InvenTrust’s Greaner: Understanding Consumers “Has Never Been More Important”

Focusing on grocery-anchored retail may mean building a portfolio around a recession- and Internet-proof segment, yet it also entails a thorough understanding of tenants and market dynamics. As the industry gears up for next week’s ICSC New York Deal Making 2018 conference, EVP and COO Ivy Z. Greaner of InvenTrust Properties provides insights into how her company follows through on that understanding.

Q: InvenTrust focuses on the open-air shopping center segment. What are the advantages of a targeted approach as compared with a more generalized acquisition/ownership model?

A: Our portfolio benefits from the targeted approach that we identified a couple of years ago: to acquire grocery-anchored centers at premiere locations in growth markets. We identify grocers who will be market leaders for the long term in those markets, and seek to acquire those type of assets.

The retail market is at a major inflection point, and grocers have been in the forefront of research and data mining, to adjust for the significant changes that are taking place, and will take place. We have focused on learning about what makes a grocer successful—what challenges grocers are experiencing in this retail cycle, and what solutions they’re applying to effectively overcome those challenges.

Understanding the motivation of customers has never been more important than right now. Consumers want convenience and a unique shopping experience. Having the capital to invest in programs like same-day, driverless delivery programs; click & pick grocery pickup; providing individual, predictive shopping lists; and apps that provide shoppers their health score related to the items in their shopping cart are all important to the long-term success of a grocery operator.

Since we understand this business so well, we can proactively partner with these grocers to help make their locations more productive, such as adding pick up parking spots, adding LED lighting to decrease costs and increase brightness for evening shoppers, or improving connectivity bandwidth for new technology needs. InvenTrust takes a long-term view when looking at acquiring grocery-anchored assets.

Q: Within a market that meets InvenTrust’s basic demographics criteria, what factors can make a specific property more attractive or less attractive?

A: The strength of the grocery operator is paramount—we are interested in purchasing centers where the number one or number two grocer in the market is located. Also important is proximity to dense residential housing and a deep employment base. A tenant mix that complements the grocer is also crucial, and if the center has vacancies or upcoming lease expirations, we will be able to create the right kind of co-tenancy, with national brands, coupled with local retailers and convenience-oriented local businesses.

One example of this is PGA Plaza, a center based in Palm Beach Gardens, FL, which we purchased earlier this year. This asset draws in significant foot traffic from its popular Trader Joe’s grocery anchored tenant, making this a highly-desired location for other local and regional retailers to attract and service customers. Based on its demographics, location and mix, PGA Plaza is a destination location for local shoppers about 2-3 times a week—that was a key factor in our decision to purchase this property.

Q: InvenTrust takes a collaborative approach with its retail partners. What are some of the ways in which this approach plays out?

A: Every department at InvenTrust is involved with tenant collaboration. Starting with our leasing team, they are seasoned and experienced not only in their markets but have longstanding relationships with our retail partners as well. Since many of our retail partners are in multiple assets, our relationships have to be strong with the true spirit of give and take so that both of our respective businesses can be successful.

Our property managers are our day-to-day front line, who are in constant contact with our tenants regarding the operation and maintenance of the properties, so that we always put our best foot forward in the communities where we are located and give the retailer the best showcase for their product and services. Our construction department coordinates work with contractors and tenants to make sure new stores get opened on time to meet prescribed goals. This year, our marketing group rolled out a location marketing program that helps our tenants establish a web presence so they are more likely to be found when shoppers are looking for goods or services on the web.

Placemaking is important, and as an example of our efforts, at our center University Oaks, in Round Rock, TX, we upgraded a children’s play area that is adjacent to a lineup of food tenants, helping to grow the sales of the tenants in that area and create an environment that the customer wants to come to. We continue to strive to evolve to meet the ever-evolving marketplace demands.

For comments, questions or concerns, please contact Paul Bubny