pay

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<v Speaker 3>Later program payment plans during the holiday season. I think

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<v Speaker 3>really to spreading out the holiday spend. So you know

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<v Speaker 3>how we actually or Amazon had the deal days Target

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<v Speaker 3>best by Walmart. I think really stretching out their spending

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<v Speaker 3>period has also really helped consumers get them to open

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<v Speaker 3>their wallets. I mean we're already starting to see it

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<v Speaker 3>now with other holidays. If you go into Target, you

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<v Speaker 3>can already start to the Valentine's Day items. So I

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<v Speaker 3>think that's going to be a trend not only just

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<v Speaker 3>with Christmas and Black Friday spend, but you're going to

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<v Speaker 3>see it with other holidays too. In order to get

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<v Speaker 3>those consumers to spend, you know, start selling the products

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<v Speaker 3>a little bit earlier than usual.

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<v Speaker 1>Does that? I mean, Bailey, I don't know about you,

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<v Speaker 1>but that Walmart a firm news yesterday that sent news

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<v Speaker 1>of that sent shares of a firm up double digits. That

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<v Speaker 1>really got me thinking, Wait a second, Nicole, is it

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<v Speaker 1>the best thing if consumers are at Walmart paying for

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<v Speaker 1>Walmart purchases over time? Like? What story does that tell

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<v Speaker 1>about the American consumer?

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<v Speaker 3>I mean, one trend we're looking at for twenty twenty

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<v Speaker 3>four is that our consumers are going to be a

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<v Speaker 3>lot more considerate in their perching habits. I definitely don't

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<v Speaker 3>think retail spend is going to increase by very much

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<v Speaker 3>next year. If anything, it's going to remain either the

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<v Speaker 3>same it was this year or maybe a few basis

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<v Speaker 3>points higher. But really there's going to be a big

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<v Speaker 3>stabilization as I mentioned, because consumers are just being a

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<v Speaker 3>little bit more picky. I mean, we have so much

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<v Speaker 3>information out there. If we do want to buy a TV,

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<v Speaker 3>or some sort of appliance. We're not just going to

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<v Speaker 3>one retailer to look and click and automatically buy. We're

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<v Speaker 3>looking at all platforms. We're going in store, We're going

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<v Speaker 3>in line really to do our due diligence on where

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<v Speaker 3>is the best price available.

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<v Speaker 2>Well, Nicole, again, with your portfolio of storefronts and malls,

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<v Speaker 2>how much of this foot track is foot traffic is

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<v Speaker 2>actually delivering sales? Because you mentioned that if I walk

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<v Speaker 2>into a store and see that there's a TV that

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<v Speaker 2>I want, I immediately google it and see what kind

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<v Speaker 2>of price I can get elsewhere that'll probably have free shipping.

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<v Speaker 3>Yeah, so surprisingly, you know, I think the pandemic definitely,

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<v Speaker 3>you know, surged online sales that went up very quickly,

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<v Speaker 3>a lot faster than we probably expected for that to

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<v Speaker 3>come up over the next few years. But despite all

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<v Speaker 3>of this e commerce growth, brick and mortar stores really

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<v Speaker 3>remains the preferred shopping center or the preferred shopping experience

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<v Speaker 3>I should say, by consumers. We work with a lot

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<v Speaker 3>of retailers, and a lot of them have already really

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<v Speaker 3>perfected their online and omni channel strategy, so now they're

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<v Speaker 3>actually looking to really perfect and right size their physical storefront,

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<v Speaker 3>maybe get that store size right, maybe experience with experiment

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<v Speaker 3>with new formats. So that's really going to be one

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<v Speaker 3>big thing you're going to see in the new years,

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<v Speaker 3>a lot of retailers putting their focus back into the

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<v Speaker 3>physical space.

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<v Speaker 1>That's so interesting to hear because it feels like to

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<v Speaker 1>me physical apart from groceries, and even groceries like physical

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<v Speaker 1>physical stores are like a last resort for me. Therefore,

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<v Speaker 1>when I want to try on a pair of shoes

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<v Speaker 1>or try on something but I don't know what, Nicole,

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<v Speaker 1>I don't want to be bothered to leave, you know,

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<v Speaker 1>my house.

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<v Speaker 2>Well, we even buy it. I feel like we buy stuff,

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<v Speaker 2>my fiance buy stuff to try it on, and if she.

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<v Speaker 1>Doesn't send it, send it back, which is just costing.

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<v Speaker 2>Yeah, and it's also bad for the bad.

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<v Speaker 1>For the environment. But I mean, Nicole, how does that

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<v Speaker 1>gel with what you're seeing at Colliers?

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<v Speaker 3>Yeah, I mean or the foot traffic definitely shows that

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<v Speaker 3>foot traffic is up, and it's really for these desired centers.

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<v Speaker 3>I mean, you're starting to see a lot higher foot

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<v Speaker 3>traffic in strip centers where they're closer to the suburbs.

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<v Speaker 3>Like you mentioned, you don't want to drive far to

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<v Speaker 3>have to return something or to purchase something. So sometimes

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<v Speaker 3>you know, if it is more convenient for you to

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<v Speaker 3>just hop in your car and head onto the nearest

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<v Speaker 3>strip center close by your house, that might be the

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<v Speaker 3>easier alternative to offer a return as opposed to sending

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<v Speaker 3>it in mail, so that will also drive foot traffic

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<v Speaker 3>as well.

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<v Speaker 1>I do also think that it has to do with

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<v Speaker 1>the experiences that these retail spaces are increasingly offering. Right

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<v Speaker 1>It's not just you know, it's the stuff that you

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<v Speaker 1>can't do online, and you know, it's like the Lego

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<v Speaker 1>Lands or you know what Mattel's trying to do with

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<v Speaker 1>like Pepa pig World and these experiences and stuff. Just

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<v Speaker 1>in the last thirty seconds that we have betenaicle, is

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<v Speaker 1>that something we're gonna see more of?

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<v Speaker 3>Yeah, definitely. I mean landlords should definitely try to annetize

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<v Speaker 3>their space as much as they can. There's so much

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<v Speaker 3>they can do with these events, any sort of experiences

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<v Speaker 3>like you're mentioning, we're also seeing retailers do that. You know,

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<v Speaker 3>even if they have a store in a location already,

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<v Speaker 3>adding some sort of pop up at the other side

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<v Speaker 3>of the mall. So maybe if your consumer doesn't go

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<v Speaker 3>to your side of the mall, maybe the ones who

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<v Speaker 3>do go to the other side of the mall can

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<v Speaker 3>can figure out that you're there as well. So lots

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<v Speaker 3>of different options for landlords to get the space activated.

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<v Speaker 1>Nicole Larson, national research manager for retail Services at Callers,

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<v Speaker 1>joining us on Zoom from Fort Lauderdale, Florida, Bailey, are

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<v Speaker 1>you done with all holiday shopping?

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<v Speaker 2>I'm done? Well, I was going to say, you're thinking

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<v Speaker 2>about Lego land and Peppa Pake. I just got a

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<v Speaker 2>new smoker for Christmas, So different stages of all.

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<v Speaker 1>Right, so fourth of July we're coming over.

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<v Speaker 2>I'll be over there in January two.

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<v Speaker 1>Oh wow, that sounds good. Hey, you're listening to Bloomberg

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<v Speaker 1>Bus this week. This is Bloomberg