The Future of Retail Over The Next Five Years, with Tom McGee, President and CEO of ICSC

I had the pleasure of interviewing Tom McGee, President and CEO of the International Council of Shopping Centers (ICSC), which serves the retail real estate industry. As CEO, Tom is focused on ensuring the retail real estate industry is recognized for the central role it plays in economic development and opportunity. Prior to joining ICSC in 2015, Tom garnered 26 years of experience at Deloitte, where he served as Vice Chairman. He has become a resource for national media outlets such as CNBC and Bloomberg on trends in retail real estate and general business.

Thank you so much for joining us! Can you tell us a story about what brought you to this specific career path?

I was born and raised in Southern California and attended college at Loyola Marymount University. Upon graduation in 1989, I started my career with Deloitte, at which I spent 26 wonderful years. I was very fortunate to serve in a variety of roles, ultimately including Deputy CEO and Vice Chairman. I owe much of my professional success to the training and development I received there. Unexpectedly, I received a call about the ICSC CEO opportunity and while initially resistant, as I was happy at Deloitte, I decided to speak to the search committee. In discussions, I became excited as I saw a dynamic industry changing to meet evolving customer needs and the opportunity to lead ICSC to better position itself to serve the industry and its members.

Can you share the most interesting story that happened to you since you started your career?

I was fortunate to have mentors at the earliest stages of my career who took an interest in helping me develop as a professional. They also helped me understand the importance of caring about the people you lead. I have countless examples, but one that stands out happened very early in my career. I was working late hours on a client project as part of a large team. The partner who led the client relationship knew I had just recently gotten married and came up to me and thanked me for my hard work. As a thank you, he personally gave me $200 to take my wife out for a very nice dinner. I was floored. He simply did it as a sign of appreciation and I will never forget it. I learned the impact even the most senior leader can have on a junior member of a team. It showed my work mattered and that I was respected. I always try to ensure I spend time with everyone regardless of level and role, understand their work and let them know how much it matters.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?

It is tough to limit it to just one mistake as I have had so many. However, I was most embarrassed when I got a traffic ticket driving my supervisor and teammates to lunch one day.

What do you think makes your company stand out? Can you share a story?

ICSC serves the global retail real estate industry by providing its 70,000+ member network in over 100 countries with invaluable resources, connections and industry insights, while actively working together to shape public policy. I fundamentally believe that retail real estate is central to economic development and opportunity and plays an integral role in the economic, social and civic vibrancy of communities across the globe.

Which tips would you recommend to your colleagues in your industry to help them to thrive and not “burn out”?

I always try to remember in both my professional and personal life, there will be ups and downs. However, I try to keep perspective by celebrating big or small victories and successes and to not “sweat the small stuff”. I also try to remember that no matter how important my role or job, it does not define me as a person. My legacy as a husband, father, family member and friend is a lot more important.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?

My parents were Irish immigrants who instilled in me a belief that if you work hard and do the right thing, life is full of possibilities. My dad was a bus driver and my mom worked in the dry cleaners down the street from our house; they put their 5 kids first in every decision and were my first mentors. I met my wife when I was 16 years old and she has been the central figure in my life since then. She is the kindest and warmest person I have ever known and has made many sacrifices for me so I could pursue my aspirations. She always believes in me, even when I have doubts in myself. My daughters inspire me to work hard so they can pursue their dreams, just as my parents worked hard for me.

Are you working on any exciting projects now?

While ICSC provides many services for our members, networking has historically been seen by our members as the most important. To support networking, ICSC has a large portfolio of programs and events attended by more than 150,000 people around the world. We are investing in new innovative event management technology and processes as well as event content to enhance the attendee experience for our members and future members. I am excited about these new investments which will position ICSC as a leader in the event management industry.

How have you used your success to bring goodness to the world?

I think there is always more that can be done. However, one of the causes for which I am very passionate is addressing the challenges faced by homeless and trafficked youth. Sadly, way too many kids have nowhere to call home and many are exploited. I am privileged to be the chair of Covenant House International, the largest privately funded agency in the Americas providing shelter, food, immediate crisis care, and an array of other services to homeless and runaway youth. I am inspired by the youth served by Covenant House, who despite the challenges they have faced in life, never give up on their dreams.

Can you share 5 examples of how retail companies will be adjusting over the next five years to the new ways that consumers like to shop?

Mobile Technology — So much can now be done from the palm of your hand. A person can compare prices, make a purchase or even find a parking spot all through apps on their mobile device. This will only become more profound in the coming years.

Omnichannel — We are reaching a point where we will no longer discuss online versus in-store purchases, all purchases. Customers expect a seamless and consistent experience in all retail channels. The most successful retailers will deliver on that expectation.

Customer Service — Retail is fiercely competitive and great service is expected by consumers. They want a tailored, personalized experience and retailers must prepare and respond if they want to compete and win.

Baby Boomers — This demographic group was formerly the largest in history and drove the consumer economy for decades. They are now transitioning out of their prime consumption years and finding themselves to be empty nesters and entering their retirement years. They are looking to downsize and to spend on more experience rather than on products.

Millennials — Millennials have eclipsed Baby Boomers as the nation’s largest demographic group. This group was heavily impacted by the Great Recession which, among other reasons, has lengthened their timeline for key life events such as getting married, buying a home and/or having a child. As a result, they also currently spend a meaningful percentage of their disposable income on experience. They are also very price conscious, well-informed and like authenticity and uniqueness. The oldest Millennials are now just beginning to enter their prime consumption years and will drive the consumer economy for decades to come, requiring retailers to keep pace with their changing needs.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I would focus on education and mentorship of youth. Every child, no matter their circumstances, should have the opportunity for great education and for role models that believe in them and their abilities.

How can our readers follow you on social media?

My Twitter handle is @TomMcGeeCEO and I can also be found on LinkedIn.

This was very inspiring. Thank you so much for joining us!