2014  Economic  Forecast  Kathy  Doyle  Thomas    Chief  Strategy  Officer    

Half  Price  Books  

State of Retail in North Texas

Kathy Doyle Thomas Chief Strategy Officer

Half Price Books

Texas-based Retailers

New to North Texas

Real Estate in Metroplex •  The market is alive and booming

•  Multi-family properties are popping up everywhere

•  DFW office space is at a premium – vacancy rate dropped a

full percentage point quarter-to-quarter

•  Many retailers are taking over existing centers instead of building new ones

Issues for Retailers this Holiday Season

•  NRF says government shutdown makes customers cautious about holiday spending

•  Shoppers plan to spend 2% less

•  29% say government situation affects spending plans

•  51% say the economy would have impact on holiday spending

•  79.5% plan to spend less overall

•  Thanksgiving is late, so shopping season shorter

Buying Habits

•  Amazon is every retailer’s competition

•  “Showrooming” is a major problem for retailers

•  43% of people have admitted to “showrooming”

Buying Habits

•  Customers more savvy than ever

•  Mobile devices allow for immediate product research

•  If they don’t like something, they love to share

Mobile Devices/Tablets •  55% of time spent with online retail in June 2013 occurred

on a mobile device •  44% on smart phones and 11% on tablets

*according to a survey by comScore

HPB Customer Strategy •  HPB offering new product mix like new bestsellers at

all stores

•  We cannot let a customer leave without buying a book

HPB Customer Strategy

•  Half Price Books is revamping website to help compete in online sales

•  Customer service is more important than ever to compete with Amazon