"I live on Delta airlines,” jokes Bob Maricich, Chairman and CEO of International Market Centers (IMC), when we talk about the ever-growing portfolio of property and projects that his organization continues to acquire and undertake.
And between the merger of IMC and AmericasMart, plus the addition of a new Expo Center coming to the World Market Center Las Vegas campus, things at the largest operator of showroom space for the furnishings, home decor and gift industries don’t appear to be slowing down.
With all of this change — and big change at that — comes questions from the industry about what will happen and how all facets will be affected. We sat down with Maricich to find out what’s planned for Atlanta, how the new Expo Center will fit in and more.
Behind the Merger
IMC has done extensive research over the last seven years, and from that, learned that the buyers’ value proposition is clear: They want to go somewhere where there’s a broad product assortment — particularly of what’s new — and they want to do it in an effective and efficient way, meaning affordability, ease of navigation and traveling to and from the airport are all factors.
IMC’s thesis was then that there was a need for a dominant Eastern market and a dominant Western market because the country is just too big — regional markets and small shows don’t have enough resources to command the attention of a sizeable amount of buyers. That shook out to be High Point in the East and Las Vegas in the West, where 80-something percent of buyers are exclusive to either market.
In the same vein, when thinking about gift, IMC looked at Atlanta as the undisputed home of this segment, so the merger made sense. And the organization may have (pleasantly) gotten more than they bargained for with the deal.
“The really nice surprise for us in Atlanta has been apparel,” says Maricich. “For people like me who didn’t know the apparel business, our bias was fast fashion. If you’re changing your product line every two weeks, why would you need two shows or four shows?”
But after a commissioned survey of buyers and sellers made abundantly clear that apparel is an important and vibrant part of the gift industry, nothing more needed to be said.
“Now even my awareness is heightened and when I go into any gift store, I see some clothing,” Maricich says. “So just like furniture and home decor have morphed to the point where it’s difficult to say ‘this guy’s home decor and this guy’s furniture,’ this finding really speaks to how buyers are buying today — it’s a lifestyle thing.”
What’s Happening in Atlanta?
With apparel as an unforeseen plus, what does this mean for the future of the Atlanta market? And how will home fit into the equation?
First thing’s first. There’s one thing Maricich definitely wants you to know: “Atlanta’s not broken.”
With IMC’s access to capital and fresh eyes providing fresh ideas, the company is invested in improving the buying experience there. “We’re going to be in Atlanta with an open checkbook and open eyes and saying ‘okay, how do we make this better for the buyer?’” he explains.
That means perfecting the assortment of resources and finding the right neighborhoods for tenants, among other improvements.
And another thing’s for sure: The markets won’t be competing against one another. According to Maricich, the net promoter score for buyers going to Atlanta is very, very high, so IMC has no interest in trying to bring those buyers to High Point or Las Vegas.
“It’s amazing the respect that Atlanta and the people of this industry have for Mr. Portman and what he did,” Maricich says. “He really is a legend. There’s a responsibility that comes when you buy something like that.”
Targeting Designers
In both Las Vegas and Atlanta, targeting interior designers is an important initiative.
In Las Vegas, the IMC team is trying a few things: targeted, old-fashioned mail and emails; a call center and outreach; and offering CEUs through programming at market to name a few.
The one thing Maricich thinks Las Vegas has in its favor is the breadth of price points the market offers, versus design centers that mostly focus on exclusive and upper-end product.
“I was talking to my doctor recently and it reminded me of the same thing that’s happening in interior design today. He’ll diagnose someone, and when they come back they know just as much, if not more, about the disease than him,” he says with a laugh. “Now, someone who’s thinking about a remodel or new home, regardless of their budget, has a point of view as to what things cost. And so designers often feel fenced in when someone says ‘I really like this great product, but what’s wrong with Pottery Barn or Restoration Hardware in this room?’”
A designer coming to the Las Vegas Market will have access to product at all of those price points.
And with the news in late August that IMC was set to acquire the Atlanta Decorative Arts Center (ADAC) as well, what about daily design business?
According to Maricich, there’s an “unbelievable, great daily business” already in Atlanta and the question is how, once again, can it be made better? Factors like layout and marketing will play a role.
Las Vegas will actually be taking a trick out of the ADAC playbook and will build some offices for designers to use. “In Las Vegas, we have a unique challenge in that we’re not a very big drive in market. So we’ve got to look at more of a unique way to tackle that.”
The New Expo Center
It was announced this spring that a new Expo Center will make its home on the World Market Center Las Vegas campus. The city of Las Vegas has committed $30 million dollars of tax incremental financing to help construct the 350,000-square-foot facility, which will provide exhibition and meeting space in the downtown area for corporate and private events, meetings and trade shows, as well as the market.
A footprint has been chosen, drawings have been created, and at press time, the plan was to go in front of city council to get approval in early September, then to put a shovel in the ground this October or November, targeting July 2020 as a grand opening.
“We have every incentive to try and get this up faster,” Maricich says of the Expo’s timeline. “The cost of construction in Las Vegas is skyrocketing. Seven or eight years ago, I said they would never build another hotel room in Vegas as long as I live. There’s only like 6,000 under construction right now.”
There’s another reason for speediness, too. If you wanted to launch a trade show right now in Las Vegas during optimum months — January, February or March — there’s nowhere to go as the city is sold out.
“We’ll be there as a solution,” Maricich explains. “We’re also in a unique position when it comes to the hotel and gaming community — we’re Switzerland. We’re not dependent on putting heads in beds and so we can approach the downtown hotels or the Strip hotels and say ‘we can be your convention venue.’”
The Expo Center will also be in a sweet spot size-wise. With millions of square feet at the Sands, Las Vegas Convention Center and Mandalay Bay, and then a bunch of smaller facilities, this falls right in the middle.
Forging Ahead
As we close the interview, Maricich jokes: “This is the first time in 10 years that somebody didn’t say in an interview ‘There’s a rumor that you’re going to turn a building C into a hospital, or building D is never happening.”
The rumors are definitely out there, and he confirmed that one of them is true — IMC will continue to go after more categories, as is their M.O. We’ll all have to stay tuned to see what’s next in store.
