When the publishers of RD&E asked me to write the cover story for this issue, "Building Blocks: How to Build a Retail Component on a Gaming Property in the Best and Worst of Times," I wanted to lend the breadth of my experience as a seasoned retail chief executive, combine it with my 27 years as a Las Vegas resident who witnessed gaming's transformation, and have the best and the brightest in gaming and retail form a dream team roundtable and share their experience.

Common to the dialogue was the sobering effect the economy has had on the future of the two industries, for they are inextricably tied by the discretionary consumer. We agreed the future of the industries will be based upon a formula of best practices of the past, tempered by lessons learned which will provide products and services today's consumer can embrace. "Flat may be the new up," but I'll wager that "flat" will be a more solid platform for sustaining a prosperous future for these industries.

From my point of view, the consumer at all income strata has pulled back on spending. Most are buying essentials and are looking for value whenever they part with their dollar. Many retail experts, including me, believe today's shopper is more grounded, thoughtful, less impulsive in their buying behavior, and that pattern is here to stay. The result is any critical thinking about the future of retail and gaming calls for the industries to work smarter and be innovative with resources.

Here's the opinions of some of our other experts about the future of retail and other non-gaming amenities:

Alan Feldman Senior Vice President of Public Affairs, MGM Mirage

"These past 10 years we have had the capital to assist new concepts in amenities. We are going to have to become more creative in how we either modify existing amenities or refresh them to keep them new and exciting without spending a huge amount of capital."

Jason Spillerman Principal, Vibrant Development Group, LLC

"Now is the time you want to do things. The competition continues to grow and gaming continues to grow. Given the current financial climate, it's challenging, but if you stick to basic business fundamentals which seem to have gotten lost, you build things for a return on investment, you can add amenities, get a decent return on that investment, while differentiating your property from your competition."

Frank Volk Executive Vice President, Robert K. Futterman & Associates

"Any time you go through fire it certainly makes you sharpen the pencil and put on a different set of glasses and through that process we've gotten better. The lessons learned in Las Vegas when applied in the next wave of gaming will be more measured in approach. Companies are asking, 'Where are the gaps?' They are looking to change and add content in areas that need to be added and are not just adding for the sake of adding."

Dan Sheridan Executive Vice President, General Growth Properties, Inc.

"Where Las Vegas is today is an all-encompassing entertainment experience, and retail will always be an important part of these complexes. We will not see much new development in the future but one thing you can't forget, even though there have been tough times, there is still a tremendous number of people visiting here like no place else and when they come, they are inclined to spend money, and that's good for retail."

Jordan Covell Executive Director of Retail Operations, The Borgata and Water Club

"Retail has gone through a very difficult phase just like the general economy. I believe that the economy for retail is getting stronger and this purge needed to happen. We are entering into an upswing in retail and an upswing within most of the ancillary pieces of the puzzle from the hotel perspective because people demand to have more of an experience when they come."

Tom Wucherer Principal, YWS

"The retail component is just as important in Las Vegas as it has been. I do believe that in some markets where competition is increasing, we need to add more amenities to maintain a competitive edge and retail will become more important."

Jon Sparer Principal, YWS

"The growth and sophistication of retail in Las Vegas has been good for it. I don't see that changing. Tom and I travel a lot and we see untapped opportunities for retail in other cities. I just see retail growing."

Farid Matraki Vice President and General Manager, Crystals at City Center on maintaining the Crystals brand in tough times:

"Even when the economy was very shaky, we did not steer from the course of creating a pure luxury environment and experience. And to the point when we had to slow down leasing, waiting for better news, when we started again, we never strayed from our vision and promise to our tenants."

Ezra Bekhor President, LV Luxury Holdings, LLC

"I've seen overbuilding. I think these properties need to scale back their expectations based on the site and scale of the project. They need to make sure that their retail tenants always bring value to the table not just in terms of the shopping center but in how they are linked to their fellow tenants by having the same demographic of customer." 

By Pamela Joy Ring

Pamela Joy Ring, president  of Ring Retail Advisory, LLC, specializes in consulting resort and casino properties, retail real estate developers, retailers and consumers goods/services businesses in developing and improving their retail operations. As a business owner of a successful nationwide retail company, her 30-year track record of creating and growing retail and consumer-driven businesses is matched by her reputation for assisting clients in optimizing market reach and bottom line results. She is an author, speaker and serves on G2E’s 2009 board of advisers developing the conference’s retail curricula. Ring can be reached at 702-338-2665 or pamela@ringretailadvisory.com. Visit the website at www.ringretailadvisory.com.