 Re: Retail Kiosk
Hi, everybody. Nancy here again from Specialty Retail Report, the cart & kiosk magazine, just to say that mall leasing managers can be great help if you're trying to figure out if a seasonal holiday cart or kiosk is worthwhile financially. Lots of times they can give you a sales history of a particular concept based on a previous tenant (or, they can check with their sister malls within the developer's portfolio to see how t-shirt carts/kiosks have been doing in similar malls).
If a mall did have a t-shirt tenant last season/recently who no longer is there, keep in mind that there are lots of reasons a t-shirt cart/kiosk that operated for the holidays '07 might not return to a particular mall for the '08 holidays -- from the worst-case scenario (they just couldn't make the sales they needed, which could be due to any number of factors) to the best-case scenario (they did so well that they expanded to an inline store in the mall or another mall, or to an off-mall store, or what have you).
So if you're interested in a certain mall in your area, make contact with the specialty leasing (aka cart/kiosk program) manager there, to see what you can find out in terms of sales history.
Just a heads-up: When you contact a leasing manager, keep in mind that they're really, really busy people who might, depending on how "popular" their mall is, get dozens of calls from entrepreneurs seeking cart/kiosk info, so usually email is the best way to start, and lots of malls have cart/kiosk concept applications online that will give you a clue as to what info a leasing manager will want from you (do a google search for "specialty leasing" +application and you'll see lots of apps that might help you get a better feel for what leasing managers care about). Also, if you research the particular mall you're interested in in advance of contacting the leasing manager, that will show them you're "on the ball." Lots of malls have significant demographic, etc. information about their shoppers right on their websites. (Also, we have an article running right now on our home page that's called "Landing Your Dream Location" that tells more about how to analyze a mall's potential.)
The core of what a leasing rep/mgr. will want to know from you is:
* What's your particular t-shirt concept? (Be as specific as possible; make it unique and you'll have a better chance of landing space.)
* Does your product "match" the mall's shopper base? (Are you trying to sell a very upscale t-shirt line in a very downscale mall, or vice versa?)
* What do you imagine your cart/kiosk would look like? How will it be visually merchandised?
* What are your proposed price points? (And what's your markup -- this will help them determine if you can make a go of it financially; if they don't think you can, they'll take a pass, or they might be able to help you find a product supplier who will give you a lower cost of goods.)
* Do you have a grasp of the retail-business end of things? (Do you have retail experience? If not, have you educated yourself about what it takes to get into retail and run a retail store?)
* Will you be 100% committed to the success of your retail venture? (Will you be at the location, managing your operations, or do you plan to try to manage it remotely, so to speak?)
* The most-important question in their mind (other than "Will you be able to pay rent on time?") is: What will your retail business add to the mall? Does your product give the mall something they don't already have (or a fresh new presentation of something they already have)? Something shoppers will find interesting? Of course, not every cart concept has to be "the latest greatest product X," but if you can find an angle that gives the mall something unusual, you'll be more likely to get in.
Just FYI: Specialty leasing reps/managers often use the term RMU or Retail Merchandising Unit, industry jargon for "cart." Salespeople stand next to a cart, but stand inside a kiosk, which is larger and often occupied by a brand-name company. You'll want a cart in all likelihood, and if you use the term RMU (MRU in Canada), you'll "connect" with them in a small yet meaningful way.
In terms of timing, often a leasing manager will get info from you on your concept and have to "run it up the corporate flagpole to see who salutes," so don't be surprised if the process takes a while. That's a good argument for getting started asap, but one caveat: Lots of cart/kiosk locations are secured over spring/summer by big companies who might operate hundreds of locations (think personalized Christmas ornament carts), so if you call a leasing manager today, they might not yet know exactly which cart/kiosk space will be available for the winter holidays '08. That said, when they do get a handle on what spaces will be open for the holidays, they will want to rock 'n roll right away, so you'll be much better off if they already know about you and have a good feeling about your concept's potential for success.
I certainly don't want to overstate your chances of success, because we all know that there are no guarantees, but I will say that over the 12+ years I've been covering the cart/kiosk biz, I've interviewed more than my fair share of entrepreneurs who started out with 1 cart or kiosk and turned that into a multimillion-dollar company. I know it can be done because I've watched people do it.
Sorry this post got so long. Hope it gives you some helpful info
Good luck! Questions? Just ask!
--Nancy
Last edited by Rodney; June 12th, 2008 at 08:39 AM.
Reason: removed self promotion as per forum rules
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