Shopping Mall Expert - December 2015_February 2016

L I F E S T Y L E

A N D

S H O P P I N G

DECEMBER 2/2015 (2) | www.shoppingmallexpert.com | ISSN 2450-1433

Ken Kraus, Senior Manager, Property Management, Los Cerritos Center

Look at the trends and respond What will

2016 bring?

5 TRUTHS

to building stronger relationships with today’s data-savvy consumers The situation in Ukraine and the expansion of international retail chains in Central and Eastern Europe

C E N T E R S

14.99 euro

B U S I N E S S ,

THE MOST IMPORTANT RETAIL

1 1

THE INTERNET OF RETAIL 9-10 February Gerrards Cross, UK www.theinternetofbusiness.co.uk/retail

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CANADEAN EXECUTING SHOPPER INSIGHTS 10-11 February London, UK www.arena-international.com/execshopper RETAIL BUSINESS TECHNOLOGY EXPO 9-10 March London, UK www.retailbusinesstechnologyexpo.com RETAIL DESIGN EXPO 9-10 March London, UK www.retaildesignexpo.com ICSC EUROPEAN OUTLET CONFERENCE 22 March London, UK www.icsc.org/2016EOS ICSC SPREE EUROPE 22 March London, UK spreeshow.com ICSC RETAIL CONNECTIONS 23 March London, UK www.icsc.org/2016LRC

2

ICSC EUROPEAN MARKETING CONFERENCE 9-10 June Berlin, Germany www.icsc.org/europe/committees/ icsc-european-marketing-conferenceprogramme-committee

Designed by Freepik

3

RETAIL SUMMIT IN PRAGUE 1-3 February Prague, Czech Republic www.retail21.cz/en

4

MOBILE WORLD CONGRESS 22-25 February Barcelona, Spain www.mobileworldcongress.com

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FRANCHISE EXPO PARIS 20-23 March Paris, France www.franchiseparis.com

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ICSC EUROPEAN CONFERENCE 18-19 April Milan, Italy icsc.org/2016EU

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GLOBALSHOP 23-25 March Las Vegas, USA www.globalshop.org SHOPTALK 16-18 May Las Vegas, USA www.shoptalk.com

2

RETAIL TECHNOLOGY SHOW USA 30-31 March Atlanta, USA www.terrapinn.com/conference/retailtechnology-show-usa/index.stm

EVENTS IN THE I HALF OF 2016

1 2 4

5

3 6

4 1 3

2

2

1

SME - we are where retail thrives 1

RETAIL WORLD AFRICA 1-2 March Johannesburg, South Africa www.terrapinn.com/exhibition/retail-worldafrica/index.stm

2

EAST AFRICA RETAIL EXPANSION SUMMIT 7-8 April Nairobi, Kenya retail.mykar-events.com

1

ASIA RETAIL CONGRESS 19-20 February Mumbai, India www.asiaretailcongress.com

2

6TH ANNUAL SHOPPING MALLS SUMMIT 6-7 April Singapore www.trueventus.com/event.php?intid=315 RETAIL IN MALL 6-7 April Singapore www.trueventus.com/event.php?intid=309

3

WORLD BRAND CONGRESS 11 April Kuala Lumpur, Malaysia www.worldbrandcongress.com

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WORLD RETAIL CONGRESS 12-14 April Dubai, UAE www.worldretailcongress.com RETAIL SHOW MIDDLE EAST 31 May – 1 June Dubai, UAE www.terrapinn.com/exhibition/retailshow-middle-east/index.stm

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CONTENTS 36

COVER

Look at the trends and respond

Look at the trends and respond

Interview with Ken Kraus, Senior Manager, Property Management, Los Cerritos Center

36 FEUILLETON

How to create an integrated shopping experience in retail

16 ANALYSIS

The financial impacts & hidden costs of weather volatility

32

50

Q&A

The situation in Ukraine and the expansion of international retail chains in Central and Eastern Europe

Learning by doing

Interview with Sami Vainiom채ki, CEO of East Finland Real Estate Ltd

26 Doing something different every day

Interview with Ana Gutierrez, designer and owner of AG by Ana Gutierrez

46

WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

Predicting tomorrow

EXPERT

What will 2016 bring?

20 5 truths to building stronger relationships with today’s data-savvy consumers

22

Global problems and turbulences will surely affect the retail industry. The immigrant influx in Europe, the rise of the Islamic State, recent terrorist attacks in Paris or the situation in Ukraine, force the retailers to think about the global development strategy and security issues at their facilities. Recently, H&M, the Swedish multinational, opened its first store in South Africa. Although the African continent offers great opportunities for retail chains, companies still face certain risks and challenges in this region. More or less twenty brands have withdrawn from the Ukrainian market, but over the last three years no less than 60 global brands decided to enter the market. You can read our summary of the current situation on the Ukrainian market written by Andrey Zhuk, Vice-President of the Ukrainian Retail Association.

There is no denying that meeting the expectations of customers and keeping up with the competition will be two of the main challenges to be faced by our industry. The development of new technologies, e-commerce or growing demand for high quality entertainment, will all raise the bar for shopping centres and retail chains. Together with the world-class experts, we try to predict the future and forecast the 2016 trends. We invited the representatives of Retail Council of Canada, the Magdus organisation and the international research company Mintel, among others, to join us in the project.

Nina Oswald, the Managing Director of Interbrand Germany, writes about the unique shopping experience of the future. Deborah Weinswig from Fung Business Intelligence Center tells us about the interesting silver generation, its potential, and needs. Today, over 75% of America’s household net wealth of 81.5 trillion USD in total, is in the hands of this age group.

I hope you will enjoy your reading.

I wish you every success in your New Year's endeavours

Gray is where the gold is

Agnieszka Nejman Editor in Chief

42 Lease in selected Central European countries

54 LIFE&STYLE

Chiang Mai Night Bazaar – amazing attractions after dark

58 Gadgets

PUBLISHER: CentraNet s.c., Dominik Rybarczyk, Paweł Tracichleb ul. Wronczyńska 10, 60-102 Poznań, PL 7792294126 centranet@centranet.pl, www.centranet.pl

EDITORIAL OFFICE: Shopping Mall Expert ul. 28 Czerwca 1956 r. 314 c, 61-469 Poznań, Poland tel. + 48 (61) 282-17-24, contact@shoppingmallexpert.com www.shoppingmallexpert.com EDITOR IN CHIEF: Agnieszka Nejman tel. + 48 (61) 415-51-24, contact@shoppingmallexpert.com

EDITORIAL BOARD Marta Mrowińska, Nina Oswald, Deborah Weinswig, AND COLLABORATORS: Karolina Stankowska, Agata Demuth, Jan Bagatela, David Johnston, David Frieberg, Andrii Zhuk

DTP AND PHOTO EDITION: Piotr Przepiórkowski

PRINT: Print Studio in Kobyłka

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The Editorial Board of the Shopping Mall Expert has a right to select the received material as well as to proofread and shorten the received texts. Unsolicited material will not be returned.

All material published in the Shopping Mall Expert is protected by copyright. The Editorial Board is not liable for the content of advertisements and press releases. Non-contractual dissemination of publications is not allowed.

Cover photo: Ken Kraus, courtesy of www.erinmanning.com

SHOPPING MALL EXPERT |

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| DECEMBER 2015

Photo: facebook.com/alhazmqa

NEWS

MCARTHURGLEN PROVENCE UNDER DEVELOPMENT

SINGAPORE'S FIRST SHOPPING MALL WITH ECOMMERCE LOGISTICS SERVICES SingPost announced the development of Singapore's first shopping mall that offers a complete suite of eCommerce logistics solutions. This development is aimed at creating opportunities for businesses in the changing retail landscape and catering to the evolving needs of consumers. The new retail mall at Singapore Post Center will offer greater convenience, choices and experiences to consumers by providing online e-merchants and offline brick-and-mortar shops under one roof. Online shopping through e-merchants will include in-shop online ordering and flexibility in delivery and pickup timings. The new retail mall is scheduled to be completed around mid-2017. The construction cost is about $150 m.

When the new retail mall at SPC comes on-stream, it is expected to revolutionise retail concepts for consumers and retailers alike.

Photo: mcarthurglengroup.com

The Shanghai Disney Resort will be launched in spring 2016. It will be the first Disneyland in China, filled with many unique, innovative attractions. The facility will be divided into six thematic parts and feature two themed hotels, numerous shops, restaurants, an entertainment district and Wishing Star Park with beautiful gardens and a lake. The thematic parks will include Adventure Isle, Tomorrowland, Gardens of Imagination and Mickey Avenue, and many other. Many of the attractions are completely new and will be available only in the Shanghai Disney Resort. The new facility will stand out with its many references to the Chinese culture and traditions.

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SHANGHAI DISNEY RESORT TO OPEN IN SPRING 2016

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Photo: singpost.com

In the first quarter of 2016, another unique shopping mall will be commissioned in Qatar. With its original, Italian-style architecture, AlHazm will surely become a gem in the region. What makes its architecture so unique are carved arches, gigantic pillars, sculptures, gazebos and fountains. The visitors will also be mesmerised by the 40-metre wide dome, one of the biggest in the country.

200-years-old olive trees will be imported from Sicily. The mall is dedicated to customers who have more to spend. A special VIP area will be created for prominent guests, including a dedicated floor with luxury shops. Combination of classic architecture and innovative offer will make AlHazm much more than just a shopping destination.

ne

ANOTHER UNIQUE PROJECT IN QATAR

McArthurGlen has started work on its third centre in France. One of the advantages of this outlet will be its great location – the offer is dedicated not only to local residents but also to tourists and visitors from all around the world who stay in Provence and on the French Riviera. With the help from local architects, Marseille Architecture Partners, the facility will retain the characteristic Provence style. By the outlet, there will be a park with tree-lined alleys planted with 100-years old sycamore trees. Patrick Blanc, a botanist and an inventor of vertical gardens, will be responsible for the green part of the investment. The cost of the project is estimated at EUR 120 m. The commercial offer of 120 shops will be accompanied with restaurants and coffee shops.

The opening is planned for 2017. It will be the only facility of the kind in the whole south of France.

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ANOTHER OUTLET COLLECTION TO OPEN IN CANADA After the success of Outlet Collection at Niagara, opened in May 2014, Ivanhoé Cambridge and his partners – Harvard Development and Forster Projects, decided to launch another project, the Outlet Collection Winnipeg in Manitoba. The cost of the investment is estimated at over $ 200 m. The facility will open in May 2016. It will be the first real outlet centre in the capital city of the Manitoba province with over 100 shops of popular brands.

The project's unique architecture – natural, warm finishings, innovative lighting and bold design, will provide the visitors with a new Photo: ivanhoecambridge.com level of shopping experience.

WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

EUROPEAN

CONFERENCE AUTHENTICITY:

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ICSC Global Partners

ICSC European Partners

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EMAIL info.europe@icsc.org #EuroConf

NEWS

Photo: facebook.com/Macys

FOOD TRUCKS FOR DOGS Everyone must have heard about food trucks already, at least about the regular ones, for people. But now, Walmart Canada has come up with an idea of food trucks for... dogs. During Woofstock in Toronto, one of the largest outdoor festivals for dogs in North America, Walmart promoted its new pet food brand, Pure Balance, with a pooch-friendly food truck. The Pure Balance Pooch Truck, created in collaboration with J. Walter Thompson Canada, is a third of the size of a regular food truck with a serving window accessible to dogs. Pet food trucks were located near traditional food trucks, so that both dogs and their owners could taste various delicacies.

PINK OCTOBER AT MACY'S As usual, October was the month of fight against breast cancer and retail chains were more than eager to take part in the initiative. Among them was Macy's. The company wanted to draw attention to the problem, heighten awareness among women and raise funds for the cause.

In their fight against cancer, Macy's joined forces with The Polo Ralph Lauren Foundation.

What is interesting, the Polo Ralph Lauren shops were transformed into special Pink Pony destinations in 48 Macy's locations across the US and online. At these dedicated points customers were able to shop for polo shirts, vests and limitededition fragrances. Macy's Photo: aeostyle.tumblr.com emphasises that breast cancer is a disease that affects not only women, but also their friends and families. According to the American Cancer Society, 40,000 women in the US die of breast cancer every year. It is the second leading cause of death in women, after lung cancer.

Photo: twitter.com/JayMDunphy

COFFEE JEANS FROM AMERICAN EAGLE OUTFITTERS The American Eagle brand decided to celebrate the National Coffee Day in quite an unusual way. The company has launched a Denim X CafĂŠ line of jeans infused with real coffee. The jeans were produced utilizing 2.25 g spent coffee grounds. What is interesting, these denim products have additional properties, e.g. higher skin protection against UV radiation. Celebrities have already endorsed the new initiative, with Hillary Duff and Vanessa Hudgens published selfies in Denim X CafĂŠ jeans on social media platforms. Lovers of the black beverage may be a little bit disappointed, though, because the jeans don't smell like coffee.

NEW QUALITY OF RECYCLING AT ADIDAS

Photo: adidas-group.com

Photo: topshop.com

The adidas brand has revealed plans for zero-waste, 100% recyclable sporting goods. As part of the Sport Infinity project, the company will develop solutions that will enable endless recycling of the products. Thanks to the use of inexhaustible 3-D super-material, you will never have to throw your adidas boots away. Additionally, the process will give consumers more scope for personalisation than ever before. Leo Messi is impressed with the programme. He said that for him, this is the future of football.

The research programme is conducted by the adidas brand and funded by the European Commission.

WWW.SHOPPINGMALLEXPERT.COM |

A PINTEREST COLOUR PALETTE FROM TOPSHOP The Topshop fashion brand has teamed up with Pinterest and launched a Pinterest colour palette tool, as well as a special app that will help shoppers pick items based on the colours saved with their Pins. The app offers over 16 m available colours. Additionally, the user can pick colours from the colour palettes of the most important fashion events, such as fashion weeks in New York, London, Milan, or Paris. How does it work? You have to scan the Pins using the dedicated app and the program will create a unique and customised colour palette and help you choose the products that will fit your colour preferences the best. In this way, we can create our unique colour DNA. You can use the programme in the Topshop online store and in the Topshop flagship stores in London and New York.

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| DECEMBER 2015

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NEWS

Customers of the Meadowhall Shopping Centre in Sheffield had a unique opportunity to participate in a competition that gave them a chance to beat some of the Guinness World Records. The visitors could participate in three competitions: building the highest LEGO tower using only one hand, putting on the highest number of t-shirts in 30 seconds, and clapping your hands on the front and back interchangeably during 30 seconds. It was a great occasion to spend time with family and have fun. - The visitors of Meadowhall were able to not only celebrate the anniversary of the shopping centre but also become a legend by beating their own world record - says Paul O'Neill, vice-president of the Guinness World Records.

BRA EXHIBITION IN BRUNEL CENTRE Customers of the Brunel Centre in Swindon had a chance to visit a unique exhibition.

The bra exhibition featured bras from the closets of famous artists and celebrities. The event was organized to raise funds for the fight against breast cancer and preventive health care. Among the exhibits, one could find lingerie belonging to Honor Blackman, Barbara Windsor, Nicole Scherzinger or Twiggy.

By far the biggest attraction was definitely the supersized crochet bra that was 620 cm wide and 60 cm high.

CATCH MONEY AT BAOQING PREMIER How to win £2,000 in just 20 seconds? It's easy. All you have to do is come to Baoqing Premier, a Chinese shopping centre in Nanjing in Eastern China and take part in the new game organized for the customers. In order to win the money you have to enter a capsule with banknotes in it. After the capsule has been closed and the clock turned on, the banknotes start to fly in the air. Whatever you catch within just 20 seconds is yours.

YAS MALL TO HOST THE FIRST FASHION WEEK IN ABU DHABI It was the first event of that kind in Abu Dhabi. For almost a week, customers of the Yas Mall shopping centre had the opportunity to see the latest fashion trends from 15 fashion designers from London, Paris and New York. It was the début of the Yas Mall shopping centre as the organizer of a fashion week. - Ever since we opened the Yas Mall shopping centre, we have been working relentlessly to provide our customers with unique attractions each time they visit our mall. We not only want to expand the tenant mix but also try to organize special events that will engage our visitors. Fashion Week is not only the first event of that kind in our shopping centre but also sort of a gift we give our customers to celebrate the first anniversary of the mall - says Talal Al Dhiyebi, chief development officer of Aldar Properties.

Photo: facebook.com/yasmallad

DOG CRÈCHE AT OCEAN TERMINAL You want to go shopping or have lunch with a friend and don't know what to do with your dog? That's not a problem anymore.

The first dog crèche has been opened in Scotland. With colourful cabs full of toys, with a place to sleep, slides and a climbing frame, the crèche enjoys constant interest from the dog owners. The owner of the shopping centre says that the new service is safe for both the pets and other customers of the facility. - I came up with the idea about a year ago, when I saw that many dogs are left tied up outside. If you stay at the shopping centre for an hour or two, it's enough for the dog to get really tired or stolen - says Susan Nilu, the owner of the Ocean Terminal shopping centre. The service is not free. First hour costs £7.50 and each additional hour £5.

Photo: oceanterminal.com

WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

Photo: facebook.com/Meadowhallshoppingcentre

Photo: facebook.com/TheBrunelSwindon

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programme subject to change

Hayley Tatum, Executive Director / Senior Vice President – People and Stores, ASDA Robin Phillips, Omnichannel and Development Director, Boots Aaron Chatterley, Founder and Deputy Chairman, Feelunique.com Jamie Peach, Head of SEO, House of Fraser Robbie Feather, Director of Online, Sainsbury’s Supermarkets James Leech, Service Lead, Customer Services, Argos Sach Kukadia, Founding Partner and Buying Director, Secretsales.com Deirdre Devaney, Director of Fashion, Beauty and Accessories, Arnotts Arnaud Crouzet, Head of Group Global Payments Development, Auchan

9 – 10th March 2016 Olympia, London www.rbtexpo.com | +44 (0) 208 874 2728

FEUILLETON

Photo: K11 Concepts Limited

HOW TO CREATE AN INTEGRATED SHOPPING EXPERIENCE IN RETAIL? WWW.SHOPPINGMALLEXPERT.COM |

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FEUILLETON

The use of digital platforms and social networks has not only changed the way we live – it has also fundamentally changed the relationship between brands and consumers. Specifically, it has enriched the path to purchase and reset our expectations in terms of how we'd like to engage with brands.

What does this mean for the retail experiences in the future? Does the role of retail brands have to change?

The Interactive table and Denim Tailor in Selfridges Denim Studio offers shoppers the chance to style themselves digitally, email themselves the current trends and finds, as well as a bespoke tailoring service; delivering custom made denim to the customer any way they want it in a two hour turn around. Photos: HMKM

B

y now, most of us are used to living in a world in which shopping is a seamless, convenient 24/7 activity. We can purchase anything we want online, anytime, day or night.

With their fingertips, customers are more empowered and discerning than ever before. What, if anything, can retailers do to keep us walking through their doors when we have exactly the same amount of purchasing power while sitting comfortably on the couch?

Shopping no longer requires a predetermined sequence of events in a certain location, in which a person needs to close the deal. Online and mobile shopping makes it possible to gather information, choose products, pay for merchandise and organize delivery beyond time and space, fundamentally changing the economics of retail space. Nevertheless, the physical experience and tangibility of the merchandise and hence its presentation may still be highly sought after and consumers will consciously go out of their ways for it. Therefore, the physical retail space will need to take on a new role in the customer journey: an integrated experience that offers a unique and memorable moment within the shopper’s journey. It will be important to connect and stay connected with customers before and beyond the store walk through.

A touch point can have a stronger impact when people interact with it in a different context. Strategic partnerships extend the physical retail experience into mobile environments. For retailers, services such as “shopkick” make it possible to embed content in a browsing routine and place targeted incentives to draw customers to retail locations, resulting in planned purchase behaviour in a highly competitive retail environment. Retail brands need to understand that a holistic service experience and specific mobile-based service offers are key differentiators in their overall brand experience, and very effective marketing and selling tools to drive revenues.

Many big multi-brand stores and shopping malls arrange personalized brand concepts next to each other like a chain of pearls. Retail managers rarely take an active role in the selection and the staging of the elements that make up the

overall experience. The stores compete for attention while the greater retail platform plays a less visible role. The efforts focus on maximizing the profitability of each retail brand and space, not on creating an overarching retail experience. Increasing numbers of shopping malls now realize the potential of strengthening the platform to become a more desirable space with carefully selected individual experiences. This new role challenges the authority of world-class brands and demands a more customized and localized approach to the retail environment.

Shopping malls need to shift from store managers to venue managers who create a stage for events and experiences. Today consumers no longer depend on stores – they can do just about all of their shopping at the touch of a button. Retailers need to work even harder to create a unique multisensory experience for their customers. They have to offer something exclusively physical — something that is unavailable online. By creating more memorable in-store experiences, they are communicating a strong

SHOPPING MALL EXPERT |

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| DECEMBER 2015

FEUILLETON

point of view, captivating environments, and encouraging audiences that are hungry for more.

Many retailers have successfully moved towards a conscious design and evolution of their merchandise categories. Products and brands are selected based on their fit within a greater theme. Shoppers return to discover new stories brought to life by dynamic arrangements of products and artefacts. Concept stores like "This is Story" in New York reinvent themselves on a regular basis. Digital and interactive interfaces augment the space and become storytelling devices. In becoming a new "third place" for people to relax, shop, work and be entertained, stores need to meet customer expectations and tell overarching stories. People want to purchase with purpose: Confronted with mind-boggling volumes of information, consumers now expect brands to act as filters and presenters. Faced with a surplus of choices, consumers tend to engage only with the content and offers that are personally relevant to them. Today, many people are better acquainted with their screens than with their neighbours – but the desire for genuine connections and authentic, meaningful experiences remains.

Brands that understand these needs – the need for the complex to be simplified, the random to be made relevant, and the impersonal to be made personal – have opportunities to get closer to consumers, play a key role in their lives, and connect in new ways.

As tech innovations continue to dominate the global marketplace, consumers are longing for a personal touch when it comes to their retail and brand experiences. Our interpersonal connections greatly influence our perceptions of authenticity. Direct contact with experts such as craftsmen, producers, and artisans can convince us of the quality of a product or service. Employees who emphasize service and "live the brand" enhance the customer experience and build trust.

While the connection between authenticity and performance may be challenging to quantify, the experience – along with all of the human

moments and personal touches that bring it to life – definitely contributes to a brand’s value. To stay ahead of the curve, retailers will need to provide high levels of personalized service and experiences.

They need to not only fulfil but anticipate the needs and preferences of their customers. Data is the key – collecting it, gaining insight from it and applying these findings to the shopping experience. In this sense, adopting digitally integrated mechanisms offers a huge potential to retailers.

To sum up, it's all about relating. It is not the branded product you buy and it is not where you buy it – it is ultimately the purchasing experience that stays in your memories. Customers demand a unique shopping experience that tells an overarching story, giving purpose to their purchase and connecting with them on a personal level. Today and in years to come, retailers will need to focus specifically on relating to people’s individual needs, to strategic partners and brands to create and stage an overall shopping experience with a purpose. 

Photo: K11 Concepts Limited

Nina OSWALD Managing Director of Interbrand Germany, member of the Management Board Central & Eastern Europe Nina has 15 years experience in the strategic development, management and implementation of brands on a global scale.

She has extensive branding knowledge, having worked with a diverse range of clients across a number of industries including brands like: BASF, Bayer, Deutsche Telekom, DER Touristik, Gebr.

Heinemann and Munich Airport. She is based in Germany, having worked previously in London and across Central and Eastern Europe. In her current role Nina is leading the Business for Interbrand in Germany.

Nina developed the employer branding practice for Interbrand and put a special focus on change management within organizations and employee engagement programs. She is helping clients to define and successfully implement a clear employer value proposition, she writes articles and teaches the practice.

K11 Art Mall - A truly unique celebration of art and culture under one mall.

The space hosts an urban farm, complete with animals and vegetable patches to educate its consumers as well as offer them a green urban oasis.

This space takes the idea of shopping out of all limits

WWW.SHOPPINGMALLEXPERT.COM |

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Nina is particularly fascinated by brands driving change within organizations and companies becoming brand driven – to ultimately increase and strategically manage their brand value as a financial asset.

| DECEMBER 2015

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Director, International Strategy & Operations Gilt

WHAT WILL 2016 BRING? Bob PHIBBS

The Retail Doctor, USA Lower foot traffic will cause many retailers to try lots of initiatives, from BOPIS to free shipping to extended hours and new apps. The smart ones will realize investing in their under-trained staff is their number one way to increase conversions and average ticket. The challenge will be for the bean counters who are stuck on reducing staff and expenses which render the brick and mortar store a little more than a warehouse; those who view employee training as an expense rather than their strategic advantage.

Customers are out shopping again, which is great news. That said, the younger generations don’t have much they have to have – other than the newest phone. It doesn’t look like that will change much so the attention must fall on the aging Baby Boomers who still control 75% of discretionary spending. Treat them right and they’ll open their wallets. Treat them like a point-and-click order and they won’t be back.

Richard COPE

Consumer Trends Consultant, Mintel, UK A host of virtual reality (VR) and augmented reality (AR) headset launches will give retailers the opportunity to offer in-store experiences, such as ‘test-driving’ products and locations.

The British retailers John Lewis and Marks & Spencer have already begun using AR and VR respectively to help customers envision their products in their homes.

Beacons – short-range location devices which interact with smartphones and tablets – will be increasingly employed to welcome people to stores, inform them of offers, remind them of items they need to buy and deliver more responsive and personalised face-to-face customer service.

Stores are able to track customer hotspots, dwell time and measure the effectiveness of promotional campaigns and store layouts.

Photo: Fotolia

Meanwhile, as time becomes a currency, we’ll see demand for the kind of same day or withinthe-hour delivery proffered by Liefery in Germany and Zuper in Austria.

Extending rental agreements to everything from clothes to DIY tools will appeal to space-conscious consumers, whilst ‘monodose’ products will be positioned as single serve options with retailers making a virtue of small batch production as a way to save space, energy and materials.

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Sabrina FARAMARZI

Strategic Insights Analyst, Portland Design, UK For retail to become entertainment hubs without losing the aspect of shopping is the biggest challenge.

To become places where communities gather around shared interests whilst still being able to offer shopping experiences that help customers retain their sense of individuality.

Create playgrounds that engage and entertain consumers of all ages and offer different shopping rituals created around humanistic needs.

16

Building customer loyalty is still an area that needs major development and something that both developers and retailers forget. The greatest opportunity of 2016 will be finding new and unique ways of reinventing loyalty. Take note of how new types of brands are doing this from FMCG, media, entertainment and how online pure players use shopping centres as a platform for creating new ways of engagement.

Michael E. LEBLANC

Senior Vice President, Marketing & Digital Retail, Retail Council of Canada Continuing to understand and develop a compelling consumer experience within the context of a digital first, omni-channel customer is one of the biggest challenges. Understanding a new set of shopping behaviours, such as those rooted in mobile devices, that ultimately results in truly incrementing the sales line versus simply spreading the same turns across multiple channels.

We know that shopping and retail isn’t simply about transactions – it’s cultural, social and inspirational. Crafting and executing the strategy that evolves the customer experience at retail in a way that engages a digital first customer looking for an immersive and entertaining brand experience in the traditional physical shopping centre environment will keep the retail experience fresh and exciting for customers around the world for decades to follow.

SHOPPING MALL EXPERT |

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James E. DION

Founder and President Dionco Inc., USA The biggest challenge in the retail industry in 2016 will be integrating web, mobile and brick and mortar operations and marketing. Customers are starting their purchase journey on PCs, mobile devices and yes, even in-store and completing that journey on-line via computer or mobile or tablet or even through an in-store purchase. Being able to have one view of that customer no matter how they visit my company will be critical.

Can I not only customize their mobile experience based on web searches and browsing, but can I also do this when they come to the store? To consumers, shopping is shopping, they really don’t care what device they are using, they want to be helped, recognised, rewarded and pampered. Retailers who figure that out will be far ahead of the competition.

New opportunities are related to the challenges. The marketer who can reach the consumer when they are on the go (mobile) and keep their interest when they are shopping (mall store look and feel as well as sales associate knowledge and overall experience in the store) will own the customer. It does not take a great deal of money but both retailers and developers have to invest in beacon technology to geo fence the mall and reward customers for visiting and spending money in the stores.

Developers will really have to up the game to make the mall experience “over the top” with entertainment, fun, safety and a real reason for consumers to come instead of just firing up their browsers and shopping at home!

Dr. Caroline LAMY

CEO and Founder Magdus, France In a competitive International retail market, outlet centres must stay attractive and offer to customers exciting international brands with great bargains, as well as a marvellous shopping experience.

In 2016, the outlet industry will benefit from new schemes all over the world and a record number of extensions for existing centres.

In countries like France, new laws are now allowing retail and outlet players to get Sundays openings agreements. This could be a chance to increase the attractivity of outlet schemes, in particular those located in tourist areas.

Photo: Fotolia

5 TRUTHS TO BUILDING STRONGER RELATIONSHIPS WITH TODAY’S DATA-SAVVY CONSUMERS

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Around the globe consumers understand that personal data is a currency they can share with brands in exchange for offers, recommendations, content and experiences that are tailored to them.

Recent research from Aimia, a datadriven marketing and loyalty analytics company, has found that not only are consumers very much aware of why their data is valuable – they are also quite savvy about how to use their data to shape the relationships that they want to have with brands.

But how can brands and marketers make better use of this information to create stronger, more meaningful, lasting relationships with their customers? | DECEMBER 2015

EXPERT

The 2015 Aimia Loyalty Lens research surveyed more than 20,000 consumers across 11 countries to better understand consumers’ preferences on sharing their personal information and how they want to engage with brands. This year’s research has uncovered five truths that are paramount for brands and marketers to understand and act on, in order to build lasting, trusted relationships with their customers in the new data exchange economy.

In markets such as India, Brazil and the United Arab Emirates, people are even more inclined to share their personal information.

For example: Consumers in India are the most comfortable among all markets with sharing email addresses (90%), names (89%), and mailing addresses (68%) Consumers in the UAE (71%), India (68%) and Brazil (59%) are the most comfortable among all markets with sharing mobile phone numbers Consumers in Brazil were most inclined to share web history (40%)

TRUTH #1 Customers know their data is valuable Your customers increasingly understand that their data is very valuable.

And that they can – and should – expect something in return for it.

Overall, 31% of respondents in the 2015 Aimia Loyalty Lens report said that they know their data is “highly valuable” to companies, a modest increase over 2014. While this number might seem low, it’s actually higher than many would expect – and it will only continue to rise. This is a starting point of a very steep curve. More and more shoppers are starting to understand that brands are getting value from their data, and they will increasingly expect more in return for the data they’re willing to share.

But how do retailers benefit from having access to customer data?

Simply put, customer data allows brands and retailers to operate in a customer-centric way.

For example, if you run your grocery store on the basis of sales per SKU alone, you might look at your sales data and decide that a particular brand of olive oil isn’t selling the way you’d like it to, so you decide to discontinue it. If you take a closer look at the customer data, however, you might uncover a segment of high-spending, loyal shoppers who love that particular brand of olive oil. This is a group of foodies who love to cook and come into your store often to buy baskets of high-margin products – so, the last thing you would want to do is discontinue a product that keeps them at your store.

TRUTH #3 People are open to a wider array of platforms in which you can communicate with them In Brazil, India, the UAE and other quickly accelerating loyalty markets, there’s an opportunity to engage customers on a greater number of platforms – particularly with mobile – and tap into an even broader set of data, if you respect shoppers’ boundaries.

Mobile loyalty program memberships in these markets are multiple times greater than in more established loyalty markets: 33% in India, 23% in UAE and 22% in Brazil, versus 5% in Germany, 7% in Australia and 9% in the U.S./UK 68% in India, 42% in UAE and 40% in Brazil, versus 24% in France and Germany, 27% in the UK and 36% in Canada This mentality differs from U.S. shoppers, out of which only 55% said they would be likely to use digital wallets for the purpose of making cashless payments, and a whopping 70% of U.S. consumers said they would either never share their mobile number or would only share it with a trusted few.

Getting permission to access shoppers, and understanding their preferences on how to be reached, especially during the advertisement-heavy holiday period, will make retailers more successful.

Brands can also present more targeted offers once shoppers share their Facebook and Internet search history, along with their browsing path on the brand website or through in-store purchases.

This enables retailers to fine tune their messaging to make offers and experiences as personalized as possible.

TRUTH #2 Customers who are most savvy about their data are also those who are most willing to share

SHOPPING MALL EXPERT |

TRUTH #4 Loyalty is both local and personal

Photo: Fotolia

Savvy customers not only understand that their data is valuable – they are also more likely to share it.

In fact, more than 80% of shoppers are willing to share basic information about themselves (name, email, nationality) and 70% are willing to share additional information, such as their date of birth, hobbies and occupation. 58% of U.S. 18-24-year-olds say they are willing to share information in exchange for relevant offers and discounts, versus 41% of those aged 65+.

What does this mean? When customers see a fair value exchange for their data, they will share more of it with brands, allowing marketers to be even more personalized in their approach.

For example, Aimia’s Nectar coalition program in the UK, has a very large and engaged member base – 19 million members and about 23 transactions per second. These members understand that when they go grocery shopping, they are giving the grocery store some personal information on what’s in their shopping carts, but they also know what they’re going to get back in return: a better offer for something that they actually buy.

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Ultimately, loyalty programs are designed to inspire positive change in consumer behaviour – for example, spend more or purchase across categories in-store – often by providing customers with rewards for this changed behaviour or action. But in order for a loyalty program to be successful, there needs to be a fair value exchange between the brand and the customer.

While there are similarities around the globe in peoples’ willingness to engage in loyalty programs, loyalty is both local and personal. No matter how sophisticated, the marketing program that a brand designs for customers in one market cannot simply be transported to another, nor can a single generation be treated as homogenous.

German consumers are the least open to rewards programs. 31% of consumers in Germany say they do

EXPERT

Information about the research: The 2015 Aimia Loyalty Lens research surveyed more than 20,000 consumers across 11 countries to better understand consumers’ preferences on sharing their personal information and how they want to engage with brands

68+32A

Millennials and Generation Z are happy to share personal information with companies:

Brazil US UAE India

610= 61% 620= 62% 630= 63% 740= 74%

68%

31+69A 46+54A 8+92A 31%

46%

8%

Overall, 31% of respondents in the 2015 Aimia Loyalty Lens report said that they know their data is “highly valuable” to companies – a modest increase over 2014

In 2015, less than half (46%) of the millennial/ Gen Z age group was more concerned about data privacy than a year ago, versus 64% of Boomers

Only 8% of customers globally feel as though they are actually receiving better offers as a result of sharing their personal information

81+19A 71+29A 80%

In markets such as India, Brazil and the United Arab Emirates, people are even more inclined to share their personal information.

70%

90+10 89+11 68+32 71+29 68+32 59+41

Respondents are willing to share: Over 80%: • Name • Email address • Nationality

68% Millennials and Generation Z understand why they have to share personal information to receive better offers

70% or more: • Date of birth • Hobbies and interests • Occupation

email addresses 90%

names 89%

mailing addresses 68%

UAE 71%

India 68%

Brazil 59%

Consumers in India are the most comfortable among all markets with sharing:

Consumers, which are the most comfortable among all markets with sharing mobile phone numbers:

55% U.S. shoppers said that they would be likely to use digital wallets for the purpose of making cashless payments 70% of U.S. consumers said they would either never share their mobile number or would only share it with a trusted few

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Photo: Fotolia

EXPERT

not join loyalty programs in any of the sectors about which they were asked. Meanwhile, France is at the opposite end of the spectrum. It has the lowest number of reward program holdouts, at 10%.

Those born after 1981 (Millennials/Generation Z) have a higher level of comfort around sharing their personal information than those born between the years of 1946 and 1964 (Boomers). In 2015, less than half (46%) of the millennial/Gen Z age group was more concerned about data privacy than a year ago, versus 64% of Boomers.

While Aimia research shows that the attitudes of Millennials and Gen Z are quite different than those of older generations in many ways, brands will also likely fail if they create a one-size-fits-all approach for their customers between the ages of 18 and 34.

And quite frankly, there’s no excuse for brands to take that approach anymore. The data that retailers can get about customers today with their permission can tell so much about what they want and need, that there’s really no excuse for companies not to offer their customers the individualized experience that they expect.

customer data to understand and deliver what their customers want, when and where they want it. They are focused not on what they can do to customers, but on what they can do for customers. It’s less about transactions, and more about interactions – trying to join together the various touch-points they have with consumers to improve the overall personalization of their offering. This is the best strategy to pursue in order to turn festive holiday shoppers into long-term, loyal fans. 

TRUTH #5 You can make business more personal

David JOHNSTON

The difference between customer expectations of truly personalized engagement and what brands are currently delivering is wide. Only 8% of customers globally feel as though they are actually receiving better offers as a result of sharing their personal information.

In the U.S., for example, 33% of those customers who are willing to share 10 or more key pieces of personal data expect to receive better service and benefits from companies with whom they share those details – yet only 16% feel that they actually receive these benefits.

The trend continues in Australia where 37% of very high sharers expect better benefits, yet only 14% feel they receive them.

Italy has the biggest gap – a third (33%) of high sharers expect more, yet only 7% feel that they get it. This gap was consistent across all markets and points to a huge opportunity – or risk – for retailers.

For years, customers considered an offer personalized if a company put their name at the top of an email and knew to send women offers for women’s clothing. Today, the companies that are capturing customer loyalty and building real relationships are those that are using SHOPPING MALL EXPERT |

Group Chief Operating Officer, Aimia Inc. David Johnston is Group Chief Operating Officer of Aimia Inc., a data-driven marketing and loyalty analytics company. He drives the development and performance of Aimia’s global operating model, overseeing the company’s operating regions of Canada, EMEA, US and APAC. David also oversees Aimia’s global business development team. Previously the head of the company’s EMEA region, David drove the expansion of Aimia's loyalty coalition programs of Nectar, Nectar Italia and Air Miles Middle East, as well as the company’s proprietary loyalty and loyalty analytics businesses. David joined Aimia from PepsiCo where he spent 13 years in marketing and general management, with extensive experience in Europe, Latin America and in PepsiCo's global headquarters in Purchase, New York. He holds an Honours Degree in Business from Nottingham Trent University in the United Kingdom.

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Q&A

LEARNING BY DOING It is often said that location is the key to the success of a project.

The Zsar Outlet Village, under development near the RussianFinnish border, will surely attract a lot of visitors. The total catchment area of the facility will be 8.5 mln people within the range of 200 km, including cities like Helsinki or Saint Petersburg.

However, the location may also cause some problems, considering the current political situation in the region

Photo: Zsar Outlet Village

Interview with Sami Vainiom채ki, CEO of East Finland Real Estate Ltd

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Q&A

FINLAND

One of the key strengths of Zsar Outlet Village is the location – right on the border between the European Union and Russia. What is the total catchment of this investment?

driving time from Helsinki to Zsar to roughly 75 minutes, hence providing a totally different and easily accessible shopping destination for 1,5 mln Finns.

Indeed, Zsar’s location in Vaalimaa just 300 m from the biggest EU-Russian border check point makes it unique. There were over 3 mln border crossings in 2014. Currently 85% of these are Russian tourists of which 74% state that their primary reason to come to Finland is shopping.

Finland and North-Eastern Russia have long been a blind spot on factory outlet map of Europe. Finnish and Russian consumers are both brand oriented and price conscious but supply in the premium market has been small and limited.

We think this is the right time for tapping into this demand and give both Finns and Russians a whole new shopping experience.

In addition to Vaalimaa border crossing, there are other two big checkpoints within one hour drive. This totals to circa 10 mln annual border crossings near Zsar. In other words, a huge number of Russian cross-border tourists represent a remarkable potential for the brands at Zsar.

Who is responsible for the architectural concept?

Our architect agency is Arkkitehtikonttori Petri Pussinen Oy, which is one of Finland’s leading commercial architects. It has over 20 years of experience in designing shopping centers as well as leisure properties, such as multiplex cinemas and amusement parks. Zsar’s architecture reminds neoclassical 18th and 19th century St. Petersburg and Helsinki style.

The total catchment is 8,5 mln inhabitants within 200 km radius, including Helsinki, the capital of Finland, and the fourth largest city in Europe, St. Petersburg.

In our feasibility study, which was conducted by FSP Retail Business Consultants, it is estimated that an annual sales density of nearly 5000€/sq m will come from Finnish customers. On top of that, it is estimated that the Russian tourists will bring a notable addition to that. We believe that Zsar is able to attract between 1,5 to 2 mln buying visitors on its first full year of operations.

Zsar is located in a coastal region by the Baltic Sea where Russian tsars used to spend their summer vacations with their families and courtiers in the 19th and early 20th centuries. The last of the tsars, Nicholas II, in fact ruled the whole empire for several months of the year from his resort in the archipelago. The name Zsar – as being deliberately spelled wrong – reflects to this time in history, notable for both Finns and Russians.

If you were to describe Zsar Outlet Village using 5 adjectives, what would they be?

Unique, unprecedented, attractive, family-friendly and surprising.

Our biggest asset is a combination of perfect location on the Russian border halfway between St. Petersburg and Helsinki, compelling premium brand selection, which fills the gap in the relatively scarce premium retail market in the region, and tight management to ensure excellent customer experience and operational efficiency.

Photo: Zsar Outlet Village Photo: Zsar Outlet Village

Could you please explain the origin of the name?

What was the inspiration for this shopping centre?

Millions of affluent Russian tourists come to Finland every year, and all of them eager to do shopping. However, the supply in the market and especially in the South-Eastern border region has been scarce, mainly consisting of groceries, cheap household products and FMCG. At the same time several surveys have indicated that tourists would like to get their hands on premium fashion and goods. Currently only 25% of Russians stay in the region, while majority continue their journey to Helsinki, Lapland or other areas in Finland.

A new motorway from Helsinki to the border is currently under construction and will be fully opened in 2017. This will decrease SHOPPING MALL EXPERT |

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EN

Image: Zsar Outlet Village

Q&A

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I read that Zsar Outlet Village will provide 120 premium brand stores, restaurants, cafés and other services. At what stage is the commercialization process today?

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As you already mentioned Zsar Outlet Village will be a family-friendly destination.

Yes. We are currently evaluating the best children’s play area concept for different ages. Restaurant services will be planned especially for families’ needs.

We are targeting premium level in addition to a selection of luxury brands. Brands will include ladieswear, menswear, childrenswear, sports and outdoor, accessories, jewellery and home products.

Over 75% of space is now reserved by mainly international brand partners and is in detailed negotiations.

The project will also be very innovative. Geothermal heating, which will keep the streets free from snow, sounds interesting.

I would dare to say so (laugh). Indeed, the actual mall will be heated to keep it free from snow and ice. In terms of energy efficiency and facility management systems, we will use best available technologies and solutions, which will benefit our tenants in e.g. lower electricity, heating, cooling and ventilation costs. And of course we look at the green side of things as well.

And what about the entertainment?

Photo: Zsar Outlet Village

Besides a high quality children’s play area and excellent restaurant services, Zsar will also be a year round venue for events, including Finnish and Russian holiday festivities, promotions, children’s events, pop-up days and so on.

We will also invest in versatile online and mobile services in order to facilitate personalised, relevant and useful information for our customers and create dialogue. We are evaluating special services for our customers, such as click and collect, home delivery, storage facilities for shoppers, shuttle bus services etc. This all comes down to achieving excellent customer experience in before, on site and after the trip to Zsar.

At what stage is the realization of this investment?

We only launched the project at MAPIC last year, and our proposition has since been accepted extremely well by brands. Only 10 months after last year’s launch over 70% of the space of Phase I is now reserved for international and domestic brands. We are in negotiations on detailed commercial terms.

Architectural design is now completed, we already have been granted the building permit, construction plans are ready, and the earthworks already underway. So we are readying for construction start. As soon as 50% - 60% of the leasing contracts have been

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Q&A

signed with our brand partners, we are able to start construction, which will take 12-14 months.

PRODUCT

What are the biggest challenges that you have encountered so far in the development process?

PRICE

COMPARISON

Naturally the current Russian crisis has raised some questions. But at the same time Russians have been, and still are, an important customer group for many brands. We have also learned that nearly everybody believes that the current

Michael Kors Rogers Large Leather Shoulder Bag

Tommy Hilfiger Sasha Down Filled Bomber Jacket

Etro Knit Skirt

P

rice in Russia inc. taxes

1,299.29€

500.00€

591.00€

F

innish high street price inc. taxes

1,051.37€

409.00€

465.00€

735.96€

286.30€

325.50€

559.33€

217.59€

247.38€

P

rice at Zsar -30%

T

ax free Zsar price (benefit -24%)

Zsar Outlet Village

12,000 sq m

exchange rate of the Ruble is temporary and things will be back to normal by the time Zsar opens its doors to consumers. We also have to constantly remind that we are not focusing only on Russians. The Finnish customers will provide above European average sales density to Zsar. And let us not forget that Helsinki is the 5th largest hub for Asian tourists in Europe. And the Asian tourists have been basically screaming for an opportunity to access great brands and see the beautiful nature that Finland has to offer. We can offer both of these on a single trip.

1st phase

8000 sq m 120 1700 2nd phase

Only 10 months after last year’s launch over 75% of the space of Phase I is now reserved

brand stores

parking spaces

Even a bigger issue has been the structure of the Finnish retail scene. Many brands are in Finland via agents or franchisees, which adds an interesting element to the leasing discussions. Having said that, at the same time more and more brands are making a direct entry to Finland themselves.

The total catchment:

8,5 mln

How would you describe these two –Russian and Finnish markets?

inhabitants (within 200 km radius)

Image: Zsar Outlet Village

In Finland the shopping center space density is quite high, being 391 sq m per 1,000 inhabitants*. However, there is rather little differentiation between the centers; brand

F I N L A N D

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BORDER CROSSINGS IN THE VICINITY OF ZSAR*

2007

6 Million

2010

7 Million

2013 2017 *Finnish Border Guard

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HELSINKI

SAINT PETERSBURG

TALLINN

10 Million

18 Million

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170

Image: Zsar Outlet Village

An example: October 2015 currency exchange rates

R U S S I A E S T O N I A

SHOPPING MALL EXPERT |

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Q&A

Millions of affluent Russian tourists come to Finland every year, and all of them eager to do shopping

I would say attention to detail, constant development, improvement, experimenting and learning by doing. It is crucial to analyse and understand customers’ shopping behaviour and needs, and to ensure an excellent customer experience.

What are the most important things one has to bear in mind when opening a new shopping mall?

As we all know, customers’ shopping needs and behaviour are changing. Customers expect more than just anonymous and uninspiring shopping centres. They require positive experiences and surprises, real time information and inspiration, personalisation, possibility to shop online and mobile, social media interaction and entertainment. We strive to be on the crest of a wave to meet these customer demands.

selection is quite limited and supply is more or less the same in all of them. In that sense the Finnish market has been rather undeveloped. However, just recently many international brands, such as Hugo Boss, Tommy Hilfiger, Calvin Klein and Michael Kors have started looking into the Finnish market and established local subsidiaries and opened company stores. Currently there are no factory outlet centers in Finland.

What are the future plans of your company for the coming years?

While most brands are at least somehow present in Russia, tourists still want to come to Finland to do shopping. They find that certain products are of better quality and prices are lower. Russians can also deduct the 24% VAT from their purchases. In addition, Russians trust that products in Finland really are genuine and not counterfeits. This is a strong mindset and works well in our favour.

So what is your recipe for success in the retail industry nowadays?

* according to Cushman & Wakefield Photo: Zsar Outlet Village

In short, for us as a developer we can offer Finns an unprecedented shopping experience with a unique brand selection, and for Russians over 50% price reduction of quality products compared to their high street prices.

Currently we focus on developing Zsar and operating it. But we do have future plans as well, as we believe the Northern part of Europe needs a focused, high quality operator. ď Ż

Photo: Zsar Outlet Village

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It has been said that “those that fail to learn from history are doomed to repeat it”. When it comes to the subject of weather and retail sales, this old adage could be turned around to more appropriately say “those that repeat history are doomed”

THE FINANCIAL IMPACTS & HIDDEN COSTS OF WEATHER VOLATILITY T

he ever-changing nature of weather is a reality that most retailers recognize, but few effectively address, with most ignoring weather volatility altogether when planning for next year. Last year’s weather is embedded in last year’s sales, and by failing to remove these impacts, most retailers are unintentionally planning on weather’s history repeating. This almost never happens. The weather and its impacts across the business only repeat from one year to the next about 15% of the time.

Given the very poor odds of weather history repeating, retailers really are dooming themselves to situations where they miss weather-driven sales opportunities, increase operational inefficiencies, and absorb additional costs.

It is a mistake most retailers make year-after-year that adds substantial error to their forecasts and extracts profit from the business.

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ANALYSIS

The good news is retailers can incorporate advanced weather analytics to put an end to these self-inflicted wounds. Multi-year analyses of sales data and the corresponding weather conditions on a week-by-week, market-by-market, and product-by-product basis can provide valuable insights into how consumers respond to the weather. Retailers can use these detailed analytics to calculate precise measurements of demand increases or decreases that occur due to changes in the weather.

Once a retailer has this detailed intelligence, they can begin to make smart decisions that capitalize on opportunities to sell more when the weather is favorable and manage costs and risks when the weather is unfavorable.

From a planning perspective, retailers can use Weather-Driven Demand calculations to avoid the “weather history will repeat” trap.

Weather-Driven Demand can be used to remove weather-based distortions from historical sales giving retailers a cleansed, weather-adjusted baseline from which to plan. This process improves the accuracy of business forecasts from a few percentage points to more than 20% for highly sensitive categories. A retailer can typically return 20 to 100 basis points worth of revenue back to the business through inventory optimization alone (reduced inventory carrying costs and fewer lost sales). This is just a starting point. During the selling season, retailers can optimize areas such as replenishment, marketing campaigns, pricing, store operations, and more with weather intelligence.

Understanding the weather’s influence on consumers and sales The climate outside affects many decisions that people make every single day: from their wardrobe choices to what they want to eat and drink, from the leisure activities they pursue to the maintenance tasks they decide to undertake. People may be very cognizant of the weather impact (e.g. they realize it is getting colder out and it reminds them it is time to go shopping for a new winter coat) or find themselves somewhat unconsciously reacting to conditions (e.g. a warm bowl of soup seemed more appealing than a salad on a chilly afternoon).

There are a lot of external factors (e.g. consumer confidence levels, energy prices, etc.) that have an impact on commerce and retailer performance, but none of these outside variables shift consumer buying behavior as frequently, directly, immediately, or meaningfully as the weather.

Weather data is definitely “big data” and its many idiosyncrasies make it challenging to work. How it is structured, aggregated, and incorporated is very different than most inputs or information sets.

And weather data alone is insufficient. It does not provide meaningful business perspectives or help bring about better decisions. If anything, temperature points or rainfall amounts are often misconstrued and misused by retailers when viewed in isolation.

Weather’s influence on consumers is complex and nuanced. What does 54°F (12°C) and light rain mean to a retailer? The answer is different in Chicago than it is in Charlotte and the answer is different in Barcelona than it is in Brussels. The answer changes if it is a day in March or June or October and differs for each retail segment or type of product. There can also be gender and age differences (e.g. what triggers demand for boots varies for women, men, and children). Traffic patterns are different for mall-based stores, outlet centers, online, etc.

The critical first step is combining actual sales and weather data to uncover true consumer response relationships and present them in a usable business context. This should be a “bottoms-up” approach that accounts for the unique characteristics of each market or regions throughout different times of the year and for specific product or service categories/sub-categories.

These lower level analytics best capture the “weather impact” and can be aggregated up to the levels required by the business.

Weather analytics, when done correctly, provide the following insights: Weather Drivers: The specific weather (warm & dry combination, snow, etc.) that influences consumer purchasing at each specific week/ market/category intersection Weather Sensitivities: The percentage of total category sales influenced by the weather Weather-Driven Demand: The percent (or units) increase/decrease in demand compared to the prior year or normal SHOPPING MALL EXPERT |

A change in the weather – 2015 examples There is plenty of evidence to illustrate that the weather does not repeat itself in just the past year. And while there are always a number of extreme or memorable weather events (e.g. snowstorms, heat waves, droughts, etc.), it is important to remember the daily, weekly, and monthly temperature and precipitation variations often end up mattering more as they help dictate when a season starts and its overall length and strength for each of a retailer’s regions or markets.

The United States experienced a generally warmer and drier spring in 2015 compared to 2014. In March, all regions in the U.S. trended warmer than the prior year and overall rainfall and snowfall was below normal. Many major markets in the West recorded their warmest temperatures for the month in decades. April also trended warmer and drier than the year-ago period with the greatest warm variances seen throughout the middle part of country and the South. May was actually cooler and wetter for the U.S. as a whole. However, the heavily populated East Coast markets ended up warmer and drier.

For the DIY Home Centers sector, the March through May period is critical – it’s essentially their Christmas season. If the weather is favorable, consumers will flock to DIY outlets to purchase lawn and garden equipment, patio furniture, barbeques, and other outdoor products. The more favorable weather conditions over the spring enabled most retailers in this sector to outperform the weaker sales comps from 2014.

Planalytics calculated a $1 billion favorable weather-driven sales impact for DIY retailers during this period (Figure 1), with the biggest

Figure 1. Planalytics, DIY Centers

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ANALYSIS

The earlier and stronger start to the season has helped clothing retailers move through more of their inventory at higher margins. However, those that did not plan for the stronger sales environment surrendered sales in markets where they did not have enough inventory to meet demand.

The benefits of “weatherizing” the business The favorable spring in the U.S. and the favorable autumn in Europe offer two examples of weather helping to increase sales over the prior year. The opposite – and usually more painful situation – is just as common. Over-planning the business is easy to do when retailers fail to account for weather-inflated sales in the previous year. Profitability can really take a hit in these scenarios with higher inventory costs and reduced margins as retailers take larger markdowns in an attempt to reduce stock levels.

Most retail companies will see 2-8% of the total annual revenue affected by the weather with highly sensitive categories seeing much larger swings. The weather never stops changing, oscillating between favorable and unfavorable periods, and retailers that use weather analytics to understand weather’s influence on their customers can recapture the profitability that weather volatility steals from the business each year.

“Weatherized” retailers continually track and measure the climate’s influence on sales and systematically incorporate the weather impact insights into their planning processes. In doing so, these retailers significantly reduce demand forecast error and better position the business to minimize weather-related costs while maximizing opportunities to increase salesand profits. 

Figure 2. Planalytics Temperature Maps

year-on-year gains coming through at the start of the season in March.

This was great news for retailers that were prepared for the increased store traffic and sales. However, for retailers that planned based on weather deflated 2014 sales, there were undoubtedly lost sales, increased costs, and several weeks spent trying to catch the business up as the season unfolded.

The same graphic also highlights how wetter conditions hurt sales for the DIY sector in June and July. Some of the companies that were caught off guard earlier in the season may have over-reacted and brought in additional inventory only to see the sales trend weaken in the second half of the season. The failure to remove positive weather impacts from 2014 also made it likely that they over-planned to begin with for June and July.

This autumn in Europe provides another strong example of yearto-year weather volatility and its business impacts. The maps for September and October (Figure 2) depict the cooler temperatures compared to 2014 across Western Europe (October shows the cooler conditions expanding across Central Europe as well).

15%

of the time the weather and its impacts repeat across the business from one year to the next David FRIEBERG

Once again, the weather did not repeat itself. This was welcomed news for European apparel retailers who were really hurt by one of the warmer autumns on record last year. Planalytics’ Weather-Driven Demand (% change versus the prior year) calculations show how the more favorable weather translated to increased business.

Apparel Store Traffic (September): +5 to +10% in the United Kingdom, the Netherlands, Belgium, Switzerland, and France Women’s Boots (September): +28% in the United Kingdom Men’s Fleece (September): +33% in France Apparel Store Traffic (October): +3 to +8% in the Germany, Austria, Slovenia, Poland, and the Czech Republic Knitwear (October): +11% in Germany Hats, Gloves & Scarves (October): +25% in the Poland WWW.SHOPPINGMALLEXPERT.COM |

Vice President of Marketing, Planalytics David has helped bring leading technologies to consumer-focused businesses for more than 15 years. He oversees global marketing programs across all of Planalytics’ business segments. Prior to joining Planalytics, David held marketing roles at Retek (now part of Oracle), which focused on solutions and services for the retail industry. He started his professional career at Comshare, a software company that helped companies in retail, consumer goods and a variety of other industries with financial analysis and reporting, performance measurement and planning. David earned a B.S. in Business Administration from the University of Delaware.

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| DECEMBER 2015

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Interview with Ken Kraus, Senior Manager, Property Management, Los Cerritos Center

Q&A

CALIFORNIA USA

H

ow to celebrate a special anniversary? The Los Cerritos Center celebrated their 45th anniversary with an expansion.

With the commercial offer extended, new amenities for customers and new entertainment zones, the shopping centre will undergo some mild rebranding. Although shopping centre expansion is not an easy task and definitely takes a lot of time, the effects will surely be worth waiting for

Photo: Los Cerritos Center

Los Cerritos Center is currently undergoing big changes. When and why did you decide to rebuild your shopping mall?

Los Cerritos Center is a very high-performing, 1.2 mln squarefoot (111,000 sq m.) property located in the densely populated region between Los Angeles and Orange Counties in Southern California, serving an incredibly vibrant trade area. Our property recently celebrated its 45th anniversary, and in keeping with our regular program of updates to the property and to the shopping experience, we felt it was time to refresh. We added an upgraded Nordstrom and a variety of new inline More than stores in 2010, but before then the last major remodel took place in 1995. This property has been a hotbed for leasing activity over the last five years and with the evolution of the retail, it was time to also shoppers welcomes evolve the look and feel of the center and enhance the overall shopping experience.

Los Cerritos Center

8.5 mln annually

The redevelopment is designed to create a greater sense of space and introduce new exciting experiences and brands to this popular shopping center. Three new major names joining the property are DICK’s Sporting Goods, a new Harkins Theatres, which will feature 16 screens and a state-of-the-art movie-going experience, and The Cheesecake Factory. In terms of other new retail, since the beginning of the renovation we have added UNIQLO, adidas, Kiehl’s Since 1851, The Art of Shaving, Pandora, Kiko Milano, Shoe Palace, Motherhood Maternity, Reflection, plus complete store remodels of Things Remembered, True Religion Brand Jean, Ben Bridge Jewelers, and a new twist on Pac Sun.

Photo: Los Cerritos Center

How will the shopping center change after the redevelopment?

commissioned especially for Los Cerritos Center. Additionally, for the first time in 40+ years, the center will be adding monument signs and way-finding signs around the property.

The property’s extensive overhaul will include a remodel of all elements of the center’s interior and common areas, including all new flooring, new LED lighting, new paint on every surface. Plus we are completely redoing the men’s and women’s restrooms and adding family restrooms and all mall entrances will be refinished with sliding glass doors. On the exterior, the hardscape will be updated as well as the landscaping to a more drought-resistant program. We are also adding a custom-designed sculpture SHOPPING MALL EXPERT |

What is the biggest asset of Los Cerritos Center in your opinion?

Without a doubt, it is the robust line-up of stores that continues to draw customers to Los Cerritos Center. We have several key tenants that are the closest for our shoppers within a 20-mile radius, including Zara, the new UNIQLO, and Michael Kors. The

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Q&A

property is conveniently located and easy to navigate and offers welcome amenities such as the new Text Concierge program that truly differentiate us from other retail properties. Text Concierge invites shoppers to text us their questions and suggestions and receive a personalized response within moments. Our shoppers love this fast and easy new way of communicating with us.

A strong point of Los Cerritos Center is also a characteristic Spanish-Mediterranean style.

It’s true. The shopping center was built in 1971 and completed in 1972. Our company, Macerich – one of the country’s leading owners, operators and developers of major retail properties in attractive U.S. markets – purchased it in the 1990s. Currently, Los Cerritos Center is finishing a full interior renovation as well as some exterior enhancements designed to create a clean, sophisticated environment that will endure through the evolution of style and design over the next 20+ years.

Los Cerritos Center offers a wide range of shops and services. How do you choose new tenants?

Our leasing and property management teams are very strategic in terms of the type of tenants we bring into the center, keeping in mind that we are not a luxury center, nor are we an everyday center, but rather a top super-regional mall serving an extremely robust, densely populated market. It is important to find the perfect blend

Photo: Los Cerritos Center

of middle- to high-end stores that will appeal to our ethnically and economically diverse clientele. We also look closely at the demand. For example, the M-A-C Cosmetics counter performed exceptionally well inside Nordstrom. That justified opening a M-A-C store. Michael Kors handbags were selling off the shelves in Macy’s, so we opened a Michael Kors store. We looked at the trends and responded. Additionally, our center is strategically located between Los Angeles and Orange Counties and has excellent freeway access. We are a destination, and we continue to merchandise in a way that enhances our position as a true destination.

Each month the shopping center organizes various events. Which of them are the most popular?

We are pleased to host a full calendar of exciting events and brand activations that bring new experiences to our shoppers, and in turn, drive traffic to our property and to our retailers. For example, in late July, as part of our company’s sponsorship of the Special Olympics 2015 World Games in Los Angeles, we were honoured to welcome athletes and coaches from Uruguay for a special pre-opening celebration. In 2015 we consciously decided to scale back on center events primarily due to the renovation – we simply do not have as much space to hold events while floor work is being done. But we are eager to return to our active events calendar in 2016.

Q&A

Are you satisfied with the number of visitors?

Yes. Los Cerritos Center welcomes more than 8.5 mln shoppers annually. We anticipate this number to increase in 2016 with the additions of appealing new tenants including DICK’s Sporting Goods, Harkins Theatres and The Cheesecake Factory, to name a few.

objectives of Macerich’s Sustainability Program, which began in 2008?

We strive to conduct our business in a socially responsible manner that balances consideration of environmental and social issues with creating long-term value for our company and our stockholders.

Macerich is committed to improving its natural resource efficiency

In 2014 property installed 3,354 solar panels that produce 872kw of power. That is enough energy saved to power 120 homes for one year I noticed that Los Cerritos Center didn’t stop at having a website, but is also very active on many different social media platforms.

It’s true. For the latest on what is happening with the redevelopment, guests can visit our website. We do have a presence on Facebook and Twitter as well. Text Concierge is another great way we connect with our shoppers.

Today for many customers it is important to protect the environment. What are the main goals and

and demonstrating that the operation and development of its properties can be conducted in an environmentally responsible and sustainable manner. Consideration of these issues is an ongoing part of operations, whether it relates to our offices or centers.

To give you a sense of how important sustainability is to our company, through deliberate efforts Macerich has reduced its carbon footprint by more than 150,000 metric tons since 2008. In 2014 our company earned the Global Real Estate Sustainability Benchmark (GRESB) Green Star, an important measure of sustainability performance for real estate portfolios around the world. Macerich was also honored to be named the 2014 Retail

Q&A

Staff uses Global Electric Motorcars and Segways instead of vehicles powered by gas.

Leader in the Light by the National Association of Real Estate Investment Trusts (NAREIT) for our comprehensive sustainability efforts.

How would you describe the U.S. shopping center market?

Could you please tell us a little bit more about the effects of this project?

“A” malls in densely populated and affluent U.S. markets – the exact kind of trophy properties in the Macerich portfolio – are doing very well. Los Cerritos Center is an excellent example of a welllocated, fortress property that serves a robust market. In general, shopping centers continue to meet the needs and desires of U.S. consumers who crave real, in-person experiences.

Los Cerritos Center is actively involved in our company-wide focus on sustainability. In 2014 our property installed 3,354 solar panels that produce 872kw of power. That is enough energy saved to power 120 homes for one year. We use green cleaning products at our center wherever and whenever possible. The center has

What in your opinion are the biggest challenges for shopping centres today? And how do you handle them?

In order to continue to meet consumers’ desires for what’s new and fresh, shopping centers need to continue to evolve and engage

Photos: Los Cerritos Center

shoppers with new experiences – which is exactly what Los Cerritos Center is doing right now with our remodel combined with exciting additions to our retail roster.

implemented new lighting protocols that allow us to minimize our energy use and lower our carbon footprint without any impact on the shopping experience. Los Cerritos Center recently upgraded the HVAC system which minimizes our energy usage and lowers our carbon footprint. Most of the center’s trash is taken to a facility that sorts out the recyclable materials and only discards the “true” waste. We have also installed a shared recycle compactor so the entire mall has the opportunity to recycle. As well, our Security

WWW.SHOPPINGMALLEXPERT.COM |

Some experts predict that shopping centres will lose ground to the increasing influence of online retail. Do you agree with this opinion?

No. We actually view the two as complementary and believe that brick-and-mortar stores will remain important to consumers because people still enjoy the experience of shopping – we see it every day. Many also shop online and this will continue, but people still want to touch, feel and experience products and they enjoy the stimulating, social environment that top malls deliver.

What is your aim for the coming years?

At Los Cerritos Center, our goal is to continue to perform for shoppers and retailers as a market-dominant property with the best collection of stores, restaurants and entertainment experiences in the market. 

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| DECEMBER 2015

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GRAY IS WHERE THE GOLD IS Although it is fashionable today to fixate on the millennials (those born during the late 1980s to early 2000s, who are now 20–34 years of age) due to their unique outlook on life and digital lifestyles, it is the silver generation (those 50 and older) that has money and is more likely to spend it. Silvers and near-silvers have the highest household spending today and are likely to retain it for decades as their ranks expand. This demographic is therefore where retailers should logically focus their energies. There are strong demographic and economic trends that are expected to persist for at least the next 30 years, at which point the millennials will have become silvers in their own right

WWW.SHOPPINGMALLEXPERT.COM |

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EXPERT

over 50

under 50

237

241

244

161

167

173

229 141

2035

234

225 134

2030

155

220 128

2025

232

214 120

2020

148

210 111

2015

2040

2045

2050

2055

2060

Source: US Census Bureau/FBIC Global Retail & Technology

In addition, about 70% of people 65 and older have paid off their mortgages, according to the Consumer Financial Protection Bureau.

Silvers: Working Longer and Staying Healthier Following a prolonged decline in workforce participation among people over 55, people are now working longer. One reason is that Americans cannot receive full Social Security benefits until the age of 66, and if they wait until the age of 70, they can receive significantly higher monthly payments (as much as 30% higher). Moreover, costly defined-benefit pension plans are becoming less commonplace, and postponing retirement gives people more time to build up their retirement savings.

Americans are also living healthier and longer. According to the World Health Organization, an American reaching the age of 60 today can expect to live another 19 healthy years.

Moreover, the life expectancy at 60 has been increasing by about 1.4 years every five years.

What Do Silvers Spend Their Money On? We see in the graph 2 that millennials have below-average median household income.

While those over 50 accounted for 35% of the U.S. population in 2015, automobile marketing firm J.D. Power estimated that baby boomers (those born during 1946–1964, who are now 51–69 years old) were responsible for nearly half of all new vehicle purchases in 2012. About half of all boomers buy tech products, including smartphones, digital cameras, computers, tablets and e-readers. Research firm MRI reported in fall 2012 that boomers spent $8 billion more than millennials and $10 billion more than Gen Xers on foreign vacations. The more affluent boomers are also expected to continue to spend more Figure 2. 2013 Median Average Annual Spending by Age Bracket in 2014 Average Annual Expenditures (in $)

70 000 60 000 50 000 40 000 30 000 20 000 10 000 0

321= 495= 625= 656= 562= 488= 366=

Forget Youth; Focus on the Dollars For decades, advertising in popular culture has been primarily focused on capturing the spending of youths. And today, consumer product companies are increasingly targeting the millennial generation. This fixation on youth, however, overlooks the massive amount of wealth, income and spending power that the over-50 crowd yields.

More than three-fourths of America’s household net wealth of $81.5 trillion is concentrated among those aged 55 and older, according to data in the US Federal Reserve’s 2013 Survey of Consumer Finances. While U.S. households suffered a decrease in net worth in the 2007 housing price decline and resulting financial crisis, in 2013, the median net worth of households headed by 55–64-year-olds ($165,700) was still more than three times that of households headed by 35–44-year-olds ($50,100), again according to data from the Fed’s survey. The average net worth for millennials (ages 20–28) was $11,000, reflecting both the effects of the recession on asset values and millennials’ soaring debt.

As is the case with most Americans, the majority of the net worth of the 50-plus group derives from homeownership. Nearly 80% of those over 50 are homeowners, as compared to 40% of millennials and 64% of Americans overall.

Notwithstanding the sharp decline in U.S. real estate prices during the Global Economic Crisis, older Americans have maintained high home equity stakes. This age group also owns 69% of U.S. financial assets and is 50% more likely to own investments than 18–49-year-olds are.

Figure 1. Projected US Population by Age Group (Million)

111+210= 120+214= 128+220= 134+225= 141+229= 148+232= 155+234= 161+237= 167+241= 173+244=

T

he first reason retailers should focus on the silvers is demographic: there are going to be more of them and they will make up a higher percentage of the total population. The figure 1 shows the US Census Bureau’s forecast of population by age from 2015 through 2060. From the data, we can make two observations: one, the over-50 group is growing faster than the under-50 group, adding 62 million people through 2060 and growing at a 1.0% compound average annual rate, as compared to 0.6% for the general population and just 0.3% for the under-50 group. Two, the over-50 group is projected to grow to 41% of the population in 2060 from 35% today.

Another important reason that retailers should focus on the silvers is that they have money to spend. We see in the figure 2 that three age groups have above-average median household income: 35–44 (about to be silver), 45–54 (becoming silver) and 55–64 (already silver). Based on the demographic data presented in the graph 1, the group of people over age 50 is expected to be 56% larger in 2060 than it is today.

under 25 years

25 to 34 years

35 to 44 years

45 to 54 years

55 to 64 years

65 to 74 years

75 years and over

Source: US Census Bureau/FBIC Global Retail & Technology

SHOPPING MALL EXPERT |

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EXPERT

on luxury products than millennials are, according to marketing researcher Shullman Research Center.

Silvers spend heavily on healthcare. We see in the graph 3 that Americans ages 55–64 spent an average of $4,958 on healthcare in 2014, 16% above the average for all Americans and nearly twice what millennials spent on average.

19

healhty years of life can expect an American reaching the age of 60 today (according to the WHO)

Figure 3. Average Spending on Healthcare in 2014 55-64 years Millenials all consumers

495= 265= 429= 4958

2659

4290

average spending on healthcare in 2014 (in $)

Boomers are focused on healthy aging. While life situations and lifestyles vary, boomers share an interest in maintaining physical vitality, which encompasses health, wellness and appearance. Thus, we anticipate that areas related to health and healthcare—from enhancing one’s physical appearance to surgical enhancements—will likely see robust growth ahead.

In the US, consumers 55 and older account for 62% of the prescriptions filled annually. In particular, older consumers are embracing the concept of proactive self-care. They are investing disproportionately in a wide range of preventive care and simple healthcare solutions.

So, it is no surprise that the U.S. antiaging skin care market reached $2.1 billion in 2013, according to market intelligence firm Mintel.

Likewise, NPD Group estimated that boomers will control more than half of the dollars spent on US grocery foods this year. Given their preoccupation with health and wellness, older Americans are particularly responsive to food and beverage products with a focus on nutrition and wellness.

Boomers are also heavy spenders on pensions. In the graph 4, we see that those in the 55–64 age bracket spent an average of $7,098 on personal insurance and pensions in 2014. The higher total likely reflects their thoughts on looming retirement and, for those who have undersaved for retirement, catching up on their saving. According to investment industry data, only one in three adults in their 50s has created a retirement plan. So it is logical that those nearing retirement save much more than millennials, particularly given their higher incomes.

Deborah WEINSWIG Executive Director and Head of Global Retail & Technology for the Fung Business Intelligence Centre An award-winning global retail analyst and a specialist in retail innovation and technology, she is responsible for building the Centre’s research capabilities and providing insights into the disruptive technologies reshaping today’s global retail landscape. Her in-depth knowledge and understanding of global retail and emerging technology trends were fostered through her previous experience, which includes serving as Head of the Global Staples & Consumer Discretionary team at Citi Research, where she worked for nearly 12 years.

Figure 4. Average Spending on Personal Insurance and Pensions in 2014

Millenials all consumers

709= 547= 572= 7098

5472

5726

average spending on personal insurance and pensions in 2014 (in $)

Ms. Weinswig has been consistently ranked among the top analysts in her field

by Institutional Investor (#1 for nine years), StarMine and Business Insider (which named her one of Wall Street’s top 36 analysts in 2012). She also received the Researcher Award for Outstanding Service from the International Council of Shopping Centers in 2012. She is frequently quoted in The Wall Street Journal, The New York Times and Barron’s, and is a regular guest on CNBC. Before her time at Citi, she held senior research positions at Bear Stearns and Morgan Stanley.

Source: US Department of Labor/FBIC Global Retail & Technology

Silvers also spend relatively more on the appearance of their homes, with the 55–64 age bracket spending an average of $1,778 annually on household furnishings and equipment, as compared to $1,481 for all Americans and just $1,434 for millennials.

WWW.SHOPPINGMALLEXPERT.COM |

billion reached antiaging skin care market in 2013 (according Mintel)

There are a couple of other categories in which the silvers exhibit higher spending, that are perhaps telling of habits of past generations.

Those in the 55–64 age group spend an average of $401 per year on tobacco, as compared to $319 for all consumers and just $281 for the 25–34 age bracket. These figures do not bode well for their future spending on healthcare. Silvers also spend more on reading material, with the 55–64 age bracket spending $123 annually on average, which is above the $103 average for all consumers and the $75 average for millennials.

Although much attention is currently being lavished upon the millennials (as it should be, as they are up and coming and have a different outlook from preceding generations), there is still an enormous, long-lasting opportunity for selling to the silver generation. The silvers are big savers and big purchasers of health care, vacations, tech gadgets and items to decorate their homes. The demographics show that silvers’ ranks will increase for several decades, and combined with high incomes and net worths, the silver generation represents a highly attractive group for retailers. 

Source: US Department of Labor/FBIC Global Retail & Technology

55-64 years

50% $2.1

of all boomers buy tech products, including smartphones, digital cameras, computers, tablets and e-readers

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| DECEMBER 2015

Photo: AG by Ana Gutierrez

Q&A

DOING SOMETHING different EVERY DAY Interview with Ana Gutierrez, designer and owner of AG by Ana Gutierrez

WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

Q&A

T

he Ana Gutierrez wearable art jewellery is dedicated to women who want to express their unique style. Inspired by her travels all around the world, the designer uses natural materials to create little pieces of art. However, with ever-expanding competition on the market, sometimes talent and passion are not enough. Today, an artist also needs to develop her business, management and marketing competences I have the impression that your arts are not simple jewellery, they are wearable art.

I think there wouldn´t be one without the other. I have seen very talented designers struggle because they just don´t know how to get their brands into the market and stay there, which is the most difficult part. I have a strong business background and experience – my father, who is a very wise man, got me involved in the family business from a very early age, teaching me the ropes on managing any kind of crisis. So I had a very clear idea of where I wanted my brand to go from day one. Having said that, I wish I could spend more time designing and less managing.

It’s true, because most of our pieces are one of a kind, making them collectable pieces. Jewellery is so much more than simple body ornamentation. When you design jewellery, you express your inner self, your style and your views towards current situations. And that is also true when you wear it. So my customers express themselves through my work.

How can you describe your style in 3 words?

So far you have received many awards, for example Diamond Accessories at Miami Fashion Week 2007 and 2008. Which of them are the most important to you?

Unconventional, ethnic and Bohemian chic.

Your jewels combine different cultures and styles.

What is your inspiration to create new collections?

The inspiration comes from observation and experience, meaning reading the papers or going out on a weekend trip. Every situation around you can turn into inspiration. Because of my line of work, I have to travel a lot around the world, from sourcing manufactures in Asia to materials in Brazil, I definitively have a melting pot of influencers that result in my inspiration.

I think awards are great, but the only one that really matters is ¨the Customer Preference Award¨. Luckily I have been getting that one for the last 10 years.

Various awards are not the only measure of success.

What do you consider your greatest achievement so far?

To build a brand from scratch and make it international. My collections have been showcased in Mercedes Benz Fashion Week in San Jose and Miami. I have also participated in New York, London and Paris Fashion Weeks.

What are your favourite materials?

I love to use materials in their natural state, like rough minerals.

Combining unexpected, untraditional materials is what makes my work different from the main stream brands. For example, a sterling silver pendant with leather and feathers made to look like a Quetzal´s tail.

I tend to get bored very quickly so the fact that I do something different every day is a must for me

I heard that you started your adventure with designing when you were a little girl.

It’s true (laugh). Since I was about 9 years old my mother has taught me how to sew. We used to choose styles and fabrics together and make my clothes. She has impeccable taste and style, although very different from mine. She taught me the basic concept of proportion and elegance, she has a great eye for trends, too. Those afternoons creating fashion with her were definitively the starting point.

In your business you pay attention to environment preservation and social fairness. How does it work in practice?

In practice I work with non-profit organizations to promote and support environment preservation, donating a percentage of the price paid for the pieces to specific programs. At this time we are supporting Coco´s Island Park, named by UNESCO, Human Heritage. We have designed a collection inspired in the spectacular

Your dad also had an impact on your career. You owe him a flair for business. What is more important to you today – artistic or business talent?

SHOPPING MALL EXPERT |

Photo: AG by Ana Gutierrez

COSTA RICA

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| DECEMBER 2015

Q&A

Photos: www.instagram.com/anagutierrezart

beauty of this park and 9% of the proceeds go to the fight against illegal fishing in protected waters. You can learn more and donate at the dedicated website for Coco Island.

We also use recycled metals when available and engage in community efforts to support the less fortunate through reputable charities and government initiatives.

Social media is definitively the most important communication channel nowadays. Direct interaction with customers and word of mouth. We keep our Facebook, Pinterest, Twitter, and Instagram pages updated with new collections, news and events. You can find us on Facebook as Ana Gutierrez wearable art and Ana Gutierrez Art on all others.

I’m sure that your work is also your passion. What do you like most about your job?

Every situation around you can turn into inspiration

It’s true (laugh). I tend to get bored very quickly so the fact that I do something different every day is a must for me. The designing process keeps me interested and engaged. Always from observation to creation.

Where can clients buy your products?

What can we wish you for the coming years?

We have our brick and mortar stores in Costa Rica, where I am from originally, and also in Grand Bazaar Shops, Las Vegas. But you can also buy most of our collections at our online shop.

To expand our presence in the USA, opening more company owned boutiques as well as franchising our brand to savvy, fashion oriented entrepreneurs. 

Today e-commerce is growing rapidly. When did you decide to launch an online shop?

After opening our boutique at Costa Rica´s international airport, we started getting emails from people all over the world wanting to buy our collections. The biggest challenge has been keeping up with sales and requests for our One Of A Kind signature collections. Today I do ship to all parts of the globe.

Ana GUTIERREZ Designer and owner of AG by Ana Gutierrez

How do you choose location for new mortar stores?

Costa Rican designer with an European background, who shares her country’s philosophy of environment preservation and social fairness. This is constantly reflected in her collections and business practices.

How can you characterize your clients?

As a socially responsible designer all of her leather accessories are hand made by Costa Rica’s penitentiary system with European technology, in alliance with the rehabilitation program called “Prisoners Hope”.

I look at 3 aspects when choosing a location: foot traffic, segmentation and synergy with other brands around me. And of course the right cost structure.

Early adopters. Women who like to be different and have their own style. They don´t want mass produce products and are environmentally conscious. Art lovers, nature lovers, adventurous and unique.

Two times winner of the Diamond Accessories award at Miami Fashion Week 2007 and 2008, her provocative boho chic style is the new up and coming look for the season.

As you already mentioned, your offer is addressed to customers around the world. How do you communicate with them?

WWW.SHOPPINGMALLEXPERT.COM |

Previous collections have been showcased at Miami, New York and London Fashion Week events as well as the “Le Carrousel du Louvre Ethical” Fashion Show 2012 and Bihjorca 2013 in Paris, France.

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| DECEMBER 2015

Executing Shopper Insights 10th-11th February 2016, London, UK Canadean Executing Shopper Insights 2016 will take place this year in London on 10-11 February. Featuring exclusive case studies, exciting panels and interactive roundtables this year’s event will provide a perfect platform to maximise networking opportunities with established beverage brands including Britvic, SABMiller and CocaColaEnterprises and popular retailers including Tesco, Brand Alley and mySupermarket.

Some of Canadean's leading analysts will also be present and hosting a roundtable, and oering some exclusive insights of their own into new trends to look at for 2016.

Media Partners:

For more information and to register please visit (quoting: MK-HJAD)

www.arena-international.com/execshopper

THE SITUATION IN

UKRAINE

AND THE EXPANSION OF INTERNATIONAL RETAIL CHAINS IN CENTRAL AND EASTERN EUROPE

Photo: Fotolia

In December 2015 in two largest malls in Kiev, Ocean Plaza and Sky Mall, the stores of popular global brand Hunkemöller will be opened.

Hunkemöller products are sold in more than 700 stores, in 18 European countries. In Ukraine Hunkemöller has an ambition to open at least 20 stores by 2020. And this case is not an exception. A major Turkish family clothing retailer, LC Waikiki, frequently referred to as “Turkish H&M”, plans to open 10 new stores in Ukraine in 2016

EXPERT

E

very time when the Ukrainian Retail of June 2015 the highest rental rate for 100–200 Association portal publishes news about sq m. sections in the best Kiev malls amounted to $55/sq m. per month. Rental rates for vacant new player entry into our market, we disMore than pel a myth about lack of opportunities for foreign facilities at Kreshchatik, the main shopping street retailers here. in Kiev, amounted to $75–80/sq m. per month.1 Certainly, the development of some new – The highest demand from retailers is obcommercial property projects was slowed down served mainly for high-quality minimum risk new foreign brands and local currency devaluation caused the deobjects in operation and for objects at lock-up came to Ukraine over stage. About 90% of fashion-retailers primarily cline in purchasing power. However, according the last three years to Ukrainian Retail Association estimates, more consider best Kiev malls for their stores location, than 60 new foreign brands came to Ukraine secondarily – main shopping streets of Kiev – say over the last three years. And the trend holds deColliers International analysts.

At most spite the economic crisis and conflict in the East After the Revolution of Dignity, that took of the country. At most 20 brands left Ukraine place at the turn of 2013, not only Ukrainian folk due to turmoil and uncertainty. costume became popular, but also locally pro– Ukraine’s market is in turbulent zone but duced goods under the label “Made in Ukraine”. brands left Ukraine continues to develop. The capacity of women’s Shopping malls in Kiev and other cities began underwear market may reach 200 million EUR in to provide places for multi-brand pop-up-stores, due to turmoil and 2015 – said Sergey Gavrik, CEO of Dorchester where Ukrainian designers and producers, who uncertainty Retail Group, a company that brought Huncannot rent a full-scale store, are put togethkemöller to Ukraine. LC Waikiki also takes up er. This is a good example of sharing economy, the challenge. – My Turkish boss often says that a trend that gains momentum in Europe. everything now happening in Ukraine is very bad, The Estonian developer Arricano combined but as a retailer we know how to make money in this situation and efforts with the Estonian retailer KarKat Fashion (both are active how to achieve success – said Nata Bachiashvili, country manager at developers in Ukraine) to create a 1000 sq m. store Names.ua with LC Waikiki (Ukraine/Belarus).

Ukrainian designers’ products. This is an example of a developer and retailer partnership. The companies conducted research that proved As the capital of Ukraine, Kiev remains the main destination. There are 47 shopping malls in Kiev with total area for lease exceeding one the growing interest to “Made in Ukraine” and willingness to buy million sq m. Developers promise to complete the construction of nine items created by Ukrainian designers. – According to our research, malls with total GLA around 591000 sq m. in 2016–2017. By the end more than half of our visitors purchased locally produced goods;

15%

Photo: Fotolia

20

SHOPPING MALL EXPERT |

51

| DECEMBER 2015

EXPERT

51.3% of them opt for apparel, footwear and acextensive plans for the Polish market – to open cessories – said Tatiana Burkatskaya, who is in more than 30 jewelry Golden Place supermarkets Almost charge of Names.ua project on behalf of Arricano in 5 years.

In October Ukrainian Arber Fashion Group Real Estate. opened its first store in Prague, in Galerie BuThe Ukrainian market remains promising due to relatively low supply of shopping space. The tovice. The Ukrainian clothing brands Arber and lower than in Warsaw retail property market in Kiev is not saturated, Gregory Arber became available for European and Prague and if compared with other European cities.2 That deshoppers. The retailer plans to develop not only in Prague, but also in other big Czech cities. termines the investment prospects on this market 25% lower than in for local and foreign developers.

We are glad that the European market is open Moscow is the amount The amount of shopping space per 1000 innot only for big Ukrainian retailers but for small of shopping space per habitants in Kiev is 25% lower than in Mosplayers and family business as well. Aliona Tokar 1000 inhabitants in cow and almost 60% lower than in Warsaw and from Kiev and her husband Dmitriy PantyuPrague. khin opened a hand-made caramel and sweets Kiev Ukrainian retailers do not limit themselves store in Krakow, named LOL&POP. – In terms with joint projects or new store openings in of development we are also considering WarUkraine. The new opportunities for development saw, Wroclaw, Gdansk and other EU countries.

As far as Krakow is concerned, we do not want opened up for them in the European Union. The to stop with one store. We are thinking about openings in malls and first results are already there. placing our products on supermarkets’ shelves – said Aliona Tokar.

The chain of children’s entertainment centers LeoPark opened its centers in Krakow and Lodz. – In Poland, like in Ukraine, there are According to Elena Klimenko from B.RAISE (women’s clothing many international developers. But Poland has more of them and manufacturer), many Polish malls offer locations for a period from 2 months to 2 years. there is more shopping space. The new malls are actively constructed; I mentioned only some examples of Ukrainian retailers’ developtherefore, there is a wide choice and competition among malls for high-quality renters – says Aneliya Neganova, CEO of Lviv-based ment outside the country. On January 1, 2016 the economic part company NEGA NOVA DESIGN that manages the LeoPark chain. of Association agreement, signed in June 2014, will come into efA clothes manufacturer “Rivne Linen Factory” opened its first fect. Since then Deep and Comprehensive Free Trade Area will start to operate. brand shop Goldi in Poland. The 200 sq m. store is located in Lodz, For sure, a lot should be done by Ukraine in order to successfully in Ptak, one of the largest Polish outlets. develop within the free trade area. But we are optimistic, especially One of the leading legwear manufacturers, Duna, sells its product after inspiring statements of the European Commissioner for Trade both as branded ones and under private label in Germany and France.

Cecilia Malmström on Ukraine: – You have human capital, technical For example, it supplies products to Auchan hypermarkets.

On November 27, 2015 the Ukrainian chain of jewelry supermarknowledge, highly-educated people and specialists in different spheres. kets Ukrzoloto opened its first Polish store – the Golden Place in You have to compete, not because you have cheap labor force, but Bialystok. 40% of store assortment will be formed by Polish brands. because you have skills, goods and an attractive market.  The second Golden Place store opened doors on December, 12 in the 1 According to Colliers International biggest mall in Wroclaw (with area of 145 000 sq m.). The chain has

60%

According to JLL

2

Andrii ZHUK Vice-President of Ukrainian Retail Association Graduated in executive and project management at DYB Ukraine, IFL Entrepreneur AB Swedish Institute of Management, Donetsk State University of Management as well as in electric drive and automatization of the industrial equipment at Donetsk National Technical University.

Having more than 10 years experience on the leading positions in retail companies – CEO of Managing Company Ukrzoloto, Chief of the rent department in “Amstor”, Andii is now holding a position of Vice-President in URA, where he is engaged in strategy management, support and development of relations with retailers, determination of the main development directions and event issues. Being founded in 2013, Ukrainian Retail Association has already become the main entry point to the quality communication with Ukrainian market players.

The mission of the organization – “Joining retailers’ forces in the process of formation and development of civilized retail market in Ukraine” – fully describes the global scale of activity of the Association and Andrii as its leader.

WWW.SHOPPINGMALLEXPERT.COM |

52

| DECEMBER 2015

THE 9-10 February 2016 Crowne Plaza Gerrards Cross, Beaconsfield, Near London

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EXPERT

LEASE

IN SELECTED CENTRAL EUROPEAN COUNTRIES WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

EXPERT

Form of lease Pursuant to the Polish Civil Code, a lease agreement may be concluded in any form; however, a lease agreement for definite period of time exceeding one year should be concluded in writing. In practice, all lease agreements for premises and retail space in shopping centres are concluded in writing, even though it is not a statutory requirement.

The situation looks similar in the Czech Republic and Romania. In those countries, a lease agreement may be concluded in any form whatsoever, although in reality most agreements are concluded in writing. In Romania, lease agreements may also be concluded in the form of a notary's deed. That form guarantees that the agreement becomes an enforcement order for the lessor against the lessee in terms of the payment of the rent and release of the premises upon termination of the lease.

In Slovakia and Hungary, a lease agreement has to be executed in writing, or else invalid.

Administrative obligations In none of the above countries, the validity of a lease agreement depends on obtaining administrative decisions or fulfilling any registration obligations. However, in Poland, the Czech Republic and Romania, fulfilling additional formal obligations may be profitable.

Photo: Fotolia

In Hungary, a lessee, upon concluding an agreement, may request the lessor, in court, to lower the security deposit to three months' worth of rent

In recent years, more and more entrepreneurs planning expansion turn towards the Central European market. When planning an expansion abroad, one has to carefully examine the legal aspects of conducting business activity in the selected country, as well as learn about the local market practices. Answering the needs of those who seriously think about expanding their business activity to shopping centres and malls in the Czech Republic, Poland, Romania, Slovakia or Hungary, we have prepared a short guide containing all of the necessary information regarding legal regulations and practices in those countries

SHOPPING MALL EXPERT |

55

In Poland, specifying a certified date on a lease agreement concluded for a definite period of time protects the lessee against termination of the lease agreement by the owner of the premises (should the owner change during the term of lease.)

In the Czech Republic and Romania, a similar effect can be achieved by submitting information about the conclusion of a lease agreement in the public real estate registers.

Moreover, in Romania, by registering the lease agreement with tax authorities, the lessor additionally obtains an enforcement order against the lessee for the payment of the rent and release of the premises upon termination of the term of lease.

Formal requirements with regard to the object of lease In all of the above countries, the lessee may not use the object of the lease for the purpose of conducting business activity until an occupancy permit for the building is granted by way of an administrative decision.

The object of the lease does not have to fulfil any formal requirements for the lease agreement to be valid. It means that a lease agreement may also be concluded in a situation where the object of the lease does not yet exist. Slovakia is an exception here. In this country, for a lease agreement to be valid, it has to be concluded for buildings that have already obtained an official certificate of proper construction (the equivalent

| DECEMBER 2015

EXPERT

and the Czech Republic there is a tendency to shorten that period as the negotiation power of the lessees is growing stronger.

In Romania and Hungary, lease agreements for retail space in shopping centres are concluded for shorter periods of time and equal on average 3-5 years.

of an occupancy permit). Prior to obtaining such certificate, only a preliminary lease agreement may be concluded.

Standard security deposits required by the lessors

The lessors usually require a security deposit for the payment of the rent and other dues resulting from the lease agreement in the form of a money deposit or a bank guarantee. The practice is quite uniform.

Termination of a lease agreement In all of the countries in question, the security period equals approx. for a definite period of time by the lessee three months. Common for all of these countries is also the lack The regulations governing the termination of a lease agreement conof specific regulations pertaining to such security deposits. The excepcluded for definite period of time by the lessee prior to the lapse of the tion is Hungary. There, the lessee, upon concluding an agreement may term specified therein, are also similar. request the lessor, in court, to lower the In all of the countries in question, the security deposit to three months' worth lessee may terminate a lease agreement 50 years – the period of time of the rent (unless a higher security deposit concluded for a definite period of time only whereafter a lease agreement is has been previously agreed on). in specific situations provided for in the deemed concluded for indefinite Additionally, in Hungary, like in Poland, legal provisions or in the agreement itself. the lessor often requires the lessee to subOf course, the legislation in terms period of time in the Czech Republic mit a notary's deed in which the lessee of specific conditions that have to be fulwould voluntarily submit himself to enforcement of the obligation filled by the lessee in order to terminate such agreement, varies across to release the premises upon termination of the agreement, as well the countries. Nevertheless, in most cases these conditions are limited as the obligation to pay the lessor all of the dues. to extraordinary circumstances that prevent the lessee from using the leased premises or involve gross violation of obligations resulting from Term of lease – statutory requirements the agreement or from the provisions of law by the lessor.

Pursuant to the Polish Civil Code, a lease agreement between entreIn each of the countries in question, the parties may include in preneurs may be concluded for a definite period of time not exceeding the agreement any other additional conditions that would authorise the lessee to terminate the lease agreement prematurely. For obvious 30 years. Upon the lapse of 30 years, a lease agreement is automatically converted into an agreement for an indefinite period of time. reasons, lessors are reluctant to agree to grant such rights to the lessees.

Similar solution exists in the Czech Civil Code. However, there, The negotiability of the provisions depends to a large extent on the negotiation power of the lessee. a lease agreement is converted into an agreement for an indefinite period of time after 50 years. The Czech Civil Code also contains an additional restriction, that after 10 years, each party may request the Market position of the lessees termination of the agreement, unless there is no material reason against What is found common in Central European countries, is that such termination. However, this right may be excluded by the parties. the basic terms and conditions of lease are generally specified (or In Romania, the maximum term of lease is 49 years. Pursuant to the often imposed) by the lessors. In particular, it refers to renowned and popular retail facilities where the negotiation power of the lessors is Romanian Civil Code, an agreement concluded for a period exceeding particularly strong.

49 years is automatically shortened to that period.

The legislation of Hungary and Slovakia do not impose any maxIn recent years, the market position of the lessees seems to be imum limits for the term of a lease agreement. improving, with the exception of Hungary, where the opposite seems to be true. However, in case of Hungary it is more about regaining Standard term of lease the previous position of the lessors after the economic crisis and Although the legal provisions regulating the term of lease vary from legislative changes that have introduced various limitations in retail.

Of course, in general, the lessees representing popular brands that country to country, the market practices across Central Europe are much more uniform. A great majority of lease agreements for retail occupy large spaces or attract a lot of customers and other lessees, have space are concluded for a definite period of time. much better negotiation power and are able to enforce preferential contractual provisions. ď Ż The lease agreements in Polish, Czech and Slovakian shopping centres are concluded for 5-10 years, on average. However, in Poland

Agata DEMUTH

Jan BAGATELA

Legal counsel, partner in the Warsaw office of the Central European law firm Schoenherr, responsible for real estate consulting

Real estate legal counsel at the Schoenherr law firm Specialises in real estate lease transactions and administrative and court proceedings pertaining to real estate. Mr Bagatela has wide experience in counselling for Polish and foreign commercial developers, construction companies and retail chains.

Mrs Demuth specialises in comprehensive legal services for real estate transactions, as well as the execution of investment projects. Wide experience in restructuring international capital groups operating on the real estate market.

WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

Stampof Authority For nine years, the Online Retail Awards have consistently honoured retailers (and their agencies and e-commerce providers) who have exceeded customer expectations and provided great web and mobile sites. Winning an Online Retail Award adds a stamp of authority to an online retailer’s identity. Nine years of history give the ORAs a unique perspective on online retailing and the changes that have come about.

The Call for Entries opens on January 1 and closes on March 31. Judging takes place during April and May, with the list of Finalists published in early June. A celebration of the ORA Winners takes place in London in mid September, each year.

Visit the website onlineretailawards.com For specific questions about entering, or about the event, please contact helen.burgin@orevents.com To find out about sponsorship opportunities linked to the ORAs, contact andy.rogers@orevents.com Media Associate

KAROLINA STANKOWSKA

AMAZING ATTRACTIONS AFTER DARK

Photo: Flickr.com, Christian Haugen

Noisy crowd, brightly coloured stalls overbrimming with products, rich aroma of the Asian cuisine and loud music – that's the Chiang Mai night bazaar in a nutshell. After dark, this shopping paradise is a true magnet for tourists

WWW.SHOPPINGMALLEXPERT.COM |

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| DECEMBER 2015

I

n Thailand, during the monsoon season it get dark around 7 p.m. However, it's definitely not the time for hiding in your hotel room. The country has many things to offer, also after dark. It's at night time that the city's many markets come to life. They are extremely colourful, loud and absolutely worth visiting. A great many are located in Chiang Mai. The city, called the jewel of northern Thailand, is the second, after Bangkok, most popular tourist destination in the country. It's not surprising. In the city, you will find over 300 temples, many shops, restaurants, and coffee shops. The old town, surrounded by old city walls, is also worth visiting.

Right after dark, large crowds hit the city's night bazaars. One of them is the Anusarn Market. The first buyers get here by 6 p.m., the last leave the bazaar after midnight. Here, you can buy practically anything you want – from typical tourist souvenirs and jewellery, to musical instruments, lamps, dried fruit and even bird cages.

Not only made in China A few things you should remember about when shopping on the market. First of all, remember to bargain for your purchases. Even if the asking price appears low, you could easily get another 50% off. If not for fun, then at least for the sake of an old tradition. Sometimes, though, you will find vendors unwilling to budge. If so, say thank you and go. Usually, they will run after the client, shouting in broken English a lower price. Even if they don't, don't worry. You haven't lost anything. Many stalls will sell the same or similar products. It's not a rule, though, as some vendors sell only hand-crafted goods. On the Anusarn Market, tourists may also find handmade statues, jewellery and t-shirts that are hand-painted on the spot. When in Chiang Mai, you should know the city is famous for their craftwork. In the nearby villages, dolls, ceramics and silver

1$

2$

is approx. 36 Thai Bahts (THB)

an average price for a Thai meal is below $2

50%

54$

on average how much you can bargain down on a Thai market

approx. for two-person room in a 4**** hotel near the Anusarn Market

(exchange rate as of 16 Dec 2015)

Photo: Flickr.com, Abdul Rahman

LIFE&STYLE

products are crafted. The place is also known for the production of colourful umbrellas, hand fans, and lamp shades made of bamboo and paper. You can also buy locally-made cotton products. The stalls in Anusarn Market are literally overbrimming with colourful shawls, t-shirts, and scarves.

Illegal Buddha Before going shopping, it's good to know the customs regulations governing the Buddha statues and images. As all depictions of Buddha are held sacred in Thailand, bringing them home may sometimes be difficult. The export of such items may require a prior approval of the Ministry of Art. A reliable vendor should inform you about it and help you get the necessary permit. The regulation does not apply to craftwork of low value, including statues less than 20-cm-high. Moreover, export of protected plants and animals, as well as any products made therewith, is also prohibited.

More than just shopping...

When you are tired of shopping, you should have no problem finding a place to recover in the Anusarn Market. Various Thai massage parlours are waiting for you there that may take in even 20 clients at a time. You can choose foot massage (1,5$ for 30 minutes) or full body massage (3$ for 1 hour). Even though Thai massage is not the most delicate, the feeling that you will have right after the session is totally worth it. Moreover, when in Thailand you should taste the local food offered on the Chiang Mai night bazaar. Among them is Phad Thai, rice noodles fried in fish sauce with peanuts, lime juice, egg and tofu.

Though the recipe is so simple, its taste is exquisite. In 2011, it was ranked fifth on the CNN list of fifty best tastes of the world. In case you don't like Phad Thai, money won't be wasted – it costs roughly $2. You should also try the papaya salad, so called sticky rice, a rice pudding on coconut milk with yellow mango. Don't forget about the fruits sold on the stalls and coconut ice-cream that every tourist dreams about after they come back home.

An attraction not for everyone's eyes Many may find the Cabaret Show an interesting, or at least original, attraction. It is not a regular performance, it's a dragshow. The foreigners call them the ladyboys, the locals – Kathoey. Even if hard to accept for a Western tourist, these people are widely accepted in Thailand and treated as equals. That is why you can meet them everywhere. They work in shops, banks or hotels, and the most bold of them decide to perform in places like the Cabaret Show. Loud music, bold, colourful and beautiful outfits and perfectly mastered dance moves – that's in short what you can expect when attending this kind of attraction.

The dance moves of the ladyboys will surely amaze anyone and everyone watching. Total ease, provocative clothes, perfect figures and bold make-up make Kathoey indistinguishable from real women. A ticket to the Cabaret Show costs $5 and may provide you with unforgettable experience, though for many a stroll up and down the Anusarn Market will suffice.  SHOPPING MALL EXPERT |

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| DECEMBER 2015

LIFE&STYLE

STATE-OF-THE-ART HOME SPEAKER BeoPlay S3 home speaker is another product from Bang & Olufsen luxury audio collection. These aesthetically pleasing wireless speakers were designed by Jakob Wagner. Two amplifiers give a combined 180 watts of amazing peak power. Connecting two or more speakers will give you a true wireless stereo experience that will keep the Photo: beoplay.com party going until dawn. The speakers are customizable – you can change the speaker cover to match your mood, season or interior style. You can choose from a wide variety of cover colors, including pink, blue or silver.

FERROFLOW

A GLUTEN TEST

Ferroflow is a desktop sculpture containing ferrofluid that showcases magnetic flux lines like you've never seen before. Turn the knob on the front of the device to adjust the spike formations manually, or simply touch any metal part of the device (just like Photo: ferroflow.com a touch lamp) to turn on automatic mode. While in automatic mode turning the knob adjusts the speed of the movements. The spikes and fluid motions of Ferroflow will keep you mesmerized for hours, and it makes for the perfect desktop distraction.

Gluten-free diet is growing more and more popular. For some, it is not just a dietary fad, but rather an obligation resulting from health issues. When dining out, it’s hard to be 100% sure whether a product is safe for those allergic to gluten, even if marked that way. Now all your gluten-related problems can be solved with one simple device, Nima Allergen Sensor. With this portable gluten tester in your pocket, all you have to do is place food in the device and wait a bit for the results. After two minutes you will know whether the tester detected any levels of gluten in your food.

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sam

Samsung SleepSense is a device that helps improve the quality of your sleep, so essential for our wellbeing, especially for those living busy and stressful lives. With Samsung SleepSense, those of us struggling to sleep can learn how to improve the quality of a night’s rest without having to seek advice from professionals.

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LAMBORGHINI HURACAN SPYDER MOON LAMP It looks like the real moon, yet it is a lamp.

The inspiring Luna lamp is made by Acorn Studio from Taiwan. The lamps are handcrafted. They are made of glass fiber and non-toxic latex. The lamp radiates soft-yellow glow and is available in seven different sizes. It is a design décor that will turn your home into a magic place.

Photo: facebook.com/lunamakesyouhappy

Nike Lunar Bandon 3 are special shoes for golfers.

A completely waterproof upper part with stable cushioning ensures protection against bad weather conditions. The rubber outsole was designed in such a way so as to provide extra traction for slippery surfaces. Nike Power Platform guarantees better balance and smoother weight transfer through your swing.

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Lamborghini Huracan Spyder is a supercar – fast, modern and great looking. Ultralightweight soft top opens at 17 seconds, hiding under a special lid. The top speed of the car is 324 km/h. The new member to the Lamborghini supercar family was presented during the International Motor Show in Frankfurt. The car will debut in the spring 2016.

Many of us dream of a perfectly clean house with just minimum effort on our part. Now you can have it all with iRobot Roomba 980, which will not only clean your floors but also learn to navigate through your home. The device is super smart and connected to an iRobot Home mobile app. It also lets you choose custom cleaning preferences and set the cleaning schedule.

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WWW.SHOPPINGMALLEXPERT.COM |

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RETAIL IN MALL It’s everything in retail!

Join us at the first ever retail event created in finding solutions to the real problems faced by retailers operating in malls Why you cannot miss this event An event bringing together retaiers and shopping centres leaders. This event takes a border outlook addressing and finding solutions to the key challenges faced by retailers in shopping centers.

Benefits of conference to delegates • Gauging the key ingredients in choosing the right location for your store • Building strategic alliance between retail agents and retailers • Tackling high rental rates in shopping mall through effective negotiation • Exploring best practices in revenue sharing model • Optimising leasing and tenant partnership

Who should attend • Retail Owners • Retail Directors • Brand Partners • Store Development Directors • Real Estate & Expansion Directors • Head of Merchandising • Consultants • Architects & Designers • Leasing & Marketing Directors • Property Developers

6th - 7th April 2016, Goodwood Park Hotel, Singapore

6 t h A nn u a l

Be part of Asia’s largest Shopping Mall Event of the year!

Key Benefits of Attending

Past Event Testimonials

• Maximising the full potential of your shopping mall development • Transforming malls into a lifestyle destination • Re-Evaluating marketing tools to bring out the best of your malls and to drive footfalls • Grasping the technicalities in effective leasing and tenant engagements • Staying ahead of game: Riding on the future trends and concepts in shaping the shopping mall industry • Uniting shopping mall professionals with retailers for new business opportunities

“Meaningful experience for my first Truevents conference.”

Mihlgrace M. Samonteza, Ayala Land, Inc., Philippines “Overall, well done on the event and topics presented.”

Kristin Lee Poh Lian, Resort World Genting, Malaysia “Overall nice experience and good that the organiser arranged for quick networking session during the talks. Conducive environment and good mix of speakers.”

Jane Teo, Frasers Centrepoint Asset Management Ltd, Singapore “Very educational good for networking for this event like classroom set-up to learn.”

Miranda Ylp, Macau Legend Development Ltd

For inquir y, contact: Karen Leong Tel: +603-2775 0000 (ext 510) Email: karenl@trueventus.com

2016 KE YNOT E SPE AKE R

REGISTRATION NOW OPEN!

KAREN KATZ CEO AND PRESIDENT, NEIMAN MARCUS GROUP

14 EDUCATION SESSIONS • ALL NEW SPEAKERS Registration is now open for GlobalShop, the retail design community’s largest annual store design, merchandising, and shopper marketing trade show and conference. At GlobalShop you can discover new products, attend educational sessions, and benefit from both scheduled and impromptu visits with peers,

THE EVOLVING STYLE OF RETAIL

partners, suppliers, colleagues, and friends.

M A RCH 2 3 - 2 5 , 20 1 6 M A N D A L AY BAY — LA S V E GA S S E E T HE L I G HT AT GLO B A LSHO P.O R G

All proceeds benefit

LEAVE KNOWING

COME WONDERING

SPONSORED BY: PRESENTED BY:

.

I N C O O P E R AT I O N W I T H :

PRODUCED BY:

THE GLOBAL ASSOCIATION FOR MARKETING AT RETAIL

THE MOST INTERESTING

MAGAZINE describing the development of shopping centers and retail chains on 5 continents

ADVERTISE NOW! Interviews with key representatives of retail sector on an international scale,

An online version read by managing directors of shopping centres and retail chains around the world,

Distribution at the most important international retail events in the second quarter of 2016.

Contact: Klaudia Stanecka: k.stanecka@shoppingmallexpert.com for an advertising strategy that meets your needs!