Cushman & Wakefield newCommerce Brochure

On the Edge of the Evolving Consumer Experience

newCommerce: The New Way We Do Business

Seamless, full-service solutions for today’s ever-evolving retail landscape.

Cushman & Wakefield’s newCommerce service is the business and thought leadership collaboration connecting our Retail Services platform with our Logistics, Industrial, and eCommerce expertise. This connection is being driven by the advancement of omni-channel shopping, technology, bricks-and-mortar experiential retail, and the need for coordinated supply

chain functions. Cushman & Wakefield aims to broaden the reach and change the paradigm for retailers, advising on what is changing in these sectors, and on how retailers can maintain success and grow into the future. It’s not eCommerce…

It’s newCommerce. And it includes it all.

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RETAIL SERVICES

#1

95+ Retail Markets

in the U.S. by SF Leased* *Since 2016; The Real Deal

800+ 37.6M Retail Professionals in the Americas

$7.9B Transaction Value

Aggregate SF

INDUSTRIAL & SUPPLY CHAIN SOLUTIONS

#1

120+

Ranking in the U.S. by Industrial SF Leased*

Markets

*According to data sourced by the CoStar Group

840+

251.9M

Industrial Professionals in the Americas

Aggregate SF

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eCommerce Direct-to- Consumer to top $520B in the U.S. in 2018—Growing 15+% per Year

eCommerce-Related Leasing Represented Nearly 30% of U.S. Industrial Leasing Since 2012

Cushman & Wakefield Has Completed Over 650

eCommerce Logistics Transactions, Totaling Over 100M SF

59% of Millennials Say a Nearby Physical Store Presence is Important to Them When Buying Online

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Cushman & Wakefield has extensive knowledge in retail services relating to eCommerce, logistics, and supply chain. Our collaborative list of service offerings includes: COLLABORATIVE SERVICE OFFERINGS

Project & Development Services (PDS)

Construction programming, planning, design, bid, and procurement; vendor management; POS installation; new construction; remodels; improvements Lease advisory and negotiation, site selection and transaction management

Asset Services

Engineering management, sustainability consulting, facilities management, and facilities audits & assessments

Capital Markets Services Clicks-to-Bricks Transition

Acquisition and disposition of properties/assets

Retail and Industrial Brokerage Services

Location consulting, logistics network strategy, facility design, and adaptation Visualize the entire network, including inbound, supply chain, stores, and direct-to- consumer Optimize facility design to maximize process efficiencies and capital deployment Negotiate, secure, and administer relocation and investment incentives from state and local agencies Where to store/stage inventory, how to use inventory to meet service expectations

Strategic Retail & Industrial Consulting

Market entry, store expansion, portfolio optimization, and brand entry

Full Network Planning

Supply Chain Consulting, Site Selection, Labor Analytics

Identify the optimal location/ size/properties for distribution centers, fulfillment centers, and stores based on geography and demographics Manage and support transactions across a portfolio – regionally, nationally, or globally

High-Performance Facility Design

Transaction & Portfolio Management

Incentives Consulting

Transportation Support

Transportation operations and sourcing

Inventory Optimization & Placement

Valuation & Advisory

Valuation of property and equipment, property tax services, appraisal management, and portfolio evaluation

Material Handling Equipment (MHE)

Effectively leverage labor with MHE design and layout

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RETAILER CHALLENGE: How can smaller retailers successfully compete for online sales?

The Cushman & Wakefield Edge With robust expertise in eCommerce strategy and leadership that contains first-hand experience, Cushman & Wakefield can advise on the pros and cons of selling in the eMarketplace and how to navigate the ever- evolving digital landscape.

Some eCommerce sales giants cannot be beat—But that doesn’t mean small or mid-sized retailers can’t gain a foothold in the online sales market and see success. Offering quick order processing and fast delivery are must- haves for most eCommerce consumers. Using a Third Party Provider (3PL) to assist with order fulfillment is a smart option for new, small or mid-sized companies or those transitioning from pure bricks-and-mortar sales to the online environment.

In addition, partnering with an existing online retailer to sell products may deliver an extremely high click-rate and offer sales volumes a retailer may not be able to achieve on its own.

RETAILER CHALLENGE: How do I know if my distribution network is optimized for all my current and anticipated consumer needs?

The Cushman & Wakefield Edge Our strong resources perform quantitative assessments of a retailer’s existing distribution network to plan and develop the right changes for each client.

Since the retail and logistics world is fast- paced and rapidly changing, it is imperative to constantly be tracking, optimizing, and enhancing retail distribution networks.

Developing and tracking the most effective KPIs and metrics are important for measuring network performance. This often demands independent outside expertise to evaluate and provide a strategic viewpoint.

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RETAILER CHALLENGE: Can I run my direct-to-consumer, store, and wholesale distribution using the same facilities?

The Cushman & Wakefield Edge With extensive internal and leveraged partner-expertise in supply chain consulting, we can provide proper evaluation to assess status quo and develop improvements, and project management to deliver facilities, real estate, and MHE (material handling equipment) to execute the best strategy for each retailer.

The nature of running “case-pack” flow of goods in and out of legacy distribution centers requires a radically different technology and process than fulfilling individual orders.

It is rare for direct-to-consumer and bulk handling to be compatible, but for some types of goods and product flows, the facilities can be leveraged together.

RETAILER CHALLENGE: What is the advantage to integrating my retail and logistics real estate and operations?

The Cushman & Wakefield Edge Integration of Retail and Logistics expertise ensures optimal coordination and planning of these asset types for our clients. We are able to support improved alignment of historically siloed functions with the ability to shorten speed-to-market and improve costs changing a retailer’s supply chain through a strategic value proposition.

Demand planning and challenges to modern inventory planning are a whole new world today, different than just three years ago.

Having the right logistics real estate assets in the right locations is critically important.

The most innovative retail technology in-store and online, strongest brand image and equity are only as good as the performance of the supply chain that supports it.

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RETAILER CHALLENGE: Should I self perform my direct-to-consumer, store, and wholesale fulfillment, or contract out to third parties (3PLs)?

The Cushman & Wakefield Edge We hold a deep bench strength in 3PL evaluation/auditing AND real estate professionals with extensive 3PL operations experience, which we can leverage based on client needs.

Deciding on a 3PL or self-perform model depends on a multitude of characteristics/ economics (such as: nature of inventory and process flow), as well as a retailer’s willingness and ability to manage the risk of self-performance.

3PLs are structured to: • Scale production up or down significantly faster than most who self-perform • Help to distance the retailer from a plethora of labor, HR, and risk-related issues • Offer a single-point-of-accountability for performance metrics

RETAILER CHALLENGE: I am a Pure Player eCommerce retailer building a physical store presence—what should I consider? The Cushman & Wakefield Edge We can help a Pure Player (pure eCommerce retailer) maximize their bricks-and-mortar investment by offering a unique set of retail consulting services utilizing a proprietary software to analyze market economics, aid in optimal location selection, and store planning strategy. We can simultaneously consult on ways to leverage existing back-end logistics and retail real estate to optimize for total inventory usage and expansion.

The right balance must be met between new physical presence and online retail so one compliments the other effectively.

Optimize existing direct-to- consumer supply chain and fulfillment operation to ensure

Develop a physical location plan that addresses sales velocity and allows for the necessary store replenishment system to be put into effect on the ground.

core business processes are stable and ready for expansion.

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RETAILER CHALLENGE: Is Click & Collect the best starting place for my omni-channel offerings?

The Cushman & Wakefield Edge Our professionals have market-leading experience partnering with retailers on developing alternative ways to leverage store footprint.

Click & Collect is not nearly as easy, cost effective, or successful for the consumer as it may seem, although to the retailer it may seem simple in the ability to leverage existing stores to meet consumer interest.

Fulfillment from store shelves to consumer OR shipping individual online orders to the store demands a different labor plan and store space layout model.

A retailer’s inventory management system will make or break the consumer experience for Click & Collect—if strong it will instill consumer trust; if weak it will lead to a poor consumer experience overall.

RETAILER CHALLENGE: How do I decide if I should lease or own my retail and logistics assets?

The Cushman & Wakefield Edge Our specialized capital markets and financial analysis teams work with retailers by providing supporting resources in evaluating, planning, and executing sales/lease transactions, site selection, and retail & logistics brokerage for new or expanded physical networks.

Answering the ‘lease vs. own’ question is contingent upon an array of factors such as business culture, ownership structure, demands for capital within other aspects of the business, as well as the nature of the balance sheet, taxes, cash flow management, and the local market characteristics.

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Unparalleled Retail Insight

eCommerce Leadership

Logistics & Supply Chain Expertise

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SEAMLESS APPROACH

SELECT COLLABORATIVE CLIENT ROSTER

• Auto Zone • Best Buy • Chewy.com • Crate & Barrel • Dick’s Sporting Goods

• HSN • Indochino • Jaguar/Land Rover • L.L. Bean • Levi’s • Lowe’s • Mercedes • Nordstrom

• One Kings Lane • Petco • Rue21 • Saks Fifth Avenue • Sears • Starbucks • Target • The Home Depot

• The North Face • UNTUCKit • Urban Outfitters • Vans

• Walmart • Wayfair • Wrangler

• Five Below • Fresh Direct • H&M

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newCommerce Lead

Benjamin D. Conwell Senior Managing Director

newCommerce Lead, Americas ben.conwell@cushwake.com +1 425 785 6325

Retail Services

Erika Schanke Managing Director Americas Retail Services erika.schanke@cushwake.com +1 212 841 5024

Supply Chain Engineering

Bryan Jensen Executive Vice President, Chairman St. Onge Company bjensen@stonge.com +1 717 840 8181

cushwakenewCommerce.com