THANK YOU SO MUCH.
THE INTERNATIONAL COUNSEL OF
SHOPPING CENTER FORECASTING A
NEARLY 5% INCREASE 4.9% IN
HOLIDAY SPENDING OVER LAST YEAR.
WITH SIX FEWER SHOPPING DAY IN
THANKSGIVING AND CHRISTMAS
JOINING US NOW INTERNATIONAL
SHOPPING CENTER KRRK OH TOM
MCGHEE SHOPPING CENTERS GET A
BAD WRAP DON'T THEY?
>> AS YOU SUGGEST 90% OF ALL
SALES STILL HAPPEN IN A PHYSICAL
STORE.
WE HAVE A STRONG ECONOMY AS YOU
GUYS TALKED ABOUT, GOOD CONSUMER
SENT SENTIMENT WE DO FORECAST A
STRONG PERCENT AND SHOPPING
CENTERS ARE PLACES PART OF THE
HOLIDAY TRADITION, I MEAN,
THAT'S PEOPLE GO TO, OBVIOUSLY,
PURCHASE GOODS THEY GO TO GET
INTO HOLIDAY MOOD.
YOU'LL SEE AS YOU SEE SHOPPING
CENTERS EVOLVE AS PART OF THE
RETAIL RENAISSANCE YOU SEE MORE
RESTAURANT ENTERTAINMENT THERE
AND PEOPLE GO TO PARTAKE IN THAT
AS WELL.
>> IF YOU WALK THE STREETS OF
NEW YORK YOU SEE A LOT OF RETAIL
AND GO TO MALLS YOU SEE VACANCY
SO CERTAINLY THAT --
THAT 10% OF ALL SALES BEING IN
MALLS IS REALLY DISRUPTIVE.
WHAT'S LONGER TERM PLAY FOR
MALLS IN TERMS OF REPOGGING
THEMSELVES TO BE RELEVANT IN A
DIGITAL WORLD?
>> THERE'S SO MUCH ATTENTION,
YOU KNOW, PLACE IN MALL INDUSTRY
AND, OBVIOUSLY, THERE ARE SOMING
STRUG PLING PROPERTIES BUTS
THERE'S A LOT OF REALLY THRIVING
PROPERTIES AND YOU KNOW ONE
STATISTIC I WOULD SAY AND BACK
TO THIS CHANGING DEMOGRAPHIC IN
CURE IT MAKES 6.7% OF G LRNTION
A TRANSITION FROM TRADITIONAL --
HAS TRANSITION FROM TRADITIONAL
RETAIL INTO FOOD AND BEVERAGE
AND ENTERTAINMENT AND SERVICES
THAT'S A HUGE CHANGE IN A VERY
SHORT PERIOD OF TIME IN A AN
INDUSTRY OF THIS SIZE AND SCALE.
I THINK YOU'RE GOING TO CONTINUE
TO SEE THAT BECAUSE PEOPLE ARE
ARE PLACING, YOU KNOW, OR
SPENDING MORE MONEY ON
EXPERIENCE IN SERVICES
PARTICULARLY MILLENNIALS.
IN AGING BABY BOOMERS AND SO I
THINK THAT'S WHAT YOU'RE GOING
TO SEE.
I THINK YOU'RE GOING TO SEE A
CHANGE IN MIX BETWEEN SHOPPING
CENTERS AND STREET RETAIL FOR
THAT MATTER.
PERFORM ON THIS NEXT QUESTION
THE INTERNET SERIOUSLY CHANGE
THE WORLD OF MUSIC, AND MOVIES
WITH --
BUT TO A CERTAIN POINT THERE'S
NO CONCERT AND THERE'S STILL
PEOPLE PAY 18 BUT THE CERTAIN
MOVIE THEY WANT TO SEE BUT --
>> CAN I STOP YOU AND POINT OUT
THAT PRESIDENT TRUMP IS
DEPLANING IS GETTING OFF OF AIR
FORCE ONE AND WEST PALM BEACH
FLORIDA THIS AFTER THE SURPRISE
TRIP TO AFGHANISTAN FOR THANKS
GIVE DAY.
EVEN SERVING UP TURKEY IN THE
FIXINGS TO THE TROOPS IN
AFGHANISTAN PRESIDENT TRUMP THEN
ANNOUNCING THAT RESUMPTION OF
PEACE TALKSES WITH TALIBAN AFTER
MAKING THAT SURPRISE VISIT.
AND THAT IS SENATOR BRASSO WITH
TRUMP HE WENT WITH PRESIDENT
TRUMP TO AFGHANISTAN.
BUT YOU SEE PRESIDENT TRUMP
GOING TO SPEND THE WEEKEND AT
MAR-A-LAGO AFTER THIS SURPRISE
VISIT MEANS A LOT TO THE TROOPS
THERE.
IT MEANS A LOT TO ANYBODY
SERVING OUR MILITARY, AND
CERTAINLY ALL AMERICANS TO SEE
THE PRESIDENT MAKE THAT KIND OF
VISIT.
WE'LL BE FOLLOWING HIS
ACTIVITIES OVER THE WEEKEND AND
MEANTIME CONTINUE WHAT YOU WERE
ASKING TOMO.
>> GOT THROWN WITH THE DEPLANING
WITH DELTA FLIGHT I THINK WHEN
PRESIDENT DOES IT AT MORE REGAL
L THAN THAT.
>> WE HAVE TO WAIT I'LL SAY
THIS.
WE HAVE TO ALWAYS WAIT TO SEE IF
PRESIDENT TRUMP STOPS AND SAYS
ANYTHING.
THERE'S NOT A GIANTING GAGGLE OF
REPORTERS THERE.
BUT AGAIN THE CHOPPER CHAT IS A
NEW FAVORITE TALK SHOW.
>> SKIP MY QUESTION TO THE
AUDIENCE TOM IT SEEM LIKE
INTERNET HAS A MAJOR IMPACT ON
MUSIC, AND MOVIES BUT IT DIDN'T
WIPE THEM OUT BUT THE CONCERT
EXPERIENCE WITH THE THE MOVIE
THEATER.
ARE WE OVERPLAY DEPTH OF RETAIL
BECAUSE IT IS EXPERIENCE AND
AMAZON AND THOSE THAT HIT A WALL
BECAUSE THERE'S SO MUCH OF THAT
EXPERIENCE THAT CAN TAKEN AWAY
WITH ONLINE SALE AND MISS WHAT
COULD POSSIBLY RAPID GROWTH OF
ONLINE SALES OF SHOPPING COULD
SLOW DOWN.
>> I THINK OVER THE LAST TEN
YEARS, THERE WAS A LOT OF
INVESTMENT OF THE DIGITAL
CHANNEL BECAUSE THAT WAS NEW.
I REALLY DO BELIEVE OVER THE
COURSE OF THE NEXT DECADE YOU
SEE SIGNIFICANT INVESTMENT IN
THE STORE NETWORK.
AND YOU'RE GOING TO SEE A
TREMENDOUS AM OF CONVERGE
BETWEEN THE DIGITAL WORLD AND
START TO SEE THAT RIGHT
RETAILERS THAT ARE DOING
EXCEPTIONALLY WAL-MART TARGET
ARE ALIGNING PHYSICAL AND
DIGITAL WORLD TOGETHER, AND EVEN
AMAZON THE WORLD LARGEST DIGITAL
RETAILER IS NOW INVESTING IN A
STORE NETWORK AND BUILDING OUT
PHYSICAL STORE SO TING THIS
CONCEPT OF, YOU KNOW, ONLINE
VERSUS PHYSICAL IN SOME WAYS IS
BECOMING DATED I THINK THERE'S
ONE CHANNEL THAT MATTERS THERE'S
A CONSUMER CHANNEL AND WINNING
RETAILERS ARE THOSE THAT ARE
GOING TO DO BEST IN DELIVERING
IN WHATEVER CHAP THAT CONSUMER
WANTS.
I DO BELIEVE THAT THE STORE WILL
ALWAYS BE THE THE CENTER OF THE
SHOPPING EXPERIENCE BECAUSE
PEOPLE ARE SOCIAL BEINGS AND
THEY VALUE AS WE SUGGESTED 90%
OF ALL SALES HAPPEN IN THE STORE
AND I DON'T THINK THAT'S GOING
TO SIGNIFICANTLY CHANGE OVER THE
COURSE OF THE NEXT DECADE.
>> L JOHN YOU'RE MAKING A FACE.
>> ANSWER THIS QUESTION YOUR
FORECAST FOR HOLIDAY SALES
GROWTH NEARLY% THAT'S AMBITIOUS
I BELIEVE AND HOW DID YOU MAKE
OUT LAST YEAR WHAT WAS YOUR
FORECAST LAST YEAR AND WHAT
ACTUALLY HAPPEN HADED?
>> YEAH WE WERE AROUND 4.2%
SOMEWHERE IN THAT RANGE AND WE
WERE IN THE BALLPARK FOR SURE.