SCL CONFERENCE 2014RESPONDING TO CHANGE

Extending Customer Choice

Case Study: Macerich

Presented by Fiona Honeyman

• Retail property owners in the U.S.

• Number of malls throughout the country

• Concierge desks sell their gift cards

SCL CONFERENCE 2014RESPONDING TO CHANGE

Gift cards in the U.S:

• In the 2012 holiday season over $43 bn in gift card sales changed hands.

• Card sales have remained fairly constant, however, the number of gift cards available continues to rise, increasing competition for market share.

• Closed loop becoming more popular.

SCL CONFERENCE 2014RESPONDING TO CHANGE

• Client via a third party program manager since 2008

• Open loop cards only

SCL CONFERENCE 2014RESPONDING TO CHANGE

• Restricted by exclusivity clause

• Offering remained the same whilst customer tastes changed

• Steady decline in sales year on year

SCL CONFERENCE 2014RESPONDING TO CHANGE

• Macerich changed to a direct relationship with SCL in 2013

• Selected Blackhawk Network to replace old supplier/program manager

SCL CONFERENCE 2014RESPONDING TO CHANGE

SCL CONFERENCE 2014RESPONDING TO CHANGE

• Integration

• Transition from previous processor to

Blackhawks processor

• More flexibility in terms of products, more

features, tailored to Macerich.

Now: 6 open loop cards (visa branded)

Over 60 closed loop cards include iTunes, Gap, TGI Friday, Home Depot, Barnes and Noble and AMC Theaters

SCL CONFERENCE 2014RESPONDING TO CHANGE

• New products launched in late November

• December sales bucked the trend

SCL CONFERENCE 2014RESPONDING TO CHANGE

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2012 2013

Macerich

GGP

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2012 2013

Macerich

GGPOther mall client

New products have opened up new opportunities to compete via offers and other incentives E.G. upcoming Gap Offer

SCL CONFERENCE 2014RESPONDING TO CHANGE

COMING SOON• Bulk orders

• Mobile sales

SCL CONFERENCE 2014RESPONDING TO CHANGE