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Addressing 'untruths' about the retail industry

 
Tom McGee, president of International Council of Shopping Centers, says  online helps in-store sales.
Tom McGee, president of International Council of Shopping Centers, says online helps in-store sales.
Published Dec. 9, 2015

Nearly 10,000 people, dressed in heels and loafers, sports coats and power suits, roamed the makeshift aisles of the Jacob K. Javits Convention Center in New York City on Monday and Tuesday, hoping to sign new deals with real estate brokers and retailers.

Their chatter was music to the ears of Tom McGee, the International Council of Shopping Centers' new president and CEO. The fact that the annual national deal-making conference had outgrown its previous home at the nearby New York Hilton bodes well for the retail industry, McGee said.

"This show continues to grow, and it's during the height of the holiday shopping season. I think that speaks volumes for the state of the industry," said McGee, who has been in charge of the international trade group for a little more than two months.

McGee, 48, joined ICSC after spending 26 years at Deloitte, a global professional services firm, where he served as vice chairman and deputy CEO, among other positions.

He plans to use his client services background to elevate the status of ICSC and make the organization the voice of the retail industry.

"And I plan to do that with facts, as opposed to perception," McGee said. "Retail is such an economic driver for this country. One in 11 Americans are employed in some way at a shopping center, and that doesn't even account for construction workers."

He spoke with the Tampa Bay Times about the state of retail.

What are some of the hottest topics at this year's convention?

Obviously, technology is a big component this year. But it's about conversion, not so much the "bricks versus clicks" argument anymore, which is dated. Most retail sales still come from in stores. There's this emergence happening where online and in-store are complementing each other. About one-third of shoppers who bought online picked up their items in store. Six out of 10 shoppers then bought something else in the store when they went to pick it up. Think about the catalog business, which came way before online sales. Catalog companies took away a much larger chunk of sales from brick-and-mortar stores than online retailers have. It's an experimental time for retail.

ICSC predicts a modest 3.5 percent growth for the holiday season. What led you to this conclusion?

Occupancy rates around the country are at 94 percent right now. That's very, very strong, and we've seen solid sales over this year. A lot of people think that Black Friday is a good barometer on how the holiday shopping season will do. But think about it: The holiday season is lengthening. People are shopping well before Black Friday and well after. The weekend before Christmas continues to be the busiest shopping weekend of the year. It's not just about one day.

What's another common "untruth" about the retail industry?

Everyone thinks that millennials don't shop in physical stores, when actually, they shop more in stores than any other age demographic. Sure, they're buying online, too. But they crave an experience like anyone else — they go to stores that create a unique experience, say like the Apple Store. The trick is how to emulate that in other brands.

Contact Justine Griffin at jgriffin@tampabay.com. Follow @SunBizGriffin.