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Shopping Centers Today -> February 2002
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MANUFACTURERS LEASE KIOSKS
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| Kiosks offer manufacturers some valuable exposure to potential customers, as well as a chance to sell. |
In their constant quest to find new tenants to reinvigorate centers, specialty-leasing professionals have gone beyond typical merchandise retailers lately, finding themselves dealing directly with manufacturers.
Both Dell Computer Corp. and The Coca-Cola Co. presented and sold their wares from carts this past holiday season.
“We have been a little more creative in using our shopping centers as a platform for any business, traditional or nontraditional,” said Daniel DiCillo, director of new business development for Developers Diversified Realty Corp., Cleveland. Its more unusual specialty tenants have included Air Force recruitment kiosks, complete with F-15 simulators.
The two kiosks Dell operated during the holidays were pure retail plays, while Coke’s foray into specialty leasing was intended to reinforce what is already one of the world’s dominant brands.
Bringing manufacturers into a retail environment not only helps diversify the tenant mix, but also provides a new conduit to consumers, experts say.
“It’s a whole separate market to get to the people,” said industry consultant Heidi Maybruck, a partner at Columbus, Ohio-based TM Partners, a specialty-leasing consulting firm. “We’re trying to urge future manufacturers to test their product in the mall.”
By opening kiosks at Coolsprings Galleria in Nashville, Tenn., and Stonebriar Center in Dallas, Dell’s goal was “to move boxes,” said Brad Boa, president of Dallas-based Just Pedestals, the consulting firm Dell hired to create its retail program. The 10-foot-by-12-foot kiosks displayed computers that customers could then order for delivery to their homes — a variation on Dell’s online and phone-order system. Prices ranged from $599 PCs to high-end systems.
The move also exposed Dell to customers who might not otherwise have known about the company.
“Thirty percent of the American population doesn’t have PCs. How do you reach them?” said Boa, adding that the company could do this at just about any mall. “Dell is blending advertising with moving a product, while creating an experience.”
The kiosk also provides male shoppers with someplace to go while the women shop elsewhere.
Coca-Cola sees its mall units as an opportunity to reinforce its brand recognition; it was trying to do much the same thing through a small chain of licensed merchandise stores it operated, including one on New York City’s Fifth Avenue, most of which have closed. Opening a holiday kiosk at Discover Mills in Atlanta allowed the locally based soft-drink maker a chance to sell company memorabilia and keep its trademark strong, said Linda A. Frakes, president of The Retail Source, Alpharetta, Ga., which provides consultation on temporary retail strategy. Frakes and her company created a custom unit for Coke, which had sponsored a large play area at the mall.
Coke’s 10-foot-by-15-foot kiosk provided additional exposure to an already substantial advertising campaign.
“The purpose is to get out in front of the public and develop a relationship,” Frakes said.
The two companies differed somewhat in their approach to temporary tenanting. Coke, a wholesaler as well as a manufacturer, required some retail education and needed outside staffers to man the kiosks. Dell, on the other hand, sent its own employees because of the product expertise its sales people must have.
The Coca-Cola Discover Mills unit debuted on Nov. 2, remaining open until after the holidays. The Dell units opened in mid-November and were still selling at press time. Both companies said it was too early to give a full assessment of the strategy’s success. But TM Partners’ Maybruck said she was impressed.
“They’re doing a fantastic job, intermingling with people.”
 | Current Issue November 2008 |