Business Up Front - October 2004

Business Up Front

Shopping for Facts About Shopping Centers?

The International Council of Shopping Centers (ICSC) recently released the following statistics about America’s retail marketplaces:

The United States now has 46,990 shopping centers, 95 percent of which are open-air centers.

Shopping centers accounted for $1.98 trillion in sales in 2003, 76 percent of all non-automotive retail sales.

Each month in 2003, 203 million adults visited shopping centers.

Shopping center-related employment totaled over 17.6 million jobs in 2003.

Approximately 230 factory outlet centers currently exist in the U.S..

Enclosed malls number 1,130.

Consumers spend an average of 76.4 minutes per mall visit and go to 1.3 stores, spending an average of $68.20 per visit.

Real estate investment trusts (REITs) currently own or have an interest in an estimated 538 malls, or almost half of all U.S. malls.

Simon Property Group, a REIT based in Indianapolis, owns the most shopping center space, with 150 million square feet of space in 242 properties.

Private Companies Changing Accounting Practices

Reform in the accounting profession has compelled non-public companies to take a closer look at their financial and accounting practices, and many are implementing changes voluntarily. In a recent survey of privately held businesses, 48 percent of chief financial officers (CFOs) said they have made adjustments to their firms’ accounting processes since the introduction of regulations such as the Sarbanes-Oxley Act, which was passed in the wake of the Enron scandal to protect investors from the possibility of fraudulent accounting activities by corporations. The survey was developed by Robert Half Management Resources, a company that provides senior-level accounting and finance professionals on a project and interim basis.

CFOs were asked, "In which of the following areas, if any, has your company made changes to its current financial accounting and reporting processes in light of regulations such as the Sarbanes-Oxley Act of 2002?"  Among the 48 percent who cited a specific area of change, their responses* were:

(*multiple answers were allowed)

Fifty-two percent of the 1,359 CFOs polled indicated they have not made any changes in the above areas. "Even though private businesses are not legally required to comply with regulations such as Sarbanes-Oxley, many firms are looking at their high-exposure areas with increased scrutiny," said Paul McDonald, executive director of Robert Half Management Resources. "Companies of all sizes are taking measures to prevent costly errors or potential fraud across all financial functions within an organization."

Workplace Trends Around the World

Esselte, a leading office supplies manufacturer, recently surveyed more than 2,600 executives across the globe about the evolving workplace. Here are some of their findings:

Forty-eight percent of American executives admit to having a messy desk, but claim to know where everything is. In contrast, 12 percent say that although their desk appears organized, they have no idea where to find anything.

Three in five executives claim to be working harder than they did at the turn of the millennium – up 10 percent from just five years ago, when nearly half of respondents felt they worked harder than in 1994.

Apparently, these busy employees are also being more productive– in 2004, employees clocked 28 percent fewer hours than they did just five years ago (an average of 44 hours each week, as opposed to 60.5 hours in 1999).

On average, Americans work 46.3 hours each week – more than any other nationality. The French clocked in at 44.4 hours and British executives work 43.6 hours each week. Australian and German executives claim to spend the least time in the office, averaging four fewer hours each week than Americans.

Four out of five American and Australian employees depend on "to do" lists to maximize efficiency and organization, while their European counterparts have a more casual attitude – in fact, 35 percent of Germans report that they never use "to do" lists.

More than half of Americans find it simple to maintain a balanced lifestyle – a feat only 35 percent of German executives have mastered. However, it’s the French who report being most content with balance between home and office responsibilities, with a 70 percent satisfaction rate.

Five years ago, 41 percent of employees reported that on a typical day, they received no e-mails. Today’s busy executives report receiving an average of 45 e-mails each day – not surprising, considering the fact that nearly three-quarters of their workday is spent plugged into some sort of technology.