E-commerce isn’t going anywhere, but brick-and-mortar retailers are rethinking and redesigning their stores to attract consumers. Star World, a relatively new retail concept, is springing to life and bringing with it a new retail format, filled with kiosks for customers to both browse and purchase products across any one of their locations.
Connect Media’s Daniella Soloway spoke with SRS Real Estate Partners’ Matt Hardke about the NNN investment opportunity for Star World’s Los Angeles location, and how the hispanic-focused technology, home and fashion-driven retail store is changing the game.
Q. What sets Star World apart as a NNN investment opportunity?
A. Star World is a cutting-edge retailer with an all-star executive lineup that combines clicks with bricks, offering technology, home, and fashion goods and services in a convenient, customer-centric setting and online platform. The concept is specifically tailored to the exponentially growing U.S. Hispanic market and offers financial services to under-banked consumers, regardless of immigration status or lack of credit history. Their business model consists of multiple income streams that allow for strong rents at a wide variety of locations with an aggressive expansion aiming for 75 locations within the next five years.
The flagship store in Huntington Park, the number one Hispanic market in the country, caters perfectly to the target demographic. It is located in a striking building situated as a pad/co-anchor to a Superior Grocers anchored shopping center, directly at a major signalized intersection with heavy traffic and population density. The store’s incredible sales are projected to exceed $15M the first year. This, along with the long lease term, substantial rent increases, and strong personal guarantee make Star World a highly sought after investment.
Q. Tell us about the retailers’ omnichanel concept and why it’ll be successful and in-line with e-commerce’s continued rise?
A. Star World’s consumer experience is a hybrid between e-commerce and traditional brick-and mortar retail. The business model offers flexibility in the dynamic retail landscape and allows them to easily adapt the store footprint and layout to cater to different markets and spaces ranging from 5,000-30,000 square feet.
Shoppers can see and feel real products while browsing countless variations and additional merchandise available online via large interactive screens in the “World of Click” kiosks throughout the store. Its consumer experience blends in-store and online shopping, allowing sales to occur at home on the go just as easily as in person.
Furthermore, Star World grants instant credit to its customers and employs a proprietary algorithm to assess risk payment based on the applicant’s income stability. This proven strategy allowed founder Jerry Azarkman to achieve astounding sales volumes at his former venture, Curacao.
Q. Why is Star World targeting the Latino community? Where do they see more locations coming into existence?
A. Star World’s focus on the Latino community is based upon its rapid growth and phenomenal spending power – an estimated $1.5 trillion last year, up 50% since 2010. Azarkman had extreme success in this market previously and relates well to the customer base as a first generation immigrant himself. The competitive prices, engaging consumer experience, and flexible financing appeal to the credit-under-served community. The next location opens soon in Oxnard, with several more to follow in select markets throughout the Southwest and nationally.