October 2021
Vol 8 | Issue 551

Q&A with Shlomo Chopp and Josh Poag of ShopFulfill Corp

Founder & CEO

Principal Series:

Poag/retailOS is merging ecommerce into physical retail spaces via tech enabled integration which reduces the traditional costs of eCommerce. Through the use of micro-fulfillment robotics, we are able to compete with traditional fulfillment center and also distribute an immense amount of product from a small space that not only reduces a tenant’s store size and costs while increasing sales, it also allows a retailer to sell retail from its pool of ecommerce stock. Additionally, by integrating retail services and incubation strategies, retailOS transforms retail properties from leasing four walls by driving incremental traffic and ancillary revenue sources which dramatically increase property revenues and can be capitalized utilizing attractive financing only available to real estate. We are undertaking an acquisition program that can simultaneously be considered a rollup and arbitrage play, with an upside rivaling that of the largest corporations in the United States.

Join us for a private Family Office Insights Webinar/Teleconference featuring Shlomo Chopp and Ryan Wolfe of ShopFulfill Corp together with Josh Poag, President & CEO of Poag Shopping Centers (www.poagllc.com). These cross-industry experts are bringing profitability to eCommerce and sustainability to shopping centers by implementing patented systems and methods for integrated retail and ecommerce shopping platforms. retailOS enhances the lifestyle shopping center concept (developed by Poag’s predecessor company in the 1980’s) with micro-fulfillment and turnkey retail shops and democratizes retail to the millions of online ecommerce sellers, increasing property revenues and brand profitability.

Josh Poag has over 30 years’ experience developing operating and leasing some of the country’s best retail properties in partnership with some of the largest funds and institutions. Shlomo Chopp has almost 20 years’ experience in PropTech, real estate acquisitions and operations as well as dealmaking and restructuring of distressed securitized debt (CMBS). Ryan Wolfe has over 30 years’ experience as an executive at Gap Inc., a venture capital advisor and a C-Suite role with Jessica Alba’s Honest Company. Together they have a wealth of hands-on experience in real estate development, finance, distressed acquisitions, retailing, merchandising and supply chain.

Oct 21, 2021 at 3:00pm-4:00pm EST
RSVP & Confirmation Required

Family Office Insights is a voluntary, “opt-in” collaborative peer-to-peer community of single family offices, qualified investors and institutional investors. Join the community here www.familyofficeinsights.com

What is retailOS?

retailOS has three components.
A. the addition of a profitable fulfillment operation to a property to lower costs, increase foot traffic and add flexibility to the tenancy
B. the addition of a tenant incubator for online brands in a manner that not only removes barriers to entry present in retail properties, but also is a growth engine that steadily help a tenant mature into a traditional lease tenant
C. the addition of pooled retail technology, services and infrastructure so that brands and retailers can maximize resources. This is similar to how the “Software as a Service” model removes the need for outsized technology investments.

Is this a business or real estate investment?

This is a business investment with real estate financing and structuring. On day #1, each property investment boasts stable contractual cash flows and would be acquired at a price reflecting that assured cash flow. However, as we add the retailOS components, revenue generating amenities not only increase cash flow, but also make the property attractive to other tenants. For the foreseeable future the structure will be real estate focused, but with time and the protective “moat” created by our Intellectual Property, we expect to be able to leverage creative structures to unlock significant value via spinoffs and the buildout of our technology packages.

What is the relationship between ShopFulfill Corp. (retailOS parent) and Poag and what would the relationship be between ShopFulfill and the property?

Poag and the principals of ShopFulfill make up the sponsorship group acquiring the subject property. ShopFulfill will then irrevocably license the technology and all its resources to the property which will own all the on-site hardware and all net retailOS revenues will flow through directly to the property’s P&L, eventually to be capitalized upon a sale. Poag will leverage its industry expertise to manage and lease the properties as they currently exist and to transition the properties to include the retailOS components.

Shlomo Chopp and Josh Poag of ShopFulfill Corp

Shlomo Chopp. Founder and Chief Executive Officer – ShopFulfill Corp.
Shlomo has close to 20 years experience in all aspects of commercial real estate. In addition to his activities as a principal, in 2010 Shlomo founded Case Property Services, a distressed real estate restructuring advisory focused on CMBS loans (www.caseps.com). Over his career, Shlomo has been involved as either a principal or advisor in over $2 Billion worth of properties across most major asset classes in most major markets nationally. In 2016, Shlomo developed and subsequently filed the first of two patents pending relating to retailOS –with the first being granted in February 2021. He resides with his family in the Hudson Valley region of New York. Contact Shlomo: schopp@caseinv.com