Research & News

Retail has been harder hit than almost any other business sector. The changes in lifestyle and habits that Americans have recently adopted have significantly shifted shopping patterns. But while initiatives to engage with customers in the online space have accelerated, the long-term importance of strategic brick-and-mortar strategy remains essential.E-commerce A Bright Light in Retailer SalesThough non-essential brick-and-mortar purchases have ground to a halt, online spending has grown. Retail spending was down 8.9% in March from the previous month[1]. But even as total sales volume has decreased, online sales have increased substantially. As of mid-April, it is estimated that U.S. retailers' online revenue growth is up 68% Y-O-Y[2]. This is an encouraging sign as it indicates that Americans’ appetite to purchase still exists while shelter-in-place orders are in effect. Following implementation of social distancing practices, online shopping has become more important for many US consumers.

Brands Embracing E-Commerce to Create Meaningful Experiences

As the importance of e-commerce grows, brands will continue to create meaningful experiences for their shoppers; those innovations will now increasingly be implemented through an omnichannel platform. For example, customers who shop at Vans.com can now participate in a program that sponsors local skate shops for certain purchases. This option allows shoppers to meaningfully engage with their community from the comfort of their home. Similarly, REI’s homepage features articles that give advice about outdoor recreation and home workouts, as well as localized suggestions based on the shopper’s zip code. By adding non-shopping-related content to their landing page, REI is able to define and built affinity with their brand, even when stores are closed. Nike is another standout retailer that is continuing to foster engagement with online shoppers. Its website features profiles of star athletes, blog posts about fitness, and also advertises its interactive app platform. This diverse content provides inspiration and community as well as access to products. Like Vans, REI, and Nike, competitive retailers will continue to build-out their e-commerce platforms in order to engage with customers who are increasing their online spending.

Brick-and-Mortar Remains Crucial What does the growing importance of e-commerce mean for physical locations? The recent increase of online buying does not lessen the importance of a brick-and-mortar strategy. In a study commissioned by ICSC in 2019, customers who shopped first at a store and then went to that retailer’s website within 15 days ended up increasing their spend by about 167 percent[3]. This goes to show than even in an era of increased online purchasing, retailers with well-positioned stores in strategic markets will have a dramatic advantage over pure “e-tailers”. Likewise, consumers who visit a retailer’s website are shown to spend an average of 131% more during an in-store visit within the next 15 days [4]. Companies that started as e-tailers, including like untuckit, Warby Parker and Casper, attest to this phenomenon:  all have opened physical locations. As many online-first brands have recognized, the relationship between online and brick-and-mortar shopping is interdependent. Even if increases in online shopping continue after social distancing policies are relaxed, brick-and-mortar locations will still be a key component of most brands’ retail strategy.  [1] US Census. https://www.census.gov/retail/marts/www/marts_current.pdf.[2]Emarsys. https://ccinsight.org/observations/us-retailers-see-online-growth-yoy-in-april-similar-to-recent-holiday-season/[3] ICSC, “The Halo Effect”[4] IBID

The following is a list of resources to help your business during COVID-19.

Legislation Summary | The CARES Act

US federal government recently passed into law the Coronavirus Aid, Relief, and Economic Security (CARES Act), which includes $377 billion in funds for small businesses. What this means:

- The main features for small businesses are emergency grants and a forgivable loan program for companies with 500 or fewer employees. There are also changes to rules for expenses and deductions meant to make it easier for companies to keep employees on the payroll and stay open in the near-term.

- Emergency Grants: The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.

- Forgivable Loans: There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

- Relief for Existing Loans: There is $17 billion to cover six months of payments for small businesses already using SBA loans.

Legislation Summary | Alston & Bird Updates

- Analysis – CARES Act Funding Sources

- $367 billion for Small Business Administration

- Paycheck Protection Loan Program

- $500 billion for the Treasury’s Business Stabilization Loan Fund

- Tax Credits and other potentially beneficial tax considerations

- Summary – CARES Act Small Business Provisions

- Small Business Administration (SBA) – In response to the CARES Act requirements, the SBA formally launched its Paycheck Protection Program for small businesseson April 3.

- The SBA has guidance for loans under the Paycheck Protection Program, the Express Bridge Loan pilot Program, the Economic Injury Disaster Loan Program for qualified entities that are impacted by COVID-19. The application for its economic injury deferral disaster loans can be found here.

- The SBA, in consultation with the Treasury Department, updated its FAQs addressing the Paycheck Protection Program.

- Complete details on the SBA CARES Act programs on pg 19: LINK

State & Local Updates

- For the State of California, EDD will begin issuing an additional $600 unemployment benefit payments for the week ending April 11.

- Los Angeles County is set to receive more than $20 million in federal dollars through the coronavirus relief bill -- or CARES Act, and the Board of Supervisors Tuesday authorized the County Development Authority to administer those funds.

- That includes an expected $13.6 million in Community Development Block Grant funds to be used to help residents with temporary rental assistance, grab-and-go/delivery meal programs, business assistance to retain low- and moderate-income employees and other COVID-19 response services.

- Of the 88 cities in Los Angeles County, 48 will get their funding through the county’s allocation, while others will receive money directly from the federal government. Of the $13.6 million, about 40% will go to the 48 cities, with the balance being spent by the county.

Legislation summary | Financial Resources

- Economic Injury Disaster Loans (EIDL): The Economic Injury Disaster Loan (EIDL) is a program offering loans up to $2 million to small businesses suffering substantial economic injury. The program also includes a grant which allows eligible businesses to quickly receive a cash advance of up to $10,000 that is not required to be repaid. Here is a LINK to apply.

- Paycheck Protection Program (PPP): The Paycheck Protection Program offers eligible businesses 100% federally guaranteed loans (up to $10 million or 2.5x monthly payroll, whichever is less). Up to 100% of the loan amount spent on payroll, rent, utilities, or mortgage interest during the first 8 weeks after loan origination may be eligible for loan forgiveness. Here is a LINK to apply.

- Los Angeles City Small Business Emergency Microloan Program offers loans from $5,000-$20,000 with 0-3% interest rates: LINK

- CA Infrastructure and Economic Development Bank (IBank) Finance Programs: The State of California is allocating $50 million to the Small Business Finance Center at California’s IBank to mitigate barriers to capital for those small businesses (1-750 employees) that may not qualify for federal funds (including businesses in low-wealth and immigrant communities). The $50 million allocation will be used to recapitalize the IBank Small Business Loan Guarantee Program.

- Disaster Relief Loan Guarantee Program: This disaster program provides guarantees for loans of up to $50,000 for small business borrowers in declared disaster areas

- California Capital Access Program (CalCAP) (1-500 employees): CalCAP is a loan loss reserve program which may provide up to 100% coverage on losses as a result of certain loan defaults. Individual borrowers are limited to a maximum of $2.5 million enrolled over a 3-year period. Contact a Participating Lender to enroll.

- Cal-OSBA – Small Business Assistance & Resources: LINK for a list of free or discounted technology tools for small businesses

- Small Business Association Disaster Loan Program: The SBA is working directly with state Governors to provide small businesses with working capital loans of up to $2 million to overcome temporary loss. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills. Email disastercustomerservices@sba.gov, call 1-800-659-2955 or apply here.

- A Summary of SBA Resources found here.

- Use the SBA’s Local Assistance Directory to locate the office nearest you.

- ICSC has put together a comprehensive Frequently Asked Questionswebpage here; LINK

- Intuit Small Business Funding (for QuickBooks customers): If you are a QuickBooks customer with personal and business credit history and revenue of at least $50,000 over the past 12 months, you may be eligible for a loan up to $100,000. Apply here.

- Square Capital Financing: If you are a Square customer, Square Capital supports eligible businesses with loans between $500-$250,000. Log in to your Square Dashboard, or learn more here.

- Bank Relief: A list of some banks providing relief during this time can be found here.

- Divvy Resource Guide: Divvy, an expense management platform, provides a guide to alternative financing opportunities here.

- Facebook: Facebook offering $100M in grants and credits for up to 30,000 eligible small businesses: LINK

- Yelp: Yelp offering $25M to bars and restaurants effected by COVID-19: LINK

- Lease re-negotiations amid Covid-19 Pandemic: LINK

Marketing Best Practices | Landlords / Owners

- Use email marketing to keep your list informed – Weekly marketing emails are ideal for providing your list with information regarding the status of your shopping centers operations.

- Create social media content – Provide real-time information on the operational status of shopping centers and essential businesses that are currently open.

- Optimize your online presence – Making sure each shopping center website is updated with information for customers and resources for tenants. All websites need to be verified through Google Search Console in order to be sure they are visible throughGoogle’s search engine.

- Maintain common areas for the community – Keeping common areas open allows the community to be entertained in a safe environment

- Virtual tours – Provide the opportunity to view the center and continue touring future tenants with online virtual tours.

- Advertise with print media – Keep customers up to date on business operations by using print media such as posters, banners, and direct mail.

- Create a relationship with the community – Connect with your community to create additional engagement opportunities.

Marketing Best Practices | Restaurants

- Use email marketing to keep your list informed – Weekly marketing emails are ideal for providing your list with information regarding the status of your business’ operations.

- Create social media content – Social media is the best place to share information about your business with the opportunity to gain new customers. Create engaging content and post as often as possible on your social media channels.

- Utilize free digital advertising services – Yelp and Google have launched initiatives that include waived advertising fees and free advertising, products, and services.

- Optimize your online presence – Making sure your website is updated with information and be sure your website is visible online through Google Search Console.

- Advertise your business with print media – Keep customers up to date on business operations by using print media such as posters, banners, and direct mail.

- Create a relationship with the community – Connect with your local community to understand resources are being offered for businesses.

We are available to you as a resource by providing resources to help your business during COVID-19.Respectfully,Beta

As outpatient care continues to grow, so will the need for healthcare providers to look for strategic clinic placement. Currently the hospital admission rate is 116 per 1,000 people meaning far more people are coming in for regular check-ups to monitor more chronic and less severe health issues. Outpatient services have grown from 22% of total revenue in 1991 to 40% in 2011.[1] What this means for providers is that they need to look for locations where they can provide convenient and quality healthcare to the communities they intend to serve. Healthcare clinic placement strategy will continue to look more and more for smaller infill locations in dense areas that allow them to further penetrate markets and get closer to consumers. Retail projects represent an opportunity for healthcare providers to connect with their customers in environments they are familiar with, are comfortable with, and frequent for their daily needs.Healthcare providers are strategic tenants for retail properties and represent great opportunities from a landlord perspective as they can stabilize a project by locking in a long-term, anchor lease. This approach is a value add to ownership as they have a user that can take on a second-generation space without needing to tear down the building. In addition to being a good backfill strategy for anchor spaces, medical users provide larger on-site daytime population to compliment the other retail within a project and drive daily needs visits.In an age where brand recognition and brand reputation are so important towards success, it’s imperative for healthcare providers to differentiate themselves. One example is Carbon Health who Beta recently helped Bentall Kennedy sign a lease with at Midtown Crossing. Carbon Health has found success in bridging the gap between physical and digital healthcare. Not only are their locations conveniently located in daily needs centers, their website allows their customers to book same day appointments and book virtual visits where they can interact with doctors about current symptoms and illnesses. Their pricing is transparent and posted right on their homepage – in person visits are $145 and virtual visits are $45. These virtual visits have the ability to serve a vital role of identifying potentially infectious diseases such as Covid-19. If a patient is feeling ill, they can contact a medical professional at Carbon Health where they can assess whether or not it is dangerous for them to be interacting with others. Carbon Health recently received approval to test for Covid-19 in their clinics as well. The combination of early detection of symptoms via virtual visit and convenient locations for testing may prove vital to slowing the spread of the dangerous virus.New age healthcare providers are not the only companies embracing a retail centric approach. Retail giants such as Walmart and CVS are among those entering the market as well. Walmart’s Dallas, Georgia location is a one stop shop for all healthcare needs. The facility provides primary care, dental care, vision, psychiatric counseling, and health and wellness programs. Walmart’s Vice President of Health Transformation, Marcus Osborne said, “When you give customer’s options, they will engage more.”[2] CVS says it has plans to renovate 1,500 of their existing locations to provide HealthHUBS to their customers which will dedicate 20% of the store to healthcare services. CVS’s goal is to renovate stores that are located in markets that are underserved in terms of their access to healthcare.[3] What’s truly amazing about the progression of retail healthcare is its ability to act as preventative measure. Customers will now be able to catch a health problem that otherwise could have grown to a life-threatening issue while out shopping for groceries. Retail heath providers will not only bring daily foot traffic to retail projects, it will keep those customers coming back by keeping them healthy.[1] https://www.hcarefacilities.com/newsletter/article.asp?id=1255[2] https://www.fiercehealthcare.com/practices/inside-look-at-walmart-s-new-health-clinics[3] https://www.fiercehealthcare.com/tech/cvs-health-s-digital-executive-we-want-to-create-a-healthcare-experience-as-easy-to-use-and