LV shopping mall owner turns to Internet marketing

One of Las Vegas' largest shopping center owners hopes to transform Internet users into in-person shoppers.

In a move designed to capitalize on consumers' growing reliance on personal computers, San Diego-based Pan Pacific Retail Properties Inc. is partnering with Internet company Eversave.com of Boston.

Under the agreement, potential shoppers at Pan Pacific's six Las Vegas properties will be able to access retail information and special offers on their computers at home.

The company is rolling out the program in Portland, Ore. and will gradually expand it throughout the Western United States.

Pan Pacific's portfolio of 58 shopping centers includes about 9.1 million square feet of retail space in five Western states.

"We've decided to embrace the Internet, as it relates to real estate," said Pan Pacific Chief Executive Officer Stuart Tanz. "This search engine will provide our Las Vegas customers with easy online savings and information.

"It also allows retailers to go online and promote whatever product they choose to."

Tanz said he expects the program will be available in Las Vegas by the fourth quarter of this year.

As owner of more than 1.5 million square feet of retail space in Metro Las Vegas, Pan Pacific is a significant player in the area's retail sector. It first entered the market 10 years ago with the purchase of the Sahara Pavilion South, at the intersection of Sahara Avenue and Decatur Boulevard.

Since then, the company has added four Las Vegas retail plazas and one Henderson-based shopping center to its Southern Nevada portfolio.

Pan Pacific's majority owner is Revenue Properties Co. Ltd. of Toronto, which also owns 50 percent of the P.T.'s Pubs chain in Las Vegas.

Pan Pacific also holds a 5 percent ownership in Eversave.com.

For its part, Eversave will customize its Web page to specific markets, allowing customers to access e-coupons and learn about special offers at local retailers.

Computer users will also be able to comparison shop through the use of Eversave's Product and Price Finder System; shoppers will be able to send a single e-mail to multiple retailers, comparing prices and goods.

The partnership of bricks and mortar retailers and computer users -- often referred to as "click and bricks" -- is viewed by industry experts as a wise way to combine the popularity of online shopping with traditional retail.

Last fall, Chicago-based General Growth Properties Inc. launched its Mallibu.com portal website. The site is designed to provide shoppers a gateway to 125 regional mall websites.

General Growth owns the Meadows and Boulevard malls in Las Vegas.

In addition to providing shoppers with retail information, Mallibu.com's customized tools allow malls to data mine information to better target their marketing efforts.

In December, America Online and Wal-Mart Stores Inc. announced the launch of a new Internet service provider, as well as several joint marketing initiatives. That same month, Yahoo! and K-Mart Corp. announced the launch of a free Internet provider and online store called Bluelight.com.

Those type of partnerships are designed to offer a win-win scenario for both participants. In the case of the Wal-Mart/AOL partnership, America's largest retailer agreed to promote AOL services in its 2,900 stores, as well as in print, radio and television advertising.

In return, AOL promotes Wal-Mart's website in the shopping area of its site.

However, industry experts say Pan Pacific's new partnership is somewhat unique, in that it may provide smaller retailers the opportunity to cash in on Web-based commerce.

"Several major developers and REITs (real estate investment trusts) have their own website," said Bill Dunbar, first vice president specializing in retail at real estate broker CB Richard Ellis. "A good many larger, national retailers also have a significant presence online.

"But this type of project is well-suited to the smaller retail tenants who don't have that capability."

Although Las Vegas won't be the first market to receive Pan Pacific's new online program, the company's CEO is ebullient in his praise of the local retail market.

"We love Las Vegas," said Tanz. "We are always looking to add to our holdings in the market.

"And the city is well-suited to this type of (online) program. Our research shows that, in terms of Internet usage, Las Vegas is in the upper percentage among cities. Along with the Pacific Northwest and California, Las Vegas is a very big market for online use."

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