Developing Big Boxes ECC Board Member Mike Gardner Regional VP of Real Estate & Design SESSION 1.

Developing Big Boxes

ECC Board Member

Mike GardnerRegional VP of Real Estate & Design

Mike GardnerRegional VP of Real Estate & Design

SESSION 1

Overview

Walmart Realty Retail Development Process Lessons Learned Chicago – An Example

FYE 1990• 1,402 Walmart Discount Stores• 123 Sam’s Clubs• 1,525 Total Domestic US Units.• 101 Million sq ft. for Retail Space• $25.8 Billion in Sales

FYE 2008• 1,075 Walmart Discount Stores• 2,256 Supercenters• 579 Sam’s Clubs• 112 Neighborhood Markets• 4,022 Total Domestic US Units• 616.7 Million sq ft. for Retail Space• $345 Billion in Sales.

Walmart Realty

Walmart Realty

U.S. Development FY08 • 38.1 Million sq ft

• 26 Million sq ft net (+4.8% growth)

• 192 Supercenters• 13 Sam’s Clubs• 20 Neighborhood Markets

U.S. Development YTD FY09• 23.8 Million sq ft• 126 Supercenters• 7 Sam’s Clubs• 12 Neighborhood Markets

Walmart Realty

Who are we?• Real Estate• Design• Architecture• Legal• Public Affairs• Market Research

Retail Development Process

Due Diligence• Survey/ Title Work• Geotechnical Studies• Environmental Site Assessment• Traffic Impact report• Utility Studies• Environment Impact report• Economic Impact reports• Community Efforts

Environmental Impact Reports -EIRs

New York – SEQR California – CEQUA New Jersey – CAFRA Florida – Concurrency Vermont – Act 250 Maine – MIGA

Community Efforts

Zoning• Initial Check• Look for trends and community concerns• Assess compliance• Develop “By-Right” Plan

Examples• Ephrata, PA – Flood plain/Special use

Community Efforts – cont.

Political Landscape• Identify Approving Bodies• Assess Voting Record• Engage In Dialogue

Examples• Huntington Beach, CA – Referendum • Chicago, IL

Community Efforts – cont.

Neighborhood Concerns• Identify Associations• Door to Door• Neighborhood Meetings• Listen to Concerns• Design Solutions

Examples• Walls/ Trees/ Bushes/ Berms• Livonia, MI

• Truck Traffic• Security Cameras

• Site and Store tours.

Community Efforts – cont.

Community Concerns• Identify Community Leaders• Engage in Dialogue• Identify in Community Concerns/ Causes• Create Solutions

Examples• Park Dedications• Historic Building Preservation

• Ionia, MI• Memphis, TN

• Tree Preservation

Community Efforts

Lessons Learned• Develop a Local Presence• Demand Competence & Excellence• Resist Urge to Cut Corners• Let Others Speak for You• Expect, Plan & Budget for Litigation

Chicago, Illinois

Chicago, Illinois

Before

Helene Curtis Plant

After

Chicago, Illinois

Green Roof

Chicago, Illinois

Chicago, IL

Involve Walmart Executives• Lee Scott, CEO• Tom Schoewe, CFO• John Menzer, Vice Chairman• Michael Lewis, Divisional President• Todd Libbra, Regional General Manager

Campaign For Support• Alderman Mitts (37th Ward)• Lobby Every Alderman• Seek to Create Coalitions

• Black Caucus• Hispanic Caucus

Chicago, Illinois

Create Jobs• 443 jobs – over 15,000 applied• Over 70% from western Chicago communities• Over 50% from 37th Ward• 77% African American• 18% Hispanic

Commit to the Community• Walmart committed over $500,000 to local

organizations, charities, and business organizations

Building Local Businesses• Support Local Chamber of Commerce with assistance

to Small Businesses.• Source product from Chicago based, minority-owned

businesses• Build using Chicago-based, female & minority-owned

contractor.

Chicago, Illinois

Margaret Garner CEO and President Broadway Consolidated Companies,

Inc. First African American to head construction of a Walmart

Store

Chicago, Illinois

Corporate Relevance

October 2005 – Katrina Engage Non Governmental Organizations Listen to Criticism & Suggestions Be Willing to Change

Corporate Relevance Economic Opportunity

• Customer Savings• Job Creation

Environment• Sustainability 360 – products, practices, lives &

communities Health Care

• More Accessible, More Affordable & Better Diversity

• Workforce & Vendors Ethics

• Improve Pay and Practices in Factories

Corporate Relevance

Invite Others to Participate Set Goals Measure Progress