Phillips Edison & Company, Inc. (PECO): Marketing Mix Analysis [10-2024 Updated]

In 2024, Phillips Edison & Company, Inc. (PECO) continues to redefine the landscape of retail real estate with its innovative approach to the marketing mix. By focusing on omni-channel grocery-anchored shopping centers, PECO not only caters to necessity-based retailers but also thrives in strong demographic markets across the U.S. With a robust portfolio of 290 properties and a commitment to sustainability, PECO is strategically positioned to enhance community engagement and attract tenants. Discover how their unique blend of Product, Place, Promotion, and Price drives success in the ever-evolving retail environment.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Product

Omni-Channel Grocery-Anchored Shopping Centers

Phillips Edison & Company, Inc. (PECO) focuses on omni-channel grocery-anchored shopping centers, which serve as essential retail spaces for consumers. These centers are designed to meet the needs of everyday shoppers by providing access to grocery stores and other necessity-based retailers.

Portfolio Overview

As of September 30, 2024, PECO's portfolio consists of 290 properties across 31 states. The total square footage of these properties is approximately 32,902 thousand square feet.

Retail Composition

The properties primarily host necessity-based retailers, including a mix of national, regional, and local tenants. This tenant diversity ensures that shopping centers can cater to a broad customer base while also minimizing risk associated with reliance on a single tenant type.

Lease Statistics

As of September 30, 2024, the average remaining lease term for PECO's properties is 4.4 years. Notably, 96.6% of the annual base rent (ABR) is generated from grocery-anchored centers, highlighting the company's focus on this strategic segment.

Tenant Mix

PECO's tenant mix includes a variety of retailers, ensuring that the shopping centers remain relevant and attractive to consumers. The average remaining lease term across the portfolio contributes to stable cash flows and predictable income.

Conclusion of Product Strategy

Overall, PECO's product strategy focuses on creating and maintaining a robust portfolio of grocery-anchored shopping centers, which serve as vital retail hubs in their respective communities. The emphasis on necessity-based retail ensures that these properties remain resilient in various economic conditions.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Place

Operates in strong demographic markets throughout the U.S.

Phillips Edison & Company, Inc. (PECO) operates across 31 states, focusing on markets with high population density and consumer spending. As of September 30, 2024, the company owned equity interests in 311 shopping centers, comprising approximately 35.2 million square feet of retail space.

Properties encompass 32.9 million square feet of retail space.

PECO's portfolio includes both wholly-owned shopping centers and those held through joint ventures. As of September 30, 2024, the total square footage of properties owned by PECO was reported at 32.9 million square feet.

Leased occupancy rate stands at 97.8%.

The company maintains a high occupancy rate, with a leased occupancy rate of 97.8% across its total portfolio as of September 30, 2024. This rate reflects the effectiveness of PECO's property management and tenant retention strategies.

Geographic diversification minimizes localized economic risks.

PECO's geographic diversification strategy helps mitigate localized economic risks. By operating in multiple states, the company reduces its vulnerability to economic downturns in any single market. This approach is supported by its substantial presence in states like Florida and California, which represent 12.2% and 10.9% of the company's annualized base rent (ABR), respectively.

Focus on markets with high population density and consumer spending.

PECO strategically targets areas with high consumer demand, focusing on neighborhoods that support necessity-based retail. This strategy is integral to its business model, which emphasizes grocery-anchored shopping centers that cater to everyday consumer needs.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Promotion

Engages in strategic partnerships with well-known grocery brands

Phillips Edison & Company, Inc. (PECO) has established partnerships with prominent grocery brands to enhance its market presence. As of September 30, 2024, approximately 96.6% of the company's annualized base rent (ABR) is derived from omni-channel grocery-anchored shopping centers. This strategic alignment with grocery brands not only boosts tenant occupancy rates but also ensures a steady flow of consumer traffic, which is crucial for retail success.

Utilizes digital marketing to attract tenants and consumers

PECO leverages digital marketing strategies to reach potential tenants and consumers effectively. The company employs targeted online advertising and social media campaigns to highlight available retail spaces and promote its shopping centers. In 2024, PECO's total revenues increased by 7.2% to $488.3 million, attributed partially to enhanced digital marketing efforts.

Hosts community events to enhance engagement and foot traffic

PECO regularly hosts community events to increase engagement and drive foot traffic to its shopping centers. These events not only create a vibrant atmosphere but also foster a sense of community among shoppers. The company reported that such initiatives have contributed to maintaining a 97.8% leased occupancy rate across its portfolio.

Emphasizes sustainability and community involvement in branding

PECO places a strong emphasis on sustainability and community involvement as part of its branding strategy. The company actively promotes its environmentally responsible practices, which resonate well with today's consumers. For instance, PECO's focus on sustainability has been instrumental in attracting tenants who prioritize eco-friendly operations, enhancing the overall appeal of its shopping centers.

Leverages social media for tenant promotions and center visibility

Social media platforms play a critical role in PECO's promotional strategy. The company utilizes these channels to promote tenant offerings and increase visibility for its shopping centers. Through engaging content and targeted advertisements, PECO effectively communicates promotions and events, contributing to a 12.2% increase in ABR from its properties in Florida and California.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Price

Rental Income

Rental income for Phillips Edison & Company increased to $161.8 million for Q3 2024, up from $149.6 million in Q3 2023, representing an increase of 8.2%.

Competitive Lease Rates

The company employs competitive lease rates to attract and retain tenants, ensuring that their offerings are appealing within the current market landscape. This strategy is critical in maintaining occupancy levels and maximizing revenue generation.

Flexible Lease Terms

PECO offers flexible lease terms tailored to accommodate various tenant needs. This flexibility aids in attracting a diverse tenant base and enhancing tenant satisfaction, which is essential for long-term occupancy stability.

Annualized Base Rent (ABR) per Square Foot

The annualized base rent per square foot reflects current market conditions, with an ABR of $14.68 per square foot reported for all leases. The average remaining lease term stands at 4.4 years.

Necessity-Based Goods

Focusing on necessity-based goods within their retail spaces supports stable rental income, as these goods tend to maintain demand regardless of economic fluctuations.

In summary, Phillips Edison & Company, Inc. (PECO) effectively utilizes its marketing mix to solidify its position in the grocery-anchored retail space. With a robust portfolio of 290 properties across the U.S., a high leased occupancy rate of 97.8%, and a strong emphasis on community engagement and sustainability, PECO is well-equipped to navigate the competitive landscape. Their strategic focus on necessity-based retailers ensures stable rental income, making them an attractive option for both tenants and investors alike.

Article updated on 8 Nov 2024

Resources:

1. Phillips Edison & Company, Inc. (PECO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Phillips Edison & Company, Inc. (PECO)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Phillips Edison & Company, Inc. (PECO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.