Retail Market Study 2012 - Full Version

4th Edition www.retail-study.com

CHF 750.- SWITZERLAND EUROPE EUR 625.WORLD US$ 785.-

locationgroup research

www.location.ch

Retail Market Study 2012

Chronic: 10 years Bahnhofstrasse The Bahnhofstrasse in retrospect of the new additions and changes of the past 10 years

Key Money 14 Million Pound in London, 24 Million Euro in Milan and 50 Million Dollar in New York

Expansion Strategies Victoria's Secret comes to Europe, Salvatore Ferragamo on expansion course, Christian Louboutin with a global roll-out

Investment Market Highest demand of the last 20 years for retail properties and unknown rental income increase opportunities

International Premiere For the first time the most important 850 retailers, 600 high streets and 450 shopping centers have been analyzed

locationgroup research

Retail Market Study 2012

4

locationgroup research | Retail Market Study 2012

Table of Contents

Preface › Page 9

I

01

Europe integrated › Page 10

02 03 04 05 06 07 08 09 10 11 12 13 14 15

Swiss retail market changes › Page 11

Zurich registers record rents and the highest demand from retailers › Page 14 Geneva – a major focus for all jewellery and watch retailers › Page 36 Basel with Switzerland‘s largest Apple store › Page 42

Bern, cell phones and women’s fashions supplant an organic supermarket › Page 46

Lausanne, second only to Zurich when it comes to number of shopping streets › Page 49 Winterthur’s businesses hurt by the strong Swiss franc › Page 51

St. Gallen, the new generation makes an important decision on Multergasse › Page 54 Lucerne, Bucherer – the world’s top watch boutique › Page 56 Lugano - small but oh so comely › Page 60 Biel, a city with great potential › Page 62

Department stores, Railcity and airport shopping have all scored the greatest success in Zurich › Page 64 Swiss Shopping malls prepare for the future › Page 69 Swiss Merger & Acquisitions › Page78

16

Switerland‘s highest-demand investment market of the past two decades › Page 80

17

Germany – a major focus of domestic and international retailers › Page 84

18 19 20 21 22 23 24 25 26 27 28 29

Berlin with a renaissance in Charlottenburg – and how › Page 89

Munich, Forever 21 to pay annual rent amounting to 7,8 million euros › Page 97 Hamburg, Bottega Veneta & Burberry with new locations › Page 102 Cologne, Bershka opens second German flagship store › Page 105

Frankfurt, Zara Home And H&M Home opened in Frankfurt › Page 110

Stuttgart, ECE in search of a parking lots at the main station › Page 112

Düsseldorf, Abercrombie & Fitch – 100 male fashion models on Königsallee › Page 116

Dortmund with an exciting autumn to look back on › Page 120 Dresden with Apple & Hollister debuts › Page 122

Leipzig - rapid development, unmatched by any other city in Eastern Germany › Page 124 German real estate investments - the biggest deals › Page 125

M&A , are fashion deals set to increase or decrease in Germany over the course of 2012? › Page 126

30

High-growth for shopping malls and department stores › Page 127

31

Austria with new Anglo-american retailers › Page 131

32 33 34 35

Vienna‘s Golden „U“ with new luxury retailers › Page 132

Austria‘s new openings - Forever 21 takes Vienna by storm › Page 133

Austrian investment market news - Kaufhaus Tyrol wins award › Page 138

G3 Shopping Centre in Gerasdorf - a recently realised out-of-town shopping mall › Page 140

36

Austrian M&A Deals - Don Gil is no more › Page 144

37

London, Forever 21 pays record 17 million euros key money › Page 147

38 39 40 41

Brussels with seventh European Abercrombie & Fitch › Page 166 Antwerp new with Moncler und Jimmy Choo › Page 169 Amsterdam, P.C. Hofstraat is the luxury mile › Page 172

Paris, Moynat – a stroke of genius by Bernard Arnault › Page178

locationgroup research | Retail Market Study 2012

5

Table of Contents

42 43 44

Madrid with third Abercrombie & Fitch in Europe › Page 190 Barcelona, Apple debut at Passeo de Gracia › Page 196

Milan, Prada pays 24 million euros key money for Galleria Vittorio Emanuele II space › Page 201

45

Rome with new Louis Vuitton Maison › Page 210

46

Oslo with world’s biggest Ikea presumably in 2014 › Page 216

47 48

Stockholm with many newcomers on Biblioteksgatan › Page 218

Helsinki with new openings at Aleksanterinkatu, Kluuvi and Kämp Galleria › Page 222

49

Copenhagen new with Lanvin and Moncler on Strøget‘s Østergade › Page 224

50

Warsaw with new opening of Wolf Bracka Luxury Department Store › Page 227

51 52 53 54 55

Prague, Tiffany opened opposite Gucci › Page 232

Budapest, Andrássy út - the most important shopping street in the “Paris of the East” › Page 237 Bucharest new with Burberry, Gucci and H&M › Page 239

Moscow, Salvatore Ferragamo with first men’s mono-brand store › Page 244 Zagreb with superb luxury shopping in the centre › Page 253

56

Belgrade new with Armani, Burberry und Fly London › Page 256

Special: Luxury European holiday resorts › Page 262

II

57

Istanbul - Nistansi district: Particularly popular with Turkish jet-setters › Page 275

58 59 60 61

Tel Aviv, American Eagle Outfitters and Forever 21 new arrivals at Azrieli Mall › Page 281 Beirut, Rue Verdun – one of Beirut’s most renowned shopping streets › Page 284

Dubai – Rolls Royce’s Spirit of Ecstasy celebrates its centenary in Dubai › Page 286 Abu Dhabi - Mushrif Mall opened with 200 stores › Page 292

62

Riyadh - Christian Louboutin opens first Saudi store in Riyadh › Page 296

III

63

Casablanca, Morocco Mall opened with great success › Page 303

64 65 66 67 68 69

Marrakech with American Eagle debut › Page 305

Algier with new Lacoste and Starbucks stores › Page 307

Kairo- American Eagle, Gap and Marks & Spencer debut in Cairo › Page 308 Accra, Accra Mall - West Africa’s most modern shopping mall › Page 312 Lagos, Gildo Zegna’s eyes on Nigeria as emerging market › Page 315

Johannesburg, new expansion at Sandton City Nelson Mandela Mall › Page 319

70

Capetown’s Canal Walk: The largest shopping mall in the Southern Hemisphere › Page 323

6

locationgroup research | Retail Market Study 2012

Table of Contents

IV

71

New-Delhi, Bottega Veneta, Damiani und Canali debut at Oberoi Gurgaon Hotel › Page 329

72 73 74 75 76 77 78 79 80 81 82 83 84 85 86

Mumbai’s 150,000 square metre Phoenix Market City mall opens › Page 334 Hanoi, Parkson department store opens in skyscraper › Page 340

Ho Chi Minh City, the new Rex luxury hotel & shopping mall › Page 348 Bangkok, Shopping malls are shopaholic‘s paradise › Page 351

Kuala Lumpur, Starhill Gallery listed as Asia‘s most beautiful shopping malls › Page 356

Singapore, Louis Vuitton opened the chain’s largest store on the water in Singapore › Page 360 Jakarta, 12 malls bigger than 100,000 sqm total space › Page 364

Macau, Wynn Macau with best expamples for haute couture › Page 368

Hong Kong, Abercrombie & Fitch wins central cistrict cpace for brand’s Hong Kong debut › Page 372 Taipei, Luxury brands to expand in Taiwan › Page 378

Manila, Uniqlo - Japan’s leader of casual clothes is coming to Manila › Page 380

Shanghai, Louis Vuitton marks the 20th anniversary of its presence in the Chinese market › Page 385 Seoul, Uniqlo registers sales of 1,3 million euros on opening day › Page 395

Beijing, Season’s Place Mall features over 600 stores, most of them luxury brands › Page 399

Tokyo, at ten million yen per square metre, Ginza real estate is the priciest in Japan › Page 407

87

Sydney, Zara debuts, while Apple opens its 11th Australian store › Page 417

88

Melbourne, British cult retailer TopShop makes Australian debut › Page 423

V

89 90 91 92 93 94 95

Toronto, Max Mara and Michael Kors opening in Bloor Street › Page 429

New York, Jeff Sutton paid Escada 25 million dollars to vacate the store › Page 433 Las Vegas with biggest H&M worldwide on 5,000 sqaure meters › Page 451 Los Angeles, hot new opening - Lanvin lands on Rodeo Drive › Page 456

Mexico-City, luxury street Avenida Presidente Masaryk established › Page 461 Sao Paulo, Iguatemi - best shopping location in Latin America › Page 466 Buenos Airos, luxury mile Avenida Alvear of great interest › Page 470

VI M&A › Page 476

Price and wages › Page 480

Shopping center development › Page 484

Most Expensive Retail Locations Worldwide 2011 › Page 487 Center and Streets › Page 491

Retailer› Page 492

Sources › Page 494

locationgroup research | Retail Market Study 2012

7

Publisher: LOCATION GROUP, Löwenstrasse 43, CH-8001 Zurich T +41 (0)44 225 95 00, F +41 (0)44 225 95 01, http://www.location.ch LOCATION RETAIL AG, http://www.locationretail.com LOCATION LUXURY AG, http://www.locationluxury.com LOCATION INVESTMENT AG, http://www.locationinvestment.com ELOCATIONS.COM Layout: Gravis, Konstanz, http://www.gravis-bodensee.de Photos: Jan Deichner, Hamburg, http://www.deichner.de Cover picture: Westfield Stratford City, London Editorial: ConText Communication, http://www.context-friends.de Print: Druckerei Holzer, http://www.druckerei-holzer.de Edition: 7 000 copies Press date: 16th January 2012 Price: The purchase price is 750 CHF (plus VAT) Orders: Directly from your local consultant, by fax +41 (0)44 225 95 01 or e-mail at research@location.ch Disclaimer: This document was compiled by the LOCATION GROUP Research Team and is not the result of our location or financial analyses. This publication is for information purposes only and was compiled on the basis of accessible information. The ideas and opinions expressed herein are those of the LOCATION GROUP Research Team at the time of printing (and are subject to change without notice). This publication may be quoted provided it is cited as a source. We ask for a sample copy.

Copyright © 2012: LOCATION (HOLDING) AG and/or it affiliates – all rights reserved. The information contained in this publication is based on accessible sources that we consider to be reliable. We make no guarantee for the correctness and completeness of this information. We accept no liability for the use of this report or its contents.

Visit us on the Internet at: http://research.location.ch.

8

locationgroup research | Retail Market Study 2012

Foreword As in the past, this LOCATION GROUP market study provides you with valuable information concerning the key trends and developments in the worldwide retail sector.

For this report, the Location Group team trained its sights on the choicest locations, best frequented centrally located retail locations, and top-drawer shopping malls and complexes worldwide that offer the greatest sales potential. Last year’s report focused on Switzerland, Germany, and Austria, as well as New York, Tokyo, Beijing, Shanghai, Hong Kong, Paris, London, Milan, and Rome. The excellent feedback and numerous requests we received on the 2011 report prompted us to include in our study all notable international cities that are in the forefront of fashion and design.

goals. This situation is pushing rents higher in many cities, much to the delight of owners and developers of prime retail locations.

LOCATION GROUP specialises in site consulting and development, and as an expert partner of property owners and retailers has been doing business successfully for many years now.

We also paid visits to the world’s top shopping streets in cities such as Buenos Aires, Sao Paulo, Los Angeles, Las Vegas, New York, Hanoi, Shanghai, and Beijing, and have documented them via our Location TV station. The highlight of this documentation was undoubtedly our interview with the charismatic CEO of Hublot, JeanClaude Biver, who received us in his new Paris and London boutiques.

The continuing turbulence in the world’s financial markets, as well as growing sovereign debt in a number of states, are having a detrimental impact on the retail sector, among others. Moreover, globalisation in the guise of new and inventive retail formats from the US and Asia is placing increasing pressure on European retailers. The cities that are currently most promising for expansion are London, Paris, and Berlin.

The expansion of European luxury retailers into Asian and South American markets is still going strong – an evolution driven by rising purchasing power, exponential economic growth, and substantial revenue and profit growth, Hence, the appetite of international retail chains for prime retail locations remains as voracious as ever. Top-drawer store locations are a vanishing species and are much sought-after by many retailers who need these venues to meet their international expansion

locationgroup research | Retail Market Study 2012

We here at Location Group hope that you will find this year’s report informative and enjoyable.

Marc-Christian Riebe CEO, President and Founder

9

01 Europe integrated .

European integration has made giant economic and political strides. In particular, the economies of the Eastern European accession states Poland, Czech Republic, Hungary and Slovakia are displaying dynamic growth – a trend that is spurring consumer demand. However, according to the International Council of Shopping Centres (ICSC), in the Western European states of Belgium, Germany, France, Great Britain, Italy, the Netherlands, Austria, Portugal, and Spain, in the 1990s there was also an around 50 % increase in retailer entries into new national markets comparative to the 1980s.

Virtually every major European player has now an expansion department, and the practices of myriad top European retailers show that the retail sector is becoming more international in nature than ever.

However, success is not always assured or immediate, and only those formulas that are successful are amenable to replication.

The retail ventures of major players such as Karstadt in France, and Marks & Spencer, Gap and Walmart in Germany, as well as Esprit and KiK in Scandinavia, have fallen flat on their faces at one time or another.

EU27: Retail maturity level

Although the retail sector has always existed in the 27 EU member states, these sectors can be subdivided into various classes and stages of maturity. The position of the large-supermarket sector is a reliable index of the maturity of a given EU member state’s retail sector. Whereas the retail sector is a highly significant factor in relatively new markets and tends to make life difficult for supermarkets, supermarket sales tend to stagnate in states with saturated and highly developed markets. The market position of discounters is likewise a reliable yardstick of a country’s market maturity since discounters need professionalised processes within their organisations. Discounters are becoming a force increasingly to be reckoned with in Europe.

Another key indicator for the measurement of market maturity is the multi-branch ratio and the closely related factor, the concentration ratio, of a given national retail sector. In some European shopping streets, the multi-branch ratio is nearly 100 % and owner-operated stores have virtually disappeared from the scene since rents are prohibitive for any players except retail chains with deep pockets.

As one would expect, the maturity levels of the retail sectors in the 27 EU states vary greatly, with the maturation process being affected, impeded or spurred by numerous factors. The following graphic shows the varying degrees of maturity of the 27 EU states’ respective retail sectors.

The 27 EU states fall into four retail-sector maturity groups, from which various European “commercial areas” emerge. Moreover, the aforementioned analysis applies across the board despite the differences in sales revenues and economic development in the various states.

GFK purchasing power 2010/2011

10

locationgroup research | Retail Market Study 2012

02 Swiss retail market changes .

Multinational retailers, which were a negligible force in Switzerland only two decades ago, are on the march – a trend that is working to the benefit of consumers.

The Swiss retail sector, which is characterised by tough competition, needs to become more open. A mere 20 years ago, it was smooth sailing for this sector in terms of competition, and the only foreign competition for Switzerland’s 25 largest retailers was the Dutch clothing retailer C&A. But this situation has changed, and an increasing number of international retail chains are looking to obtain a slice of the lucrative Swiss retail pie.

According to a GfK Switzerland study of the Swiss retail market titled Detailhandel Schweiz, “Around 14 % of Switzerland’s 97,8 billion franc in retail sales last year were accounted for by foreign retailers.” Ten years ago, the figure was only 8,6 %, and in 1990 it was nearly zero.

BAK expects the situation to improve somewhat in 2012, particularly in view of their projection that the value of the Swiss franc will level out. According to BAK, nominal and real sales are set to decline by 1 and 0,9% respectively. Statistics released by the Swiss Office of Statistics also point to a decrease in retail sales in 2011.

Nominal sales for January through August were 0,5 % lower than for the same period in 2010 and the tendency is downward for the whole 2011.

Demand for luxury goods still strong However, according to a Bank Vontobel survey of watch, leather goods, and fashion retailers, things look brighter for the high-end retailers on Zurich’s Bahnhofstrasse, most of whom are expecting their best year ever (apart from 2010). According to the study, this result is mainly attributable to Chinese shoppers. “Around 25 % of sales are accounted for by these shoppers,” says analyst René Weber. The figure in 2010 was a “mere” 15 %.

This study mainly concerns itself with the internationalisation of the retail sector, particularly in the non-food domain, where foreign retailers currently hold a 27 % market share. Thus for example, the fashion retail chain Hennes & Mauritz is the market leader in this segment, while Ikea is the top performer in the home furnishing market, and the German-owned Dosenbach-Ochsner Group is making great strides in the shoe sector.

The advent of new market players aside, price wars are becoming more and more intense in the Swiss retail sector, and even the market leaders, Migros and Coop, are feeling the pinch. The largest Swiss retailers have recently begun pursuing a strategy of furiously buying up the foreign competition with the goal of keeping it at bay.

The strength of the Swiss franc has knocked Swiss retail sales for a loop this year According to the economic research organisation BAK Basel, nominal earnings in the Swiss retail sector are set to decline by 1 % this year, the largest decline in 15 years (this forecast was issued in October 2011). The strength of the Swiss franc relative to foreign currencies, BAK says, has driven retail prices down by an average of 2,9 % – and thus to 1993 levels. The consequent real sales growth is put at 2,1 %.

Shopping tourism is also a major downer for Swiss retailers: consumer purchases effected abroad will equate to more than 3 billion franc which is lost to foreign retailers, says BAK. The strength of the Swiss franc is also cutting into foreign tourism and this in turn is having a negative impact on sales.

GfK purchasing power Switzerland locationgroup research | Retail Market Study 2012

11

03 Zurich registers record rents and the highest demand from retailers .

ZURICH is not only Switzerland’s largest city (1,5 million in Zurich proper, 1,66 million in greater Zurich) but also the country’s most important financial and business centre.

A new high of 12,500 franc per square metre has been reached The most recent rental for CHF 12,500 per square metre emphasizes the fact that the sales potential of Bahnhofstrasse – which ranges upward from 100,000 franc to 225,000 franc per square metre – is attracting a growing number of multinational retail chains. A UBS market survey of prices and salaries, as well as similar surveys by Time Magazine, GfK, Bloomberg, Forbes and many others, show that Zurich offers the world’s top purchasing power and net income, and that Zurichers have the world’s highest disposable income. Jewellery and watch retailers in particular are well able to afford store rents on the city’s main shopping street Bahnhofstrasse since Zurich, counts as one of the world’s top three retail locations.

Zurich’s 1,4 kilometre long shopping street Bahnhofstrasse is home to 140 stores with an 87 % multibranch ratio, which means that only 13 % of the street’s retail stores are leased by indepen-

dent businesses. Each day, Bahnhofstrasse is frequented by more than 100,000 persons, and every day more than 400,000 travellers pass through Zurich’s main train station (Hauptbahnhof), which is one of the world’s most frequented train stations with more than 2,915 trains running daily. On completion of the Durchmesserlinie line to Oerlikon in June 2014 and with the underground train station ‘Löwenstrasse’ in operation, it is expected that Zurich’s main train station will be frequented by more than 500,000 persons daily. The train station ‘Löwenstrasse’ will also be home to 37 new stores across 2, 800 square metres of retail space.

A look back at the past decade on Bahnhofstrasse and the outlook for the future A record number of multinational retail chains have opened on Zurich’s Bahnhofstrasse over the past decade. The roster is impressive: opposite the Swiss National Bank is a space formerly occupied by DKNY and Trudie Götz and now by the Salis & Vertes art gallery; Benci Brothers took over from Alfred Day; EFG Bank replaced Auktionshaus Stuker; in 2003, Trudie Götz took over the former Trois Pommes and Leonard stores (700 square metres), right after opening stores in New York and Tokyo; Prada’s flagship store,

Bally Bahnhofstrasse, Zurich

12

locationgroup research | Retail Market Study 2012

Top Ten Retail Locations per Country Rank

2011

Country

City

Location

2010

Rent/sqm/Year

Rent/sqm/Year

CHF

EUR

1

1

USA

New York

5th Avenue

19,882

16,432

2

2

Hong Kong

Hong Kong

Causeway Bay

14,312

11,636

3

3

Switzerland

Zurich

Bahnhofstrasse

12,500

11,412

4

5

UK

London

New Bond Street

9,603

7,808

5

9

Australia

Sydney

Pitt Street Mall

8,778

7,137

6

4

Japan

Tokio

Omotesando

8,770

7,130

7

6

France

Paris

Avenue de Champs-Elysées

8,632

7,018

8

13

Russia

Moscow

Stoleshinkov Lane

8,628

7,015

9

7

Italy

Milan

Via Monte Napoleone

7,783

6,327

10

8

South Korea

Seoul

Myenongdong

5,798

4,714

which was designed by Roberto Baciocchi; the fashion retailer Devernois, which took over the lease of the troubled shoe retailer Charles Jourdan in 2004; Tommy Hilfiger, which took over Moda Parade’s around 500 square metre space a year later; Jimmy Choo, which replaced Saint Phil in 2010; and Loro Piana, which took over the bag retailer Mädler’s store in 2009 and will soon be expanding into the current Marionnaud store.

Most recent changes of hand at Bahnhofstrasse In 2009, the Swatch Group took over the retail premises of PPP Pelz Paradies boutique on Paradeplatz and opened Switzerland’s first Blancpain store. In 2010, on the opposite side of Paradeplatz, Hackett London took over from Mövenpick because Mövenpick considered the rent to increase to 800,000 franc imposed by the landlord (the Zurich-based construction company Steiner) to be prohibitive. After many years of waiting, Hermès managed to persuade the Meister family to give up the lease on their Meister Silber porcelain store three years before the lease expired, and in September 2010 Hermès celebrated the opening of its 400 square metre Swiss flagship store in a building also housing the Zeughauskeller restaurant.

Alfred Escher’s dream comes true In October 2002, after three and a half years of construction, the newly renovated Credit Suisse headquarters on Zurich’s Paradeplatz officially opened right on schedule, at a cost of approximately 80 million franc. In keeping with the building’s heritage, Credit Su-

locationgroup research | Retail Market Study 2012

isse decided to make it a new hub of activity for downtown Zurich.

The building’s crown jewel is its atrium, which was formerly the main hall and is accessible from Bahnhofstrasse, Bärengasse and Paradeplatz. Hence, around 1,000 square metres of the building’s 5,000 square metres have been given over for public use. By returning Paradeplatz Passage to the city and thus to the public, the building has been restored to its state dating back to the period from 1876 to 1900. And thus Alfred Escher’s wish “that this building should help to beautify Zurich and be an adornment to the city, just as its unique train station is” was fulfilled more than just architectonically; the site is now also a key gathering place for Zurichers and throbs with life.

Of the around 300 stores that applied for a lease in the new atrium, only 11 were given the go-ahead to set up their shops there.

The Giorgio Armani and Ermenegildo Zegna boutiques extend over two levels and a combined of 300 square metres. Likewise on the Bahnhofstrasse side is Montblanc, opposite the new Fabric Frontline Silk emporium of “the king of silk” Andi Stutz. Swiss’ office is right next door. Strozzi‘s, which folded after three years, was replaced by Dieter Meier’s Restaurant Bärengasse. In addition, the jewellery retailers Christophe Graber, Bulgari, and La Serlas, which were the only three stores in the Credit Suisse building for more than ten years, reopened. Likewise among the few admitted to the new atrium were Nicole Diem Optik, as well as Bottega Veneta, whose 300 square metre store was remodelled according to plans drawn up by Tomas Maier and William Sofield.

13

Weinberg Bahnhofstrasse, Zurich

Credit Suisse – one of the largest tenants In 2010, Bon Génie Grieder department store leased a portion of its ground-floor space in the building that houses Clariden Leu bank (Switzerland’s oldest private bank and a member of the Credit Suisse Group) to Louis Vuitton in a unique arrangement that interconnects the two stores. Two years earlier, the Italian luxury goods retailer Tod’s took over the former Bally-Doelker space.

New Credit Suisse tenants – Patek Philippe and Breguet In retrospect, one could almost say that it was clear from the getgo that Chronometrie Beyer would get the nod for the former Hermès space. However, this did not prevent the landlord, Credit Suisse, from issuing an invitation to tender, to which more than 100 prominent international retailers responded. In 2011, after almost 12 months of shopfitting, René Beyer opened the world’s fourth Patek Philippe boutique in an around 120 square metre space.

Eight months before, having paid 3,8 million franc in key money to the carpeting retailer Vidal, Breguet celebrated the opening of its boutique in the adjoining space, but at a somewhat less astronomical rent than what its neighbour pays. Here too, many retailers’ hopes of opening a boutique at one of Bahnhofstrasse’s best locations were dashed.

Pedestrian footfall in the city of Zurich (per day in 1,000) 20

14

30

40

Frequenz pro Tag

50

60

70

80+

locationgroup research | Retail Market Study 2012

Paradeplatz Bahnhofstrasse, Zurich

Paul & Shark and Aesop – new Credit Suisse tenants The Paul & Shark boutique is located behind a large glass wall. This remodelled Bahnhofstrasse store is next to Chronometrie Beyer, and is now twice the size of and twice as beautiful as its previous appearance – plus there are twice as many clothes. The space was previously home to Import Parfümerie, whose lease was not renewed. In summer 2012, the Australian cosmetics retailer Aesop will be opening its second Zurich boutique (around 50 square metres) next to Agent Provocateur.

Bulgari Bahnhofstrasse, Zurich locationgroup research | Retail Market Study 2012

15

Credit Suisse Lichthof, Zurich

Bank Julius Bär – retail rent among the highest worldwide Opposite Breguet, the watch company Piaget (a member of the Richemont Group) leases a 150 square metre space from Bank Julius Bär and pays a newly set premium rent amounting to 12,500 franc per square metre, which includes the key money that Piaget paid to Blumen Krämer. In the same building, Gaydoul Group relinquished its Navyboot store to its affiliate Fogal, which doubled its lingerie retail space to around 100 square metres.

A jeweller that used to park its Ferrari right in front of its Bahnhofstrasse boutique Ziegler, which took over from Bulgari in 2002 and subsequently sold its lease to the Genevabased jewellery and watch retailer Chopard, was known for having its Ferrari with a Monte Carlo license plate parked in front of its store. The parties have agreed to keep the purchase price undisclosed.

Louis Vuitton Bahnhofstrasse, Zurich

16

locationgroup research | Retail Market Study 2012

Clariden Leu Bahnhofstrasse, Zurich

Marionnaud, Zett Meyer, IWC, Hugo Boss and Burberry Back in 2002, Parfümerie Alrodo (renamed to Marionnaud today) bought the eyewear retailer Nicole Diems’s lease of 24 years’ standing for around 1 million franc. In 2005, Zett Meyer got the nod for the former watch boutique P. & R. Weill next door and proceeded to open a store under its own name and as a partner of an IWC Schaffhausen watch boutique. At around the same time, Hugo Boss took over two spaces next to the Bruno Magli shoe boutique, subsequently opening in a roughly 500 square metre space. Kitty-corner to this store, Burberry got the nod for the former Louis Vuitton boutique (which was registering the world’s second-highest per square metre sales at the time) and paid a record of 4,5 million franc in key money.

Sturzenegger and Rosenthal exit the scene Hardly anyone remembers the Rosenthal store, whose space was taken over by the jewellery retailer Cartier (likewise a member of the Richemont Group) in 2008 for more than 1 million franc in key money. One year earlier, Wolford bought the lease of the thenstruggling fashion house Yves Saint Laurent. After closing its doors and abandoning all of its Swiss activities in 2004, the fashion retailer Sturzenegger ceded its lease to the Italian denim retailer Diesel. The property was subsequently sold to a private investor for more than 40 million franc, or more than 30 times the building’s annual rent income. In November 2005, Massimo Dutti outrivaled Thalia and s.Oliver for the 550 square metre space in the former main hall of the erstwhile Schweizer Volksbank location.

Development of retail rents, Bahnhofstrasse Zurich

CHF 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 2001

2002

2003

locationgroup research | Retail Market Study 2012

2004

2005

2006

2007

2008

2009

2010

2011

17

Changes Bahnhofstrasse Zurich 2002 – 2012

92

H&M

58

Longchamp

52

Omega (Gübelin)

Diesel

Starbucks Amavita GaleniCare Dosenbach

Fein Kaller

83

HN

81

HO

84

FS

TR

86

AS

82

80

SE 79

76

74

70

73

71

SSE

67

STRA SIHL

US

Swarovski

Claire's

64

W

62

EG

58

56

50

54 52

46

48

MITTLERE BAHNHOFSTRASSE

69 a 69

IST

RA

R

66

75

Manor

SSE

72

TER

Globus

77

78

N EN

S

88

GU

92

AU

BA

65

63

55

57

61

53

4

ASSE

94

NSTR

87

RE

ASSE

TE

FÜSSLISTRASSE

89

102 100 98

BACHG

91

UN

OETEN

BA

93

104 106

RASSE

HN

HO

108

URANIAST

FP

LA

TZ

Mango

Coop

Jemoli Sunrise Benetton Ex Libris

Apple Massimo Dutti

Bonita

18

93

H&M Six Mobilezone

87

Manor

75

Esprit

69a

Navyboot 69

locationgroup research | Retail Market Study 2012

Be

48

38

Fogal, Piaget

30

Louis Vuitton

12

Alfred Day Prada EFG Bank

Blancpain

Tommy Hilfiger

Tod's Hermès

E

Jimmy Choo

Burberry

ASS

Chopard

STR

Loro Piana

6

44

39

38

PET ST.

36

33 37 35

34

31

OB

30

23

27

29

DE RA PA TZ A PL

-

BAH ERE 17

21

NHO

12

14

RA FST

BÖR

10

SSE

3

1

9

13

25

Ä R E N G A SS E

PELIK

A

45

42

40

26

28

32

24

18

20

22

16

B

47

28a

ERS

STI

NE

TRA

RG

SSE

ASS

E

SEN

ZÜRICHSEE

ernie's

Hackett London

Salis & Vertes

Devernois

Patek Philippe/ Breguet Marionnaud Zett Meyer/ IWC Schaffhausen

65

Cartier

45

locationgroup research | Retail Market Study 2012

Hugo Boss

39

Bulgari Bottega Veneta Montblanc

27-29

23-25 Armani Ermenegildo Zegna

19

Fogal & Piaget Bahnhofstrasse, Zurich

Omega – sales amounting to more than 100,000 franc per square metre Back in December 2000, the Swatch Group had the foresight to open (together with the jeweller Gübelin) the world’s first Omega flagship store at the corner of Kuttelgasse and opposite to Bucherer, which will be remodelled in the near future. The total revenue of 10 million franc expected at the time have since been greatly exceeded: the store now racks up sales amounting to more than 100,000 franc per square metre.

The traditional businesses Pelz AG, Mode Madame, Weber-Strickler, travel agency Tui and Séquin-Dormann exit the scene Thanks to the efforts of the family that owns the building, Café Ernst, which is located on Füsslistrasse near the Coop department store, was able to stay on. However, in order for the property to be placed on a viable economic footing, in the spring of 2009 it became necessary for the owners to terminate the lease of Pelz AG (which had been doing business on Bahnhofstrasse since 1942), because Sunrise was willing to pay 400 % higher annual rent amounting to 585,000 franc for the 70 square metre space. Next door, Mode Madame sold its lease to Benetton for a record sum and relocated to Rennweg.

The building owners, who also operate the eponymous Landolt-Arbenz store, refused to renew the lease of what was then the most successful store of the young-fashion retail chain Orsay, because the boutique did not fit with the building’s overall image.

The space was eventually leased to Bernie’s for an annual rent amounting to 1,8 million franc, but the store folded in November after only one year of operation.

Opposite this space, the French bag and accessory retailer Longchamp opened its first Swiss store in September 2005 in an around 120 square metre space formerly occupied by the more than 100 years old perfume store Weber-Strickler.

Hugo Boss & Chanel Bahnhofstrasse, Zurich

20

locationgroup research | Retail Market Study 2012

Cartier Bahnhofstrasse, Zurich

In September 2011, just beyond the intersection with Sihlstrasse and having swapped spaces with Tui on Limmatquai, Navyboot celebrated the opening of a 120 square metre sales floor, twice the size of its former store.

In December 2004, Esprit took over the around 700 square metre space formerly occupied by the homeware retailer Séquin-Dormann. The family that owned the property had previously sold it to a private investor for more than 25 times the annual rent.

the store to increase its space by 3,000 square metres to 31,100 square metres. Zara now occupies 2 200 square metres of this space, its first store in Zurich. The sporting goods retailer Nike doubled its space to 800 square metres, making this store one of the company’s three largest worldwide. Jelmoli spent 45 million franc on the remodelling and expansion project, and invested an additional 85 franc million in the building between 2005 and 2008.

Jelmoli – substantial investment in remodelling Among the major undertakings were, in 2004, constructions in the inner courtyard of the Jelmoli department store, which enabled

By 2012, Jelmoli will have ploughed an additional 40 million franc into a two-year expansion and remodelling project. The project manager Hanspeter Grüninger will not be able to see the project through to completion and will be replaced in the spring of 2012 by former Grieder CEO Franco Savastano. The goal was to prepa-

Diesel Bahnhofstrasse, Zurich

Omega Bahnhofstrasse, Zurich

locationgroup research | Retail Market Study 2012

21

re the company for the future and allow for transition from the premium to the luxury products segment. The project took its cue from department stores such as Rinascente, Selfridges, Harrods, KaDeWe and Oberpollinger.

What’s up with Zurich’s Manor department store?

As from 2016, there will no longer be a Manor department store on Zurich’s Bahnhofstrasse because the property owner, Swiss Life, has been evaluating a new usage concept for the past two years and has given all of the building’s tenants except Apple their walking papers. With aggregate annual sales of only 105 franc million and annual per square metre sales of only 9,900 franc, rent amounting to more than 15 million franc is simply prohibitive. Subdividing the building’s 10,000 square metres of retail space would presumably enable the property to generate leases whose value far exceeds 20 million franc. For comparison: Manor’s neighbour and competitor Globus registers sales in excess of 180 million franc in 7,500 square metres of retail space – the equivalent of 24,000 franc per square metre sales. If the property were not owned by the Migros Group, the going rates would generate more than 15 million franc a year in rental income for the building.

Apple – clocking in at 225,000 franc per square metre sales In June 2008, Apple was granted a building permit to shopfit the former Benetton boutique and completed the project one year later. In April 2009, the company opened what was originally planned as its second European Apple Store with 70 employees.

The store is Apple’s Swiss flagship store and a veritable cash cow that informed sources say registered sales of 95 million franc in 2010 for a growth rate of more than 200 %. The store’s per square metre productivity, which is generated by more than 400 employees, is more than 15 times higher than that of the average retail store in a comparable location. But the store’s business volume has outgrown its “merely” 420 square metres of retail space. For comparison: the Apple Store in Hamburg has 2,000 square metres of space. “Nowadays we’d never open a store as small as the one in Zurich,” said an Apple manager.

Opening party Navyboot Bahnhofstrasse, Zurich

22

locationgroup research | Retail Market Study 2012

Ex Libris replaces Giga Music Company A 300 square metre space where Musik Hug and Giga Music Company had been selling sheet music and instruments since the spring of 2004 is now occupied by the top-performing branch of the bookseller Ex Libris, which is a member of the Migros Group.

But it is highly unlikely that the landlord, Swiss Life, will extend this lease, or that of the neighbouring Marionnaud or McDonald’s, beyond 2015.

Planet Hollywood in, Mango out In 2000, Mango opened its 750 square metre Swiss flagship store (which was still operated at the time by the franchisee Schild) opposite to Ex Libris. The world’s third largest Mango store after Barcelona and Paris at the time, the space has since been taken over by Planet Hollywood. Sylvester Stallone attended the store’s opening, an event that was accompanied by abundant razzmatazz and where Mr. Stallone also left his handprint. So many people thronged to the event that tram service on Bahnhofstrasse had to be suspended.

Esprit Bahnhofstrasse, Zurich

Jelmoli Bahnhofstrasse, Zurich locationgroup research | Retail Market Study 2012

23

The men’s clothing store Fein-Kaller takes its final bow For reasons of divorce, in 2006 the fourthgeneration owner of the men’s clothing retailer Fein-Kaller was forced to sell the company’s building at a choice Bahnhofstrasse location to a private Berlin investor.

Owing to high demand, the price for such a property has risen to more than 70 million franc over the past five years.

Fein-Kaller shut down all of its stores in the German- and Italian-speaking part of Switzerland as at July 2011 and sold off all of its stores. As at the date this report went to press, it was unclear who would be moving into their Bahnhofstrasse store, which has been vacant for six months.

Manor Bahnhofstrasse, Zurich

Globus Usteristrasse/Pestalozziwiese, Zurich

24

locationgroup research | Retail Market Study 2012

Apple Store iPad 2 launch Bahnhofstrasse, Zurich

H&M – three stores on Bahnhofstrasse The Swedish fashion retailer H&M took over the space in the Beatenhof building that was long home to Messer Dolmetsch and was then leased (most recently) to the accessory and watch retail chain Fossil, and prior to that to Accessorize and Ex Libris. The property was sold to UBS Fund Management in the late 1990s following divestment of the fashion activities of the Moro-Nordmann family.

However, the s.Oliver franchisee was unable to meet the ambitious objectives set by the company, whose brand was completely unknown in Switzerland at the time. This development afforded H&M the opportunity to open its third store on Bahnhofstrasse.

The Finck family – a progressive rent policy Although the new owners of the two buildings that are home to the Götte Optik and Yves Rocher stores could easily have quintupled these tenants’ rent, it was important to the family of German industrialist proprietors to maintain the building’s tradition.

Thus the Götte Optik eyewear store, which has been at this location for two decades, is now assured of at least another decade of tenancy on Bahnhofstrasse.

Hotel St. Gotthard – optimized ground floor space Cafe St. Gotthard on Bahnhofstrasse closed its doors at the end of 2003. The Manz family, which owns the property, optimized the space occupied by the former cafe (whose operation was no longer economically viable) by leasing it to the mobile phone retailer Mobilezone, the accessory retailer Six Shop, and the young-fashion retail chain s.Oliver.

H&M Bahnhofstrasse, Zurich locationgroup research | Retail Market Study 2012

25

Swiss Life buys Café Balthasar’s lease Two other traditional businesses across from Hotel St. Gotthard closed their doors in January 2011: the shoe store Pasito and the adjoining Café Balthazar. Pasito had been at its Bahnhofstrasse location for 28 years, originally under the name Pedrino, and since 1999 Pasito. The cafe had likewise been in the same location for around three decades and would have liked to remain there, according to Pasito CEO Werner Aerni. But he was unable to afford the rent, which had been approximately tripled, despite the fact that the landlord, Swisslife, was somewhat accommodating concerning the price. The Café Balthazar lease was not up for renewal for another two years, but Swisslife paid the cafe owner Michel Péclard key money whose amount neither he nor Swisslife were willing to disclose. “As is customary in such cases, it probably amounted to more than a million,” says the newspaper Tagesanzeiger. The space will be taken over in the spring of 2012 by the shoe retailer Dosenbach.

Sammet Apotheke taken over by a retail chain after 123 years of independent operation Founded in 1886 as Central Apotheke, sold to the Sammet family in 1919, and run by the Flühmann family since 1984, the final owner of Sammet Apotheke was ultimately unable to refuse the purchase price offered by GaleniCare (one of many offers received), in spring 2009 and sold the pharmacy right after the family that owned the building sold it for 30 times the annual rent. After a lengthy renovation phase, Amavita Apotheke reopened in spring 2011.

Leder Locher, Claire’s and Hotel Schweizerhof After the Zurich bag and leather goods retailer Leder Locher closed its doors in 2006, the owner of Hotel Schweizerhof put the space up for rent so as to be able to obtain the then-going rate of 8,000 franc

per square metre per year, and the German women’s fashion retail chain, Bonita, was awarded the lease. In late December 2011, the American fashion jewellery retailer Claire’s extended the lease on the best of its 3,000 stores worldwide and will thus be able to continue registering sales in excess of 40 000 franc per square metre, the highest registered by the company. In 2003, Claire’s acquired more than 50 locations of the Bijoux One retail chain, including the company’s top performing stores.

Starbucks opens its 16th Zurich store After more than three years of negotiations with L’Entrecote restaurant and the private-sector owners of the property, Starbucks celebrated the long-awaited opening of its 16th Zurich store (whose second floor is sublet to the travel agency Sta Travel) on Bahnhofstrasse next to McDonald’s.

Rennweg, Kuttelgasse, Augustinergasse, Strehl- and Storchengasse – locations very much in demand Rennweg is one of Zurich’s most frequented streets, after Bahnhofstrasse. Thanks to roadtraffic reduction measures, the street now boasts 30,000 passers-by daily during the week and up to 50,000 on Saturdays. Consequently, 16 new stores opened on Rennweg over the past six years. With stores renting for 4,000 franc per square metre, Rennweg is an excellent location parallel to Bahnhofstrasse CBRE obtains 3 million in key money for former Fortis Bank location In the spring of 2011, Privatbank Wegelin went into operation in a 1 400 square metre space formerly leased by Fortis Bank (now BNP Paribas) for an annual rent amounting to around 1.2 million franc.

The realtor CBRE, for which the property was an exclusive listing, obtained 3 million franc in key money for BNP.

Bahnhofstrasse Zurich

26

locationgroup research | Retail Market Study 2012

Bäckerei Kleiner bakery closes Since late November 2011, the 70 square metre space on Kuttelgasse that was both the founding and flagship location of Bäckerei Kleiner bakery has been home to Lele Pyp shoe boutique, which was established by the Brazil-born-and-raised siblings Stephanie, Samantha and Bernardo Müller-Knab. The bakery was no longer able to afford the rent, which had doubled. Across the way, the shoe boutique L’Idea now occupies the 35 square metre ground floor space that was formerly home to Boutique Felice.

Top retail rents in prime locations in Zurich*

CHF/sqm per year

EUR/sqm per month

10,256

643

4,400

276

Storchengasse

3,350

210

Limmatquai

3,320

208

Bahnofstrasse Rennweg

Löwenstrasse

3,180

199

Niederdorfstrasse

3,100

194

Strehlgasse

2,850

179

Bellevue/Stadelhofen

2,200

138

Bahnhofplatz Zurich

Burlington to open a store on Rennweg in a year from now The German fashion retailer Burlington will be taking over the entirety of the building’s retail space (120 square metres on the ground floor, 80 in the basement) across the way from Hotel Widder, in a building where Ovale, Big Secret, and Carat still have stores.

* 150 – 200 sqm retail space

Rennweg Zurich locationgroup research | Retail Market Study 2012

27

ten fresh wind in its sails in a space that extends over five floors. On Weinplatz, Naomi Boutique owner Hans-Peter Gächter sold his lease for around half a million Swiss francs to the family-internal successor of the jeweller Zett-Meyer, Adrien Bindella. Mr. Bindella is now operating the 85 square metre Pomellato Boutique as a franchisee.

Hotel Widder Rennweg, Zurich

Four new jewellery stores on Strehlgasse, Storchengasse and Weinplatz Sundrani Fine Jewellery, Sueños, Robert Vogelsang and Pomellato each opened a store over the course of 2011. Karima Sundrani was awarded the 100 square metre space of its predecessor, the jeweller Max Affolter, who had maintained his studio at this location for decades. Next door, Arlette Kiefer & Kaspar Rüegg opened its doors in a space that had formerly sold Grob bathtubs. Across the way Sueños, the establishment that took over from the men’s outfitter Mettler, relinquished its unprofitable store and focuses now solely on its Löwenstrasse store, where Robert Vogelsang has now got-

400 million franc Madoff victim invests in Boutique; Dolce & Gabbana opens second store The wealth manager Jakob Rauber was in the Swiss media spotlight a couple of years back by virtue of his flagship Auriga funds having gone down the drain in the wake of the Madoff meltdown. The two funds affected were Auriga International and Auriga Alternative Strategies. The former, which held more than 400 million franc in client funds, had invested the entirety of its capital in Bernard Madoff instruments. Mr. Rauber took over the space in June 2011, where he now operates Coup d‘œil, a shoe boutique that features John Galliano and Roberto Cavalli footwear in a 70 square metre space that was formerly home to Spitzbarth jewellers. In October 2011, in the Schipfe district, Trudie Götz opened her second Dolce & Gabbana store opposite the city hall on Limmatquai.

Newcomers – Christian Louboutin and Mulberry In early December 2011, Christian Louboutin opened his first store in a German-speaking area on Wühre, which is near Storchengasse on the banks of the Limmat River. Mr. Louboutin and Boutique Ma-

New Burlington Location Rennweg, Zurich

28

locationgroup research | Retail Market Study 2012

Jewellers Sueños & Sundrani Strehlgasse, Zurich

nuele Jaquet negotiated a key-money deal and agreed to keep the amount confidential. In January 2012, at a location just 30 metres away on Storchengasse, the British bag and leather goods retailer Mulberry will be taking over the split-level 150 square metre Trois Pommes space. Trudie Götz relinquished the space, two years before the lease expired, to the Frankfurt-based property owner.

Three years earlier, the German high-end fashion house Escada had been on the point of moving into the space, but then cancelled the lease. On busy summer days, anywhere from 15,000 to 20,000 persons frequent this area, where rents have remained steady at around 3,000 franc per square metre.

Emilio Pucci, Michael Kors, Hervé Léger, Barbara Bui and Victoria Beckham Although these retailers have not got stores of their own in Zurich, their products are available in the new Boutique Bloom’s opposite Gucci on Poststrasse in a 100 square metre space where Tamedia used to sell their magazines and newspapers. At the time this report went to press, it had not been announced who will be taking over the former Intercoiffeur space (150 square metres), which has been vacant for more than a year.

Swiss Casinos gets the nod for a Zurich casino licence The 12th June 2011 decision by the Eidgenössische Spielbankenkommission (ESBK) (Swiss casino commission) as to which of the five proposals for the hotly contested class A concession for operation of a Grand Casino in Zurich would get the nod was awaited with baited breath. In the event, ESBK opted for Swiss Casinos Zurich AG, which will be operating a twofloor casino with a rooftop restaurant on Sihlstrasse in the former Ober department store building. Thanks to the commission’s decision, Hans Ulrich Rihs, one of the three founders of the hearing aid manufacturer Sonova, has two causes for celebration. In 2010, he acquired a 98 % share in Swiss Casinos Holding AG, which won the franchise. Mr. Rihs intends to invest around 70 million franc in the casino in the run-up to its opening in the fall of 2011 and has budgeted up to 135 million franc in annual gaming revenues.

Dolce & Gabbana Weinplatz, Zurich locationgroup research | Retail Market Study 2012

29

Increasing presence of retail chain stores on Niederdorfstrasse After three years of operation, Diesel decided to shutter its accessory boutique, which was centrally located on Niederdorfstrasse on the right bank of the Limmat between Confiserie Schurter and the fashion boutique Companys. The Geneva-based jewellery and bag retailer Michel Jordi took over the 70 square metre space, where the store opened its doors in November 2011. In October 2011, the Swedish fashion and sports retailer Peak Performance, which is also a member of the IC Companys Group, held a gala event to celebrate the opening of its 12th Swiss store, a 120 square metre space at the former Kleiderhaus Central location; the glamorous evening featured 300 cubic metres of artificial snow. Diagonally across the street, Burger King celebrated the opening of its first store on the right bank of the Limmat in an around 200 square metre space that extends from Niederdorfstrasse to Limmatquai. The previous occupant, a bar known as Forecastbar that had become unprofitable, closed early last year.

Bernie’s falls victim to Vero Moda Bernie Lehrer, the late founder of the high-end Zurich fashion house Bernie’s, would probably be spinning in his grave had he experienced the dramatic events surrounding the company he established in 1960. In April 2005, there were media reports that the Pomellato Weinplatz, Zurich

Tom Ford Storchengasse, Zurich

30

locationgroup research | Retail Market Study 2012

Christian Louboutin Schipfe, Zurich

company had been sold to the Mariella Burani Fashion Group. But now, five years down the road, Mr. Lehrer and his son were taken into custody by Italian police on suspicion of obstructing bankruptcy proceedings. This marked the beginning of the end for Bernie’s. In the company’s heyday, its 20 branches registered upward of 20 million franc in sales. Only ten stores remain. Bernie’s founding location, which is still owned by the Lehrer family, is now home to Vero Moda; the new tenant in the former shoe store is the accessories retailer Pieces (likewise a member of the Bestseller Group), and the men’s store on Niederdorfstrasse is now leased by the young-fashion retailer Tom Tailor.

A cabaret repurposed as high-end boutique space The renowned (and infamous) Le Cabaret has closed its doors, and the lease will be taken over in the spring of 2012 by the Colombian fashion boutique Studio F. One year before, Papeterie Waser relocated to Oberdorf. The Swiss shoe retailer Passo per Passo took over the 50 square metre space on Mühlegasse formerly leased by the fashion boutique Splash. Following top to bottom renovation, the venerable bar known as Haifischbar was able to reopen Le Cabaret. The same building complex was also home to Brentschinkenhaus, which was founded in 1357 and whose name was changed to Schwarze Stiege. In the 1920s, the space was repurposed as a movie theatre, Kino Radium, and is today home to an Italian restaurant, Ristorante Da Vinci, and the adjacent Coiffeur Perfect Hair beauty salon.

Vertigo shuts its doors; Changemaker opens; Zurich’s second Guess boutique opens On Hirschenplatz the Vertigo business model, that was similar to Amsterdam’s renowned supper clubs and was installed in the former Kino Wellenberg movie theatre, which is in the hotel with the same name, proved to be a flop. Having stood vacant for over a year, the around 500 square metre space is now home to the youngfashion retailer Box New Generation. Changemaker, which offers fair-trade and eco-friendly household products, moved into a 120 square metre space on Marktgasse just after Christmas. Across the way, the Zurich fashion company owner Sami Bollag took over the former location of the bookseller Orell Füssli, where in March 2011, he opened Zurich’s second Guess fashion boutique (after the Glattzentrum branche) in a more than 500 square metre space.

Swiss Casino Standort Sihlstrasse, Zurich locationgroup research | Retail Market Study 2012

31

Limmatquai Zurich

Scotch & Soda opens next to Vapiano Scotch & Soda is not, as its name implies, a new gastronomic concept but rather a Dutch fashion house which, in the spring of 2012, will be opening its first Swiss store on R채mistrasse, where it will be sandwiched between the restaurants Kronenhalle and Vapiano.

Vapiano R채mistrasse, Zurich

32

locationgroup research | Retail Market Study 2012

Niederdorfstrasse Zurich

Former Bernie’s store Niederdorfstrasse, Zurich locationgroup research | Retail Market Study 2012

33

34

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

35

04 Geneva – a major focus for all jewellery and watch retailers GENEVA, the capital of Switzerland’s Geneva canton, has a high percentage of foreign residents (47.6 %) and is second only to Kreuzlingen in this regard. Numerous international organisations – such as the UN, CERN, IKRK, WHO, IAO, ISO, ITU, WIPO, WMO, WOSM, WTO and UNHCR – are headquartered in Geneva.

Geneva is also Switzerland’s second largest financial centre, after Zurich and followed by Lugano. For years now, Geneva, along with Zurich, has been ranked as one of the world’s cities with the highest cost of living and the highest quality of life. The population of greater Geneva is 780,000.

The world’s most desirable jewellery store location With extremely high retail sales to retail purchasing power ratio, the world’s highest purchasing power after Zurich, and a large contingent of consumers from Middle Eastern cultures, Geneva is an exceptionally appealing location for international jewellery and watch retailers. Geneva’s appeal is also attributable to its affinity for Anglo-Saxon culture and the city’s multicultural population, thanks in large measure to the presence of UN and UNESCO offices. Annual rents go as high as 8,000 franc per square metre on Rue du Rhône and Rue du Marché. Rues Basses features some 80,000 passers-by daily. Rue du Rhône has 108 retail stores with an exceptionally high multibranch ratio of 94 %.

Consumer demand at record levels The watch and jewellery companies that have opted to open branches in Geneva over the years include the following at the top of Rue du Rhône: Boucheron, Audemars, Piguet, Panerei, Graff Diamonds, Hublot, Dior Horlogerie, Tag Heuer, Montblanc and Fabergé.

Other stores of long standing, which are arrayed in the sequence indicated, include the following: Jaeger Le Coultre, IWC Schaffhausen, Roger Dubois, Avakian, Chaumet, Bulgari, Blancpain, Breguet, Piaget, Jahan, Adler, Chopard, De Grisogono, Chatila, Omega, Van der Bauwede, Cartier, Gübelin, Kerdanian, Les Ambassadeurs, Elie Chatila, Enigma, Benoît de Gorski, Patek Philippe, Bucherer, Vacheron Constantin, Vhernier, Rolex, Tudor, Collet, Bijouterie Zbinden, Airbijoux and Bijoux Burma – to mention only the most prominent brands.

Not a new jeweller - but Reuge Opening on Rue du Rhône, next to Louis Vuitton, Omega and Chopard, the newest boutique showcases a range of traditional and contemporary music boxes, joining addresses in Hong Kong, Beijing, Singapore, Doha, and New York.

The 68-square-metre boutique is an exhibition space of well known traditional models and contemporary pieces in modern materials, and also provides a space to explore an increasingly important business stream: bespoke corporate products.

Christmas lightning Rue du Rhône, Geneva

36

locationgroup research | Retail Market Study 2012

Zenith opens its second store in the world – in Geneva On 19 December 2011, a boutique exclusively dedicated to watches from the Swiss watch manufacturer Zenith has opened on one of Geneva’s busiest streets, Rue du Rhône.

This legendary firm is still located in the exact same spot where its founder, Georges Favre-Jacot, first established it in 1865. The boutique is the second in the world (after Hong Kong) to feature the new design which Zenith has developed for its points of sales.

Already from the outside, it stands out thanks to its geometrical storefront studded with glass panes and framed by two large stone columns.

Bulgari Rue du Rhône, Geneva

Louis Vuitton & Gübelin Rue du Rhône, Geneva locationgroup research | Retail Market Study 2012

37

buildings to the left and terminated the lease of the Les Ambassadeurs jewellery store. The investment in the property amounted to a record of more than 75 million franc. In December 2011, Hermès Maison celebrated the opening of its 480 square metre space after more than 12 months of shopfitting. The jewellery and watch retailer Les Ambassadeurs paid key money amounting to several million Swiss francs to take over the lease on the 600 square metre space formerly leased by the fashion house Francesco Smalto. In August 2011, Fendi also celebrated the opening of its new store after nearly a year of shopfitting.

Zenith Rue du Rhône, Geneva

Highest tenancy churn rate on Rue du Rhône In 2008, soon after the Wertheimer family, who owns Chanel, bought the property where their boutique, along with that of Hermès, was under lease, the Dumas family’s (owner of Hermès) lease was terminated. Promptly, the Dumas family purchased the two

Brunello Cucinelli and Moncler open new stores in Geneva Across from the new Hermès Maison on Rue Robert-Céard, Brunello Cucinelli opened its second Swiss store in November 2011, a 250 square metre space that was previously leased to a local Gianfranco Ferré franchisee. The opening of Cucinelli’s Zurich flagship store is slated for the summer of 2012. The down-products retailer Moncler made its Rue du Rhône debut in November 2011 between the Bottega Veneta and Church’s boutiques. After nearly two years of negotiations with the Italian counterparties, the local retailers Emilia Blu and Swiss Kubik concluded a lease for a 150 square metre space.

Les Ambassadeurs Rue du Rhône, Geneva

38

locationgroup research | Retail Market Study 2012

Brunello Cucinelli, Rue Robert-Céard, Geneva

Hugo Boss and Bally swap spaces Five years ago, Hugo Boss took over the Zurich and Geneva stores that were being leased by the Bruno Magli franchisee. Inasmuch as the space in the Rue du Rhône store next to Céline was shopfitted solely for women’s fashions, a swap with the Bally store on Rue du Marché was a welcome transaction, particularly since pedestrian traffic there is ten times higher and the space twice as large compared to Rue du Rhône.

Swiss Life leases BSI property after two years of vacancy One of the most delightful aspects of the fashion house that was founded by Lucerner Thomas Meyer is the enormous popularity he has gained among his young audience thanks to the spectacular events he sponsors. The trendy Spanish brand will be opening an around 1,000 square metre store in the former BSI property on Rue de Rive in late January 2012, the company’s second Swiss store, which will be located across from Rue de la Tour Maîtresse, where Hackett London, Tommy Hilfiger Kids and other brands have stores.

Moncler Rue du Rhône, Geneva locationgroup research | Retail Market Study 2012

39

Bally Rue du Rhône, Geneva

Ladurée in the new Bon Génie department store The franchisee of Ladurée (a Sprüngli competitor) opened its second Geneva store in the newly renovated high-end department store Bon Génie. The Brunschwig family, that owns Bon Génie, purchased the adjacent property a few years back from Valora Pensionskasse, with the goal of adding more than 5,000 square metres of retail space to its flagship store so as to accommodate high-calibre tenants at the entrance to Rue du Marché, as well as additional shop-in-shop stores such as Chanel and Gucci.

Future of former Payot space uncertain It has yet to be announced who will be taking over the Rue du Marché space formerly occupied by the French book store Payot, as well as the small boutiques adjacent to the new Hugo Boss store.

Although a German fashion house had signed a preliminary contract for this flagship store, it withdrew from the negotiations as a result of the high rent demanded by the landlord. What is certain, however, is that Benetton will be the only one of the six stores that is allowed to stay on.

RailCity Geneva (Cornavin) During this second phase extending from August 2011 to December 2013, the railroad station building will be gutted to make way for a completely new interior. The train station’s historic facade will be retained. The projects costs are an estimated 110 million franc.

Bon Genie Rue du Marché, Geneva

40

locationgroup research | Retail Market Study 2012

SBB Cornavin, Geneva

locationgroup research | Retail Market Study 2012

41

05 Basel with Switzerland’s largest Apple Store .

BASEL is Switzerland’s third largest city, after Zurich and Geneva.

Basel has a population of around 170,000, while the population of the greater area of Basel, known as Trinationale Agglomeration Basel, numbers around 830,000.

Shopping excursions to Lörrach and Colmar have grown more appealing thanks to the weakening of the euro in recent months.

Relative to brand-product prices in Switzerland, those in Germany are substantially lower for the same products, in particular owing to the VAT refund program. As a result, Swiss retailers have been offering discounts for months now, mostly ranging from 10 to 20 % of the original price.

Switzerland largest Apple store Following on the heels of Wallisellen, Zurich and Geneva, Basel will soon be the fourth Swiss city where an Apple store has come to town. The store is scheduled to open in early 2012. With 900 square metres of retail space spread across three levels, the Basel Apple store will be far and away Switzerland’s largest branche.

This Swiss Apple flagship store will be located on Freie Strasse,

Planned Apple store Freie Strasse, Basel

Freie Strasse Basel

42

locationgroup research | Retail Market Study 2012

the city’s priciest retail-rent area, opposite the Bucherer jewellery store and the youngfashion boutique Zara. The Apple store location was formerly leased by Botty shoe store, which moved out in September 2011 owing to a high rent increase and received reasonable compensation from the new Dutch owner of the property. This compensation enabled Botty to finance the shopfitting of its new location on Gerbergasse.

Vivarte Group expanding In May 2011, the high-end French footwear company Minelli opened an around 100 square metre boutique on the former premises of Valora, which is owned by kKiosk, and paid more than half a million Swiss francs in key money to take over the lease. One year earlier, Minelli took over the lease of Naf Naf, a 300 square metre fashion store operated by a competitor, Pimkie, for which Minelli paid a somewhat higher amount of key money.

Gerbergasse – a significant number of new players In April 2011, the Swiss retailer Metro Boutiques opened a store on Gerbergasse only a few hundred metres away from the Botty boutique, in the former space of the fashion retailer Sasch, which Metro enlarged from 900 to 1,500 square metres.

Next door, Pasito Fricker opened its new 220 square metre store in the former Unica store. Hugo Boss bought the lease of the Street

Hugo Boss Gerbergasse, Basel

One franchisee, which relinquished the lease after two years of operation after having acquired it from Yendi. A gala opening of the 400 square metres space was held on 21st September, 2011 with various luminaries in attendance. Pasito Fricker took over the space of its competitor Botty a few steps down the street, and almost next door a new around 300 square metre Mammut store opened in November 2011. To the left, the Swiss shoe store sold its

Metro Boutiques Gerbergasse, Basel locationgroup research | Retail Market Study 2012

43

lease to Schiggi Miggi boutique, while next door the Six Shop accessory store ceded its lease to the multibrand store Impressione Fashion, and across the way, Yves Rocher took over the 70 square metre former Kobra Boutique in September 2011. A year earlier, Tom Bergstein opened his outdoor clothing store at the former Bossert Gravuren location.

Zum Braunen Mutz restaurant to become a brasserie Upcoming remodelling and the fact that the lease was set to expire on 30th September, 2010 prompted the landlord, PSP Swiss Property, to rethink the future usage modalities for this Basel key property. The involved parties agreed that the property should remain a restaurant. Having received numerous applications, PSP opted for Candrian Catering AG, which was already a tenant at a number of PSP properties. According to PSP, they were won over by the brasserie concept. The goal was to devise a concept that was in keeping with the architecture, atmosphere and history of the establishment. Candrian Catering will be leasing an around 520 square metre restaurant, whose dining and work areas will be completely redone.

Steinenvorstadt – enter Burger King and Molino, exit Cindy’s Diner Cindy’s Diner on Steinenvorstadt closed in March 2011. Marché International, which is a division of the Mövenpick Group and which operates Cindy’s Diner and other restaurants, said that the unit was being closed because its lease had expired. But as the property’s management company indicated, the lease could have been renewed without any problem. The Cindy’s Diner concept is, in more ways than one, the brainchild of Mövenpick’s founder Ueli Prager, who in 1962 started Silberkugel, Switzerland’s first fast food chain. According to company legend, Mr. Prager’s young daughter asked if she too could name a concept, whereupon Ms. Trager gave her dad’s second fast food brainchild the name “Cindy” because she was a big Cinderella fan. The first Cindy’s Diner opened in 1971 in Spreitenbach but no longer exists.

Across the way, on Three King’s Day in 2011 and 18 months after the 17th century building on the site had been torn down, a Burger

Brauner Mutz Barfüsserplatz, Basel

44

locationgroup research | Retail Market Study 2012

King that was being operated as a franchise by the building owner opened for business. Seven doors down the street to the right, Switzerland’s largest Italian restaurant chain, Molino, took over the 260 square metre former premises of Restaurant Pomodoro and will be opening a new restaurant there in March 2012.

Schuhparadies takes over a games library; a manufacturer’s store replaces a retail chain In keeping with its ongoing expansion program, the former Swiss company Schuhparadies (also a member of the Vivarte Group) took over the former Domino games library (340 square metres) in the spring of 2011 when the current tenant’s lease expired. Across the way, a Metro Boutiques store opened with the goal of testing out the company’s innovative accessories concept. The young-fashion boutique Bench held on for two years in the second to last building on Steinenvorstadt, but ultimately went out of business for lack of pedestrian traffic and ceded the 220 square metre space to a Le Mouton store.

Steinenvorstadt Basel locationgroup research | Retail Market Study 2012

45

06 Bern – cell phones and women’s wear supplant an organic supermarket BERN‘S old town, which was built on chalk cliffs, has been a UNESCO World Cultural Heritage Site since 1983. Bern is the capital of Switzerland, and its metropolitan area has a population of around 350,000.

Naf Naf took over Yendi’s 175 square metre space on Marktgasse (the lease had expired), next door to the company’s Spanish competitor Mango. Across the street, the undergarment retailer Triumph took over Bernie’s 200 square metre space in November 2011. The lingerie retailer and Gaydoul Group member Fogal took over the Roeckl glove boutique, thus doubled its retail space to around 70 square metres. edc by Esprit supplanted by Vero Moda A few doors down on the right, having failed to meet its sales objectives, edc by Esprit sold the lease on its 670 square metre space to Bestseller after three years of operation, for which Esprit received key money. The building was renovated beforehand from top Triumph Marktgasse, Bern

Marktgasse Bern

46

locationgroup research | Retail Market Study 2012

to bottom by the owner of the building, the former operator of Confiserie Meyer. Owing to an appeal that had been made by an animal protection association, the renovation was delayed for a couple of months, which entailed elevated construction costs and additional rent costs, thus preventing Esprit from starting the project as wished.

Beginning of the end for Fein-Kaller A year earlier, the young-fashion multibrand retailer Metro Boutiques took over a space at the end of Marktgasse occupied by the Swiss men’s fashion retail chain Fein-Kaller (which had already been liquidated) for 1 million franc in key money. Relinquishment of its Bern branch marked the first step in the gradual dismantling of the branch network of a company that was at one time Switzerland’s leading men’s outfitter.

Vatter Bärenplatz, Bern

Cell phones and women’s fashions supplant an organic supermarket Sustainability, lease modalities, and sector suitability were defined as the main criteria for selecting a successor to Switzerland’s first organic supermarket at Spitalgasse. Thomas Vatter closed the 430 square metre store because, he said, it was no longer profitable despite the fact that he owned the building. It is now clear what Mr. Vatter meant by “modalities”: he not only required that 3 mil-

lion franc in key money be folded into the rent, but also decided to charge 1.2 million franc in annual rent. Orange found a suitable subtenant in Gerry Weber to assure the 10 years lease contract.

At the time this report went to press, it was unclear what was to become of the former Orange space across the street.

Zytglogge Bern locationgroup research | Retail Market Study 2012

47

Orell Füssli leaves the field to Thalia Orell Füssli has given up the 400 square metres it was subletting in the downtown Bern music store Krompholz at Spitalgasse. The space was taken over by the Swedish multibrand fashion retailer Companys, whose flagship store is already up and running on Marktgasse. However, the rent here is only half the amount Vero Moda pays on Marktgasse.

Cha chà comes to Von Werdt Passage In November 2011, the former Jeckling music store was filled with the aromas of Thai cuisine, which is available in the Art Nouveaustyle, erstwhile Splendid movie theatre on Von Werdt Passage. Migros Aare’s Cha chà Thai restaurant took over the space that was leased by the Zurich music store Jecklin. Migros not only rented out the former Jecklin store but also part of the second floor, where the Stauffacher bookstore now sells CDs.

Von-Werdt-Passage Bern

48

locationgroup research | Retail Market Study 2012

07 Lausanne – second only to Zurich when it comes to number of shopping streets .

Located in the French-speaking part of Switzerland (Romandie) at Lake Geneva, Lausanne, along with Zurich, Geneva, Basel and Bern, is one of Switzerland’s largest cities. The Geneva-Lausanne metropolitan area has 1.2 million inhabitants, 325,000 of whom live in greater Lausanne.

Rue de Bourg : Navyboot, Longchamp, etc.

After almost a year of shopfitting, the Swiss glove and bag retailer Navyboot will be opening its store at the end of Rue du Bourg, across from Hermès and Louis Vuitton. The space was formally occupied by the Reymond stationery store, which did business in the 300 square metre space for over a century; but times have changed and this sector is clearly outmoded. During the first half of 2011, Esprit took over the 60 square metre ground floor space of its neighbour Canton Pelze, thus allowing Esprit to gain an additional eight metres of storefront. Next door, the French young-fashion retailer Sandro took over Buckles & Belts, thus likewise increasing its storefront size.

Navyboot Rue de Bourg, Lausanne

Esprit Rue de Bourg, Lausanne locationgroup research | Retail Market Study 2012

49

Very much in demand – retail space on Rue Haldimand, Rue Pichard and Rue Saint Laurent At the intersection with Place Bel-Air, Vila (a member of the Bestseller Group) opened a store in the summer of 2011 and obtained the lease on the 70 square metre space by offering a considerably higher rent than its then-current tenant Aigle. Right across the street, Mövenpick Ice Cream garnered the Café Aux Pierrots lease, while next door the French bakery chain Paul and the successor establishment Manuel Exploitations both closed within a two year period. Swisscom has been leasing the 150 square metre space since summer 2011.

Bershka Rue St. François, Lausanne

In the summer of 2011, family-owned Longchamp, whose bags are priced one price category lower than those of Navyboot, took over the spaces formally occupied by Mango and Massimo Dutti, amounting to a total of 80 square metres.

Second Swiss Bershka store opens In August 2011, the young-fashion retailer Bershka (likewise a member of the Inditext Group) took over the more than 600 square metres Schäfer Sport store between Zara and Massimo Dutti on Rue Saint-François. The Schäfer family had been operating this sporting goods store for 80 years at this location. The company’s subsidiary, Fogal, has taken over the former Navyboot store on Rue Saint-François next to Bally. Four doors down, Ochsner Shoes is now leasing the former La Grange store, while Chicorée is leasing the former Ochnser space that is sandwiched between Ochsner Shoes and Benetton.

The Nike franchisee on Rue Pichard decided to switch to a peakperformance store concept. Next door, Chicorée took over the approximately 400 square metre Sasch store, where it is now purveying its new ‘Famous’ concept. Benetton-group member Sisley recently opened a branch in the former Bata store, which now carries Guess accessories. The store, which is run by Sandro Marangoni of Benegozi SA as a franchise, only carries accessories, shoes, jewellery and watches. Even Sami Bollag was on hand for the store’s gala opening in September 2011.

The space shared by Marionnaud and Mister Minit on Rue Saint Laurent was too small for both retailers. The shoe store Passo per Passo first took over the Marionnaud portion of the store, and then the Mister Minit portion as well.

Annual per square metre rents in Lausanne range from 1,000 franc on Rue Pichard to 4,500 franc on Rue de Bourg. The city’s most frequented street is Rue Haldimand with 60,000 pedestrians daily.

Swisscom & Mövenpick Rue Haldimand, Lausanne

50

locationgroup research | Retail Market Study 2012

08 Winterthur’s businesses hurt by the strong Swiss franc .

With a population of 100,000, Winterthur is Switzerland’s sixth largest city and Zurich canton’s second largest. The economy of this erstwhile industrial city is today driven by the service, culture and leisure/recreational sectors, and the city houses also 16 museums.

Winterthur’s main train station has the third largest train and passenger rates in Switzerland, and is only 15 kilometres northwest of Zurich’s airport. Winterthur’s economy has been almost as hard hit by the strong Swiss franc as the economies of Basel and Schaffhausen. The city’s proximity to the German border and Lago mall in Constance is giving many retailers sleepless nights.

Zara comes to Winterthur Archhöfe mall, which will extend from Technikumstrasse to the main train station and is slated to open in March 2013, will be a 15,000 square metre mall featuring 40 stores and restaurants. The Spanish fashion retail chain Zara will be the mall’s anchor store, with around 1,500 square metres of space. Archhöfe will cost between 150 and 200 million franc to build.

Rendering Bahnhofplatz, Winterthur locationgroup research | Retail Market Study 2012

51

Arch-Hรถfe Winterthur

Untertor Winterthur

52

locationgroup research | Retail Market Study 2012

Marktgasse Winterthur

Tenancy churn in Untertor Tally Weijl plans to take over the 360 square metre space formerly leased by the electronics store Expert at Untertor. Büro Schoch next door subdivided its space and sublet half of the ground floor to Sunrise after Letec, which had been subletting around 100 square metres in the rear portion of the space, moved out. The only new tenants over the years have been Geox and Street One, and all of the original tenants have remained.

Metro Boutiques to open after a lengthy hiatus for remodelling The principle shareholder of Metro Boutiques purchased the building from Charles Vögele at Marktgasse. Following more than a year of remodelling, a gala opening was held for the 1,500 square metre space. There was also tenancy churn in the Progres-building, where Jack & Jones, a young-fashion concept of the Bestseller Group, offers a product range similar to the one of Metro Boutiques.

Apple has no immediate plans to open a store in Winterthur The Blue Dog store’s lease with the PKZ Group for Mango and PKZ was not renewed. Letec, of which Dataquest owns 50 %, opened a Premium Reseller Apple Store in this space in April 2011. Thus Apple has no immediate plans to open an Apple Store in Winterthur.

The highest annual rents amounting to around 4,000 franc per square metre have been registered in Untertor, where more than 50,000 persons daily frequent Bahnhofplatz going toward Marktgasse.

Tenancy churn in Untertor The Metzgerei Hotz butcher and the Bäckerei Lyner bakery took over the former Metzgerei Bell butcher shop. Mobilezone is now leasing the former Nile store. Geox took over the enlarged Yves Rocher Store. Christ took over Lauener, Street One opened in the fromer over American Drugstore, and Bonita bought the lease of Optiker Zwicker.

Starbucks finds what it is looking for, after a ten years search It took Starbucks ten years to find the right location and conclude a lease for it. Starbucks will presumably be able to open its doors by the end of 2012 on the 400 square metre former premises of Stella del Centro restaurant on Marktgasse. Starbucks will be sharing the building with the Chiquita juice bar and the fast-food restaurant Subway.

locationgroup research | Retail Market Study 2012

53

09 St. Gallen, the new generation makes an important decision on Multergasse .

ST. GALLEN has a population of 72,000. At 700 metres above sea level, it displays one of the higher elevations among Swiss cities and is also the largest city in the Ostschweiz region. The population of greater St. Gallen is around 150,000.

Warenhaus department store at the prime location constituted at the intersection of Multergasse, Marktgasse and Spisergasse.

The space is only now being optimized, and the rent, with Sunrise as a subtenant, has been substantially reduced.

The new generation makes an important decision on Multergasse In September 2011, the Jack & Jones franchisee celebrated the opening of its store following a long hiatus for renovation of the entire property on Multergasse. Three generations of Becks have operated Bäckerei Konditorei Café Beck on Multergasse since 1906. The fourth-generation owner decided to sell the building to a Zug-based private investor, and the cafe recently relocated to a choice location on Webergasse.

A look back at the past five years on Multergasse Ochsner Sport recently took over the store formerly occupied by Esprit, which expanded its presence by leasing the Bata and Tally Weijl space, which had become available. Metro Boutiques took over the former ABM space from C&A. Swarovski is now located in the former Navyboot store, while Bonita can now be found at the location of the former Swarovski and Swatch franchisee.

Triumph will open a 110 square metre space in 2012 next door to H&M. Multergasse Apotheke reborn as an Amativa pharmacy on Poststrasse The rent increase being prohibitive for the owner of the Multergasse Apotheke pharmacy, the owner decided to relinquish this prime downtown location and relocate. The new tenant opened an Ecco shoe store in the 85 square metre ground floor space, the fifth Swiss store for the Danish company.

Sunrise lends Rösslitor Bücher bookstore a helping hand Times are tough for booksellers everywhere, and St. Gallen is no exception. Three years ago, Orell Füssli took the bold step of renting the 2,000 square metre space formerly occupied by the Manor

Marc O’Polo debuts on Spisergasse The owner of the electronics store Scheibling decided against renewing its lease because the new rent was unattainable. Thus did the fashion city of St. Gallen acquire a new fashion attraction in the guise of Mode Weber, which in late August opened the region’s first Marc O’Polo store in an around 150 square metre space.

Benci Brothers take over Latzel Mode lease In the view of Alfred Day, St. Galler Boutique at the corner of Marktgasse and Neugasse was the next takeover target for the two former Navyboot owners. In February 2011, the 240 square metre space was ceded to Alfred Day AG for around 1 million franc in key money – an amount justified by the fact that the rent in this St. Gallen property was only 120 000 franc.

The highest rent on Multergasse, Switzerland’s shortest top-location shopping street, is around 4,000 franc per square metre a year.

Up to 40,000 persons frequent this street daily.

Multergasse St. Gallen

54

locationgroup research | Retail Market Study 2012

accepted

Der Online Shop

Sie finden uns an folgenden Standorten bayard Visp, Sierre . Sion . ehrbar Biel . Brügg . esprit Bern RailCity . Collombey . Langendorf . Lyss .

Martigny . Noës . Nyon . Reinach . Sierre . Sion . Solothurn . krause Reinach . Uster Im Uschter 77 . Zürich Shopville . Sihlcity . Stauffacher . Zug . mix Brig . Interlaken . Visp . street one Bern RailCity . Biel . Brig

Verwaltung Mode Bayard Group . Neuengass-Passage 2 . Postfach . 3001 Bern Telefon 031 320 18 18 . Fax 031 312 16 55 . info@fashion-ch.ch . www.fashion-ch.ch locationgroup research | Retail Market Study 2012

55

10 Lucerne, Bucherer – the world’s top watch boutique .

LUCERNE is the Zentralschweiz region’s premier economic and cultural centre, as well as its most populous city. The world’s oldest covered wooden bridge, Kapellbrücke, with the Wasserturm water tower and Spreuerbrücke bridge, link the old and new parts of town. The fact that Lucerne is situated between Lake Lucerne and Mt Pilatus/Mt Rigi renders the city particularly picturesque and has made Lucerne a magnet for foreigners and a tourist centre as far back as 1840. The population of greater Lucerne is around 205,000, and around 59,000 persons reside in Lucerne proper.

Watches – a true phenomenon Lucerne is planning to transform Flanierzone Grendel (Grendel pedestrian zone) into a Walk of Fame for Watches that planners hope (a) will become a new calling card for Lucerne; (b) will attract watch enthusiasts from the four corners of the globe; and (c) will in particular heighten the appeal of Lucerne’s old town.

Bucherer – the world’s top watch boutique The third-generation owners of Bucherer reportedly register around 120 million franc in annual sales at their Schwanenplatz location. It is no wonder that with more than 13,000 busses annually bringing tourists from around the world to Schwanenplatz at 4 p.m. each day, so that their passengers can purchase a luxury watch or cuckoo clock at Bucherer, Gübelin etc., Cavena AG pays the tourist-bus drivers to bring their passengers right to this watch Mecca. In the event a tourist takes it into his or her head to venture into a watch store on Löwenplatz instead, the tour guide immediately tells the errant tourist that this is prohibited.

On Grendel, Omega took over the entire approximately 150 square foot ground floor space in the Lucerneer Kantonalbank building (the right-hand neighbour of Bucherer), after having leased a portion of Bally’s ground floor space.

The 2,5 franc million project is being financed by the 50 largest Swiss watch companies, each of which will contribute 50,000 franc. In exchange, the companies will obtain a platform thanks to the Grendel pedestrian zone facelift, which will also boost their prestige. The project was designed by five students from Hochschule Lucerne (Lucerne University of Applied Sciences and Arts).

Lucerne

56

locationgroup research | Retail Market Study 2012

Jaeger Le Coultre joins forces with Bucherer Apart from Omega, the Bucherer building is also home to the watch retailer Jaeger Le Coultre (a member of the Richemont Group), a strategy aimed at leaving more space open for additional retailers at the flagship store. Having been open for just over a year, the hearing aid retailer Neuroth received a generous amount of key money for vacating its store, and prior to this paid a substantially lower amount for the Bikini & Snow fashion show.

Vacheron Constantin forges an alliance with Embassy Vacheron Constantin has decided to open its next Swiss boutique in Lucerne, making this the company’s third location in Switzerland in addition to the two in Geneva. The new boutique will open in early 2012 under the management of the watch retailer Embassy. Vacheron Constantin (founded in 1755) is the oldest member of the Richemont Group.

Hublot joints forces with Gübelin The sixth-generation owner of the Swiss jewellery store Gübelin took over the former premises of the Fein-Kaller boutique on Schwanenplatz. The new, around 300 square metre store is scheduled to open in the spring of 2012.

A Hublot boutique – a joint venture with Gübelin – is scheduled to open in the summer of 2012, in the adjacent store in the same building; this store originally opened in 1998.

Hertensteinstrasse – Lucerne’s most coveted retail location As there are no storefront vacancies on Weggisgasse and little or no tenancy churn is in the cards here, numerous retailers are opting for locations at the top of Hertensteinstrasse. For example, Sami Bollag opened his Guess boutique here in September 2011 in a somewhat more than 200 square metre space with a storefront of around 15 metres; the location counts as the Guess flagship store for the Zentralschweiz region. The previous tenant was Vonarburg-based Collection of Brands. At almost the same time and right Bucherer Schwanenplatz, Lucerne

Schwanenplatz Lucerne locationgroup research | Retail Market Study 2012

57

across the street, Ecco Shoes took over the Athena clothing boutique (which specialises in large sizes) next to Papeterie Bookbinders stationers. The Bestseller Group opened its boutique in an 80 square metre space on Hertensteinstrase across from Chicorée and Ex Libris.

Gifts replaced by Kiehl’s organic cosmetics The Casagrande gift shop, the former left-hand neighbour of the soap retailer Lush, has been replaced by the organic-cosmetics store Kiehl’s, which like The Body Shop is a member of the L‘Oreal Group. The landlord, who was also the proprietor of Casagrande, remodelled the property in such a way that the 35 square metre space now makes an extremely inviting impression. Prior to this, Sunrise signed a ten years lease for a 55 square metre space in the same building, next door to Kiehl’s.

Intimissimi opens its first store in the German-speaking part of Switzerland Having opened four stores in Ticino, the Calzedonia Group has now opened its first store in the German-speaking part of Switzerland, on Hertensteinstrasse, for its lingerie line Intimissimi. Located opposite Charles Vögele, the new 50 square metre Intimissimi store took over from Valleverde.

Weggisgasse and Kapellgasse – little tenancy churn in the offing The only change in the new Gränicher boutique on Weggisgasse is the establishment’s name; but the store still has the same owners.

Jeager-LeCoultre Grendel, Lucerne

Bucherer Schwanenplatz, Lucerne

58

locationgroup research | Retail Market Study 2012

Weggisgasse, which counts as Lucerne’s most desirable and best frequented shopping street, has seen the opening of a Benetton and Benetton Kids store, as well as Bonita, Fielmann, Fossil and MarcCain boutiques over the years. The newcomers on Kapellgasse over the years have been Postfinance, Sherpa Outdoor, Apple Dataquest and Thomas Sabo.

Greater tenancy churn on Hirschenplatz, Weinmarkt, Kramgasse and Kornmarktgasse On Hirschenplatz, Companys decided to cede its lease on the 100 square metre former Vero Moda store to the shirt retailer Van Laack. On Weinmarkt, the franchisee converted the former Levis store into an instore multibrand store. Next door is the 100 square metre space occupied by Silk & Cotton that was formerly the home of Mephisto, which was operated by Imgrüth.

Jeans in, Lingerie out At Kornmarkt, Levis leased the around 200 square metre former Palmers boutique, operated by the Austrian lingerie retailer of the same name, which decided to abandon its Swiss operations after only three years in the spring of 2011.

Rents range up to 5,500 franc per square metre a year for Lucerne’s choicest retail locations. Pedestrian

Hertensteinstrasse Lucerne

traffic is particularly heavy on Grendel and on the path leading to Weggisgasse on weekday afternoons, when hordes of tourists come to Lucerne. Up to 70,000 visitors a day have been observed here on peak days.

Weggisgasse Lucerne locationgroup research | Retail Market Study 2012

59

11 Lugano, small but oh so comely .

LUGANO has been classified as a metropolitan region of Ticino by the Swiss Federal Statistical Office, and is now classified as part of the multipolar urban agglomeration system. This system encompasses a number of urban areas in Ticino and Lombardy, with a total population of 500,000. The Como-Chiasso-Mendrisio conurbation of greater Milan (Grande Milano) has a population of around 7.5 million. Downtown Milan is only around an hour away from Lugano by car or train. Having undergone extremely rapid development over the past two decades, Lugano is now Switzerland’s third largest financial centre, after Zurich and Geneva, and has a population of around 59,000. The population of metropolitan Lugano is around 145,000.

LAC – the city’s new calling card The centre for contemporary art and culture known as Lugano Arti Contemporanee (LAC) that is slated to open in 2013 is bound to raise Lugano’s profile throughout Europe and beyond. LAC, which is modelled on Lucerne’s KKL, will contain a theatre, galleries, a concert hall, stores, restaurants and an underground parking garage.

The city of Lugano is investing just under 200 million franc in what is hoped will become the city’s new figurehead. The site cost CHF 30 million and construction will run up to 169 million franc. In addition, private investors will be contributing an additional 100 million franc for office space and 30 luxury apartments. Designed by Ivano

Gianola, the complex will be built on the site of the former Palace Hotel, where reportedly a Giorgio Armani boutique will be taking up residence. The Belle Epoque facade of the hotel, which burned down and has been closed since 1969, has been retained thus far.

Upon its opening in the mid 19th century, the Palace Hotel was the only luxury accommodation between Lucerne and Milan.

Gucci has no immediate plans to open a store in Lugano – tenancy churn on via Nassa Rumours to the contrary, Gucci apparently has no immediate plans to open a store in Lugano, for reasons of currency differences. The company had considered a number of locations on via Nassa in recent years. Next door to Bucherer and across the way from Bulgari, in the summer of 2011, Altalena SA took over the more than 100 square metre former Fein-Kaller space for its Viva shoe boutique. Etiqueta Negra, the successor to Bernie’s that opened as a franchise of Bernie’s board chairman, lasted less than a year. The chairman ceded the lease on the 55 square metre space to the franchisee of the French fashion house Maje for a moderate sum relative to the annual rent, which was only 66,000 franc.

Via Nassa Lugano

60

locationgroup research | Retail Market Study 2012

Hotel Palace, Lugano

Farmacia Bianco still vacant As at the date this report went to press, a new tenant had yet to be announced for the three-level 250 square metre former Farmacia Bianco, where the rent is 2,000 franc per square metre. Thus the annual rent for the third floor alone would amount to 200,000 franc, if all of the spaces are weighted equally. Assuming that twothirds of sales are generated on the ground floor, this would equate to a rent in excess of 4,100 franc per square metre a year.

Merkur Confiserien takes over L’Altro store L’Altro ceded its lease on its split-level 170 square metre space to Merkur Confiserie for a substantial sum. The store is situated in one of Lugano’s choicest retail locations, next door to the Manor department store on Piazza Dante.

Via Nassa Lugano locationgroup research | Retail Market Study 2012

61

12 Biel, a city with great potential .

BIEL / BIENNE is Switzerland’s second largest bilingual city, and the second largest city in Bern canton, after Bern. With 52,000 inhabitants, Biel is Switzerland’s tenth most populous city. The population of greater Biel is 114,000, and around 150,000 persons live in the Biel catchment area.

Nidaugasse – tremendous potential Caffé Spettacolo, which belongs to Valora, closed their branche at the top of Nidaugasse as a result of concentrating their locations.

Mobilezone, the only mobile phone operator with its own branch network, took over the Valora lease on a 100 square metre groundfloor space. In early 2013, Sunrise will be moving into the 90 square metre former Sud Express store.

Esprit tests the waters in Biel Esprit had originally planned to open two stores simultaneously in Biel three years ago. In May 2011, Esprit rolled out its less reddish look, for the second time worldwide, after a prototype opened in Hong Kong. After nearly three years of waiting, Lüthy und Stocker Buchhandlung celebrated the opening of its 1,900 square metre space in the spring of 2011, in conjunction with Esprit. The German property developer invested 37 million franc in the project.

since September 2011 Esprit has been operating in partnership with Starbucks. Starbucks and Esprit joint ventures are a rarity in Europe, however.

Bahnhofstrasse more in demand than ever before The lease on the Biel-based multibrand retailer’s Bijoux les Boutiques store on Bahnhofstrasse was not renewed because the landlord felt that Valiant Bank was a better investment. But as it turned out, the bank has closed many of its branches in Bern canton, and it’s probably only a matter of time until the Bahnhofstrasse branch gets the axe as well. Across the street, to the right of Jack Wolfskin and New Yorker, the Vivarte Gruppe leased a more than 600 square metre space for its discount shoe store La Halle. More than a year before this, Jack & Jones opened a store next to Nespresso and right across the street from La Halle. Further down toward the main train station, Vivarte opened a new shoe boutique known as Schuhparadies in the Migros building.

Retail space at the choicest locations on Nidaugasse, which is frequented by more than 50,000 persons daily, ask for a rent of 3,600 franc per square metre a year.

Although concepts that work in Biel do not necessarily work everywhere, Esprit always uses Biel as a laboratory for the roll-out of new store concepts. This also held true for the old Esprit store, which

Nidaugasse Biel

62

locationgroup research | Retail Market Study 2012

Shopping Center

5th Swiss Shopping Center Forum & Swiss Council Congress

Forum

2012

Radisson Blu Hotel, Zurich Airport Thursday, 10th May 2012

Switzerland

TRENDSETTER SHOPPING CENTER The only Swiss Professional Congress for the Shopping Center Industry and for Professionals of the Real Estate Retail Industry.

A MEMBER OF

The participants will receive the new GfK Switzerland Shopping Center Yearbook 2012 (Value CHF 580.00)

PATRONAT & ORGANIZATION

GOLD SPONSOR

PLATIN SPONSOR

MAIN SPONSOR

Swiss Council of Shopping Centers

Online-Registration under : www.sc-forum.ch SPONSORS

MULTIMEDIA PARTNER

locationgroup research | Retail Market Study 2012 LANGENTHAL l ZĂœRICH

locationgroup

63

13 Department stores, Railcity and airport shopping have all scored the greatest success in Zurich .

Wikipedia defines the distinction between a department store and shopping mall as follows: Unlike a department store the operators of shopping mall businesses do not act on their own account, but rather in the capacity of tenants and property managers. A department store proprietor on the other hand operates his business on his own account in partnership with the property manager.

Zurich’s Globus department store – best in class worldwide In 2011, Zurich’s Globus department store was once again ranked as the world’s best department store in its category. With sales amounting to more than 24,000 franc per square metre across 7,500 square metres of retail space, this flagship store’s annual sales of 180 million franc make it the world’s top performer.

The third floor of Globus’ Geneva store was renovated and a year before on the second floor the 12,000 square metre store with its

women’s fashions department upgraded to premium products.

Although, owing to the strength of the Swiss franc, the store will probably not exceed the prior year’s 12,500 franc per square metre in sales, with annual sales amounting to 150 million franc the store still has great potential.

Additional investments amounting to 40 million franc were also realised in 2011. In October, a Globus department store opened at the Centre Marin mall near Neuenburg as a replacement for the City branch.

Setback for Jelmoli’s transformation project The goal of the project manager Hanspeter Grüninger was to make the company fit for the future and to allow the transition from the premium to the luxury products league. The project took its cue from department stores such as Rinascente, Selfridges, Harrods,

Globus Usteristrasse/Pestalozziwiese, Zurich

64

locationgroup research | Retail Market Study 2012

KaDeWe and Oberpollinger. Mr. Grüninger will be replaced in spring 2012 by former Grieder CEO Franco Savastano.

While net sales in 2009 amounted to around 330 million franc, this figure was substantially undercut in 2010 owing to a 9,7 % decrease in the store’s per square metre sales. Because of the remodelling work, it can be assumed, that for 2011 the sales goals set three years ago cannot be exceeded until 2012. According to Jelmoli, in 2010 gross internal sales amounted to 165,1 million franc (net 152,9 million franc), while gross shop-in-shop rental income amounted to 154,5 million franc (net 143,1 million franc). Hence the loss relative to 2009 was a relatively moderate 34 million franc.

According to the owner, Swiss Life, the property’s market value is 679,2 million franc and the property has 31,198 square metres of leasable space. With sales of only 319,6 million franc (whether gross or net), per square metre sales amounting to less than 10,000 franc would be a setback for the property’s potential.

Manor department store seeking for an alternative location A comparison of the retail space at Manor and Globus department stores reveals that Globus registers 24,000 franc per square metre

Jelmoli department store Sihlstrasse/Seidengasse, Zurich

Manor department store Bahnhofstrasse, Zurich locationgroup research | Retail Market Study 2012

65

in sales versus 9,900 franc for Manor. Moreover, the fact that Manor is bounded by Bahnhofstrasse, Lintheschergasse and Uraniastrasse offers the great advantage that customers can enter the store from three sides, whereas Globus is accessible for the most part solely via its main entrance on Pestalozziwiese. And if you consider that the Maus family, who owns Manor, is looking for an alternative location in Zurich and thus will not be focusing its investment efforts on this property. The main reason is obvious, the landlord has terminated the leases of all tenants in the building.

Manor reopens its Basel flagship store featuring 13,000 square metres of retail space On 1st December 2011 around 2,500 guests attended the gala reopening of the completely remodelled Manor department store on Basel’s Greifengasse. The event featured the premiere of the Manor 300 square metre interactive video surface which is the largest in Europe. Remodelling the 13,000 square metre space (affectionately referred to as “Rhybrugg” by Baselers) took nearly a year during which time the store remained open.

further details, it is safe to assume that the store’s annual sales are around 80 to 100 million franc.

Turbulence in capital markets hard on Loeb Loeb suffered from the turbulence in capital-markets during the first half of 2011 with the company’s poor financials showing a profit decrease. Net earnings amounted to 200,000 franc, down from 700,000 franc during the same period in the prior year.

While sales in the first half of 2011 took a 3.3 % nosedive to 46.6 million franc owing to a roll-back of the company’s proprietary space, the per square metre sales were up 5.3 %. According to Loeb, the fall-off in net earnings was offset by additional rental income, and the company’s real estate holdings were built out, thanks to the acquisition at mid-year of an additional property in Bern at a price of 5,5 million franc.

St. Annahof branch of Coop City All that is known about the St. Annahof branch of Coop City at the corner of Bahnhofstrasse and Füsslistrasse is that it has 8,000 square metres of retail space. Although Coop City has released no

Coop St. Annahof department store Bahnhofstrasse, Zurich

66

locationgroup research | Retail Market Study 2012

Loeb department store Spitalgasse, Bern

SBB investing 500 million franc in malls - train station retail and restaurant space being expanded Train stations are increasingly coming to resemble shopping malls.

Between 2011 and 2016, SBB will be investing around 500 million franc for, among other things, the creation of additional retail space at train stations. The company is counting on the fact that increasing numbers of commuters will be doing their shopping at train stations.

SBB earned around 1,5 billion franc in sales revenue last year from its train station stores, not including the 300 million franc in rental income on these stores that the company raked in.

A new Burger King store eagerly awaits your visit: In December 2011, Candrian Catering opened a branch with an integrated Coffee Place as a Blueberry shop-in-shop and a joint venture with Burger King Express, which is a new arrival in the European scene. After a year of construction, the opening of the new Burger King in October 2011 marked the conclusion of remodelling and renovation of the former Marktplatz, which now features 14 stores containing new businesses.

Train stations will be used by substantially larger numbers of passengers over the next decades According to various projections, the number of train passengers is set to rise by around 50 % by 2030. The current figure is 900,000 daily, which could easily double in Zurich and the Lake Geneva region. The lion’s share of investments, around 400 million franc, is earmarked for large train stations. 110 million franc was invested in the renovation of Geneva’s Cornavin train station alone. But smaller and medium sized train stations are also slated for an upgrade, including the Baden and Bellinzona train stations. And SBB is also planning to create additional retail space in Zurich on the new Durchmesserlinie line.

Sales of more than 400 million franc at Railcity Zurich The best guarantee of robust sales in any shopping mall or train station is a high frequentation level. Only Railcity Bern theoretically tops Zurich with per square metre sales amounting to 29,000 franc, but a head to head comparison is not valid here because of Railcity Bern’s smaller size. With more than 2,915 train trips per day, Zurich is one of the world’s most frequented train stations.

Shopville & Railcity mainstation, Zurich locationgroup research | Retail Market Study 2012

67

On completion of the Durchmesserlinie line to Oerlikon in June 2014, it is expected that with the underground Löwenstrasse train station in operation, Zurich’s main train station will be frequented by more than 500,000 passengers daily. The facility will also be home to 37 new stores extending over 2,800 square metres of retail space.

Additional innovations for airport shopping The 80 stores at the Zurich airport generated more than 480 million franc in sales, or more than 18,000 franc per square metre. Although the airport has only 60 % of the space, as found in Switzerland’s top shopping mall the Glattzentrum, the airport’s per square metre sales compared to the 15,000 franc generated at Glattzentrum are remarkable. In recent years, each departing passenger has spent an average of 42 franc at Zurich airport’s shops, bars, and restaurants, compared to a maximum of 20 to 30 franc a head at most comparable European airports.

Since June 2011, not only departing passengers but also arriving passengers are permitted to make duty-free purchases at the Zurich airport. The first arrival duty-free shop opened at Arrival 2 in a 650 square metre space, and a second such shop is slated to open at Arrival 1 in July 2011 in a 1,100 square metre space. The airport and the shop operator Nuance Group are looking for substantial sales; sales projections for the Geneva and Zurich airports range up to 50 million franc per year. The airport estimates the additional earnings.

Zurich airport aims to become a destination in its own right Flughafen Zurich AG is planning to carry out the largest construction project Switzerland has ever seen, on a 37,000 square metre area at the bottom of Butzenbüel hill, close by an interconnected retail park, known as The Circle. This will transform the Zurich airport from a transportation hub and commercial centre into a destination in its own right. Beginning in 2017, The Circle will feature premium-segment international retailers, stores, and service businesses for an international audience in around 200,000 square metres of commercial space.

Geneva Airport In 2010, Geneva airport registered net earnings of 49 million franc and 320 million franc in sales, with half of the profits going to the airport’s owner, Geneva canton. A quarter of the airport’s takings were generated by stores, service businesses and restaurants. As of 1st June, 2011, arriving passengers are also allowed to shop at a 400 square metre duty-free shop in front of the baggage claim area in the arrival area.

The Circle, Airport Zurich-Kloten

68

locationgroup research | Retail Market Study 2012

14 Shopping malls prepare for the future .

Shopping Centers of Switzerland

Although Switzerland and Austria count as saturated markets in Europe, Germany still offers potential. Switzerland and Austria have 30 square metres (gross) of rented shopping mall space per 100 inhabitants, while the figure for Germany is only 13 square metres, which is even lower than Poland’s 15 square metres.

According to a recent GfK Switzerland study, Switzerland, a relatively small country, now has 162 shopping malls with 5,000 square metres or more of floor space. These malls account for around 17 % of retail sales in Switzerland, versus 25 % in other countries. Shopping malls with aggregate retail space of around 940,000 square metres are slated for construction by 2015. According to the GfK study, 13 malls are under construction or are very likely to be con-

Modissa store, Glattzentrum locationgroup research | Retail Market Study 2012

69

structed while 16 malls are planned or their realization is uncertain. Thus it’s no surprise that the study reaches the conclusion, Switzerland’s retail sector is, in the report’s words, “overstored.”

But despite the abundance of retail spaces and locations in Switzerland, the country still offers opportunities for retail store expansion particularly for foreign retailers.

Glattzentrum under new management The Glattzentrum had around 8 million visitors in 2010 and registered aggregate sales amounting to 668 million franc, a slight increase over the prior year. The 2010 goal of breaking the 700 million franc sales barrier in 2012 will probably have to be postponed.

When the Bollag Guggenheim Fashion Group, in partnership with Guess, got the nod for the space formerly occupied by Atlanta Jeans, no one expected that Bollag will get the green light to open a Marc O’Polo store as well. Within the same deal his former franchisor Esprit was granted a store area. However, this does not correspond to a press release in March 2010: “One of the most important features of this mix is its tenants, more than half of whom are recently founded partnerships and family businesses that are bolstered by robust, tested and true corporate business models.”

The Gablinger family Modissa and BIG spaces were supposed to get the aforesaid nod but the parties went to court. Esprit was supposed to take over the Modissa space but Marc O’Polo was awarded the BIG store instead.

Betrieb AG shortly before his retirement. In the event, Mr. Stoffel was summarily dismissed at 31st December, 2010 after ten years with the company.

Stefan Gross named center manager Mr. Gross’s name was in the headlines thanks to his former employer Ikea. As head of Ikea’s Russian realty operations, Mr. Gross became the fall guy for Scandinavian and Russian officials. It often happens in Russia that disobliging managers are found guilty of wrongdoing on the basis of compromising elements. In most cases, the individuals concerned do not even know that they’ve been convicted of a crime.

Desigual supplants Hollister In September 2011, the Spanish young-fashion retailer Desigual opened an approx. 300 square metre boutique in Dörfli’s former top-floor space. A week previously, Swarovski rolled out a new shopfitting concept.

Abercrombie & Fitch victim of a marketing “false alarm” In 2010, the Glattzentrum announced that it was having discussions with Abercrombie & Fitch. But unfortunately nothing was realized, including a planned opening with the company’s affiliate Hollister. Nor does Gilly Hicks have any immediate plans to open a store in the Glattzentrum.

Marcel Stoffel, the Glattzentrum manager at the time, probably had not expected his boss Heinz Klausner to assume the risk of damaging the reputation of the Migros affiliate Liegenschaften-

Glattzentrum Wallisellen

70

locationgroup research | Retail Market Study 2012

Balexert Shopping Center, Geneva

Geneva’s Balexert shopping mall – second highest sales in Switzerland The Swiss department store chain Globus, the third largest after Manor and Coop City, is assiduously pursuing its expansion and modernization strategy. In late 2010, Globus opened a 6,900 square metre branch at the Balexert mall, which had been enlarged from 10,000 to 45,000 square metres. In March, Globus reopened a Herren Globus store near the Geneva airport after enlarging the store from 350 to 1,110 square metres at a cost of 20 million franc.

Sihlcity on the move The Sihlcity mall manager reported in 2010 that sales in all categories had risen between 7 to 16 %. Aggregate sales amounting to 372 million franc, represent 9,1 % or 31 million franc, in sales

growth relative to 2009 – showing the strongest increase since the mall opened in 2007. Sihlcity was frequented by 6,6 million persons in 2010 which works out to an average of more than 21,000 visitors daily and thus the mall broke the 20,000 visitors per shopping day barrier for the first time.

The Rosenberg mall in Winterthur finally opens after a more than five year wait The press release stated as follows: “We are pleased to announce, that after two years of construction our new shopping mall will be opening with more than 14,600 square metres of retail space.” The mall features more than 40 specialty stores and local retailers on two levels.

Sihlcity shopping center, Zurich locationgroup research | Retail Market Study 2012

71

Tivoli mall Shoppi-Tivoli Spreitenbach

Switzerland’s largest shopping mall under pressure In October 2011, the German consumer electronics retailer Saturn (which is owned by Metro Group) opened a 3,900 square metre store, its sixth in Switzerland, at the Shoppi Tivoli mall, somewhat behind schedule.

Alongside, the German fashion retailer Van Graaf which belongs to Hamburger Peek & Cloppenburg tries to increase the number of buyers visiting the 4,500 square meter sales area since the beginning. P&Cs (Hamburg and Düsseldorf) experiences, which both failed in Zurich’s Sihlcity, were a costly lesson about the Swiss retail market.

Thus Switzerland’s largest shopping mall is now stuck in limbo with sales amounting to 6,000 franc per square metres and has to cope with pressure from investors and attract more affluent customers to the mall.

Anyhow, the EKZ in Spreitenbach with its best centrality in Switzerland (468 points) is having the best chances of success.

Ceiling collapses at Westside mall, Sales not on track On 1st April, 2011, Migros Aare Vice President Shopping Centre and Real Estate Anton Gäumann stated that the Westside mall is still on track with its five-year plan. After two years of operation, the mall, which had 3.7 million visitors in 2010, increased its total sales by 8.3 % to 195 million franc in that year. As Mr. Gäumann put it: “Westside has yet to fulfill its full potential. We are making efforts to optimize the facility and in doing so will pleasantly surprise the mall’s customers.”

On the 9th October 2009, Mr. Gäumann stated that the mall had 4.2 million visitors during its first year of operation but failed to reveal where the 15 million franc sales increase was supposed to have come from with visitor numbers down by 500,000. Even assuming that movie theatre and swimming pool sales were included the

72

mall would have had a considerable amount of catching up to do and could not possibly have generated 8,300 franc per square metre in sales in its retail spaces alone. Moreover, the 23,500 square metres of space indicated for 55 stores and boutiques excludes the 3,000 square metres of restaurant space. Thus, assuming that aggregate restaurant sales have also been factored in, per square metre sales would amount to 7,400 franc. If the movie theatre and health club (an aggregate 10,000 square metres) are included in the aggregate sales, Westside would only be generating sales amounting to a mere – and catastrophically low – 5,300 franc per square metre.

And even if you divide aggregate sales by the number of visitors, the result is anything but heartening. Figuring an average expenditure of only 52 franc per visitor for shopping, eating, swimming and moviegoing some businesses would be completely unfrequented. For comparison: each Glattzentrum visitor spends an average of 63 % more, i.e. 83 franc.

The CEO of Orell Füssli was extremely dissatisfied from the get-go, stating that closing the company’s location at the Westside mall in Berlin, where the company had an outsized 1,500 square metre space, should also be considered along with the closings of the company’s other stores. The Migros subsidiary sent employees, who were hired to work at Westside, back to the store in the centre of town, because there was nothing to do at the Bern-Brünnen location. Here too, compared to the Glattzentrum mall or Geneva’s Balexert mall, the ratio between the 6,000 square metre space and the total size of the mall makes no sense.

In keeping with the adage that misfortunes always come in pairs, it turns out that the swimming pool at the Bernaqua fitness centre will not reopen until February 2012. Eight months following the collapse of the ceiling, repairs are being held up due to the fact that the requisite documentation is taking longer than expected.

According to government experts, the main cause of the collapse was a faulty suspension element in the substructure. In the inci-

locationgroup research | Retail Market Study 2012

dent, which occurred on 12th April, 2011, parts of the ceiling fell from a height of 15 metres, injuring one person.

Shoppyland mall reopens Shoppyland mall in Schönbühl celebrated the reopening of the facility as a whole after three years of remodelling. This overwhelming success was largely attributable to new tenants such as Saturn, as well as proprietary Migros stores. As Mr. Gäumann put it: “Shoppyland mall strikingly attests to the fact that customers like it, when highly appealing tenants are available under one roof – even if one of the tenants, as is the case with Saturn, is a direct competitor of melectronics. This approach pays off for all concerned.”

The two malls in Thun-Süd Thun was a focus of attention for Migros Aare during the fall. First, the Oberland mall reopened in its entirety in October 2011, after being completely renovated (and following a partial reopening in the summer) with retail space amounting to 14,000 square metres (up from 9,000) and 20 stores. And in September, the Panorama mall, which is next door to the new Arena Thun soccer stadium, opened with OBI as the anchor tenant and 17 other stores, plus Flower Power fitness centre and Medbase healthcare centre.

Migros Aare intends to step up the pace and intensify its sales network buildout and revitalisation efforts, with the aim of improving its market position. To this end, between 2011 and 2013 the company will be investing a total of 40 million franc in 40 projects in this arena.

The Stücki mall – ten tenant changes in two years, still six vacancies As Stücki shopping mall manager Jan Tanner told TagesWoche in

December 2011, there have been around ten tenant changes since the mall opened two years ago. Six spaces are vacant at present.

The mall currently attracts around 10,000 visitors daily, which means that it has a ways to go to reach its goal of 15,000 visitors daily.

“We are not satisfied. But we are doing pretty well, considering the extremely unusual situation in Switzerland right now brought on by the strength of the franc. It takes anywhere from three to five years for a shopping mall to establish itself on the market.” The disappointing visitor figures in August and September have shown some improvement over the past few weeks, with visitor numbers up 10 % in November relative to last year.

For example, according to Thomas Herbert, CEO of the fashion retailer Schild, who operates the stores as a franchisee, business at the Hallhuber and s.Oliver stores at Basel’s Stücki shopping mall is dismal.

It is unclear why another Mecca of consumerism is needed, just 1,000 metres away from Stücki – particularly since the mall located in Kleinhüningen and opened in the fall of 2009, has not been doing particularly well. The mall’s approximative 120 stores and restaurants spread across 32,000 square metres of retail space are empty most of the time, particularly on weekdays. Migros and Saturn have already realised that the mall is pretty much a lost cause and have drastically reduced the size of their stores.

Marin reopens Among the new tenants at the Marin mall are Globus and H&M, which are respectively leasing 4,270 and 1,400 square metre spaces, which have been completely remodelled. The mall, which is located between Biel and Neuchatel, opened in November 2011.

Westside shopping center opening 2009, Bern-Brünnen locationgroup research | Retail Market Study 2012

73

Shoppyland shopping center, Schönbühl (Bern)

Globus alone invested 14 million franc in shopfitting its split-level space. The newly opened Media Markt, the company’s 20th store in Switzerland, has a 2,550 square metre space.

The remodelling has greatly improved the mall, particularly in terms of its appearance, but also thanks to optimized access to the high way. The mall’s retail space was increased by 15 % to 42 000 square metres. Plans had originally called for Marin to accommodate a Saturn store, which would have been the first such facility in French-speaking Switzerland. The fact that an additional Media Markt has now moved in instead, is attributable to the cross-media strategy that Media Markt is pursuing in Switzerland.

Coop opens megastore no. 31 In the wake of 13 openings and 14 closings, there were 784 Coop supermarkets in Switzerland as of 31st December, 2010. At the same time, the opening of the new Coop Oberwil Mühlematt megastore brought the number of such facilities in Switzerland to

31. This first Coop megastore in the Basel area carries more than 40,000 products and has 4,466 square metres of retail space. The price tag for the project ran to around 32 million franc.

As at the end of 2010, the 816 Coop stores in Switzerland had an aggregate retail space amounting to 946,845 square metres, up by more than 1 % (9,822 square metre) over 2009. Retail sales in 2010 amounted to around 11.3 billion franc.

The graphic below, which is drawn from a GfK study of the Swiss retail sector (Detailhandel Schweiz 2011), shows that in 2010, Swiss shopping malls generated sales in excess of 100 billion franc.

It can be concluded from this graphic, that action needs to be taken for the large shopping malls displayed in the latter third of the graphic. As noted, the Shoppi Tivoli and Shoppyland malls were remodelled with the aim of equipping them for the challenges that will be coming down the pike over the next decade. It will be interesting to see what actions the other shopping mall owners take with a view to extricating themselves from their current plight.

Hence, it is fair to say that the main concern when it comes to shopping malls is more than just the physical-plant aspect; also architecture and market positioning also play a pivotal role – as does, of course, the tenant mix.

Tommy Hilfiger and luxury retailers open at Alpenrhein Village Tommy Hilfiger opened a 480 square metre store at Alpenrhein Village Outlet Shopping in Landquart in October 2011. According to Alpenrhein manager Claudio Poltera, this is Tommy Hilfiger’s sole Swiss store and the only one in a 100 kilometre radius.

The next openings of prominent international luxury outlets at the outlet mall are aimed at bringing it up to a level that is on a par with FoxTown in Mendrisio. International young-fashion retail chains will also be making their debut at the mall.

Alpenrhein outlet village, Landquart

74

locationgroup research | Retail Market Study 2012

Alpenrhein Village outlet mall, which opened in 2009, is owned by ING Real Estate Germany GmbH and managed by GVA Outlets, a subsidiary of Fashion House Group. Other tenants at the mall include Willy Bogner, St. Emile, Victorinox, Jet Set, Navyboot, Diesel, Lacoste, Quiksilver, Desigual, Nike, Calvin Klein, Bata, and BREE. FoxTown designer outlet mall in Mendrisio Luxury products at bargain prices is the recipe for success at the FoxTown outlet mall in Mendrisio, which features 160 factory outlets for fashion, sports, clothing, and leather products at 30 to 70 percent discounts. The US magazine Forbes has ranked FoxTown as the world’s second best factory outlet mall, after Helsinki’s Arabia Factory Outlet.

FoxTown features a host of fashion outlet stores including (to name only a few) Armani, Cerruti, Dior, Dolce & Gabbana, Missoni, Gucci, Prada, Versace, Polo Ralph Lauren, plus outlets of trendsetters like Miss Sixty, 7 for all mankind, Tommy Hilfiger, and Puma. The mall has three kilometres of shop windows in its various sections and on various levels.

Foxtown Outlet Mall, Mendrisio

Victorinox store Alpenrhein, Landquart

Foxtown factory stores Expo, Mendrisio locationgroup research | Retail Market Study 2012

75

Shopping centers Switzerland City Selling space

Square metre RailCity Bern Bern 6,299 ShopVille-RailCity Zurich 15,667 RailCity Basel Basel 7,631 RailCity Lucerne Lucerne 5,607 Airport Shopping & Airside Center Flughafen Zurich 27,000 Neumarkt Altstetten Zurich 8,141 Shopping center Glatt Glattzentrum 43,387 Sälipark Olten 7,500 Seedamm-Center Pfäffikon 20,103 Parc du Rhône Collombey 13,000 Zentrum Oberland Thun 7,875 Signy Centre Signy 12,962 La Combe Nyon 10,159 Einkaufs-Allee Metalli Zug 13,995 Züri-Oberland-Märt Wetzikon 9,234 Migros City Shopping Zurich 10,145 Neumarkt Brugg 10,600 Centre Balexert Geneve 42,743 Shopping center Surseepark Sursee 19,496 Léman Centre Crissier 17,926 Centre commercial Chavannes-de-Bogis Chavannes-de-Bogis 21,000 Métropole-Centre La Chaux-de-Fonds 10,499 Saint-Antoine Centre Commercial Vevey 19,230 Illuster Shopping Center Uster 11,000 Zugerland 22,042 Steinhausen Centre Commercial de Crissier Crissier 23,042 Neuwiesen Einkaufszentrum Winterthur 12,000 Mythen Center Schwyz 19,930 Passage Frauenfeld 10,318 Zentrum Regensdorf Regensdorf 16,609 Neumarkt Oerlikon Zurich 10,430 La Praille Centre Commercial Carouge 20,047 Centre Manor Monthey 16,191 Wynecenter Buchs 15,980 Herblingermarkt Schaffhausen 15,669

Total turnover

Turnover/sqm

CHF

CHF

185,000,000 403,000,000 172,000,000 121,000,000 510,000,000 131,000,000 669,000,000 101,000,000 267,000,000 167,000,000 101,000,000 165,000,000 118,000,000 162,000,000 103,000,000 113,000,000 117,000,000 458,000,000 207,000,000 189,000,000 221,000,000 109,000,000 198,000,000 113,000,000 226,000,000 233,000,000 121,000,000 200,000,000 101,000,000 162,000,000 101,000,000 194,000,000 156,000,000 152,000,000 147,000,000

29,370 25,748 22,540 21,726 18,881 16,055 15,415 13,467 13,282 12,846 12,825 12,730 11,615 11,576 11,111 11,109 11,038 10,715 10,602 10,566 10,524 10,382 10,296 10,273 10,244 10,112 10,083 10,035 9,789 9,754 9,684 9,652 9,635 9,512 9,356

Shopping Centers Switzerland 70,000 60,000 50,000 40,000 30,000 20,000 10,000

Ra

Sh

op

Vil

ilC ity Be rn leRa Ra ilC ilC ity ity Air Ra Ba po ilC s rt i el ty Sh Lu op ce pin EO-T r ne yc g& hb Air Ne sid oden um eC ark en Ein ter tA ka lts ufs tet ze ten ntr um Gl att Se Sä ed l ipa am rk mCe Pa nte rc du Ze r ntr Rh um ôn e Ob erl Sig an d ny C en Ein t r ka e ufs La C om -A Zü lle be rieM Ob eta Mi erl lli gro an dsC Mä ity rt Sh op pin Ein Ne g ka um Ce ufs Ce ntr ark ntr ze e t ntr ec um Bale om xe me Su r t rse rci al ep Lé Ch a ma a n C rk v Sa a n en int ne tre -A s-d Mé nto etro ine Bo p gis ole Ce ntr -C Illu en eC ste tre om rS me ho Ce rci p p ntr al ing eC Ce om nte Ne Z me r ug uw rci erl ies al an en de d Ein Cr iss ka ufs ier ze My ntr th um en Ce nte Ze r ntr um Pass ag La Re N e ge eu Pr ail n ma le rkt sdor Ce f O ntr e C erlik on om me Ce rci ntr al eM an or

0

76

Selling space locationgroup research | Retail Market Study 2012 Turnover

Total turnover

Turnover/sqm

CHF

CHF

129,000,000 239,000,000 274,000,000 169,000,000 113,000,000 205,000,000 113,000,000 100,000,000 372,000,000 122,000,000 101,000,000 129,000,000 115,000,000 195,000,000 106,000,000 101,000,000 155,000,000 116,000,000 147,000,000 185,000,000 230,000,000 132,000,000 323,000,000 123,000,000 112,000,000 127,000,000 419,000,000 105,000,000 240,000,000 221,000,000 133,000,000 106,000,000 118,000,000 210,000,000 150,000,000 128,000,000

9,149 9,127 9,043 9,034 8,501 8,447 8,364 8,171 8,100 7,993 7,900 7,877 7,656 7,539 7,496 7,065 7,059 7,050 6,837 6,836 6,758 6,701 6,616 6,356 6,315 6,195 6,192 6,176 6,064 6,055 588 5,680 5,658 5,189 4,688 3,879

He

rb

Wy ne ce nte lin r ge r ma Me rkt yri nC en tre Le tzi Em me park nC en Ce ter Ein ntr Ro ka ma e Br ufs ü n gg ze el Ce ntr ntr um Marc ec hé Vo om lki me -L an rci d al Cr os e t Aa Fri rep bo urg ark Ce ntr Ha e ag Mé Ce nte tro po r le 20 00 Piz olp ark Ce W ntr e M ests ide an or Sie Ce rre ntr Sih oS l c an ity An ton ino Se rfo Lit nta tor na al Ce Pil ntr atu e sm Ma ark rin t -C en Av tre La r y-C Ma en lad Ein tre ièr ka eC ufs e n Sh ze tre ntr o um ppyl St an . Ja Lä d ko nd Wa berp nk Pa ark do rk rf Sh Ce op nte pin r gC Sh e nte o p Pla pi r &T ne te ivo Ch Ce l i a ntr o L rmill es ug an Sh Ein oS op ka ud pin Ce ufs ntr g-A z e eB ren ntr ah um a nh H of Bie inwi l l-B ien ne Rh ein pa rk G St äu üc p ark ki Wo Sh hn o ce nte ppin g rE mm en

Shopping centers Switzerland City Selling space

Square metre Meyrin Centre Meyrin 14,100 Letzipark Zurich 26,174 Emmen Center Emmen B+rücke 30,300 Centre Brügg Brügg bei Biel 18,708 Romanel Marché Romanel-sur-Lausanne 13,292 Shopping center Volki-Land Volketswil 24,270 Centre commercial Croset Ecublens 13,522 Aarepark Würenlingen 12,250 Sihlcity Zurich 42,466 Fribourg Centre Fribourg 15,263 Haag Center Haag 12,835 Métropole 2000 Lausanne 16,377 Pizolpark Mels 15,021 Westside Bern 25,865 Centre Manor Sierre Sierre 14,140 Centro San Antonino San Antonino 14,268 Serfontana Morbio Inferiore 21,957 Littoral Centre Allaman 16,382 Pilatusmarkt Kriens 21,500 Marin-Centre Marin-Epagnier 26,991 Avry-Centre Avry-sur-Matran 34,035 La Maladière Centre Neuenburg 19,742 Shoppyland Schönbühl 48,818 Stans Shopping center Länderpark 19,353 Wankdorf Center Bern 17,672 St Jakob-Park Shopping Center Basel 20,500 Shoppi&Tivoli Spreitenbach 67,627 Planete Charmilles Genève 17,000 Centro Lugano Sud Grancia 39,580 Shopping-Arena St Gallen 36,500 Shopping center Hinwil Hinwil 22,600 Centre Bahnhof Biel-Bienne Biel-Bienne 18,733 Rheinpark St Margrethen 20,854 Gäupark Egerkingen 40,470 Stücki Shopping Basel 32,000 Wohncenter Emmen Emmen 32,998

locationgroup research | Retail Market Study 2012

Selling space

77

Turnover

15 Swiss Merger and Acquisitions .

Migros makes its first public announcement concerning its stake in Vögele – 40 million franc in losses to date Taking over Charles Vögele is not an issue for Migros, despite the fact that the “orange monster” holds more than a 25 % share in the company directly and via its pension fund.

Migros acquired a stake in three companies in early 2008 and soon acquired a stake in Charles Vögele, the travel agency chain Kuoni and the financial services company VZ-Vermögenszentrum, with the lion’s share of the funds being expended on Kuoni in which Migros incrementally increased its share to 8.5 %. Migros’s financial department was far bolder when it comes to Charles Vögele, in which MGB and the Migros pension fund hold a 25.2 % stake, as the company reported to the SIX Swiss Exchange.

Migros manages all three of these holdings via options, to which end its financial department regularly sells or puts options, as the reports submitted to SIX shows. Such options entitle Migros to sell off shares within a fixed period at a fixed price. If the share price undercuts the option price, the company earns a high return by virtue of the leveraging effect. This instrument enables Migros to limit its currency-conversion loss on share purchases. Migros is no doubt particularly grateful for this advantage in connection with its Charles Vögele shares, which have gone down by around 80 % since Migros bought them.

Migros has at various times held up to seven put options on Charles Vögele shares with graded option prices and expiration dates. The company now holds six put options, all of which expire

in April 2012 at the latest. It is unlikely that Migros will be able to recoup its loss on the Charles Vögele shares – a loss that analysts estimate amounts to at least 40 million franc. Migros has also lost money on Kuoni, whose shares have declined by 55 %. However, the company’s VZ shares have increased by 25 %.

Charles Vögele hired a new CEO in September 2011, and also plans to terminate its sponsorship of Zurich Fashion Days.

Migros’s Dieter Berninghaus – an indefatigable CEO In 2009 Mr. Berninghaus wangled a stake for Migros in the German home furnishings company Gries Deco Holding, whose CEO, Christian Gries, Mr. Berninghaus counts among his friends. In 2012, Migros will increase its stake to 49 %, and will thus become the majority shareholder.

A massive logistics centre is being constructed in Niedernberg, Germany to meet the needs of Depot Group’s expanding operations.

The project, which will cost upward of 130 million franc, is probably Migros’s largest foreign project to date. During the cornerstonelaying ceremony, Mayor Jürgen Reinhard said the following, in reference to the strength of the Swiss franc: “Mr. Berninghaus, I can assure you that you will not be able to realise this project for less.”

The main element of the facility will be a 40 metre high shelf system with space for 120,000 palettes.

Orange sold to Apax On 23rd December, 2011, Apax Partners announced that it had concluded a contract concerning acquisition of the mobile phone operator Orange Communications SA (a member of the France Telecom Group) for around 2 billion franc. The transaction still awaits approval by Swiss authorities, and will be submitted for approval to the France Telecom board in January 2012.

With 1.6 million customers and the highest average per-user revenue, Orange is one of Switzerland’s leading mobile phone operators and registered sales amounting to 1.3 billion franc in 2010. Apax is one of the world’s leading private equity investment group funds, and is active in the US, in Europe and Asia. Apax Partners mutual funds currently amount to a total of 40 billion dollar worldwide.

Kuoni Holding completes the financing phase of its takeover of Gulliver‘s Travel Associates On 12th May, 2011, Kuoni Holding Travel AG wrapped up the financing phase of its takeover of Gulliver‘s Travel Associates (GTA). This acquisition has elevated Kuoni to the ranks of one of the leading providers of online destination management services. The acquisition was financed via credit facilities amounting to 600 million franc, a stock option emission amounting to 257 million franc, and cash on hand. Credit Suisse was the lead manager and sole bookrunner for the stock option emission and lead syndicate manager for the credit facilities.

Depot commercial

78

locationgroup research | Retail Market Study 2012

A double whammy for Dosenbach-Ochsner No sooner was it confirmed that Dosenbach-Ochnser AG (2010 sales: 949 million franc) is holding talks with Snipes Textil GmbH concerning a “strategic partnership” than the company, a member of the Deichmann Group, proceeded to snap up Beach Mountain’s activities.

Beach Mountain, which Andy Tanner opened in Zurich in 1985, was Switzerland’s first snowboard store and was sold to Jelmoli Holding in the mid 1990s. The company has six stores, in Zurich, Bern, St. Gallen, and Chur.

Beach Mountain commercial

Under the terms of the deal, Dosenbach-Ochsner will be operating directly under the aegis of Jelmoli in that the department store on Bahnhofstrasse will also have a Beach Mountain store. All of the Beach Mountain stores will remain in operation, except for the Glattzentrum store, which will become a new Dosenbach-Ochsner flagship store. The shoe and sporting goods group markets the brands Dosenbach, Ochsner Shoes, Ochsner Sport and Sport Lab in Switzerland. Dosenbach-Ochsner is a member of the Deichmann Group, which is based in Essen and whose 2010 sales amounted to 3,93 billion euro.

Coop acquires The Body Shop Switzerland AG As at 1st March, 2010, The Body Shop Switzerland AG was successfully integrated into the Coop Group. At the time of the takeover, The Body Shop had 37 Swiss stores, which employ 195 persons all of whom Coop will be keeping on. According to informed sources, the purchase price was 35 million franc.

Kuoni headquarter Hardbrücke, Zurich locationgroup research | Retail Market Study 2012

79

16 Switzerland’s highest-demand investment market of the past two decades .

Although Switzerland’s real estate sector continues to be blessed by low interest rates, the resulting high prices make the problem of market overheating a matter of major concern. But not all market segments and regions are equally affected by this evolution.

Shopping property markets are less likely to overheat since, unlike the housing market, the brief recession drove down demand in this sector.

For years now, the shopping property sector has been generating larger profits than any other real estate sector. We know from capital-market theory that high profits also entail high risk. In the shopping property sector, there is often a fine line between success and failure. International retail chains intensify the crowdingout process, to which only small businesses fell victim in the past, and in so doing also intensify the process of structural change, which proceeds apace in any case owing to changes in consumer behaviour and the tendency toward market saturation. More intensive structural change means that the cards are reshuffled, which in turn has an uncertain impact on market players, thus increasing the risk involved.

According to IPD Swiss Property Index surveys, Swiss institutional investors’ property holdings are now valued at around 140 billion franc, with aggregate market potential being put at 993 billion franc, around 178 and 111 billion franc of which are accounted for by office space and retail space respectively – compared to housing, which accounts for around 644 billion franc.

The Swiss Office of Statistics gives the retail sector a clean bill of health Consumer expenditures, and in particular consumer retail expenditures, proved to be a driver of growth in Switzerland during the crisis of 2008 and 2009. The latest statistics issued by the Swiss Office of Statistics confirm that the Swiss retail sector is still going strong (excluding fuels) as it exhibited real sales growth amounting to 1.9% in July 2011, compared to the prior year. However, the current loss of consumer confidence signals weakness in the sector.

Owing to Switzerland’s relatively small size and population, the Swiss real estate investment sector is a niche market for international investors. This will probably remain the case for the foreseeable future since the entry barriers are high, competition is scant, and the high margins and profits are already invested.

floor of many properties is currently used as retail space, and potentially valuable basements and upper stories are still largely disregarded.

Some segments are characterised by extensive oligopolies, which means that a handful of retailers control a relatively large share of their segment and are thus in a position to ward off competition from foreign retail chains more easily and more often than is the case in other countries. As a result, the margins of these retailers are disproportionately higher than those in other countries. Switzerland has always had a low level of segment specialization for classic retailers as well as discounters, and even a successful discount supermarket chain such as Aldi has for years fallen far short of servicing the entire Swiss market, i.e. the company is not able to open stores throughout Switzerland.

International-retailer expansion Despite the daunting conditions faced by new market players, Switzerland is an extremely appealing market since retail sales have remained stable thanks to uninterrupted demand and the influx of 70,000 (largely German) workers – a figure that is on the rise in some segments. The sales of retailers that specialise in or also carry high-end wares have increased in Switzerland, whereas in other countries in the wake of the economic crisis this is one of the segments where sales have tended to collapse most dramatically.

The advantages of Switzerland for high-end retailers can be best illustrated by comparing store counts in Switzerland and Germany. The market leader Louis Vuitton has seven flagship stores in Switzerland and “only” ten in Germany, and the situation is much the same for many other well established retailers, regardless of sector.

Switzerland

Germany

Ratio

Moncler

6

1

600 %

Hermès

10

13

76 %

Gucci

6

8

75 %

Louis Vuitton

7

10

70 %

Prada

3

5

60 %

Ermenegildo Zegna

3

6

50 %

Multibranch ratio A store lease for a well frequented location generally yields a 75 % ROI, mainly resulting from leasing of the retail space. However, Switzerland’s multibranch ratio is far below average when compared with other countries. While this means that Switzerland still has many non-chain stores, it also means that only the ground

80

locationgroup research | Retail Market Study 2012

Coop acquires Volkiland from Swiss Prime Site The Volkiland shopping mall in Volketswil was sold for 280 million franc, including the adjacent Unter Höh retail and commercial complex adjacent to the mall.

ECE (the self-proclaimed leading operator of European downtown shopping malls) also conducted a thorough assessment of the sale of Volkiland. ECE operates Basel’s Stücki mall, among others.

The mall is frequented by 50,000 visitors weekly. The scope of Volkiland’s retail space is on par with that of Letzipark in Zurich and Westside in Bern. Volkiland generated 205 million franc in sales last year, three times less than the Glattzentrum in Wallisellen, which is Switzerland’s leading shopping mall in terms of sales.

Coop will be retaining the same management and operating style as the former operator, Swiss Prime Site. The mall was last remodelled in 2003, and no remodelling is currently planned.

Bern’s Wankdorf stadium changes hands Thanks to an investment from the UBS real estate and pension funds, the shopping mall at Bern’s Stade de Suisse is once again in Swiss hands.

Wankdorf Centre, the shopping mall under the Stade de Suisse soccer stadium, has once again changed hands after five years. The stadium was built in 2005 as a joint venture of Coop, Suva and Winterthur. Construction of the building complex as a whole cost more than 300 million franc. The mall was purchased by Cologne-based Dr. Karl Bartel in 2006 only a few months after it opened.

The soccer stadium was purchased from Stade de Suisse Wankdorf Nationalstadion AG, which is jointly owned by BSC Young Boys and Andy and Hans-Ueli Rihs. There have been various rumours in the past that both the stadium and BSC Young Boys might be put up for sale. But by recently naming Christian Gross as the new BSC Young Boys trainer, the shareholders reaffirmed their commitment to the club. And in any case, the price would have to be right in order for the club to be sold.

PSP to leave everything as it is at Vorderer Sternen in Zurich As of 30th September, 2011, the real estate portfolio of Switzerland’s second largest (and listed) real estate company PSP comprised 168 office buildings and commercial buildings, plus six appealing property development areas and two individual projects. The portfolio’s balance sheet value was 5.714 billion franc as at said date, versus 5.518 billion franc as at the end of 2010. No acquisitions were effected during the reporting period, and six properties were sold for an aggregate 55.4 million franc, 18 % more than in the prior reporting period.

Ongoing property development activities continued according to plan. Noteworthy in this regard is the start-up of construction in Gurtenareal in Wabern near Bern, as well as submission of a new building permit application for the Paradiso area in Lugano. Forty of the 101 Gurtenareal condos have been reserved. In July 2011, construction began on the new Vorderer Sternen office and restaurant complex at Theaterstrasse 22 on Zurich’s Bellevue square, which is slated for completion in the spring of 2013 at a cost of around 12 million franc. In addition, renovation of the around 700 square metre Kesselhaus office building in Zurich’s Hürlimann-Areal was recently begun and will cost around 5 million franc.

The Habas Group sells off one of its Swiss real estate companies On 31st May, 2011, the Habas Group sold one of its Swiss real estate companies, Habas Swiss Investments AG III, which owns more than 7,000 square metres of retail space in Zurich and Bern cantons. The Habas Group has affiliates in Tel Aviv, Amsterdam, and New York.

Coop, Suva and Winterthur indicated at the time that co-ownership by three companies had become problematic, as it had become difficult to reach decisions.

This situation prompted the owners to accept Bartel GmbH’s offer. Bartel is the founder of Dr.-Eberts-&Partner-Gruppe, which owns office buildings, hotels, and senior-citizens apartments. Although the purchase price was not disclosed at the time, it was reported that Bartel was aiming for a 5 % to 6 % ROI. The Sima real estate fund acquired an around twothirds stake in the property, with the rest going to the Swissreal real estate fund and the UBS investment foundation investment groups Immobilien Schweiz and Kommerzielle Immobilien Schweiz. Wankdorf Centre is thus not directly owned by UBS, as the real estate funds and investment foundation are separate legal persons. Any investor can buy shares on the stock market in UBS Sima und UBS Swissreal, and thus become an indirect investor in Wankdorf Centre.

Volkiland, Volketswil locationgroup research | Retail Market Study 2012

81

82

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

83

17 Germany – a major focus of domestic and international retailers .

The run on top-notch retail locations continued apace in 2011. According to the expansion executives we spoke to, German cities are subject to exact rankings in terms of priority. Munich indisputably heads the wish lists of expansion executives, followed by Hamburg, Dusseldorf, Frankfurt, Berlin and Stuttgart, and then by Cologne, Hannover, Leipzig and Dresden. That said, high-end retailers tend to be pretty tight-lipped about their expansion plans.

In 2012 the company will be looking for a concept store for Pull & Bear, and will be rolling out its Oysho concept in 2013. What’s more, it’s only a matter of time before efforts are made to establish Stradivarius and thus create in both pedestrian zones and shopping malls an Inditex “world” modelled on exemplars in Spain and Europe. Hence, the company has an enormous need for space, owing to its accelerated expansion program.

All eyes on the Inditex Group In the shopping property sector, the main focus is on large retailers and in particular on the Inditex Group, which has a large need for shopping mall spaces averaging 1,500 square metres in size for its Zara, Zara Home, Bershka and Massimo Dutti stores.

US retailers out in force Store openings and the conclusion of store leases by Abercrombie & Fitch, Hollister, Forever 21, Primark and Apple, to name a few, continue to generate excitement and also clearly indicate demand for retail spaces in well frequented locations will remain strong

Apple 5th Avenue, New York

84

locationgroup research | Retail Market Study 2012

going forward. There is also intense speculation that retailers such as Victoria’s Secret, J. Crew, Oasis, New Look and Uniqlo may be planning to open stores in Germany. Even Gap is interested in returning to Germany, and while no specific dates have been set, feelers are likely to have been extended.

Apart from classic retailers, the US retailer Michel Kors has European expansion plans, particularly in Germany, and plans to open around 50 European stores, four of them in Germany. „We are currently scouting out locations in Hamburg, Berlin, Dusseldorf and Frankfurt,” said CEO John D. Idol at the opening of the company’s Paris flagship store during Fashion Week. “Our Munich store is doing great and is driving our German wholesale business,” Mr. Idol added.

Calzedonia planning 50 new stores Smaller stores such as those operated by the Italian retailer Calzedonia have also folded Germany into their expansion plans. Calzedonia Vice President Expansion Michele Groppo is raring to go in this regard: “We’ve already concluded 15 leases, and a total of 50 stores are slated for opening in the coming year.”

But international retailers that have long been established in Germany also have expansion plans, since Germany has more than 186 cities with a population of more than 50,000. H&M, Zara, Bestseller, Tally Weijl, and G-Star are all looking to expand their German activities. The German market has an extremely good reputation, and thus the demand for top-notch locations is growing steadily.

Primark continues its German expansion program and will also be expanding in Austria This was confirmed by Thomas Meager, Director of Property of the Irish clothing discounter Primark. “We’ve already secured the first two locations in Berlin, among others,” Mr. Meager says. The company plans to open two large stores by the end of 2012 in the Schlossstrasse shopping mall in Berlin’s Steglitz district. Primark will also be taking over the 6,500 square metre former Saturn store on Alexanderplatz at some point after 2012.

Primark, which will also be opening a 5,300 square metre store in Saarbrücken in early 2012, currently has stores in Berlin, Bremen, Essen, Hannover, Frankfurt, Dortmund and Gelsenkirchen. According to Mr. Meager, these stores count among the most successful in the company’s fleet.

Premium and luxury retailers are also expanding their presence in Germany Maximilianstrasse is by far Munich’s most popular street among both tourists and shoppers. Neuer Wall in Hamburg, Königsallee in Dusseldorf, Goethestrasse in Frankfurt and Kurfürstendamm in Berlin are also dear to the hearts of shoppers as they offer a virtually complete selection of the most prominent retailers’ wares.

Demand for retail space on these streets is high, but such space is hard to come by.

locationgroup research | Retail Market Study 2012

Hence the search for retail space goes on, a phenomenon that mainly works to the benefit of landlords in the guise of steadily increasing rental income. ROI on shopping real estate is on the rise, with properties fetching prices that not long ago would have seemed completely out of reach. And it’s not only because of European investors from outside Germany that retail space is in short supply.

Munich – undisputed leader, still With store rents running to 320 euro per square metre, Munich is the leader in this sphere, followed by Frankfurt, with rents of up to 280 euro. In Dusseldorf and Hamburg, store rents range up to 250 euro per square metre (according to the real estate company JLL), followed by Berlin (240 euro), Stuttgart and Cologne (235 eutos and 230 euro, 6th and 7th respectively). The smallest city among the top ten is Münster, whose store rents are holding steady at 155 euro per square metre. Real estate industry analysts are expecting rents to rise in half the cities in this group. In contrast, per square metre prices in the former East Germany remain unchanged, with (to take two examples) stores on Leipzig’s Grimmaische Strasse and Dresden’s Prager Strasse going for 115 euro and 110 euro per square metre respectively.

Purchasing power set to rise in Germany According to the consumer research organisation Gesellschaft für Konsumforschung (GfK), purchasing power in Germany is set to rise considerably in 2011. According to GfK’s estimates in their recent purchasing-power study, purchasing power in Germany will increase by 499 euro per capita relative to the prior year, and aggregate German purchasing power will amount to 1,61 billion euro, a 2,6 % increase over 2010. Thus in the coming year, each German will have nearly 20,000 euro of disposable income for items such as consumer products, rent, and the cost of living. According to GfK, this evolution is mainly attributable to Germany’s rapid recovery from the financial crisis, as well as increased life expectancy.

Bavaria is the German state with the highest purchasing power, amounting to 21,326 euro per capita, followed by Hamburg (21,320 euro), which moved up two rankings, causing the rankings of Hessen (21,187 euro) and Baden-Württemberg (21,000 euro) to each slip one notch. These states are followed by Schleswig-Holstein, North Rhine-Westphalia, Rhineland-Palatinate, Lower Saxony, Saarland, Bremen, Berlin, Brandenburg, Thuringia, Saxony, and Mecklenburg-West Pomerania. Saxony-Anhalt came in last with average purchasing power amounting to 16,421 euro.

In the sphere of urban districts and their rural counterparts Hochtaunuskreis ranks first with nearly 29,000 euro, followed by Landkreis Starnberg with around 28,000 euro and Landkreis Munich and Main-Taunus-Kreis with around 27,000 euro.

85

Relevant purchasing power Purchasing power index for retail (in mio. euro) The purchasing power index represents 16,779,6 the net wages of inhabitants within a specific region. It therefore reflects the demand potential of endconsumers at a location.

9,626,7

Relevant purchasing power index for retail

Inhabitants in city region Relevant purchasing power for retail (in mio. euro)

Relevant p Develo index for re

1,247

16,779,6

1,247120

114,3

109,3

8,505,4 1,770,629

Berlin Hamburg HamburgMunich MunichFrankfurt Frankfurt Stuttgart Stuttgart Düsseldorf Berlin Düsseldorf

129,2129,2 127,7127,7

Retail revenue (in Mio. Euro); there Retail revenue (in Mio. Euro); there in the center (in %) of inofthe city city center (in %)

121,6121,6

116,5116,5 114,5114,5

Rele Relevan (in 1 (in 1,000 cent( center

17,240 17,240 2,1402,140

4,5624,562 521 521

110,1110,1 10,461 10,461 9,639 1,8171,817 9,639 2,8302,830

12,4 12,4

29,4 29,4

4,1174,117 4,0604,060 4,0024,002 1,5101,510 1,6661,666 1,3001,300

17,4 17,4

36,7 36,7 41,0 41,0 32,5 32,5

Hamburg Munich Düsseldorf Stuttgart Frankfurt BerlinBerlin Hamburg Munich Düsseldorf Stuttgart Frankfurt

Stuttgart Düsseldorf Munich Hamburg Frankfurt Stuttgart Düsseldorf Munich Hamburg Frankfurt BerlinBerlin

Inhabitants in city region

120

114,3

109,3

108,4

104,5

3,416,255

100

94,4

80

1,656 446

4,117 1,510

11,4

Hamburg Munich Düsseldorf Stuttgart Frankfurt Berlin Hamburg Munich Frankfurt Düsseldorf Stuttgart

12,2

26,9

Quelle: Gfk GeoMarketing GmbH, 2010 Quelle: Gfk GeoMarketing GmbH, 2010

60

1,770,629 1,040 252 24,2

889 332 37,3

659,021

39,0

597,176

581,122

Hamburg Munich

Frankfurt Stuttgart Düsseldorf

Source: Gfk GeoMarketing GmbH, 2010

Retail space per inhabitant (in sqm) Retail space per inhabitant (in sqm)

120

1,6 109

112

116

117

118

120

121

122

95

80 60

111

115

1,6

1,5 1,5

1,5 1,5

1,4 1,4

1,3

1,3 1,3

1,3

88 77

40 20 0

1990 Year

seldorf

1993

1995

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: HDE Hauptverband des Deutschen Einzelhandels

mbH, 2010

Frankfurt Düsseldorf Stuttgart Hamburg Frankfurt Düsseldorf Stuttgart Hamburg Berlin Berlin Munich Munich Source: Gfk GeoMarketing GmbH, 2010

Source: Gfk GeoMarketing GmbH, 2010

86

20 0

Berlin

Quelle: Gfk GeoMarketing GmbH, 2010 Quelle: Gfk GeoMarketing GmbH, 2010

Development of retail spaces in Germany (in Mio. sqm)

7

40

1,311,573

849 331

Berlin Hamburg Munich Frankfurt Stuttgart Düsseldorf Munich Düsseldorf Frankfurt Stuttgart Hamburg Berlin

114

BerlinBerlin Ha

Develop

2,520 308

4,060 4,002 1,666 1,300 3,745,6 3,455,3 3,368,0 41,0 36,7 32,5

11,4 11,4

Quelle: Gfk GeoMarketing GmbH, Quelle: Gfk GeoMarketing GmbH, 2010 2010

Quelle: Gfk GeoMarketing GmbH, Quelle: Gfk GeoMarketing GmbH, 2010 2010

8,505,4

100

Munich Düssel

Source: GeoMarketing GmbH, Quelle: Gfk Gfk GeoMarketing GmbH, 20102010

Centrality index Centrality index

Retail turnover is the sum of expenses end-consumers shop for within a spe10,461 9,639 1,817 cific region.

2,830

2010

Berlin

Quelle: Gfk GeoMarketing GmbH, 2010

4,562 1,247 521

Berlin

20 0

Munich Düsseldorf Frankfurt Stuttgart Hamburg

17,240 2,140 16,779,6turnover Retail

17,4

40

3,745,6 3,455,3 3,368,0 659,021 597,176 581,122

Relevant sales spaces in retail Relevant purchasing power (in 1,000 sqm); thereof in the city index for (in retail center %)

12,4

60

1,311,573

National average = 100 An index of more than 100 means that purchasing power accrues from the environs – the region has more retail turnover than the inhabitants purchasing power would permit. If the index is below 100, purchasing power drains to the environs and the retail Retail revenue (in Mio.than Euro); there turnover is lower the purchasing of inRelevant the city center (in %)power purchasing power of its inhabitants. for retail (in mio. euro)

29,4

100

94,4

8,505,4

Quelle: Gfk GeoMarketing GmbH, 2010

81,122

104,5

80

Centrality index Centrality Index represents the difference between revenue and purchasing power index. It describes how purchasing power drains of to the environs, or accrues from the environs respectively.

9,626,7

114

3,416,255

9,626,7

National average = 100 An index of more than 100 provides in3,745,6 3,455,3 3,368,0 formation that the purchasing power is above average; an index of less than 100 indicates a below-average local Berlin Hamburg Munich Frankfurt Düsseldorf Stuttgart purchasing power.

1

108,4

locationgroup research | Retail Market Study 2012

19 Ye

pilgrim.dk / find nearest retailer at pilgrim.dk/stores

Rent index Germany

88

Rent in Euro / Square meter per month

Size of the store

80-120

150-200

350-400

1,200-1,500

Frontage

5-6m

7-8m

9-10m

12-15m

Munich

Kaufinger/Neuhauser Strasse

350

280

260

140

Maximilianstrasse

250

210

190

120

Rosenstrasse/Rindermarkt

210

180

160

90

Weinstrasse/Theatinerstrasse

200

170

140

90

Sendlinger Strasse

190

175

120

60

Leopoldstrasse

130

120

70

35

FRANKFURT

Zeil

280

200

170

100

Goethestrasse

190

160

125

70

An der Hauptwache/Biebergasse

180

150

110

70

Grosse Bockenheimer Strasse

175

155

120

70

Kaiserstrasse/Rossmarkt

115

90

70

40

Schillerstrasse

110

85

65

40

HAMBURG

Spitaler Strasse

280

230

180

110

Mönckebergstrasse

250

220

170

110

Neuer Wall

225

200

160

80

Jungfernstieg

185

160

120

80

Poststrasse/Gerhofstrasse

180

150

100

70

Grosse Bleichen

110

95

80

50

ABC Strasse/Hohe Bleichen

75

55

48

25

STUTTGART

Königstrasse

250

210

190

95

Büchsenstrasse/Schulstrasse

150

130

100

70

Hirschstrasse/Kirchstrasse

80

70

55

30

Calwer Strasse

60

50

40

20

DÜSSELDORF Schadowstrasse

230

150

110

70

Königsallee

220

140

90

60

Flinger Strasse

200

130

90

60

Mittelstrasse

100

70

50

20

KÖLN

Hohe Strasse

220

160

120

70

Schildergasse

260

190

140

90

Ehrenstrasse

95

75

45

25

Neumarkt

85

70

35

20

Breite Strasse

80

55

37

15

BERLIN

Kurfürstendamm/Tauentzien

210

160

120

70

Friedrichstrasse

130

100

85

65

Alexanderplatz

120

90

70

50

Hackescher Markt

110

90

70

55

Schlossstrasse

105

80

55

35

Wilmersdorfer Strasse

85

75

50

35

DORTMUND

Westenhellweg

200

160

110

70

Ostenhellweg

120

95

60

40

LEIPZIG

Petersstrasse

125

90

65

45

Grimmaische Strasse

125

90

65

45

Nikolaistrasse

60

45

30

20

Hainstrasse

55

40

25

18

DRESDEN

Prager Strasse

100

80

55

40

locationgroup research | Retail Market Study 2012

18 Berlin with a renaissance in Charlottenburg – and how .

BERLIN is the capital of Germany, and as a city-state is also a state that comprises the centre of Metropolregion Berlin/ Brandenburg (the Berlin-Brandenburg metropolitan area).

With 3,45 million inhabitants, Berlin is Germany’s most populous city, and with surface area of 892 square kilometres is the largest city in Germany and the second largest in the EU. The ever-growing influx of visitors from Europe and beyond reflects the popularity of this unique metropolitan area.

Hardly any other city in the world has so many districts that to all intents and purposes function independently of each other. The downtown area of Berlin has become increasingly popular among retailers in recent years, particularly Friedrichstrasse, Hackescher Markt and Potsdamer Platz.

Berlin’s retail sector has remained on an even keel, the crisis notwithstanding This finding comes from a market study by the retail-sector experts Jones Lang LaSalle titled Retail Ticker Berlin, which investigated Berlin’s key shopping streets and found that they were virtually unchanged relative to the prior year.

Store rents, which range up to 220 euro per square metre, have remained stable. A brief study by Kemper‘s Jones Lang

Brandenburger Tor, Berlin

Salle Retail came to the same conclusion.

All in all, according to these studies, Berlin generated the highest retail clothing sales in Germany for both women’s and men’s clothing. The 861 million euro in sales of women’s clothing are considerably higher than the 766,8 million euro in purchasing power for this sector in Berlin.

Bears on the Ku‘damm, Berlin locationgroup research | Retail Market Study 2012

89

TOP TEN GERMAN DISTRICTS (KREISE) FOR WOMEN’S AND MEN’S CLOTHING SALES Urban/rural district

Women’s retail clothing sales (EUR mio.)

Women’s clothing purchasing power (EUR mio.)

Men’s retail clothing sales (EUR mio.)

Men’s clothing purchasing power (EUR mio.)

SK Berlin

861,0

766,8

421,9

336,5

SK Munich

619,4

441,5

333,0

208,9

SK Hamburg

566,4

492,5

290,4

223,1

SK Köln

394,4

282,5

169,0

130,0

AK Frankfuhrt Main 321,1

194,7

165,0

87,0

283,5

170,1

135,4

77,7

LK Region Hannover 243,3

300,6

118,7

143,4

SK Stuttgart SK Düsseldorf

232,2

177,2

117,6

82,6

SK Nürnberg

223,7

134,9

114,5

60,5

SK Mannhein

175,2

78,5

89,0

60,8

Source: GfK clothing retail sales in 2011

A renaissance in Charlottenburg – and how!

Berlin’s Charlottenburg district has been experiencing a truly amazing resurgence over the past two years. The focus of interest for international retail chains is the Kurfürstendamm area, where retail space has been in great demand since Hermès decided to focus on its two Kurfürstendamm stores.

At Kurfürstendamm 185, California-based denim retailer 7 For All Mankind opened its second store, a split-level 125 square metre space that is the company’s fourth German store.

Hermès leaves Berlin-Mitte The Hermès flagship store at Kurfürstendamm 58 reopened in Sep-

Hermès Kurfürstendamm, Berlin

tember 2011 after six months of renovation, and with 250 square metres of space, up from 220 in its previous incarnation. Prior to this, Hermès closed its boutique at Berlin’s Friedrichstrasse 171, and at the same time, in the fall of 2011, opened a franchise at KaDeWe, in whose 150 square metre ground-floor space Hermès will be selling its wares for the first time in a so called Luxusboulevard.

Prada opens new flagship store In February 2011, Prada opened a split-level 500 square metre flagship store in Berlin following an eight-year absence from the city.

Prada Kurfürstendamm, Berlin

90

locationgroup research | Retail Market Study 2012

mani has found it necessary to postpone the planned opening of its store next door until January 2012.

Budapester Schuhe replaces Butlers; Dolce & Gabbana replaces Tizian Budapester Schuhe will be opening a new 360 square metre store at Kurfüstendamm 203-205 in March 2012 in a space formerly leased by Butlers.

7 For All Mankind Kurfürstendamm, Berlin

Peuterey opens second store in Berlin (having opened its first in Milan); Armani shopfitting behind schedule In June 2012, the Italian company Geo Spirit will be opening a 150 square metre store for its Peuterey products at Kurfürstendamm 54. The previous tenant, Brille 54, has signed a lease for the former Elegance space and will be opening there in July 2012. Giorgio Ar-

In January 2012, Dolce & Gabbana will be opening a 647 square metre store at Kurfürstendamm in the former Tizian Schuhe space.

Leiser will be opening a new 300 square metre Tizian store at Kurfürstendamm 45.

A new 580 square metre Lösche Pelze store will be opening in the former Mercedes showroom on Berlin’s Kurfürstendamm.

Karen Millen Kurfürstendamm, Berlin locationgroup research | Retail Market Study 2012

91

Bershka coming to Tauentzienstrasse In the fall of 2011, Bershka opened its first German store on Berlin’s Tauentzienstrasse, only a few steps away from Desigual and Vero Moda in the space formerly leased by the fashion retailer Appelrath Cüpper. The 1,550 square metre split-level store is also Bershka’s largest location worldwide.

Cotton On, Jack Wolfskin and Steiff The Australian retailer Cotton On opened its first German store this past spring on Kurfürstendamm. A second Berlin store is planned for Wilmersdorf Arcaden, and a third for the Boulevard Berlin shopping mall.

Jack Wolfskin also inaugurated a 285 square metre store at Kranzler Eck on Kurfürstendamm in September. The deal for this – the outdoor specialist’s 231st German store – was brokered by BNP Paribas Real Estate.

In June, Steiff opened a 145 square metre store on Kurfürstendamm in the former Jack Wolfskin space.

Things are happening in the shopping portion of Prachtmeile The past few years have been unusually eventful on Prachtmeile: the world-renowned KaDeWe department store in Berlin now has Louis Vuitton, Prada, Bulgari, Gucci, and Chanel shops; Peek & Cloppenburg’s Weltstadthaus solidified the company’s reputation; and Saturn opened its largest store at Europacenter. And last but not least, the opening of the Bershka store attests to the impressive changes that have taken place in this former West Berlin district.

Apple to open its largest European store in Berlin 2012 will see the opening in Berlin of the largest European Apple Store in close proximity to Gedächtniskirche. Apple will be leasing Haus Wien at Kurfürstendamm, which has around 5,000 square metres of retail space.

Bikini Berlin complex and Waldorf Astoria Renewed efforts are being made to revitalise the Bikini Berlin complex, which is located at Bahnhof Zoo train station and in close proximity to Apple, Gedächtniskirche and Europacenter. These efforts, which are aiming at optimizing the complex’s appeal as a retail location beginning in the fall of 2012, will be strengthened by the presence of Berlin’s Waldorf Astoria Hotel. In addition to prominent retailers, the boutique hotel 25 Hours will be moving in. Some 60 % of the complex’s around 23,000 square metres of floor space will be reserved for clothing stores, while 20 % will be given over to restaurants and cafes, and 5 % each will be devoted to health, technology, lifestyle and specials. The complex got its name when it was first built, by virtue of the fact that the middle floor was an open arcade, and thus the building was composed of two elements, like a bikini. This open level was closed off in the late 1970s.

The up and coming Steglitz district Retail stores are also continuing to spring up in the former West Berlin district of Steglitz. In March 2012 Multi Development will be opening its Boulevard Berlin shopping mall, which will feature Zara, H&M, Beshka, Zara Home, Esprit, s.Oliver and other stores.

Thus yet another shopping mall will be opening in the central portion of Schlossstrasse, the street’s fourth in addition to Forum, Schloss and Schlossstrasse. The project is a joint venture with

Bershka opening Tauentzienstrasse, Berlin

92

locationgroup research | Retail Market Study 2012

KaDeWe Tauentzienstrasse, Berlin

Alexa shopping center Alexanderplatz, Berlin locationgroup research | Retail Market Study 2012

93

True Religion Münzstrasse, Berlin

Scotch & Soda opening Hakescher Markt, Berlin

Karstadt-Haus department store, which has already opened. After Zara relocates to Boulevard Berlin, Primark will be moving into the Schlossstrasse mall.

Friedrichstrasse loses high-end retailers The aforementioned evolutions appear to be working to the detriment of Berlin’s Friedrichstrasse, where Gucci and Yves Saint Laurent shuttererd their stores at Quartier 206. Hublot also sent a signal by relocating to Kurfürstendamm. It will also be interesting to see what Louis Vuitton decides to do when its lease expires next year. It appears likely that an increasing number of consumer goods stores will be opening on Friedrichstrasse.

Between Potsdamer Platz and Alexanderplatz The first tenants have been announced for the shopping mall on Berlin’s Leipziger Platz that was a joint venture of Orco and High Gain House Investment (HGHI). The Inditex Group will be opening a 2,000 square metre Zara store in the mall, where Esprit will be leasing a 1,448 square metre space and Tommy Hilfiger will have a franchise store. According to HGHI, 80 % of the mall’s 52,000 square metres of retail space has been rented. Construction of the 450 million euro mall began in January 2011 and the facility is slated to open in late 2013 or early 2014.

Berlin Mitte – tremendous potential Karl-Heinz Müller gave himself a birthday present by opening, in partnership with Hamburg manufacturers, the first ‘Closed by 14 oz.’ store on Alte Schönhauser Strasse in the Berlin-Mitte district.

The 140 square metre store features a new and distinctive retail concept that combines Closed collections with the 14 oz. philosophy.

Mango, Primark, Scotch and Soda, Pointer In early 2011 Mango opened a new Berlin store at Rosenthaler Strasse.

Primark will be opening a 6,500 square metre store in the heart of Berlin at Alexanderplatz 3.

The property was previously occupied by Saturn, which operates another store on Alexanderplatz. As noted, Primark will be opening a new store at the Schlossstrasse mall.

The Dutch young-fashion retailer Scotch & Soda opened its first Berlin store in July 2011 in a 150 square metre space at Münzstrasse 1416 on Hackescher Markt.

And in the same month, the London-based shoe retailer Pointer celebrated the opening of its first international store on Münzstrasse.

Galerie Lafayette Friedrichstrasse, Berlin

94

locationgroup research | Retail Market Study 2012

The around 100 square metre store carries not only stylish sneakers, but also clothing and accessories from other retailers such as Bleu de Paname, Barbour, Garbstore, Heritage Research and Anderson. (Source: Textilwirtschaft) Timberland, True Religion and Eastpak In the summer of 2011 Timberland opened a 300 square metre store on Friedrichstrasse. In July 2011, the denim retailer True Religion opened its third German store, at Münzstrasse, the other two being in Cologne and Hamburg. In early July, the marketing agency Styleheads celebrated with Eastpak the opening of a 70 square metre store.

Sandro and Maje makes its German debut The French fashion retail chain Sandro and Maje opened their first German store in May 2011 at Rosenthaler Strasse in Berlin-Mitte.

A second store is slated for opening in the latter half of 2012 on Friedrichstrasse.

Pointer Shoes Münzstrasse, Berlin

AllSaints Spitalfields opens its second store in Berlin Having moved forward with its German expansion program by opening an additional store in Berlin in late 2010, the British young-fashion retailer AllSaints Spitalfields has now opened another store at Rosenthalerstrasse in a 1,000 square metre space. The company has a third store on Friedrichstrasse in Berlin.

Ellesse opens flagship store in Berlin In October 2011, Ellesse opened its first European flagship store at Weinmeisterstrasse in Berlin-Mitte. Ellesse, an Italian sportswear retailer that is a member of Britain’s Pentland Group, has only one other flagship store of this type, in Japan. The interior design of the 100 square metre space is modelled on that of a sports arena.

All Saints Spitalfields Rosenthaler Strasse, Berlin

Location Group moves to Berlin The branch that the Location Group will be opening in Berlin will be an exciting colourful addition to Berlin, which many consider to be Europe’s liveliest metropolis.

Kurfürstendamm

20

30

40

50

60

Brandenburger Tor, Friedrichstrasse,

70

80+

Frequency downtown Berlin (per day in 1,000)

locationgroup research | Retail Market Study 2012

95

7KH 5HWDLO 5HDO (VWDWH 1HWZRUN

96

locationgroup research | Retail Market Study 2012

19 Munich – the top address for international retail chains .

MUNICH is the capital of the German state of Bavaria and Germany’s third largest city after Berlin and Hamburg. The Munich metropolitan area has around 5.1 million inhabitants and is regarded as one of Europe’s most affluent conurbations. Munich has the highest purchasing power of all major German cities, along with the lowest unemployment rate. In addition, the city’s population is expected to grow by around 300,000 next year.

Nearly 15,000 passers-by an hour have been counted at peak times in the most desirable areas of the Kaufinger Strasse and Neuhauser Strasse pedestrian zones. This outstanding frequentation rate is also reflected by the fact that Munich’s downtown stores generate sales of 6,300 euro per square metre a year, the highest in Germany.

The choicest locations for consumer goods stores in Munich’s best frequented shopping areas with the highest per square metre sales are on Kaufinger Strasse, Neuhauserstrasse and Marienplatz where the international-retailer stores are located. The denizens here include, to name but a few, Apple, Esprit, Kaufhof (the company’s highest sales volume branch) and Karstadt with its building on Oberpollinger, which was recently transformed into a world-class facility. Oberpollinger is one of the world’s most expensive top 10 shopping streets.

Forever 21 to pay annual rent amounting to 7,8 million euro for a space at Joseph-Pschorr-Haus Upgrading the Joseph-Pschorr-Haus at Neuhauser Strasse 19-21 has heightened the property’s appeal. The facility’s new tenants include its anchor tenant Sport Scheck, which leases 10,000 square metres, and Mango which has 2,300. The US retail chain Forever 21 will reportedly be paying 650,000 euro a month rent for its 6,800 square metre flagship store, which will be opening in 2013.

Deichmann will be opening an 800 square metre store at Neuhauser Strasse 47 in 2012.

In addition to its Neuhauser Strasse location, Mango will also be opening a 700 square metre branch in Maendler-Haus on Theatinerstrasse. According to an informed source that entered into negotiations to lease the space but then withdrew, Mango will be paying astronomical rent for the space. After 76 years at the same location at Theatinerstrasse 7 in Munich, Michael Maendler will be relocating his women’s fashions store. “We have a number of options and expect to be relocating soon,” said Mr. Maendler, whose current lease expires in mid 2012.

Munich – more luxury stores than any other German city Maximilianstrasse and Perusastrasse are the quintessence of a luxury shopping street, although Perusastrasse is far more frequen-

Joseph-Pschorr-House Neuhauser Strasse, Munich locationgroup research | Retail Market Study 2012

97

Maendler & Zara Theatinerstrasse, Munich

Bottega Veneta Maximilianstrasse, Munich

ted thanks to its proximity to Marienplatz and Theatinerstrasse. The high-end retailers with outposts on these streets include, to name but a few, Gucci, Dolce & Gabbana, Jil Sander, Louis Vuitton, Moncler, Prada and Ermenegildo Zegna.

Panerai opened the first store in Germany in Munich Officine Panerai has opened its first boutique in Munich on Maximilianstrasse, the world-famous luxury-shopping street, next to Gucci. The boutique offers customers and enthusiasts an understated, elegant ambiance in which to see and purchase all the models in the Panerai collections as well as the Italian luxury watch brand’s most sought-after special editions. The new 35-square-metre Panerai boutique in Munich has a simple, classic Italian-style environment.

Coming in 2013 – Louis Vuitton Maison A Louis Vuitton Maison store whose opening is slated for the fall of 2013 is currently being shopfitted in the former Residenzpost at the corner of Maximilianstrasse and Residenzstrasse.

Tom Ford will be opening, with Marion Heinrich, his first women’s store in Munich, at the corner of Maximilianstrasse and Falckenbergstrasse.

Rents at this location average 250 euro per square metre.

Schlichting to reopen on Maximilianstrasse Four decades ago, the venerable family owned company Schlichting was a permanent fixture of the former Rathauslichtspiele building, which is right near Frauenkirche. But the company decided to embark upon an ambitious relocation, and since August 2011 has been servicing its customers in an exclusive venue on Maximilianstrasse (at Karl-Scharnagl-Ring).

This relocation is of pivotal importance to Schlichting, since the 1,200 square metres of space in the new location offer more room for quality maternity and children’s products, which Schichting also sells beyond the borders of Munich.

Moncler opens first German store in Munich The Italian sportswear maker and down specialist Moncler opened its first German monolabel store in December 2010. Moncler CEO Remo Ruffini took over 110 square metres of the space, which represents half of the existing Bally store on Munich’s Maximilianstrasse. Shopfitting is about to get underway. “It’ll be a small store, but it’s the right location,” says Mr. Ruffini. He also points out that this project is fully in keeping with his strategy of focusing solely on exclusive winter sports locations, since, as he says, “Munich is a luxurious alpine city.”

Tom Ford Falckenbergstrasse, Munich

98

locationgroup research | Retail Market Study 2012

Ermenegildo Zegna takes over from Rena Lange In December 2010, the Italian outfitter Ermenegildo Zegna, which already has stores in Dusseldorf, Hamburg and Hannover, opened its sixth German store, on Maximilianstrasse in Munich. The company’s visionary founder, Ermenegildo Zegna, was honoured on the occasion of the company’s centenary anniversary.

Bottega Veneta opens store Munich’s Maximilianstrasse acquired a magnificent new boutique in March 2010 when Bottega Veneta celebrated the opening of its new location in the former Gianfranco Ferré space, with glamorous guests in attendance and champagne for all.

Bottega Veneta Creative Director Tomas Maier turned up to personally dedicate the store, which he designed in a manner that is true to the Italian company’s dictum that all interior-design elements must be made to order. The results speak for themselves. The new split-level boutique has nearly 260 square metres of floor space, ultrasuede-covered walls, New Zealand-wool carpeting, elegant rounded hardwood tables, leather-covered doors, and minimalist display cases.

Yves Saint Laurent takes over from Bottega Veneta Yves Saint Laurent, a member of the Gucci Group, opened its first Munich store in June in a 50 square metre space on Maximilianstrasse that YSL took over from Bottega Veneta.

Apple opening December 2008 Rosenstrasse, Munich

Theatinerstrasse, Weinstrasse, and Rosenstrasse much in demand Theatinerstrasse, Weinstrasse and Rosenstrasse comprise an additional key shopping area in downtown Munich and the city’s third most expensive retail district – one favoured by high-end retailers such as Emporio Armani, Dolce & Gabbana, Stefanel, Laurél, and Massimo Dutti, whose stores are aimed at an affluent clientele. This shopping destination has been bolstered in recent years by the opening of Passage Fünf Höfe at Schäfflerhof.

Apple Flagship-Store opposite to Marienplatz, Munich locationgroup research | Retail Market Study 2012

99

Rosenstrasse is a short street that connects Marienplatz and Sendlinger Strasse and that is mainly known for its Sport Schuster store and the opening of the Apple flagship store. Small retail spaces in this area go for 230 euro per square metre.

Residenzstrasse and Dienerstrasse – a connecting link Residenzstrasse and Dienerstrasse form a connecting link between the high-end establishments on Maximilianstrasse and the consumer goods stores on Marienplatz and Kaufinger Strasse. The magnets in this middle-class shopping area include Dallmayr, Manufactum, Willy Bogner and Eduard Meier. Among the area’s new tenants are Akris, which in August 2011 took over Golfino’s 350 square metre space on Residenzstrasse. Golfino then moved down the street to the former Nespresso store.

At the time this report went to press, the successor to the space next to Louis Vuitton in the former Residenzpost had yet to be announced. Rents in this area average around 185 euro per square metre.

Future A&F location Hofstatt, Munich

Abercrombie & Fitch to pay 2.8 million euro a year rent on Sendlinger Strasse According to informed sources, Abercrombie & Fitch will be paying 240,000 euro a month for its Sendlinger Strasse store in Munich, which is slated to open in late 2012. The company’s affiliate Hollister will be moving in next door. Rents for small spaces on Sendlinger Strasse range up to 330 euro per square metre.

Sendlinger Strasse is the only trendy street whose branch ratio has risen. Konen, a fashion retailer that is well known beyond the borders of Bavaria, has ploughed a considerable amount of money into shopfitting its store and is prepared to handle the anticipated onslaught of customers. Rents here range around 160 euro per square metre.

The main feature of Tal (which is the extension of Marienplatz and ends at Isartor) is its restaurants, with the only retailer that exerts a draw being the large drugstore discounter Müller. Rents here are moderate, i.e. around 130 euro per square metre. Tal’s appeal will be enhanced in the coming years by construction of a bicycle-friendly pedestrian zone.

“When will we finally arrive in the South?” (by Reinhard Peneder) “When will we finally arrive in the south?”, was a question often asked by Globetrotter’s Bavarian catalogue and online customers.

Fast-forward 12 years: über globetrotters Thomas Lipke and Andreas Bartmann were in search of a suitable Munich location for Globetrotter, and ultimately found what they were looking for; but in so doing they remained true to their credo of prioritising challenging properties. Their Munich location is in the former Pelzhaus Rieger, right near Isartor. It took some doing to create a store that is both spacious and exciting. To meet the building inspector’s requirements, it was even necessary to realise a public walkway. The extensive effort and expense (8 million euro) that went into the project paid off. Architect Holger Moths recently implemented new architectonic and design measures.

Akris Dienerstrasse, Munich

100

locationgroup research | Retail Market Study 2012

In March 2011, Hamburg-based Globetrotter opened a new 6 500 square metre outdoor clothing and equipment store in Munich, and a second store opened in Dresden in the fall of that year. A third store is set to open in Frankfurt in 2012.

Apart from the spaciousness of the store’s four levels, what’s most impressive about this Globestrotter store are the myriad details, both large and small, that make a Globetrotter store unique. Notable among the larger details is the 458 square metre countercurrent action pool in the basement, where customers can try out folding canoes, kayaks and conventional canoes under realistic conditions.

A 60 metre-long wall displays all 350 models in Globetrotter’s footwear portfolio. A glass climbing tunnel with a 74 square metre boulder surface, plus a rain chamber with a wind machine, also entice customers to try out Globetrotter products for themselves. And there is also a 260 square metre play area for mini-Globetrotters. But the store’s true sensation is undoubtedly its 125 square metre-high cold chamber, where the climatic conditions of Arctic treks and expeditions are simulated at frigid temperatures. This apparatus enables customers to try out Globetrotter clothing and equipment right at the store and to obtain training devices for their next expedition.

bing district are a mix of international retail chains and consumer products stores such as Karstadt, Zara, Esprit, COS and Tengelmann, as well as various cafes and restaurants.

Other changes that have already occurred or are in the offing include the following; Leopoldstrasse 57 (Woolworths) and 59-61 (Postbank); Leopoldstrasse 37 in conjunction with Hohenzollernstrasse 3 (Commerzbank and Hohenzollernpassage); and Leopoldstrasse 23.

New tenants include COS, Jack & Jones/Vero Moda, Vans, s.Oliver Selection, Palmers, Gerry Weber, Oska and Bench. Retail space currently rents for around 105 euro per square metre.

Lack of shopping malls On closer scrutiny, the paucity of shopping malls in the centre of Munich is highly beneficial for classic top-notch retail locations in that Munich, which has so much to offer and whose importance extends beyond its own borders, has a genuinely manageable number of shopping malls.

Leopoldstrasse and Hohenzollernstrasse – the sole top locations outside the centre of Munich These two streets delimit the Schwabinger The district, which tends to attract a younger crowd that enjoys partying, but also has considerable disposable income. The stores in Munich’s trendy Schwa-

Globetrotter Isartor, Munich locationgroup research | Retail Market Study 2012

101

20 Hamburg, Bottega Veneta & Burberry with new locations .

Major potential across more than 350,000 square metres Downtown Hamburg contains two highly frequented shopping areas, City Ost and City West, with aggregate retail space amounting to around 350,000 square metres. Rathausmarkt and the Europapassage shopping mall are located inbetween and link these two areas.

Spitaler Strasse and Mönckebergstrasse, which contain more than 250,000 square metres of retail space and are Hamburg’s main shopping streets, are home to all prominent department stores, as well as the flagship stores of large retailers. As these streets are both well frequented, store rents ranging up to 280 euro per square metre for small spaces (e.g. on Spitalerstrasse) enable storeowners to readily recoup their rent and then some.

Mönckebergstrasse Hamburg

As Germany’s third largest city, HAMBURG is often mentioned in the same breath as Munich when international retailers discuss the possibility of opening stores in Germany.

Hamburg has a population of more than 1.7 million, and its 8 % unemployment rate is one of the lowest in Germany. Hamburg’s high retail sales to retail purchasing power ratio underscores the influence it exerts on the surrounding area and the large numbers of tourists that the city attracts year in and year out. Hamburg’s strategy aims to further strengthen Hamburg’s image as a world-class metropolis and bolster its international appeal. Hamburg and environs already count as one of Europe’s most successful economic regions and have demonstrably high economic potential.

Apple opening Jungfernstieg, Hamburg

102

City West, by contrast, is Hamburg’s luxury and premium goods zone and offers its affluent clientele retail stores spread across nearly 100,000 square metres of retail space. However, this shopping area has recently changed a great deal, from a luxury shopping street along the lines of Maximilianstrasse in Munich, to a fashion oriented shopping area – but one whose clientele has considerable purchasing power. The advent of Abercrombie & Fitch, Apple and Tommy Hilfiger underscores this trend.

Alte Post Hamburg locationgroup research | Retail Market Study 2012

Burberry moves into a new location after a three year wait Burberry relocated from its temporary quarters on Grosse Bleiche to its new 650 square metre store on Neuer Wall that was formerly home to BoConcept. Three years ago, Burberry lost its former space on Neuer Wall, which is now the Geox flagship store.

Bottega Veneta expands Bottega Veneta’s new 260 square metre store, which is considerably larger than its former digs, was designed by Creative Director Tomas Maier. All interior-design elements such as hardwood tables, steel and palm-wood display cases and fabriccovered pull-out presentation trays were made to order.

Scotch & Soda opts for B-location on Neuer Wall The Dutch young-fashion retailer Scotch & Soda opened a new store in a peripheral, split-level 328 square metre location, where the store carries Scotch & Soda, Maison Scotch, Scotch Shrunk and Scotch products.

Largest Apple Store in Germany The new Apple Store is a veritable temple of glass and steel in one of Hamburg’s choicest retail locations. This, Apple’s seventh German store and its largest to date (2,000 square metres), opened on Jungfernstieg in Hamburg in September 2011. A gaggle of Apple enthusiasts spent the night before the opening in sleeping bags outside the store in drizzly weather so as to be the first inside.

Peak Performance Poststrasse, Hamburg locationgroup research | Retail Market Study 2012

103

An Abercrombie & Fitch store in Alte Post The presence of Abercrombie & Fitch in Alte Post has brought about a visible change in this historic building, where Abercrombie & Fitch is leasing around 2,000 square metres of retail space. Alte Post is also home to Tommy Hilfiger’s flagship store, whose 650 square metres of retail space extends over two levels. Stuart Weitzman also moved into Alte Post in November 2011.

In the spring of 2012, Sandro will be opening a new 170 square metre store (its second in Germany) on Poststrasse.

Outdoor brands – Peak Performance and The North Face This area of downtown Hamburg will be further strengthened when Peak Performance opens its 255 square metre store in the Poststrassse building.

One of its competitors, The North Face, will be opening a 210 square metre space not far away in the Hanseviertel district on Poststrasse.

Adidas Neo and Superdry Hamburgians are no doubt excited about the upcoming opening of an Abercrombie & Fitch store and an Adidas Neo Brand store, as well as the coming of Superdry, which will likewise be making its downtown Hamburg debut in 2012, with a 260 square metre store on Gänsemarktpasssage.

Rents over the past decade Rents in Hamburg’s best downtown retail locations have risen by around 17 % over the past decade, and on Spitalerstrasse now range up to 280 euro per square metre a month.

The French retailer Promod will be opening its second Hamburg store on Spitalerstrasse, where other retailers also plan to open stores.

The fashion jewellery and accessories retailer Elf Craft opened its first flagship store in Hamburg. The store has 100 square metres of retail space and is located at ABC-Strasse, which is a top location.

Zara Home right nearby Hamburg is one of the lynchpins of the Spain-based Inditex Group’s ambitious German expansion plans. In the fall of 2011, one of the first Zara Home stores opened on Grosse Bleichen in the former Olymp & Hades space.

Zara Home Grosse Bleichen, Hamburg

104

locationgroup research | Retail Market Study 2012

21 Cologne, Bershka opens second German flagship store .

COLOGNE is Germany’s fourth largest city and according to official statistics is undergoing noticeably slower demographic change than many other German cities. Thus the proportion of the population that is over 65 is far below the average for Germany as a whole.

The city’s population is also growing.

According to official statistics, as at 31st May, 2010 Cologne regained the status of being Germany’s fourth city with more than a million inhabitants – 1,000,298 to be exact. Both of these phenomena – steady population growth and the slower aging rate of the city’s population – are attributable to a steady influx of college students, job trainees, and young job seekers, who keep the average age down and also help to swell the city’s population. There are various reasons for this.

ward Neumarkt. The most popular retail venue has always been Schildergasse, and remains so today, although other shopping streets such as Ehrenstrasse and Breiten Strasse are also very much in demand by both international retail chains and consumergoods merchants. Most of the city’s restaurants are located on Wallrafplatz, just in front of the Dom, as well as on parts of Schildergasse. At Neumarkt and the adjoining Mittelstrasse is a superb commercial area.

Over the past decade, average peak rents have increased by around 58 %. In the best locations, an 80 to 120 square metre store that is conducive to retailing now goes for up to 260 euro per square metre. Thus Schildergasse is less expensive than Schadowstrasse in Dusseldorf (rents up to 230 euro per square metre); only the most desirable locations in Munich, Hamburg and Berlin cost more.

Starting at the Dom (cathedral), the most desirable retail locations are found between Hohe Strasse and Schildergasse, as well as to-

Schildergasse, Cologne locationgroup research | Retail Market Study 2012

105

Bershka Schildergasse, Cologne

Nordsee Hohe Strasse, Cologne

106

locationgroup research | Retail Market Study 2012

Rewe 2 Go Food stores are increasingly seeking moderate sized spaces in downtown locations that offer greater convenience. This trend prompted Rewe to begin testing out its new concept for highly frequented locations: Rewe to Go. Located at the corner of Hohe Strasse and Schildergasse in Cologne, the 130 square metres Rewe To Go store offers more than 1,000 items for customers in need of a snack or light meal. Rewe is now competing with McDonald’s, Starbucks and other fast food purveyors for the hearts, minds and palates of customers who are pressed for time.

Bershka opens second German flagship store Bershka (a member of the Inditex Group) opened its second store in Germany on Cologne’s Schildergasse, in a 600 square metre split level space that features a luminous ambience. One of the most appealing features of the store is its glass facades, which at night look like oversized shop windows.

Ecco replaces Clarks, Desigual replaces Ecco, and Gina Tricot replaces Colloseum The Danish shoe retailer Ecco recently relocated to a new 180 square metre downtown store at Breite Strasse where it took over the former location of the British shoe retailer Clarks. The former Ecco store, which was considerably larger (700 square metres) and was in the building complex at Schildergasse 105a, is now being leased by the fashion retailer Desigual.

than 300 square metre space in the same building, at Mittelstrasse 1, that was formerly occupied by the fashion retailer Robert Ley. Comma (a member of the s.Oliver Group) also plans to open a 250 square metre store on Mittelstrasse.

The new 150 square metre Basler store in Cologne will be imbued with the brand’s updated image, to which end the store is decorated in warm, subtle colours. Furnishings made of whitewood, in slate gray, and made of bronzed glass will provide a mixture of elegance and glamour.

Navyboot rolled out its new shopfitting concept at its new Cologne store, which opened in December 2011, likewise on Mittelstrasse.

The 120 square metre space features a mix of classic and modern elements, such as Le Corbusier armchairs with violet metallic frames. The Swarovski luminaries that were made especially for Navyboot are a real eye catcher.

Bazaar de Cologne sold to an investor The former Bazaar de Cologne at Mittelstrasse in Cologne was sold to an investor by the real estate company that owned the property.

A few weeks earlier, Gina Tricot, a Swedish clothing label that’s currently all the rage, opened a store in Cologne and in so doing inaugurated its German expansion program. The store is located in the Schildergasse space previously occupied by the fashion retailer Colloseum.

Promod property in the pipeline It will take the general contractor Hochtief at least until summer to complete the building at the corner of Schildergasse and Kreuzgasse, where a four-story office and retail complex with around 1,800 square metres of retail space is currently being constructed on an around 640 square metre site. The former tenant, Promod, will be moving back into the building once it has been completed.

Fielmann builds itself a supercenter A few doors down on Schildergasse, the eyewear retailer Fielmann will be moving into its new building by the end of the year. According to Fielmann, the six-story building, which the company calls a “supercenter,” will have 850 square metres of usable space.

Esprit property on Hohe Strasse sold EPI Walkabout sold the office and retail complex at Hohe Strasse to Grundvermögen Kapitalanlagegesellschaft of Aachen. Since the 2007 conversion, Esprit has been leasing the building’s 700 square metre retail space.

Mittelstrasse on the move Cologne’s Mittelstrasse was the scene of two other premiers. The Swiss undergarment retailer Calida opened its first Aubade store in an around 70 square metre space formerly leased by The Pashmina Shop; and the cashmere retailer Repeat signed a lease on a more Schildergasse, Cologne locationgroup research | Retail Market Study 2012

107

The around 15,000 square metre building has an around 80 square metre storefront on Mittelstrasse, and about a third of the building is given over to retail space. Bazaar de Cologne was founded in 1981 under the somewhat unwieldy name Einkaufs-Adresse von Weltstadt-Format (world-class shopping venue). The building’s glass-roofed inner courtyard accommodated some 60 stores and restaurants.

Ehrenstrasse in great demand The Deutsche Telekom store called 4010 on Ehrenstrasse is the telecom operator’s second store (after Berlin) for which the company decided to roll out its new retail concept. The store in the around 260 square metre space that it is leasing at Ehrenstrasse was the former Garcia jeans store.

Having failed to win the hearts and minds of customers in its dimly lit and noisy stores in Frankfurt, Dusseldorf and Oldenburg, Esprit has jettisoned this concept and will be testing out three new ones, one of which is now on view in Cologne at Esprit’s Ehrenstrasse store, which is light, congenial and natural. The store’s homey atmosphere is mainly attributable to its brick walls, ethnic-motif carpeting, abundant use of wood, and the congenial lighting provided by the store’s rattan lamps.

Navyboot Mittelstrasse, Cologne

Hohe Strasse, Cologne

108

locationgroup research | Retail Market Study 2012

Wallraffplatz Cologne

E100 The around 8 million euro Development Partner AG building at Ehrenstrasse 100 (E100 for short) is nearly complete. Development Partner carried out the project in its capacity as general contractor for a private investor. Designed by ArchitektenbĂźro Schilling of Cologne, E100 will feature around 440 square metres of retail space on two levels.

The commercial property at Ehrenstrasse 35a-38 is also being redeveloped, and on completion of the construction work two retail spaces will be available there.

Other developments at top retail locations Previously, the British retailer Monsoon Accessorize opened its third Cologne store in the adjacent 100 square metre space in the same building, where it took over from E-Plus. Vodafone has now opened a 180 square metre store on Breiten Strasse in the former Mommen jewellery store.

Butlers has leased a 520 square metre three-level store next door at Krebsgasse that was previously home to Spielkauf and that is slated to open in the spring.

locationgroup research | Retail Market Study 2012

The store of the porcelain manufacturer Meissen has moved to a location near the Dom (cathedral) at Wallrafplatz, where Meissen took over from Cartier. Starbucks has moved into Meissen’s old space at In der HÜhle 4 at the corner of Hohe Strasse and Schildergasse.

Hollister will be opening its first Cologne store at the Rheincenter mall, which is operated by ECE and is located in Cologne/Weiden, where Hollister took over the upper level of the C&A store.

Store rents at top locations in the centre of Cologne Per square metre rents for small stores shape up as follows: 70 to 85 euro on Neumarkt; 190 to 260 euro on Schildergasse; 160 to 220 euro on Hohe Strasse; and for the bargain conscious 55 to 80 euro on Breiten Strasse for comparable spaces, and up to 95 euro on Ehrenstrasse for 80 to 120 square metre spaces.

But inasmuch as the supply of available retail spaces in Hamburg, Munich and Berlin is shrinking steadily, leading retailers are increasingly looking at spaces in Cologne, as the opening of the first Gina Tricot and Repeat boutiques and a Deutsche Telekom store with its new 4010 concept show.

109

22 Frankfurt, Zara Home and H&M Home opened in Frankfurt .

FRANKFURT, Germany’s fifth largest city, is located in the RhineMain region, whose quality of life is virtually unmatched in Germany, making it one of the country’s most desirable places to live and work. While Berlin is currently ranked as Germany’s hippest city, Frankfurt is catching up fast in this department and is becoming a springboard for hip store concepts such as those embodied by the stores of upscale international retail chains like Zara Home, Jimmy Choo and Urban Outfitters. This phenomenon is also driving store rents upward.

Goethestrasse – a luxury shopping street Goethestrasse is a shopping Mecca where customers on the lookout for luxury goods can find just about anything their heart desires.

Virtually all high-end retailers such as Prada, Gucci and Louis Vuitton have outposts on this street. At Goethestrasse 7 Aigner opened an around 100 square metre store on the former premises of Vakko GmbH, while the former Aigner Store was taken over by the French retailer Longchamp. Hackett London also has a 215 square metre flagship store on Goethestrasse next door to Nespresso.

Porsche Design and Wellensteyn Porsche Design opened a 150 square metre store in September on Grosse Bockenheimer Strasse. The jacket retailer Wellensteyn opened a Frankfurt store on Rossmarkt during the Christmas season in the former Pal Zileri space.

Primark to open second Frankfurt store Primark is stepping up the pace of its German expansion program, and has now leased its first store at a top Frankfurt location. According to unconfirmed reports from informed sources, the Irish discounter also plans to open a Frankfurt store in the former Woolworths on Zeil, and will be inaugurating this around 4,000 square metre store in the fall of 2012.

Brigitte von Boch, Calida, Linus and Muji A whole host of retailers has opened new stores that are interspersed between Frankfurt’s choicest locations. For example Brigitte von Boch opened a 200 square metre store on Friedenstrasse, Calida opened a new 100 square metre store at Piquadro on Steinstrasse, and Linus and Muji each opened a 350 square metre store on Kaiserstrasse.

High rents in Frankfurt The robust purchasing power that characterises Frankfurt and the attendant high per square metre sales are driving Frankfurt retail rents to as high as 275 euro per square metre a month for choice locations. Zeil is one of Germany’s highest-rent shopping streets.

Shopping malls in Frankfurt going great guns Redevelopment of the Zeilgalerie district was recently completed, thus making the MyZeil shopping mall a pivotal shopping destination in downtown Frankfurt, since the next pioneering retail store will either soon be opening there or is already in the pipeline. Germany’s largest shopping mall operator has begun leasing space in its new prestigious Frankfurt mall, Skyline Plaza, which is slated to open in 2014 and is located between the downtown area and the Frankfurter Messe trade show and convention centre. This location is no accident, since the most prominent retailers are on the lookout for terrific store spaces in the downtown area’s choice locations.

Main-Taunus-Zentrum in Sulzbach was recently modernized and expanded, and after two years of construction the mall’s new north wing is now complete. The opening of 70 new stores brings the total number of retailers in the mall to 170, and the addition of 12,000 square metres of retail space brings the mall’s total retail space to 91 000 square metres. The project partners ECE, DWS Investments and Deutsche Euro Shop invested around 75 million euro in modernizing and expanding the mall.

The mall’s anchor tenants are now Galeria Kaufhof, Peek & Cloppenburg Dusseldorf, Karstadt, Breuninger, H&M, and New Yorker, the latter two of which expanded their space on completion of the remodelling project. The mall’s new tenants include Bench, Hallhuber, Jack Wolfskin, G-Star, Levis, Esprit Men, Gant, Campus, Apple and Hollister. However, as is its wont, the American vendor will not be opening until a week later. According to the mall operator, ECE, there are currently no vacancies.

H&M Home Zeil, Frankfurt

110

locationgroup research | Retail Market Study 2012

MyZeil Shopping Center Zeil, Frankfurt

Hackett Goethestrasse, Frankfurt locationgroup research | Retail Market Study 2012

Urban Outfitters Rossmarkt, Frankfurt

111

23 Stuttgart, ECE in search of parking lots at the main train station .

STUTTGART, the capital of the German state (Land) of Baden-Württemberg, has a population of 600,000, is Germany’s sixth largest city and comprises the core of Region Stuttgart (the Stuttgart metropolitan region) which has around 2,7 million inhabitants.

Some 16,000 square metres of retail space have been rented out in downtown Stuttgart over the past 12 months. Store rents are rising due to the fact that choice locations in the centre of Stuttgart are in great demand but are hard to come by.

Stuttgart’s main shopping district is the more than 1,200 metre long pedestrian zone, Königstrasse, which is one of Germany’s most frequented streets and wends its way from the Hauptbahnhof (main train station) through Schlossplatz, ending at Wilhelmsbau. Maximum store rents here have risen over the past five years from 230 to 250 euro per square metre for small spaces (up to 200 square metres).

Schlossplatz on the Königstrasse, Stuttgart

Yeanshalle Königstrasse, Stuttgart

112

locationgroup research | Retail Market Study 2012

Little tenancy churn in Königstrasse The most noteworthy change on Königstrasse occurred at the lower end of the street, when Yeans Halle took over from K & L Ruppert.

This change is also noteworthy by virtue of the fact that a regional retailer got the nod for the 3,600 square metre space, which Yeans Halle has turned into an exciting and innovative store. s.Oliver and Stefanel replace Adidas and Puma respectively A likewise significant phenomenon is the fact that s.Oliver and Stefanel replaced Adidas and Puma respectively. s.Oliver took over the 1,000 square metre Adidas store in December 2010, and created there a new concept store format that is also the retailer’s flagship.

A life-sized deer is prominently featured in a scene depicted on the upholstery of a Chesterfield sofa, along with white-burnished trees, wild geese and an old motorcycle. Stefanel opened a 500 square metre store in late 2010 in the former Puma store.

Douglas swaps spaces with H&M In the spring of 2011, H&M took over the former Parfümerie Douglas store next door to s.Oliver, while on the other side of Stiftstrasse Douglas moved into a space that was formerly leased by H&M and before that by Gap.

s.Oliver Königstrasse, Stuttgart

Other new arrivals include Tally Weijl and Promod, each of which has leased part of the former Tack shoe store. Retail space demand and rent are currently stable and little increase in either variable has been observed. Space on Königstrasse can be leased up to two years prior to completion of the relevant building.

In February 2011, Tom Taylor opened a 350 square metre flagship store on Königsstrasse that was formerly leased by Sasch.

Marithé & François Girbaud – new arrivals on Calwer Strasse Calwer Strasse runs parallel to Königstrasse between Kleiner Schlossplatz and Rotebühlplatz and runs into Kienestrasse and Kronprinzstrasse.

The Paris-based fashion house Marithé & François Girbaud will be opening its first German store in January 2012 in a 200 square metre space on Calwerstrasse, where Ludwig Reiter and the cosmetics and wellness product retailer Just Pure have also recently opened stores.

Tom Tailor Königstrasse, Stuttgart

Kronprinzbau – a connecting link between Stiftstrasse and Marktplatz Completion of the new buildings Window’s, Kronprinzbau 6 and BüX, along with the renovation of Kronprinzbau 8, now integrate this entire area with Stiftstrasse and Marktplatz. A considerable number of new stores have opened here (but as in the past, without any other new arrivals in the downtown area): René Lezard, Max Mara, Frankonia Jagd, the new gourmet food emporium Böhm, Bree, Levi’s, Max & Co., Strenesse Blue, Thomas Sabo and Bose.

Kronprinzbau, Stuttgart locationgroup research | Retail Market Study 2012

113

The North Face Lautenschlager/Kronenstrasse, Stuttgart

Schulstrasse – Germany’s first pedestrian zone Schulstrasse, which runs from Königstrasse to Marktplatz (and is also known as Fressgasse), was Germany’s first pedestrian zone upon its construction in 1953, and features fashion, accessory, and cellphone stores, as well as numerous bakeries, Imbisse (snack) locales, and fast food restaurants. In March, Tamaris shoes opened a store on Schulstrasse near Marktplatz in the location of the former bakery chain store Backwerk.

Outdoor outfitters come to Stuttgart The outdoor outfitter Mammut opened a 250 square metre store at Postquartier. In August, The North face opened a new 490 square metre flagship store, likewise at Postquartier, at the corner of Lautenschlager and Kronenstrasse. The outdoor clothing retailer Napapijri opened a 170 square metre store on Kirchstrasse in November 2011.

Breuninger to go it alone on Karlsplatz (by Dagmar Lange) The urban redevelopment project for Karlsplatz in downtown Stuttgart will end up looking different from what was originally planned.

The area will be developed by the Breuninger department store chain, without the state of Baden-Württemberg. In exchange, Baden-Württemberg will rent 20,000 square metres of office space in the new building.

Thus the tug of war concerning the so called Da Vinci urban redevelopment project for the area between Karlsplatz and Marktplatz has come to an end and with it the envisaged joint venture between Breuninger and the state (Land) of Baden-Württemberg.

The new Baden-Württemberg administration decided against constructing a ministry building in downtown Stuttgart on the grounds that the hoped-for savings did not appear to be realistic. Also the wind was taken out of the project’s sails by disagreements among city council members concerning the scope of the project as a who-

114

le. Now that the dust has settled, the consensus is that the Breuninger department store chain will purchase the neighbouring building complex at Dorotheenstrasse 6 from the state of Baden-Württemberg. The State Assembly’s finance and business committee has approved the sale of this building complex, which is still being used by the Baden-Württemberg Ministry of the Interior. According to the newspaper Stuttgarter Zeitung, Breuninger will be paying 26.5 million euro (the property’s market value) for the 3,900 metres area.

The sale was concluded before the land-transfer tax increase went into effect in November 2011. Breuninger plans to upgrade the area around its flagship store on Marktplatz and expand it by 35,000 square metres, with a view to strengthening the store’s position visà-vis the ECF mall that is to be built behind the main train station.

ECE in search of a parking lot at the main train station (by Konstantin Schwarz) Bahn AG is not the only player that’s ready to kick off its Stuttgart 21 project, since three other developers will also be setting their bulldozers in motion over the next 12 months behind the Hauptbahnhof (main train station). However, the original plans have been altered somewhat.

The new municipal library will still be the dominant structure on what is now a large vacant lot behind the train station. But the around 40 metre high library will cease to be the sole structure in 2014, when a high-rise building that is taller than the library is constructed on the site.

The gray cube will have new neighbours on two sides, the first of them being Sparkassenakademie, which will adjoin the current Landesbank (LBBW) office complex. Sparkassenverband (SV) plans to invest 80 million euro in a new training centre in the near future.

The Hamburg-based holding company ECE (Otto Group) and the building contractors Strabag and Bayerische Hausbau are hammering out the final details for a 43,000 square metre shopping mall

locationgroup research | Retail Market Study 2012

that will be built on the far side of the library. Offices and apartments will be built above the mall, as will a hotel that will face Heilbronner Strasse.

Changes have been made in the tripartite ECE complex. The number of apartments has been reduced from 450 to 417, although the 43,100 square metres of floor space will remain “exactly the same,” according to ECE project manager Jörg Wege, who indicated that the number of four and five room apartments has been increased with the aim of attracting more families to the area. “They will definitely remain rental units,” said Mr. Wege.

The number of parking spaces has emerged as a sticking point for the mall portion of the complex, which will have around 200 stores.

ECE had intended to construct 2,500 parking spaces, a plan adamantly opposed by the city council, which ultimately gave the goahead for only 1,680 spaces. Of these, around 500 will be reserved for the apartments and other uses. But unfortunately, having only around 1,100 parking spaces could be detrimental to the mall.

The exact number of parking spaces that will be available when the mall opens, just before the lucrative Christmas season in 2014, is currently uncertain. However a start date for the new commercial area has been set.

Planned ECE shopping center, Stuttgart

Breuninger Neubauprojekt, Stuttgart locationgroup research | Retail Market Study 2012

115

24 Dusseldorf, Abercrombie & Fitch – one hundred male fashion models on Königsallee .

DUSSELDORF, the capital of the state (Land) of North Rhine-Westphalia and Germany’s seventh largest city, is located in the heart of the Rhine-Ruhr conurbation. As a centrally located European economic centre, Dusseldorf, along with Frankfurt, Berlin, Hamburg and Munich counts as one of Germany’s five most important and robust economic, business, transport, cultural and political centres; they are known as the “Big Five.”

Dusseldorf is the most important German entry-level market (after Berlin) for international retail chains. In no other German city of this size do more first and second international retail branches open their doors. Examples in Dusseldorf include Abercrombie & Fitch, Brioni, Suit Supply, Lottusse, LeTanneur, 7 For All Mankind, Rivièra Maison and Michael Kors. Dusseldorf’s leading position as Germany’s fashion capital is clearly attested to by the presence of these new brand retailers. Thanks to Dusseldorf’s distinctive location, the city offers international retailers an optimal framework for expansion, in large measure thanks to the robust health of Dusseldorf’s economy, as evidenced by its high purchasing power and excellent retail sales to retail purchasing power ratio.

space that was formerly home to HypoVereinsbank. A week before the store’s official opening, Abercrombie & Fitch publicized the event by parading 100 half-naked male fashion models on Königsallee. Abercrombie & Fitch is reported to have invested 25 million euro in the new store.

Brioni enters the German market and Michael Kors takes over a Calvin Klein store The Italian fashion retailer Brioni kicked off its German expansion program by opening its first store in Dusseldorf, where Brioni took over a 300 square metre space formerly leased by René Lezard.

Next door the opening of a Michel Kors store was another notable event. Michel Kors opened what is now its second German flagship store in an around 460 square metre space that was formerly a Calvin Klein store.

Abercrombie & Fitch – 100 male fashion models on Königsallee Abercrombie & Fitch opened its first German flagship store on 1 December at Königsallee 17 in a four-level 2,500 square metre

Kö-Galerie and Sevens revitalised The increasing appeal to shoppers of Dusseldorf’s downtown area is not lost on its shopping mall operators. The Kö-Galerie and Sevens malls on Königsallee were renovated in 2011. Saturn massively expanded its space at Sevens, which it now refers to as “Home of Saturn.” Kö-Galerie is now home to Jacadi, Aigle, Wellendorff, Thomas Sabo and other leading retailers with exciting shop concepts.

A&F opening Königsallee, Düsseldorf

Sevens Königsallee, Düsseldorf

116

locationgroup research | Retail Market Study 2012

Philipp Plein with models

Philipp Plein opened his first German store on Königsallee Philipp Plein opened his first German store on Königsallee in the recently inaugurated Sevens shopping mall in Dusseldorf. The 230 square metre split level store is designed in classic Plein style.

Other noteworthy changes in Dusseldorf’s Sevens mall on Königsallee apart from the structural alterations include a revamped tenant structure. At the entrance to the mall, Philipp Plein opened a split-level Desigual store in a former JOOP! shop. Emporio Armani is another new arrival, having taken over from Strenesse.

The Italian retailer Napapijri opened a flagship store in the former Tod‘s.

Untere Kö new with Zara Home & Victorinox A key event for the shopping street Königsallee, whose lower reaches near the main train station tend to receive little attention from customers, was the opening of Zara Home and Victorinox on this part of the street.

Philipp Plein

In 2011, Zara Home opened its third German store at Königsallee 56, while the home accessories retailer Inditex inaugurated a new 510 square metre store in the former Georges Rech space.

Next door to Zara Home the Swiss retailer Victorinox opened a three-level 1,000 square metre flagship store that carries everything from knives to down jackets.

Top store rents in Dusseldorf currently range up to 230 euro per square metre, which is the going rate on Königsallee. Compensatory payments are an everyday phenomenon here as well.

locationgroup research | Retail Market Study 2012

117

Kö-Bogen Düsseldorf

Breuninger is back In late September, the high-end department store Breuninger generated considerable excitement with the announcement that the store will be returning to Dusseldorf as the main tenant at the KöBogen building, which was designed by Daniel Libeskind and where the Stuttgart-based company will be opening a 15,000 square metre luxury department store. Breuninger’s Stuttgart flagship store carries brands such as Dior, Marc Jacobs, Dolce & Gabbana, Akris, Stella McCartney, Chloé and Fendi. There is also talk of Breuninger opening a 2,500 square metre shoe department. Other retailers that have expressed an interest in renting space in the Kö-Bogen building include Apple, Brunello Cucinelli and Hollister.

Victorinox Düsseldorf

Primark to invest 80 million euro Primark will be opening a four-level 6,500 square metre store at Schadowstrasse 56 – but not until the spring of 2013 – in a sixstory building that is a few steps away from the planned Kö-Bogen II building.

Virtually nothing has been done for years with the 2,200 square metre site of the former Achenbachhaus, for which the first project fell through after the building was torn down. Afterward, nothing happened and there was no interest in developing the site.

Many saw this as a visible sign of the supposed deterioration of the shopping street Schadowstrasse, whose stores were hard hit by the numerous construction projects that were being realised on the street. But now Development Partner plans to construct an 80 million euro building on the site.

Future Primark location Schadowstrasse Düsseldorf

118

locationgroup research | Retail Market Study 2012

Up and coming locations Up and coming locations are to be found in the area around Grabenstrasse, which is currently a popular area for customized and avant-garde shopfitting concepts. The advantages of this area are its proximity to stores that sell innovative fashions, as well as the relatively low rents. New arrivals here include 7 For All Mankind, LeTanneur and Lottusse. Despite ongoing construction work on the Wehrhahn U-Bahn (subway) line, Primark, Sport Scheck and Sportarena will undoubtedly act as a powerful and sustained customer magnet on the eastern stretch of Schadowstrasse. Gina Tricot recently debuted in Dusseldorf with two stores, one on Flinger Strasse and the other on Schadowstrasse. The area around Carlsplatz is evolving into a shopping district with distinctive stores and is thus attracting international retailers.

Adidas and Bento Box Adidas will be opening a 300 square metre concept store in the spring on Flingerstrasse in Dusseldorf’s old town, which along with Königsallee and Schadowstrasse is also a well frequented downtown Dusseldorf shopping district. The space was formerly leased by the fast-food chain Nordsee.

Likewise in Dusseldorf’s old town, on Berger Strasse, the Japanese restaurant Bento Box opened its third German branch in the fall of 2011, having previously opened eateries in Munich and Cologne.

Bento Box took over the 350 square metre space formerly leased by the breakfast restaurant Le Pain Quotidien.

Huma-Einkaufspark mall in Neuss reborn as Rheinpark Centre ECE has completed renovation of the former Huma Einkaufspark mall in Neuss, which has been renamed Rheinpark Centre. The remodelled mall will open after 30 months of construction. The three-level, 37,000 square metre mall contains 140 stores, cafes, restaurants and service business and has more than 1,600 parking spaces. The mall’s new anchor tenants in the fashion domain include C&A, H&M, Esprit and Hollister. Real, Saturn and P&C Dusseldorf had already opened their stores in February 2010 during the first construction phase. The renovation costs around 93 million euro.

Victorinox Königsallee Düsseldorf locationgroup research | Retail Market Study 2012

119

25 Dortmund with an exciting autumn to look back on .

DORTMUND, which is located in the state of North Rhine-Westphalia, is the business and commercial centre of Westphalia.

With a population of around 580,000 is it the largest city in this section of the state and in the Ruhr region.

Dortmund was once the centre of German heavy industry, where over 100,000 jobs have been lost over the past decades.

A commercial renaissance in Dortmund The most salient change in Dortmund can be seen in the retail sector. The advent of Thier Galerie and Lensing Carée are the best known of a number of undertakings that have changed the face of Dortmund’s downtown area.

Dortmund’s downtown area is still well frequented, although the city has recently evolved into a veritable retail metropolis that many shoppers from the surrounding areas visit on both weekdays and weekends.

Dortmund’s top retail locations Dortmund’s downtown retail businesses generated sales amounting to 3,2 billion euro in 2010. The city’s top retail locations contain numerous high-calibre store spaces with modern and retailfriendly amenities.

In addition to Westenhellweg, whose top retail spaces are located between Peek & Cloppenburg and Galerie Kaufhof, parts of the area between Ostenhellweg and Modehaus Vosschulte are also in demand. The anchor tenants here are TK Maxx, C&A and dm Drogeriemarkt.

Outstanding appeal forces rents upward Store rents in Dortmund’s top retail locations have increased 14 % over the past decade, with rents on some stretches of Westenhellweg now ranging up to 200 euro per square metre. These rents are not subject to competition – at least not in the Ruhr region.

The 120 euro per square metre store rents on Ostenhellweg seem relatively moderate at first glance, but are nonetheless higher than for comparable spaces in Essen, Duisburg and Bochum.

Thalia takes over from Pohland, Fielmann expands In March 2010, the Thalia bookstore took over the more than 1,800 square metre space formerly leased by the men’s outfitter Pohland.

Fielmann concluded a new lease that called for the store to expand its space on Westenhellweg to 500 square metres; the establishment opened in December 2011.

Rossmann takes over from Sport Vosswinkel The discounter drugstore chain Rossmann took over the Sport Vosswinkel store on Westenhellweg, where it opened a new 1,000 square metre store. Vosswinkel relocated to Thier Galerie.

Paul Winston and Gina Tricot open stores on Westenhellweg A new office and commercial complex has been built at Westenhellweg on the former Quelle Haus site. Hamburg-based B&L Group invested around 20 million euro in the complex, which contains two around 800 square metre retail spaces that will be leased by Paul Winston and Gina Tricot respectively.

Thier-Galerie Dortmund

120

locationgroup research | Retail Market Study 2012

Project Westenhellweg of B&L

The new complex is located right across the street from the main entrance to the new 300 million euro Thier Galerie mall, which was developed and is managed by ECE, which is likewise based in Hamburg.

Thier Galerie – a dynamic force Numerous premium chain retailers that have been operating stores in choice locations for many years are finally beginning to open stores in Dortmund. The most prominent retailers to have opened stores at Thier Galerie mall in September 2011 are Primark and Hollister. But other retailers such as Bose, Marc O´Polo, Thommy Hilfiger, Gant, Kiko Milano, Selection, Vila, s.Oliver, New Yorker, Mango, Gaastra, Esprit, Mexx, Bianco, Street One, Zero, H&M, Zumnorde, G-Star and Tally Weijl have opened at least their second store in Dortmund.

Thier Galerie will undoubtedly give the less profitable stretch of Westenhellweg a robust shot in the arm.

Westenhellweg Dortmund

locationgroup research | Retail Market Study 2012

121

26 Dresden – new with Apple & Hollister .

DRESDEN is the capital of the German state of Saxony and has a population of 523,000. The city is a transportation crossroads and economic centre of the Dresden conurbation which is regarded as one of Germany’s most dynamic urban regions.

Dresden – an appealing and multifaceted economic centre that is conducive to retail activity A dynamic economy, a growing population, purchasing power that a Prognos study says is set to rise 16,9 % by 2013, and an exponential increase in tourism are all factors that make Dresden an excellent place to open a retail store. Numerous investment and organisational measures over the years have strengthened Dresden’s downtown businesses, as well as the city’s various districts, residential areas, and retail locations.

Dresden has around 826,000 square metres of retail space, with rents in the neighbourhood of 100 euro per square metre. 291,000 square metres of this space are in shopping malls. Expansion of the Altmarkt Galerie mall in 2011 added around 18 000 square metres of retail space to the downtown area.

Of particular importance for the development of Dresden’s downtown area was the opening of the Centrum Galerie Dresden mall on Prager Strasse, which is the city’s main shopping street in a top downtown location, as well as the opening of stores and pas-

sages on Neumarkt. Most of the new retail stores have opened on Wiener Platz, Prager Strasse, Altmarkt, Neumarkt, Postplatz and Innere Neustadt.

Prager Strasse and Centrum Galerie Prager Strasse, which is one of Germany’s most popular shopping streets, mainly has large department stores and leading chain retailers. The four-level 52,000 square metre Centrum Galerie mall opened in 2009, and Planet Sports inaugurated a new 530 square metre store there in December.

Desigual opens in Dresden In June, the fashion retailer Desigual took over the 700 square metres Dress & Co store at the corner of Prager Strasse and Waisenhausstrasse that had formerly been operated by the regional retailer Dirk Richter.

Globetrotter takes over from P&C The Hamburg-based outdoor clothing and equipment retailer Globetrotter moved into the four-level 6,200 square metre spaces on Prager Strasse formerly leased by Peek & Cloppenburg.

Altmarkt and Altmarkt Galerie Altmarkt Galerie is one of Dresden’s most appealing shopping malls and one of the most successful in Germany. In March 2011, the mall’s operator ECE unveiled a new wing that added 18,000 square metres of retail space to downtown Dresden. Smaller stores around Altmarkt and on the adjoining streets lend the area a distinctive atmosphere.

The opening of the new wing of Altmarkt Galerie is probably the most important change in Dresden’s downtown retail sector – a change that will also help to meet the extremely strong demand on behalf of the retailers for spaces in this area.

Apple and Hollister debut in Dresden Apple opened its first and probably only store in Eastern Germany. Following this, in September the US cult brand Hollister opened a store right next door to Apple.

In addition to consumer goods stores such as G-Star and Bestseller, Hugo Boss, Guess and Marc Cain also opened stores, as did Tony & Guy, O´Neill and Fossil in connection with the expansion of Altmarkt Galerie.

Skyline Dresden

122

locationgroup research | Retail Market Study 2012

Neumarkt gets a facelift Neumarkt offers a delightful mix of restored historical buildings, new cafes with enchanting cityscapes, top-notch hotels, and a broad range of shopping options for the most exacting tastes and desires. Prior to its destruction by Allied bombing on 13-14th February, 1945, the architecture of Dresden’s Neumarkt Platz was Baroque. No construction was realised on the square for decades following the bombing. But today Neumarkt has been restored to its former glory.

The Frauenkirche dedication ceremony on 30th October, 2005 enabled Dresden to welcome back one of the cornerstones of its heritage. Other districts are springing up around this world-famous church – whose reconstruction symbolises peace between the world’s peoples – and are bringing a new dynamism to the expansion of Neumarkt.

Frauenkirche Dresden

Altmarkt-Galerie Dresden locationgroup research | Retail Market Study 2012

123

27 Leipzig – rapid development, unmatched by any other city in Eastern Germany .

Petersstrasse’s multibranch ratio of 90 % is on a par with that of choice locations in Western Germany. The street is frequented by around 9,000 pedestrians hourly, which from this standpoint makes Petersstrasse one of Germany’s top shopping streets.

In 2011, Desigual took over the former Mango store on Petersstrasse and Anika Schuhe opened a concept store in Passage Petersbogen right on Petersstrasse.

In May 2011, the Italian young-fashion retailer Alcott took over Schuh Roland’s top-notch 500 square metre locations on Petersstrasse in partnership with a regional franchisee. Woolworths will soon be opening a more than 2,300 square metre store on this same street.

Speck’s Hof Grimmaische Strasse, Leipzig

LEIPZIG’s development following German reunification in 1990 has been more rapid and felicitous than that of just about any other Eastern German city. Leipzig, which is part of Saxony’s six Oberzentren, has a population of around 525,000 and comprises a conurbation in conjunction with the neighbouring city of Halle.

Leipzig, Halle and nine other cities in Saxony, Saxony-Anhalt and Thuringia comprise the metropolitan region known as Metropolregion Mitteldeutschland, of which Leipzig is one of the two lynchpin cities, the other being Dresden.

Leipzig is an excellent place for a new retail store. Despite a considerable increase in the amount of retail space available, store rents in Leipzig have not declined and currently range up to 115 euro per square metre. The downtown area has around 270,000 square metres of retail space in top-notch locations.

Downtown Leipzig Consumer goods stores in downtown Leipzig are located on Petersstrasse and Grimmaische Strasse, which begin at Leipziger Marktplatz.

Petersstrasse is the best retail location in Eastern Germany and its retail rents are commensurate with this status, ranging up to 115 euro per square metre – a nearly 10 % increase since 2005.

According to the real estate company JLL, Grimmaische Strasse has greatly improved in recent years. The street, and particularly its middle stretch, was long dominated by Galeria Kaufhof department store. However, the quality of the street from a retail store standpoint has improved across the board thanks to two events: the construction of a building next door to Galeria Kaufhof that extends to the corner of Universitätsstrasse, and the advent of prominent retailers.

Store rents currently range up to 110 euro per square metre, a 13 % increase over 2005.

The latest arrival is the British shoe retailer Clarks, which took over the former Puma boutique. Other recent openings include the women’s and men’s fashion retailers Empimo and L‘Occitane as well as the Mico boutique, whose entrance is on Reichsstrasse.

The building at Grimmaische Strasse is slated to be replaced by a new construction.

In March 2012, Douglas will be opening its second store (around 500 square metres) in downtown Leipzig at Grimmaische Strasse 25, where a 120 square metre Claire’s store will open in the same month.Leinweber has leased a 400 square metre space in the new Universitätsgebäude building for its “active shoe” concept.

Leipzig also offers myriad shopping malls, which are located either in the downtown area as is the case with Promenade Hauptbahnhof, or on the edge of town, e.g. Paunsdorfcenter, Nova Eventis and Alleecenter.

Paunsdorf-Center, Leipzig

124

locationgroup research | Retail Market Study 2012

28 German real estate investments – the biggest deals .

The largest deal in the German real estate investment market last year was Dundee International REIT’s purchase of the Deutsche Post portfolio.

Most transactions revolved around shopping properties, with 12 of the 20 largest direct real estate deals involving this segment, while

Deal

only two large transactions involved office space alone. An additional deal, the sale of Frankfurt’s Westendgate office high-rise, is probably worth 150 million euro but has yet to be officially confirmed. All five major residential real estate portfolio sales were recorded during the second half of the year.

΄000 Euro Buyer

Seller

Jupiter portfolio (mixed)

736 Dundee International REIT

Lorac Investment Funds (Lone Star)

Metro Cash & Carry portfolio (mall)

700 Cerberus

Beisheim/ Haniel/ Schmidt-Ruthenbeck

50 % of Centro Oberhausen (EZH)

650 Canada Pension Plan Investment Board

Stadium Group

Greentowers/ Deutsche Bank head office,

584 DWS Investment

Deutsche Bank

PEP Neuperlach (mall)

415 TIAA-CREF

Rreef

Silberturm, Frankfurt (office building)

390 IVG Immobilien

Commerzbank

Gropius Passagen, Berlin (mall)

341 Mfi

WealthCap Real Estate Management

Residential package containing 4,800 units

330 GSW Immobilien

Gagfah

Frankfurt (office building)

Package comprising 4,683 apartments and 59 commercial units in Berlin

- Degewo and Gesobau

Corpus Sireo

A portion of Skyline Plaza, Frankfurt (mall)

288 Allianz Real Estate

CA Immo and ECE

Three Karstadt stores in Hamburg and Münster (mall)

250 Quantum

Highstreet

85 % of Hamburger Meile in Hamburg (mall)

250 Real I.S.

ECE, Bruhn

Oberpollinger & Karstadt Sport Munich (mall)

250 Centrum, Signa Holding

Highstreet

Residential portfolio from a level-one bankruptcy 220 Blackstone

Level One Asset Management

Commercial real estate portfolio (mall)

200 Morgan Stanley and Redos

Semmelhaack

TAG residential real estate portfolio in Northern and Eastern Germany

150 TAG Asset Management

Institutional investor

Pasing Arcaden Munich (mall)

150 mfi

Bayern Immo KG (BayernLB subsidiary)

Neumarkt Galerie Cologne (mall)

135 Signature Capital

Görg (bankruptcy attorney)

Falcon Crest portfolio Berlin (residential)

130 Nicolas Berggruen Holdings

IMW Immobilien

Die Mitte, Berlin (mall)

130 Foreign private investor

Commerz Real (HausInvest)

locationgroup research | Retail Market Study 2012

125

29 M&A, are fashion deals set to increase or decrease in Germany over the course of 2012? .

Stephan von Parpart, Berenberg Bank: We are expecting that 2012 will bring a large number of mergers and acquisitions in the German retail clothing sector, some of which have already been announced. When it comes to family-run businesses, these transactions are mainly attributable to the lack of a successor to take over the business (as happened with Bonita for example), as well as financial problems (e.g. Wissmach).

Also, the terms of some investments in financial investors’ portfolios will expire in 2012 (e.g. Palmers). And some companies may want to sell off some of their holdings for portfolio related reasons, the currently best known example of this being Kaufhof. However, the question arises as to which snags the sellers might run into. In the past, in particular financial investors that engineered numerous takeovers experienced increasing difficulty when it came to arranging for the necessary financing.

Since the Jack Wolfskin affair, the financial market has been relatively locked down, particularly when it comes to merger and acquisition deals worth hundreds of millions of euro. A countervailing force here will undoubtedly be the funds held by private individuals and family offices that are in search of high-value investments and are normally less dependent on external bank financing.

However, uncertainty about the economy may also cause problems. During the first half of 2011, potential investors were more reluctant to take the plunge than in the latter half of the year, even if the company in question had shown no signs of a crisis. And the parties may simply be unable to agree on a price. Plus there’s the

fact that parties that are not in a big hurry to sell would rather wait instead of obtaining what will probably be a low price for their company in a currency that may lose value. As we are currently seeing in the real estate sector, in case of doubt private-sector owners in particular would rather sit on their assets.

Thomas Schlytter-Henrichsen, Alpha: Financial investors display far less of an interest in the fashion industry than they do in other sectors. This is an area for experts and will remain so in 2012 as well. We are bound to see new fashionindustry mergers and acquisitions in the coming year.

The bank crisis in particular is making it difficult for some fashion houses to refinance their operations with a view to strengthening their own capitalization. Also, the relatively low price-earnings ratios of listed fashion companies may prompt some financial investors to take a closer look at public to private sector transactions.

Financing will in any case be a challenge.

Martin Weckwerth, Permira: In 2012, we are expecting to see new opportunities open up for appealing private-equity investments in the fashion industry. The main drivers of structural change in this sector and thus the criteria applied by investors are increasing purchase costs, the need to develop multichannel strategies, and the growing importance of brands. In terms of sourcing, rising raw materials and labour costs in Asia will bring about lasting change, particularly in the low-price segment.

This in turn will alter the conditions on the ground, which means that the players with the best responses will also fare the best in a market environment that’s highly competitive and fraught with difficulty.

Multichannel strategies make it necessary for brick and mortar stores to find ways to combine the various channels in a way that will help these stores find customers. Here, innovative approaches will enable well positioned retailers to achieve above-average growth. Strong brands will take on greater importance in such a market environment. Clearly positioned brands offer growth potential and can thus offer appealing investment opportunities. Thus, we can expect to see mergers and acquisitions in the fashion industry in 2012.

Jack Wolfskin commercial

126

locationgroup research | Retail Market Study 2012

30 High-growth for shopping malls and department stores .

German shopping malls display robust retail-space growth According to a TextilWirtschaft analysis, despite the financial crisis and myriad store bankruptcies, Germany’s fleet of shopping mall retail space is set to grow at a rapid clip in the coming years. Some 57 new shopping malls are in the pipeline for 2010 to 2013, which means that more than 4,000 new stores with aggregate space amounting to around a million square metres may open – half the size of Monaco. The aggregate cost of these malls is estimated to be in the neighbourhood of 7,2 billion euro.

Top-performing malls – CentroO, Weserpark and Citti-Park Kiel Kiel’s Citti-Park, CentroO Oberhausen, and Bremen’s Weserpark afford their tenants the highest sales, according to an Immobilien Zeitung survey of store tenants at 200 German shopping malls. The lowest sales were registered at Munich’s Mira, Wiesbaden’s Lilien Carré, and Witten’s Stadtgalerie malls.

For the Shopping Centre Performance Report 2011, ecostra, CB Richard Ellis (CBRE) and Immobilien Zeitung surveyed store tenants at 200 German shopping malls with more than 10,000 square metres of retail space and asked the respondents how satisfied they are with their store’s sales performance compared to other shopping malls where the tenant also had a store. The store owners responded on a scale of 1 (very satisfied) to 5 (dissatisfied).

The assessment included only those malls to which a minimum of five respondents gave a rating, i.e. 158 malls in all. And only store

tenants were allowed to participate who had a store in at least three of the 200 malls. “As far as we know, this is the first survey of this type to have been conducted in Germany, and maybe in all of Europe,” said Ecostra owner and report initiator Joachim Will.

The top performing mall was Kiel’s Citti Park whose score was 1,57, followed by CentroO Oberhausen (1,65) and Bremen’s Weserpark (1,77). The 20 top ranked malls include some of Germany’s oldest and largest, including Breuningerland Ludwigsburg (1,81, ranked 4th), Donau Einkaufszentrum in Regensburg, Main-Taunus-Zentrum near Frankfurt (both 2,0 and ranked 12th) and Ruhrpark Bochum (2.06, ranked 17th).

At the lower end of the rankings are numerous malls of more recent vintage, including Loop5 near Darmstadt (3,75), Centrum Galerie in Dresden (3.86) and Lilien Carré in Wiesbaden (4,42). The lowest ranked mall (158th) was Munich’s Mira (4,55), which opened in 2008.

Malls with more than 40 000 square metres of retail space received high scores, while malls with less than 20 000 square metres of retail space fared considerably worse (3,24). Considered in terms of their age, the malls that opened between 1991 and 2000 came out ahead (2,6), while those that opened in 2001 or later received an average score of 2,97. The out-of-town malls received a better average score (2,61) than their downtown counterparts (2,84). The complete report, including a tabular list of the 20 highest and lowest scoring malls, is available at www.iz.de/shoppingcenter.

CentrO Shopping Center, Oberhausen locationgroup research | Retail Market Study 2012

127

The 20 best malls:

Mall name Average score Number of times ranked

1

Citti-Park Kiel

1,57

7

2

CentrO Oberhausen

1,65

20

3

Weserpark Bremen

1,77

13

4

Breuningerland Ludwigsburg

1,81

21

5

Famila Einkaufsland Wechloy Oldenburg 1,83

12

5

Förde Park Flensburg

1,83

6

7

Lago Shoppingcenter Konstanz

1,85

13

8

Alexa Shoppingcenter Berlin

1,88

24

8

Allee-Center Magdeburg

1,88

17

10

Breuningerland Sindelfingen

1,90

20

11

Löhr-Center Koblenz

1,96

25

12

SchwabenGalerie Stuttgart

2,00

5

12

Brücken-Center Ansbach

2,00

11

12

Donau-Einkaufszentrum Regensburg

2,00

12

12

Main-Taunus-Zentrum Sulzbach

2,00

20

12

Werre-Park Bad Oeynhausen

2,00

14

17

Ruhrpark Bochum

2,06

16

18

Elbepark Dresden

2,08

12

19

KaufPark Eiche Ahrensfelde

2,13

8

20

Schlosspark-Center Schwerin

2,14

22

20

Lindaupark Lindau

2,14

7

20

Köln Arcaden

2,14

14

20

Saarpark-Center Neunkirchen

2,14

21

Quelle: Immobilienzeitung

McArthurGlen sees great potential for outlet malls in Germany The British outlet mall operator McArthurGlen has opened the second new wing of its Berlin designer outlet mall, which doubles the facility’s retail space to 16,500 square metres and the number of outlets to 80. The new arrivals include Cinque, Converse Footwear, Gant Footwear, Desigual, Diesel, Escada, Fossil, Vero Moda, Lacoste and Tom Tailor Kids.

McArthurGlen plans to open, in Neumünster, its second German outlet mall during the latter half of 2012 in a facility with 20,000 square metres of retail space. The mall will be located in a field around 5 kilometres outside of Neumünster and an hour’s drive from Hamburg. McArthurGlen has indicated that its next candidate for an outlet mall is the state of North Rhine-Westphalia. Currently, McArthurGlen is meeting the needs of Germany’s most populous state for designer outlets via the outlet mall in Roermond, Holland, which attracts many North Rhine-Westphalia customers as it is located near Cologne.

McArthurGlen sees great untapped potential for outlet malls in Germany. According to the market research organisation Econda, Germany has only 1 square metre of outlet retail space per 1,000 inhabitants. The figure is ten times larger in Great Britain.

Zweibrücken – The Style Outlets enters its third and final expansion phase The Spanish retailer Neinver plans to add 4,400 square metres of retail space to The Style Outlets by the fall of 2010, which will bring the mall’s total retail space to 28,000 square metres – enough to accommodate 30 new retailers. However, exactly which retailers will be taking up residence at the mall will not be disclosed prior to the opening date (this is an ironclad rule among designer outlet mall operators). The mall will then contain 130 stores that sell designer wares at discount prices.

Loop 5 Darmstadt

128

locationgroup research | Retail Market Study 2012

Citti-Park Kiel

Outlet and City merge in Metzingen Outletcity in the small Swabian town of Metzingen, which is one of Germany’s most renowned factory outlet malls, has more than 50 stores in a 25,000 square metre facility. A new access road is currently under construction, and starting this fall a new pedestrian zone will link the mall with Metzingen’s old town.

the Rhine from Iffezheim, will be modelled on that of an Alsatian village. The mall has more than 27,000 square metres of floor space and is located on a 50,000 square metre campus.

The newcomers to the mall are thus Fossil, Swarovski and Milka, with Calvin Klein and Max Mara set to follow. Metzingen is one of Germany’s top retail locations and is visited by more than 3 million people from 185 countries annually. The city is ranked seventh in Germany in the hit list of sales generated by foreign tourists published by Global Tax Refund.

MAB Neinver – ambitious plans A total of 350 million euro will be invested in outlet malls in Germany and France over the next four years.

Factory Outlet Centre Roppenheim will be opening for business in April 2012. The mall will offer French, German and international brand products in the fashion, sports, accessories and furnishings domains. The two project developers see a potential clientele amounting to 8,4 million persons in the mall’s local (Oberrhein) region, plus tourists who will be spending their vacations there.

The mall will contain 107 brand stores with medium and premium quality goods. The architecture of the mall, which is located across McArthur Glen opening, Berlin locationgroup research | Retail Market Study 2012

129

The Ulm-based Mutschler Group to open an outlet mall in Soltau A building permit application has been submitted for this outlet mall, which has been in the pipeline for a decade. “We figure, we’ll be getting the permit this summer, which means that we’ll be able to open in the spring of 2012,” says CEO Sylvie Mutschler.

Located on highway A7 between Hamburg and Hannover, the mall site is in close proximity to the renowned Heidepark theme park. With 9 990 square metres of retail space, the mall will come in just under the mandated 10,000 square metre limit. The mall, which will be realised in a restrained village-like architectural style, will be operated by the British outlet mall specialist GVA. Mutschler, which will be investing around 50 million euro in the project, is a medium sized family owned company that mainly specialises in commercial-property development.

Outlet-Center Soltau

Outlet City Metzingen

The Style Outlets Zweibrücken

130

locationgroup research | Retail Market Study 2012

31 Austria with new Anglo-american retailers .

Though Austria is a promising market for international retailers, good locations are few and far between since the country has little in the way of multi-regional shopping streets and large shopping malls that would be conducive to an Austrian market entry. Despite the fact that Austria has one of the highest retail space densities in Europe, numerous new shopping malls are in the pipeline, particularly in the Vienna area. Thirty such projects with an aggregate 480,000 square metres of retail space have been announced.

The most important Austrian malls that have opened in recent months are as follows: Kaufhaus Tyrol in Innsbruck, V’arena in

locationgroup research | Retail Market Study 2012

Vöcklabruck, Einkaufszentrum Riverside in Vienna, Shopping Center West in Innsbruck, Lentia City in Linz and Tenorio in Wolfsberg.

Some malls have been expanded, such as Vienna’s Donauzentrum, which now has 80,000 square metres of retail space, making it the city’s largest mall.

Austrian shopping mall sales average 4,500 euro per square metre, with the top 15 malls registering sales of 5,500 euro per square metre and up.

131

32 Vienna’s Golden “U” with new luxury retailers . to retailers such as Louis Vuitton, Prada, Miu Miu, Seven, Armani and Church’s. The mall is scheduled to open in 2012.

Rents in the Golden U (Kärntner Strasse–Graben–Kohlmarkt) are in the neighbourhood of 300 euro per square metre. Other top locations such as Mariahilfer Strasse and well frequented malls have thus far barely felt the effects of the crisis. The only change is a marked decline in the willingness to pay key money.

Project Tuchlauben, Vienna

VIENNA, which is the capital of Austria and also one of the country’s nine federal states, has a population of 1,7 million and is thus Austria’s most populous city. The Vienna metropolitan area has around 2,4 million inhabitants, which is more than 25 % of the country’s total population. Vienna is the ninth most populous city in the EU. Vienna’s retail sector is doing extremely well, and despite the uncertain economic outlook, demand for new retail space is still high. Despite the current price pressures on the worldwide shopping property sector owing to the current economic situation, it has been shown that quality indisputably wards off major price fluctuations. Vienna’s retail property sector has been holding up quite well. According to the CPB report that was published for the Real Vienna real estate show, rents for retail space in choice locations have maintained a uniformly high level in recent years.

Vienna’s Golden U Trends in the Golden U: While Kohlmarkt, Graben and Kärntner Strasse were at one time home to traditional family businesses, in recent years the Golden U has increasingly been dominated by high-end international boutiques and major brand retailers.

Signa Holding, which is developing a new high-end shopping mall in the heart of Vienna, has already leased space in the mall

132

But the situation is less rosy in Vienna’s classic second-rank locations such as Bezirkseinkaufsstrasse, Meidlinger Hauptstrasse and Favoritenstrasse. According to a CPB analysis, “International retail chains, which used to be the key drivers of growth, now feel compelled to switch from an accelerated growth program to a consolidation program and thus focus on optimizing their branche structure rather than expanding it.”

The kind of traditional businesses those are so common in downtown Vienna can no longer afford the high rents there and are thus being forced to relocate to side streets or simply go out of business. The latest spate of new store openings is thus also following a trend that is unstoppable.

Shopping-street rents Location Net monthly rent per square metre (in euro) Kohlmarkt

180-340

Graben

180-270

Kärntner Strasse

140-210

Innere Mariahilfer Strasse

60-130

Rotenturmstrasse

30-125

Favoritenstrasse

30-60

Neubaugasse

20-60

Landstrasser Hauptstrasse

15-45

Meidlinger Hauptstrasse

10-30

Thaliastrasse

10-30 Source: EHL Research

locationgroup research | Retail Market Study 2012

33 Austrias’s new openings – Forever 21 takes Vienna by storm .

Mariahilferstrasse, which is Vienna’s largest and most renowned shopping street with 140,000 square metres of retail space, links the downtown area with the outer Penzing district. The street is named after Vienna’s current 6th district and erstwhile suburb, Mariahilf.

Forever 21 takes Vienna by storm The Los Angeles-based fashion retailer Forever 21 inaugurated its European expansion program with a two-pronged effort. Linda Chang, the daughter of the company founder, stated as follows on the occasion of the Vienna store opening: “We’ve been looking into Europe for years, and now we feel that we are ready and willing to move into action.”

In May 2011 Forever 21 celebrated the opening of its first store, in Vienna, in a 4,100 square metre three-level space located in a top location on Mariahilferstrasse, near Zara and Peek & Cloppenburg.

In July 2011, Forever 21 opened a second, 2,000 square metre store on Kärntnerstrasse in a space formerly occupied (successively) by Bally, Salamander and Swarovski. The annual rent runs to a hefty 2.6 million euro.

Desigual takes over from Café Servus The Spanish fashion house Desigual is also expanding its presence in Vienna. Shopfitting of its new 1,000 square metre megastore on Mariahilferstrasse (taken over from Café Servus) is going great guns. The store will be the company’s first in downtown Vienna.

Opera building into the centre of Vienna, Stephansplatz, where a pedestrian zone leads west toward Graben.

Peek & Cloppenburg open a 12,000 square metre store Peek & Cloppenburg opened its 11th international department store on Vienna’s Kärntner Strasse in September 2011 in a 12,000 square metre space that was designed by the renowned architect David Chipperfield. The salient features of the space are Danube lime sandstone and large “stacked” windows.

This renders the space very light and affords customers a view of the old town’s historic buildings from all levels of the store. The unusually high 4,75 and 3,75 metre ceilings also admit abundant light. This is Peek & Cloppenburg’s third store (after Berlin and Stuttgart) to embody the retailer’s “fashionation” concept. The store, which has around 500 square metres of floor space, features a mix of international avant-garde fashions and creations of lesser known retailers, in alternating six-month cycles.

BIG buys Peek & Cloppenburg property for 50 million euro Having purchased the Peek & Cloppenburg building complex at the corner of Kärntnerstrasse and Himmelpfortgasse for 50 million euro, Bundesimmobiliengesellschaft (BIG) acquired a 60 % share in the project development company. Although the parties declined to disclose the purchase price of the acquisition, BIG indicated that it had earned a reasonable return on the deal.

s.Oliver opens concept store in Vienna s.Oliver has opened its first “Concept Store” in Austria in Vienna.

The store is located on Vienna’s famous and high-frequented Mariahilferstrasse on a space of more than 1,000 square metres and two floors.

Second Camper boutique opens in Vienna In the fall of 2011, Camper opened its second Vienna boutique on Mariahilferstrasse in a space formerly leased by the fashion retailer Fürnkranz. Camper’s first Vienna store opened in late March on Wiener Graben.

Austria gets its first Bose Experience Centre Customers will now have the opportunity to discover the Bose world of sound in a central location on Vienna’s Mariahilferstrasse, not far from the museum district. The high point of the Bose Experience Centre is its movie theatre.

Kärntner Strasse, which along with Graben is one of downtown Vienna’s most renowned streets, begins at Karlsplatz and Friedrichstrasse, and from there wends its way past the Vienna State Project Tuchlauben, Vienna locationgroup research | Retail Market Study 2012

133

Triumph opens flagship store Following the closure of Fürnkranz, a traditional business located on Kärntnerstrasse, space comprising 173 square metres on the ground floor and 127 square metres on the second floor was leased by the lingerie retailer Triumph for nearly 1 million euro annually.

Esprit takes over from H&M In the spring of 2012 (somewhat behind schedule), Esprit will be taking over the former H&M space next door to Forever 21. A year previously, Esprit signed a lease on a former Schöps store on Mariahilferstrasse.

Joseph Ribkoff on Stephansplatz The Canadian women’s fashions retailer Joseph Ribkoff has opened its first monolabel store on Stephansplatz in the heart of downtown Vienna. The store will be operated by Xenia Luxardo.

Graben, one of downtown Vienna’s most renowned streets, begins at Stock-im-Eisen-Platz at Palais Equitable and ends where the street branches off to Kohlmarkt and Tuchlauben. Graben is one of Vienna’s most magnificent streets.

Project Tuchlauben, Vienna

134

locationgroup research | Retail Market Study 2012

Swatch Group expands Swatch Group will be investing up to 10 million euro in Austria, with the lion’s share of the funds going to a 420 square metre Omega boutique on Stock-im-Eisen-Platz that is scheduled to open in 2012.

Bally opens second largest flagship store In the summer of 2010, the Swiss shoe retailer Bally opened its second largest (365 square metre) flagship store in a Germanspeaking country on Vienna’s Graben (the largest store is in Zurich). The new store, which is in a protected landmark building, extends over two levels.

Bucherer opens IWC Schaffhausen store IWC Schaffhausen opened its tenth European boutique. The lilliputian 20 square metre store on Graben will be run by Bucherer.

Rolex debuts at the corner of Graben and Tuchlauben In early December 2011, Rolex opened its first Austrian store at the corner of Graben and Tuchlauben. The store will be run by Hermann Gmeiner-Wagner, who is one of the eight Rolex dealers in Austria.

Around 5 million euro was invested in shopfitting the store, via a joint venture with a new Juwelier Wagner store.

Amicis moves in next to Rolex The Vienna multibrand retailer Amicis has relocated its men’s store to Tuchlauben 4, which is located between the recently opened Juwelier Wagner Rolex store and Fabios, and right across the way from the future luxurious offices of René Benkos Signa Holding, which are under construction.

Kohlmarkt, a shopping street located in downtown Vienna in the district known as 1. Wiener Gemeindebezirk, extends from Michaelerplatz to Graben, and by virtue of the large concentration of jewellers and international fashion retailers with stores here, is regarded as Vienna’s most luxurious shopping street.

Project Tuchlauben, Vienna locationgroup research | Retail Market Study 2012

Louis Vuitton to open on Tuchlauben The listed luxury goods retailer LVMH will be selling its products in a store on Tuchlauben that is said to be a one of a kind in Europe.

“We are proud and delighted to have the luxury retailer Louis Vuitton as a tenant in one of our properties,” said Signa Group founder René Benko. “This is further proof that our shopping properties represent the top locations for premium retailers in Vienna.”

As part of the same Signa project, Prada will be moving into an around 1,500 square metre flagship store at the corner of Bognergasse and Seitzergasse in 2013.

Above the Prada store, some 11,000 square metres extending over three floors will be given over to luxury retailers, while the remaining floors will accommodate offices with ultra-modern furnishings and amenities.

Breguet expands on Kohlmarkt Breguet has completed the expansion of its boutique on Vienna’s Kohlmarkt, where the neighbouring space was taken over, increasing the store’s size from 30 to 180 square metres.

Zegna takes over from Bulgari Ermenegildo Zegna has taken over the former Bulgari store, a split-level 700 square metre space Zegna rents for 1,500 euro per square metre a year. The key money for the lease was in the lower seven digit range.

Moncler opens third Austrian store In the summer of 2011, Moncler took over the 190 square metre ground floor space formerly leased by Gil Couture, right across the way from Zegna. The key-money amount was not disclosed.

Vapiano opened at BahnhofCity The 100th Vapiano restaurant recently opened at BahnhofCity

Bally Tuchlauben, Vienna

135

Wien West with a new design by the Milan architect and interior designer Matteo Thun, who has been mulling over the current interior since 2002. According to Mr. Thun, “The main aim of our concept for Vapiano is to ensure that the restaurant is imbued with Mediterranean lightness at all times. The re-design is an offshoot of this original concept, which guests notice at a subliminal level only.” The new 733 square metre Vapiano restaurant seats 180 inside and 80 in the garden.

Red Bull opens first international store in Salzburg Red Bull will be selling its various products in a 320 square metre space that was previously home to the Tanja Gündling fashion boutique, whose eponymous owner will also be running the Red Bull store.

Salewa opened a store in Salzburg The 340 square metre store on Salzburg’s Alpenstrasse carries a broad range of Salewa and Danafit products.

Red Bull World Store Getreidegasse, Salzbug

New Bogner store opened in Salzburg The new 210 square metre store in Salzburg’s old town is operated

by Bogner itself. The company has achieved worldwide success since its founding in 1932, and in mid November 2011 opened its new store on Sigmund-Haffner-Gasse.

Swarovski reopens with a 1,200 square metre store, renovated at a cost of 8,5 million euro In August 2011, after eight months of construction, Swarovski opened its doors on Herzog-Friedrich-Strasse in Innsbruck, in a larger, more modern and above all more multifaceted space.

Innsbruck now has one of the world’s largest Swarovski stores, and with it a unique shopping ambience.

Thanks to an around 8,5 million euro investment, Swarovski has now moved into a location that provides a direct and intense crystalline experience. In a split-level 1,200 square metre space, Swarovski will be presenting its entire portfolio comprising crystal components and objects, jewellery and accessories and precision optical devices.

Jet Set opens new store in Kitzbühel The tenth Jet Set store opened in the fall of 2011 at a top location in a 200 square metre space in Kitzbühel. Following this opening and Peter Kappler’s departure, the expansion program was put on the back burner so as to allow Jet Set time to chart its course for the future.

Moncler Boutique Kohlmark, Vienna

136

locationgroup research | Retail Market Study 2012

Peak Performance sponsors Hahnenkammrennen marathon and opens store in Kitzbühel The store of the Swedish ski, golf and casual wear retailer Peak Performance opened in a 100 square metre split-level space formerly leased by Sport Ober. At the same time, plans for a long-term partnership with the Hahnenkammrennen Alpine ski races were announced. Starting in 2013, Peak Performance will be the official clothing sponsor of the world-renowned races.

Witty Knitters joins forces with Jet Set Witty Knitters is the brainchild of a group of Hamburg-based cashmere enthusiasts with extensive experience in the fashion industry. Witty Knitters boutiques are a world unto themselves – unique and highly evocative, like the company’s cashmere fashions. Having opened a first store on Sylt last June, the company opened a flagship store in Hamburg and a third store in Westerland; and in December 2011 came the fourth store, a 200 square metre space in Kitzbühel.

Jet Set Boutique Vorderstadt, Kitzbühel

Swarovski flagship store Herzog-Friedrich-Strasse, Innsbruck locationgroup research | Retail Market Study 2012

137

34 Austrian investment market news – Kaufhaus Tyrol wins award .

Kaufhaus Tyrol wins award Kaufhaus Tyrol, which was built at a cost of 155 million euro, was awarded the “best shopping mall in Europe” award by the ICSC European Conference. Designed by the British star architect David Chipperfield, the mall accommodates 50 stores in its around 33,000 square metres of retail space. The project investor was Signa Holding.

for this, the largest remodelling project in the company’s 138 years history, took two years.

Kastner & Oehler invests 40 million euro The pioneering Graz-based department store Kastner & Oehler invested 40 million euro in its flagship store to increase the store’s retail space to 40,000 square metres.

Bahnhof City West opens Vienna’s new Bahnhof City West mall opened in November 2011 after nearly three years of construction at a cost of 200 million euro, which was provided by OEBB Immobilienmanagement GmbH for the realization of retail space, offices, and a Motel One Hotel. The 17,000 square metre mall, which managed by ECE, accommodates 90 stores, and all spaces have been leased. The mall is frequented by more than 40,000 persons daily.

The result is a building that is in a class by itself: 20,000 square metres devoted to fashion and 8,000 for sportswear – plus superb fragrance and home furnishings departments, restaurants, a supermarket, a dm discount drugstore, an eyewear store, a hairdresser, and a Mister Minit locksmith – all under one roof. Construction

Gerngross invests 40 million euro After eight months of renovation (during which the store remained open) at a cost of 40 million euro, Gerngross department store at Mariahilfer Strasse reopened. Gerngross, with its 30,000 square metres of floor space, is one of Vienna’s most renowned shopping

Kaufhaus Tyrol opening, Innsbruck

138

locationgroup research | Retail Market Study 2012

destinations. After the Palmers Group sold the building in early 2004 for 112,3 million euro, the decision was made to renovate and restructure the store. In 2005, the new owner Deka Immobilien Investment GmbH held an architecture competition that was won by Graz-based Love Architects.

Otto acquires a majority share of Innsbruck shopping mall Six years ago, the German mail-order giant Alexander Otto, which owns Europe’s largest shopping mall development company ECE Europa, acquired a 25 % stake in the DEZ shopping mall. At year’s end, Otto increased its stake in DEZ to 50,1 %, while Hannes Hess, the former majority shareholder, retained the remaining 49,9 % of the shares. The deal also calls for an increase in DEZ’s capital, with only a minute amount going to Mr. Hess’s private foundation. The amount that changed hands was not disclosed. Mr. Hess, 62, who took over as CEO of DEZ in 1986, will no longer be involved in day to day operations beginning in 2012. According to Mr. Hess, he will be focusing more on strategy and on real estate development.

Gerngross department store Mariahilfer Strasse ,Vienna

Having completed two waves of investment totalling an aggregate 40 million euro, the DEZ mall now has 123 stores with retail space amounting to 24,800 square metres. The mall generates annual sales amounting to 169 million euro, and a total of 7,5 million visitors have been counted since inception.

Bahnhof City Wien West locationgroup research | Retail Market Study 2012

139

35 G3 Shopping Centre in Gerasdorf – a recently realised out-of-town shopping mall . tersection of three main highways (S1, A5, B7), while its catchment area extends to Austria’s neighbouring regions and to the part of greater Vienna that is north of the Danube.

Apart from being the largest Austrian mall to be built in a single construction phase, GE is also the largest mall project to have undergone an environmental impact assessment. Likewise unique in the annals of Austrian malls is G3’s architecture, customer orientation, and environmentally friendly construction modalities, which are unknown in projects of this size.

G3 shopping resort Gerasdorf

Owing to the current high density of retail space in Austria, in the future malls will mainly be renovated or expanded, and most new malls will be built in downtown areas or on the outskirts of large cities.

G3 Shopping Centre in Gerasdorf – a recently realised out-of-town shopping mall The G3 mall, which is slated for opening in the spring of 2012, is unique in Austria in many respects. The mall is located at the in-

The mall’s name, G3, is intended to indicate that the Gerasdorf mall is not just one building, but instead an agglomeration of three building complexes: a specialty mall, a classic mall, and a DIY and garden supply centre known as Bau- und Gartenmarkt Hornbach. G3 will accommodate around 200 stores spread across 70,000 square metres of leasable space. It is hoped that the mall will become a “marketplace for the region” comprising leading international retail chains, regional operators and products, and a lively mix of Austrian market leaders from various sectors.

Europark shopping centre, Salzburg

140

locationgroup research | Retail Market Study 2012

G3 has more than 100,000 square metres of floor space. The leasable portion of the classic mall amounts to 58,000 square metres, and there will be 12,000 square metres for lease in the specialty mall. The mall has 4,000 parking spaces, some of them located in an underground garage.

Rent index shopping center Location

A-Location: SCS, Donauzentrum B-Location: Q19, SCN, LugnerCity, Zentrum Simmering C-Location: Interspar Sandleitengasse, Arcade Meidling, Zentrum Hernals

Netto rent EUR/m2/month

Price trend

40-200

slightly increasing

14-45

stable

8-15

slightly decreasing

Source: EHL Research

Superdry commercial, Salzburg

Donauzentrum Vienna locationgroup research | Retail Market Study 2012

141

Sillpark Tyrol

Hollister comes to Austria The first two stores of the American fashion house Hollister opened at Graz’s Murbark and Salzburg’s Europark in around 700 square metre spaces each, on 1st December, 2011. Marcus Wild, CEO of Spar European Shopping Centres said: “There was a veritable competition among the various malls for the first store, and we are very proud to be the first.” A week later, the third Hollister store opened in a 400 square metre space at Vienna’s Donauzentrum mall.

Superdry in Salzburg Superdry’s first Austrian store opened at Salzburg’s Europark, where the British fashion retailer decided to inaugurate its first Austrian flagship store, having opened stores previously in Berlin and Munich. The Europark Superdry store is a 250 square metre ground floor space that carries the whole gamut of the company’s products.

Hunkemöller and G-Star come to Donauzentrum The Dutch undergarment retail chain Hunkemöller opened its first Austrian stores on 4th November at Vienna’s Donauzentrum and plans to open nine additional stores in Austria by the end of 2012.

The new store is a 140 square metre space.

142

The denim retailer G-Star Raw also opened a store at Donauzentrum, in partnership with a franchisee. The new 295 square metre store has an excellent location right at the mall’s main entrance.

Primark comes to Austria In September 2011, the Irish department store chain opened its first Austrian branch at Sillpark. Primark sells fashion skirts, dresses, pants and accessories at prices far lower than those of its competitors, discounters included, and in a store that is also far more spacious than those of its competitors. The company’s flagship store on Oxford Street in London has around 100 cash desks.

“Primark currently has the most attractive concept in the retail clothing industry,” says Marcus Wild, CEO of the mall operator SES (a member of the Spar Group), which operates Innsbruck’s Sillpark mall.

The British-Irish chain, whose sales amounted to 3,2 billion euro last year, is expanding in Europe and has opened seven stores in Germany over the past two years. The company is planning to open between five and seven stores in Austria, two or three of which will be located in the Vienna area. Still unconfirmed is a store at the

locationgroup research | Retail Market Study 2012

new Gerasdorf mall near Vienna, which is slated to open in early 2012. Primark says that it is “holding discussions” with Austria’s ten largest malls.

Kappdahl debuts in Austria The Swedish fashion retail chain Kappdahl plans to expand into Austria in the fall of 2012. The discounter’s first store (800 square metres) for the whole family is slated to open at Ikea Haid Centre near Linz, with an additional five or six openings planned over the next 12 months, according to Vice President Expansion Hans Jepson. Kappdahl plans to ultimately open 50 stores in Austria.

Train station mall space in great demand The focus here is undoubtedly on the new malls at Vienna’s major train stations such as Westbahnhof, Zentralbahnhof and Wien Mitte, which will greatly increase the amount of available retail space at these train stations.

The early stages of the marketing process have already shown that train station malls will be stiff competition for outskirt and out-of-town malls. There is a strong trend toward malls that are integrated into the fabric of the city centre, as such malls offer the convenience of urban shopping and thus provide customers with genuine added value. It is safe to assume that all three malls at Vienna’s major train stations will fetch top rents.

Out-of-town specialty malls Another species of shopping real estate that has existed in Austria for years may also be in for some changes: specialty malls, which have sprung up on the outskirts of many Austrian cities. In most cases, the same tenants are found in all such malls and can be counted on the fingers of two hands.

The specialty-mall model has proven to be successful. “Thanks to their low rents and their tenant structure offering a clearly identifiable focus in the low and medium price segments, specialty malls have been the big winner during the crisis,” says Ehrenberger. But a trend toward higher quality is also in the offing for such malls.

Inasmuch as small specialty malls in less desirable locations can only attract tenants (if at all) that sell their wares at dumping prices, the larger malls that also invest in quality are in greater demand.

According to a recent study by the consulting firm Standort + Markt, between 2000 and 2010 Austria’s specialty-mall retail space fleet doubled to 4,4 million square metres.

Hence half a square metre of specialty mall space is already available for each Austrian. The number of specialty malls per se has more than doubled as well, from 1,400 to 3,200.

Shopping-Center Austria Rank Shopping-Center

City

GLA x 1,000 sqm

Opening

Number of stores

1

Shopping City Süd

Vösendorf

132

1976

330

2

Donauzentrum

Vienna

129

1975

260

3

Center West

Graz

94

1989

60

4

Shopping City Seiersberg

Seiersberg

85

2003

200

5

Pluscity

Pasching

70

1989

200

6

Haid Center

Haid

63

1991

58

7

Europark

Salzburg

51

1997

130

8

UNO Shopping

Leonding

44

1990

80

9

Messepark

Dornbirn

41

1987

65

10

ATRIO

Salzburg

39

2007

75

11

Stadion Center

Vienna

26

2007

63

12

Shopping-Center Nord

Vienna

26

1989

80

13

Südpark

Klagenfurt

23

1998

85

14

City Center Amstette

Amstetten

23

2001

70

15

Fischapark

Wiener Neustadt

21

1996

46

locationgroup research | Retail Market Study 2012

143

36 Austrian M&A Deals – Don Gil is no more .

Don Gil is no more The bankrupt, 29-store retail clothing chain Don Gil was acquired by the German fashion retailer Gerry Weber International AG for 7.3 million euro, a move that enabled Weber to implement its Austrian expansion plans ahead of schedule (the company already has 23 stores in Austria). Don Gil was forced into bankruptcy owing to the insolvency of its Italian parent Mariella Burani Fashion Group. The company’s indebtedness ran to 35 million euro.

Leder & Schuh acquires Stiefelkönig BAWAG Bank, which owns the Graz-based retail shoe chain Stiefelkönig, has sold it to the likewise Graz-based Austrian market leader Leder & Schuh AG for an undisclosed amount. The Stiefelkönig retail chain comprises 66 stores, 54 of them in Austria and the remainder in Slovenia, Croatia and Slovakia.

Leder & Schuh AG owns Corti, Dominici, Humanic, Jello and Shoe4You – a total of more than 350 stores in 11 countries, with

more than half of the stores located in Germany, Bulgaria, Croatia, Poland, Romania, Slovenia, Hungary, Switzerland and Slovakia. Leder & Schuh’s 2010 sales amounted to 542,9 million euro.

Berggruen submits a new Kaufhof offer In December 2011, prior to the decisive Metro Group supervisory board meeting where a decision was to be made concerning a possible sale of Kaufhof’s store fleet, Nicolas Berggruen and the real estate investment group Blackstone submitted a better offer that not only called for a higher price for the department store chain, but also clearly indicated that Berggruen intends to maintain the existing Kaufhof management team and staff. In response to a question from Handelsblatt Online, a Berggruen Holding spokesperson confirmed that this was in fact the tenor of the new offer.

This development gave the negotiations with Kaufhof new impetus. Berggruen now hopes that it will be able to examine Kaufhof’s books. Up until now, only the Austrian real estate company Signa has conducted a detailed audit of Kaufhof’s accounts and subsequently submitted a detailed bid. The company is said to have offered 2 billion euro for the Kaufhof department stores.

But unfortunately, Signa CEO René Benko is under investigation by the Vienna district attorney for suspected money laundering. Until Mr. Benko is cleared of these allegations, the possible sale to Signa will have to be put on the back burner.

Stiefelkönig store

Gerry Weber Store

144

The Vienna district attorney’s office needs more time The Vienna district attorney’s office will not be able to complete its investigation of prospective Kaufhof purchaser René Benko before the 2011 Christmas holidays. An expert report by Austria’s BKA (equivalent of the FBI) came to the conclusion that the money laundering allegations against Mr. Benko are unlikely to stand.

The Vienna district attorney’s office received assistance from BKA money laundering experts in conducting its investigation of Mr. Benko.

René Benko locationgroup research | Retail Market Study 2012

Europe .

With more than 700 million inhabitants, Europe is one of the world’s most densely populated areas.

A major trend remains the on-going internationalisation of retailing. Both retailers and investors are looking increasingly across borders, with retailers seeing international expansion as a key response to the global crisis. However, while dominant locations are in demand from both groups, there is more variety emerging in the cities that each will focus on, with more occupiers ready to embrace less established markets, notably with more interest in emerging markets. While less risk-averse investors are ready to follow them,

locationgroup research | Retail Market Study 2012

core investors are still focussed on the largest mature markets.

Retailers meanwhile are also adapting their stores, their methods of operation and their strategies to enhance the customer experience and to develop their multi-channel offer, with m-commerce as well as e-commerce a key battleground. Not one strategy can be assumed to work in all markets but a need for efficient, wired and well-located visible property is a key theme in all top cities. Retailers, however, are facing decreasing supply for the best space and with development limited, rents have been bid up. In more secondary areas, the reverse is still true – availability is often still rising and rents remain under pressure.

145

Ende Latein?

Wo andere aufhören, fangen wir an.

Der direkte Zugang zur Schweizer Immobilienwirtschaft und zum «Who is Who» der Branche! Alles über Macher, Märkte und Investitionen – Monatlich in Ihrem Briefkasten, alle 14 Tage als E-Paper, wöchentlich per Newsletter und täglich online unter

IMMOBILIEN BUSINESS

Das Schweizer Immobilien-Magazin

146

locationgroup research | Retail Market Study 2012

FOTO: DREAMSTIME

www.immobilienbusiness.ch

37 London, Forever 21 pays 17 million euro key money .

LONDON is the capital of England and the United Kingdom. The current administrative area along with its various districts was defined on 1st April, 1965 with the establishment of Greater London, which has 7,8 million inhabitants, 2,9 million of whom live in the 13 districts of Inner London. Thus London is the EU’s most populous city. The London conurbation has a population of 8,3 million, while the population of the Greater London Urban Area was around 14 million in 2001.

London is one of the world’s most important cultural, financial and trading centres. Greater London, which is composed of inner and outer London, is divided into 33 boroughs, including the City of London and the City of Westminster.

London – a shopping destination par excellence London’s exclusive Mayfair district is vying to overtake Paris, Milan, New York and Tokyo as the place to go for luxury shopping.

New West End Company (NWEC), which is the marketing agency for stores on and around Bond Street, Jermyn Street, Oxford Street and Regent Street, has rolled out its London Luxury campaign.

Of the 600 retailers represented by NWEC, around 300 are luxury stores in the Bond Street area.

Bond Street, which is located in London’s Mayfair district, is one of the city’s priciest shopping streets. The street is named after Sir Thomas Bond, a developer who developed the district around Bond Street in the 17th century. The northern section of Bond Street, which runs into Oxford Street, is officially called New Bond Street, while the southern section, which runs into Piccadilly, is known as Old Bond Street, which is around half as long as New Bond Street.

The section of New Bond Street adjoining Old Bond Street at the cross street Burlington Gardens is an around 200 meter-long pedestrian zone.

Russian jeweller Maxim Voznesensky has signed to open its first UK store The luxury retailer has taken an 18-year lease on a store at Old Bond Street between De Beers and Etro as well as directly opposite Dolce & Gabbana and Alexander McQueen. Maxim Voznesensky secured the 66 square metre store after paying a premium of more than one million pounds. The retailer will pay a rent of 225,000 pounds a year.

The brand was originally launched as Jewellery Theatre in Russia in 1998, after being set up by Irina Dorofeyeva and Maxim Voznesensky. It currently has a store in Moscow.

Etro moves into a protected landmark building In August 2011, Etro opened a new 600 square metre store in the former Agnes and Sons gallery, between Maxim Voznesensky and Cartier and across from Tod’s and Alexander McQueen. The relocation was due to the fact that the existing 300 square metre space had become too small.

Cartier building sold at a yield of 3,1 % The Cartier store at 40-41 Old Bond Street has been placed under offer to the Irish businessman and racehorse owner JP Mc Manus and Irish property investor Aidan Brooks, for around 18 million pounds – a yield of around 2,8 %.

Tower Bridge view, London locationgroup research | Retail Market Study 2012

147

The property is let to the jeweller on a 20-year lease from 1999 at 540,000 pounds a year. It was put up for sale by BA Pension Fund with a price tag of 16,5 million pounds.

Gucci in new digs In November 2011, six doors down to the right, Gucci opened its completely remodelled 685 square metre flagship store on the corner of Stafford Street.

Prada property sold The Prada store which is located on Old Bond Street opposite Gucci and Yves Saint Laurent has been purchased by Asset manager Square Bay’s private client based in Thailand for nearly 32 million pounds, reflecting a yield of around 3,15 %. The total rent is more than one million pounds a month. The 1220 square metre building is let to Prada until 2022.

Etro Old Bond Street, London

New Bond Street store sets new record – 956 pounds per square feet and 1,9 million pounds key money Two years ago, Piaget set a new record for rent: 745,000 pounds (965 pounds per square feet), plus 1,9 million pounds key money for the property owner Brooks, which then passed this sum to the previous tenant, Bulgari.

Church’s debuts on New Bond Street The latest newcomer on New Bond Street is the 336 year old British shoe retailer, Church’s, which in September 2011 opened its first women’s store worldwide in a three-level 75 square metre space.

The new branch is totally dedicated to ladies‘ shoes and accessories set against a classic cherry wood interior. Church‘s have stayed true to their design ethos and created only traditional flat shoes in the form of lace-ups and brogues, cut specially for a woman‘s foot.

Piaget New Bond Street, London

148

Gucci Old Bond Street, London locationgroup research | Retail Market Study 2012

Solange Azagury-Partridge Solange Azagury-Partridge, the former creative director of the French jewellery house Boucheron and a native of the UK, creates unusual jewellery with a Pop-Art feel. Having started her jewellery company 21 years ago, in 1995 she opened her first London store, in Notting Hill. In late 2010, she opened a store in the 300 square metre former Louis Vuitton store, right across from Church’s.

Louis Vuitton reopened London store The London store re-opened recently after three years of renovation at a cost of 35 million euro. The new venue, which has more than 1,500 square metres of retail space, carries the entire range of Louis Vuitton products.

The chief executive of luxury goods company Louis Vuitton Moët Hennessy (LVMH) has bought three London properties that had been at the centre of a dispute between the National Asset Management Agency and developer David Daly. At the end of December 2011, Bernard Arnault had agreed to buy the properties on New Bond Street, London‘s most expensive shopping street, for 300 million pounds (358 million euro).

Solange Azagury-Partridge New Bond Street, London

Mr Arnault is France‘s richest man and, according to Forbes, has an estimated net worth of 41 billion dollar (31 billion euro). The deal was made pending the completion of a legal action taken by Mr Daly and his family against NAMA over the takeover of loans of 457 million euro. The Commercial Court in Dublin was told that this case had been settled out of court, which allowed the purchase to proceed.

17-20 New Bond Street is home to Louis Vuitton‘s flagship London store, with the other two properties let to American leather goods retailer Coach and luxury stationer Smythson.

Chanel pays 7 million pounds key money for Nicole Farhi store The Paris fashion house Chanel took over the around 1,000 square metre Nicole Farhi store, which is opposite the new Louis Vuitton Maison. The rent on the store, whose lease expires in 25 years, is 2.35 million pounds a year, which, while not a record amount, is rather steep for the space.

Nicole Farhi’s new flagship store After 17 years on Bond Street, the London fashion retailer Nicole Farhi has relocated to a new flagship store at the corner of Conduit Street and Old Bond Street. The six-level, 660 square metre store, which is located in a distinctive corner building, was formerly leased by the fashion retailer Krizia.

Prada throws glamorous gala opening Prada celebrated the opening of its latest Miu Miu flagship store, a split-level, more than 370 square metre space in London’s Lancaster House at the corner of Bond and Bruton Streets. Held in December 2010, the gala opening was attended by numerous movie stars and fashion luminaries such as Jessica Alba, Lily Allen, and Caroline Sieber.

Louis Vuitton Maison New Bond Street, London locationgroup research | Retail Market Study 2012

149

Nicole Fahri Conduit Street, London

Curch’s New Bond Street, London

Rock stars and royals at Tory Burch The January 2011 opening of London’s new Tory Burch store was attended by luminaries such as Eliza Doolittle, Jacquetta Wheeler, and Jade Williams; Princess Tatiana and Prince Nikolaos of Greece, Baroness Debonaire von Bismarck, and her son Nikolai lent the event an aristocratic feel. The more than 420 square metre store is Tory Burch’s second European outlet.

Fendi opens new flagship store and European headquarters The Italian fashion retailer, which took over the former Mallett Antiques store for 1,7 million pounds key money, plans to open its new flagship store in the latter half of 2012. The landlord, Jaymount Investments, set a new rent of around 1,2 million pounds for the around 1,000 square metre space. The key money from the sale of the lease to Fendi will be used to cover renovation costs in the new space. Mallett decided against renewing their lease in 2008 owing to a 30 % rent increase.

Hublot makes additional investments in major upscale shopping venues In June 2011, Hublot opened an around 100 square metre store at a choice New Bond Street location in the former Furla store next door to the fashion retailer Anne Fontaine and Green gallery. This was Hublot’s 36th boutique following the opening of new stores in Paris, New York, Beverly Hills, Miami and Ginza.

Missoni donates to Hope Foundation Three doors down to the right from Mallet, the Italian fashion retailer Missoni celebrated the opening of its second British store in June 2011 in a three-level, 325 square metre space. To mark the

Former Nicole Farhi Store New Bond Street, London

150

locationgroup research | Retail Market Study 2012

event, a special limited edition of a shoulder bag that is only available at Missoni’s New Bond Street store was created. All proceeds from the sale of these bags were donated to the Hope Foundation, whose official patron is Bella Freud.

Coach opens first European store The US accessories retailer opened its first European store on New Bond Street opposite Missoni in the former Mulberry store, where the New York retailer sells its products in a 690 square metre space.

New Mulberry flagship store opens on New Bond Street After two years of partnering with Universal Design Studio, the 500 square metre Mulberry store opened in December 2010 between F. Pinet and Emporio Armani.

A striking visual in the store is its more than eight metre long cash desk made of polished copper.

Miu Miu Flagship Store Bond Street, London

Tory Burch New Bond Street, London locationgroup research | Retail Market Study 2012

151

Tory Burch New Bond Street, London

Coach New Bond Street, London

Car Shoe opens first British flagship store The latest Prada store, Car Shoe on Bond Street, covers 105 square metres. It is located opposite Mulberry and Emporio Armani and was formerly occupied by Miu Miu. Victoria’s Secret debuts in Europe The US lingerie retailer will be opening its first European Victoria‘s Secret in the spring of 2012 at the corner of Brooke Street and New Bond Street. The opening was announced in the summer of 2010. The 1,500 square metres London store, which was formerly home to Silver Galeries, will carry Victoria’s Secret entire line of lingerie and cosmetics. The company plans to open additional outlets at British shopping malls.

Core Spirit opens flagship store The fashion retailer Core Spirit opened its first flagship store in 2011 on New Bond Street, next door to Kronometry, Victorinox and Calvin Klein. The 424 square metre, split-level store rents for around 370,000 euro.

Mount Street attracting increasing interest Grosvenor Group Ltd., which is owned by the Duke of Westminster’s family trusts, has transformed Mount Street in Mayfair into a cenCar Shoe New Bond Street, London

152

locationgroup research | Retail Market Study 2012

Hublot New Bond Street, London

tre for designer boutiques like Christian Louboutin, Marc Jacobs, and Vivienne Westwood.

The venerable raincoat retailer Mackintosh opened its flagship store at Mount Street 104 in London in January 2011 in an around 90 square metre splitlevel space.

Carolina Herrera boutique opens in London US fashion designer Carolina Herrera opened a boutique for her CH Carolina Herrera lifestyle brand at 120 Mount Street in London’s Mayfair district, in a 185 square metre split-level space that carries women’s, men’s and children’s fashions plus luxury accessories and shoes.

Victoria’s Secret Models

Oxford Street is London’s most important and renowned shopping street, and one of Europe’s most productive streets in terms of retail sales. Located in northern Mayfair, Oxford Street extends from Marble Arch in the west to St Giles Circus in the east. With more than 200 million visitors a year and more than 300 stores spread across 500,000 square metres of retail space, Oxford Street is also London’s most popular street. The opening of Debenhams and Selfridges in 1909 marked the beginning of the street’s life as a shopping street.

Mulberry New Bond Street, London locationgroup research | Retail Market Study 2012

153

Loewe Flagship Store Mount Street, London

Desigual pays record rent on Oxford Street This record rent was trumpeted in the headlines of the London papers. Having leased the former Disney store (which is sandwiched between Forever 21 and H&M) from its landlord Prupim for 1,5 million pounds a year, the Desigual store opened in the summer of 2011. Disney had been paying 540 pounds a square feet. The highest store rent on Oxford Street at the time was 615 pounds, and Desigual’s new rent is 710 pounds, a record amount. The store’s neighbours now fear that this steep rent will put them under pressure when the next rent review rolls around.

The annual rent for the shoe retailer Footlocker’s Oxford Street store has been raised from 1,8 to 2 million pounds by its Hong Kong-based landlord, London Land.

Forever 21 pays record 17 million Euro key money In July 2011, Forever 21 opened its first Oxford Street store in the former HMV Entertainment store, in a 3,250 square metre space. The retailer paid around 13,75 million pounds (around 17 million euro) key money. Annual rent runs to 3,25 million euro on a 15 year lease.

Core Spirit Flagship Store New Bond Street, London

154

locationgroup research | Retail Market Study 2012

Mount Street Mayfair, London

Disney reopens in a space twice the size of its former digs A block down the street toward Oxford Circus, Disney opened its new store in May 2011 next door to Debenhams in a split-level, 4,000 square metre space that is Disney’s largest European flagship store and its second largest store worldwide. Customers began gathering in front of the store at 7 a.m. on the day of the opening.

London’s Regent Street is one of the main shopping streets and traffic arteries in London’s West End. The street runs north from

Coolway opens first store outside of Spain The Spanish shoe retailer Coolway opened its first UK shop on London’s Oxford Street. This flagship store, the company’s first outside of Spain, has around 400 square metres of retail space.

Primark opens second Oxford Street store Having opened a store on Oxford Circus, Primark has now opened a second store on Oxford Street, this one at its eastern end, in the former Virgin Megastore, which covers 7,900 square metres. It’s safe to assume that this move will spur redevelopment of Tottenham Court Road.

On the last Saturday of November 2010, the 6,500 square metres Primark flagship store near Hyde Park registered 820,000 pounds in sales on a single day – a new record. The store’s annual sales are reported to be in the neighbourhood of 3 million pounds.

Desigual Oxford Street, London locationgroup research | Retail Market Study 2012

155

Forever 21 Oxford Street, London

Waterloo Place as Lower Regent Street to Piccadilly Circus and behind as The Quadrant and then to Regent Street, where it ends at Oxford Circus.

The largest programme is the 750 million pound revamp of Regent Street by Crown Estate, which runs the commercial property originating from the British monarchy’s estates.

Hollister comes to Regent Street for 10 million pounds key money Rumour has it that Hollister, which belongs to Abercrombie & Fitch, paid 10 million pounds key money to take over the former National Geographic store on Regent Street. Located on lower Regent Street near Piccadilly Circus, opposite Uniqlo and Moss Bross, the three-level, 1 600 square metre Hollister store is set to open before the Olympics get underway.

Superdry likewise comes to Regent Street for 12 million pounds key money Superdry took over the former Austin Reed store on Regent Street for a record 12 million pounds key money, and pays 2,5 million pounds a year rent for the 5,500 square metre store, which opened in December 2011.

Austin Reed invests 5 million pounds in new location Having spent 13 million pounds on renovating its store back in 2003, the classic British retailer has moved across the street from 100-113 Regent Street, where the store did business for a century, to 100 Regent Street. The new location has 2,500 square metres of retail space, for which Austin Reed paid a “mere” 5 million pounds key money to Aquascutum.

Crown Estate buys Habitat lease; Burberry buys LK Bennett lease In the interest of keeping Burberry on Regent Street, where the store’s outlet is now only a block down the street, and in order to be able to renovate this building, the Regent Street store owner Crown Estate bought the lease held by the realtor Habitat. At the

Disney Oxford Street, London

156

locationgroup research | Retail Market Study 2012

Primark Oxford Street, London

same time, Burberry took over 1,850 square metres from its neighbour, LK Bennett, for a Burberry statement store and combined the two stores. Construction will set Burberry back some 20 million pounds; the retailer hopes to be able to open before the Olympics.

A further boost will also come at the beginning of next year when the one million square foot Regent’s Quadrant scheme on the south-eastern end of the street is completed. Being developed by Stanhope on behalf of The Crown Estate, it will comprise 70,000 square feet of retail floor-space and a new five star hotel.

Although retailers such as Jane Norman and TJ Hughes announced last week that they were being put into administration, better sales figures from John Lewis revealed that some businesses are performing well despite the downturn.

Covent Garden in London’s City of Westminster is best known for the Royal Opera House in its northern section and its flower and produce market – which, however, has since relocated to Nine Elms. Covent Garden is bounded by High Holborn, Kingsway, The Strand, and Charing Cross Road.

The organisation, which manages property on behalf of the Crown and which owns Regent Street in the West End, will post its annual results.

Regent Street was valued at 1,6 billion pounds last year, but that is likely to have moved closer to 2 billion pound as retailers such as Superdry battle for a store in the street and drive up rents. The prosperity of Regent Street is positive news for the Queen. From 2013, she will receive 15 percent of the Crown Estate‘s profits – which are linked to its rental income – as part of a new Sovereign Grant.

The Crown Estate has also been on a 250 million pound spending spree on out-of-town retail parks and shopping centres, such as Westgate in Oxford, which are thought to have performed well during the year.

This will highlight the fact that well-located retail sites in regional centres can still flourish despite fragile consumer confidence from public spending cuts, tax rises and sovereign debt concerns.

Superdry Regent Street, London locationgroup research | Retail Market Study 2012

157

Austin Reed Regent Street, London

Regent Street London

158

locationgroup research | Retail Market Study 2012

Regent Street London

Apple opens the biggest Apple store ever The new Apple flagship store, which extends over three levels in a historic downtown London building, is the world’s only Apple store with two of the retailer’s trademark glass staircases. The 2,300 square metre store opened in mid 2010.

The actor and writer Stephen Fry, renowned as one of the company‘s devotees, wrote on his Twitter feed that the shop‘s prestigious address – No 1, The Piazza, Covent Garden – meant that “if all goes wrong, Apple will survive as real-estate owners”.

Apple Covent Garden, London locationgroup research | Retail Market Study 2012

159

Covent Garden, London

First Rugby Ralph Lauren The first Rugby Ralph Lauren store opened on Covent Garden’s King Street in August 2011 in an around 530 square metre space, with additional outlets to follow.

in a 930 square metre space, the store sells men’s and women’s fashion from the relatively new brand, as well as Burberry eyewear, watches and perfumes.

First European Burberry Brit store opens The London upscale fashion retailer Burberry has opened a Burberry Brit store in London, the first such store in London and the tenth Burberry store in the UK. Located on Convent Garden’s King Street

Located in the eponymous exclusive West London district, Knightsbridge Street runs along the southern side of Hyde Park west of Hyde Park Corner and connects the City of Westminster with the Royal Boroughs of Kensington and Chelsea.

Eres moves in near Christian Louboutin The French luxury retailer Eres opened its first stand-alone London store in December 2011 near Christian Louboutin. The store is located only a few steps away from Harvey Nichols on Knightsbridge’s Motcomb Street, which runs parallel to Sloane Street.

Roberto Cavalli and Fendi swap stores In the summer of 2011, Roberto Cavalli and Fendi swapped stores because the former wanted a larger space (420 square metres) while Fendi wanted a smaller one (260 square metres).

UGG opens first flagship store The prominent retailer of lamb-fur boots, UGG, opened its first London flagship store on Knightsbridge’s Brompton Road, taking over the around 90 square metre former Walk Fashion store, where UGG will be selling a more fashion-oriented line.

Frequency Maifair & Knightsbridge, London (per day in 1,000) 20

30

40

50

60

70

National Geographic bids farewell to Regent Street In December 2011, National Geographic opened a new and substantially smaller store (372 square metres) on Brompton Road.

80+

Frequenz pro Tag

160

locationgroup research | Retail Market Study 2012

Burberry Brit store Covent Garden, London

Rugby Store King Street Covent Garden, London locationgroup research | Retail Market Study 2012

Tommy Hilfiger Brompton Road, London

161

Harrods Knightsbridge, London

162

locationgroup research | Retail Market Study 2012

Tommy Hilfiger opens largest UK store USA meets Britain: that could have been the motto of the design of Tommy Hilfiger’s new London store, where the staircase is decked out with the Stars and Stripes, the Union Jack, and the Tommy Hilfiger logo. The store’s decor offers a vintage look with patchwork rugs and furniture that’s acquired a patina, combined with the classic elegance of wooden tables and chequered rear panels. The 770 square metre, split-level store on Brompton Road is the largest Tommy Hilfiger store in the UK. DoDo debuts in the UK The Italian jewellery retailer Pomellato has opened its first London flagship store for its DoDo jewellery line. The 150 square metre store is located on Sloane Square in the former Bamford & Son venue.

Bulgari Hotel & Residences to open in London in April 2012 Owned by Ms Rosalia Mera, the ex-wife of Inditex Group (Zara) founder, one of Spain‘s largest conglomerates, Bulgari Hotel is scheduled to open in London in April, in time for the Summer Olympics and the Queen‘s Jubilee events. Situated in London’s Knightsbridge area, the 85-room Bulgari Hotel is managed by Bulgari Hotels and Resorts, a joint venture between Italian jeweller Bulgari (owned since last year by LVMH) and Marriott International. Bulgari Hotel London is the first luxury newly-built hotel in 40 years to open in the city. According to the Bulgari Hotel’s website, a 7thfloor penthouse is available through Christie’s International Real Estate. Although few details are currently available online about

UGG Brompton Road, London

the penthouse, the website does indicate that it features 9,260 square feet of exquisite living space.

Stratford, which is part of Greater London’s Newham borough, is an important shopping district for the surrounding area and during the 2012 Olympics will also be home to Olympic Park, where a number of event venues will be located, including the Olympic Stadium.

Rococo Chocolates Motcomb Street, London locationgroup research | Retail Market Study 2012

163

Europe’s largest shopping mall opens Europe’s largest shopping mall, Westfield Stratford City, has now opened, in London, ten months ahead of the Olympics. More than 100,000 visitors attended the opening of the mall, which is located next to Olympic Park in East London. Shoppers spent an estimated 4 million pounds (4.6 million euro) on the mall’s opening day. The US fashion retailer Forever 21 had to open its doors before the official opening time of 10 a.m. for security reasons, due to the 500person line that had formed outside the store.

Westfield Stratford City, which was built at a cost of 1.8 billion pounds, contains 250 stores, 70 restaurants, 14 movie theatres, three hotels, and 12,000 square metres of office space, spread across 176,000 square metres. The mall’s tenants include, apart from Forever 21, the likes of Gap, H&M, Zara, Hugo Boss, Prada, Marks & Spencer, Cos, Topshop, New Look, Primark, Hollister, Urban Outfitters and Gilly Hicks. The mall operator, Westfield Group, says that around 95 % of the facility’s commercial space had been rented at the time of the opening event. The combined long-term sales of Westfield Stratford City and London’s Westfield mall is expected to be around 2 billion pounds, and the two facilities are expected to attract more than 50 million visitors annually. More than a million visitors flocked to Westfield Stratford City in its first week of operation alone.

Sacoor Brothers store Bluewater shopping center

Westfield Stratford City shopping center

164

locationgroup research | Retail Market Study 2012

Marks & Spencer has rolled out a number of its new store concepts at Westfield Stratford City, where it presents each of its clothing brands in a clearly segmented fashion. Right across the way, the US retailer Forever 21’s 6,300 square metre store with its glittering glass facade is a magnet for young shoppers.

London’s Shepherd’s Bush district is located in Hammersmith and Fulham Borough, around 8 kilometres west of Charing Cross Road.

Westfield London in White City/Shepherd’s Bush Westfield London, which opened in 2008, is located in White City/ Shepherd‘s Bush near the centre of London, a ten-minute drive from Knightsbridge and Hyde Park. The around 150,000 square metre mall has nearly 270 stores, including market leaders such as Marks & Spencer, Debenhams, Next, House of Fraser and the supermarket chain Waitrose, all of which have anchor stores in the mall. The 25,000 square metre upscale area known as The Village contains outlets of all major luxury retailers such as Gucci, Dior, Louis Vuitton and Versace.

Forever 21 opens outlet at Bluewater mall Bluewater, one of the UK’s largest shopping malls, is located around 35 kilometres west of London in the town of Greenhithe in Dartford Borough, where it opened in 1999. The around 155,700 square metre mall has nearly 330 stores, including Marks & Spencer, John Lewis and House of Fraser. Bluewater is London’s second largest shopping mall, after Metro Centre in Gateshead. It is estimated that around 27 million shoppers a year visit the mall, where around 7,000 persons are employed.

The following retailers opened stores at Bluewater this year, in addition to Sacoor Brothers and Aspinal: The British fashion retailer Whistles (85 square metres), the Danish jewellery maker Pandora (around 150 square metres), the US young-fashion retailer Forever 21 (more than 2,350 square metres) and the US retailer Sketchers (more than 200 square metres).

Westfield Stratford city shopping center locationgroup research | Retail Market Study 2012

165

38 Brussels with seventh European Abercrombie & Fitch .

BRUSSELS (population 1,1 million) is the capital of Belgium, the country’s most populous city, the headquarters of the organisations of the Flemish and French communities, and the capital of the Brussels region. Brussels is also the capital of the EU and home to NATO headquarters.

The choicest retail locations in the ritzy Haut de la Ville shopping district are to be found on Avenue Louise, Avenue de Toison d’Or and Boulevard de Waterloo. Boulevard de Waterloo, which is opposite Avenue de Toison d’Or, is indisputably Brussel’s most renowned luxury shopping district. Even as far back as the late 19th century, it was Brussels’ most popular shopping street.

Boulevard de Waterloo is today home to renowned luxury retailers such as Gucci, Versace, Louis Vuitton and Dior, and is also a superb residential area with classy restaurants. Burberry opened its first Brussels store in September 2010, on Boulevard de Waterloo, where Hackett, Loro Piana and Jimmy Choo have also opened outlets of late.

Abercrombie & Fitch opens seventh European outlet in Brussels In December 2011, Abercrombie & Fitch opened its first Belgian outlet (and flagship store) in an around 1,600 square metre space on Brussels’ Boulevard de Waterloo.

Grand Place Brussels

166

locationgroup research | Retail Market Study 2012

Burberrry and numerous other newcomers Burberry opened its first Brussels store in September 2010, on Boulevard de Waterloo, where it was recently joined by Brunello Cucinelli, Hackett, Loro Piana, and Jimmy Choo.

Geox and New Look open new outlets Geox opened two new stores in Belgium in September 2011, one at Rue Neuve in Brussels and the other at Leystraat 7 in Antwerp. New Look inaugurated its 780 square metre flagship store on Rue Neuve in the former WE store.

Tara Jarmon and Frey Wille come to Brussels The Paris retailer Tara Jarmon has opened a 60 square metre store on Brussels’ Avenue Louise. The company, which was founded in Paris 15 years ago by Tara and David Jarmon, operates 50 stores.

The Austrian jewellery retailer Frey Wille took over the Weill fashion store and now pays rent amounting to 1,300 euro per square metre a year.

Forever 21 comes to Rue Neuve The fashion retailer Forever 21 recently opened two Belgian stores, the first in the summer of 2011 (3,000 square metres) on Brussels’ Rue Neuve, and the second in Antwerp.

New Look, Mexx, and H&M with new stores on Rue Neuve New Look opened an international flagship store on 780 square metres at Rue Neuve in the former WE store. Also, Mexx opened a new flagship store in Brussels in December 2011 with retail space of 600 square metres. Finally, H&M opened the first menswear store in Brussels in May 2011 at Rue Neuve with retail space of 440 square metres over three floors.

Desigual opened two stores at the Airport Desigual opened the first two stores at the Airport of Brussels in August 2011 at Terminal B. In September 2011, a second Desigual store opened at Terminal A with 400 square metres.

Opening Abercrombie & Fitch, Brussels

Shopping centre activities slowed down Retail development activity in Belgium has slowed down considerably with virtually no large schemes coming online in the coming years. While a number of existing shopping centres have expansion plans, none of these are likely to break ground any time soon.

Boulevard de Waterloo Brussels locationgroup research | Retail Market Study 2012

167

Forever 21 Rue Neuve, Brussels

A flow of new schemes can be expected to be delivered to the market from 2015 onwards, with some notable developers competing for a new shopping centre to the north of Brussels.

Retail developers in Belgium are confronted with an increasingly restrictive urban planning, which is especially prohibitive on outof-town retail.

Pull & Bear Rue Neuve, Brussels

New Look Rue Neuve, Brussels

168

locationgroup research | Retail Market Study 2012

39 Antwerp new with Moncler and Jimmy Choo .

ANTWERP is a Belgian port city and the capital of Antwerp province. Located in Northern Belgium in the Flanders region, with 472,000 inhabitants Antwerp is the region’s most populous city.

Metropolitan Antwerp is the largest urban area in Belgium apart from the Brussels region.

Antwerp first became a fashion centre in the mid 1980s when Belgian designers such as Ann Demeulemeester, Dirk Bikkembergs, Dries Van Noten and Walter Van Beirendonck began causing a stir at international fashion shows. Belgian fashion designers have been in the vanguard of the European fashion scene ever since.

The studios of Belgian fashion designers are located in the fashion district between Groenplaats and the city’s Royal Museum of Fine Arts. Upscale international retailers have stores on the district Latin’s Huidevettersstraat, Schuttershofstraat and Hopland streets. Versace recently leased a new store on Leopoldstraat.

Fountain and Grote Markt, Antwerp

Antwerp by night locationgroup research | Retail Market Study 2012

169

Steve Madden debute on Meir Steve Madden opened the first European store in Antwerp, Belgium, in April 2011at Meir 17 with 503 square metres over two floors.

The former tenant was M17 Leather Shop.

Forever 21 comes to Meir Europe’s largest Forever 21 store opened in the fall of 2011 in a 5,000 square metre, three-level space in Antwerp’s Meir pedestrian zone.

Disney debuts on Meir In May 2011, Disney opened its first Belgian store in a split-level, 1,000 square metre space in Antwerp’s Meir pedestrian zone opposite Forever 21.

River Island with new Flagship River Island opened the new shop in September 2010 at Meir in Antwerp with retail space of 530 square metres on two floors.

Mexx with new Metropolitan Concept Mexx opened the new flagship store in October 2011 at Meir in Antwerp with a 700 square metre store concept called “Metropolitan Casual Lifestyle”.

Disney store Meir, Antwerp

River Island Meir, Brussels

170

locationgroup research | Retail Market Study 2012

American Vintage begins expansion American Vintage will be opening an outlet in Antwerp, with stores in France and Hong Kong to follow.

Fred Perry with the first Belgian store in Antwerp Fred Perry opened the first Belgian store in Antwerp in April 2011. The store is located at Huidevettersstraat in Antwerp.

Moncler and Jimmy Choo open stores in Antwerp In September 2011, Moncler opened a new 103 square metre store on Antwerp’s Schutterhofstraat right next door to the likewise newly opened 100 square metre Jimmy Choo store, which replaced the fashion retailer Weill, while Moncler replaced the French retailer Zadig & Voltaire. The latter in turn opened a new and larger store two doors down to the left.

7 For All Mankind joins the luxury neighbourhood 7 For All Mankind opened its second European store in Antwerp on 15 June 2010 at Schuttershofstraat in Antwerp.

Hollister opens two stores in one fell swoop The US retailer Hollister, which is owned

by Abercrombie & Fitch, recently opened two stores in top notch Belgian shopping malls, one at Wijnegem near Antwerp in a 637 square metre space and the other at Waasland in Sint-Niklaas in a 770 square metre space.

Jimmy Choo Schuttershoofstraat, Antwerp locationgroup research | Retail Market Study 2012

171

40 Amsterdam, P.C. Hofstraat is the luxury mile .

The port city of AMSTERDAM is the capital of the Netherlands and the country’s most populous city, with 780,152 inhabitants in Amsterdam proper, and around 1,1 million in Groot-Amsterdam (greater Amsterdam), The Amsterdam metropolitan area, which comprises the Randstad conurbation in northern Holland, has a population of around 2,3 million. Under the Dutch constitution, Amsterdam has been the nation’s capital since 1983, despite the fact that the seat of government and the royal residence are both located 60 kilometres away in The Hague.

Shops in Amsterdam range from large department stores such as De Bijenkorf, founded in 1870, and Maison de Bonneterie, a Parisian-style store founded in 1889, to small specialty shops.

Amsterdam‘s high-end shops are found in the streets Pieter Cornelisz Hooftstraat and Cornelis Schuytstraat, which are located in the vicinity of the Vondelpark. One of Amsterdam‘s busiest high streets is the narrow medieval Kalverstraat in the heart of the city.

Another shopping area is the Negen Straatjes: nine narrow streets

within the Grachtengordel, the concentric canal system of Amsterdam. The Negen Straatjes differ from other shopping districts with the presence of a large diversity of privately owned shops.

Etnies comes to the Continent The US action sports footwear and apparel retailer Etnies has opened a 70 square metre store in Amsterdam, which the store says will be carrying the largest selection of the company’s products in Europe. This will be Etnies’ second European store after the outlet that opened this summer in London. Etnies will be opening two or three additional European stores in 2012.

Following the successful opening of the first Etnies branch in London in January, the new outlet will count as the company’s second European flagship store. As there was stiff competition for the location, the company is particularly proud of the fact that it will be able to move in. According to Dick Eberhardt, proprietor of Etnies’ new Amsterdam store, Etnies is the perfect partner for Project “2012”, when you stop to consider that there are anywhe-

Kracht in Amsterdam

172

locationgroup research | Retail Market Study 2012

re between 700,000 and a million passers-by here weekly; and so, Mr. Eberhardt says, all of the effort that went into obtaining the lease “has totally paid off”.

Levi’s and Denim & Supply come to Kalverstraat The new Levi’s flagship store opened in a split-level, 250 square metre space on Amsterdam’s main shopping street Kalverstraat.

The world’s first Ralph Lauren Denim & Supply store opened in November 2011 on Amsterdam’s Kalverstraat in a 200 square metre space.

PC Hofstraat: an upscale shopping street PC Hooftstraat in Amsterdam’s Oud Zuid district extends from Hobbemastraat to Van BaerlestDe Buenkorf Department Store, Amsterdam

Levi’s Kalverstraat, Amsterdam locationgroup research | Retail Market Study 2012

173

raat. The street is named after Pieter Corneliszoon Hooft, a renowned Dutch 16th century author and historian, and is near the Rijksmuseum.

Amsterdam gets its first two Starbucks Starbucks opened a new store on Amsterdam’s Leidsestraat. A second, larger store was opened on Beethovenstraat in the summer of 2010. Starbucks has had a retail presence in the Netherlands since 2007 when the first coffeehouse opened at Schiphol Airport. This is the eleventh Starbucks store in the Netherlands.

Starbucks at Leidsestraat

Apple to open a retail store in Amsterdam Apple plans to open a retail store in Amsterdam, in the same building where it set up its Benelux headquarters last year, Dutch blog One More Thing reports, citing “very reliable sources”.

The building in question is called the Hirsch building, and it is located on Amsterdam’s Leidseplein. Apple has set up its Dutch headquarters on the third floor, and its retail store is set to occupy a large portion of the building’s ground floor.

That space is currently open to visitors as it temporarily hosts an art gallery, OMT claims.

You can see the map of the ground floor in the image below, with the space Apple plans to occupy marked red.

Models at P.C. Hoofstraat

American Vintage debuts on PC Hofstraat In May 2011, the fashion retailer American Vintage opened a 70 square metre store at the corner of Van Baerlestraat and PC Hofstraat across from the fashion retailer Azzurro.

Formerly, the store was leased by fashion retailer Morgan.

Massimo Dutti opens new store at corner location Massimo Dutti, which is a member of the Inditex Group, opened a completely renovated 450 square metre store (previously leased by Oilily) between Filippa K and Dolce & Gabbana on ritzy PC Hoofstraat.

Brunello Cucinelli debuts in Holland The Italian cashmere retailer took over the 150 square metre former Scapa Sports store next to Hermès and across from Hugo Boss.

The key-money payment was not disclosed.

Massimo Dutti P.C. Hoofstraat, Amsterdam

174

locationgroup research | Retail Market Study 2012

Corneliani P.C. Hoofstraat, Amsterdam

Escada opening P.C. Hoofstraat, Amsterdam locationgroup research | Retail Market Study 2012

175

New Tiffany’s Having, in 2009, announced plans to open an Amsterdam outlet, Tiffany’s inaugurated its new venue in March 2011 by joining and renovating two adjacent buildings, a process that took nearly a year. The store, which is opposite the new Bulgari boutique, covers 195 square metres.

7 For All Mankind debut in Amsterdam At the beginning of December 2011, the VF Corporation celebrated the opening of the latest flagship store at the best location of Amsterdam on the right-hand side of Gucci in the former Pasta Tricolore space.

Escada expanding In June 2011, the luxury retailer Escada celebrated the opening of its new 120 square metre flagship store on PC Hoofstraat, in the former Meyer boutique.

Taschen P.C. Hoofstraat, Amsterdam

Bulgari and Corneliani opened new Amsterdam stores in 2010 In 2010, Bulgari took over the former Lyppens store between Oger and Karen Millen, while Corneliani opened a new boutique opposite Louis Vuitton.

New Taschen store in Amsterdam Taschen, the well-known publisher of, amongst others, “The Big Book of Breasts”, “Helmut Newton Polaroids” and “Linda McCartney Life in Photographs” opened its twelfth store right in Amsterdam (at PC Hooftstraat). The new store, designed by Philippe Starck, was THE place to be when the official opening took place.

You should definitely stop by, it’s a coffee table book heaven!

Announcement of Paul Smith The English fashion retailer will open its first Dutch store with 205 square metres in 2012 on PC Hofstraat.

Paul Smith Melrose Avenue, Los Angeles

176

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

177

41 Paris, Moynat – a stroke of genius by Bernard Arnault .

Two long awaited retailers debut in France – Abercrombie & Fitch and Banana Republic Abercrombie & Fitch has opened its first French store on Avenue des ChampsÉlysées in a nearly 3,000 square metre space in a luxurious building located at the lower end of the Champs-Élysées.

The building is owned by the industrialist Dassault family, and Abercrombie & Fitch pays more than 3 million euro a year in rent. 2 million euro in key money was reportedly paid to the former tenant, Thai Air. The 9,500 square metre, fourstory building has the same design as the Abercrombie & Fitch stores in New York, Tokyo and Milan.

Skyline Paris

PARIS is the capital of France and of the Île-de-France region. The Seine divides the city into a northern section (the right bank) and a southern section (the left bank). Paris proper has 2,2 million inhabitants, 10,3 million in its urban residential zone, and 12 million in the Paris metropolitan region. Paris, along with London and New York, is one of the world’s most important cities.

Paris’s Avenue Champs-Élysées, which is one of the world’s most magnificent boulevards, is located in northwest Paris in the city’s 8th arrondissement. Both the Champs-Élysées and 8th arrondissement start at Guillaume Coustou’s group of horse sculptures known as “chevaux de Marly”, just west of Place de la Concorde. The 1,9 kilometre long and 70 metre wide boulevard ends at Place Charles de Gaulle, where the Arc de Triomphe is located. The Champs-Élysées comprises the middle section of the backbone of the unique axe historique (“historical axis”) – a line of monuments, buildings and thoroughfares that extends from the centre of Paris.

In December 2011 and right across the street, Banana Republic, the fashionable and more upscale brand of the Gap Group, opened its first French store in a 1,500 square metre space. Dolce & Gabbana and Go Sport had previously expressed interest in the location, but did not bring their store-opening plans to fruition. In addition, according to well-informed sources, Gap was competing for this choice location with the Japanese retailer Uniqlo shortly before the lease was signed. This is Banana Republic’s first store in France.

Marks & Spencer opens Paris flagship store In November 2011, Marks & Spencer marked a key milestone in its international expansion program when it celebrated its return to France by opening a flagship store on Paris’s Avenue des ChampsÉlysées, where the retailer sells selected women’s fashions, lingerie, and gourmet food in a 1,400 square metre space. The key money paid to the previous tenant Esprit was not disclosed. The rent on the store is reported to be 3,9 million euro a year.

Paris LaDefense view from the Eiffel Tower

178

locationgroup research | Retail Market Study 2012

The opening of this relatively small flagship store – whose ChampsÉlysées location nonetheless speaks volumes – is merely Marks & Spencer’s first step on the path toward building a robust presence in France, where the company will be opening three additional stores. This coming August, Marks & Spencer will be opening its largest French store to date (6,900 square metres) at the So Ouest mall and is planning new openings for 2013 at the centrally located Beaugrenelle mall near the Eiffel Tower (4,500 square metres) and at the Aeroville mall in northeast Paris (4,700 square metres).

H&M pays 20 million euro key money A year previously and after waiting for many years, H&M opened its 11th Paris store in a three-level, 2,800 square metre space.

Opening an H&M outlet in a world-renowned location such as this is no mean feat, and it took the company two years of struggle to push the project through. Paris officials opposed the opening of the store, H&M’s largest French outlet, for three years; for after all the Champs-Élysées had to live up to its reputation. “The ChampsÉlysées doesn’t need H&M, but H&M needs the Champs-Élysées,” says Lyne Cohen-Solal, Paris’s deputy mayor for business affairs, who took the view that “the world’s most beautiful street,” as the French call it, “is a boulevard given over to luxury, culture and entertainment”. According to informed sources, H&M’s investment in the store included 20 million euro key money.

Avenue des Champs-Élyées, Paris

The bag retailer Lancel Boutique simultaneously celebrated the 135th anniversary of its founding and the reopening of its 1,000 square metre store on the Champs-Élysées.

Avenue Montaigne originally called the “Allée des Veuves” (widows‘ alley) because women in mourning gathered there, but the street has changed much since those days of the early 18th century. The current name comes from Michel de Montaigne, a writer of the French Renaissance. In the 19th century, the street earned some renown for its sparkling and colourful Mabille balls on Saturday nights.

Yves Saint Laurent comes to Avenue Montaigne In early 2012, the Paris fashion retailer Yves Saint Laurent will be opening its 900 square metre flagship store, after a long wait, on the upscale shopping street Avenue Montaigne in the former Escada store. Yves Saint Laurent currently has four Paris stores, including an outlet on Place Saint-Sulpice that was designed by Stefano Pilati.

Louvre Paris

locationgroup research | Retail Market Study 2012

179

Frequency Paris downtown (per day in 1,000) 20

30

40

50

60

70

Marks&Spencer Champs Élysées, Paris

80+

Frequenz pro Tag

Chanel takes over Jean-Louis Scherrer’s location In December 2011, Chanel opened a store in the space just to the left of Fendi on Avenue Montaigne. The 600 square metre, splitlevel flagship store was completely renovated and re-shopfitted by architect Peter Marino. The store carries all Karl Lagerfeld prêt-àporter collections, shoes, eyewear, and accessories, as well as all Chanel timepiece collections.

A year previously, Max Mara opened a store on Avenue Montaigne across from Louis Vuitton, in a space that had been expanded to 510 square metres and whose facade is composed of four sixmetre long windows.

Jil Sander expanding The opening of the new Jil Sander flagship store on Paris’ Avenue Montaigne brings the number of proprietary stores operated by the fashion retailer worldwide to 36. The new store is a 450 square metre split-level space.

Rue du Faubourg Saint-Honoré is cited as being one of the most fashionable streets in the world, thanks to the presence of virtually every major global fashion house. Like nearby avenue Montaigne, the street has been consistently dedicated, throughout its length, to high-fashion stores and other exclusive establishments.

Abercrombie & Fitch Champs Elysées, Paris

180

locationgroup research | Retail Market Study 2012

Rue Saint-Honoré, of which rue du Faubourg Saint-Honoré is now an extension, began as a road extending west from the northern edge of the Louvre property. At number 55 is the Élysée Palace (Palais de l‘Élysée), the official residence of the French President of the Republic.

Changes on Rue du Faubourg Saint-Honoré In 2011, the British luxury retailer Burberry opened its new flagship store on Rue du Faubourg Saint-Honoré in the former Fratelli Rosetti store, in a 929 square metre space with a 15-metre storefront. The new location is Burberry’s largest and most technologically advanced store in France. Burberry also opened an around 450 square metre outlet on Boulevard Saint Germain, next door to a 320 square metre Blugirl Blumarine store that opened in the summer of 2011.

Abercrombie & Fitch opening queue

The Italian cashmere retailer Brunello Cucinelli also opened a flagship store in the heart of Paris, a split-level 400 square metre space on Rue du Faubourg Saint-Honoré.

Moschino, Bally, Paper Rain, Jenny, and Packham (plus Burberry, Blumarine, Blugirl and Brunello Cucinelli) are the newcomers at the prestige location Faubourg One, a commercial complex owned by the real estate developer Hammerson, which acquired it in 2005 for 56 million euro.

The complex, which displays classic Paris Haussmann architecture, has an over 60-metre facade. The British developer spent 35 million euro on renovating the property, which began in March 2010 and was completed in the summer of 2011. The stores range in size Banana Republic face to face with A&F

Lancel Store, Paris locationgroup research | Retail Market Study 2012

181

from 100 to 830 square metres; of the complex’s 3,400 square metres of retail space, 1,500 were newly created. Whereas the former owner of the property generated rent amounting to just under 3 million euro for 7,700 square metres of space, the new leases for the revamped property are worth 6 million euro.

Zegna opens new global store The luxury retailer Ermenegildo Zegna opened an around 500 square metre outlet and its first French “global store” in the former Just Cavalli space on Rue du Faubourg Saint-Honoré. The store was designed by Peter Marino using the company’s Milan, Tokyo and New York global stores as models.

Moynat – a stroke of genius by Bernard Arnault – and a venerable luggage brand gives Hermès a run for its money Having purchased Moynat Malletier in December 2010, a year later Bernard Arnault opened the eponymous brand’s first store in a 200 square metre space next door to Hermès. It remains to be seen whether the newly designed Moynat Malletier line achieves the same degree of success as the Louis Vuitton line did – although Mr. Arnault says that profit is not the prime consideration here: “Sales are a secondary consideration for the time being. What we want to do first is recount the company’s history,” he told Vogue. Bernard Arnault’s new store carries custom-made suitcases, silk scarves, leather goods, and Nairs bags. Prices range from 1,000 to well over 10,000 euro.

Chanel Avenue Montaigne, Paris

New Yves Saint Laurent Location, Avenue Montaigne, Paris

182

locationgroup research | Retail Market Study 2012

Moncler enlarges flagship store The Italian retailer expanded its existing store from 70 to around 150 square metres by taking over the former Jean de Bonnot location in the neighbouring building between Façonable and its own store.

Prada and Gucci renovate Prada’s new Paris boutique at 6 Rue du Faubourg SaintHonoré opened during Paris Fashion Week, 23-26 January 2012. A presentation of the new Kunstmuseum 24 Ore initiative in collaboration with the Italian artist Francesco Vezzoli and his AMO exhibition will also be featured at the gala opening.

Gucci reopened its 1,300 square metre flagship store on Rue du Faubourg Saint-Honoré following a top to bottom renovation.

Rue Royale and Rue Saint Honoré much in demand In June 2011, A.P.C. has opened the doors to its seventh Rue du Faubourg Saint-Honoré, Paris retail shop in its hometown of Paris with approx. 100 square metres on two floors. The store is situated at Rue Royale next to Gucci, steps away from some of the French capital city’s and Rue Royale across from Gucci and plans to open what will be finest retail destinations including Chanel, Loro Piana, and Monits eighth French boutique there in February 2012. cler.

Emporio Armani also opened a new 500 square metre store on Rue The cosmetics retailer Lancaster bought the lease on the 85 square Saint Honoré in the former Tommy Hilfiger location. metre Wempe jewellery store at the corner of Rue Saint Honoré

Élysée-Palace Paris locationgroup research | Retail Market Study 2012

183

In early 2012, Chloé, which is a member of the Richemont Group, will be opening its new around 475 square metre store on Rue Saint Honoré.

D² opens in Mandarin Oriental building The Italian fashion retailer Dsquared² opened its first international mono-brand store in Paris in an around 800 square metre space on Rue Saint Honoré in the building occupied by Paris’s new 5-star restaurant Mandarin Oriental.

Tom Ford to open two boutiques The US luxury retailer Tom Ford will be opening two flagship stores simultaneously in 2012 as franchise stores with the retailer Simon Ibgui. These will be Tom Ford’s first two outlets in Paris. The first store, an around 350 square metre space, will be on Rue Francois 1er, while the second will be on Rue Saint Honoré.

Burberry Rue du Faubourg Saint-Honoré, Paris

Place Vendôme, which is one of Paris’s five royal squares, is near the Paris Opera House in the 1st arrondissement.

During the French Revolution in 1792, the royal monument was destroyed. In the middle of the square is a 44 metre-high monument to French military victories known as Colonne Vendôme (1806–1810) with a statue of Napoleon I realized in the style of a Roman emperor. The bas-relief for the column was designed by Pierre-Nolasque Bergeret in the style of the Roman Trojan column.

On the west side of the square at no. 15 is the luxurious Hotel Ritz, which was founded by César Ritz in 1898 and since 1979 has been owned by the Egyptian billionaire Mohamed Al-Fayed. This is also where Lady Diana was staying when she set out on the fateful car ride that led to her death in 1997. The hotel’s prominent guests have included Coco Chanel, Ernest Hemingway and Marcel Proust.

The luxury shopping street Faubourg Saint-Honoré can be reached via Rue de Castiglione at the southern end of Place Vendôme.

Moynat Rue du Faubourg Saint-Honoré, Paris

Three newcomers on Place Vendôme At 9 p.m. on 14th June, the Swiss watch company Hublot officially opened its new, split-level 180 square metre boutique at Place Vendôme no. 10 – one of Paris’s ritziest locations.

Across the way, Jager-LeCoultre is expanding its boutique (which originally opened in 2004) to 500 square metres and plans to reopen in mid to late 2012. Until then, the store will be in temporary quarters on Rue Saint Honoré next door to Hublot.

At the opposite end of Place Vendôme the diamond dealer renovated the former Alexandre Reza store, but Louis Vuitton stole the lease right out from under his nose and will be opening the first Louis Vuitton Bijouterie there in 2012 in a 150 square metre space that has a window facing Place Vendôme and four facing Rue de la Paix.

Eremenegildo Zegna Rue du Faubourg Saint-Honoré, Paris

184

locationgroup research | Retail Market Study 2012

View from Mandarin Oriental over the streets of Paris

View from Mandarin Oriental over the streets of Paris locationgroup research | Retail Market Study 2012

185

from department stores Galeries Lafayette and Le Printemps.

Officials at Richemont declined to comment, as did Société Foncière Lyonnaise, the firm that owns the commercial lease to the building. French daily “La Tribune”, which did not identify its sources, has reported that the store was expected to cost 70 million euro or 94 million dollar at current exchange, and would not open before late 2012. The move comes as many watch retailers are strengthening their directly operated retail networks in a bid to capture the custom of wealthy clients from emerging markets, especially Asia.

Carolina Herrera’s first French store opens in Paris The New York-based brand has just opened its first Parisian boutique at Avenue Castiglione, covering a space of around 300 square metres. Since it was founded in 1980 by Carolina Herrera, the brand saw the launch of its first fragrance in 1987 and has now been part of Puig’s brand portfolio since 1995. Today her products are sold under the labels “Caroline Herrera New York” and “CH Carolina Herrera”. The latter was founded in 2003 and offers a complete wardrobe for women, men and children and it is the line found at the new Castiglione boutique.

Hublot Place Vendome, Paris

Richemont setting plan for watch megastore Compagnie Financière Richemont SA is poised to take over the Paris building that has been home to men’s wear retailer Old England since 1886 and turn it into a multi-brand luxury watch retailer, a source familiar with the plans said.

Richemont, which owns brands including Jaeger-LeCoultre, Cartier, and Piaget, plans to sign a lease on the space located at Boulevard des Capucines near the Paris Opera and a few blocks away

Tally Weijl opens flagship store on Boulevard Haussmann Tally Weijl inaugurated its 600th store in 2010. This 280 square metre, split-level flagship store is at a choice location in the heart of Paris on Boulevard Haussmann. This was Tally Weijl’s 11th store in France, and its fourth in Paris in addition to the outlets at La Defense, Forum des Halles and Parinor.

New openings in Paris Calzedonia opened its first Paris store on Rue de Rivoli. With its nearly 3,000 stores worldwide – the undergarment/loungewear stores Intimissimi and Tezenis and the Calzedonia boutiques for

Place Vendome, Paris

186

locationgroup research | Retail Market Study 2012

women’s, men’s and children’s hosiery, and fashion swimwear – Calzedonia is one of Europe’s leading undergarment and hosiery chains along with Hunkemöller, Women’s Secret and Etam, which respectively have 500, 520 and 600 outlets each.

The French luxury-shoe designer Christian Louboutin opened his third Parisian store on Rue Jean-Jacques.

Cos, the luxury Hennes & Mauritz chain, opened its fourth store in Paris in the former Diesel store on Rue de Grenelle in a 200 square metre space.

The French high-end women’s swimwear and lingerie retailer Eres opened its fifth single-brand store on Paris’ Rue des Blancs Manteaux.

The British women’s fashion retailer Karen Millen opened its first Paris boutique in an around 70 square metre space on Rue des Franc-Bourgeois.

Jaeger-LeCoultre Place Vendome, Paris

The French fashion retailer Laurent Vidal opened its Paris flagship store in a 300 square metre space on Rue Auber near Galeries Lafayette and Le Printemps department stores. This is the brand’s first proprietary outlet in Paris where Lauren Vidal plans to open two additional boutiques in the near future.

The Italian plus-size clothing retailer Marina Rinaldi opened an additional outlet on Paris’ Rue Royale in an around 200 square metre space.

Aigle opened its fifth Paris store on Rue du Faubourg Saint-Antoine in an around 60 square metre space.

The Italian men’s fashions retailer Boggi Milano opened its first Paris store on Boulevard St. Germain, bringing the company’s French Carolina Herrera in Paris

Louis Vuitton Joaillerie Place Vendome, Paris locationgroup research | Retail Market Study 2012

187

store fleet to three, after St. Tropez and Cannes.

LVMH’s cosmetic chain Sephora recently opened two new Paris outlets, bringing its Paris store fleet to 23. The newcomers are located at the Centre Commercial La Vache Noire (around 350 square metres) and on Avenue Victor Hugo (174 square metres).

Le Bon Marché to expand In December 2011, the Paris department store Le Bon Marché was granted a building permit to expand its retail space by 4,000 square metres, 3,300 square metres for non-food products and 700 for the store’s gourmet food department.

Tally Weijl Boulevard Haussmann, Paris

Founded in 1852 by the Baucicaut family, Le Bon Marché now has around 33,000 square metres of retail space and is thus smaller than its Paris competitors Galeries Lafayette (68,000 square metres) and Le Printemps (43,000 square metres).

The store, which is a member of the LVMH Group and is located on Paris’ left bank in the affluent 7th arrondissement, will be celebrating the 160th anniversary of its founding next year. For just under a year now Le Bon Marché has been run by Patrice Wagner, the former general manager of Galeries Lafayette in Berlin and before that of KaDeWe.

Lauren Vidal Rue Auber, Paris

Les Quatre Temps Shopping Center, La Defense Paris

188

locationgroup research | Retail Market Study 2012

Continental Europe’s largest shopping mall – Quatre Temps in the La Défense district With 210,000 square metres of retail space, Quatre Temps is continental Europe’s largest shopping mall. It is located in Paris’ La Defénse business district, the largest of its kind in Europe. Traversed by a 1,2 kilometre long and 250 metre wide pedestrian zone, planning for La Defénse began in 1955 and the district is now home to many banks and insurance companies. The district’s most impressive constructions are the Areva, Manhattan, Gan and Total Fina Elf office towers, as well as the former convention centre, CNIT, which is now used partly as a hotel and partly as a trade show facility. However, the most renowned structure in La Defénse is the Grande Arche which is a modern take on the Arc de Triomphe.

Among the 1,600 companies that have their offices here are 14 of France’s 20 largest corporations and 13 of the world’s 50 largest corporations.

Louboutin Shop, Paris

Le Bon Marché, Paris locationgroup research | Retail Market Study 2012

189

42 Madrid with third Abercrombie & Fitch in Europe .

MADRID (excluding its suburbs) has around 3,3 million inhabitants and is the third largest city in the EU after London and Berlin. With a population of around seven million, the Madrid metropolitan area counts as the largest in Europe.

Among the most popular shopping streets in downtown Madrid are Calle Preciados, which begins at Puerta del Sol and has outlets of just about every well-known fashion chain, as well as numerous cafes and restaurants and Madrid’s grand boulevard Calle Gran Vía, along with Calle de Goya, which begin at Plaza Colón going west.

Calle Serrano, which is located in the Salamanca district, is one of Madrid’s most upscale streets. The ritzy retail venues on this Skyline, Madrid

Gran Via, Madrid

190

locationgroup research | Retail Market Study 2012

Hermès Calle Serrano, Madrid

Calle Serrano, Madrid locationgroup research | Retail Market Study 2012

191

Abercrombie & Fitch opens third European store Abercrombie & Fitch opened its Madrid flagship store in November 2011 in an around 1,300 square metre space on Plaza del Marques Salamanca, where the US store is in excellent company in the guise of nearby retailers Louis Vuitton, Dior, Jimmy Choo and Dolce & Gabbana.

Louis Vuitton opens new flagship store Louis Vuitton (a member of the French luxury retail group LVMH) opened its new flagship store in the El Corte Inglés building on Calle Serrano right near the exclusive shopping street Calle de Claudio Coello where many luxury retailers are to be found.

Ralph Lauren comes to Madrid The New York-based clothing retailer Ralph Lauren is planning to open its first Madrid flagship store on Calle Ortega y Gasset, only a few steps away from the new Abercrombie & Fitch.

Michael Kors, Tombolini and Ferrari coming to Calle Serrano Likewise just nearby, the New York-based fashion retailer Michael Kors will be opening a new 600 square metre split-level store on Calle Serrano where the rent will run to 720,000 euro a year.

The Italian clothing retailer Tombolini opened its first Spanish store on Madrid’s Calle Serrano in October 2011 in an around 150 square metre space opposite Bally.

Abercrombie & Fitch Plaza del Marques Salamanca, Madrid

extremely long street are clustered around Calle Ortega y Gasset, which is Madrid’s second most exclusive retail street, where there are also numerous prominent jewellery stores and international luxury retailers.

In spring 2012, Ferrari will be opening an around 500 square metre split-level store on Calle Serrano whose previous tenant Tommy Hilfiger relocated to Calle Claudio Coello.

Louis Vuitton El Corte Inglés, Madrid

Corte Inglés, paseo de la Castellana, calle Raimundo Fernández Villaverde, Madrid

192

locationgroup research | Retail Market Study 2012

Gran Via, Madrid locationgroup research | Retail Market Study 2012

193

Eres expanding The French swimwear and lingerie retailer Eres opened its third Spanish store, after Madrid and Marbella, on Calle Claudio Coello in an around 60 square metre space.

Until 1960, Madrid’s Gran Via was the city’s largest and most important shopping street and today still offers numerous boutiques, movie theatres, and ice cream parlours – plus Spain’s most renowned theatre.

Clarks opened its 54th single-brand Spanish shoe store on Gran Via in an around 50 square metre space.

New Ralph Lauren store Ortega y Gasset, Madrid

Shopping mall in Madrid Madrid Xanadú is a large shopping mall and entertainment centre in Arroyomolinos, Spain at the Autovía de Extremadura section.

The Mall with 110,000 square metres is one of Europe‘s largest and most recognised with over 222 shops, eateries, and a 15-screen Cinesa Movie Theater. The main attraction is Madrid SnowZone, a huge covered track, used for skiing and to go snowboarding.

The main tenants are Cinesa Theaters, El Corte Inglés, Hipercor at El Corte Inglés, Madrid SnowZone, Apple and Hollister.

Xanadú Einkaufs- und Unterhaltungszentrum, Arroyomolinos (Madrid)

194

locationgroup research | Retail Market Study 2012

Barcelona locationgroup research | Retail Market Study 2012

195

43 Barcelona, Apple debut at Paseo de Gracia .

Located on the Mediterranean around 120 kilometres south of the French Pyrenees and French border, BARCELONA is the capital of Catalonia and Spain’s second largest city. Barcelona has around 1,6 million inhabitants, nearly 16 % of whom are foreigners. In addition, Barcelona is the 11th largest EU city and after Hamburg the second largest city that is not the capital of an EU member state.

The population of the Àrea Metropolitana de Barcelona conurbation is 3,16 million while the Barcelona metropolitan area has 4,86 million inhabitants.

Paseo de Gracia, which is 1,5 kilometres long, is a magnificent boulevard and one of the city’s most renowned streets. Located in the Eixample district, it connects the Ciutat Vella (old town) district in the southeast with the Gràcia district (after which the street is named) in the northwest. Passeig de Gràcia begins at the corner of Plaça de Catalunya and Ronda de Sant Pere at the edge of the city’s old town and ends near Plaça de Joan Carles I and Avinguda Diagonal.

Apple comes to Paseo de Gracia Apple opened its second largest European store (after London) in Barcelona in an around 2,500 square metre space on the renowned Paseo de Gracia. The rent runs to around 3,8 million euro a year.

Stella McCartney and Bottega to open mono-brand stores in Barcelona British fashion designer Stella McCartney, already present in Spain through several multi-brand stores, announced the opening of its first mono-brand store in Spain in Barcelona, by mid-2012. Situated at 102 Passeig de Gràcia, Barcelona‘s leading high street, the Stella McCartney mono-brand boutique will be directly operated.

Stella McCartney is fully owned by the French PPR Group. Another major opening on Barcelona‘s Passeig de Gràcia will be the first Bottega Veneta mono-brand store in Spain. The new Bottega Veneta store in Barcelona is situated close to Stella McCartney and is likely to open in autumn 2011. Passeig de Gràcia is home to most international luxury brands: Prada, Miu Miu, Emporio Armani, Tiffany (all opened in 2011), Brioni, Gucci, Dolce & Gabbana, Louis Vuitton, Chanel, Hermès, Loewe, etc.

Sagrada Família, Barcelona

Barcelona View

196

locationgroup research | Retail Market Study 2012

Gaudi Casa MilĂ at Passeig de GrĂ cia, Barcelona

locationgroup research | Retail Market Study 2012

197

Paseo de Gracia: Very much in demand Emporio Armani opened an around 620 square metre store in the former Gonzalo Comella space likewise on Paseo de Gracia, across from Adidas and Bershka. In addition, there is a Giorgio Armani flagship store on Calle Jose Ortega y Gasset between Loro Piana and Dolce & Gabbana as well as a Chanel flagship store.

Superdry and Zadig & Voltaire expanding The British fashion retailer Supergroup, which owns the youngfashion chain Superdry, opened a second store in Barcelona in a 200 square metre space in the middle of the city’s main shopping district on Avinguda Diagonal between Paseo de Gracia and the renowned Rambla de Cataluna.

The French fashion retailer Zadig & Voltaire opened a new store on Paseo de Gracia in an around 200 square metre space that was formerly home to Caixa Terrassa.

Additional new store openings in Barcelona The Milan fashion retailer Marni opened a new flagship store in Barcelona in an around 127 square metre space on Carrer de ProNew -Apple Location Paseo de Gracia, Barcelona

Emporio Armani Passeig de Gracia, Barcelona

198

locationgroup research | Retail Market Study 2012

vença. Marni is the next fashion retailer that will be partnering with H&M with sales set to begin in March 2012.

Forever 21 lands in Spain F-21, one of the US’s favourite young fashion brands, moved into new territory with a new store opening in Barcelona’s La Maquinista shopping centre in June 2011. An immense 3,500 square metres of floor space means Forever 21 is definitely going to make an impression. This is the brand’s third store in Europe and its first in Spain.

One year before, Hollister opened two stores in Spain, one in Barcelona at La Maquinista Shopping Centre and one in Madrid at the Xanadú Mall

Miu Miu Passeig de Gracia, Barcelona

Primark Diagnoal Mar, Barcelona locationgroup research | Retail Market Study 2012

199

Miu Miu Passeig de Gracia, Barcelona

Marni Carrer de Provenca, Barcelona

200

locationgroup research | Retail Market Study 2012

44 Milan, Prada pays 24 million euro key money for Galleria Vittorio Emanuele II Space .

Italy’s second largest city, MILAN, has around 1,3 million inhabitants, around 4,8 million including the outlying areas, and around 7,5 million in the Grande Milano conurbation, making it by far the most populous city in Italy.

Milan is the heart of Italy when it comes to business, fashion, design, and media, and is thus regarded as Italy’s “moral capital” and its “gateway to the world.” Milan is known for a number of things including its Gothic cathedral, its world famous La Scala Milan opera house, various art treasures including Leonardo da Vinci’s Last Supper, its exclusive fashion district, its cultural life, which sets the tone for all of Italy, its soccer teams AC Milan and Inter Milan, and for being home to Italy’s most renowned convention centre, Fiera Milano.

Prada Galleria Vittorio Emanuele II, Milan

Piazza del Duomo Galleria V. Emanuele II, Milan locationgroup research | Retail Market Study 2012

201

Via Torino has long been one of Milan‘s main shopping streets; it also connects Piazza Duomo with the characteristic Ticinese district. In recent years, via Torino has developed as a shoe mall, with a plethora of shops geared mainly to the young set. Merchandise – from all-terrain boots to dainty sandals – is of differing quality and ranges from the inexpensive to the medium-to-high priced.

Walking down via Torino from the Duomo, you reach the Ticinese district.

Guess and Triumph open flagship stores In December 2011, Guess opened a 300 square metre flagship store on via Torino, bringing the total number of Guess outlets in Italy to 157.

In November 2011, Triumph opened a 700 square metre, split-level store at the corner of via Dante and Piazza Cordusio, and in 2012 plans to open 10 additional Italian stores in top locations in major cities.

Prada pays 24 million euro key money for Galleria Vittorio Emanuele II space Italian luxury group Prada won the bid to lease a strategic flagship location within the Vittorio Emanuele II Gallery, adjacent to the iconic Duomo in the heart of Milan. Prada will take over the space currently occupied by Mc Donald’s, and will engage in major renovation and restoration works.

The future Prada flagship store at Galleria will cover 5,000 square metres on eight floors and will feature, besides the store, a cafe and a contemporary art gallery. This strategic location was targeted by Apple for a Milan flagship as well, however, Prada made a considerably higher bid. Bids started at a minimum of 57.3 million euro for the 18-year lease, Corriere della Sera reported, and Prada offered one-and-a-half times that figure. Prada has been operating a store within the Galleria Vittorio Emanuele since 1913.

McDonald’s Vittorio Emanuele I, Milan

McDonald‘s appeals the decision of Palazzo Marino, owners of the Galleria and remains firm – will only move if a similarly attractive space is offered or, alternatively, 24 million euro in compensation.

The head of the “Salotto di Milano” organisation, which represents the tenants of the Galleria, estimates it will be impossible for Prada to even consider opening before Christmas 2012.

Corso Vittore Emanuele is a wide street connecting Piazza Duomo to Piazza San Babila. During the day, because it is traffic-free and has porticoes lined with shops – particularly clothing and accessory boutiques – it is the ideal place for shopping and windowshopping. Post-war reconstruction has provided for a series of shop-lined small covered galleries branching from the side of the Corso.

In the middle, between Corso Vittorio Emanuele and Corso Europa, these galleries surround the tiny old church of San Vito al Pasquirolo.

Department Store Excelsior, Milan

202

locationgroup research | Retail Market Study 2012

New Coin Group luxury department store A new around 4,000 square metre department store opened in September 2011 in the former Excelsior movie theatre, at a reported cost of around 30 million euro to the property owner, the Coin Group. The store, which was designed by Jean Nouvel, carries luxury wares from well-known newcomers such as Christian Louboutin, Giuseppe Zanotti, Jimmy Choo, Sergio Rossi, Pierre Hardy and Repetto.

Gap and Banana Republic debut in Italy H&M’s US competitor Gap opened a three-level, 3,369 square metre store on Corso Vittorio Emanuele in December 2010, at which time Banana Republic also opened its 1,625 square metre splitlevel store next door.

Pirelli opens PZero In September 2011, Pirelli inaugurated its first PZero fashion store in a 1,500 square metre split-level space at Corso Venezia 1. According to Marco Tronchetti Provera, CEO of the Italian tire company, Brazil and China are the key markets for expansion of the PZero stores.

Tombolini launches expansion Fresh from the opening of its Paris and Prague flagship stores, the Urbisaglia-based retailer also opened its first flagship store at via Matteotti 18, near via Montenapoleone.

Vionnet comes to Italy The French fashion retailer Vionnet opened its first mono-brand store on Corso Monforte in December 2011 in a 200 square metre space and plans to open additional shops-in-shops in China and Russia.

Via Montenapoleone with the narrow side streets branching off, claims to be the most elegant street in Milan, and one of the most sophisticated in all of Europe. Its name dates back to 1804, and the height of the Napoleonic era. In those days, Milan was teeming with foreigners who crowded into the city, not only for business re-

Gap Corso Vittorio Emanuele, Milan

Banana Republic Models Corso Vittorio Emanuele, Milan locationgroup research | Retail Market Study 2012

203

Pirelli Showroom Corso Venezia, Milan

Pirelli Showroom Corso Venezia, Milan

204

locationgroup research | Retail Market Study 2012

asons, but more often than not because – as Stendhal, himself a lover of Milan, pointed out – the city was “a wealthy republic dedicated to art and pleasure”.

Louis Vuitton opens second largest European flagship store In September 2011, Louis Vuitton opened a new, five-level flagship store at via Montenapoleone 2 in Milan, the company’s second largest European store after its Champs-Élysées outlet in Paris. Via Montenapoleone is Milan’s ritziest shopping street, and one of Europe’s most renowned shopping venues, where numerous luxury retailers have outposts: Cartier, Dior, Versace, Prada, Alexander McQueen, Valentino, Salvatore Ferragamo and Ermenegildo Zegna.

Panerai comes to Milan, Paul & Shark opens second boutique Officine Panerai opened a 70 square metre store at the top of via Montenapoleone opposite Louis Vuitton in June 2011. Paul & Shark opened a second boutique in September 2011 on this same street.

Gucci rolls out new boutique concept In September 2011, Gucci opened its first immersive retail experience boutique at via Montenapoleone 5.

Louis Vuitton via Montenapoleone, Milan

Gucci via Montenapoleone, Milan locationgroup research | Retail Market Study 2012

205

Bamboo Bar, while the eighth floor is given over to a 1,200 square metre fitness centre. The hotel’s 95 rooms range in price from 400 to 12,000 euro a night, and in size from 45 to 200 square metres.

Zilli opens 40th boutique worldwide The French fashion retailer Zilli opened a 150 square metre store at the top of via Gesu, thus bringing the Zilli flagship store fleet to 40 worldwide. Zilli will be opening additional mono-brand stores in Beijing and Shanghai in 2012.

In September 2011, Kiton opened a re-styled 200 square metre boutique on via Gesu.

Zilli via Gesu, Milan

Armani Hotel Milano opens for business after four years of renovation Armani Hotel Milano at via Manzoni 31 opened its doors in November 2011 after four years of construction. The hotel’s seventh floor contains the Armani Ristorante, Armani lounge and the Armani

Renowned via della Spiga, which features Tod‘s, Dolce & Gabbana, Moschino, Prada, Tiffany, Giorgio Armani, Brunello Cucinelli and Moncler stores, forms, with via Montenapoleone, via Manzoni und via Sant’Andrea, Milan’s Quadrilatero della Moda (luxury fashion shopping district).

Virginia Preo opens second boutique The cashmere retailer Virginia Preo opened a 40 square metre split-level boutique at via della Spiga 50 in September 2011. An additional boutique opened in Venice.

Armani Hotel via Manzoni, Milan

206

locationgroup research | Retail Market Study 2012

Pretty Ballerinas debuts The US shoe retailer Pretty Ballerinas opened its first Milan flagship store in April 2011 on via della Spiga in a 40 square metre space that was formerly the Marisa boutique and is decorated entirely in pink.

Tavecchi makes world debut In September 2011, the bag retailer Tavecchi opened its first mono-brand store at via Borgospesso 25 (corner of via della Spiga) in a 120 square metre split-level space, with 40 square metres designed as a showroom and the remainder as a store.

Lanvin, Ballin and Duvetica open new flagship stores In February 2011, Lanvin opened a 150 square metre boutique at the corner of via della Spiga and via Santo Spirito in the former Borbonese store. Additional openings are planned in Rome and Bologna.

Pretty Ballerinas via della Spiga, Milan

Kiton via Gesu, Milan locationgroup research | Retail Market Study 2012

207

In September, the shoe retailer Ballin opened its second mono-brand boutique in Milan, at via Santo Spirito 5, the first having been inaugurated in 2010 at via Col di Lana 3.

Fresh from store openings in Tokyo, Courmayeur and Kitzbühel, Duvetica opened its fourth mono-brand store in October 2011 at via Santo Spirito 22, in a space designed by the renowned Japanese architect Tadao Ando.

Sportmax expands With a retail space of over 250 square metres on two floors, the new SPORTMAX flagship boutique has four large windows that look onto the street. The store’s concept was to create a monochrome spatial effect by using one main element: the colour tan, the fundamental characteristic that discreetly blends the furnishing features with the architecture.

Pretty Ballerinas via della Spiga, Milan

Brunello Cucinelli opens third store on via della Spiga In October 2011, Brunello Cucinelli opened a 300 square metre split-level store on via della Spiga in the former store operated by Sportmax (a member of the Max Mara Group).

Corso Buenos Aires is the main communication artery connecting the city centre with the small business and large scale industrial district to the north of Milan.

Buenos Aires is the biggest shopping street in the city and one of the largest in the whole of Europe, comprising dozens of shops offering many different genres of merchandise, with clothes prevailing. Nowadays, however, the stores here tend to change hands increasingly frequently and the little old shops that were the traditional mainstay of local trade are disappearing.

Lanvin via della Spiga, Milan

Peuterey opens first store worldwide The Italian fashion retailer G&P opened a Peuterey flagship store at via della Spiga 6 in downtown Milan in a 140 square metre split-level space. The new store is the retailer’s first following the closing of a temporary store in Milan in late 2009. The company’s second store worldwide will open on Berlin’s Kurfürstendamm in 2012.

Lanvin promotion for the opening in Milan

208

locationgroup research | Retail Market Study 2012

Desigual and Mango debut on Corso Buenos Aires In October 2011, Desigual opened a 500 square metre store at the corner of Corso Buenos Aires and via Ruggero Boscovich, in the former Modisti space. As for Mango, in June 2011 it opened a 400 square metre store on Milan’s Corso Buenos Aires, bringing the company’s fleet of Italian stores to 64.

Westfield comes to the Continent The world’s largest shopping mall developer, Australia-based Westfield, will be opening a premium shopping mall in Milan in 2015 as a joint venture with the Italian concern Stilo. The construction of the around 170,000 square metre mall will cost roughly 230 million euro.

Sportmax via della Spiga, Milan

Peuterey via della Spiga, Milan locationgroup research | Retail Market Study 2012

209

45 Rome with new Louis Vuitton Maison .

Colloseum Rome

210

locationgroup research | Retail Market Study 2012

ROME, the capital of Italy, has around 2,7 million inhabitants within the city limits and around 3,3 million including the suburbs, making it Italy’s most populous city – one that is also referred to as the Eternal City, largely due to its having been the capital of the Roman Empire. Rome is Europe’s oldest capital city: it is 700 years older than Paris, 710 years older than London, around 1,300 years older than Madrid, and 1,990 years older than Berlin. Rome was also the first metropolis in human history, The Italian fashion retailer Napapijri opened a 100 square metre store on via delle Convertite in March 2011.

Via del Corso (or Corso for short), which is one of the most renowned streets in Rome’s old town, runs from Piazza del Popolo to Piazza Venezia – a distance of around 1,6 kilometres.

Petersdom, Rome

Gap via del Corso, Rome locationgroup research | Retail Market Study 2012

211

Dior & Yves Saint Lauren via Condotti, Rome

Gap opens second store in Italy The US retailer Gap opened a 1,965 square metre store in July 2011 on via del Corso, where store rents are in the neighbourhood of 3,900 euro per square metre and many international fashion retailers have outlets: Zara, Stefanel, Diesel, Lacoste, Nike, Adidas, Puma, Ethic, Sandro Ferrone, Energie, Miss Sixty and Foot Locker.

Fossil opened a 350 square metre flagship store at via del Corso 150 in November 2011.

Hermès via Campo Marzio, Rome

Trussardi 1911 via Condotti, Rome

212

locationgroup research | Retail Market Study 2012

Newcomers on Piazza San Lorenzo The new Maison Etoile Louis Vuitton opened in January 2011 on Piazza San Lorenzo. The 1,200 square metre flagship store has three levels. 2011 also saw the opening on Piazza San Lorenzo of a Pasquale Bruni jewellery store.

Hermès opens second flagship store In September 2011, the French luxury retailer Hermès opened its second store in Rome on via Campo Marzio in an around 100 square metre space. Hermès’ other Roman flagship store is on the ritzy shopping street via Condotti.

Via Condotti – Rome’s ritziest shopping street Via Condotti is Rome’s ritziest shopping street, where store rents are in the neighbourhood of 6,700 euro per square metre a year, and myriad luxury retailers have outposts: Dior, Gucci, Valentino, Hermès, Armani, La Perla, Prada, Salvatore Ferragamo, Furla, Burberry, Dolce & Gabbana, Bulgari, Louis Vuitton and Montblanc.

The Milan luxury retailer Trussardi opened its new 400 square metre Trussardi 1911 flagship store on via Condotti in February 2011.

Furla opens largest store worldwide The Bologna-based Italian leather goods retailer opened its largest outlet to date in 2010 on Rome’s via Condotti in a 415 square metre store that was designed by Italian architect Andrea Truglio.

Anteprima Babuino, Rome

Louis Vuitton via Condotti, Rome locationgroup research | Retail Market Study 2012

213

Zadig & Voltaire debuts in Rome In November 2011, Zadig & Voltaire opened a 200 square metre boutique on via Bocca di Leone in the former Valentino store.

Stella McCartney opened her second Italian store (after Milan) on via Borgognona in a 100 square metre space that was formerly leased

by Eddy Monetti.

Pura Lopez and Cadadei open new shoe stores In September 2011, the Spanish shoe retailer Pura Lopez opened its first Italian store at Piazza di Spagna in the former Dolce & Gabbana space. A month later, the Italian shoe retailer Casadei opened a 100 square metre store next door.

Hoss Intropia via dei Due Macelli, Rome

Hoss Intropia opens flagship store The Spanish women’s fashion retailer Hoss Intropia opened its first Italian flagship store in a 300 square metre space at via Dei Due Macelli 63-65 near Piazza di Spagna. Hoss Intropia has 1,500 boutiques in 40 countries.

In November 2011, the US retailer 7 For All Mankind opened its second Italian flagship store in an around 70 square metre space on Rome’s via delle Carrozze.

Lanvin, Anteprima & Herve Leger debut on via del Buino In February 2011, Lanvin and its local franchisee opened a 155 square metre store on via del Babuino.

In November 2011, the designer clothes retailer Anteprima opened its third Italian store in a 60 square metre space that was designed by Yuko Nagayama. Anteprima intends to expand into Asia and Europe in the near future, as well as to the US, as the company only has stores in Hawaii at present.

Herve Leger, via del Buino, Rome

Brazilian flair in Rome Having previously opened a store in London’s Kingly Court, in June 2011 Havaianas opened its first Italian store in a 40 square metre space on via Belsiana, which runs parallel to via Condotti.

Enzo Mantovani opens third boutique Fresh from successful store openings in Milan and Desenzano, the Carpi-based cashmere retailer Enzo Mantovani opened its third mono-brand store in Rome in a 120 square metre space on via Sistina near Piazza di Spagna and via Condotti.

214

The French retailer Herve Leger opened an 85 square metre boutique in November 2011 on via del Babuino. The company, which was acquired in 1998 by BCBG Max Azria, has 11 stores worldwide.

Store rents on via Cola di Rienzo half those on via Condotti Another well-known Rome shopping street is via Cola di Rienzo, which extends from the centre of Rome to the Tiber and where store rents are in the neighbourhood of 3,000 euro per square metre. Various international retailers such as Coccinelle, Geox, Furla, Intimissimi, Mandarina Duck, Swatch, Swarovski, Yamamay, Benetton and Diesel have stores here.

locationgroup research | Retail Market Study 2012

Rome’s most prominent shopping malls are as follows: Euroma 2: located at the corner of via Cristoforo Colombo and Viale dell‘Oceano Pacifico; 240 stores, leased by retailers such as the following: C&K, Energie & Miss Sixty, Morgan, Tommy Hilfiger, Timberland, Guess, Oltre and Foot Locker.

Roma Est: located on via Collatina; 136,000 square metres, 220 stores, leased by retailers such as Benetton, H&M, Foot Locker, Fila, Golden Point, Calzedonia and Intimissimi. The Italian fashion retailer Harmont & Blaine also opted to kick off its expansion program in Rome by opening a 600 square metre store on the second level of Roma Est in December 2011.

Porta di Roma: located on via Alberto Lionello, with 210 stores, leased by the likes of Bershka, Benetton, Calvin Klein Jeans, Calzedonia, H&M, Energie, Miss Sixty, Guess, Zara and Tommy Hilfiger.

Roma Est Shopping Center

Euroma 2 Shopping Center locationgroup research | Retail Market Study 2012

215

46 Oslo with world’s biggest Ikea presumably .

World’s biggest Ikea may open in Oslo in 2014 From a relatively small location in suburban Asker back in the 1960s, to its first major store at Slependen West of Oslo, Ikea has since expanded into most Norwegian cities.

Now its 21,500 square metres aren’t enough to handle demand, and Ikea officials want to expand again, to 59,000 square metres.

That would make it bigger than Ikea’s flagship store in Stockholm at 56,000 square metres. If permits and land acquisition succeed, the new store may open in two to three years.

MQ to hit Norwegian market Swedish brand MQ started to hit the Norwegian market last year, with a couple of stores in downtown Oslo. In 2011, they opened their flagship store in Oslos highstreet Bogstadveien and presented a show with selected looks from their autumn collection.

Oslo by Night

OSLO, which until 1924 was known as Christiana, is Norway’s capital and has 600,000 inhabitants within the city limits and around 1.9 million in the Oslo metropolitan area. According to a UBS prices and earnings survey, Oslo is the most expensive city surveyed, followed by Zurich and Geneva, even if rents are excluded.

H&M opened new flagship with first H&M Home H&M opened the new flagship store in Oslo in March 2011 at Bogstadveien with 3,000 square metres. The exiting new store is the first H&M store in Norway to feature the H&M Home concept. And with five floors of shopping, customers can also enjoy an extensive range of fashion and accessories for women, men and kids.

Along Oslo’s main shopping street, Karl Johans Gate, are government building worth seeing such as Storting, Slottet, and the Royal Palace.

Oslo Panorama

216

locationgroup research | Retail Market Study 2012

Monsoon finally opened in Oslo The British clothing chain Monsoon Accessorize has opened its first Nordic flagship store in Bogstadveien on 200 square metres in March 2011.

ODLO opened the first store in Norway With the opening of the flagship store, the Swiss company ODLO, the leading manufacturer of functional sportswear, is going back to its Norwegian roots. The store is also located at Bogstadveien and was opened in November 2011.

Starbucks to open its first store in Norway in 2012 at the Oslo Airport Starbucks will start its expansion in Norway at Oslo Airport, which hosts more than 20 million passengers a year. There is further expansion in progress at Oslo Airport (OSL) to construct Terminal 2. The work started in 2011 and will be completed by 2017. OSL will then have a capacity of 28 million passengers annually.

locationgroup research | Retail Market Study 2012

Monsoon Bogstadveien, Oslo

217

47 Stockholm with many newcomers on Biblioteksgatan .

STOCKHOLM is Sweden‘s capital city, and at 855 000 (municipality of Stockholm), 1,37 million or 2,1 million inhabitants (greater Stockholm area) the biggest city in Scandinavia. Since 1643, the King‘s residence has been at Stockholm.

Everybody‘s favourite shopping area in Stockholm is Gamla Stan (Old Town). Site of the Royal Palace, it even attracts such shoppers as the Queen. The main street for browsing is Västerlnggatan; many antiques stores are found here, but don‘t expect low prices. In the Sergels Torg area, the main shopping street is Hamngatan, site of the famous shopping centre Gallerian, at the corner of Hamngatan and Sergels Torg, and crossing the northern rim of Kungsträdgården at Sweden House. Big department stores, such as NK and Åhléns, are located nearby.

Many of Stockholm‘s most charming classic cinemas have been closed in recent years, victims of the competition from modern Stockholm

Urban Outfitters Biblioteksgatan, Oslo

218

locationgroup research | Retail Market Study 2012

multiplex screens. The elegant Röda Kvarn on Biblioteksgatan was recently transformed into an Urban Outfitters store.

Hugo Boss relocation Hugo Boss relocated its flagship store in Stockholm from Birger Jarlsgatan to Biblioteksgatan in October 2011. The new flagship store on two storeys will be the company’s most high-profile presence in the Nordic region.

COS new on Biblioteksgatan Swedish fashion group Hennes & Mauritz launched its brand COS in Stockholm in the summer of 2011. It‘s the first COS store in Sweden, which is located in the old premise of Emporio Armani‘s on Biblioteksgatan, at the very heart of Stockholm’s key destination shopping area. After Stockholm, in the autumn of 2012, COS will launch their second store in the old cinema Palladium in Göteborg.

Hamngatan, Oslo

Hugo Boss Biblioteksgatan, Stockholm locationgroup research | Retail Market Study 2012

219

7 For all Mankind Birger Jarlsgatan, Stockholm

Burberry Biblioteksgatan, Stockholm

220

locationgroup research | Retail Market Study 2012

Burberry debute on Biblioteksgatan Burberry has announced the opening of its very first store in Sweden on Biblioteksgatan at the end of January 2012. The 200 square metre store is situated over three floors in a historic building from 1900. It was designed by Burberry Chief Creative Officer Christopher Bailey and features British materials and themes.

7 For All Mankind arrived in Sweden The American denim brand 7 For All Mankind has opened its first Swedish store at Birger Jarlsgatan in Stockholm. The store of 150 square metres has clothes, jeans, and accessories for both women and men.

Aldo & Topshop with their debuts The American footwear chain ALDO opens its first Swedish store on Sergelgatan in Stockholm in May 2011. Topshop opened their flagship store on Sergelgatan two months earlier.

Hollister and Monki move into Stockholm’s newly opened Gallerian mall Stockholm’s first and largest shopping mall, Gallerian on Hamngatan Street, was completely renovated, and together with its boutiques and department stores constitutes a distinctive powershopping destination. Many of the mall’s new stores and fashion boutiques, including Hollister and Monki in 500 square metre spaces each, opened in the summer of 2011.

Gallerian Hamngatan, Stockholm

Top Shop Sergelgatan, Stockholm locationgroup research | Retail Market Study 2012

221

48 Helsinki with new openings at Aleksanterinkatu, Kluuvi and Kämp Galleria .

HELSINKI is the capital of Finland. With 589,000 inhabitants, it is also the country’s most populous city and forms the centre of the “capital region,” which is a conurbation with a population of around 1 million. Helsinki is officially a bilingual city by virtue of the fact that 6,2 % of its inhabitants speak Swedish.

Helsinki’s main shopping streets are Aleksanterinkatu and Esplanadi. The former, which is named after Czar Alexander I, extends from Senate Square to Mannerheimintie. Aleksanterinkatu is home to numerous stores, including Stockmann, which is the largest department store in the Nordic region. Esplanadi, which runs parallel to Aleksanterinkatu, is composed of two streets, Pohjoisesplanadi and Eteläesplanadi (North and South Esplanade), with a park between them.

Lumi opened at Aleksanterinkatu The new Lumi Helsinki flagship multi-brand fashion boutique opened in May 2011 at Aleksanterinkatu, opposite the historic site of the Senate Square and the Helsinki Cathedral, at the crossing of the busy shopping street of Aleksanterinkatu and Unioninkatu.

This unique area is where Helsinki’s vibrant city life and recreational centre used to be in the good old days – from the 18th to the 20th centuries. The new boutique concept will show Lumi’s extensive collection and its bestseller, the all-in-one Supermarket Bag, in a unique setting that combines modern with traditional.

Esprit opened opposite Stockmann Esprit’s new flagship store with over 1,100 square metres opened on Aleksanterinkatu 21 opposite Stockmann in spring 2011. The second store opened in the shopping centre Itäkeskus. Itäkeskus, located approximately ten kilometres from the city centre, is the largest shopping centre in the Nordics comprising a wide range of domestic and international retailers.

Superdry, Jumpin, and Volcom arrived in Kluuvi shopping centre In October 2011 was the opening of the new store in the capital of Finland, Helsinki. Superdry can be found in the brand-new Kluuvi Mall in the city centre where fashion-loving guests attended the Mall’s launch.

The funny fashion brand Jumpin opened a new store in December 2011 in the Kluuvi shopping centre.

The snowboarder brand Volcom celebrated the birth of the most Northern Volcom Store. The Volcom Pop-Up store opened its doors into the renewed shopping mall in October 2011 for some fortunate crowds.

Helsinki Waterfront

222

locationgroup research | Retail Market Study 2012

Kämp Galleria with new tenants Kiehl’s and Filippa K Cosmetics chain Kiehl’s opened their flagship store in Minkonkatu, Helsinki, in August 2011 at the Kämp Galleria shopping centre. In October 2011, Filippa K launched a new concept store, with a retail space of 140 square metres.

First Starbucks & Stockmann opened new store in Terminal 2 In August 2011, Stockmann, which is a renowned purveyor of fine goods, opened its new delicatessen and gift store, just opposite Cafe Tori between Gates 26 and 27 of Helsinki Airport. The bright and spacious store offers a total of 214 square metres of retail space. The first Starbucks retail store opened in Finland early in 2012 at Helsinki Airport

Kiehl’s Opening Kämp Galleria, Helsinki

Aleksanterinkatu Helsinki

Kluuvi Shopping Center, Helsinki locationgroup research | Retail Market Study 2012

223

49 Copenhagen new with Lanvin and Moncler on Strøget‘s Østergade .

COPENHAGEN is the capital of Denmark, the country’s cultural and economic centre, and the seat of Parliament (Folketing), the federal government and the monarchy. Copenhagen is one of the most important cities in Northern Europe, and also one of Europe’s most frequently visited cities. The municipality has 540,000 inhabitants, 710,000 within the city limits, and 1,2 million in the Hovedstadsområdet metropolitan area.

Strøget and Strædet form a highly popular pedestrian shopping street that extends over more than 1 kilometre, the longest in Europe.

Lanvin took over Chanel store Earlier in 2011, Chanel closed the store on Østergade. “Lanvin is a worthy successor to Chanel,” says Jens Birger Christensen, who opened the new Lanvin store in September 2011 and looks forward to the cooperation, adding: “We are proud that we have been chosen as a partner, and we expect lots of Lanvin in the coming years.”

Copenhagen Havn

Strøget Copenhagen

224

locationgroup research | Retail Market Study 2012

Moncler took over Noa Noa Italian outdoor clothing and accessory brand Moncler opened a flagship store in Copenhagen at Østergade. A dark Alp-like room with fur all over and photos of polar bears creates the setting for the perfect luxurious winter shopping experience.

First Disney store of Scandinavia Scandinavia‘s only Disney Store is to be found in Copenhagen at Amagertorv. In June 2011, the American entertainment giant opened its doors on Strøget in the heart of the city. The store is designed to be an interactive experience for the small consumers – Disney‘s classic narrative traditions combined with innovative technical solutions that will help visitors to let their imagination fly.

Strøget on a Saturday, Copenhagen

The Disney Store opens with a special ceremony each and every day where one lucky girl or boy is allowed to turn the big key in the huge lock shielding the entrance to the store.

Monki opened at Frederiksberggade In October 2011, Monki opened a new store in Copenhagen at Frederiksberggade. The store has an area of almost 200 square metres on two floors.

White Stuff on Kompagnistræde English brand White Stuff opened its first store outside the UK in the centre of Copenhagen on Kompagnistræde in November 2011.

White Stuff has currently 78 stores in the United Kingdom and was founded in 1985 by George Treves and Sean Thomas – two ski buffs who first sold their “Boys from the White Stuff” T-shirts to pay for their skiing habit. Twenty-five years on, and they now sell beautiful women’s, men’s, accessories, and home stuff.

MGPA acquires a prime retail property in Copenhagen MGPA, the independent private equity real-estate investment advisory company, on behalf of MGPA Europe Fund III (the Fund), is pleased to announce the acquisition of a landmark high-street retail property, home of the well-known department store “Illum” in central Copenhagen. The acquisition is a joint venture with Partners Group and a Canadian institutional investor, where the Fund holds a majority stake and controlling interest. The purchase price was in the region of 220 million euro and Senior Debt was provided

by SEB.

Moncler Ostergade, Copenhagen locationgroup research | Retail Market Study 2012

225

The property consists of two adjacent buildings for a total of 40,300 square metres of gross lettable area (GLA) and is located in Copenhagen’s prime retail district, benefiting from prominent road frontage on four sides. The most visible corner of the site is at the junction of the two most prominent pedestrian retail streets in the city. The majority of the space is leased to historic department store operator Illum on a 15-year basis, while MGPA also intends to create high-street retail units, including flagship stores for international retailers.

The seller is Magillum Properties A/S, a part of the Solstra Group.

Solstra owns the Illum retail operation as well as the landmark property KgS Nytorv, housing the Magasin department store, and other property and retail investments.

Monki Frederiksberggade, Copenhagen

White Stuff KompagnistrĂŚde, Copenhagen

226

locationgroup research | Retail Market Study 2012

50 Warsaw with new opening of Wolf Bracka Luxury Department Store .

WARSAW is the capital of Poland, the country’s largest city, and the tenth most populous city in the EU. Located on the Vistula River in the Masovian Voivodeship, Warsaw has over 1,7 million inhabitants and is the centre of a 3,5 million conurbation containing satellite cities such as Pruszków, Grodzisk Mazowiecki, Żyrardów, Wołomin, Otwock, and Legionowo.

Retail space is in demand in Poland in its 40 cities with more than 100,000 inhabitants. As a result of the shortage of quality retail locations in these cities, landlords often have the upper hand in lease negotiations. But in small cities, retailers have the advantage, as demand for retail space is lower. Retailers that enter the Polish market are increasingly particular when it comes to the requirements a retail location must meet.

Warsaw by night

Moreover, owing to the massive amounts being invested in construction for the UEFA Euro 2012 soccer championship, the Polish economy, as well as Polish consumption, is growing at a rate of 3 % in the current year. Consumption is expected to stagnate in most EU countries.

For those who like to splurge, Warsaw has a range of designer labels to offer, starting with Plac Trzech Krzyży. Surrounding the centre-placed church are stores such as Hugo Boss, Escada, Burberry, Deni Cler, Max Mara, Furla, Lacoste, Ermenegildo Zegna, and newly opened Giorgio Armani.

Warsaw City

Old town Warsaw locationgroup research | Retail Market Study 2012

227

Gucci, Bottega Veneta & Co. opened on ul. Bracka The Wolf Bracka luxury department store designed by Stefan Kuryłowicz has been opened in Warsaw. The building, which has a leasable area of app. 11,830 square metres, is located on ul.

Bracka in the city centre. The most well known shops are Bottega Veneta, Gucci, Giorgio Armani, Yves Saint Laurent and Lanvin.

Cocinelle pressing forward expansion plans After the recent opening of single-brand Coccinelle stores in Florence, Minsk, Bratislava, and Yekaterinburg, the leading Italian manufacturer of bags, shoes and accessories is pressing forward with its global expansion plans by launching four new boutiques in Odessa, Lodz and Warsaw at Plac Trzech Krzyży.

Ermenegildo Zegna and Burberry on Plac Trzech Krzyży, Warsaw

Mokotowska Street (situated between Piękna street and Plac Zbawiciela) is another perfect boutique location, which for many Varsovians is what Bond Street is for Londoners. Here, you can find the Flash store, carrying the labels Krizia, Sak & But, season collections of Marc Jacobs, Chloe, Roberto Cavalli, and Jimmy Choo shoes.

The Metropolitan building at Piłsudskiego Square attracts with shops by Dolce & Gabbana, Burlington, or Dior. Meanwhile on Żurawia Street, you can stock up on Sergio Rossi heels and flats.

The rumors on the market are the openings of Louis Vuitton and Chanel on Złota Street 44.

Max Mara opened new flagship store in Warsaw In March 2011, Max Mara opened one of the first boutiques in Europe projected according to the new concept based on Milan’s Corso Vittorio Emanuele Max Mara boutique. The store is located on the prime location of Warsaw, in Nowy Swiat.

Atrium acquires Molo shopping mall Szcecin In December 2011 the Eastern European property developer Atrium European Real Estate acquired the Molo shopping mall in Szczecin, Poland’s seventh largest city, for 55 million euro. The

Gucci ul. Bracka, Wasaw

Metropolitan-Office Building on Plac Piłsudskiego, Warsaw

228

locationgroup research | Retail Market Study 2012

Nowy Swiat, Warsaw

mall, which also has an office complex and service station, was purchased from PFCE Soparfi, a real estate fund that is managed

by CBRE Global Investors. The transaction, which Atrium indicated was financed through a combination of equity and loans, came on the heels of the company’s 191 million euro investment in Prague’s Palác Flóra mall. A 10 million euro renovation of the Molo mall was completed in November 2010, now offers a 26,000 square metres retail area.

Prior to the Molo acquisition, Atrium owned 19 operational Polish shopping malls with an aggregate market value of around 926 million euro as at 30 September 2011. In May of that year, Atrium

expanded its activities to Warsaw by purchasing that city’s Promenada mall for 171 million euro.

Arkadia Undeniably, Arkadia is the most popular and beloved Warsaw shopping gallery. It is the largest shopping centre in Eastern Europe, accommodating 180 stores of top national and foreign brands, 20 restaurants, cafes, and a 15-screen cinema. The shops are spread over street-like galleries that are built in a circle. This fact makes Arkadia – unlike other malls – impossible to get lost in.

Arkadia is conveniently located at the end of the Aleja Jana Pawła II near Rondo Radosława (former Babka). It is easily accessible by

Arkadia shopping center, Warsaw locationgroup research | Retail Market Study 2012

229

ZĹ‚ote Tarasy shopping center, Warsaw

Arkadia shopping center, Warsaw

230

locationgroup research | Retail Market Study 2012

several bus and tramway lines as well as by the underground (one tram stop from Dworzec Gdański station).

Złote Tarasy This modern multifunctional complex is famous for its modern design and a giant glass roof, with over a hectare in surface area. Złote Tarasy (the Golden Terraces) has achieved the title of the best commercial project in the world. The cascading terraces cover an internal plaza with fountains and an external one with restaurants, cafes, and music clubs. The commercial section consists of over 200 stores.

Złote Tarasy is located in the heart of Warsaw near the central railway station and is easily accessible by any public transport.

Galeria Mokotów Galeria Mokotów is probably the most prestigious shopping centre in Warsaw and the best destination for designer clothing. 240 clothes stores include Clavin Klein, Lacoste, Versace, Trussardi, Peek & Cloppenburg, as well as several high-street chains like Mango, Diesel, and River Island. It also has a good selection of restaurants and snack bars, as well as a multiplex cinema, a play area for children, and a bowling alley. Galeria Mokotów is located in Mokotów, the southern part of Warsaw.

Galeria Centrum Galeria Centrum is located in the heart of the capital – just on the east side of the Palace of Culture and Science.

It is primarily a clothing store as it offers ladies‘, men‘s and junior fashion, lingerie, accessories, footwear, jewellery.

Galeria Centrum’s success is built on clothing brands like Autograf, Frodo, Hoffland that are designed exclusively for Galeria Centrum and available only in its stores. It also has a decent toy department and a wide selection of cosmetics and perfume.

The central location and free parking (if you spend at least 15 euro) make Galeria Centrum a very attractive place to go shopping.

locationgroup research | Retail Market Study 2012

231

51 Prague – Tiffany opened opposite Gucci .

PRAGUE is the capital of Czech Republic and the country’s most populous city, with 1,25 million inhabitants.

Wenzel Square, the city’s most popular gathering place, is located in Nove Mesto (New City), which was founded in the 14th century; but all traces of its medieval origins have been erased by a cosmopolitan boulevard dotted with stylish shopping arcades.

Tiffany will open opposite Gucci Tiffany will open on Parizska in Prague with retail space of 240 square metres in the summer of 2012. Its former tenant was Nespresso. In the future, Tiffany & Co will also set up boutiques in Budapest and Warsaw.

La Perla opened on Parizska La Perla opened its new boutique with luxury lingerie in Prague in April 2011 at Parizska. 2011 was a strategic year for La Perla as it La Perla Pariser Street, Praque

Praque Skyline

232

locationgroup research | Retail Market Study 2012

kept expanding in Asia, while strengthening its presence in Europe, with the opening of 19 new flagship stores.

Salvatore Ferragamo comes to Eastern Europe In mid-December 2011 was the opening of the new, spacious Salvatore Ferragamo boutique on Parizska Street. On a sales area of 210 square metres, the complete assortment of women‘s and men‘s fashion, including accessories, is offered.

Dolce & Gabbana opens first Czech flagship store Dolce & Gabbana has opened its first Czech flagship store in a 144 square metre, centrally located storefront at Parizska. The store carries women’s and men’s clothing, and accessories, as well as casual wear and designer fashion.

Stefanel opens on Parizska Stefanel is strengthening its presence in Eastern Europe, having opened three new concept stores in the region – one each in Prague, Bucharest and Budapest. The 90 square metre store in Prague is located at the end of Parizska street.

Paris street, Prague

Wenzelsplace, Praque locationgroup research | Retail Market Study 2012

233

around 700 square metres and intends to build its largest client centre in Prague there.

Below are some selected Prague shopping malls ordered by location (from the city centre to the outskirts(.

Myslbek Shopping Gallery The Myslbek Shopping Gallery opened in 1996 as one of Prague‘s first shopping malls. It connects Prague‘s New Town and Old Town, stretching between the busy Na Příkopě Street and the historic Ovocný trh (Fruit Market) behind the Estates Theatre. The site is named after the sculptor who created the St. Wenceslas statue on Wenceslas Square. Myslbek Shopping Gallery houses about 30 shops and boutiques, and a few restaurants. Examples of shops are GANT, Next, Korres, Mothercare, Intersport.

Salvatore Ferragamo Parizska, Prague

New neighbours on Wenceslas Square Retailers show growing interest in the city‘s improved high street.

Funky Spanish fashion brand Desigual recently took up 750 square metres at no. 1 Wenceslas Square, replacing the previous occupier, BodyFarm, a pharmacy and cosmetics shop. The new store is Desigual’s very first location in the Czech Republic.

Slovanský dům (Slavic House) Slovanský dům is another shopping centre located on Na Příkopě.

Some stores you‘ll find there are Nautica, Mexx, Miss Sixty, Tommy Hilfiger, Cerruti Jeans, Beltissimo. The restaurants that deserve a mention are Ambiente Brasileiro and Kogo Café & Ristorante.

There‘s also a large outdoor garden and the Palace Cinemas multiplex theatre.

Not far away, the Slovak clothing company Gate has taken up 1,500 square metres for its flagship store, and the Czech men‘s fashion brand Blažek opened its 30th store in April 2011, the first to be located outside a shopping centre. A major reconstruction is also under way at no. 4 in the Palác Astra building, which used to be occupied by Kanzelsberger bookshop. Raiffeisenbank has leased

Palladium shopping center, Prague

234

Palladium mall, Prague locationgroup research | Retail Market Study 2012

Nový Smíchov shopping center, Prague

Palác Flóra shopping center, Prague locationgroup research | Retail Market Study 2012

235

Myslbek Shopping-Gallery, Prag

Palladium Palladium is a large shopping gallery located in the centre of Prague, opposite the Obecní dům (Municipal House). The five-story building holds 170 shops and 30 restaurants and cafes. It is an easy location to get to using public transportation, but in case you are driving, there are 900 underground parking spaces. Some stores and restaurants you‘ll find there are Au Gourmand, Benetton, C&A, dm drogeriemarkt, ECCO, H&M, L‘Occitane, Marks & Spencer, Mothercare, Sparkys, Starbucks, and Villeroy & Boch.

Nový Smíchov Nový Smíchov is a stylish, modern shopping mall and entertainment centre that spreads across three floors. It is located near the Anděl metro station (line B). There‘s a large Tesco supermarket and Datart electronics store on the ground floor, 150 different shops, as well as a food court and Palace Cinema multiplex on the third floor.

Palác Flóra Palác Flóra is one of the larger malls. It opened in 2003. Its four floors are filled with 120 shops, a food court, a Cinema City multiplex theatre, and Oskar IMAX. The environment is bright and airy with an open central lobby. You can walk into the mall right from inside the Flóra metro station (line A).

236

locationgroup research | Retail Market Study 2012

52 Budapest, Andrássy út – the most important shopping street in the “Paris of the East” .

BUDAPEST is the capital of Hungary and the country’s largest city.

With 1,7 million inhabitants, Budapest counts as the EU’s ninth most populous city; it was founded in 1873 when the cities of Buda and Pest were combined into a single entity.

Hungarian retail sales are sinking steadily and rapidly Hungarian retail sales are declining ever more sharply and rapidly.

The rate of decline relative to the prior year was 7,8, 7,5, 7,3 and 6,6 % in November, October, September and July 2011 respectively.

Hence Hungarian retail sales have been declining steadily since February 2007, i.e. for almost three years. Retail sales from January to November 2009 were 5 % lower than in the same period in 2008.

Hungarian retail sales amounted to HUF 617,5 billion (2,27 billion euro) in November 2011. Grocery sales declined 6,5 % in November 2011 and 4 % from January to November relative to the prior year.

Motor fuel sales declined by only 1,5 % in November and were on a par with the prior year between January and November. However, this was attributable solely to sharp price increases, and fuel consumption dropped by around 10 %. Cars and car accessory sales, which are not included in retail sales statistics, declined by 46 % in November 2011.

Andrássy út: the most important shopping street in the “Paris of the East” Andrássy út links downtown Budapest with the city’s heavily wooded parks and with Hősök tere (Heroes’ Square) via its distinctive architectural harmony and magnificence. In 2002, the street, along with the Földalatti Metro (subway) line that runs below it, which is Europe’s oldest stretch of subway, was named an UNESCO World Cultural Heritage Site.

Opera Andrássy Út, Budapest

Max Mara opened on Andrássy út Max Mara opened a new store in the heart of “Eastern Paris” with more than 300 square metres of selling surface, divided into two floors in Andrássy út. Situated in a prestigious historic building, the new Max Mara shop finds its counterpoints in the ancient walls recently restored and the modern combination of metal and glass.

Roberto Cavalli Franchise Andrew Vajna closed boutique Roberto Cavalli closed a store in Budapest at Andrássy út in September 2011. The store was opened less than two years ago and was operated as a franchise by a local company controlled by Hungarian producer Andrew Vajna.

Budapest Skyline locationgroup research | Retail Market Study 2012

237

Tiffany confirmed to open in Budapest Tiffany is expected to open in Budapest in 2012. The rumored location is on Váci utca.

Debenhams opened on Váci utca The Romanian Debro Holding opened a Debenhams store in Budapest at the WestEnd City Centre on Váci utca in April 2011. The sales area is 2 100 square metres. The company has invested over 1 million euro in the Budapest opening.

A turnover of four million euro was estimated for 2011 for the Hungarian market. Debro Holding owns the franchise rights for Debenhams for 13 countries in the region.

Váci1 Luxury-Mall, Budapest

Hard Rock Cafe debuts in Budapest at the upscale Váci1 shopping mall The legendary restaurant chain Hard Rock Cafe opened its first Budapest branch in late 2011 at one of Budapest’s choicest locations, Váci1 mall, a centrally located Art Nouveau building at the corner of Vörösmárty tér and Váci utca that was formerly occupied by the country’s first savings bank and then the Budapest stock exchange, and will be converted into an upscale shopping mall by ORCO Property Group.

The Budapest branch of Hard Rock Cafe covers 1,110 square metres, which is around 10 % of the mall’s total floor space. Apart from ritzy stores and a magnificent decor, a gourmet rooftop restaurant with a panoramic view of downtown Budapest and the Danube will take up residence at the mall. Like Starbucks, Hard Rock Cafe took its time in coming to Budapest.

Ex Roberto Cavalli Store Andrassy ut, Budapest

238

locationgroup research | Retail Market Study 2012

53 Bukarest new with Burberry, Gucci and H&M .

BUCHAREST, the capital of Romania, has around 2 million inhabitants and a conurbation with a population of around 2.6 million, making it the EU’s sixth most populous city.

Bukarest’s cosmopolitan culture and the strong French influence on its architecture have earned it the nickname the “Paris of Eastern Europe”.

There are a number of major international supermarket chains such as Carrefour, Cora and METRO operating in Bucharest. At the moment, the city is undergoing a retail boom, with a large number of new supermarkets and hypermarkets opened every year (see supermarkets in Romania). Numerous malls and large shopping centres have been built since the late 1990s, such as AFI Palace Cotroceni, Sun Plaza, Băneasa Shopping City, Plaza Romania, Liberty Center and Unirea Shopping Center. There are also a large number of traditional retail arcades and markets such as the one at Obor.

Gucci opened first mono-brand store The first mono-brand Gucci store in Bucharest opened mid December 2010, despite initial rumours of a possible delay.

Bukarest

Palace Parliament – The House of People, Bukarest locationgroup research | Retail Market Study 2012

239

The Gucci store covers a surface of 280 square metres and is situated on the groundfloor of Athenee Palace Hilton, Bucharest‘s leading five star hotel which has recently completed a major renovation. The location in Bucharest is on the leading shopping high street of Calea Victoriei with large windows assuring excellent visibility.

The luxury market in Romania The luxury market in Romania has been among the worst affected in the Central and Eastern European region, with sales drops of up to 20 % in 2009 and 30 % in 2010, compared to 2008. According to CPP, a recovery is not expected before the Fall season of 2011.

Athénée Palace, Bukarest

Despite the difficult market conditions, Gucci will likely have a good performance in Romania due to the notoriety and desirability of the brand which ranks among the top three preferred luxury brands by Romanian wealthy consumers, but also due to the fact that the brand has a large collection of leather goods.

Calea Victoriei neighbourhood Unlike many parts of Calea Victoriei which do not have a pedestrian area or have a very small one, the Athenee Palace has a generous pedestrian area. The Gucci store also benefits from being located within the Athenee Palace Hilton hotel and opposite to the Radisson Blu, which is the newest 5 star hotel in Bucharest, both hotels attracting a good number of local wealthy customers in their food and beverage outlets. The new Gucci store is within walking distance from the mono-brand boutiques of Rolex (just opened), Paul & Shark, Ermenegildo Zegna, Emporio Armani (just opened) and Estée Lauder.

Louis Vuitton operates very successfully in Bucharest The location of Gucci is also exceptional in comparison to Louis Vuitton, which is situated within the lackluster shopping gallery of the JW Marriott Hotel, within a distance from the city centre.

The decision to open in Romania is a recognition of the potential of the Romanian luxury market, rival Louis Vuitton operating a very

Calea Victoriei, Bukarest

JW Marriott Hotel, Bukarest

240

locationgroup research | Retail Market Study 2012

H&M Opening AFI Palace, Bukarest

Liberty center mall, Bukarest locationgroup research | Retail Market Study 2012

241

successful store in Bucharest since 2008. Other luxury brands with mono-brand stores in Bucharest include: Louis Vuitton, Canali, Hugo Boss, Moschino, Paul & Shark, Ermenegildo Zegna, Pal Zileri. Most other luxury brands (fashion and accessories) are present within multi-brand stores.

Ermanno Scervino and Valentino mono-brand stores now open in Bucharest, Escada to follow suit Italian fashion houses Ermanno Scervino and Valentino inaugurated their mono-brand boutiques in Bucharest in December 2011.

Both stores are also situated within the shopping gallery of the JW Marriott Hotel in Bucharest and are operated in franchising (different local partners).

Escada is due to open a mono-brand boutique in the same shopping gallery by March 2012, with the same partner that used to be present until 2008 when it closed down.

The Gucci and Emporio Armani mono-brand stores with high street locations downtown and increased visibility are doing less than 1,4 million euro in turnover annually. Escada used to be present until 2008 with three mono-brand stores (3 lines), each franchised by different partners.

Burberry opens in Bucharest British luxury brand Burberry is set to open its first store in Bucharest. The 250 square metre store will be operated in franchising by a local company, with limited experience in luxury retail. Compared to other capital cities in Eastern Europe, such as Budapest, Kiev, Warsaw or Belgrade where Burberry stores have prominent central locations with maximum visibility, the brand settled for a small side street, off the main high street Calea Victoriei. The chosen location also has challenging access, the street being a one way, small one, with limited parking.

H&M debut in Bucharest H&M opened the first new store in Romania in March 2011 at AFI Palace Cotroceni, Bucharest, with selling space of 1,700 square metres. This was the first of a series of 5 store openings set to happen until mid-April. H&M representatives have said Romania is actually the first country where it will open eight units within one year.

3 more shopping centers opened in Bucharest This was an exciting autumn for Bucharest’s retail scene in 2011, with three commercial centres opening their doors. The first was the Vitantis Shopping Center, which opened in mid-September. It

Vitantis shopping center, Bukarest

242

locationgroup research | Retail Market Study 2012

was followed by the Liberty Center at the end of October, and the Fashion House Outlet – the first of its kind in Romania – at the end of November.

Perhaps the most eagerly awaited of the new projects is the Fashion House Outlet, which is part of a larger project, West Park, being developed by Liebrecht & Wood. Among the brands that have already rented space are international retailers Puma, Benetton, Mango and Levi Strauss & Co., who will line up next to smaller players like Steilmann, Leonardo, Bigotti, Cavaliere, Alb si Negru and Jolidon. The 120 million euro project has around 20,000 square metres of space in 130 shops.

Vitantis Shopping Center opened its third and final stage featuring furniture retailer Mobila Bontas and a commercial gallery of 85 shops. The total leased area is 11,300 square metres; phases one and two of Vitantis (a Carrefour hypermarket and the DIY store Praktiker) opened in the summer. Vitantis is owned by Equest, part of Equest Balkan Properties, which acquired the retail park in 2006 for 31,6 million euro.

Liberty Center, the first mall developed in Romania by Irish group Mivan Developments, was fully let, with the opening on 31st October. Liberty Center offers 25,000 square metres of shopping on three levels, with 100 stores and 700 underground parking spaces.

The developer has allocated 750 million euro for investment in commercial projects over the next three to four years, of which Liberty Center accounts for around 70 million euro.

Sun Plaza shopping center, Bukarest locationgroup research | Retail Market Study 2012

243

54 Moscow, Salvatore Ferragamo with first men’s monobrand store .

MOSCOW is the capital of the Russian Federation with 11,5 million inhabitants, it is the country’s most populous city, and with 14,6 million inhabitants in the Moscow conurbation, it is Europe’s most populous city.

GUM – Moscow’s largest and most renowned department store, and one of the largest in the world – is located in the heart of Moscow on Red Square and across from the Lenin Mausoleum and the Kremlin.

Among Moscow’s most popular shopping streets are Nowy Arbat, a main thoroughfare west of the Kremlin, and Arbat Street, which runs parallel to Nowy Arbat and is Moscow’s oldest pedestrian

zone. The city’s most prominent shopping street, where a number of ritzy boutiques have outlets, is Twerskaja Street, which runs north from Red Square.

Numerous well-established international retail chains have set up shops in Moscow (and increasingly in other major Russian cities), including Metro Cash & Carry, Real, Marktkauf, Spar, Auchan, Obi and Ikea. In addition, along the major arteries leading into and out of Moscow, as well as on the Moscow Ring Road (MKAD) new shopping malls spring up every year that offer all the modern comforts and virtually any product a shopper could want. Particularly popular are Moscow’s gargantuan MEGA malls, which apart from a broad range of shopping options, also contain multiplex movie theatres and ice skating rinks and offer extensive entertainment programs.

The outlook for the Russian retail sector is good, despite the financial and economic crisis Russia offers myriad expansion opportunities for companies and investors alike owing to its size, as well as the extensive infrastructure and modernisation catch-up measures that remain, plus the country’s prospects for economic growth. This applies not only to Moscow, the world class metropolis with its prestige properties such as Europe’s tallest apartment building Triumph Palace; and Crystal Island, the world’s largest building (on its completion). For thanks to the Inter Ikea Group as well as luxury malls developed by Russian oligarchs, Moscow is also fast becoming a self-assured trendsetter for international architecture and fashion. However, Russia’s second and third tier cities have also begun appearing on the radar of international retail chains and investors.

Kreml Moscow

Kreml & Moskwa river, Moscow

244

locationgroup research | Retail Market Study 2012

Gum shopping mall, Mosow

Foreign investors are back The aforesaid prospects are also attracting foreign investors to Russia, primarily from the BRIC states, i.e. Brazil, Russia, India and China.

There has never been a better time to invest in the Russian market Numerous indicators attest to the fact that this is an excellent time for retailers to invest in the Russian market. Both, retail rents and construction costs are declining due to the fact that investors are increasingly reluctant to invest in real estate. For example, investment costs for commercial buildings such as hypermarkets have decreased to 600 dollar a square metre since the outbreak of the economic crisis in Russia. Suitable land runs anywhere from 50 to 100 dollar a square metre, down from 300 to 500 dollar only a year ago.

As for rents, store tenants can demand 20 to 30 % discounts nowadays, and get them too, since landlords are interested in renting to reliable long-term tenants.

Prada and Miu Miu debut in Russia In 2010, Prada announced that they are going to cease its collaboration with leading Russian luxury retailer Mercury Group and are going to open its own, directly operated store in Moscow, by mid-2011. Prada has had a franchising and distribution agreement with Mercury for more than ten years on exclusive terms. Mercury is not only a retailer but also owns key retail such as the TSUM department store in Moscow.

Gum Moscow locationgroup research | Retail Market Study 2012

245

Stoleshnikov Pereulok, Moscow

Ulysse Nardin flagship store opened in Nikolskaya Street The opening ceremony of the Ulysse Nardin flagship store in Moscow was similar to a scene from a fairy tale. Nikolskaya Street, a stone’s throw from the Red Square, was closed to all traffic while a renowned fully uniformed band marched down the street to famous Russian military tunes, stopping in front of the boutique.

A white covered carriage pulled by two white horses followed with Mr. Rolf Schnyder accompanied by Anna Chapman. Local, national and international press and television were waiting in front of the boutique to capture the important ribbon cutting ceremony.

Old Arbat Street, Moscow

Tom Ford with women‘s boutique Tom Ford inaugurated its second European mono-brand space dedicated to his women‘s line, in Moscow at Tretyakov Passage (Tretyakovsky Proyezd), a historical complex of buildings which also houses stores of Ralph Lauren, Tiffany, Yves Saint Laurent, Dolce & Gabbana, Chopard, Baccarat etc.

Tom Ford attended the event in Moscow personally, which also marked the launch of his latest perfume Violet Blonde, with a dedicated corner within the TSUM Department Store. Tom Ford‘s women‘s boutique at Tretyakov Passage covers a surface of 150 square metres. The new Tom Ford boutique is operated in franchising by leading Russian luxury retailer Mercury Group, which has been operating Tom Ford‘s men‘s mono-brand in Moscow since early 2009, at Barvikha Village shopping gallery. Mercury Group is also the owner of Tretyakov Passage, Tsum Department store, Barvikha Village Hotel and shopping gallery and several other luxury real estate.

Novy Arbat Moscow

246

locationgroup research | Retail Market Study 2012

Lanvin opened three new boutiques Lanvin already holds presence in Moscow’s Tsum giant department store and opened three freestanding boutiques in September 2011 in the Crocus Mall, Barvikha Village centre, and the luxury Tretyakovsky Passage.

Salvatore Ferragamo with first men’s monobrand store Salvatore Ferragamo opened its first men’s monobrand store in the GUM Shopping Complex on Red Square, in the heart of Moscow. The shop is located on the second floor of 1st line, which lines men’s luxury brands’ boutiques. In the new shop, which has an area of 60 square metres, all categories of men’s fashion will be sold – clothes, accessories, footwear, glasses, and perfumes.

The new boutique will be managed by Salvatore Ferragamo, in partnership with their Russian partners, JamilCo Group. The opening of the boutique in GUM is part of a broader strategy by Salvatore Ferragamo to strengthen itself in the Russian market, which has begun when they opened their first retail boutique in Moscow in 2002.

Nikolskaya-Street, Moscow

Miu Miu Stoleshnikov Pereulok, Moscow locationgroup research | Retail Market Study 2012

247

Tsum Department Store, Moscow

Cindy Crawford

Cindy Crawford opened Omega flagship Legendary supermodel and Omega‘s longest-running ambassador, Cindy Crawford, was the marquee name at the gala opening of the Swiss watch manufacture‘s new-look boutique at the posh GUM department store in Moscow.

Apple coming to Moscow Apple will be opening a 1,500 square metre store in Moscow in 2012.

At the dramatically lit Pashkov House in Moscow, Omega president Stephen Urquhart and Cindy Crawford mingled with VIP guests and friends of the brand, who were entertained by actors dressed whimsically as watchmakers and a stunning display of Omega‘s Constellation timepieces, specially flown in from the Swiss headquarters.

Infinite luxury, glamour and beauty beyond words – Philipp Plein invited to his premiere in Russia and Moscow‘s haute volée followed Tretiakov Plaza, the new premium location in Moscow downtown, became the spot devoted to the opening of the first Philipp Plein mono-brand boutique in Russia in March 2011. The event was hosted by Olga Rodionova. The designer himself arrived at the entrance accompanied by Miss Russia 2010.

Reiss opens third Russian store The British fashion retailer Reiss opened a 257 square metre outlet at the Metropolis mall in December 2011, making this the company’s third Russian store after its 290 square metre outlet at St. Petersburg’s SEC Galeria and a 450 square metre store at Moscow’s Tsvetnoy Central Market.

Gap Inc. expands presence in Russia with first Banana Republic store Continuing with its global expansion strategy, Gap Inc. opened the first Banana Republic store with 600 square metres in Russia through its franchise channel.

The store is located in Moscow’s AfiMall City, the largest shopping and entertainment complex in the city. Gap Inc. first made its products available to Russian consumers in 2008 with its first Gap store. Since then, the company has expanded its store base to eleven franchise stores in the market, including nine in Moscow. The new store will be managed under Gap’s existing franchise agreement with Fiba Holding, which also manages the brand’s franchise locations in Turkey and the Ukraine.

Uniqlo is opening its third store in Russia The third Uniqlo shop was opened in the new trade entertainment centre AfiMall City, located in the largest and most ambitious business investment project in Europe – Moscow City. Uniqlo chose this particular place for its third store because of its advantageous location and large traffic of customers, as well as taking into account space requirements – over 1,500 square metres. At present, the new store is the biggest Uniqlo in Moscow.

Rolf Schnyder and Anna Chapman

248

locationgroup research | Retail Market Study 2012

Tom Ford commercial Russia

locationgroup research | Retail Market Study 2012

249

Barvikha Village Center

Immofinanz acquires the remaining 25 % share in Moscow’s GoodZone mall Immofinanz has acquired the remaining 25 % share in the Moscow’s GoodZone mall, which is currently under construction. The purchase price was not disclosed. GoodZone counts as one of Moscow’s largest retail projects ever and is the second largest investment Immofinanz in Moscow. The first construction phase will involve realisation of around 50,000 square metres of retail space at a cost

of around 85 million euros, with development potential amounting to an additional 17,000 square metres in a second phase.

Immofinanz acquired the initial 75 % of the project back in July 2007. The economic crisis of 2008 and 2009 resulted in a temporary suspension of construction activities. As a result of intensive negotiations, Immofinanz’s acquisition of the remaining share will allow for completion of the mall, which is scheduled to open in 2012.

Philipp Plein Flagship, Moscow

250

locationgroup research | Retail Market Study 2012

Planned Mall GoodZone, Moscow

Philipp Plein Flagship, Moscow locationgroup research | Retail Market Study 2012

251

Afi Mall, Moscow

252

locationgroup research | Retail Market Study 2012

55 Zagreb with superb luxury shopping in the centre .

ZAGREB, which is the capital of Croatia and the country’s most populous city, is also Croatia’s only city whose population (including suburbs) exceeds 1 million. The estimated population of this area is put at around 1,1 million, or 1,2 million to 1,6 million, respectively.

Visitors from nearby EU states are increasingly discovering that Zagreb is a city that offers shopping bargains galore. In addition to a growing number of malls on Zagreb’s eastern and western outskirts such as King Cross, Avenue Mall, City Centre One, and West Gate, the centre of Zagreb is also a terrific shopping destination, particularly its main shopping street Ilica with its numerous traditional-handcraft stores that sell hand-crafted shoes, hats, leather bags, as well as jewellery stores and various boutiques.

Peek & Cloppenburg sets up shop in Zagreb Peek & Cloppenburg opened its second Zagreb store in 2009 at Westgate Shopping City mall in the Jablanovec district in a splitlevel 3,700 square metre space.

New City Centre Group mall planned with Peek & Cloppenburg aboard Fresh from the success of its mall projects to date, in 2012, City Centre Group will be opening a new mall near Zagreb’s Zitnjak district, where Peek & Cloppenburg will also be opening a new outlet, since, in the company’s view, they have done quite well in Zagreb thus far.

Superb luxury shopping in the centre of Zagreb New luxury and multi-brand store Modiana has opened at the end of 2011 in the City Center One Zagreb. The new Modiana store

Avenue Mall, Zagreb

extends to more than one thousand square metres deluxe retail space. Fashion lovers will enjoy the rich variety of women‘s and men‘s clothing and accessories from the collections of world famous brands such as Betty Barclay, Sinequanone, Mexx, Corazon, Apanage, Erich Fend, Fairly, Bugatti, U.S. Polo, Milestone, Braccialini, Navigare, Pierre Cardin, Strellson, Rifle, and many others.

Tag Heuer new attraction at Cvjetni mall Located in the very heart of Zagreb, on the famous Cvjetni Square, Cvjetni Mall is the brand new shopping destination for Croatian people and tourists. Cvjetni Square is the main destination for all the city’s residents, and many others from the suburban surroundings and large regional centres such as Karlovac, Samobor and Varaždin. It is not unusual for residents of these cities to fulfill their weekend shopping needs in the metropolitan area. Tag Heuer chose this vivid environment to open up its 108th boutique, where customers will be pampered on 42 square metre retail space.

Zagreb Panorama locationgroup research | Retail Market Study 2012

253

H&M opened store in Zagreb last spring H&M opened the first new store in Croatia in April 2011 at Arena Centre in Zagreb with a total retail space of 1,800 square metres. Besides the collections for women and men, it is also featuring collections for kids.

Burberry Opening Centar Kaptol

City Center One, Zagreb

254

locationgroup research | Retail Market Study 2012

KFC launches expansion into Croatia Kentucky Fried Chicken, world‘s most popular chicken restaurant chain, has opened its first restaurant in Croatia, located at Arena Center in Zagreb. KFC will provide work opportunity for 30 people immediately and planned further openings will multiply this number. Every day, more than 12 million customers are served at over 15,000 KFC restaurants, in 109 countries worldwide.

Caleidos looking to enter the Croatian market At the commercial and economic heart of the Croatian capital, the central avenue Ilica, Italian bag and accessories brand Caleidos opened up a new store at the end of 2011. The arrival to Croatia is due to a partnership with an important local businessman. The brand’s expansion plans are said to be very ambitious and more openings are planned for other major cities such as Rieka, Zadar, Split and Dubrovnik.

Ikea invests 1 billion euro Ikea opened the first store in Croatia in 2011 at Rugvica, approx.

20 kilometres from the capital Zagreb with retail space of 26,000 square metres. Ikea intends to open another store in Split as well as in Slovenia and Serbia with total investment around 1 billion euro.

H&M Opening Arena Centar, Zagreb

Centar Kaptol Shopping Center, Zagreb locationgroup research | Retail Market Study 2012

255

56 Belgrade new with Armani, Burberry and Fly London .

BELGRADE is the capital of Serbia. The surface area of the city centre is 36 square kilometres, and that of the surrounding suburbs 2,800 square kilometres – although portions of some suburbs are officially located in the city centre. Together, these entities form Okrug Belgrade, whose population is 1,7 million and with 1,2 million inhabitants, Belgrade is Serbia’s most populous city, as well as the centre of the country’s political, cultural and economic activities.

Belgrade is also Serbia’s most popular tourist city, thanks to its location, its magnificent buildings, its historic monuments, its extensive cultural offerings, its shopping streets, and its excellent nightlife. The city has a large number of hotels and hostels.

Terazije is Belgrade’s designated center Terazije is the central square and an urban neighbourhood of Belgrade, the capital of Serbia. It is located in the Belgrade municipality of Stari Grad.

Despite the fact that many Belgraders consider the Republic Square or Kalemegdan to be the city‘s centerpiece areas, Terazije is Belgrade‘s designated center. Terazije itself is also a short street, connected by the King Milan Street, the main street in Belgrade, to the Slavija square, by the Nikola Pašić Square to the King Alexander Boulevard, the longest street in Belgrade, by Prizrenska street to the neighbourhood of Zeleni Venac and further to Novi Beograd, and by the Kolarčeva street to the Square of the Republic.

Belgrade

256

locationgroup research | Retail Market Study 2012

Apart from the city’s existing shopping malls (Usce, Merctor, and Delta City) there is also Delta Planet on Autokommanda, which is currently under construction and on completion will be the city’s largest mall. These malls are known for their broad and overwhelmingly international selection of products, as is Knez Mihailova, a shopping street in the Stari Beograd district.

Delta City Belgrade construction began in March 2006 The shopping mall is managed by Delta City, owned by Delta Holding, a Serbian conglomerate. Designed by Israeli architects MYS, the project costs 74 million euro. Delta City opened its doors to public on 1st November, 2007 and is located in New Belgrade‘s Blok 67.

With floor area of 87,000 square metres, it is the first shopping mall with a size like this in Serbia. Its total gross leasable area is 30,000 square metres. Some of the stores in the mall include: Nike, Zara, Mexx, Calvin Klein, Diesel, Energie, Marks & Spencer, Adidas, Miss Sixty, Reebok, Loris Azzaro, Tommy Hilfiger, Mango, Esprit, Oysho, Bershka, Sephora, L‘Occitane, Pull and Bear, Tom Tailor, Massimo Dutti, Stradivarius, Tally Weijl, Geox, Office Shoes and others.

Delta Planet, Belgrade

The mall also includes 15 restaurants as well as 3 restaurant chains: Kentucky Fried Chicken, McDonald’s and Costa Coffee.

Delta City can serve 200,000 people within a 10 minute walk, and 600,000 within a 10 minute drive.

Although it is the first true shopping mall in Serbia, Delta City will probably have lots of competition in the near future. Ušće Centre as part of Ušće Tower is larger than Delta City; it opened at the end of March 2008.

Burberry in Belgrade since spring 2010 Burberry has opened its first store in Belgrade in spring 2010. The store, located at Terazije has a floor area of 290 square metres. The store was designed according to the new Burberry concept. The design concept features the use of Brit themes and materials in contemporary applications.

Burberry Terazije, Belgrade

Armani opens a 270 square metre store Giorgio Armani has officially opened their first Emporio Armani store in Serbia in October 2010, covering over 270 square metres.

Its interior design is a work of Giorgio Armani and his world-renowned team of architects.

Fly London opens an office in Belgrade Fly London opened a new store near the Terazije Camper in Belgrade in November 2011. The English brand, founded in London in 1994, strives now for an eastern European expansion with its shoes and accessoires.

Delta City, Belgrade locationgroup research | Retail Market Study 2012

257

Fly London Terazije, Belgrade

Mimimiaso Čumićevo sokače, Belgrade

Mimimaso: the new star in the firmament of the Choomich design district Mimimaso opened on 21st December, 2011 at Čumićevo sokače a new store in Belgrade. The shop is located in Choomich Design district that brings together all Belgrade designers.

Gap opens 200th franchise store Gap opened in Serbia in September 2011 at Knez Mihailova Street.

Their franchise partner is the Greek Marinopoulos Group, which is also responsible for the franchise stores in Greece, Bulgaria, Croatia, Romania and Cyprus. This is the company’s 200th franchise Gap store. The store will show products from their Gap, GapKids and babyGap collections.

Fly London Terazije, Belgrade

AMC opens in Belgrade; Serbian fashion brands up and coming Afrodite Mode Collection (AMC), a well-known Serbian fashion brand which creates very sophisticated collections, has opened in March 2011 in Belgrade. Clients will be able to shop on approx. 36 square metre retail area with a stylish interior design.

Mr. Bricolage DIY chain expanding The international expansion of well-known retail chain Mr. Bricolage, continues with the opening of their first store in Belgrade, which is the third store in Serbia.

Emporio Armani, Belgrade

Burberry has opened a store in Kaptol shopping centre British luxury brand Burberry opened its first mono-brand store in Serbia in the capital of Belgrade at the end of November 2011. Already present in Belgrade for almost one year with a shop in shop within a luxury multi-brand store, Burberry opened a mono-brand franchised store in a highstreet location of over 300 square metres downtown Belgrade in March 2010.

258

The company, with 2,1 billion euro turnover and 1,6 million square metres of retail space, is among the world’s four largest hypermarket chains which operates through the network of 652 stores on 4 continents. The lease in Serbia is 3 000 square metres of retail space at Shopping Center Pasino brdo.

Fur retailer unaffected by economic crisis In December 2011, Avanti Furs announced plans to relocate to a new and sumptuous store on Sava Centar, a move the retailer said was necessary to increase the store’s size so as to provide customers with a luxurious shopping experience.

locationgroup research | Retail Market Study 2012

5IF HMPCBM QMBUGPSN GPS %FQBSUNFOU 4UPSFT

3TAYING 2ELEVANT FOR 'ROWTH -AY \ 0ARIS

4HE 'LOBAL $EPARTMENT 3TORE 3UMMIT '$33 IS THE WORLD´S LEADING EVENT FOR DEPARTMENT STORES 4HE 3UMMIT IS SPECIFICALLY DESIGNED FOR #%/S AND SENIOR EXECUTIVES OF LEADING DEPARTMENT STORES BRANDS SUPPLIERS AND MAJOR STAKEHOLDERS FROM THE SERVICE FINANCE AND RETAIL REAL ESTATE SECTORS $URING THE RD '$33 IN 0ARIS HIGHLY EXPERIENCED RETAIL #%/S FROM !MERICA !SIA %UROPE AND !USTRALIA WILL SHARE THEIR SUCCESS STORIES AND STRATEGIES ON THE TOPIC OF ³3TAYING 2ELEVANT FOR 'ROWTH´

2EGISTER NOW

FOR THE RD '$33 ON OUR WEBSITE

WWW DSSUMMIT ORG 4HE EVENT WILL BE HELD ON -AY AT THE ICONIC #ENTRE 0OMPIDOU 0ARIS !S SEATS ARE LIMITED WE ADVISE REGISTERING AS EARLY AS POSSIBLE

'$33 IS ORGANIZED BY )NTERCONTINENTAL 'ROUP OF $EPARTMENT 3TORES IN COLLABORATION WITH 0RINTEMPS locationgroup research | Retail Market Study 2012

259

260

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

261

Luxury European holiday resorts .

St. Moritz (elevation 1,800 metres) is one of the most renowned alpine spa and winter sports locations, and despite its year-round population of only around 5,000 has the atmosphere of a cosmopolitan alpine city. The classic jet-set haunts here include luxury hotels such as Bard’s Palace Hotel, Kulm Hotel, Suvretta House, Carlton Hotel and Kempinski.

Nijole new in St. Moritz In December 2011, Nijole opened the new boutique in St. Moritz situated in Via Serlas among the most luxurious shops. An 80 square metre space was built in the chalet-style with prevalence of warm and cosy colours.

Badrutt’s Palace Hotel via Serlas, St. Moritz

Via Serlas – a must for jet-setters Batrutt’s Palace Hotel is a magnet for all those who want to see and be seen. At his behest, the erstwhile Bernie’s CEO was to operate the former flower shop Les Fleurs Kernen under the name Brunello Cucinelli Boutique. However, this plan was derailed by the bankruptcy of the Italian owner Mariella Burani. This led to an intensive search for a suitable replacement tenant for the 90 square metre shoebox space, which is sandwiched between Jil Sander and the lone Roberto Cavalli boutique; the space was ultimately leased to

St. Moritz

262

locationgroup research | Retail Market Study 2012

the British high-end shoe retailer Jimmy Choo, whose store opened in the fall of 2011.

Kitty-corner across the street - Trudie Götz converted one of her Trois Pommes boutiques into a Tom Ford store.

In the Murezzan complex, the down-jacket retailer Moncler operated the first Industries Group store, whose lease it ceded in April 2011 to the Italian cashmere business unit of Brunello Cucinelli.

The eponymous founder – who operates his Perugia based company in a supremely sustainable and environmentally friendly fashion – opened his second boutique in Geneva.

Bernie’s having thrown in the towel, Moncler, which was founded in Monestier de Clermont (near Grenoble) in 1952, took over Bernie’s space (likewise located on Via Maistra) in exchange for a tidy keymoney sum.

Located in Bern canton’s Oberland region at 1,050 metres above sea level, Gstaad has a population of 7,000 and is part of the municipality of Saanen. The town centre has been off limits to motor vehicles since 1998. The Promenade, which was built as part of the

Shops in the Complex Badrutts, St. Moritz

town-centre bypass road construction project, features numerous exclusive shops, restaurants and hotels. All of Gstaad’s buildings display chalet architecture, which lends the town a special flair, and many luminaries spend their vacations in Gstaad.

Jimmy Choo via Serlas, St. Moritz locationgroup research | Retail Market Study 2012

263

This new boutique will provide Hublot with a dedicated, elegant setting to welcome its clients, combining state-of-the-art technologies in a mountain location.

Spanning over 30 square metres, the boutique features a magnificent traditional Bernese ceiling built by local artisans, combined with a black granite stone floor, leather, wood and glass.

Fabergé with pop-up in the Palace Fabergé will be selling its famous glittering eggs from its pop-up boutique within the Palace Hotel. A new collection will be up for grabs – diamond-encrusted designs from Fabergé’s Les Fabuleuses Collections.

Look opens a store at Grand Hotel Park Gstaad The French fashion retailer Look opened a new boutique in December 2011 at Grand Hotel Park Gstaad.

Hublot Promenade, Gstaad

First new luxury hotel in Gstaad for 100 years Slated to open in December 2012, the Alpina Gstaad is the first five-star hotel to be realised in Gstaad in 100 years.

Only a five minute walk from the centre of town, the hotel is located on a rise in Gstaad’s exclusive Oberbort district and has a panoramic view of Saanenland and the breathtaking Bern Alps.

The Alpina Gstaad offers 57 rooms and suites, 11 apartments, a chalet with three apartments, and two additional chalets. The chalets and most of the apartments are already sold. Built at a cost of around CHF 300 million, the Alpina Gstaad, its 20,000 square metre grounds, and the hotel’s myriad amenities will greatly enhance the appeal of Gstaad and the surrounding area. The hotel will be open approximately 240 days a year.

The hotel’s owners Marcel Bach and Jean-Claude Mimran have created a haven that updates the alpine style and that also features the classic architecture of the alpine region, as do the materials used in the hotel. All of this adds up to an elegantly understated modern facility.

Palace Hotel, Gstaad

Breguet opened in Gstaad After Geneva and Zurich, Breguet is now setting up in Gstaad. This new Swiss boutique that opened in August 2011 is spread over two floors and covers a total surface area of 170 square metres on Bahnhofstrasse. The former tenant was Lorenz Bach.

Hublot took over Jeweller Weber After opening around fourty boutiques in just four years, Hublot is continuing its fantastic expansion into the world‘s most prestigious locations by opening a boutique in Gstaad on Promenade. It will open its doors with its Genevan partner and long-time friend Benoit de Gorski in mid-December, in a prime location in the middle of the main pedestrian route through the village.

264

locationgroup research | Retail Market Study 2012

FORTE DEI MARMI is a sea town and commune in the province of Lucca, in northern Tuscany. The population of the town, amounting to some 7,700, nearly triples during the summer, because of the hundreds of tourists who mainly come from Florence, Milan, Germany, and Russia. Tourism is the principal activity of Forte dei Marmi‘s citizens. In Italian Forte dei Marmi means „Fort of the marbles“.

Moncler moved to a bigger store Moncler opened a new store in Forte dei Marmi in July 2011. The Tuscan store has a surface area of 110 square metres and is located in Piazza Garibaldi. Two large display windows introduce the Moncler world, emphasised by the French woodwork engraved with floral patterns in relief. Inside, the atmosphere draws inspiration from the lofty heights of the Alps and is enriched with marble flooring and the smoke-tinted metal detailing of the displays.

Moncler Forte dei Marmi

Philipp Plein arrives in Fore dei Marmi The store faces the central via Novembre in a well-known location and receives the customers in an ultra-contemporary and luxurious dimension of 50 square metres. Luminous, relaxed, in perfect balance with the exclusive harmony that Forte dei Marmi enjoys.

The Forte dei Marmi store presents originality and detail richness.

Prada opened new menswear store At the beginning of July 2011, Prada opened a new menswear store in Forte dei Marmi. The contemporary space displays a masculine style in a relaxed and elegant environment. Designed by architect Roberto Baciocchi, the store covers an area of almost 1,000 square metres and occupies the entire ground floor of a building facing onto the Piazza Garibaldi and via Montauti’s angle, whose facade has been completely restored.

Escada throws an elegant gala opening A gala cocktail reception was held in April 2011 to celebrate the opening of Escada’s new flagship store in Forte Dei Marmi, which is located right on elegant Piazzetta dei Marmi and is one of the largest flagship stores where Escada has rolled out its new store concept. Among those in attendance at the event were Escada CEO Bruno Sälzer and Escada Italia CEO Alberto Cristofoli. More than 300 luminaries from the world of nobility and fashion were also in attendance.

Escada Piazzetta dei Marmi

Siste‘s expands to Forte dei Marmi In April 2011 Siste’s opened its fourth mono-brand store in the heart of Forte dei Marmi. With its stylish location on Via Montauti, Siste’s opened in one of the most renowned shopping streets in Forte dei Marmi. After Milano, Bologna and Bolzano, the Versilian store will display, on its 80 square metres, the clothing, the accessories and the mood that inspire the entire production of the brand.

The new store in Forte dei Marmi faithfully recounts the values of Siste’s, a brand dedicated to a dynamic and modern woman who dresses her personality with a perfect mix of refinement and versatility and with an all Made in Italy quality.

Prada Forte dei Marmi locationgroup research | Retail Market Study 2012

265

CAPRI is an island in the Tyrrhenian Sea off the Sorrentine Peninsula, on the south side of the Gulf of Naples. The main town on the island shares the name. It has been a resort since the time of the Roman Republic. Features of the island are the Marina Piccola (the little harbour) and the Belvedere of Tragara (a high panoramic promenade lined with villas).

Eres debuts on via Camerelle The inventive and outré swimwear and lingerie retailer Eres is continuing with its expansion programme, the latest milestone has been the opening of the company’s first boutique on Capri on 2 May 2011 in a 30 square metre space on exclusive via Camerelle.

Unlike Eres’s other stores, this boutique will only carry swimwear.

Miu Miu continues expansion April 2011 saw the opening of a new mono-brand boutique in Capri. The boutique, designed by architect Roberto Baciocchi, has an entrance and three display windows on via Vittorio Emanuele on the corner overlooking the piazza of Hotel Quisisana, in the island’s primary shopping destination. The space spans a total surface area of 50 square metres, and houses the collections of ready-to-wear, footwear and accessories for women in a bright and welcoming atmosphere.

Santoni debut in Capri A few weeks after opening of new store in Beijing, Santoni came back to Italy and opened their boutique in Capri in April 2011. The store is located in via delle Botteghe with furnishings of the Santoni stores, characterised by the solidity and refinement of mate-

rials and finishes opposed to the modernity of the seating, each featuring an iPad by means of which one may explore the Santoni world.

Casedei new in via Cemerelle Casedei just opened a new boutique in via Camerelle in April 2010.

Among other shops, the lovely boutique maintains the typical elegance of the brand although blending in with the singularity of the Neapolitan island. For the first time apart from an urban centre, the store perfectly matches with the sun-kissed atmosphere of Capri.

CORTINA ‘AMPEZZO is a town and commune in the southern (Dolomitic) Alps located in Veneto, a region in Northern Italy. Located in the heart of the Dolomites in an alpine valley, it is a popular winter sport resort known for its ski-ranges, scenery, accommodations, shops and après-ski scene. It is also known for its jet set and European aristocracy crowd.

The town has been the location of endless films, including For Your Eyes Only, the James bond film starring Roger Moore that was shot thirty years ago. It is one of the chicest places in the whole of the Italian peninsula. Some of Italy’s most famous families are visitors – people such as the Barillas and the Marzottos. Shopping is one of the most popular “sports”: in winter, you can combine it with the piste and other activities, in summer with a stroll in the Dolomites or a day of total relaxation.

One of the most famous boutiques is undoubtedly Le Noir. This is a

Eres Capri

266

locationgroup research | Retail Market Study 2012

space dedicated to fashion collections and brings together some of the best known brands with creations by young creative talents.

The windows are also elegant – they reflect the mix and match ethos you find inside the shop. Dior handbags or a red Azzedine Alaia dress that goes perfectly with a pair of Christian Louboutin sandals.

Another boutique you must visit is Franz Kraler. There is a Fendi Peekaboo bag in crocodile blue, perfect if you can’t bear to be without your bag even on holiday. The windows of the Brunello Cucinelli boutique have breathtaking views of the mountain tops, and whether it’s winter or not, they show off chic creations elegantly reinterpreting mountain-wear classics.

COURMEYEUR is located 10 kilometres southeast of Mont Blanc and gave Mont Blanc de Courmayeur its name. Aosta Valley arises just beyond Mont Blanc de Courmayeur, below the massive face of Mont Blanc, at whose foot the first two side valleys of Aosta Valley arise.

Pedestrian Area, Cortina d‘Ampezzo

Marina Grande, Capri locationgroup research | Retail Market Study 2012

267

Owing to its location, Courmeyeur is referred to as the secret capital city of Alpinists, and counts as one of the oldest and most renowned Alpine tourist destinations. The entrance to the Mont Blanc tunnel lies just beyond Courmayeur.

mit of Mont Blanc with its neighbouring commune of Courmayeur in Italy, and owns the title of highest commune in France. The commune is well-known and loved by skiers and by mountain enthusiasts of all types. Chamonix is the fourth largest commune in mainland France.

Strolling along Via Roma in the town centre, it strikes you immediately how this place is a fascinating mix of tradition and modernity.

You go from the sophistication and exclusivity of Guichardaz, the historic store where Claudio Magenta provides his clientele with ever more distinctive and uniquely elegant clothes, to the recently restyled Courmayeur 105, where you can find a selection of the most important Italian and international luxury brands, including Balenciaga, Fendi, Lanvin, Balmain, Prada, Yves Saint Laurent, Marc Jacobs, Bottega Veneta, and many more besides.

A lot of international brands can be found in the French alp resort: Quicksilver, O’Neil, Esprit, North Face, Columbia, Lacoste, Chanel, Peak Performance and Patagonia.

Italia Independet by Lapo Elkann In December 2011, Italia Independent, the Italian fashion label owned by Lapo Elkann, opened in Courmayeur, the label’s third mono-brand store in Italy. Inside the boutique, the mountain tradition fuses with an innovative look created partly by design pieces inspired by the world of the Fiat 500. It’s all strictly made in Italy.

CHAMONIX-MONT-BLANC or, more commonly, Chamonix is a commune in the Haute-Savoie département in the Rhône-Alpes region in south-eastern France. The commune‘s population of around 9 800 ranks 865th within the country of France. Situated near the massive peaks of the Aiguilles Rouges, Chamonix shares the sum-

Superdry pop-up store in Chamonix Superdry, the British streetwear label that belongs to SuperGroup, opened a pop-up store in the French mountain resort of Chamonix in December 2011.

Quiksilver at the foot of Mont Blanc The streetwear retailer Quicksilver has opened a new board-riders club. The flagship store, which is designed in log-cabin style, has around 400 square metres of retail space and carries labels such as Roxy, DC and Moskova & Co.

Colmar opened second store in the Alps After the recent grand opening of the Madonna di Campiglio shop in July 2011, Colmar opened another boutique in the heart of the Alps at Rue Vallot in Chamonix. The store in Colmar measures 60 square metres and has a display window of eight square metres.

Courmayeur by Night

268

locationgroup research | Retail Market Study 2012

for the winter season with the aim of accommodating exacting customers in search of an exquisite shopping experience. The store, which was founded by entrepreneur and jewellery designer Arianne Collins, carries a superb selection of haute horologer watches, exclusive jewellery, luxury accessories, and collector‘s items in limited editions. This season, OC Concept Store at Courchevel 1850 will be presenting a host of prestigious and innovative brands such as Ladoire, Yniq, and Caran d’Ache, as well as opulent Arianne Collins jewellery. The three OC Concept Store branches – in St Tropez, at Courchevel 1850, and on Madison Avenue at 60th Street in New York – carry the most renowned and inventive luxury brands so as to make the store a place where customers go in search of the exact item they’ve always dreamed of.

Chanel settled in the heart of the village of Courchevel Last winter, Chanel settled in the heart of the village of Courchevel.

The boutique mixes neutral hues and flashes of colour. The sheen of navy-blue panels on the walls calls to mind the aesthetic of Karl Lagerfeld’s 2011/12 Cruise collection, showcased here alongside the 2012 Spring-Summer collection. Courchevel, a skiing paradise in the French Alps, will be getting a glistening addition to its white slopes in the winter. Chanel has decided to open a temporary boutique amidst the chic resort. Seeking to project the ever-present luxury that has made Chanel an everlasting fashion powerhouse,

Gucci Fiat 500 by Lapo Elkann

Salomon opened fourth boutique in the world The fourth Salomon boutique in the world has opened its doors in Chamonix .Salomon have previously opened boutiques in Moscow, Vancouver, and Toulouse and now the Chamonix store is here. Fully equipped with an impressive range of outdoor equipment from ski to trail-running and from cross-country to snowboard this shop has it all. Furthermore, if you can‘t find what you are looking for in the shop the special ‚web in store‘ allows you to order in anything from their online catalogue.

Hublot aims at reinforcing its legitimacy on the sportcasual segment A couple of days after its boutique opening in Gstaad, Hublot opened a new point of sales in Courchevel. With this new opening, Hublot aims at reinforcing its legitimacy on the sport-casual segment and at increasing its visibility in a place known for the quality of its clientele. The Boutique is located in Rue du Rocher.

Hublot Courchevel

Jean Claude Jitrois on the slopes of Courchevel After opening its two flagships in Moscow and New York, Jean Claude Jitrois continues to attract international customers by opening a new store on the slopes of Courchevel. The French designer has chosen the shopping arcade “Space Needle” in the winter sports resort for its alpine house of men‘s and women’s fashion. The new store was designed by the architect Christophe Pillet, who has officiated in many of the brand shops.

OC Concept Store opens for the winter season In the centre of Courchevel the OC Concept Store opens its doors Chamonix-Mont-Blanc locationgroup research | Retail Market Study 2012

269

minimalist décor and warm sycamore flooring create an inviting refuge for shoppers braving the cold.

MEGEVE (population 3,900), which is located in France’s HauteSavoie département, is a well-known winter sports resort in the Savoy Alps. Tourists have been coming there since 1913, but things really got going in 1921 when Baron Maurice de Rothschild opened the town’s first luxury hotel when St. Moritz denied him a building permit for a hotel there. Megève was one of Europe’s most popular ski resorts in the 1950s and attracted many luminaries to its slopes.

Jitrois Courchevel

The first Colmar Shop was opened in Megève in 1999 – a 30 square metre boutique overlooking Rue Ambroise Martin. After becoming an increasingly popular shopping destination, the store underwent refurbishment several times over the years, and in September 2010, a second shop measuring 60 square metres was opened on Rue Arcades du Mont Blanc.

Chanel Courchevel

Allard & Hermès Megève

270

locationgroup research | Retail Market Study 2012

The Retail Location Specialists

Store Acquisition

Valuation

Location Consulting

Store Acquisition

Store Acquisition

Store Acquisition

Rennweg 35 Zurich

Retail Property Portfolio

Retail Location German Part of Switzerland

Chur, Davos, Engelberg, Solothurn, Spreitenbach, St. Gallen, Wil, Winterthur, Zug, Zurich

Rue Robert Céard 6, Geneva via Maistra 16, St. Moritz

Bahnhofstrasse 40 Zurich

Spring 2007 I Retail Advisor

2008 I Location Analyst

2011 I Location Analyst

2006-2008 I Retail Advisor

Winter 2011 I Retail Advisor

Spring 2005 I Retail Advisor

Store Acquisition

Store Acquisition

Store Acquisition

Store Acquisition

Store Acquisition Strategic Advisory

Store Acquisition

Grand Rue 4-12 Montreux

Mariahilferstrasse 57 Vienna

Cyrstals Shopping Mall Las Vegas

Maximilianstrasse 25 Munich

Aarau, Lausanne, St. Gallen, Yverdon, Zug, Zurich

Athens, Budapest, Düsseldorf, Munich, Stockholm, Warsaw

Winter 2011 I Retail Advisor

Spring 2012 I Retail Advisor

Autumn 2010 I Retail Advisor

2007-2011 I Retail Advisor

2006-2009 I Retail Consultant

Autumn 2008 I Retail Consultant

Store Acquisition

Store Acquisition

Store Acquisition

Store Acquisition

Store Acquisition

Store Acquisition

Bahnhofstrasse 28a Zurich

Rue du Rhône 47, Geneva Bahnhofstrasse 39, Zurich

Kampen/Sylt, Kitzbühel, Zermatt

via Serlas 26 St. Moritz

Rennweg 23 Zurich

Rennweg 28 Zurich

Autumn 2010 I Retail Advisor

Spring 2006 I Retail Advisor

Summer 2011 I Retail Advisor

Winter 2011 I Retail Advisor

Autumn 2007 I Retail Advisor

Autumn 2006 I Retail Advisor

Store Acquisition

Store Acquisition

Store Letting

Store Acquisition

Store Acquisition

Store Acquisition

Rue du Rhône 62 Geneva

Rue du Bourg 35, Lausanne Bahnhofstrasse 58, Zurich

Rue du Rhône 80-82 Geneva

Promenade Gstaad

Rue du Bourg 35 Lausanne

Bahnhofstrasse 53 Zurich

Spring 2011 I Retail Advisor

Summer 2011 I Retail Advisor

Summer 2008 I Landlord Advisor

Summer2012 I Retail Advisor

Winter 2008 I Retail Advisor

Winter 2006 I Retail Advisor

Store Acquisition

Store Acquisition

Store Acquisition

Location Consulting Store Acquisition Tenant Mix Study

Retail Property Zurich

Amsterdam, Antwerp, Brussels, Copenhagen, Geneva, Ginza, Lugano, Manhasset, Miami, Vienna, Zermatt

Store Acquisition

Kurfürstendamm 54 Berlin

Bahnhofstrasse 38 Zurich

Marktgasse, St. Gallen Bahnhofplatz, Zurich

Baden, Basel, Bern, Biel, Davos, Interlaken, Lucerne, Winterthur, Zurich (2x) 2008-2011 I Retail Advisor

2006I Retail Consultant

2009-2011 I Retail Consultant

Summer 2012 I Retail Advisor

Summer 2011 I Retail Advisor

2006 & 2012 I Retail Advisor

Location Consulting

Store Acquisition

Store Acquisition

Store Acquisition

Store Acquisition

Ober-Haus Zurich

Niederdorfstrasse 45 Zurich

Hirschenplatz 7 Lucerne

Rämistrasse 8 Zurich

Basel, Bern, Lausanne, Lugano, Neuchâtel

Autumn 2012 I Retail Consultant

Winter 2010 I Retail Advisor

Autumn 2011 I Retail Advisor

Winter 2010 I Retail Advisor

2007-2010 I Retail Advisor

locationgroup | Retail Market 2012 Location Groupresearch I Löwenstrasse 43Study I CH-8001 Zürich I Tel.: +41/44/225 95 00 I www.location.ch

locationgroup

271

272

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

273

Middle East .

The geographical entity known as the Middle East now refers to the Arab states in the region, as well as Israel, Iran, and part of Turkey. The Middle East, with its roughly 490 million inhabitants, encompasses, in particular, the Fertile Crescent and the Arab peninsula.

Middle East

Burj Al Arab, Dubai

274

locationgroup research | Retail Market Study 2012

57 Istanbul - Nistansi district: Particularly popular with Turkish jet-setters .

ISTANBUL is Turkey’s most populous city and the country’s cultural, trade, financial and media centre. The city extends to the northern shore of the Marmara Sea on both sides of the Bosporus strait between the Mediterranean Sea and the Black Sea. Istanbul is the only city in the world that straddles two continents, by virtue of the Thrakian region in Europe and the Anatolia region in Asia.

With around 13,1 million inhabitants, Istanbul is the world’s fourth most populous city. Its status as a transit location between two continents and two oceans makes it one of the most important locations for international logistics. Istanbul, which can look back on a 2,600-year history since the original part of the city was built has been the capital city of three major world empires.

Istanbul’s Nistansi district: Particularly popular with Turkish jet-setters Istanbul’s Nistansi district is known for its Art Nouveau buildings and is particularly popular with Turkish jet-setters and with people involved in the city’s cultural and art scene. Affluent shoppers stop for a cup of coffee at Armani Cafe, followed by a shopping trip to the nearby luxury boutiques. The side streets offer a wealth of restaurants. Bagdat Avenue is the main shopping street in the Anatolian part of Istanbul.

Istanbul Bosphorus

Abdi İpekçi Street or Abdi İpekçi Avenue is the premier shopping street of İstanbul, located in the Şişli district. It runs along the Maçka and Teşvikiye neighbourhoods, extending from Bayıldım Caddesi/Maçka Caddesi to Vali Konağı Caddesi in the Nişantaşı neighbourhood on its length of about 700 meters.

The street where the Burberry and Louis Vuitton flagship stores are located runs parallel to the Maramar Sea coastline, and in terms of luxury is the counterpart to Istiklal Avenue on the European side of Istanbul.

Citys Mall Nişantaşı, Istanbul

Skyline Istanbul locationgroup research | Retail Market Study 2012

275

Istanbul with first Victoria’s Secret store US-based lingerie giant Victoria’s Secret has opened its first European branch in Istanbul. The store, housed in City’s, a shopping mall in Istanbul’s high-end Nişantaşı neighbourhood, opened its doors to smiling female patrons at the end of November 2011. A second store followed at the İstinye Park shopping centre later in December.

Victoria’s Secret owner The Limited Group has partnered with Turkey’s Park Bravo Group and the Shaya Group to bring the franchise to Turkey. Initially, the stores will only sell perfume and accessories.

Hermès and Prada each open a second store in Istanbul Prada opened its second Istanbul store in December 2010 at Istinye Park Mall in a 500 square metre space where ready-to-wear women’s and men’s fashions, as well as handbags, accessories, and shoes are available. The opening of the second Hermès store in Istanbul was in early December.

Louis Vuitton flagship Bağdat Avenue Nişantaşı, Istanbul

Burberry flagship Bağdat Avenue Nişantaşı, Istanbul

276

locationgroup research | Retail Market Study 2012

Salvatore Ferragamo debuts in Turkey Salvatore Ferragamo inaugurated on December 2010 its first mono-brand store in Istanbul. The new store which covers a surface of 200 square metres and is situated in the upscale neighbourhood of Nisantasi, includes the full range of men‘s and women‘s products.

Ferragamo also inaugurated a 70 square metre shop in the capital of Ankara within the Harvey Nichols department store, marking thus its debut in the Turkish capital.

Bally expands into Turkey The Swiss shoe and leather goods retailer Bally is continuing to pursue its expansion plans and has now entered the Turkish market by opening a store in the Nistansi district that carries all Bally collections, including bags, shoes, leather goods and clothing.

Istinye Park Mall, Istanbul

Istinye Park Mall, Istanbul locationgroup research | Retail Market Study 2012

277

Rolex opens in Abdi Ipekçi Caddesi Altin Sokak Located in Abdi Ipekçi Caddesi Altin Sokak, in the prestigious and vibrant Nisantasi neighbourhood on the west bank, this showroom entirely devoted to Rolex watches offers a sumptuous setting to discover the immense variety of the Oyster and Cellini collections.

Opened in September 2010, this new Rolex Showroom is part of the network of Official Rolex Jewellers, who, as sole authorised points of sale and service of Rolex watches, are the guardians of their authenticity. A welcome area, display and sales areas are carefully laid out on two floors with a total area of 125 square metres.

Galeries Lafayette to opening in Istanbul French premium department store chain Galeries Lafayette has been stepping up its international expansion after Berlin and Dubai, with a new store in Istanbul, operated in franchising by local retailer Demsa Group, which already operates the two Harvey Nichols department stores in Istanbul and Ankara. Further openings are planned in Casablanca, Beijing (2013), Jakarta (2013) and Doha (2014).

Victoria’s Secret Nişantaşı flagship store, Istanbul

Abdi İpekçi Avenue, Istanbul

278

locationgroup research | Retail Market Study 2012

Rolex Istanbul

H&M opening Forum, Istanbul

Forum Shoppingcenter, Istanbul locationgroup research | Retail Market Study 2012

279

H&M opened in Forum Istanbul At the beginning of November 2011, H&M opened in the most central point of Forum Istanbul, one of the biggest malls in Istanbul.

The store has a retail space of 2,300 square metres and carries everything from highest fashion to basics for women, men, teens and kids.

Following the first store opening in Forum Istanbul, H&M will continue its expansion in Turkey. H&M will open stores both in Sapphire Shopping Center and Forum Marmara Shopping Center.

Trump Towers Istanbul Trump Towers Istanbul will bring a new shopping experience to the 5th largest city in the world. Trump Towers shopping mall in Istanbul, the first venture to bear the Trump name in Europe, opened in February 2012. 175 stores offering a unique blend of fashion, entertainment, as well as restaurants cover a total area of 43,600 square metres at the shopping center, which is located in Istanbul’s ĹžiĹ&#x;li district.

Trump Towers Istanbul

280

locationgroup research | Retail Market Study 2012

58 Tel Aviv, American Eagle Outfitters and Forever 21 new arrivals at Azrieli Mall .

TEL-AVIV, has 392,500 inhabitants, making it Israel’s second largest city. The Tel Aviv conurbation encompasses a number of immediately adjacent cities, which are up to 14 kilometres from the Mediterranean coast in the populated zone; and thus the greater Tel Aviv area has a population of around 3,2 million, making it Israel’s largest conurbation.

Virtually all international retailers are to be found in Tel Aviv’s shopping malls. Store rents upwards of 2,400 euro per square metre at Ramat Aviv Mall on Einstein Street are the priciest in Tel Aviv. The mall has 17,800 square metres of leasable space and 140 stores, including Bershka, Diesel, Gant, Zara, Topshop, FCUK, Replay, Montblanc, and a new Louis Vuitton.

Ramat Avvi Mall, Tel Aviv

Tel Aviv aerial view locationgroup research | Retail Market Study 2012

281

Rents on the roughly 420 Dizengoff Centre stores at the corner of Dizengoff Street and King George Street are around 1,500 euro per square metre, and run around 1,243 euro per square metre at the 150,000 square metre Azrieli Shopping Centre.

Louis Vuitton opens at Ramat Aviv Mall The luxury retailer and LVMH Group member Louis Vuitton made its worldwide presence felt even further by opening a 400 square metre store at Ramat Aviv Mall, which is located at 40 Einstein Street in Tel Aviv.

Burberry debuts in Israel The British luxury retailer Burberry opened its first store in Israel, a flagship store, in Tel Aviv, in an around 370 square metre threelevel space on State Square. The store carries the Burberry London and Burberry Brit collections, as well as Burberry childrenswear and accessories.

Ramat Avvi Mall, Tel Aviv

H&M Opening Azrieli Mall, Tel Aviv

282

locationgroup research | Retail Market Study 2012

Dizengoff Centers, Tel Aviv

G Zamerer Mall, Tel Aviv

Azrieli Mall, Tel Aviv

American Eagle Outfitters and Forever 21 new arrivals at Azrieli mall The US clothing chain American Eagle Outfitters will be opening four new stores in 2012 at Azrieli malls, with Fox Group as the franchisee. The stores will range in size from 600 to 700 square metres, and with rents between 55 dollar and 85 dollar per square metre. The Fox Group will be investing up to 1.4 million dollar in each store.

In December 2011, the US young-fashion chain Forever 21 opened a flagship store at Tel Aviv’s Azrieli mall in a split-level around 1 500 square metre space next door to H&M that was formerly home to Toys‘R‘Us and Yotvata Restaurant. Roughly 5 million dollar was invested in this, the label’s first Israeli flagship store.

Alessi and Coccinelle debut at G Zameret Boutique Mall The Italian design factory Alessi opened a new 250 square metre store at G Zameret Boutique Mall on Nissim Aloni Street.

Kosher McDonald’s, Ramat Aviv mall, Tel Aviv

Gerry Weber debuts at Gan Hayir mall The German retailer Gerry Weber made its Israeli debut at the Gan Hayir mall, where the store franchisee will be the Efrati family, who are also the proprietors of a women’s fashion boutique called Iren.

The Tel Aviv flagship store, in which around 142 000 dollar were invested, covers around 110 square metres. Other store openings are planned.

The Italian bag retailer Coccinelle also opened a store (40 square metres) at the new G Zameret Boutique Mall. This is the company’s first Israeli mono-brand outlet.

locationgroup research | Retail Market Study 2012

283

59 Beirut, Rue Verdun – one of Beirut’s most renowned shopping streets .

Beirut Skyline

Hermès Bab Idriss, Beirut

BEIRUT, the capital of Lebanon, is located on the Levant coast in the Eastern Mediterranean, in the centre of Lebanon from a northsouth standpoint. Beirut is Lebanon’s economic and cultural centre, and prior to the 1975–1991 Lebanese civil war was referred to as the “Paris of the Middle East”. The city’s exact population is unknown, as the last census dates back to 1932. The estimated population in 1991 was 1,5 million, and the estimate for 2010 for Beirut and environs is 2 million.

Bottega Veneta President and CEO Yves Carcelle describes Beirut as “a fascinating city that attracts visitors not only from the surrounding countries, but also from all over the world.”

Bottega Veneta debuts in Lebanon In 2010, the Italian luxury retailer Bottega Veneta opened its first Lebanese store in a 135 square metre space on ritzy Allenby Street in the Beirut Souk, in a split-level 270 square metre space. With neighbours such as Hermès and Louis Vuitton, Bottega is in excellent company.

Agent Provocateur and Emilio Pucci on Allenby Street The British luxury lingerie retailer Agent Provocateur opened an around 36 square metre boutique on ritzy Allenby Street, where the Florentine fashion house Emilio Pucci also opened an around 80 square metre store, the company’s first in Beirut, in partnership with the Aishti Group.

Longines debuts at ABC Mall in Achrafieh In the summer of 2011, the Swiss watch company Longines celebrated the opening of its first boutique at ABC Mall in the ritzy Allenby Street shopping district. The new store, which Longines opened in partnership with H. Atamian Est., is a further step in the company’s successful expansion into the Middle East.

The ABC Mall in Beirut’s Achrafieh district is Lebanon’s first mall to be built in European style. The 140,920 square metre mall opened in 2003, and store rents are in the neighbourhood of 1,380 euro per square metre.

The ABC Group invested around 120 dollar in the mall, which hosts brands such as Chanel, Starbucks, and Montblanc.

Allenby Street, Beirut

284

locationgroup research | Retail Market Study 2012

Lanvin shop window

Lanvin, Beirut

Versace and Lanvin debut on Beirut’s Park Avenue The Milan luxury retailer Versace opened its first boutique in Lebanon, a roughly 200 square metre split-level flagship store in Park Avenue’s Berytus Building that carries the entire Versace collection. In the spring of 2011, the French retailer Lanvin opened its first boutique in the Middle East at Palladium 2, which is likewise located on Beirut’s “Park Avenue”, Mina El Hosn.

Alessi moves into Centre Sofil in Achrafieh The design factory Alessi opened its first Beirut store at Centre Sofil in an around 106 square metre space.

The Italian fashion retailer Marni opened a 105 square metre boutique on El Moutran Street in partnership with the Aishti Group.

Rue Verdun – one of Beirut’s most renowned shopping streets Along with Allenby Street and Park Avenue, Rue Verdun is one of Beirut’s most renowned shopping streets, where store rents average around 1,000 euro per square metre and where luxury retailers such as Armani, Christian Dior, Massimo Dutti, Springfield, Mango, Zara and Oysho have outlets.

ABC-Mall Achrafieh, Beirut

Minotti likewise debuts in Lebanon The family-owned Italian company and Mq Group member Minotti opened a new around 700 square metre split-level flagship store in the Achrafieh district’s Ivory Building.

Agent Provocateur Allenby Street, Beirut locationgroup research | Retail Market Study 2012

285

60 Dubai - Rolls Royce’s Spirit of Ecstasy celebrates its centenary .

DUBAI is the capital city of the Dubai Emirate of the United Arab Emirates (UAE), which is located in the Persian Gulf. As Dubai has 1,8 million inhabitants, i.e. 85 % of the UAE’s population, virtually the entirety of the country’s economic, social, cultural and political life unfolds here.

Mall of the Emirates Dubai’s Mall of the Emirates opened in 2005 in a prime location in the heart of New Dubai, where the mall features more than 520 international retailers, including Bottega Veneta, Burberry, Bulgari, Cartier, Christian Louboutin, D&G, Ermenegildo Zegna, and Salvatore Ferragamo.

Louis Vuitton doubles its space at Mall of the Emirates In the interest of strengthening its Middle East presence, in 2011 Louis Vuitton doubled the size of its Mall of the Emirates store. In 1983, Louis Vuitton established itself in the Middle East with the opening of its first store in Kuwait City. The UAE itself has been sharing many common bonds with Louis Vuitton, with its history steeped in Arabic culture and tradition, and a synergy combining heritage and our own expertise in the craftsmanship of leather goods. This year, Louis Vuitton extends its international store in the Middle East at the Mall of the Emirates, a reopening which celebrates LV and Dubai‘s links to the Arabic contemporary art and culture.

The Mall of the Emirates, a worthy sight in its own right, features two 5-star hotels, the renowned Ski Dubai indoor skiing facility, and a massive entertainment centre. The mall had an amazing (and record) 31,3 million visitors in 2010.

Dubai City

286

locationgroup research | Retail Market Study 2012

Jimmy Choo opens new outlet at Mall of the Emirates In May 2011, the Jimmy Choo store at via Rodeo Mall of the Emirates opened its doors officially on the first floor. Extending over 170 square metres, this is the brand’s fourth location in Dubai, joining a freestanding store at Dubai Mall as well as shop-in-shops at Bloomingdale’s Dubai Mall and Harvey Nichols Mall of the Emirates. Originally, the brand entered the region in 2006 with its first UAE store. The Dubai stores, as well as those in Saudi Arabia and Bahrain, are operated by Al Tayer Insignia through an exclusive distribution agreement.

Mall of the Emirates, Dubai

Mall of the Emirates, Dubai locationgroup research | Retail Market Study 2012

287

The “Spirit of Ecstasy” lady celebrating its 100th anniversary The “Spirit of Ecstasy” lady, found on the bonnet of every Rolls-Royce, is celebrating its 100th anniversary. To mark “her” centenary anniversary, Rolls-Royce Motors Cars has created a special set of just 100 vehicles — the Spirit of Ecstasy Centenary Collection. In addition, every vehicle produced during 2011 will feature a unique Spirit of Ecstasy with an engraved commemorative inscription.

This coincided with the opening of the redone Rolls-Royce showroom in Dubai.

To celebrate the opening of the newly-redone Rolls-Royce showroom in Dubai and mark the centenary anniversary of Spirit of Ecstasy, AGMC and Rolls-Royce Motors Cars had an exclusive evening of “art and luxury”.

Louis Vuitton Mall of the Emirates, Dubai

Dubai Mall, largest shopping centre in the world hosts many new retailers Fresh from its first store opening at Mall of the Emirates in September 2010, in July 2011 Christian Louboutin opened a second boutique, twice the size of the first, at Fashion Avenue’s Dubai Mall, which is next door to the Steve McQueen store.

Gucci Dubai Mall

Christian Louboutin opened second boutique in Dubai Famous French designer Christian Louboutin opened a new boutique in Fashion Avenue at the Dubai Mall at the end of July 2011. This is the second Christian Louboutin store in Dubai – the first being the Mall of Emirates store at the Fashion Dome, which opened in September 2010.

The new store at the Dubai Mall is located next to the Steve McQueen boutique and appears to be almost twice the size of the Mall of Emirates location.

Rolls Royce Phantom in front of the Burj Al Arab

288

locationgroup research | Retail Market Study 2012

Baume & Mercier launches new boutique in Dubai Mall Baume & Mercier officially launched its new boutique in Dubai Mall in October 2011. The brand’s sole boutique across the globe underwent extensive redesign to align with the unique new ‘Seaside Living in the Hamptons’ universe, and showcases the new 2011 collections.

Quintessential British men’s outfitters Hackett London Quintessential British men’s outfitters Hackett London opened a brand new store in Dubai. The store is in the Dubai Mall, on the first floor in Fashion Avenue at the bottom of the Burj Khalifa, the tallest building in the world and the centrepiece of the Downtown Dubai district. The total retail selling space will be 160 square metres spread across one floor over four separate selling rooms.

The unit is the first Hackett London store in Dubai. The opening of this shop is in line with Hackett’s approach of opening flagship stores in key cities throughout the world.

Fashion Avenue Dubai Mall

Dubai Mall locationgroup research | Retail Market Study 2012

289

Fashion Avenue Dubai Mall

290

locationgroup research | Retail Market Study 2012

Christian Louboutin Fashion Avenue Dubai Mall

Hackett London Dubai Mall

Marks & Spencers takes over from Ikea In mid-2011, the British retailer Marks & Spencer (a franchise and member of the Al Futtaim Group) took over the 2,790 square metre former Ikea store, which is in a choice location on the mall’s ground floor.

Baume et Mercier Dubai Mall locationgroup research | Retail Market Study 2012

291

61 Abu Dhabi – Mushrif Mall opened with 200 stores .

ABU DHABI is the capital city of the eponymous emirate in the UAE. The centre of Abu Dhabi, which has around 860,000 inhabitants, is located on a 70 square kilometre island in the mangrove belt. On the northwest side of the island facing the open sea is the Corniche, where additional land was created in 2003. In May 2008, Abu Dhabi’s Urban Planning Council issued the urban development plan for the run-up to 2030, after which time an increase in the population of the envisaged Greater Abu Dhabi City to 3 million is planned. Like the neighbouring Emirate of Dubai, the capital city of the UAE is a shoppers’ paradise in a class of its own and offers numerous upscale shopping malls that sell just about anything a shopper’s heart could desire. Malls here spring up like mushrooms, and each one contains hundreds of stores, including numerous prestigious retailers that offer bargain prices.

Abu Dhabi by night

One of the largest of these new venues is Marina Mall, which has 400 stores spread across 100,000 square metres of space and more than a million visitors a year. The mall also features a spectacular view of the Corniche.

Burberry debuts at Marina Mall Burberry opened its first Abu Dhabi Childrenswear boutique at Marina Mall, thus bringing to six the retailer’s fleet of UAE stores, which are located at the following malls: Marina Mall in Abu Dhabi (previously only Burberry women’s wear); Mall of the Emirates, Wafi Mall, Deira City Centre, and Burjuman in Dubai; and a flagship store in Dubai Mall. All of these stores are represented by Burberry Middle East, which is a joint venture with Burberry’s franchise partner of long standing, the Jashanmal Group.

Abu Dhabi Skyline

Marina Mall, Dubai

292

locationgroup research | Retail Market Study 2012

Marks & Spencer expanding Marks & Spencer Al-Futtaim, which is part of the Al-Futtaim Group franchise, opened a store at Marina Mall in an around 30,000 square metre ground floor space. Al Futtaim has an additional 16 outlets in the following malls: Dubai Festival City, Mall of the Emirates Dubai, Deira City Centre Dubai, Dubai Mall, Wafi City Mall in Dubai, Sahara Centre in Sharjah, Fotouh Al Khair Mall in Abu Dhabi, Bawadi Mall in Al Ain, Seef Mall in Bahrain, Landmark Mall in Doha, Villaggio Mall in Doha, Marina Plaza in Kuwait, 360 Degrees Mall in Kuwait, and Dandy Mall in Egypt.

Mushrif Mall opened with 200 stores Mushrif Mall, having delayed the shopping centre‘s launch a number of times, finally opened in summer 2011. The 56,000 square metre mall includes a small indoor water park called Oceanic, and Abu Dhabi‘s largest food court with 20 food outlets and nine specialist restaurants, including a fresh fish market eatery. The shopping mall has more than 200 stores, is targeting the mid-range to premium-shopper segment and aims to have 10 million visitors at the mall in the first year. The shopping centre is being built at a cost of at least 1,2 billion Dirham (326,7 million dollar).

Burberry Children Marina Mall Dubai

Flamenco, Giordano and RBK debut at Mushrif Mall The Spanish women’s apparel retailer Flamenco opened its second flagship store on the second level of Mushrif Mall on 2nd Street in Hadbat Al Zafranah, and is looking to open additional outlets since Abu Dhabi has the highest per capita purchasing power on the Arabian peninsula. Flamenco already has eight European stores, plus an online store and eight shop-in-shops at El Corte Inglés department store.

Hong Kong-based Giordano, which is one of Asia’s largest vertical clothing conglomerates, likewise opted for Mushrif Mall, where the company opened its 200th store worldwide. Giordano has been operating stores in the Middle East for 18 years now, and plans to open 50 new outlets by 2015.

Mushrif Mall Abu Dhabi

Dalma Mall Abu Dhabi locationgroup research | Retail Market Study 2012

293

R.B.K Middle East, the only Reebook representative in the Middle East, opened a 165 square metre store on the second level of Mushrif Mall. This is Reebok’s second flagship store in the region, the first being at Abu Dhabi Mall, where Sharaf DG opened a 30,000 square metre store, the UAE’s largest consumer electronics store. This is an important milestone in Sharaf DG’s expansion in the Middle East, where the company operates 16 stores spread across Dubai, Sharjah and Bahrein.

Originally conceived as a shopping centre for everyone, Dalma Mall flourished and now contains over 500 outlets, restaurants, a food court, family entertainment, cinemas and the biggest carrefour in Abu Dhabi on 150,000 square metres.

Crocs opens seven new outlets The US shoe retailer Crocs opened two new stores in Abu Dhabi in 2011 and now has a total of seven outlets in the UAE. The first of the new stores (97 square metres) is located at Dalma Mall in the Musaffah district, while the second (76 square metres) is located on Airport Road.

Damas and Landmark debut at Dalma Mall In Dalma Mall, the fashion jewellery retailer Damas found the ideal location for its 126th store. In addition, the Mideast’s leading retailer, the Kuwait-based Landmark Group, added the following lifestyle brands to the company’s Home Centre, Centrepoint and Fun City fleet: the fashion, accessories and housewares store Max (2,800 square metres); the Emax consumer electronics store (2,400 square metres); and the Fitness First fitness centre (2,000 square metres).

Abu Dhabi Mall

Abu Dhabi Mall and Al Muhairy Centre Another sizeable mall is the 220,000 square metre Abu Dhabi Mall, which opened in 2001 and hosts 220 stores that rent for around 500 euro per square metre. Prominent retailers with stores at Abu Dhabi Mall include Rolex, Mont Blanc, Mango, Nine West, and Zara. Another exclusive mall is the 35,000 square metre Al Muhairy Centre.

Also of interest In March 2011, Rolls Royce opened its largest dealership worldwide, whose 900 square metre showroom allows for the display of five vehicles in an ultra-classy ambience. In addition, the dealership, which is located in the Um Al Nar district, also features a bar and a luxuriously appointed lounge.

In April 2011, the Italian fashion retailer Prada concluded a joint venture agreement with Al Tayer for the marketing of its luxury products in the Mideast. Al Tayer, one of the region’s most prominent luxury retailers, partners with the likes of Gucci, Dolce & Gabbana, Armani, Boucheron, Coach, and Emilio Pucci.

The biggest Rolls Royce showroom of the world in Abu Dhabi

294

locationgroup research | Retail Market Study 2012

Abu Dhabi Mall locationgroup research | Retail Market Study 2012

295

62 Riyadh - Christian Louboutin opens first Saudi store in Riyadh .

Kingdom Centre, also called Al-Mamlaka Tower, is a skyscraper located in the city of Riyadh, Saudi Arabia. It is currently the second tallest skyscraper in Saudi Arabia with a height of 302,3 metres. AlMamlaka Tower contains a total of 41 floors and 2 basement levels.

Al-Mamlaka Tower is owned by Prince Al-Waleed bin Talal, a prince of the Saudi royal family. The total cost of the project was 400 million dollar and the contract was taken by Saudi Arabian Al-Seif and The Italian Impregilo. Besides the shopping mall, Al-Mamlaka Tower contains the Four Seasons Hotel Riyadh and state-of-the-art apartments.

Riyadh skyline with Kingdom Tower

RIYADH is the capital city of Saudi Arabia and the eponymous province. The city has 4,6 million inhabitants and the province 6 million.

The 94,230 square metre Kingdom Centre is also home to AlMamlaka mall, which is one of Riyadh’s most prestigious shopping venues, whose 161 stores spread across 38,543 square metres on three levels include numerous luxury retailers such as Bottega Veneta, Coach, Gucci, Louis Vuitton, Loewe, Debenhams, and Saks Fifth Avenue. In November 2011, Nespresso opened its first Saudi store here.

Kingdom Center, Riyadh

296

locationgroup research | Retail Market Study 2012

Christian Louboutin opens first Saudi store In June 2011, Christian Louboutin opened a new, around 110 square metre boutique on the second level of Riyadh’s Kingdom Centre.

Victoria’s Secret opened two new stores in the Gulf US lingerie brand Victoria’s Secret opened two new stores in the Gulf by August 2011 as it looks to capitalise on the region’s growing retail market. The glamorous line launched a new boutique in the Kingdom Centre in Saudi Arabia’s capital Riyadh, followed by a store in Bahrain City Centre.

Victoria’s Secret, part of US fashion chain Limited Brands, has seven stores in retail hubs across the Gulf already, including three in Dubai, two in Kuwait and one in Qatar. A spokesperson from franchise partner, Kuwait-based Alshaya, which operates more than 55 international retail concepts and 750 stores in the region, said the firm had further openings in the pipeline, but declined to specify the locations.

Chanel debuts on Al Talhiya Street In May 2011, in partnership with Ali Bin Ali Watches & Jewellery, the French luxury retailer Chanel opened its first Riyadh boutique on Al Talhiya Street in front of Centria Mall.

Kingdom Center, Riyadh

Victoria’s Secret Boutique, Riyadh locationgroup research | Retail Market Study 2012

297

Ermenegildo Zegna opened in Abdulkarim Tower Ermenegildo Zegna officially inaugurated a new flagship store in Riyadh. Located in the prestigious Abdulkarim Tower, Olaya Street, it covers 163 square metres of luxury retail. This is the most exclusive shopping area in Riyadh.

Paris Hilton store opened in Riyadh The opening of the newest Paris Hilton Handbags and Accessories store was a cheerful and definitely a pretty in pink occasion at the end of November 2011.

Gallery Mall Riyadh

Kingdom Center Mall, Riyadh

Gallery Mall Riyadh

298

locationgroup research | Retail Market Study 2012

Inside Zurich.

Living. Design. People. Lifestyle. Culture.

Trail subscription (4 issues) CHF 20.– Phone 044 306 47 00 locationgroup research | Retail Market Study 2012 info@attika-magazin.ch, www.attika-magazin.ch

299

300

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

301

Africa .

Africa is the world‘s second largest and second most populous continent after Asia. At about 30,2 million square kilometres including adjacent islands, it covers 6 % of the Earth‘s total surface area and 20,4 % of the total land area. With 1 billion people in 65 territories (including 54 recognized states), it accounts for about 14,72 % of the world‘s human population.

Cape Town Skyline

302

locationgroup research | Retail Market Study 2012

63 Casablanca, Morocco Mall opened with great success .

With already two stores in Morocco offering a wide range of items, Fendi opened a new 324 square metre store in the Morocco Mall.

Fendi and Gucci are both operated in franchising by the largest local fashion retailer, the Aksal Group which is also the co-owner and developer of the Morocco Mall.

American Eagle Outfitters opening in three new international markets American Eagle Outfitters opened in Morocco, Jordan and Egypt in 2011. Morocco’s store opened in Casablanca at Morocco Mall on 1st December.

La Martina, Starbucks, Gap and Elisabetta Franchi The Argentinean retailer La Martina, which was originally known as a polo team jersey supplier, opened its 56th store worldwide at Morocco Mall, where, needless to say, Starbucks is also on hand (two stores). Gap has concluded a new franchise agreement with the Aksal Group calling for the opening of two new Gap stores at Morocco Mall on the day of the mall’s official opening.

Casablanca

CASABLANCA, Morocco’s largest city, is located south of the capital city of Rabat on the Atlantic coast. The city has 3,3 million inhabitants. Four kilometres southwest of the harbour along Boulevard de la Corniche is the suburb of Ain Diab, a luxurious beachfront resort.

In December 2011, Elisabetta Franchi opened a 70 square metre store at Morocco Mall. The Italian designers’ women’s fashions are aimed at self-confident women and are made of extremely highquality fabrics.

Galeries Lafayette at Morocco Mall In 2008, Galeries Lafayette and Group Aksal signed an agreement for the implementation of Galeries Lafayette in the Morocco Mall.

The agreement was concluded in the form of an “exclusive franchise” on the Moroccan territory. Galeries Lafayette had chosen to set up a store of 13,000 square metres on three levels, creating

Almost the entire Casablanca waterfront is under development, mainly the construction of huge entertainment centres between the port and Hassan II Mosque, the Anfa Resort project near the business, entertainment and living centre of Megarama, the shopping and entertainment complex of Morocco Mall, as well as a complete renovation of the coastal walkway. The Sindbad park is planned to be totally renewed with rides, games and entertainment services.

Morocco Mall opens with great success The Morocco Mall just opened a few months ago, in early December 2011. There was about a 200 million euro investment that has been dedicated for this mega-project. Works at the largest shopping centre in North Africa began in 2007.

Over 70 luxury brands including American Eagle, Cartier, Louis Vuitton, Dolce & Gabbana, Fendi, Gap, Givenchy, Gucci, Versace, Yves Saint Laurent, and other international retailers opened its doors.

Morocco Mall in Casablanca from top locationgroup research | Retail Market Study 2012

303

Morocco Mall Casablanca

about 400 direct jobs, with an investment of 130 million DH (12 million euro).

Galeries Lafayette in Casablanca will be “a copy of the flagship store ‘Haussmann’ in Paris,” says one side of the group. The company is expected to attract 3 million visitors a year to discover the 500 brands that will be on sale. Market research and feasibility studies relating to this return took nearly a year. Not to mention that Galeries Lafayette have more than 3,500 brands and a clientele composed of 70 % women with 4 % from North Africa. Morocco is thus part of the top 10 customers of the trademark abroad.

Morocco Mall Casablanca

Louis Vuitton Morocco Mall, Casablanca

304

locationgroup research | Retail Market Study 2012

64 Marrakech with American Eagle debut The south-western Moroccan city of MARRAKECH (population: 920,000) is known as the “pearl of the south” and is the capital of the eponymous province.

Inside the Almazar Marrakech Megamall, there are several main areas: a central distribution area, a household equipment area, services and leisure areas and an area for restaurants.

Marrakech is a Berber word that is thought to mean “God’s country”, although another explanation from the Tinfinagh Berber language is that it may mean (in French)” terre de parcours” or “land of pathways”. The country name, Morocco, is derived from the city name, Marrakech.

The second of its kind in Morocco after Rabat Megamall, the Almazar project is supported by the important people working in fields of commercial real estate in Morocco and abroad. The main property developer is ‘Best Real Estate’ (BRE) and HH Henry Hermand, an emblematic figure of shopping centers in France. It is served by the creative genius of architects and designers reference (L35 Arquitectos, Minale Design Strategy).

Almazar Mall (Zone de l’Aguedal) The Marrakech Shopping Mall Almazar is built over 100,000 square metres with 30,000 square metres of retail space on 3 levels. This project will host 100 brand stores, 20 restaurants, a food court of 20 stores and 4 restaurants, a crossroads of 6,000 square metres, a recreation area for children and parking with a capacity of 1,200 spaces spread over 2 different floors with a total area of 36,000 square metres.

The total investment for this project is approximately 500 million dirhams (45 million euro) according to a chief executive of BRE. In his opinion, this project symbolises a new stage in regional economic development.

Marrakesch Skyline locationgroup research | Retail Market Study 2012

305

Louis Vuitton Corner Avenue Haroun Rachid and rue Du Temple, Marrakesch

Almazar Mall Marrakesch

Atlas store opened on 7,000 square metres The new Atlas store represents an HYIP investment of 45 million dirhams (4 million euro) with over 7,000 square metres of selling space for furniture and decorative items. The French group has chosen to partner with the distribution and logistics group Holmarcom. The new store was inaugurated in May 2011. The next step will be Casablanca. Its store will be bigger than that in Marrakech.

Newcomer of the year American Eagle Outfitters announced the opening of stores in three new international markets –Morocco, Jordan and Egypt.

Almazar Mall Marrakesch

306

locationgroup research | Retail Market Study 2012

65 Algier with new Lacoste and Starbucks stores .

Algeria’s capital city ALGIER is the country’s largest city and also gave Algeria its name.

Algiers has a population of 2,2 million, while the province of Algiers with its 58 cities and towns has 3,5 million inhabitants. Metropolitan Algiers, which extends far beyond the borders of the province, has 6,3 million inhabitants. Rue Didouche Mourad is one of Algiers’ most important shopping streets.

Centre Commercial Bab Ezzouar The Centre Commercial Bab Ezzouar is a Shopping Mall in Algeria. It is currently owned SCCA (Société des Centres Commerciaux d‘Algérie SpA) and has 60,000 square metre sales and leisure activities floor space on three floors, including a 7,000 square metre hypermarket.

Lacoste opened in the Centre Commercial Bab Ezzouar Omega distribution, exclusive distributor of Lacoste in Tunisia and Libya, opened its first shop of the crocodile brand in Algiers at the mall of Bab Ezzouar, in September 2010. The store has a new space of 125 square metres.

On the 4th August, 2010, well-known luggage brand Samsonite opened its doors in Algeria. Its new store is located inside the shopping centre Bab Ezzouar in the national capital Algiers.

At the beginning of October 2010, a new Make-up Studio boutique was opened in Bab Ezzouar. The boutique is the only make-up store in the shopping centre and was furnished in typical Make-up Studio style.

Le Tanneur opens new location The Paris retailer Le Tanneur opened a new store at the new Bab Ezzouar shopping mall in late September 2011. The Le Tanneur franchise system comprises 60 to 100 square metre stores that carry luxury leather goods.

Algier by night

Mobilier de France opened its first store in June in Algeria The world furniture leader, Mobilier de France, opened its first store in Algeria last year. The French brand has chosen to settle in Dely Ibrahim, a suburb of the city of Algiers in northern Algeria.

There will be more openings in Algeria in several provinces, namely, Oran, Annaba, Blida, Setif, Bejaia.

Swiss investors venture into Algeria’s retail sector Swiss investors unveiled Algeria‘s first Western-style shopping mall recently, a 70-million-euro project that marks the first major foray by foreigners into the energy exporters‘ untapped retail market.

Algeria has 35 million people and one of the highest levels of income per capita in Africa, but international retailers have been put off by curbs on foreign investment and a conflict between government forces and Islamist rebels.

A joint venture of Swiss banking group Valartis and Swiss department store operator Jelmoli financed the shopping mall, recreation and office complex in the Algerian capital and stated that two more projects worth 80 million euro are planned.

Le Tanneur, which currently has around 60 stores spread across France, Germany, Belgium, Luxembourg and Algeria, is planning up to ten new franchise store openings annually.

Starbucks plans to come to Algeria in 2012 The world‘s Number 1 specialty coffee retailer, Starbucks, has more than 17,000 coffee shops in about 40 countries. The company also owns the Seattle‘s Best Coffee and Torrefazione Italia coffee brands.

Starbucks is planning to open its third African location, after Egypt and South Africa, in Algeria. A partnership with Algerian food company Cevital will result in Starbucks first Algerian store at the end of 2012.

Centre Commercial Bab Ezzouar locationgroup research | Retail Market Study 2012

307

66 Cairo, American Eagle, Gap and Marks & Spencer debut .

Egypt’s capital city of CAIRO is the Arab world’s largest city Further, Cairo is the political, economic and cultural centre of Egypt and the Arab world. Its old town contains a wealth of Islamic architecture and was named a UNESCO World Cultural Heritage Site in 1979.

Cairo has a population of 7,9 million within the city limits, and around 16,2 million in the greater Cairo area – the second largest in Africa after Lagos, Nigeria. However, as Egyptians are not required to register, these population figures are based on census figures, and unofficial estimates put the population of greater Cairo at up to 25 million, which would represent nearly a third of Egypt’s entire population.

Egypt crisis has dramatic effects on luxury market The current ongoing turmoil in Egypt has brought a complete halt to the country‘s feeble luxury market. Stores such as Burberry, Ferragamo (inaugurated Fall 2010) have remained closed since the debut of the crisis. Despite remaining open, jewellery and watch stores within Hyatt and Four Seasons hotels as well as the leading multi-brand stores Ego and Beymen have seen a drop of 70 % in sales and their forcast remains gloomy for the rest of the month.

City Stars, the largest shopping mall in Cairo has seen its traffic decrease by 30 % as people prefer to remain at home.

Cairo City

308

locationgroup research | Retail Market Study 2012

Nasr City is Cairo’s mall district Nasr City is regarded as Cairo’s mall district because most of the famous malls locate in that area including Tiba Mall, City Center, Genena Mall and many other shopping centres Nasr City malls are quite more successful than the malls ashore the Nile because these malls are presenting local brand and international brands’ products in a price range that the middle and lower middle class can afford too. On the other hand, the number of people who visit splendorous malls such as Arcadia is decreasing because it is presenting products that only the upper class can afford.

Stars Centre is the retail and leisure component of the City Stars complex and provides a unique shopping and entertainment experience in the Middle East. The shopping centre with its 643 stores houses world-renowned brand names. Stars Centre is also accompanied by 2 indoor theme parks, a 21 state-of-the-art screen cinema complex, as well as diverse dining choices. Khan El-Khalili Treasures and a 20,000 square metre exhibition area was built to international standards.

Traffic in Cairo

City Stars is one of the recently constructed multi-purpose malls in Cairo that achieved a renowned fame throughout Egypt. It stands as a three story building with numerous shops enclosing all and every good local and international brands such as Dalydress, BTM, Mango and Esprit and many others. Presenting plenty of international brands at good prices attract more tourists shopping in city centre than any other mall in Cairo.

Major UK retailer opening new stores in Egypt Major UK retailer Marks & Spencer has plans to open 3 new stores in Egypt as part of their expansion into the Middle East.

The first store in Egypt was opened at the Dandy Mega Mall in Cairo with a VIP ribbon-cutting ceremony and shopping event to mark the occasion. The 2,600 square metre store will provide stylish, high quality, great value clothing and home products to Egyptian consumers.

City Stars Mall, Cairo

The company will press ahead with the opening of its second Cairo store, despite recent widespread political unrest in the Arab country. Other stores are planned in various locations around Cairo; most notably their flagship store scheduled to open in 2012 in Cairo Festival City shopping center on two floors of 4,500 square metres.

Gap comes to Egypt As part of its global expansion strategy, Gap opened its first Gap store in Egypt in the newly built Mall of Arabia and its first Gap and Banana Republic stores in Morocco in October 2011. The stores’ openings mark the company’s first entry into Africa.

American Eagle Outfitters arrives in Cairo‘s Citystars American Eagle Outfitters is located almost next to H&M in the mall’s Phase 2. The basic concept of American Eagle is to provide quality goods at reasonable prices. Their trademark style is that of trendy yet comfortable clothing.

Marks & Spencer, Cairo locationgroup research | Retail Market Study 2012

309

7 new openings for Azadea Group in Cairo‘s City Stars One of the leading fashion and lifestyle retail companies in the Middle East and North Africa is expanding its retail network in Cairo and added seven new stores to its Egyptian portfolio in Cairo‘s renowned City Stars complex.

The most famous shopping center: Talaat Harb mall Talaat Harb mall is the most famous and most visited shopping center in Cairo. One of the factors for attracting both Egyptians and foreigners alike to this market is presenting fashionable shoes, clothes, cotton works, and leather products at good prices.

Following Zara‘s successful opening in June of last year at City Stars, the dynamic group has engaged in the task of expanding in Cairo by opening, a panoply of outlets for several of their brands. In fact, Zara Home, Uterqüe, Massimo Dutti, Stradivarius, Pull & Bear, Bershka and Sunglass Hut opened their doors one after the other to the Egyptian public.

Metro Cash & Carry With the opening of its first store in Cairo under the brand name Makro, the wholesaler Metro Cash & Carry continues its successful international expansion strategy. The store near Cairo was opened in June 2010. Egypt is listed as the 31st country within the company’s ever growing network represented by over 670 selfservice wholesale stores around the world.

The Arkadia Mall burned down during the revolution Arcadia shopping mall at Corniche el-Nil, Bulaq, in Cairo was one of the modern shopping centres where consumers could find a wide range of international products in more than 500 stores. It lies in El Tahrir square on the shore of the Nile River, few metres away from Conrad International Hotel and the World Trade center in Boulaq Abou El Ela.

The first Egyptian Metro Cash & Carry wholesale store located in El Salam City near the capital offers a 7 000 square metre selling space and a wide assortment of about 20 000 articles.

City Stars Mall, Cairo

310

locationgroup research | Retail Market Study 2012

El Salam City

Arcadia Shopping Mall, Cairo locationgroup research | Retail Market Study 2012

311

67 Accra, Accra Mall West Africa’s most modern shopping mall .

ACCRA is the capital city of Ghana, and with two million inhabitants is also the country’s largest city, its economic centre, and the seat of government. Like many cities on the coast of Ghana, Accra is furthermore the anchor of a larger metropolitan area, the Greater Accra Metropolitan Area (GAMA), which is home to about 4 million people, making it the largest metropolitan conglomeration in Ghana by population, and the eleventh-largest metropolitan area in Africa.

Accra Skyline

Street Scene Accra

312

locationgroup research | Retail Market Study 2012

The central business district of Accra contains the city‘s main banks and department stores, the Cocoa Marketing Board headquarters (dealing with cocoa, Ghana‘s chief export) and an area known as the Ministries, where Ghana‘s government administration is concentrated.

Accra Mall one of the most modern Shopping Malls in West Africa The Accra Mall is one of the most modern shopping malls in West Africa. It is on Spintex Road near the Tetteh Quarshie Interchange in Accra, and is the first large-scale shopping centre in Ghana, comparable to other similar sized malls anywhere in the world.

Accra Mall, Accra

Accra Mall was officially opened in July 2008 by the Actis Africa Real Estate Fund, and is Ghana’s first and only Grade-A shopping mall. It consists of 19,000 square metres of lettable space and has parking for 800 cars. Construction of the mall took two years and at the peak of construction over 700 people worked on the development.

Kempinski Hotel, Accra

McDonald’s Premiere, Kotoka International Airport locationgroup research | Retail Market Study 2012

313

The mall is 99 % let with 69 retailers like Mr. Price, Nike, Puma, Sony, Swatch and Vodafone, including major banks, pharmacies, a large department store and a cinema. Investment in shopping centres can have significant positive social and economic impacts, both direct and indirect. Businesses in Accra Mall generated an estimated 4,5 million dollar in sales tax for the Ghanaian government. It is projected that taxes, rates and fees of 60 million dollar will be accrued from retail tenants over a ten year period.

The Kempinski Hotel Gold Coast City is expected to cater primarily to the business segment Kempinski‘s first project in Accra will be located on the former racecourse site in the heart of the city. The Kempinski Hotel Gold Coast City is expected to cater primarily to the business segment and will boast the largest rooms in the city. The hotel is set to be the centrepiece of a public-private partnership project with integrated mixed-use hospitality facility, “Gold Coast City”, which covers an area of some 35 acres and would include residential apartments, retail space, an exhibition centre, offices and government buildings.

The Kempinski Hotel Gold Coast City will have 267 rooms, including 17 luxury suites and 2 presidential suites. The hotel will include four restaurants offering a range of international cuisines, two bars, indoor and outdoor swimming pools, spa and fitness centre, tennis and squash courts, as well as shopping facilities. The hotel will have over 1,500 square metres of conference and banqueting space including modern meeting rooms boasting state-of-the-art audio-visual technology, a fully-equipped business centre and business lounge.

The hotel is adjacent to the Accra International Conference Center, ministry buildings, the State House, the National Theatre, the Accra Sports Stadium and various commercial office towers.

McDonald’s arrives in Ghana McDonald’s, the world’s largest chain of hamburger, fast food restaurants, serving more than 58 million customers daily, in 119 countries, opened up branches in Ghana by early 2011. They are looking for free retail spaces at popular places in Accra such as the Kotoka International Airport (KIA), Osu, Spintex road and the Accra Mall.

Brand New KFC in Accra Ghana It has been circulating within the online Ghanaian community for around 2 years, that Kentucky Fried Chicken (KFC) is on its way to Ghana. In August 2011, they have officially launched its first flagship restaurant at Osu in Accra.

The coffee shop/restaurant Dulce Café operating in South Africa, has also opened new coffee shops in Ghana.

The first Dulce retail store opened on Rink Street in Port Elizabeth, in the year 1984. Dulce Café is expanding and currently launching an ambitious expansion of the franchise chain into Saudi Arabia, Ghana, Nigeria, Tanzania, Botswana and Angola.

KFC, Accra

314

locationgroup research | Retail Market Study 2012

68 Lagos, Gildo Zegna’s eyes on Nigeria as emerging market .

LAGOS is Nigeria’s largest city and until 1991 was the nation’s capital. With 9,7 million inhabitants, Lagos, along with Cairo and Kinshasa, counts as one of the most populous cities in Africa and in the world. The greater Lagos area, which extends beyond the federal state of Lagos and into parts of Ogun, has 13,1 million inhabitants. Abuja has been the new capital of Nigeria since 1991.

Nigerian market opens up for clothing retailers Nigeria’s decision to lift a ban on imported textiles is opening up many opportunities for foreign clothing retailers. Nigeria originally imposed the ban in 2003 to stimulate domestic production. This, however, only led to the smuggling of cheap clothing from Asia. Local manufacturers have also struggled because the country’s poor power supply forces them to run their operations on expensive generators.

The Nigerian government last year announced that it will lift the ban and introduce import tariffs. These tariffs were originally reported to be between 10 % and 20 %, but according to some sources the effective rate is much higher.

“The recent lifting of the textile importation ban in Nigeria has sharply expanded the scope of international retailers that are able to trade in Nigeria,” says Michael Chu’di Ejekam, director of Actis West Africa’s real estate division. Actis developed Nigeria’s first modern shopping mall, The Palms in Lagos, and its second facility, the Ikeja City Mall, is set for completion in 2012. Ejekam expects the lifting of the ban to increase the demand for retail space in Nigeria.

Lagos City Center locationgroup research | Retail Market Study 2012

315

Gildo Zegna’s eyes on Nigeria as emerging market In a recent interview to the Financial Times, Gildo Zegna, CEO of Ermenegildo Zegna, mentioned the African countries of Nigeria and Angola as the next luxury emerging markets with many of those nationals shopping as tourists in Europe. This comes as a surprise, since all major international luxury fashion brands target expansion in India and South America.

Nigeria has a number of new modern shopping malls in various stages of development. These include the Ikeja City Mall in Lagos, the Polo Park Mall in Enugu State and a planned shopping centre in Ilorin, Kwara State. Current facilities include The Palms in Lagos, the Tinapa Shopping Centre in Cross River State and the Ceddi Plaza in Abuja, to name a few.

Traffic in Lagos

Woolworths and Etam consider to enter Nigeria According to a Bloomberg report, another South African food and clothing retailer, Woolworths Holdings, is also considering opportunities in Nigeria. In addition, European women fashion group Etam’s outlet in Lagos is set to open soon.

The Palms shopping mall attracts international retailers The Palms Shopping Mall is located on a 45 000 square metre plot of land in Lekki Peninsula, in Lagos, Nigeria. It has 21 000 square metres of lettable retail space. The mall was built on swampland that was reclaimed by the government recently and construction was commissioned by the Oba of Lagos and President Obasanjo.

The mall, which opened in early 2006, has 69 stores and a modern six screen cinema. There is parking space for about a 1 000 cars.

The space accommodates over 60 shops including the international brands as Apple, Converse, KFC, Levis, Mango, Nike, Swatch and a Sony Center.

The Palms Shopping Mall is the largest and first of its kind in Nigeria. The mall is owned by Persianas Properties Limited, part of the Persianas Group, promoted by Nigerian businessman Tayo Amusan, a Nigerian property developer. The Persianas Group is also developing similar shopping malls in Enugu, like the Polo Park Mall, and in Kwara the Kwara Mall – which started at the end of 2011.

Several other projects are also underway in other parts of Nigeria.

Mango & Etam opened first store at The Palms The Nigerian retail sector is expanding and with the buying power of the Nigerian populace on the rise, the foreign fashion conglomerates are taking note and seeking to enter potentially lucrative market.

Mango has successfully operated in Nigeria for over a year and now European lingerie brand Etam is opening its first Nigerian store in Lagos, situated at The Palms Mall in Lekki, Lagos. Etam recently made a big splash during Paris Haute Couture Fashion Week in January 2011.

The brand hosted a huge lingerie catwalk show which featured supermodels including Karolina Kurkova in saucy lingerie. Let’s see, if the brand is able to cause a similar sensation in Lagos.

Mango Shopperin Palms

316

locationgroup research | Retail Market Study 2012

Ikeja Shopping Mall with new international retailers The opening of the 100 million dollar Ikeja City Mall brings international retail and leisure facilities to Lagos. The mall is a world class retail and leisure development initiated by Actis three years ago and comprising 27,000 square metres of gross built area and 23,000 square metres of lettable area.

The space accommodates nearly 100 shops including Shoprite’s latest generation store of over 4 400 square metres, KFC, Mr. Price, Twice as Nice, Nike and Aldo.

The design of the mall incorporates informal meeting places, a food hall and a five screen Silverbird cinema.

Polo Park Mall Rendering

Mr. Price will open stores in Nigeria South African clothing retailer Mr Price has indicated that it is interested in opening up stores in Nigeria. The company already has operations in other African countries but sees Nigeria as the first prize. Business Day quoted Mr Price chairman Alistair McArthur saying that “the big one we need to open up is Nigeria”. He added that Nigeria’s population of more than 154 million could support 50 to 100 stores.

Retrospective with Nigeria debut Retrospective brings its first boutique to Lagos. Taking pride of place as the first vintage in store shopping experience in Nigeria, the boutique located in the centre of Lagos Surulere – Ceddi Plaza, Abuja home to the National Stadium and Nollywood – houses one of a kind, retro and vintage accessories and clothing for men and women, giving all who step through its doors a unique walk down memory lane.

Tinapa Shopping Centre The close proximity of Tinapa to the manufacturing based Calabar Free Trade Zone as well as the Calabar Sea and Air Ports, presents opportunities for manufacturers, retailers and wholesalers to expand their activities due to increased trade.

locationgroup research | Retail Market Study 2012

Its location off the main highway into the city of Calabar, means that visitors from other parts of Nigeria and the neighbouring countries can access Tinapa easily without going through the increasing traffic at the city centre. What’s more, the Cross River State Government, initial promoter of the Zone, has executed a loan agreement for the construction of a monorail connecting Tinapa to the airport to further improve accessibility.

317

The Tinapa Shopping Centre presents the inspired and discerning shopper with a bouquet of product offers from her 54 quality retail outlets and four huge emporia each of which is about 10,000 square metres.

Ceddi Plaza in Abuja Ceddi Plaza is made up of 55 specialty shops, offices & service providers consisting of movie theaters, a bookstore, champagne lounge, the Atrium @ Ceddi Plaza, restaurants, cafes, fashion boutiques, shoes, accessories, and home interior design stores, furnishings, health & beauty salons, gift shops, telephones, banking and ATMs, dry cleaning services, a dental office, a pharmacy, a photo studio, children‘s entertainment, an event hall and much more.

Ceddi Plaza is owned by Ceddi Corporation and is located in the Central Business Area of Abuja. The Plaza consists of 10,000 square metres of retail and office space.

Polo Park Mall Polo Park Mall is situated on the Polo Park Grounds in the city of Enugu, Enugu State. The mall is developed by Polo Park Development Company, a private-public-partnership between the Enugu State Government and Persianas Group, the developers and owners of The Palms Shopping Mall, Lagos – Nigeria‘s premier shopping mall.

This initiative aims to propel Enugu State towards achieving a mega city status and to provide employment for its citizens and thereby giving residents a modern shopping experience.

Shoppers are able to browse, walk around at leisure and make purchases in a serene, clean environment complete with state-ofthe-art facilities. The mall will be home to a variety of shops ran-

ging from cosmetics, food items to electronics. There will also be a food court packed with some of the biggest food chains. The big opening was in September 2011.

Samsung Electronics opened first shop in Nigeria In order to avert its products from being pirated as well as distancing itself from substandard products, Samsung Electronics West Africa (SEWA) in conjunction with Crista Digital Limited recently opened the first one-stop technology shop in Nigeria, which is branded as Samsung IT Plus .

According to Samsung, the shop, located at Sanusi Fafunwa Street, Victoria Island, Lagos, is the flagship of SEWA IT products outlet in Nigeria, established to simplify individuals’ and businesses‘ information technology procedures. Samsung Electronics West Africa (SEWA) has partnered with Crista Digital Limited, and launched the first Samsung IT Plus shop in Nigeria in December 2011.

Woolworths will launch 3 more retail stores in Nigeria Just weeks after announcing the opening of stores in Uganda and Tanzania in 2011, Woolworths said it would add three more stores to its growing African portfolio in Nigeria.

Woolworths’ latest joint venture with listed Nigerian company Chellarams saw three store openings in December 2011 and seven more are to follow over the next two years. Two stores opened in Lagos, one at The Palms and the other at Ikeja. The third will open in Polo Park in Enugu State in Nigeria.

Walmart will open more stores in Nigeria Walmart, America’s foremost low-price merchandise retail store, is planning to open two stores in Nigeria soon.The company’s plan to open stores in Nigeria is part of the strategy of its leadership team.

Ceddi Plaza, Abuja

318

locationgroup research | Retail Market Study 2012

69 Johannesburg, new expansion at Sandton City Nelson Mandela Mall .

JOHANNESBURG is the capital of South Africa’s Gauteng province, and with 3,9 million inhabitants is also South Africa’s most populous city, as well as its most populous conurbation with nearly 8 million inhabitants. The capital city of South Africa is Pretoria, which is around 50 kilometres to the north.

The largest shopping mall in Johannesburg is Nelson Mandela Square at Sandton City (Sandton City for short). The city’s other well-known malls are Eastgate, Westgate, Northgate, Southgate, Melrose Arch, Rosebank Mall, and Cresta. A 250,000 square metre mall in Midrand is currently planned that will be called Zonk’Izizwe Shopping Resort (Zonk’Izizwe is Zulu for “all peoples”).

New expansion at Sandton City Sandton is a wealthy area situated within the metro of Johannesburg, Gauteng. The name comes from the combination of two of its suburbs, Sandown and Bryanston. The Sandton area is one of the most opulent in Johannesburg and South Africa, and therefore in Africa, but not far away (only about 6 kilometres) from Alexandra, one of the poorest former black townships. Sandton covers Johannesburg Downtown

Skyline Johannesburg locationgroup research | Retail Market Study 2012

319

Its owners, Liberty Properties (75 %) and Pareto Limited (25 %), say specialised retailer groups opening stores in this phase will add unprecedented sparkle to South Africa’s leading fashion destination. The iconic Sandton City opend its doors, with a new look while unveiling new international retail brands to offer shoppers only the best money can buy.

Zara opened one of the biggest shops in the World Zara, the leading chain of Spanish textiles group Inditex, is forging ahead in the global market. The Spanish brand is now making its South African debut in the new Sandton City mall in the capital Johannesburg. The location is said to be one of its biggest shops in the world. With an area of 2,700 square metres, it has collections for men, women and children especially designed for the climate of this country in the southern hemisphere.

Sandton City, Johannesburg

an area of approximately 156 square kilometres while Alexandra is just over 8 square kilometres. It is estimated that the population of Alexandra is the same as that of Sandton itself.

The new expansion at Sandton City opened in November 2011. The entrance 12 facing onto Rivonia Road is within walking distance of the new Gautrain station and the area will include a Piazza for those who enjoy the atmosphere of bustling street cafes.

New Ferrari store in Johannesburg In June 2010, Ferrari celebrated the opening of its latest official store, located in Sandton City in the Nelson Mandela Mall. The branch is the second to be established in South Africa‘s second largest city, with a shop already located at its International Airport. The latest Ferrari store, which offers local fans the chance to purchase official team items, boasts over 100 square metres.

The Johannesburg Ferrari store joins others in numerous recognised cities such as London, Barcelona, San Francisco, Miami, Kiev, Dubai, Rome, Milan and Venice.

Sandton City Shopping Mall, Johannesburg

320

locationgroup research | Retail Market Study 2012

Guess and Paul & Shark with South Africa . debuts Retailer Busby Group with 13 stores in Sandton City will extend its presence with the introduction of a new concept Guess accessory store. International retailer, Surtee Group debuts into Sandton City and Africa with the opening of the Italian luxury brand Paul & Shark.

Liberty Properties say, the new 120 square metre shop is being designed and manufactured in Naples and flown to South Africa.

Serial shoppers who have visited Paul & Shark’s store in Milan on Via Montenapoleone will be happy to know the Sandton City store will be identical to the one in Italy.

New Sarah Pacini outlet to open in Johannesburg Some two decades ago, Sara Pacini caught the attention of women worldwide with her distinctive and innovative style. She is known for the unique way she combines knitwear, fabrics, and colour to create ultra-feminine collections.

For its expansion into Africa, the company decided to open a store, in July 2011, at the well-known Hyde Park mall on Johannesburg’s Jan Smuts Avenue. Sarah Pacini has 55 exclusive boutiques worldwide and plans to open additional outlets, likewise worldwide.

Ferrari store, Sandton City

Other new retailers Other retailers opening stores in the new phase include Hugo, Steve Madden, Ben Sherman, Hackett, Jack Friedman, Tag Heuer, Bellagio, Pandora, Democratic Republic, Zui, Okaidi, Nespresso, Lecoqsportif, Lulu Belle, G-Star, Crossover, Shesha, Tiger of Sweden,

Zara Flagship Store Sandton City Shopping Mall, Johannesburg locationgroup research | Retail Market Study 2012

321

Kingsley Heath, Superdri, Sack’s, Maska, Fossil, Zarra, Aeronautica, Adidas, Superga, Canterbury, the first free-standing Thomas Sabo store in South Africa, Lorna Jane, Drifters, Ordning and Reda, Simply Manas, le Creuset and Kitchen Passion.

Sandtons City Facts & Figures The newly-built retail space measures 30,000 square metres. The expansion will add a further 69 stores to Sandton City, bringing the number of stores to 360. Sandton City’s entire retail space will total 143,690 square metres on completion of this phase, taking the complex, which includes the hotel and office component, to 215,000 square metres.

Samsung opened in Clearwater Mall November 2011 marked the opening of the first Samsung brand store for Johannesburg in the Clearwater Mall with a retail space of 300 square metres. This is the sixth brand store in South Africa, after I‘Langa Mall in Nelspruit that opened in October 2011.

Walmart, Massmart plan 2012 opening of 40 new South African stores Walmart, the US-based discount department and warehouse stores chain, plans to open nearly 40 new stores by 2012, and create 15,000 new jobs in South Africa within the next five years in collaboration with Johannesburg-based retailer Massmart.

Walmart recently acquired Massmart for 2,4 billion dollar .It now plans to invest an additional 8,7 billion dollar on the new store openings, as well as the purchase of food and fast-moving consumer goods (most of which it plans to source from local suppliers).

The Pretoria-based Competition Tribunal has stated that both companies must ensure that there are no job cuts for two years.

They must also ensure that existing labour agreements are honoured for three years after the purchase. The tribunal further stated that the merger was valid only if a 14,46 million dollar supplier development fund was established by both retailers.

Clearwater Mall, Johannesburg

322

locationgroup research | Retail Market Study 2012

70 Capetown’s Canal Walk: The largest shopping mall in the southern hemisphere .

CAPETOWN, South Africa’s third largest city after Johannesburg and Durban, extends over a 2,455 square metre area and has 3,4 million inhabitants. The city is named after the Cape of Good Hope, which is around 45 kilometres to the south and used to be an extremely hazardous area for ships voyaging to India.

Victoria & Alfred Waterfront mall Capetown and its suburbs have numerous shopping malls such as the Victoria & Alfred Waterfront mall which, as the name implies, is located near the harbour. The mall, which was built on part of the Port of Cape Town docks, is the city‘s most visited tourist attraction. Part of the charm of the V&A, as it is known locally, is that the port is still in operation and visitors can watch ships arrive and depart.

The Victoria & Alfred Waterfront development is a renewal project that incorporates much of the historic harbour infrastructure. The whole complex is managed by a private company owned by Transnet.

Victoria & Alfred Waterfront Shopping Center, Cape Town

Cape Town Skyline locationgroup research | Retail Market Study 2012

323

An international consortium of Dubai World and London & Regional Properties acquired the development in 2006 at a record value in South African terms of 7,4 billion rand (711 million euro). They sold the completed attraction to South African owners Growthpoint, the country‘s largest property company, and the Public Investment Corporation in 2011.

Century City development of 960 million euro Century City is a 250 ha suburb of Cape Town, that was constructed as a mixed use development including entertainment, residential, retail and office components. Development began under Monex Development in 1997 and continues under the new owners, Rabie Property Group. Investment thus far exceeds 10 billion rand (960 million euro). It is located 10 kilometres to the north-east of central Cape Town along the N1 motorway and is traversed by numerous waterways, wetlands and canals.

Capetown’s Canal Walk: The largest shopping mall in the Southern Hemisphere Canal Walk was the largest shopping mall in Africa and the Southern Hemisphere in lettable area when it was opened in December 2000. Currently, the 141,000 square metre mall contains over 400 stores, 20 movie theatres, many restaurants and bars and an entertainment section. Architecturally, it was designed with the “Cape Venetian” style in mind. Canal Walk is the 3rd largest shopping centre in Africa (Gateway Centre in Durban is the largest).

Canal Walk Shopping Center, Cape Town

Port Cape Town

324

locationgroup research | Retail Market Study 2012

Lamborghini Aventatdor, Cape Town

UU opened in Kloof Street Unknown Union (UU) is more than a clothing shop. In March 2011, the brand opened its first South African store on Kloof Street.

With interiors designed by globally recognised, New York-based architectural designer Rafael de Cardenas and curated by a dynamic team of international music, design and fashion players, it represents a collective of global creativity that is set to make itself a fresh and important part of Cape Town‘s urban, cultural scene.

Lamborghini opens two dealerships in South Africa Lamborghini has opened two dealerships in South Africa, one in Capetown and the other in Johannesburg. Both are run by Pearl

Automotive, which is Lamborghini’s new partner in South Africa.

Both dealers showcased the Lamborghini Aventador LP 700-4 at the 2011 Geneva Auto Show, where the new model was unveiled.

LG Electronics opens first South African store LG Electronics, the Seoul-based South African subsidiary of the LG Group, opened its first store in Cape Town in December 2011.

The store is part of its plan to capture the growing organised retail market through a chain of exclusive shops across the country. It will be opening three more such shops in the next six months in Botswana, Mauritius and Mozambique, with an overall goal to open 1,000 stores across Africa in the next two year.

Lamborghinis Aventatdor, Cape Town locationgroup research | Retail Market Study 2012

325

326

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

327

Asia .

With its around 44,6 million square kilometres of surface area, Asia is the world’s largest continent and a part of Eurasia, it accounts for around a third of the Earth’s land mass. Asia has around four billion inhabitants, or roughly 60 % of the world’s population.

Hong Kong Skyline

328

locationgroup research | Retail Market Study 2012

71 New Delhi, Bottega Veneta, Damiani and Canali debut at Oberoi Gurgaon Hotel .

NEW DELHI is part of the Indian metropolis of Delhi and is the seat of the Indian government. During the British colonial period beginning in 1911, New Delhi was constructed south of the old city of Delhi, and thus New Delhi’s 42,7 square kilometres comprise only a minute fraction of the 1,483 square metre surface area of the capital city. According to the 2011 census, New Delhi has 249,998 inhabitants.

Delhi and New Delhi, which comprise the capital of India, are governed as a union territory by the central government under the name of National Capital Territory of India. With 11 million inhabitants in the city proper and 16,3 million in the National Capital Region (as the conurbation is called), Delhi is India’s second largest city after Mumbai and counts as one of the world’s mega-cities.

Streetlife, New Delhi

New Delhi Skyline locationgroup research | Retail Market Study 2012

329

Adolfo Dominguez debuts at Ambience Mall In early February 2011, the Spanish fashion designer Adolfo Dominguez opened a new boutique in a 325 square metre space in New Delhi’s Ambience Mall. The Spanish fashion designer wants to open 25 stores across India over the next five years. The brand has partnered with the Wadhawan Lifestyle Retail Group to launch its second store coming up in Gurgaon, as well as its third in Mumbai.

India’s No. 1 Lifestyle Brand new in Ambience Mall Van Heusen, India’s premium corporate fashion brand, launched its new flagship Store in the Ambience Mall, in September 2011. The new store is located on the first floor of Ambience Mall, and showcases the finest collection of suits and blazers in the country. Van Heusen is the world’s No.1 dress shirt brand.

It is not different in India, except that it is also the country’s No. 1 premium lifestyle brand for men, women and youth. This is the brand‘s twenty-ninth store in the city.

The Claridges Hotel New Delhi

Oberoi Hotel New Delhi

330

locationgroup research | Retail Market Study 2012

First Versace Home Boutique opened in The Gallery MG In January 2011, the first Versace Home Boutique opened its doors, at The Gallery MG, one of the most prestigious shopping centres in New Delhi. This Versace Home flagship boutique covers over 300 square metres and reflects the Maison‘s DNA. The Boutique showcases the complete interior collections Living and Dining, in a diverse series of elegant, very fashionable settings.

Bottega Veneta, Damiani and Canali debut at Oberoi Hotel Gurgaon In 2011, the Italian luxury retailer Bottega Veneta opened a new boutique at New Delhi’s ritzy Hotel Oberoi Gurgaon in a 60 square metre space that is the company’s second store in New Delhi and the third one in India.

The Italian jewellery house Damiani also opened its first Indian store, in November 2011, at Hotel Oberoi Gurgaon. The company is seeking a location in Mumbai where it hopes to open a second store in 2012.

Oberoi Hotel New Delhi

Connaught Place New Delhi locationgroup research | Retail Market Study 2012

331

Hamleys Toys available in DLF Place Mall The British toy retailer Hamleys, which operates in India under a franchise agreement with Reliance Retail, is all set to open a flagship store in Delhi, its first-ever in the national capital. The 1,858 square metre store will sprawl across three floors of the DLF Place Mall in South Delhi.

Hamleys intends to open 20 stores across India in the next seven years, for 2012, they are looking for new openings in New Delhi, Mumbai, Pune, Hyderabad, and Bangalore.

Bally DLF Emporio Mall, Neu Delhi

Apart from Bottega Veneta and Damiani, Canali also opened a boutique in 2011 at Hotel Oberoi Gurgaon in a 150 square metre space, bringing to six the Canali mono-brand store fleet in India.

Bally finally comes to India India’s first Bally store was unveiled at New Delhi’s luxury hub, the DLF Emporio Mall in Vasant Kunj, on 4th November, 2011. In keeping its commitment with the Franchise Bird Group International to promote the brand in India, more stores are planned at premium locations across India.

100th Tommy Hilfiger store opens in India In November 2011, Tommy Hilfiger launched the 100th store in Connaught Place. Situated in the heart of the Indian capital, at the centre of the city’s historic business and retail district, the new store provides the perfect backdrop to present the Tommy Hilfiger lifestyle to New Delhi’s fashion consumers. The 180 square metre retail space includes tailored clothing, women, children and menswear, footwear, accessories and Hilfiger Denim collections. The store is operated under a licence to an experienced retail partner in the region.

Carlton Bags new in India The global luggage brand Carlton has announced its entry into the retail segment of India with the launch of its first store in South Extension II, New Delhi. At present, the brand has a presence in over 50 countries across four continents.

First Lacoste flagship store has arrived in Delhi Lacoste has launched its first concept store “Lacoste L!ve” in India at Select Citywalk, Delhi, in December 2011. In the coming month, the casual brand will open two to three exclusive outlets in New Delhi and Mumbai.

Massimo Dutti – Expansion Plans In cooperation with the Indian conglomerate Tata Group, Inditex is planning for Massimo Dutti’s future presence in India, after the four successful openings of Zara Stores in New Delhi and Mumbai.

Massimo Dutti has 542 stores in 50 countries and offers a variety of collections from high-end fashion to easy-going casual wear.

Uniqlo about to open in India Fast Retailing, Asia‘s largest clothing retailer is planning to open up Uniqlo stores in India. The company, which aims to open 4,000 Uniqlo outlets by 2020, with 1,000 each in China and Southeast Asia, also said it will consider opening stores in India. The Japanese fashion retailer has been in advanced negotiations with Mumbaibased conglomerate Aditya Birla Group, to set up a joint-venture

DLF Emporio Mall, New Delhi

332

locationgroup research | Retail Market Study 2012

Select Citywalk Emaar MGF and DLF Malls at Saket, New Delhi.

DLF Place Mall, New Delhi locationgroup research | Retail Market Study 2012

333

72 Mumbai’s 150,000 square metre Phoenix Market City mall opens .

Ermenegildo Zegna takes over from Moschino In the autumn of 2011, Ermenegildo Zegna relocated from Taj Mahal Palace to the former Moschino boutique at Shangri La Hotel.

Tom Ford takes over from Zegna The US designer Tom Ford, working with local franchise partners in Mumbai and New Delhi, took over the 110 square metre Ermenegildo Zegna store at the Taj Mahal Palace. This is Tom Ford’s second store in India, the first being at New Delhi’s Emporio Mall.

Hermès opened first stand-alone Boutique In July 2011, Hermès opened at Horniman Circle in a 150 year-old building that overlooks the Asiatic Society Library to one side and the Horniman Circle gardens just ahead on the other. The 278 square metre store, covering 2 floors, is the first stand-alone luxury brand boutique outside of a mall or five star hotel in India.

Mumbai Skyline

MUMBAI (formerly Bombay), the capital city of the Indian state of Maharashtra and India’s most important port city, is located on Salsette Island just off the west coast of Maharashtra. The centre of Mumbai is perched on a narrow strip of land that extends from the marshy coast into the Arabian Sea. Mumbai is the commercial centre of India.

With 12,5 million inhabitants in Mumbai proper (i.e. excluding the suburbs that surround the city), Mumbai is India’s largest city and one of the world’s most populous conurbations. With a population of 18,4 million, the Mumbai Metropolitan Region, which also includes the northern section of the city of Thane, is the world’s largest metropolitan region.

Canali opened at Palladium mall Genesis Luxury, which has partnered brands such as Jimmy Choo and Bottega Veneta, experimented by opening a store for Italian menswear Canali at Mumbai‘s Palladium mall. “There were high risks of adjacencies,” says Deepika Gehani, creative head of Genesis Luxury, referring to neighbours such as DKNY and Zara, which are international brands but not classified as luxury.

The Canali store at Palladium generated close to 100 % higher sales within three months of launch than its outlet at JW Mariott in the same city.

Mumbai Panorama

334

locationgroup research | Retail Market Study 2012

Taj Mahal Palace, Mumbai

Cartier will expand with 6 to 7 more boutiques Cartier launched its first boutique in India in New Delhi’s DLF Emporio Mall in 2008. Now they are looking for a suitable location in Mumbai, where their store will be 300 to 500 square metres with the same look as Cartier stores worldwide. Cartier intends to open six to seven boutiques in India over the next ten years.

Damiani is seeking for a new boutique Italy’s leading jeweller, the Damiani Group, is known for the timeless elegance of its jewellery. After their first location in the Oberoi Hotel in New Delhi, they are seeking for a second location, to set up boutiques in Mumbai.

Opening of Phoenix Market City Mall In November 2011, the large Phoenix Market City Mall has opened their Doors in Kurla Area. Kurla is a city-centric location, with easy access to the airport. Because of the prime location and size, it will surely become a destination and earn itself a spot on the tourist sightseeing list. The interiors of the mall have been designed to be simple and aesthetic. The main mall spreads across three levels, with natural light in abundance, wide corridors and carefully considered lines-of-sight to all retail partners. The merchandise mix includes strong representation in key categories such as convenience and service, fashion, entertainment & leisure, home, electronics and food & beverage.

Europe’s most popular retailer Nara Camicie takes up residence at Phoenix Mall Nara Camacie makes a broad range of men’s and women’s fashion shirts for every occasion.

In November 2011, the Italian retailer opened a 70 square metre boutique at Mumbai’s Phoenix Mall. This is the company’s first franchise store in India, and additional shopping outlets at Indian shopping malls are in the pipeline.

Mumbai Skyline locationgroup research | Retail Market Study 2012

335

The mall contains 150,038 of retail space, 55,471 of which host 362 small boutiques. The Center also has 125,419 square meters of customer parking space.

Boggi Milano opens ninth Indian store In July 2011, the Italian family-run apparel company Boggi Milano opened its first store in Mumbai, bringing to nine the retailer’s Indian boutique fleet. The new 1,200 square metre store which is located at Mumbai’s Infinity 2 mall, offers classic fashions that take their cue from the Milan lifestyle. Boggi plans to open an additional 35. stores in India.

New Opening of Celio with a wine bar on the first floor The international men‘s clothing retailer Celio, based in SaintOuen, France, has opened a new flagship store in December, 2011.

The 511 square metre store is located in the Linking Road and features a wine bar on the first floor. Most of Celio‘s stores are located in shopping centres, with a smaller percentage to be found in the shopping districts of cities and large suburbs. Celio has decided on 15 more stand-alone stores by the end of 2012.

Hermès Horniman Circle, Mumbai

Palladium Mall, Mumbai

336

locationgroup research | Retail Market Study 2012

U.S. Polo Association opens 50th store The United States Polo Association is the national governing body for the sport of polo in the United States since 1890. The USPA provides resources to approximately 3,600 individual members and 250 polo clubs, across the U.S. and Canada, including coordinating and supervising professional polo matches, tournaments and activities of its U.S. member teams. The US label has celebrated its 50th store opening in December 2011, on India’s Linking Road.

The new store was opened as a joint venture with the company’s franchise partner Arvind Lifestyle Brands, which also markets such international brands as Arrow, Izod, Gant, and Energie in India.

U.S Polo Assn and their Franchise partner Arvind Lifestyle expect to operate a total of 100 stores in India, by the end of 2012.

Manchester United Store, Mumbai

Phoenix City Mall Rendering, Mumbai locationgroup research | Retail Market Study 2012

337

Vero Moda and Jack & Jones opening, Mumbai

Australian coffee comes to India The Australian coffee chain Gloria Jean is expanding to India, and plans to open 30 stores by the end of 2012 in collaboration with its franchise partner Citymax India in Bengaluru, Chennai, Hyderabad, Mumbai, and Delhi and in second tier cities such as Chandigarh, Jaipur, and Pune. Presently, the company has over 1,000 stores across 39 countries worldwide of which 480 are in Australia.

Bestseller opens multi-brand outlet in Mumbai In December 2011, the Danish young-fashion retailer Bestseller opened a multi-brand outlet at Mumbai’s Phoenix Mall. The 727 square metre store will carry Jack & Jones menswear, Vero Moda‘s Only women‘s fashions, and Pieces accessories. Bestseller is aiming to open eight to ten additional outlets by mid-2012 in Bhopal, Kanpur, Raipur, Kochi, and Bangalore.

Metro Cash & Carry comes to Mumbai The Dusseldorf-based leading international wholesaler Metro Cash & Carry opened its first wholesale store in Mumbai in May 2011 in a 6 503 square metre space at Neptune’s Magnet Mall. The store is open to members of the trade only, e.g. hotels, restaurants, and small stores such as Kirana. Metro Cash & Carry’s products and services are geared to these target groups. The company has subsidiaries in 30 countries and operates a total of 665 self-service wholesale stores.

338

Single-Brand Retail Trading A press release issued at the beginning of January 2012, by India’s Ministry of Commerce & Industry, Department of Industrial Policy & Promotion, clarifies the review of the policy on Foreign Direct Investment and the liberalisation of the policy in Single-Brand Retail Trading.

Present Position Foreign Direct Investment (FDI), in retail trade is prohibited except in single brand product retail trading, in which FDI, up to 51 % is permitted, subject to conditions specified under paragraph (A) below.

Revised Position The Government of India has reviewed the existing policy on FDI and decided that FDI, up to 100 %, under the government approval route, would be permitted in Single-Brand Product Retail Trading, subject to specified conditions, as indicated in paragraph (B).

locationgroup research | Retail Market Study 2012

Gloria Jean‘s Coffees Maharashtra, Mumbai

A. (1) Foreign Investment in Single-Brand Product Retail Trading

is aimed at attracting investments in production and marke ting, improving the availability of such goods for the consumer,

encouraging increased sourcing of goods from India, and en-

hancing competitiveness of Indian enterprises through access

to global designs, technologies and management practices.

B. Application seeking permission of the Government for FDI in retail trade of ‚Single Brand‘ products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. The application would specifically indicate the product categories which are proposed to be sold under a ‚Single Brand‘. Any addition to the product categories to be sold under ‚Single Brand‘ would require a fresh approval of the Government.

(2) FDI in Single-Brand Product Retail Trading would be subject to

the following conditions:

(a) Products to be sold should be of a ‚Single Brand‘ only.

(b) Products should be sold under the same brand internatio nally.l.e.products should be sold under the same brand in one

or more countries other than India.

(c) Single-Brand Product Retail Trading would cover only

products which are branded during manufacturing.

(d) The foreign investor should be the owner of the brand.

(e) In respect of proposals involving FDI beyond 51 %, manda tory sourcing of at least 30 % of the value of products

sold would have to be done from Indian ‚small industries/

village and cottage industries, artisans and craftsmen‘.

Small industries‘ would be defined as industries which have

a total investment in plant & machinery not exceeding

USD1.00 million.

locationgroup research | Retail Market Study 2012

339

73 Hanoi, Parkson department store opens in skycraper .

HANOI with a population of 6,5 million is the capital of Vietnam.

Since 2004, international luxury retailers have been awakening to the expansion and sales growth potential of this market and have begun opening flagship stores here. Over the past two years, milestones have been reached by virtue of various luxury retailers having opened outlets in Vietnam.

The following major malls have been built in Hanoi recently in response to the city’s rapidly growing economy and extremely high population density: Trang Tien Plaza, Hoan Kiem District, Vincom City Towers, Ruby Plaza, Parkson Department Store, Big C Thăng Long Supercenter, Metro AG, The Garden Mall, Vincom Shopping Galleries, Ciputra Mall, and Yen So Shopping Mall.

Hanoi Panorama

Traffic in Hanoi

340

locationgroup research | Retail Market Study 2012

Gucci opens in former Hanoi Esprit Store Ly Thai To Street which connects to the Opera House in the city is the home of luxury brands in Hanoi. In September 2010, Gucci opened a 400 square metre store in the Hongkong Land Building, through the franchisee Milanovn. Next to the Gucci store is Luala boutique, a highend fashion retailer, which opened in April 2011.

Longchamp and Van Laack opened opposite the Opera Longchamp has targeted Vietnam as a very potent market. The 100 square metre shop is located on Phan Chu Trinh 6 opposite the Opera House; it opened in March 2011.

In 2009, the store of elegant shirt retailer Van Laack was opened through the franchisee DX Fashion Group. A wide range of products can be found at 61 Ly Thai To Street, Hanoi and the other store in Ho Chi Minh City which was opened in June 2009 on Dong Khoi Street in District 1.

Opera Hanoi

Gucci Ly Thai To Street – Opera Square, Hanoi locationgroup research | Retail Market Study 2012

341

Escada opened second store in Hanoi Escada opened their seconded store in Hanoi in 2007, by the same franchisee as Van Laack – DX Fashion Group in Ly Thai To Street.

The first store of the brand in Vietnam was opened in June, 2001 at 106 Nguyen Van Troi Street, Ho Chi Minh City.

Valentino with Hanoi debut Neighbouring to Escada, Valentino has recently launched the first mono-brand store in Vietnam on Ly Thai To Street opposite the backside of the Metropole Sofitel Hotel in August 2011. The 105 square metre store is a result of the partnership between Valentino S.p.A and Four Seasons Global JSC.

Escada Ly Thai To Street, Hanoi

Sofitel Metropole, Hanoi

342

locationgroup research | Retail Market Study 2012

Opera Business Centre developed with luxury brands The Opera Business Centre on Ly Thai To Street celebrated the opening of the first Burberry stores outside of the airport while Dunhill, Estée Lauder, Shiseido and My Way Café have also moved into the property which is opposite the Hanoi Opera House.

Jaeger-LeCoultre, IWC, Panerei, Hermès and Sergio Rossi at the Metropole Sofitel Metropole Sofitel Hotel houses luxury brands in Hanoi, such as Jaeger-LeCoultre, IWC and Panerei which opened new stores there in 2009. One year earlier, Hermès opened a 110 square metre store in the hotel. The Hermès store is located next to the second Sergio Rossi store in Vietnam which opened in 2007.

Cartier opened at the Metropole Sofitel Hotel Cartier continues its expansion in Vietnam with the opening of its third store in Hanoi in July 2012, at the Trang Tien Plaza. The first store opened at the Metropole Sofitel Hotel in Hanoi, on the same side as Burberry, Estée Lauder and Shiseido in 2005.

Tthe second opened at the Rex in Ho Chi Minh City Arcades in 2010.

Louis Vuitton opened in 1997 before Chopard and Vertu On the other side of the hotel is the flagship store of Louis Vuitton in Hanoi which opened in 1997. Next to Louis Vuitton are Cartier, the Chopard store and a boutique of Vertu which opened in 2010.

BCBG opened 3rd boutique in Hanoi BCBG celebrated the grand opening of their third boutique on Ly Thai To Street in 2010 with a lease contract of 6 years. The rent of the 187 square metre store is about 22,000 dollar per month.

Salvatore Ferragamo, Cartier, Vertu & Louis Vuitton Sofitel Metropole, Hanoi locationgroup research | Retail Market Study 2012

343

Traffic in front of the Louis Vuitton Boutiqe Sofitel Metropole, Hanoi

BCBG Max Azria Ly Thai To Street, Hanoi

344

locationgroup research | Retail Market Study 2012

Parkson Landmark, Hanoi

Opening in Hang Da Galleria The opening of Hang Da Galleria in September 2011 was a good opportunity for international retailers to access the Vietnamese market. The shopping centre is located at the centre of Hanoi.

The building consists of 5 floors and 2 basements with more than 8,000 square metres of retail space. International retailers are: FCUK, NafNaf, Axara, Ninewest, G2000, Easy Spirit, Morgan de toi, AK, Valentino Creation, Kelly Bùi.

Nine West inaugurated the opening of the ninth store in Vietnam in September 2011. The store is located in Hang Da Galleria. It marked also the grand opening of Hang Da Gallerie. Axara Paris opened a new store there in September 2011 as well.

French Connection and NafNaf with 2 new stores NafNaf, the Parisian brand, recently opened two stores in Hanoi, one in Pico Mall in July 2011 and one in Hàng Da Galleria in August.

So did French Connection, in autumn 2011 they opened two new stores in these malls.

Parkson opens department store at Hanoi skyscraper Parkson, a well-known shopping brand for high-end fashion, has opened a new store at the 72-storey Keangnam Hanoi Landmark Tower, the country’s tallest building.

locationgroup research | Retail Market Study 2012

The Parkson Landmark 72 is also the biggest and most luxurious department store in Hanoi with a total gross retail area of 35,600 square metres. So its inauguration at the beginning of December 2011 marked a further development of Parkson in the Northern Vietnam market and took the number of Parkson stores in the nation to eight.

Costing up to 10 million dollar, the most sophisticated high-end shopping and entertainment centre in Hanoi will be able to satisfy demands for shopping, entertainment and relaxation for close to 100,000 people residing in western Hanoi, said Parkson Vietnam.

Coach store opening in Parkson Landmark, Keangnam Tower The first store of Coach has just opened in the Parkson Landmark, Keangnam Tower, on Pham Hung Street in the Cau Giay district in Hanoi in December 2011. The second store will be in Ho Chi Minh City, located in Parkson Le Thanh Tong.

Easy Spirit debut in the Parkson Landmark May 2011 marked the first opening of Easy Spirit in Hanoi, Vietnam. The new Easy Spirit store is located at Parkson Landmark, Level 2. The brand, which is owned by the Jones Group, opened its second store in Hang Da Galleria in September 2011.

345

Pico Mall – Biggest shopping centre in Hanoi The Pico Mall Trade and Entertainment Centre officially opened to the public in April 2011. The five-storey Pico Mall is the biggest shopping and entertainment centre in Hanoi with a 30,000 square metre space. It might also open more trading and cooperation opportunities for investors and businesses.

Bata, Big Star and Triumph with new shops in the Pico Mall Big Star opened its first store in Pico Mall. The store is located on the 2nd level of the shopping centre. The shoes brand Bata set up a new shop Pico Mall, located at the 2nd level of the mall. Famous lingerie brand Triumph opened a new shop at 3rd level of Pico Mall.

The first and second floors are used for shopping areas with famous international brand names, the third is for sport-wear and a Citimart supermarket, the fourth is for two of Hanoi’s biggest supermarkets, Pico Digital and Pico DÊcor, and the fifth one is for restaurants and the Megastar cinema.

Coach Parkson Landmark, Hanoi

346

locationgroup research | Retail Market Study 2012

Ly Thai To Street, Hanoi locationgroup research | Retail Market Study 2012

347

74 Ho Chi Minh City, the new Rex Luxury hotel & shopping-mall .

HO CHI MINH CITY (HCMC), formerly named Saigon, is the largest city in Vietnam. The metropolitan area, which consists of the Ho Chi Minh City metropolitan area and the surrounding towns. It is populated by more than 9 million people, making it the most populous metropolitan area in Vietnam and the countries of the former French Indochina.

The Greater Ho Chi Minh City Metropolitan Area will have an area of 30,000 square kilometers with a population of 20 million inhabitants by 2020.

Some of the larger shopping malls and plazas opened recently include: Saigon Centre (1997), Tax Plaza (1998), Diamond Plaza (1999), Big C (2002), Crescent Mall, Parkson‘s (2005–2009) – multiple locations, Saigon Paragon (2009), NowZone (2009), Kumho Asiana Plaza (2010), Vincom Centre (2010), Bitexco Financial Tower (2010).

Parkson Flemington, Ho Chi Minh City

In 2007, three million foreign tourists which is about 70 % of the total number of tourists in Vietnam, visited the city. Total cargo transport to Hồ Chí Minh City‘s ports reached 50,5 million metric tonnes, nearly one-third of the Vietnam’s total.

Parkson Flemington Shopping Centre Ho Chi Minh City’s Parkson Flemington mall, which is one of seven Lion Group malls, hosts the debut stores of more than 300 wellknown brands, including the following: Christian Dior, Estée Lauder, Lancôme, Clinique, Shiseido, Gucci, Clarins, Escada, Lacoste, Guess, CK Jeans, Lancel, Esprit, Levis, Lewré, Bonita, Ecco, Geox, Adidas, and Nike – plus Vietnamese retailers such as Vera, Nino Maxx, N&M, and An Phuoc.

Coach expanding in Vietnam The US accessory retail chain Coach opened its first Vietnamese store in October 2011 at Tan Son Nhat International Airport in

Ho Chi Minh City, and in December 2011 opened a second Hanoi store at Parkson Landmark in Keangnam Tower. A third store will be opening in 2012 at Ho Chi Minh City’s Parkson Saigon Tourist Plaza.

Rex one of the leading hotels of Vietnam and also a shopping mall The five-star Rex Hotel Saigon in HCMC’s District 1 has handed over 2,000 square metres to Imex Pan Pacific Company for the Rex Shopping Arcade project expected to open in October.

Imex Pan Pacific has invested US$ 18 million to turn the ideal area of the Rex Hotel, at the corner of Nguyen Hue and Le Loi boulevards and considered one of the most beautiful locations in downtown Saigon, into a shopping arcade with well-equipped facilities.

HCMC Panorama

348

locationgroup research | Retail Market Study 2012

The arcade features fashion brand names such as Chanel, Burberry, Salvatore Ferragamo, Cartier, Polo, Ralph Lauren, Rolex, Bally, Tumi and Ermenegildo Zegna.

With the new shopping arcade and the current shopping area on Le Thanh Ton Street, the Rex is not only one of the leading hotels in the country but also a shopping mall where customers will catch up the latest world fashion trends.

Salvatore Ferragamo and Vertu debute at Rex Arcade Salvatore Ferragamo opened a 200 square metre store in Ho Chi Minh City’s Rex Arcade, where in November 2011 Vertu also opened its fourth store in Vietnam and second in Ho Chi Minh City, in a 127 square metre space.

Jimmy Choo, Karen Millen, Benetton, and Gap debut at Vincom Centre In October 2010, Jimmy Choo opened a 140 square metre boutique at Ho Chi Minh City’s Vincom Centre, in cooperation with the retailer’s franchise partner, Vietnam-based Maison Co. The British women’s fashion retailer Karen Millen opened its first store in Vietnam in November 2010, at Vincom Centre.

Vincom Center, Saigon

In October 2011, the Italian clothing retailer Benetton opened an around 200 square metre store at Vincom Centre.

Gap opened its first Ho Chi Minh City store at Vincom Centre in October 2011, and plans to open two additional stores at Crescent Mall in November and Diamond Plaza in December, with outlets in Hanoi to follow in 2012.

Adidas debuts in Bitexco Building Adidas opened its largest Vietnamese store to date (256 square metres) on the ground floor of the Bitexco Building in Ho Chi Minh City.

Rex Hotel, Ho Chi Minh City locationgroup research | Retail Market Study 2012

349

Crescent Mall Rendering, HCMC

Tan Son Nhat International Airport, HCMC

350

locationgroup research | Retail Market Study 2012

75 Bangkok, Shopping malls are shopaholic’s paradise .

BANGKOK has been the capital city of Thailand since 1782. Bangkok is by far the most densely populated city in Thailand with about 12 million people. The capital is a center of the Megalopolis of 20 million people.

Ratchaprasong is at the forefront of Bangkok‘s shopping scene.

The newly renovated Central World Plaza intends to serve as a square to Bangkokians. Just up the street is Siam Square, similar to Shinjuku in Tokyo and Oxford Street and Piccadilly Circus in London. The Sukhumvit area also serves as a shopping district for foreigners.

Bangkok‘s shopping malls are shopaholic‘s paradise Bangkok‘s modern, multi-storey shopping malls are a shopaholic‘s paradise. From the legendary MBK to the sophisticated Emporium, trendy Siam Discovery and Central World Plaza, or unashamedly upscale Siam Paragon, Bangkok’s shopping malls accommodate every taste, pocket and style. The latest addition to the city‘s ‘mallscape’ are the innovative Terminal 21 and Central Plaza Rama 9.

Bangkok Skyline

Central World is the third largest shopping centre in the World Central World is a shopping plaza and complex in Patumwan, Bangkok. It is the third largest shopping complex in the world and got about 150,000 visitors per day. The complex, which includes a hotel and office tower, is owned by Central Pattana. In 2006, after three years of design and renovation, the Central World expanded to 550,000 square metres of retail space. The Central World is now officially the largest lifestyle shopping complex in Southeast Asia.

Uniqlo is unstoppable Uniqlo, the Japanese version of H&M, opened its first flagship store in Thailand, in September 2011. The new store had a size of 2 700 square metres and is located on the third floor of the Central World shopping centre.

Siam Paragon, Bangkok

Siam Paragon: Bangkok’s second largest mall Siam Paragon is located on the former Siam Intercontinental Hotel site, which is owned by Crown Property Bureau and was at one time the site of a royal park for the nearby Sra Pathum Palace.

Siam Paragon opened in 2005 after three years of construction at a cost of 370 million euro, and a gala party was held to mark the occasion. Siam Paragon is regarded as one of Bangkok’s most exclusive shopping malls, along with Emporium on Sukhumvit Road.

The mall is managed by a joint venture comprising The Mall Group (which also manages Emporium Centre) and Bangkok Intercontinental Hotels Co. (Thailand).

MBK Shopping Center, Bangkok locationgroup research | Retail Market Study 2012

351

Uniqlo Opening Central World, Bangkok

Central World Bangkok

352

locationgroup research | Retail Market Study 2012

Siam Paragon, Bangkok

Ferrari Presentation, Siam Paragon Bangkok

The 500,000 square metre Siam Paragon mall hosts myriad stores and boutiques, plus the 50,000 square metre Siam Paragon Department Store. Virtually every luxury retailer from the four corners of the globe has an outlet here. Some of the shops in Siam Paragon include Gucci, Chanel, Balenciaga, Valentino, Kenzo, Hermès, Bottega Veneta, Giorgio Armani, Jimmy Choo, Chloé, Dolce & Gabbana, Burberry, Salvatore Ferragamo, Cartier, Bally, Fendi, Zara, MNG, Versace, Louis Vuitton, Givenchy, Marc Jacobs, Emporio Armani, Hugo Boss, Prada, Ermenegildo Zegna, Swarovski, Coach, Shanghai Tang, Jim Thompson, Tod‘s, Mulberry, Kenzo, Escada, Emilio Pucci, Canali, Bulgari, Paul Smith and many other upmarket brands.

Terminal 21 Shopping Center, Bangkok

Luxury cars in Siam Paragon The car showrooms in Siam Paragon include Lamborghini, Lotus, Aston Martin, Bentley, Porsche, Jaguar, Spyker, Maserati, BMW, Hummer and MTM. Siam Paragon is on Rama I Road in the Pathum Wan district, and is next door to Siam Center and Siam Discovery Center and opposite Siam Square. MBK Center is also nearby. An elevated walkway beneath the BTS Skytrain tracks links Siam Paragon to the Ratchaprasong intersection, where Central World, Gaysorn and several other shopping malls and hotels are located.

Central Plaza, Bangkok locationgroup research | Retail Market Study 2012

353

Terminal 21 with longest escalator in Thailand Terminal 21 is a new shopping mall in Bangkok, and directly connected to the Asok BTS station and Sukhumvit MRT station. The mall is located on Sukhumvit Road Watthana and opened in October 2011.

Terminal 21 gives visitors the opportunity to visit several destinations in the world in just one day. Every floor in this megamall has its own theme. You can visit cities and sites such as London, Paris, Rome, San Francisco, Istanbul, Tokyo, the Caribbean and Hollywood. There are many famous retailers with stores in the new shopping mall such as Adidas, Camel Active, Promod, Puma, Guess Accessoires, Levi‘s, Nike, Esprit, The Body Shop, Starbucks, Roxy & Quiksilver, Pronto and KipLing.

The total retail floor area is 55,000 square metres, with 9 floors, 665 stores and the longest escalators in Thailand, up to 36 metres.

Emporium Shopping Center, Bangkok

Lamborghini Store Emporium, Bangkok

354

locationgroup research | Retail Market Study 2012

Central Plaza Grand Rama 9 opened on 214,000 square metres The Central Plaza Grand Rama 9 located in the corner of Ratchadaphisek Road is a lifestyle entertainment shopping centre which opened in December 2011. The retail space area is over 214,000 square metres, with 11 floors and more than 300 shops, restaurants, world-class cinemas and a large number of restaurants. The Central Plaza targets to draw more than 120,000 visitors daily. In January 2012, the latest opening was the one from American retailer Gap. Emporium Bangkok for all fashion lovers The Emporium Bangkok is like a glossy magazine. The 7-floor centre has opened in the year 1997. Exclusive world-class brands like Fendi, Chanel, Louis Vuitton, Hermès, Montblanc and Salvatore Ferragamo dominate the ground floor and jewellery brands like Cartier the first floor.

IKEA vs SB Design Square IKEA opened its first furniture market in Thailand on 3th November 2011, at the Bangna-Trad Road in Samutprakarn. The 40,000 square metre market will be a stand-alone part of the Mega Bangna shopping center and will have capacity to hold around 8,500 articles.

Thailand’s leading manufacturer and distributor SB Design Square offers design furnitures and opened only a few weeks after IKEA’s store in November 2011. Both are located close to each other along the Bangna Express Way. Tesco expanding to Bangkok The British supermarket chain Tesco is the UK’s largest retail chain and the world’s fourth largest after Wal-Mart (USA), Carrefour (France), and Metro (Germany). In July 2011, Tesco opened its first store in Bangkok in a 3,000 square metre space on Rama IV Road, at a cost of USD10 million.

Coccinelle’s first mono-brand store in Bangkok The Italian fashion retailer Coccinelle opened its first mono-brand store in Bangkok at Emporium Shopping Complex, thus bringing to 80 the number of Coccinelle boutiques worldwide.

IKEA Bangkok

Camper opens at Emporium mall In October 2011, the Spanish fashion running shoe company Camper opened a new store at Bangkok’s Emporium Mall. The store carries men’s, women’s and children’s running shoes.

Roger Dubois debuts in Asia The Swiss watch and jewellery company Roger Dubois opened its first Asian store at Bangkok’s Gaysorn shopping mall. The 150 square metre store is decorated in red, gold and black.

Nine West opened at Central Plaza Laprao Nine West, one of America’s most popular footwear and fashion labels, celebrated its grand opening in August 2011. The new Nine West shop presents a new luxurious look for all fashion lovers in Thailand. The 116 square metre retail space is located on the first floor of the Central Plaza Laprao.

First official BlackBerry Store in Asia Asia’s first BlackBerry Lifestyle store has opened on 140 square metres in Thailand’s Siam Paragon shopping centre. The 140 square metre store has opened on the 29th September, 2011, and will not only display and sell all BlackBerry phones models but should also provide product consultations and services like in Apple stores.

Gayson Mall, Bangkok locationgroup research | Retail Market Study 2012

355

76 Kuala Lumpur – Starhill Gallery listed as Asia’s most beautiful shopping mall .

KUALA LUMPUR is Malaysia’s capital city. The city proper, making up an area of 243 square kilometres, has a population of 1,4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7,2 million. It is the fastest growing metropolitan region in the country, in terms of population and economy.

Kuala Lumpur alone has 66 shopping malls and it is the retail and fashion hub for Malaysia. Shopping in Malaysia contributed RM 7,7 billion (US$ 2,26 billion) or 20,8 % of the total tourism receipts in 2006. Kuala Lumpur plays a big role in attracting consumers.

Suria KLCC is one of Malaysia‘s premier shopping destinations due to its location beneath the Petronas Twin Towers. Apart from Suria KLCC, Bukit Bintang district has the highest concentration of shopping malls in Kuala Lumpur. It houses various cafes, alfresco dining outlets and retail malls. The Bangsar district also has a few shopping complexes, including Bangsar Village, Bangsar Shopping Centre, Mid Valley Megamall and The Gardens. The Damansara subdivision north-west of Kuala Lumpur, though not in the cityproper, is the home of the only IKEA outlet in the country, and a cluster of locally operated malls like The Curve, Ikano Power Centre and One Utama.

Starhill Gallery Mall, Kuala Lumpur

Kuala Lumpur Skyline

356

locationgroup research | Retail Market Study 2012

Starhill Gallery listed as one of Asia‘s most beautiful shopping malls Kuala Lumpur‘s Starhill Gallery is listed as one of “Asia‘s most beautiful shopping malls”. It is an upscale, luxury retail mall located in Kuala Lumpur‘s famed Bukit Bintang district.

Seven luxurious floors offer quality, privacy and exclusivity crafted for those who seek experiences out of the ordinary. International icons of luxury and the world‘s premier retailers are here, including some of the world‘s rarely seen stand-alone luxury watch boutiques.

Sephora in Starhill Gallery – now open French beauty retailer, Sephora, officially launched its debut flagship store in Kuala Lumpur, at the prestigious newly refurbished Starhill Gallery along Bukit Bintang Walk, in May 2011.

The store marks the first in Asia and is the third flagship store, after New York and Paris, which attract millions of footfalls similarly.

The Sephora store is a key element in the rejuvenation of Starhill Gallery’s facade designed by Stephen Pimbley. Covering close to 900 square metres in size, the flagship store consists of two-levels that carry the world’s leading beauty and make-up brands, such as Clinique, Dior, Estée Lauder, and Lancôme.

Starhill Gallery, Kuala Lumpur

Sephora Starhill Gallery, Kuala Lumpur locationgroup research | Retail Market Study 2012

357

Hermès opened at Starhill Callery The French luxury brand Hermès has opened a boutique in Kuala Lumpur dedicated to its watch collections. The 86 square metre boutique opened in January 2012, and is also located at Starhill Gallery on the same floor like, Versace, Tod’s, YSL, and Gucci.

Biggest Leica flagship store – now opened in Kuala Lumpur In August 2011, Leica Camera AG opened its world‘s biggest flagship store in Kuala Lumpur, located at Avenue K Mall. The new shop spreads on 1,500 square metres and is the 52nd Leica store worldwide.

Leica Flagship Store Avenue K Mall, Kuala Lumpur

Pavilion Kuala Lumpur Shopping Mall is situated along the Bukit Bintang district in Kuala Lumpur, Malaysia. This place was built on the site where former Bukit Bintang Girls‘ School, the oldest school in Kuala Lumpur, has been moved to Cheras as Sekolah Seri Bintang Utara in 2000. The mall has opened in 2007. It consists of four major components: a retail mall, an office tower, two residential elements and a proposed hotel.

Hermès Starhill Gallery, Kuala Lumpur

358

locationgroup research | Retail Market Study 2012

Karen Millen and Michael Kors opened at the Pavilion Kuala Lumpur Shopping Mall In December 2010, the famous women’s fashion designer Karen Millen opened its flagship store in the Pavilion Kuala Lumpur Shopping Mall.

The American fashion designer Michael Kors also opened his first stand-alone store at the Pavilion Kuala Lumpur Shopping Mall in November 2011.

Uniqlo fast tracks Expansion in Malaysia Japan’s No.1 fashion brand and worldwide leader in casual wear, has opened its second store in Kuala Lumpur in May 2011 at the most iconic landmark in the city centre, Suria KLCC. The new store, with a floor space of 707 square metres, offers over 300 items of stylish, high quality and affordable clothing.

New Balance new at Fahrenheit88 New Balance, one of the world’s leading running brands, and Rockport, the global leader in men’s and women’s footwear, have officially launched their concept flagship stores in the heart of KL city at Fahrenheit88.

Braun Büffel has opened a Store at Kuala Lumpur’s International Airport German leathergoods company Braun Büffel has opened a flagship boutique in the departure/transit hall at Kuala Lumpur International Airport (KLIA) Satellite Building. The store has a 76 square metre retail space and is located in between Gates C31-C37.

With its signature minimalist décor, the boutique seeks to appeal to time-strapped travellers with its three-way entrance flanked by polished marble columns. Its clean lines and use of mirror finish stainless steel, the beige and cream interior, and the light pinkishbeige toned wood and warm lights were designed to create an affable and inviting retail environment.

A plush Braun Büffel cowhide leather couch forms the centrepiece of the space. The store has been designed to segment the space and offer private corners by the use of varying height cabinets and display cases. Items will be grouped in different areas of the store by class.

Pavillion Mall, Kuala Lumpur

Braun Büffel International Airport, Kuala Lumpur locationgroup research | Retail Market Study 2012

Fahrenheit 88 Shopping Center, Kuala Lumpur

359

77 Singapore, Louis Vuitton opened the chain’s largest store on the water .

The island and city-state of SINGAPORE is Asia’s smallest nation.

Government statistics put Singapore’s population at 4,8 million.

Marina Bay Sands is a resort comprising a casino and hotel on Singapore’s Marina Bay. The resort – which was built by Las Vegas Sands hotel, opened in 2010 and comprises a 55-storey tower – is regarded as the world’s most expensive stand-alone casino. The land alone is said to have cost around 4.6 billion euro.

The Shoppes at Marina Bay Sands also boasts close to 93,000 square metres of retail space with over 300 stores, including numerous luxury duplexes for boutiques such as Ralph Lauren, Chanel, Cartier and Prada. Other luxury stores include Gucci, Hermès, Emporio Armani, Chopard, Burberry, Red Valentino, Dior, Dunhill, Vertu, Miu Miu, Yves Saint Laurent, Salvatore Ferragamo, Montblanc, Blancpain, a Hermès Watch Boutique, and Herve Leger.

Singapur Skyline

A canal runs through the length of the Shoppes, in the same style as the Venetian in Las Vegas. Also housed within the Shoppes are the six of the seven Celebrity Chef Restaurants – Cut (by Wolfgang Puck), Waku Ghin (by Tetsuya Wakuda), Pizzeria and Osteria Mozza (by Mario Batali), Guy Savoy (by Guy Savoy), DB Bistro Moderne (by Daniel Boulud), Santi (by Santi Santamaria) and Rasapura Masters (by Koufu).

Marina Bay Sands, Singapur

360

locationgroup research | Retail Market Study 2012

Louis Vuitton Maison opens the chain’s largest store on the water in Singapore In mid-September 2011, Louis Vuitton Maison opened its first island store at Singapore’s Marina Bay Sands. The store, which is on the water side of Marina Bay Promenade, is a calling card in the renowned landscape surrounding the bay. The glass building was the highlight of 2011 for Louis Vuitton. The second Pavilion house the world‘s largest Louis Vuitton boutique, at around 20,000 square feet (1,900 square metres).

Porsche Design debuts in Asia In July 2011, Porsche Design moved into a 160 square metre space in the Marina Bay Sands mall. This is the company’s debut Asian store.

Marina Bay Sands, Singapur

Marina Bay Sands Mall, Singapur locationgroup research | Retail Market Study 2012

361

Orchard Road is Singapore’s retail and entertainment hub Orchard Road is a one-way street. It starts at the junction with Orange Grove Road which is the location of the Orchard Hotel. It then stretches southeast across the Scotts Road/ Paterson Hill junction and ends at the junction with Handy Road.

Abercrombie & Fitch in Singapore now open The opening of Abercrombie & Fitch in Singapore historically marks exactly the two years anniversary of the opening of the first A&F in Asia. Tokyo‘s towering A&F Ginza was heralded by the Japanese news media upon opening as a “spectacle of consumerism”.

This flagship may be the third in Asia, but it‘s more specifically the first in Southeast Asia.

Abercrombie‘s flagship is located on Orchard Road – the city‘s major retail thoroughfare within the opulent Knightsbridge retail complex. The flagship store offers 1,900 square metres of retail space. Men’s styles take over the groundfloor while women’s fashions are housed in the upper levels.

Louis Vuitton Maison Marina Bay Sands, Singapur

ION Orchard Shopping Center, Singapur

362

locationgroup research | Retail Market Study 2012

H&M Orchard Road, Singapur

Abercrombie & Fitch Opening Singapur

Other new retail arrivals in the heart of Singapore In 2011, the US clothing chain Aeropostale opened its first store in Singapore, in a 2,000 square metre space on Orchard Road, where H&M opened a 2,800 square metre three-level store the retailer’s first one in Singapore.

metres of retail space, over 300 retail, F&B and entertainment stores, at the prime site of Singapore’s commercial and shopping artery.

Ion Orchard: A luxury mall on Orchard Road ION Orchard has become the “centre of gravity” in the retail scene, with spectacular frontage and cutting edge designs and concepts.

It brings together the world’s most popular brands for their flagship, concept and lifestyle stores within one development, with over eight levels of intelligently designed shopping space – four levels above ground and four levels below – totalling 66 000 square

The Italian watch manufacturer Panerai will be opening a store at the upscale Ion Orchard shopping mall in 2012.

Michael Kors to open 200 new outlets Michael Kors opened its first Singapore store in Scotts Square in a 150 square metre space. The retailer plans to open up to 200 stores worldwide in the coming years.

Scotts Square Shopping Center, Singapur locationgroup research | Retail Market Study 2012

363

78 Jakarta, 12 malls bigger than 100,000 square metres total space .

JAKARTA is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of 661 square kilometres and a population of 9,6 million. It is the most populous city in Indonesia and in Southeast Asia. Jakarta is the thirteenth-largest city in the world. The urban area, Jabodetabek, is the second largest in the world.

Twelve malls with more than 100,000 square metres of total space Jakarta is sprawling with numerous malls, shopping centers and traditional markets. At the end of mid 2011, there were 68 malls and trade centres across Jakarta and the Governor planned to suspend permits for new commercial centres with footprints bigger than 5,000 square metres until 2012. Jakarta shopping malls with a total size of more than 100,000 square metres of gross space include Grand Indonesia, Pacific Place Jakarta, Plaza Indonesia and Plaza e‘X, Senayan City, Plaza Senayan, Pasaraya, Pondok Indah Mall, Mal Taman Anggrek, Mal Kelapa Gading, Mal Artha Gading, and Mall of Indonesia.

New openings in Plaza Indonesia Shopping Center Still leading as one of the finest shopping centres in the country, the Plaza Indonesia Shopping Center was previously occupied

by Indonesia‘s first Sogo flagship department store as well as numerous international fashion labels and jewelries including Gucci, Versace, Louis Vuitton, Balenciaga, Bally, Bulgari, Christian Dior, Christian Louboutin, Emporio Armani, Fendi, Giorgio Armani, Ermenegildo Zegna, Givenchy, Marc Jacobs, Jimmy Choo, Jean Paul Gaultier, Alberta Ferretti, Lanvin, Cartier, Max Mara, Montblanc, Red Valentino, Prada, Valentino, Aigner and Zara‘s Indonesia flagship store.

Balenciaga and Givenchy finally opened first Indonesian store in Plaza Indonesia Jakarta finally enjoys the opening of the long awaited Balenciaga, the high-end luxury brand and one of the oldest and most famous luxury brands in fashion. The boutique carries women’s ready-towear, jewelry, leather goods, and accessories, plus the brand’s popular handbags. The French brand Balenciaga is situated between Ermenegildo Zegna and Edidi New York on the first level in the Plaza Indonesia Center.

Skyline Jakarta

364

locationgroup research | Retail Market Study 2012

Givenchy was pleased to announce that the French luxury brand opened in Plaza Indonesia Shopping Centre in Spring/Summer 2011 Ready-to-Wear and Accessory collections .

Calvin Klein takes over Armani Exchange store The US fashion retailer Calvin Klein relocated to the space formerly leased by the Armani Exchange store as this location was larger than the store’s original venue.

Etro will open its second store at Plaza Indonesia Italian luxury fashion retailer Etro will open its second store in Jakarta in February 2012. The Label will take over the space of Calvin Klein at Plaza Indonesia, which is located in the ground floor of the mall, next to Marc by Marc Jacobs. The new Etro store will feature women’s and men’s collections of ready-to-wear, bags, footwear and accessories. This is the second Etro store in Jakarta, the first was opened at Pacific Place Mall in 2008.

Mall of Indonesia, Jakarta

locationgroup research | Retail Market Study 2012

365

Fred Perry opened first store in Indonesia In December 2011, Fred Perry opened its very first Indonesia flagship store within the Plaza Indonesia. The store follows the successful ‘modern-classic’ design and carries the full collection including the iconic tipped Polo shirts, shoes, bags and accessoires.

Juicy Couture with Indonesia debut California-based fashion-phenomenon Juicy Couture opens its first stand-alone store at Plaza Indonesia, the heart of the luxury shopping district in Jakarta. With a footprint of 2,510 square feet, the store has been designed as a single informal space with most of the merchandise located on the walls.

Plaza Indonesia, Jakarta

Bally opens in Plaza Indonesia In April 2011, the Swiss shoe retailer Bally opened a new store at Jakarta’s Plaza Indonesia mall in a 160 square metre space on the second level. The store will carry only a part of the Bally collection.

Tod’s and Fendi with new stores in Senayan City Tod‘s opened its third and largest retail location in Jakarta in the shopping centre Senayan City on the groundfloor between Yves Saint Laurent and Francesco Biasia.

Fendi will take over the shops of Prada and Tod’s in Plaza Senayan to open their new store in June 2012.

BCBG Max Azria opened in Senayan City Following the success of the first boutique in Senayan City, BCBG Max Azria opened one more boutique in Jakarta, at the popular Plaza Indonesia. The new flagship store opened in October 2011 right beside the Hermès Saint-Louis, and it will carry the complete collection of women’s apparel and accessories.

Plaza Indonesia, Jakarta

Burger King wants to expand in Indonesia The American fast-food restaurant Burger King aims to open more stores to expand its presence in Indonesia. Currently, Burger King operates about 30 stores in Indonesia after about four years of operation. The company is planning to introduce 10 to 15 new stores in 2012.

Plaza Indonesia mall, Jakarta

366

locationgroup research | Retail Market Study 2012

Senayan City shopping center, Jakarta locationgroup research | Retail Market Study 2012

367

79 Macau, Wynn Macau with best expamples for haute couture .

Macau also spelled Macao, along with Hong Kong, is one of the two special administrative regions of the People‘s Republic of China. It lies on the western side of the Pearl River Delta, bordering Guangdong province to the north and facing the South China Sea to the east and south. The territory‘s economy is heavily dependent on gambling and tourism, but also includes manufacturing.

Macau was a Portuguese colony in 1887, and is both the first and last European colony in China. Portuguese traders first settled in Macau in the 16th century and subsequently administered the region until the handover on 20 December 1999. The Sino-Portuguese Joint Declaration and the Basic Law of Macau stipulate that Macau operates with a high degree of autonomy until at least 2049, fifty years after the transfer.

According to a recent survey conducted by the U.S. Central Intelligence Agency (CIA), Macau is the top country/region for life expectancy at birth with an average of 84,36 years, while its infant mortality rate ranks among the lowest in the world.

Mgm Grand Macau

Macau Skyline

368

locationgroup research | Retail Market Study 2012

One Central Macau

One Central both the hustle and bustle of the tourism epicenter in the Macau Peninsula Commanding the best location in Macau, One Central embraces both the hustle and bustle of the tourism epicenter in the Macau Peninsula, as well as the tranquility and unparalleled views of the outer harbor and lakes.

The prestigious 200,000 square foot complex features a sterling lineup of the world’s leading luxury brands, engaging shoppers with one of their largest flagship stores in Asia, their first outlet in Macau, or their primary establishment in the enclave. With its direct linkage with Mgm Macau, One Central is poised to become the new center of gravity with its superb retail offerings, facility and happenings.

Macau Square locationgroup research | Retail Market Study 2012

369

Wynn Macau with the finest examples of haute couture Wynn Macau boasts a lavish shopping esplanade with the finest examples of haute couture. The list of shops includes Chanel, Bulgari, Christian Dior, Fendi, Giorgio Armani, Louis Vuitton, Piaget, Prada and Tiffany, each bringing with its newest products to an eager crowd. Located in Rua Cidade de Sintra, the shops in the Wynn are some of the most popular in the world.

Macau Square is one of the city’s large shopping malls Like Sun Star City and New Yaohan, Macau Square is one of the city’s large shopping malls, located in Rua do Doctor Pedro. The three-story shopping mall houses outlets of various international fashion brands and products. Also unique to Macau Square are various business start-up programs that are offered.

Venetian, Macau

Four Seasons is redefining shopping in Macao The Shoppes at Four Seasons, a remarkable luxury mall that is beyond compare, is redefining shopping in Macao.

Four Seasons, Macau

370

locationgroup research | Retail Market Study 2012

The Shoppes at Four Seasons is Macao‘s first luxury mall. Armani, Dior, Brioni, Louis Vuitton, Hermes are only some of the Designer you can find. Home to more than 160 luxury and designer brands, the mall located at Cotai Strip is a feast for the eyes.

Venetian is modeled on its sister casino resort, The Venetian in Las Vegas The Venetian Macao is a hotel and casino resort in Macau owned by the Las Vegas Sands Corporation. It is a 40-story, $2,4 billion

anchor for the 7 hotels on the Cotai Strip in Macau. The 980,000 square meters Venetian Macao is modeled on its sister casino resort, The Venetian in Las Vegas, and is the largest single structure hotel building in Asia, The sixth-largest building in the world by area and the largest casino in the world, It is also home to the second largest Venice in the world, the first being the city of Venice, Italy and the third being The Venetian in Las Vegas, Nevada. The Shopping area shows Chevignon, Chopard, Frank Muller, Guess, Hogan, Boss and many other international Labels.

Macao locationgroup research | Retail Market Study 2012

371

80 Hong Kong, Abercrombie & Fitch wins central district space for the brand’s Hong Kong debut .

HONG KONG is a metropolis and a special administrative zone that is located on the southern coast of China. The city’s Central district in the northern part of the island of Hong Kong is its financial and business district. The most densely populated district and the city’s cultural centre is Kowloon peninsula to the south of the New Territories region. Hong Kong, which is spread across a peninsula and 262 islands at the mouth of the Pearl River, was a British crown colony until 30 June 1997 and was by treaty returned to China on 1 July 1997.

Hong Kong is China’s third most populous metropolitan region, and greater Hong Kong, with 16 000 inhabitants per square kilometre, is the world’s most densely populated area after Monaco – although the population density of Hong Kong as a whole is only 6,700 inhabitants per square kilometre. Hong Kong’s population has increased by a factor of 12 over the past six decades, from 600,000 in 1945 to 7 million in 2005.

Burberry opens 17th boutique in Silvercord mall in Hong Kong’s Tsim Sha Tsui district In November 2011, Burberry opened its 17th Hong Kong store in a 500 square metre space at the ritzy Silvercord mall on Canton Road the Tsim Sha Tsui district. This is also Hong Kong’s first street-level store with LED screen walls on its exterior facade.

The French designer-shoe retailer Roger Vivier opened a new shoe outlet in Kowloon’s Harbour City in November 2011, which is Hong Kong’s largest shopping mall. The 85 square metre store is the company’s second in Hong Kong.

The jewellery retailer Harry Winston, which is owned by the Watches Group and DKHS, opened a new store on 9 November 2011 at Hong Kong’s Austin Road West 1.

Hong Kong Panorama

372

locationgroup research | Retail Market Study 2012

Hollister debuts in Asia Hollister opened its first Asian store in August 2011 in a 930 square metre space at Kowloon’s Festival Walk mall on Tat Chee Avenue.

Abercrombie & Fitch wins central district space for the brand’s Hong Kong debut The retail market in Hong Kong continues to boom, and since space is a precious commodity in the notoriously jam-packed city, a real estate battle recently broke out between Hong Kong’s very own Shanghai Tang and the American casualwear brand Abercrombie & Fitch. After the dust settled, Abercrombie & Fitch emerged victorious, though rent for the location – smack dab in the middle of the city’s Central district – rose by 250 %, to 7 million HK-Dollar (USD 900,000) per month.

The current tenant Shanghai Tang’s lease expired and the owners, the Fok family, opened the property to bidding in Spring 2011 immediately gaining several brand inquiries. In March 2011 two brands entered a final bidding stage, with the American brand Abercrombie & Fitch and a French label owned by the Swiss luxury Richemont Group, which also owns Shanghai Tang, entering into a bidding war. Previously, the Richemont Group was thought to be the favorite, due to the many years Shanghai Tang leased the premises, but A&F offered more than its competitor, who, in the end, had to give way.

Harbor City Mall, Hong Kong locationgroup research | Retail Market Study 2012

373

Gucci & Louis Vuitton Canton Road, Hong Kong

Pedder Building, Central Hong Kong

374

locationgroup research | Retail Market Study 2012

Unlike any other space in the Central district A&F’s determination to win its bidding war pushed the monthly rent to 7 million HK-Dollar, about 2,5 times higher than the current monthly rent of about 2 million HK-Dollar. The site includes a 585 square metre ground floor and a 595 square metre basement, for a total of 1 180 square metres.

Gap expansion into China continues apace In late November 2011, the US retailer Gap opened a four-level 1 389 square metre store in the LHT Tower on Queen’s Road. Gap also opened a 7,000 square metre store at Hysan Place. In the interest of achieving its goal of expanding its store fleet in China in record time, Gap plans to shutter up to 190 of its US stores so that it can focus on its Chinese expansion programme. Gap is aiming to open 30 stores in China by the end of 2012.

Burberry comes to Queensway Burberry will be opening a new flagship store on Hong Kong’s Queensway during the latter half of 2012. The new store, which rents for around US$ 230,000 a month, will have 1 950 square metres of floor space spread across two levels. Next door to the future Burberry store, on 18 October 2011, Harvey Nichols (and its local franchisee Dickson Concepts) moved in to a 7,700 square metre space in which an estimated US$ 19 million was invested.

space on Causeway Bay’s Russell Street, where the rent will be US$ 836,000 a month.

Forever 21 comes to Causeway Bay In 2012, the US fashion chain Forever 21 will be opening a six-level 4,738 square metre store in Causeway Bay, the company’s first in this area. The rent will be US$ 300 per square metre.

Elie Saab expanding worldwide In January 2012, the Lebanese retailer Elie Saab will be opening its first Asian store in a 65 square metre space at Landmark Mall, where retailers such as Dior, Dolce & Gabbana, Gucci, Miu Miu, Ralph Lauren, and Tiffany also have outlets. The company plans to open ten additional stores by the end of 2012 in markets such as Saudi Arabia, Russia, Turkey, the US, London, Dubai, and Beirut.

Solange Azagury-Partridge debuts in Hong Kong In December 2011, Solange Azagury-Partridge (part of the Labelux Group) opened its first Hong Kong boutique on the third level of IFC Mall in the city’s Central district.

Solange Azagury-Partridge is famous for her HotLips ring and that geometric Art Deco-ish necklace Sarah Jessica Parker as Carrie Bradshaw was wearing in the opening scene of the second installment of the “Sex And The City” movie.

A new Burberry flagship store coming to Causeway Bay Burberry will be taking over Nokia’s 483 square metre split-level

Festival Walk Mall, Hong Kong locationgroup research | Retail Market Study 2012

375

Gap Queens Road, Hong Kong

Louis Vuitton Landmark, Hong Kong

376

locationgroup research | Retail Market Study 2012

Causeway Bay Hong Kong

Elie Saab Landmark Hall, Hong Kong

locationgroup research | Retail Market Study 2012

Solange Azagury-Partridge IFC Mall, Hong Kong

377

81 Taipei, Luxury brands to expand in Taiwan .

Ximending has been a famous area for shopping and entertainment since the 1930s. Historic structures include a concert hall, a historic cinema, and the Red House Theater. The pedestrian area is especially popular with teens and has been called the “Harajuku” of Taipei.

The newly developed Xinyi District is popular with tourists and locals alike for its many entertainment and shopping venues, as well as being the home of Taipei 101, a prime tourist attraction famous for being one of the world‘s tallest buildings. Malls in the area include the sprawling Shin Kong Mitsukoshi complex, Taipei 101 mall, Eslite Bookstore‘s flagship store (which includes a boutique mall), The Living Mall and the New York shopping mall. The Xinyi district also serves as the center of Taipei‘s active nightlife, with several popular nightclubs concentrated in a relatively small area around the Neo19 and Taipei 101 buildings.

Taipei Skyline

TAIPEI CITY is the capital of the Republic of China (ROC, commonly known as Taiwan) and the central city of the largest metropolitan area of Taiwan island. The city proper (Taipei City) is home to an estimated 2,6 million people. Taipei, New Taipei, and Keelung together form the Taipei metropolitan area with a population of 6,9 million. “Taipei” sometimes refers to the whole metropolitan area, while „Taipei City” refers to the city proper. Taipei City proper is surrounded on all sides by New Taipei.

Taipei is known for its many night markets, the most famous of which is the Shilin Night Market in the Shilin District. The surrounding streets of Shilin Night Market are extremely crowded during the evening, usually opening late afternoon and operating well past midnight. Most night markets feature individual stalls selling a mixture of food, clothing, and consumer goods.

Ximending Teipei

378

The thriving shopping area around Taipei Main Station includes the Taipei Underground Market and the original Shin Kong Mitsukoshi department store at Shin Kong Life Tower.

Luxury brands to expand in Taiwan Upscale jewellery houses and luxury watch brands are gearing up for expansion in Taiwan in 2012 CENS.com reported.

According to the report, Swiss luxury goods group Richemont has hired additional staff in the second half of the year in keeping with its expansion plans in Taiwan. Richemont’s portfolio of brands includes Cartier, Vacheron Constantin, Jaeger-Le Coultre, Piaget and Montblanc.

Strong demand in Asia-Pacific and the Americas lifted Richemont’s profit for the six months ending on 30th September 2011, with sales surging 10 % to US$ 944,8 million. According to the company, growth in the Asia-Pacific region was primarily driven by China,

Shin Kong Mitsukoshi Taipei locationgroup research | Retail Market Study 2012

which is now Richemont’s third-largest market after Hong Kong and the US. Louis Vuitton, Dior, Bulgari and Prada will also be opening boutiques in Taiwan’s posh Taipei 101 shopping mall, CENS. com added.

Lamborghini Opens Taiwan’s First Fashion Store in Taipei Lamborghini opened its first fashion store in Taipei in October 2011 in the exclusive boutique at Bellavista shopping center. This boutique is dedicated exclusively to the “Collezione Automobili Lamborghini” fashion collection.

The Taiwan premiere for Automobili Lamborghini’s boutique adds to its core markets, for the company’s fashion brand alongside the USA, Europe and Asia.

Leica store premiere opening in Tapei The Leica store grand opening event was held in January 2011. The first Leica store in Taiwan is located in the premium and luxury shopping mall Bellavita.

Leica Bellavista, Taipei

Zara comes to Taipei Zara which was founded by Inditex opened its first Taipei store in November 2011 in a new 2,314 square metre space at Tapei’s Landmark Building 101.

Uniqlo opens sixth flagship store worldwide Uniqlo’s new flagship store is in Taipei’s Ming Yao Department Store on Zhongxiao E Road, in a three-level 3,630 square metre space.

The retailer plans to open 30 stores a year in Taiwan in pursuit of their ultimate goal of having a 100-outlet fleet in Taiwan.

Bellavista Shopping Center, Taipei locationgroup research | Retail Market Study 2012

379

82 Manila, Uniqlo – Japan’s leader of casual clothes is coming to Manila .

MANILA is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila, which is located on the eastern shores of Manila Bay and is flanked by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast, and Pasay to the south.

Manila has a total population of more than 1,7 million and is the second most populous city in the Philippines, behind its neighbour, Quezon City. The populace inhabit an area of only 38,55 square kilometres, making Manila the most densely populated city in the world. Metro Manila is the most populous metropolitan area in the Philippines and the 11th in the world with an estimated population of 16,3 million. The greater urban area is the fifth-largest in the world and has an estimated metropolitan population of 20,7 million people.

Manila Skyline

Louis Vuitton Greenbelt, Manila

380

locationgroup research | Retail Market Study 2012

Re-opening of Louis Vuitton Store Louis Vuitton proudly announced the re-opening of its store at Greenbelt Shopping Mall in October 2011. The newly expanded store, which underwent a 15-month renovation, doubled the selling space from 175 square metres to 402 square metres and now includes a private salon for top clients, a feature included only in select boutiques. The Philippines is among the Top 30 markets of Louis Vuitton.

The store first opened in 2003 on Makati Avenue. Louis Vuitton has always been one of the most popular anchor brands of the premier shopping arcade in Makati. The new store was transformed into a two-level luxury retail space. A few short steps lead up to the mezzanine floor where a dedicated Men’s Area is located. The main staircase leads down to the Women’s Universe featuring a vast variety of leather goods, shoes, and accessoires.

Benefit Cosmetics Greenbelt, Manila

Salvatore Ferragamo opens at Greenbelt 4 mall Renovation having been completed, the Italian fashion retailer Salvatore Ferragamo opened its boutique at Greenbelt 4 mall in late December 2011.

Pandora opened concept store The jewellery brand Pandora has opened their first Pandora concept store in Makati’s Greenbelt, in February 2011. The store

presents an exquisite selection of earrings, rings, and necklaces, as well as the charm bracelets that have put Pandora on the map.

Benefit Cosmetics – New Make-up Paradise in Manila Benefit Cosmetics founded and headquartered in San Francisco, California, has also opened its first store at the ground floor of Greenbelt in December 2011. The company, founded in the 70s by

Greenbelt Mall, Manila locationgroup research | Retail Market Study 2012

381

one of the largest in all of Asia. The mall was completed in 1991 on a 10.5 hectare campus and the Megamall Atrium was added in 2008. The SM Megamall is currently a two-wing, five-storey building complex with 348,000 square metres of floor space, 550 stores and restaurants, a 12-theatre multiplex cinema, and a parking lot for 2,702 cars.

The SM Megamall was the Phillippines’ largest shopping mall until the SM Mall of Asia opened in May 2006.

Seagate opens flagship store The US hard drive and tape drive maker Seagate Technology LLC which is headquartered in Scotts Valley, California opened its first Manila store in 2011.

World Record of Mentos Soda Geyser Fountain, SM Mall of Asia

twins Jean and Jane Ford, is known for its quick-fix solutions to beauty problems and playful packaging that stands out from other high-end brands.

Thomas Sabo opened new boutique in Rockwell Center In May 2011 Thomas Sabo opened a new boutique on the second floor at Powerplant Mall in the Rockwell Center. The centre is a four-level complex with a mix of special brands, both international and local, a supermarket, lifestyle retailers, boutiques and restaurants. Thomas Sabo, which started out in Germany and has outlets throughout Europe, America and Asia, is expanding now in Manila.

New openings at SM Megamall The SM Megamall, which SM Prime Holdings holds a majority share of, is currently the third largest mall in the Philippines and

The concept store is the first retail outlet in the Asia Pacific region, to showcase and sell Seagate’s complete product range from enterprise storage, desktop and notebookes, drives to external storage solutions and accessories.

Paris Hilton to open 4th boutique in the Philippines American socialite and hotel heiress Paris Hilton opened her fourth boutique at the SM Megamall in Mandaluyong City. Paris Hilton Handbags and Accessories also has branches in Resorts World Manila in Pasay City, Robinsons Place-Ermita in Manila, and Abreeza Mall-Davao in Davao City.

Uniqlo, Japan’s leader of casual clothes is coming to Manila The Philippines’ largest retail chain, SM Retail, has entered into a joint-venture with Japan’s Fast Retailing Corp. Based on their agreement, the new company will be established in the Philippines at year’s end, and the first Uniqlo store will open in the SM Mall of Asia complex in 2012.

Tretorn opened its third flagship store worldwide The classic shoe brand Tretorn opened its third flagship store in the world, at Manila’s popular Mall, Robinson Galleria. Now in its 120th year, Tretorn is expanding to Asia and opened the new store in June 2011. Tretorn, originally from Sweden, is the classic shoe brand known for its simple design and comfortable fit.

Papa John’s Pizza new in Robinson Galleria Papa John‘s Pizza is the third largest take-out and delivery pizza restaurant chain in the United States, behind Pizza Hut and Domino‘s Pizza. It is based in Louisville, Kentucky.

SM Megamall Manila

382

locationgroup research | Retail Market Study 2012

In January 2011, Papa John’s opened its first restaurant at Robinson Galleria, and is now preparing to open a second branch (in 2012), which will be located at University Mall on Taft Avenue. There are more than 3,300 Papa John‘s restaurants worldwide.

TopShop re-opened The TopShop/Topman flagship store re-opened in May 2011, at Robinson’s Galleria, in Manila. The new store is the largest of all TopShop/Topman stores and it carries items not available in other stores, worldwide.

Highlands Coffee – Expansion Plans for Philippinas Vietnamese coffee house Highland Coffee will soon open its first outlet in the Philippines in 2012. Highlands Coffee was founded by David Thai in 1998 in Hanoi and is Vietnam‘s fastest-growing coffeehouse company.

Highlands Coffee is a registered brand of Viet Thai International Joint Stock Company, and also owns franchising rights for several brands in Vietnam such as Aldo Shoes, La Vie en Rose lingerie, Nike and Hard Rock Cafe. The coffee chain is on track to expand to a total of 100 outlets by end of 2012, throughout the Phillippines.

SM Mall of Asia

Jamba Juice debuts in Metro Manila Jamba Juice, the California-based chain of smoothie cafes, has opened its first store in the Philippines. The first cafe at Bonifacio Global City‘s High St. South, an urban community in Metro Manila, opened in November 2011.

Jamba Juice and Max‘s Group has agreed to set up 40 stores in the next 10 years. Jamba Juice has also nine franchises in South Korea and one in Canada. In the US, it has 752 stores, 310 of which are company-owned, and 442 of which are franchised stores.

Trendy clothing retailer Forever 21 opened its second Manila store, in April 2011, after the first opening in July 2010 at SM Mega Mall.

The new store is located at the SM Makati Shopping Centre on the ground floor, with a 2,000 square metre retail shop.

Paris Hilton at here store opening, SM Megamall Manila

Hello Kitty by Victoria Casal Couture comes to Manila With its Hello Kitty by Victoria Casal Couture line, the French prêtà-porter label will definitely stir the Parisian fashion frenzy in Manila. They opened its first flagship boutique in Forbestown Centre in January 2011.

Uniqlo Opening Queue, SM Megamall Manila locationgroup research | Retail Market Study 2012

383

Shanghai

83 Shanghai, Louis Vuitton marks the 20th anniversary of its presence in the Chinese market .

SHANGHAI China’s most important industrial city, has 23 million inhabitants, 15,9 million of whom are officially permanent residents, while the remainder are temporary residents with limited residency permits. The centre of Shanghai, which displays a high density of buildings and is self-enclosed, has 15,1 million inhabitants, while the population of the greater Shanghai area is 24,8 million.

With more than 28,4 million TEU (twenty-foot equivalent units) annually, Shanghai is the world’s second largest container port after Singapore (29 million TEU). In terms of total cargo handled (537 million tons), Shanghai is the world’s largest port.

Malls, The Bund and Nanjing Road Shanghai’s 13-level Super Brand Mall hosts the outlets of myriad international retailers, including (to name but a few) Calvin Klein, H&M, Hilfiger, Zara, Lacoste, C&A, West, Esprit, Guess, Mango,

Starbucks, Geox, Ecco, Swatch, Tissot, and Timberland. The mall, which also offers a broad range of restaurants, is extremely well frequented, and on weekends the number of visitors increases substantially.

IFC Mall: Luxury par excellence (by Christian Mikunda) “Selling as an art form” is how Mikuda refers to phase 4 of his journey through time in the world of Shanghai shopping, which offers the Uniqlo doll elevator, as well as architecture, art and spectacular entertainment.

But the absolute highlight of the journey was the brand-new IFC Mall, which is harmoniously and almost invisibly embedded in Pudong’s high-rise skyline. After passing through the mall’s temple facades, you almost feel as though you are in an opera house. You

Shanghai Skyline locationgroup research | Retail Market Study 2012

385

Hermès, Salvatore Ferragamo, Dolce & Gabbana, Prada, Miu Miu, Burberry, Tiffany, and Christian Dior in residence. The mall’s loop architecture avoids cul de sacs. The upper levels host another 150 stores or so, most likewise of international provenance, including Shanghai’s first Dsquared which opened in January 2011 in a 170 square metre space.

The Apple store at the Pearl Court exit counts as a kind of psychological bonus, for unlike the New York Apple store with its glass cube rising out of the ground, the IPC variant comprises a striking glass cylinder through which you enter the store via a staircase.

Super-Brand Mall, Shanghai

do not realise at first that the mall has six levels, for what you see instead is luxury in its purest form.

The IFC Mall may well have a higher concentration of luxury retailers than any other shopping venue on earth, what with the likes of Louis Vuitton, Cartier, Bottega Veneta, Gucci, Bulgari, Chanel, Ermenegildo Zegna, Piaget, Chopard, IWC, Alfred Dunhill, Celine,

The Pudong skyline Both the ritzy IFC Mall and the more consumer goods oriented Super Brand Mall are located in the Pudong district, east of the Huangpu River.

It is said of this district, which was built from the ground up over a two-decade period that its charm is to be found on the opposite side of the river. But this is untrue, for Pudong’s skyline is Shanghai’s most distinctive feature and its veritable calling card.

Harry Winston debuts at The Bund’s Peninsula Hotel Harry Winston will be opening a 460 square metre boutique at the ritzy 5-star Hotel Peninsula in January 2012. The hotel’s shopping

IFC Shopping Center Shanghai

386

locationgroup research | Retail Market Study 2012

area also features Chopard, Prada, and Ralph Lauren, among others. Located in Shanghai’s historic Bund, the Peninsula Shanghai has a view of the Huangpu River.

In September 2011, the Swiss watch company Rolex moved into Shanghai’s House of Roosevelt in The Bund, where this world market leader has an 800 square metre space and is in the best of company.

Nanjing Road is the main shopping street of Shanghai and is one of the world‘s busiest shopping streets. Today‘s Nanjing Road comprises two sections, Nanjing Road East and Nanjing Road West.

Nanjing Road East East Nanjing Road is a dedicated commercial zone. At its eastern end is the central section of the Bund, featuring the Peace Hotel. Immediately west of the Bund precinct was traditionally the hub of European-style restaurants and cafes, although in recent years, these have become less of a feature as the demographics of visitors to Nanjing Road have shifted from affluent local residents to visitors from around the country.

Skyline Pudong, Shanghai

Further west is the Nanjing Road pedestrian mall. Located here are most of Shanghai‘s oldest and largest department stores, as well as a variety of domestic retail outlets, and some traditional eateries with a long history.

Apple Store IFC, Shanghai locationgroup research | Retail Market Study 2012

387

Nanjing Road West The pedestrian mall and East Nanjing Road ends at People‘s Park, formerly the Shanghai Race Course. Opposite the park are some of Shanghai‘s prestigious historic hotels, including Park Hotel. West Nanjing Road begins here, and features a number of upmarket malls, office buildings, the Shanghai Exhibition Centre, and shops.

This area is now host to several five star hotels, upscale shopping centers, restaurants and prime office buildings.

The Bund Shanghai

Apple opens second Shanghai store In September 2011, Apple opened a new flagship store on Shanghai’s East Nanjing Road, where the US consumer electronics retailer has a three-level 1,500 square metre space containing everything an Apple fan’s heart could desire. 300 Apple employees (to serve 40,000 Chinese customers each day) and over 500 people were there to celebrate the grand opening. The crowd began lining up at the store on the corner of Henan Middle Road and East Nanjing Road.

WE comes to Shanghai In late January 2011, WE opened a 2,000 square metre store on East Nanjing Road near the new Apple store, and the following day opened its second store in a 1,500 square metre space in Chongqing.

WE plans to open 200 additional outlets in China over the next five years.

Milus debuts on Nanjing Road West In May 2011, the Swiss watch retailer Milus opened a new store at Nanjing Road West 11 in Shanghai.

Piazza Sempione new at Citic Square Piazza Sempione‘s store opening in Shanghai is located in the Citic Square shopping centre on Nanjing Road in Shanghai with a retail space of 100 square metres. The Italian label plans to open 10 more units in the country over the next three years.

Nanjing Road East is visited by 1 Million pededstrians per day

The House of Roosevelt, Shanghai

388

locationgroup research | Retail Market Study 2012

Uniqlo Flagship Store Nanjing Road West, Shanghai

IWC Shanghai store opening, impeccable watch experience Recently, the internationally known luxury watch brand IWC Schaffhausen opened the third and fourth store respectively grand opened in Pudong Babaiban respective on Nanjing West Road across the Huangpu River.

Gucci’s new Flagship Store in Golden Eagle Center Set in the heart of Shanghai in the suitably titled Golden Eagle Center, Gucci’s latest flagship has opened in June 2011 on 1,600 square metres, split on two floors. Inside it is very spacious and cozy and reflects the luxury merchandise market in China’s dedication and commitment regarding Gucci.

Plaza 66 is the tallest building in Pu Xi of Shanghai The building has 66 floors, which is why it was named Plaza 66.

There is a luxury shopping centre from the first floor to the fifth floor and it is usually regarded as the leader of the fashion in Shanghai.

Many fashion brands have chosen this department store as the location for their flagship stores in Shanghai. They include Louis Vuitton, Hermès, Cartier, Chanel, Dior, Celine, Escada, Bulgari, Fendi, Loewe, Prada, Versace, Lanvin, etc.

Milus Nanjing Road West, Shanghai locationgroup research | Retail Market Study 2012

389

Louis Vuitton 20 years in China Louis Vuitton will celebrate its 20th anniversary in China with the re-opening of their Shanghai Plaza 66 flagship store. Under renovation for a year, when re-opened it will be Vuitton’s biggest store in China and knowing Vuitton, the store façade will be nothing short of a spectacular blend of architecture and lighting.

The L’Avenue LVMH project opens 2012 2012 will also see LVMH open their own luxury mall project in Shanghai. A joint venture with Macao Casino magnate Stanley Ho, The L’Avenue project in West Shanghai will house the entire line-up of LVMH brands, as well as an A-grade office building.

Escada debuts at Times Square Centre In September, the luxury retailer Escada opened a store at Shanghai’s Times Square Shopping Centre in a 220 square metre space that carries the entire range of the Escada collection.

Vivienne Westwood opens first boutique In October 2011, Vivienne Westwood opened its first Shanghai flagship store, at Grand Gateway Mall, and plans to open an additional 40 stores in Shanghai over the next three years.

Gucci Golden Eagle, Nanjing Road Shanghai

Citic Square Mall, Shanghai

390

locationgroup research | Retail Market Study 2012

Plaza 66 Nanjing Road, Shangai

Louis Vuitton construction site at Plaza 66, Shanghai locationgroup research | Retail Market Study 2012

391

Shanghai to get Disney store in 2013 Walt Disney Company said that they planned to open their first store in mainland China in 2012 as it moves to further expand its presence in the fast-growing market.

The US entertainment giant said its strategy would be to secure locations in upscale shopping centres and department stores, where it will open Disney Stores similar to those in Europe and North America.

The Shanghai Disneyland will be the US entertainment giant’s third theme park in Asia, after those in Tokyo and Hong Kong.

Marks & Spencer will open more stores The British-based apparel and luxury food retailer Marks & Spencer Group Plc (M&S) intends to open more stores in Shanghai to increase its market presence. Its latest outlet will cover an area of 3,700 square metres in the City Centre shopping mall in the city‘s changing district.

According to a company statement, M&S plans to build a strong presence in the Shanghai region as one of its priority international markets. M&S opened its first store in Shanghai in 2008, and it currently operates four outlets in China – three in Shanghai and one in Ningbo, Zhejiang province.

Escada Times Square Opening, Shanghai

LVMH L’Avenue Construction Site 2011, Shanghai

392

locationgroup research | Retail Market Study 2012

Pacific Department Store in Xu Jia Hui, Shanghai locationgroup research | Retail Market Study 2012

393

Disney Shanghai Rendering

Media Markt Shanghai

Ikea store the size of six soccer fields In June 2011, the Swedish homeware and furnishings retailer Ikea opened its second largest store in Beicai Town, a 50,000 square metre space – the equivalent of nearly six soccer fields. Ikea plans to open six additional stores by 2015.

Media Markt expanding In December 2011, Media Markt, Europe’s largest consumer electronics chain, opened its fourth Shanghai store in a three-level 8 500 square metre space at Shunheng International Commercial Plaza. Ten additional Media Markt stores are slated for opening in Shanghai by the end of 2012.

Ermenegildo Zegna & Louis Vuitton Huaihai Road, LippoPlaza Shanghai

394

locationgroup research | Retail Market Study 2012

84 Seoul, Uniqlo registers sales of 1,3 million euro on opening day .

SEOUL, officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world.

The Seoul National Capital Area is the world‘s second largest metropolitan area with over 25 million inhabitants, which includes the surrounding Incheon metropolis and Gyeonggi province. Over half of South Korea‘s population lives in the Seoul National Capital Area, and nearly a quarter in Seoul itself, making it the country‘s foremost economic, political, and cultural centre.

The largest market in South Korea, the Dongdaemun Market, is located in Seoul. Myeongdong is a shopping and entertainment area in downtown Seoul with mid- to high-end stores, fashion boutiques and international brand outlets. The nearby Namdaemun Market, named after the Namdaemun Gate, is the oldest continually running market in Seoul. Sinchon is a shopping area that caters mainly to a younger and university student crowd.

Seoul Skyline

Dongdaemun Market Seoul locationgroup research | Retail Market Study 2012

395

Shopping in Seoul Insadong is the cultural art market of Seoul, where traditional and modern Korean artworks, such as paintings, sculptures and calligraphy, are sold. Itaewon caters mainly to foreign tourists and American soldiers based in the city.

The Gangnam district is one of the most affluent areas in Seoul and it is noted for its fashionable and upscale Apgujeong-dong and Cheongdam-dong areas and the Coex mall. The Yongsan Electronics Market is the largest electronics market in Asia.

Louis Vuitton opened first ever Airport Store in Seoul In September 2011, the first ever Airport store of Louis Vuitton opened in Incheon International Airport.

Louis Vuitton Aiport Seoul

The new store is 550 square metres and is dedicated to Louis Vuitton’s passion for travel. The store features leather goods, women’s and men’s shoes, watches, belts, ties, textiles, fashion jewelery, sunglasses, watches and other luxurious accessories.

Lotte Seoul

396

locationgroup research | Retail Market Study 2012

First Bogner flagship store at Lotte Department Store In November 2011, Bogner opened its first flagship store at Lotte Department Store on Cheongdamdong/Kangnam. The retailer plans to open two additional stores in Hong King and China in the coming months.

Miu Miu store opened at World Duty Free Shopping Centre In December 2011, the internationally renowned luxury retailer Miu Miu opened an 80 square metre store at Lotte World Duty Free Shopping Centre. Miu Miu is a member of the Prada Group, as are Church’s, Prada, and The Original Car Shoe.

Miu Miu Lotte Duty Free, Seoul

Christian Louboutin The first Christian Louboutin store in Korea opened in the fashionable district of Chongdam-dong, southern Seoul, in Spring 2011.

Steve J & Yoni P The brand Steve J & Yoni P flagship store opened in April 2011 at 1F-2F, Hannam-Ding, Yongsang-Gu. Always full of humour and wit, they are offering high-end casual wear based on the fine arts, its sophisticated cuts and sense of rich colour rise above the crowd.

Steve and Yoni were at the 2008 London Fashion Week with British punk sensibility, and since 2010, they have been working in Seoul.

Steve J’s moustache and Yoni P’s eyelashes make up the logo, which openly reveals what they aspire to. The practical clothing mixed with high fashion and casual looks that are great for everyday life continue to gain popularity.

Christian Louboutin Boutique locationgroup research | Retail Market Study 2012

397

A.P.C has opened their 4th boutique in South Korea The French ready-to-wear brand A.P.C. has opened their 4th flagship store in South Korea.

Adidas launched women’s store concept In March 2011, Adidas launched their first women’s concept store in Seoul, in Cheongdam-dong fashionable district. The 164 square metre store was designed by Hong Kong’s firm StartJG. Donna Karan opened in the Cheongdamdong District In August 2011, DKNY has opened the first 400 square metre store in the Cheongdam-dong fashionable district, in Seoul. The street is also known as “Fashion and Art Street”, which has 50 shops for imported foreign brands, local fashion designers’ shops, and 30 galleries.

Philip Lim Store Seoul

Uniqlo registers sales of 1,3 million euro on opening day Uniqlo (a member of the Fast Retailing Group) opened a 3,966 square metre store at Myeongdong Central, the company’s second largest store after its outlet on New York’s Fifth Avenue.

The new store registered sales of 1,3 million euro on its opening day, a record in the annals of Korean retailing.

Spanish Inditex Group Expansion in Seoul Bershka, a retailer and part of the Spanish Inditex Group, has opened its first store on the Asian market on the 26th August, in the D-Cube City shopping centre, in Seoul.

Spanish Inditex also owns the brands Zara, Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Zara Home.

South Korea is looking forward to welcoming their first IKEA Store The Scandinavian home products company will take place in Gwangmyeong, with their first store in South Korea. The 79,198 square metre store will be opening in 2013.

Uniqlo Opening Seoul

398

locationgroup research | Retail Market Study 2012

85 Beijing: Season’s Place Mall features over 600 stores, most of them luxury brands .

BEIJING, the capital city of China, was founded more than 3 000 years ago. Its name means “northern capital”. Beijing is governed by the central government, and is thus on a par with the country’s other administrative entities in this regard.

Beijing, which has 17,6 million inhabitants, comprises a single conurbation, but with its predominantly rural settlement structure it is more province-like.

Season’s Place Mall features over 600 (most) luxury brands Financial Street on the west side of Beijing witnessed the grand opening of Season’s Place in October 2007, a luxury shopping mall that’s giving Shin Kong Place on the east side of Beijing a run for its money.

Season‘s Place Mall features over 600 brands, including high-end labels from both Europe and America like Louis Vuitton, Dior, Gucci, Versace, Salvatore Ferragamo, Prada, Stella McCartney, Emilio Pucci, Maison Martin Margiela, Alexander McQueen, Marni, Miu Miu and Givenchy. The shopping centre also houses the only Lane Crawford in the city, a popular Hong Kong-based chain that sells high-end designer labels in a chic atmosphere.

Beijing Central Business District

Lane Crawford at Season’s Place, Shop L130, Season’s Place Shopping Centre, 2 Jinchengfang Street, Xicheng District, Beijing, China Lane Crawford, Hong Kong’s leading specialty store, opened its first store in Beijing in October 2007. As the first luxury, multibrand specialty store of its kind, the Beijing store offers customers unparalleled shopping experiences, world-class services, and,

Beijing Skyline locationgroup research | Retail Market Study 2012

399

uniquely, own-bought merchandise. Located in Beijing’s Season’s Place Shopping Centre, the 7,400 square metres store features more than 600 brands. More than 50 % of the store’s brand portfolio was new to the Beijing market when the store opened, many of the brands remained to be exclusively available in Beijing. Time Magazine also recognised the store as one of the top 100 designs in its The Design 100 edition in the same year.

Bell & Ross opens its first store in Shop L120, Seasons Place Shopping Mall The Franco-Swiss brand that creates watches for professionals inspired by airplane instrument panels continues to pursue its international development. The brand opened its first boutique in Beijing, China, in September 2011, a strategic step for the brand that attests to its dynamic international growth.

Wangfujing Road sister street of Champs-Élysées As the most famous commercial area of Beijing, Wangfujing is located at the northern side of Changan Avenue at the center of the city.

Lane Crawford Season’s Place Mall, Beijing

Season’s Place Mall, Beijing

400

locationgroup research | Retail Market Study 2012

With a long history of more than 700 years, it came into being in the Yuan Dynasty. In the middle of the Ming Dynasty, there was the earliest business activity. Wangfujing became a commercial center when the Dong An Market was founded here in 1903.

The street is less than one kilometre long, but it is crowded with specialty and long-history shops, which are full of modern atmosphere and high taste. Nowadays, it is considered the sister street of Champs-Élysées in France. Besides of its modern feature, the street also preserves the Chinese traditional style, such as the Oriental Plaza, Gongmei Building, Wangfujing Department Store, Muslim Building, Sun Dong An Plaza and so on. The street sees 500,000 people everyday absorb its attractive charm.

New Swatch flagship store opens on Wangfujing Road Swatch’s new flagship store had a grand opening in the most prestige avenue Wangfujing Street at the beginning of December 2011.

The new image flagship store is the biggest store of Swatch in Beijing.

Lotte Departent Store Wangfujing Street, Beijing

China World Trade Centre is a 3,6 hectare urban development area located in the centre of Beijing’s business district.

This area, which is around five kilometres east of the Forbidden City, is home to Skidmore, Owings and Merrill’s China World Trade

China World Trade Center, Beijing locationgroup research | Retail Market Study 2012

401

ly relaunched as “China World Mall”. In 2010, with the addition of Phase 3, China World Mall commands a total size of 100,000 square metres GFA, 50,000 square metres of leasable area, featuring over 300 specialty shops.

As the hub of China World, the China World Mall seamlessly integrates every component of the development. With ground-level entry points from all four directions it is easily accessible from the East Third Ring Road, Guanghua Road, the Kerry Centre and the China World Exhibition Hall.

Fendi, Henry Cottons, Max & Co, Moncler and Giuseppe Zanotti opened in China World Shopping Mall Phase I, squeezing out a number of poorly performing retailers; Joyce, a luxury retailer from Hong Kong, opened in China World Shopping Mall Phase III with a GFA of 2,000 square metres.

Jinhua Watch CEO Liu Zhongyang, Hublot CEO Mr. Biver, Mr. Jet Li (Movie Star) at the Hublot Wangfujing Opeing

Centre Tower II. This 330 metre high structure, which is Beijing’s tallest building, has 74 floors, 540,000 square metres of usable space, and 30 elevators. More than 10,000 persons work in the tower.

China World Shopping Arcades Being an integral part of China World Trade Center, China World Shopping Arcade was openend in August 1990 and was among the first in the city of Beijing to introduce the “Shopping Mall” concept.

Throughout the expansion in 1997 and by May 2000, it was proud-

Milan-based Etro and Hogan open flagship stores at World Shopping Mall In November 2011, Etro, which also partners with the Hong Kong retailer Jocey, opened its largest flagship store in a 350 square metre space at Beijing’s World Shopping Mall. Retailers such as Adidas, Alexander McQueen, American Apparel, Apple, Burberry, and Bulgari also have outlets at the mall.

In this same month, the Italian fashion retailer Hogan (a member of the TOD Group) opened its first Beijing store in a 170 square metre space. Hogan also has one store each in the Chinese cities of Harbin and Wuhan.

CCTV & TVCC Centres, Beijing

402

locationgroup research | Retail Market Study 2012

Sanlitun Village South, Beijing

Sanlitun Village is a shopping centre in Beijing, China. It comprises 19 buildings on two sites, a few minutes walk from each other.

The Piazza (Village South) The centre opened in July 2008 and features 140 stores, dining outlets and services including Adidas, Apple, C.P.U., Crocs, Esprit, Fossil, Havaianas, Lacoste, Levi‘s, Mango, Puma, Reiss, Steve Madden, Uniqlo and many others.

The Deck (Village North) The development also includes a high-end retail area called Village North located a few minutes walk from Village South. The area includes designer brands like Alexander McQueen, Balenciaga, Balmain, Lanvin, Maison Martin Margiela, Marni, Miu Miu, Montblanc, Versace, Rolex, and I.T Beijing Market Comme des Garcons.

In addition to fashion, the retail offering includes a selection of art galleries focusing on avant-garde and contemporary Chinese and international artists.

Sanlitun Village plays host to major Italian brands In early November 2011, Marni opened its largest Chinese store at Sanlitun Village, in a split-level 550 square metre space. Versace opened a store here too, in a 500 square metre space next door to Marni, while the Milan sportswear and down retailer Moncler rapidly moved forward with its expansion efforts by likewise opening a new outlet at Sanlitun Village in a 516 square metre space.

China World Trade Center Mall, Beijing locationgroup research | Retail Market Study 2012

403

Alexander McQueen and Alexander Wang The designer apparel company Alexander McQueen, which was founded in 1993, opened its first Chinese store in November 2011 in a split-level 400 square metre space. In the spring of 2012, the US fashion retailer Alexander Wang opened its first Chinese store as well, next door to Alexander McQueen, in a split-level space.

D2, Juicy Couture and Lanvin The fashion retailer Dsquared, which is owned by the Canadian twin brothers Dean and Dan, opened a new flagship store at Sanlitun Village as a joint venture with their Hong Kong franchise partner the Joyce Group. The new 500 square metre store is directly adjacent to Alexander Wang and Alexander McQueen. Maison Martin Margiela, a member of the Diesel Group, opened a 540 square metre flagship store at Sanlitun Village.

The Deck Village North, Beijing

In January 2011, the French retailer Lanvin likewise made its debut at this mall, in a 560 square metre space, and now has Alexander McQueen, Alexander Wang, Versace, and Dsquared for neighbours.

California-based fashion brand Juicy Couture unveiled its first flagship store in Beijing on December 2011. The 400 square metre

Dsquared The Deck Village, Beijing

404

locationgroup research | Retail Market Study 2012

flagship is located in the Sanlitun shopping centre, which is also home to a large two-story Apple store.

Juicy Couture has been gradually expanding in China since 2006.

By the end of this year, the brand will have 38 stores throughout China and 22 in other Asian countries.

MCM, Tory Burch, Montblanc, and Christian Dior debut at Shin Kong Place Mall The Munich retailer MCM moved into the 180,000 square metre Shin Kong Place Mall in April 2011, followed a month later by New York retailer Tory Burch, which opened its 50th store worldwide in a 100 square space next door to MCM. Montblanc held a gala opening on 1 December 2011 for its new store at Beijing’s Shin Kong Place. Montblanc is renowned for their writing utensils, jewellery, leather goods, and high tech watches.

This is the second Montblanc store in Beijing after the Oriental Plaza store. Christian Dior opened a second flagship store in midDecember, in an 800 square metre space at Shin Kong Place.

Juicy Couture Sanlitun Village, Beijing

De Beers Shin Kong Place Mall, Beijing locationgroup research | Retail Market Study 2012

405

De Beers, Audemars Piguet and Montblanc opened also at Shin Kong Place De Beers was delighted to announce the opening of the first store in China at Shin Kong Place, marking its highly anticipated entrance into one of the world’s fastest-growing jewellery markets.

The store was opened on 31st May, 2011, in a launch hosted by François Delage, CEO of De Beers Diamond Jewellers, who declared, “We are excited to open our first store in Mainland China, enabling us to fully share our exceptional passion and expertise in diamond selection, craftsmanship and diamond jewellery design with one of the largest and most discerning markets in the world.”

The top world-renowned Swiss watch brand Audemars Piguet held a grand opening on the first floor of Beijing Shin Kong Place at the beginning of May 2011.

Gucci, Versace & Prada, Shin Kong Place Beijing

Roberto Cavalli to open 85 new stores The Italian retailer Roberto Cavalli plans to expand into the Chinese market by opening 85 new stores in China over the next five years.

Starbucks opens 500th store in China In October 2011, Starbucks opened its 500th Chinese store, at Beijing Capital International Airport. Starbucks plans to open an additional 1,000 stores in China by 2015.

Prada opens 80 new outlets Prada’s Asian sales for the first half of 2011 amounted to 223 million euro, a 38 % increase over 2010. Prada aims to double or triple this figure over the coming three years and to this end will be opening 80 new stores by 2013.

Shin Kong Place, Beijing

406

locationgroup research | Retail Market Study 2012

86 Tokyo at ten million yen per square metre, Ginza real estate is the priciest in Japan .

With 8,9 million inhabitants, Tokyo is not only Japan’s most populous city, but also the seat of the Japanese government, thus making it Japan’s de facto capital city. Together with the neighbouring prefectures, the Tokyo conurbation is the world’s most populous urban area, with 34,5 million inhabitants.

At ten million yen per square metre, real estate in Tokyo’s Ginza is the priciest in Japan Ginza is a main shopping and entertainment area in Tokyo’s Chūō district, where Ginza’s main shopping street Chuo-dōri and its countless (and in some cases, nameless) side streets are home to myriad top-drawer fashion and luxury retailers. At the intersection of Chuo-dōri and Harumi-dōri are the prominent upscale department stores Wako and Mitsukoshi, as well as the San‘ai building, with its numerous illuminated advertisements. On weekends, Chuo-dōri is closed to traffic and becomes a pedestrian zone. In Japan, “ginza” has come to mean “shopping street”, and so there are “ginzas” all across Japan. At ten million yen (102,000 euro) per square metre, real estate in Tokyo’s Ginza is the priciest in Japan.

Recent and new developments Tokyo still sees new urban developments on large lots of less profitable land. Recent projects include Ebisu Garden Place, Tennozu Isle, Shiodome, Roppongi Hills, Shinagawa and the Marunouchi side of Tokyo Station. Buildings of significance are demolished for more up-to-date shopping facilities such as Omotesando Hills.

Land reclamation projects in Tokyo have also been going on for centuries. The most prominent is the Odaiba area, now a major shopping and entertainment center.

Omotesando Hills was built in 2005, in a series of Tokyo urban developments by Mori Building. It occupies a two hundred and fifty metre stretch of Omotesandō, a famous shopping road in Aoyama sometimes termed Tokyo‘s Champs-Élysées. It was designed by Tadao Ando, and contains over 130 shops and 38 apartments.

The construction of Omotesando Hills, built at a cost of USD330 million, has been marked by controversy. The building replaced the

Skyline Tokyo locationgroup research | Retail Market Study 2012

407

Bauhaus-inspired Dōjunkai Aoyama Apartments, which had been built in 1927 after the 1923 Kantō earthquake.

Roppongi Hills is a new urban centre and one of Japan‘s largest integrated property developments, located in the Roppongi district of Minato, Tokyo.

Constructed by building tycoon Minoru Mori, the mega-complex incorporates office space, apartments, shops, restaurants, cafes, movie theatres, a museum, a hotel, a major TV studio, an outdoor amphitheater, and a few parks. The centrepiece is the 54-story Mori Tower. Mori‘s stated vision was to build an integrated development where high-rise inner-urban communities allow people to live, work, play, and shop in proximity to eliminate commuting time.

Seventeen years after the design‘s initial conception, the complex opened to the public on 23rd April, 2003.

Crossing Chuo-dōri und Harumi-dōri, Ginza Tokyo

Swiss retailers open five flagship stores in Ginza Japan’s foremost shopping district Ginza is witnessing a sudden offensive of noble Swiss retail brands: In June, Hublot opened its first boutique in Japan. In August, the Swiss luxury fashion and accessories label Akris and the Swiss luxury leather goods house Bally both opened their first flagship in Japan in Ginza. In October, the bag producer Freitag continued its growth abroad also with a flagship opening in Ginza. Finally, Carl F. Bucherer opened also its first flagship in Ginza, also in October. All five retailers see business chances in Japan despite the strength of yen and Swiss franc.

Street Szene Ginza, Tokyo

408

locationgroup research | Retail Market Study 2012

Omotesando Hills Entrance, Shibuya, Tokyo

Matsuya Department Store Ginza, Tokyo locationgroup research | Retail Market Study 2012

409

Escada Roppongi Hills Aoyama, Tokyo

Omotesando Hills Mall Shibuya, Tokyo

Hublot opened 37th Boutique First-ever Hublot boutique in Japan opened on prestigious Namiki street, 6-7-16 Ginza, Tokyo. Hublot continues its expansion into the most significant luxury destinations in the world.

Akris expanding worldwide Akris’s Tokyo flagship store is part of a worldwide retail expansion plan. The 130 square metre store is located on Ginza 4-chome Street. „We have eagerly anticipated this exciting moment,“ Akris designer and creative director Albert Kriemler told Vogue magazine. This is Akris’s first stand-alone store in Japan.

Moncler Aoyama, Tokyo

Bally Grows in Japan Bally, which has continued to grow in Japan despite the March earthquake, hosted a cocktail party in Tokyo to celebrate the opening of its new Ginza flagship. Chief executive officer Berndt Hauptkorn said the brand has posted “good” single-digit growth in the February-to-August period with particular strength in men’s and high-end full-price merchandise.

Freitag’s Premium Label The bag maker Freitag opened a flagship store in Ginza in October 2011. Its traditional products are usually not considered luxury articles but the company has recently launched a premium brand called Freitag Reference. The bags are still made from truck tarpaulins but are more elaborately processed and have a more puristic design. “The Japanese are our most extreme fans”, Markus Freitag (41) told the Swiss newspaper Tagesanzeiger.

Moncler Shop Window Aoyama, Tokyo

410

locationgroup research | Retail Market Study 2012

Carl F. Bucherer unveils new Tokyo boutique In October 2011, Carl F. Bucherer opened its first Japanese boutique in a 95 square metre space in Ginza. Above the retail area is an exclusive 192 square metre VIP lounge whose design is the same as on the lower level.

Uniqlo 9th global flagship store with 5,000 square metres This new location will open in March, 2012 with a sales area spanning approximately 5,000 square metres across 12 floors.

The brand has opened eight global flagship stores in seven major world cities over the past five years, including a second flagship location in New York’s 5th avenue, while consistently raising product, store and customer service standards.

As the ninth global flagship location, the UNIQLO Ginza Store will feature the brand‘s largest retail sales space in the world.

Cartier & Prada Aoyama, Tokyo

Gap opened 1,400 square metre flagship store American apparel chain Gap opened a four-level flagship store in Ginza in March 2011. The new store is Japan’s largest Gap store. The Ginza store has a floor for everyone: women’s, men’s and children’s collections fill the 2nd, 3rd and 4th floors respectively, whereas the first floor strategically displays Gap’s newest and limited-season products.

Miu Miu opens 18th Japanese store

Harumi-dōri Ginza, Tokyo locationgroup research | Retail Market Study 2012

411

Miu Miu’s 18th Japanese store opened in a 530 square metre space in Ginza, in Tokyo’s Chuo-ku Echogoya district. The three-level store features a magnificent 13 metre high facade.

Big Opening of New UGG Store In June 2011, UGG had a big store opening titled “A Celebration of Summer“ in Ginza, Tokyo. At the luxurious venue, various models wore summer-like outfits, all paired with UGG’s signature sheepskin boots. The new flagship store handles 930 square metres and is close to the Prada and Salvatore Ferragamo store.

Royal Asscher opens flagship store in Ginza The Royal Asscher company opened its first store in Japan in July 2011. The store is located in Ginza, alongside other luxury stores such as LVMH, Bulgari and Chanel. To mark the store’s opening, a Royal Asscher diamond tiara has been created containing a total of 10 carats of diamonds set in platinum and worth 385,000 dollar.

The tiara will be loaned to brides who purchase a Royal Asscher engagement ring in the Ginza store.

Hublot Boutique Ginza, Tokyo

The venture, in cooperation with Asscher‘s Japanese partner, Nagahori Corporation, will be followed by the opening of flagship stores in the People’s Republic of China.

Uniqlo Ginza Flagship Store, Tokyo

412

locationgroup research | Retail Market Study 2012

Gap Ginza Flagship Store, Tokyo

UGG Store Ginza, Tokyo

Michael Kors opens second Tokyo boutique, at Roppongi Hills In November 2011, Michael Kors opened a 200 square metre boutique in Tokyo, at the choicest location Roppongi Hills shopping complex has to offer and where the store is in good company amongst other leading luxury retailers.

Ruco Line opens two new stores in Tokyo Rucoline, the company that produces shoes and accessories company from Perugia, has inaugurated two new Tokyo stores in the month of June 2012 (the first store in the Japanese capital was opened in 2008 in Ginza). The two new retail spaces are located respectively in the shopping area of Daikanyama and in the international financial district of Minamiaoyama.

Escada debuts in Japan In September 2011, Escada unveiled a newly designed flagship store at Roppongi Hills, which is one of Tokyo’s most prestigious shopping venues. The split-level 500 square metre space is Escada’s debut store in Japan.

Roberto Cavalli debuts in Tokyo The Florentine fashion retailer Roberto Cavalli has opened its debut Japanese store in a 300 square metre space in Tokyo’s fashionable Aoyanna district. The store carries shoes, bags, accessories, sunglasses, and jewellery. Prior to this, Roberto Cavalli had five shop-in-shops at various Japanese department stores.

Moncler debuts in Tokyo The Moncler flagship store in Minamiaoyama Minato-ku opened in the Aoyama luxury boutique-district. The 230 square metre store was formerly the Dolce & Gabbana flagship store. This new Moncler flagship stocks the brand’s complete men’s, women’s and accessories collections.

Anya Hindmarch debut in Aoyama Marking her 22nd location in Japan, in addition to 34 shops across the globe, Anya Hindmarch launched a new two-story flagship in Aoyama, one of Tokyo’s premier shopping districts.

Bally Boutique Ginza, Tokyo locationgroup research | Retail Market Study 2012

413

414

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

415

Australia .

Sydney Opera

416

locationgroup research | Retail Market Study 2012

87 Sydney, Zara debuts, while Apple opens its 11th Australian store .

Sydney City Center

Sydney, the capital city of New South Wales, was founded on 26 January 1788, and with 3,6 million inhabitants is Australia’s largest city. The greater Sydney area has 4,1 million inhabitants. Although people sometimes assume that Sydney is the capital of Australia, this distinction in fact belongs to Canberra.

Sydney’s main shopping district, which is bounded by Elizabeth, King, George and Park Streets, comprises the Pitt Street Mall pedestrian zone, as well as restored buildings such as Queen Victoria Building, a magnificently renovated former market hall that reopened in 1986 as a shopping complex containing myriad fashion and antique shops. Located in downtown Sydney, Myers on George Street is a steel and glass department store containing a mall.

Another important shopping venue on George Street is the magnificent 19th-century Strand Arcade, which features abundant glass and embellishments. Argyle Stores mall on Argyle Street is home to numerous boutiques in a 19th-century building. David Jones, which has a branch on both Elizabeth Street and Market Street (corner of Castlereagh Street), is Sydney’s classic department store. It has a large selection of apparel, as well as a floor devoted to Australian and international designer fashions.

Louis Vuitton opens on George Street On 1 December 2011, Louis Vuitton opened a 1,200 square metre flagship store on George Street, where the retailer is in excellent company with prominent name boutiques such as Burberry, Bulgari, Diesel, Gucci, and Montblanc right close by.

Sydney Skyline at dusk locationgroup research | Retail Market Study 2012

417

Gucci George Street, Sydney

418

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

419

Burberry takes over Virgin megastore The British luxury retailer Burberry opened a new store in April 2011 in an 820 square metre space on George Street that was formerly a Virgin megastore.

Bottega Veneta, Prada and Miu Miu debut in Australia In March 2011, the Italian luxury retailer Bottega Veneta opened its debut store in Australia, in Pitt Street’s Westfield Sydney Shopping Centre, in a 200 square metre space designed by Thomas Maier. Miu Miu (a member of the Prada Group) opened a 420 square metre store at the same venue in July 2011, while Prada opened a 400 square metre outlet next door.

Gucci and Prada debut at Westfield Centre Gucci is pleased to announce the opening of a new flagship store in Sydney, Australia. Located in the Westfield Shopping Centre along Castlereagh Street, the store spans more than 740 square metres over two floors and boasts a new design concept by creative director Frida Giannini.

Ermenegildo Zegna Castlereagh Street, Sydney

Burberry George Street, Syndey

420

locationgroup research | Retail Market Study 2012

Zara debuts, while Apple opens its 11th Australian store In July 2011, Apple opened its 11th Australian store, at Westfield Penrith Shopping Centre, and in April 2011, Zara opened its debut Australian store in a three-level 1 400 square metre space at Westfield Sydney Shopping Centre.

Cara&Co opens second store worldwide In August 2011, the designer retailer Cara&Co opened its second store worldwide, in a 580 square metre space. Some traits of this Sydney store for our Moscow clients will seem familiar – the No Logos Fashion Only concept. Still there are a lot of things which are brand new with regards to the Cara & Co project. The Sydney store offers the collections of high-jewellery brands and gadgets. And the main focus is a fine dining restaurant situated inside the concept store offering high cuisine of the menu specially created by Belgian Chef Dave De Belder, one of the Flemish Primitives group.

Zegna comes to Castlereagh Street In August 2011, Ermenegildo Zegna opened a new store on Castlereagh Street, in a split-level 330 square metre space that was designed by architect Peter Marino.

Prada & Miu Miu Westfield Sydney, Sydney

Victoria’s Secret opens store at Sydney Airport In December 2011, the US lingerie retailer Victoria’s Secret opened its second store in Australia.

Zara Westfield Sydney, Sydney locationgroup research | Retail Market Study 2012

421

Louis Vuitton George Street, Sydney

422

locationgroup research | Retail Market Study 2012

88 Melbourne, British cult retailer TopShop makes Australian debut .

Melbourne, the capital city of the Australian state of Victoria, has 3,4 million inhabitants, making it Australia’s second largest city.

Metropolitan Melbourne has 4,1 million inhabitants. In 2002, 2004, 2005 and 2011.

The city centre is well-known for its historic and attractive lanes and arcades (the most notable of which are Block Place and Royal Arcade) which contain a variety of shops and cafes and are a byproduct of the city‘s layout.

The Melbourne General Post Office The Melbourne General Post Office (GPO) is a former post office in Melbourne, Victoria, Australia. Located on the corner of Elizabeth Street and Bourke Street in the heart of the Melbourne CBD, it is a landmark of the city and is listed on the Victorian Heritage Register. The former purpose-built post office building currently functions as a shopping mall, having been re-developed for adaptive reuse in 2004.

Bourke Street is one of Melbourne‘s best known streets Historically, Bourke Street has been regarded as Melbourne‘s “second street”, with the main street being Collins Street. “Busier than Bourke Street” is a popular catchphrase, not least because Bourke Street has traditionally been Melbourne‘s entertainment hub. In its heyday, it was the location of many of Melbourne‘s theatres, cinemas, as well as a major retail shopping precinct. Today the street remains an entertainment hub best known as the location of the Bourke Street Mall, Melbourne‘s main pedestrian mall and one of the city‘s main tourist destinations. Bourke St Mall is home to two major luxury department stores.

Bourke Street, Melbourne

Myer‘s nine-floor flagship store, housing 200+ brands – Calvin Klein, Givenchy, Chanel, Dior, Mulberry, DKNY, Nina Ricci, Emporio Armani, Marc Jacobs, Polo Ralph Lauren, Hugo Boss, Guess, Pandora, Sass and Bide, Temperley London, Moschino, Emilio Pucci and more.

David Jones‘ second flagship store, which houses world-luxury brands – Armani Collezioni, Bally, Bottega Veneta, Burberry, Christian Louboutin, Dolce & Gabbana, Ermenegildo Zegna, Fendi, Hugo Boss, Jimmy Choo, Manolo Blahnik, Miu Miu, Paul Smith, Polo Ralph Lauren, Ted Baker, Yves Saint Laurent and more.

Skyline Melbourne locationgroup research | Retail Market Study 2012

423

Probably the first Apple store in Melbourne One of the first signs of a new Apple store on the verge of being opnened in Australia is the opening of applications for various positions on Apple‘s jobs site. Interestingly, the location is described as “Melbourne” without a suburb specification, but the postcode is shown as 3205, which is South Melbourne.

Chadstone Shopping Centre gets two new tenants In October 2011, Armani Exchange opened a 240 square metre store on the second level of Melbourne’s Chadstone Shopping Centre, where the Spanish fashion retailer Adolfo Dominguez opened its debut Australian store.

Apple-Store Melbourne

Gap opens at La Trobe Street’s Central Shopping Centre In December 2011, the US retailer Gap opened its third Melbourne store in a 999 square metre space in a prime location at Central Shopping Centre, in close proximity to the likes of G-Star, Tommy Hilfiger, Calvin Klein, Body Shop, Diesel, Foot Locker, and Armani Exchange.

In December 2011, the US shoe retailer and Nike Group member Converse likewise opened its first Melbourne store, in a 170 square metre space.

British cult retailer TopShop makes Australian debut In December 2011, the young-fashion retailer TopShop opened a 1,300 square metre store at Jam Factory Shopping Centre. The company’s products are marketed in Australia by Next Athleisure.

Gap Melbourne

Topshop Melbourne

424

locationgroup research | Retail Market Study 2012

Zara opens second Australian store, on Bourke Street Having opened its first store in April 2011, two months later, Zara opened a second store in a 1,700 square metre three-level space.

Thomas Pink and Paul Smith come to Australia In 1999, France’s Moet Hennessy Louis Vuitton group acquired, a majority share in the British men’s outfitter Thomas Pink, which has now opened its first store in Melbourne, where Paul Smith will be opening a new 250 square metre store in mid-2012.

Successful reopening of Tiffanys on Collins Street Having completed its renovation project, Tiffanys reopened on Collins Street in August 2011 in a 1,250 square metre space.

Tiffany & Co, Melbourne

Zara, Melbourne locationgroup research | Retail Market Study 2012

425

426

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

427

America .

North America is a continent wholly within the Northern Hemisphere. It is also considered a northern subcontinent of the Americas. North America covers an area of about 24,7 million square kilometers. Its population was estimated at nearly 529 million people thus, is the third-largest continent in area, following Asia and Africa, and the fourth in population after Asia, Africa, and Europe.

South America is a continent mostly situated in the Southern Hemisphere. The continent is considered the second subcontinent of the Americas. South America has an area of 17,8 million square kilometers and its population has been estimated at more than 371 million. South America ranks fourth in area and fifth in population.

In the following the most important and most famous fashion and luxury metropolises of North- and South America are introduced and the most important novelties of the last months indicated.

Times Square, New York

428

locationgroup research | Retail Market Study 2012

89 Toronto, Max Mara and Michael Kors opening in Bloor Street .

With 2,5 million inhabitants, TORONTO is Canada’s largest city and is also the capital of the province of Ontario. Toronto is located in the Golden Horseshoe, which extends around the western end of Lake Ontario and ends at Niagara Falls.

Around a third of Canada’s population increase in recent years has occurred in Toronto, whose metropolitan area population increased from 4,1 million in 1992 to 5,1 million in 2006. The Greater Toronto Area had more than 6.2 million inhabitants in 2010. Downtown Toronto, where the city’s shopping and bank districts are located, is near Lake Ontario.

Toronto skyline

The Yorkville neighbourhood The Yorkville neighbourhood is one of Toronto‘s most elegant shopping and dining areas. On many occasions, celebrities from all over North America can be spotted in the area, especially during the Toronto International Film Festival. The Distillery District, Queen West, Harbourfront, the Entertainment District, the Financial District, and the St. Lawrence Market neighbourhood are also popular areas for tourists. Yonge Street is the major high street.

Intermix plans worldwide expansion International retailers regard Canada as a key expansion market – a view that was expressed, for example, by Intermix CEO Khajak Keledjian, on the occasion of the opening of the first Intermix store in Canada, which Mr. Keledjian says is the centrepiece of the company’s expansion plans. He also feels that it would be easier for Intermix to expand into Western Europe if the company had outlets in each of Canada’s cosmopolitan cities. Intermix kicked off this expansion programme by opening a 204 square metre store on Toronto’s Bloor Street West in August 2011.

The Eaton Centre is one of North America‘s top shopping destinations in downtown Toronto, and Toronto‘s most popular tourist attraction with over 52 million visitors annually. Additionally it is also the largest shopping mall in Toronto and third largest in Canada as a whole. It was named after the now-defunct Eaton‘s department store chain that once anchored it.

Joe Fresh opens stores in Canada By opening four stores in 2011, including a 762 square metre outlet on Queen Street, the Canadian apparel and accessories retailer Joe Fresh considerably strengthened its presence in Ontario and Quebec.The line is available at over 300 Canadian supermarkets and superstores, in addition to a number of stand-alone locations.

The Eaton Centre is bounded by Yonge Street on the east, Queen Street West on the south, Dundas Street West on the north, and to the west by James Street and Trinity Square.

Max Mara and Michael Kors opening in Bloor Street Another opening in Toronto was announced by Max Mara. The luxury label opened a store at 151 Bloor St. West in August.

The iconic American designer and fashion house, Michael Kors, is set to open its first ever Canadian flagship store in Toronto‘s trendy haute neighbourhood, Yorkville. Located at Bloor Street West, the new 287 square metre, two-storey flagship store will house an emporium of clothing, accessories, hand bags and all that glam.

Park Hyatt Yorkville, Toronto locationgroup research | Retail Market Study 2012

429

UGG opens first Toronto store The US shoe retailer UGG opened its first store in Toronto in October 2011. The company has gained worldwide renown on the strength of its sheepskin après-surfing boots, which are now available in a 275 square metre store on St. Thomas Street in the enchanting Yorkville Shopping District.

Yorkdale fifth largest mall in Canada Yorkdale Shopping Centre is a large shopping mall in Toronto, Ontario, Canada. It contains over 250 stores and is located in the community of Downsview, in North York. It is the fifth largest shopping mall in Canada and also enjoys the highest sales per square foot of any mall in Canada, with current merchandise sales levels at over US$ 1,000 CAD per square feet. The centre draws in approximately 400,000 customers a week.

In January 2011, a press release stated an intention to expand the mall, adding another 145,000 square feet (13,500 square metres), sufficient for 40 store fronts, and 800 underground parking spaces.

The expansion will also double the number of seats at the food court, improve public access, and landscape portions of the property. It will be completed in late 2012.

Topshop opened at Bay Yorkdale Mall Topshop and Topman have opened their first flagship store in October 2011, at the Bay Yorkdale Mall. Topshop officially opened the doors to its flagship store in partnership with The Hudson‘s Bay Company. The new store has 1,350 square metres of retail space, and covers two floors.

Tiffany’s Bloor Street, Toronto

Joe Fresh Opening Queen Street, Toronto

430

locationgroup research | Retail Market Study 2012

Yorkdale Shopping Center, Toronto

Intermix Store Bloor Street West, Yorkville Toronto

Victoria’s Secret has opened first store in Toronto Victoria’s Secret, the US-based mega lingerie chain known for its sexy catalogues and nearly naked fashion shows, has finally come to Canada. It opened its first Toronto store in August 2011, at Yorkdale Shopping Centre. Brazilian beauty Adriana Lima, at 29 one of the oldest and longest-serving of the Angels, wielded the oversized scissors to cut the hot pink ribbon. They present their new concept brand on a 929 square metre sales area.

7 For All Mankind expands worldwide 7 For All Mankind, the Los Angeles-based premium denim-lifestyle brand, continues its retail expansion in Canada with the opening of its first store in the Toronto area at Yorkdale Shopping Centre in August 2011. This is the second 7 For All Mankind retail store in Canada, following the March 2011 opening of its Chinook Centre store in Calgary. The brand currently operates over 150 stores worldwide.

J. Crew – Big opening in Yorkdale Shopping Centre Throngs of shoppers flocked to Yorkdale Shopping Centre to peruse the fashion lineup at Canada’s first J. Crew store. As a long line formed outside the store of those waiting to get in after it opened, store staff handed out bottled water to people waiting in line at the cash registers. Though J Crew has not announced its pricing strategy for Canada, in-store prices are the same as the US dollar prices listed on the company’s website, which began offering a flat rate US$ 9,95 on shipping to Canadians, and in its catalogue.

Topshop Yorkdale Shopping Center, Toronto locationgroup research | Retail Market Study 2012

431

The 484 square metre store carries women’s merchandise only, though larger stores selling also the company’s men’s line are expected to open as the retailer rolls out an estimated 25 stores. J. Crew plans to open as many as 20 stores across Canada, including five in the next few years. Future locations could include Toronto’s Eaton Centre and Vancouver’s Robson Street.

J.Crew Yorkdale Shopping Center, Toronto

Victoria’s Secret Yorkdale Shopping Center, Toronto

432

locationgroup research | Retail Market Study 2012

90 New York, Jeff Sutton paid Escada 25 million to vacate the store NEW YORK is the most populous city in the United States and the centre of one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and entertainment. The home of the United Nations Headquarters, New York is an important centre for international affairs and is widely deemed the cultural capital of the world. The city is also referred to as New York City or the City of New York to distinguish it from the state of New York, of which it is a part.

With a population of 8,1 million distributed over a land area of just 305 square miles (790 square kilometres), New York is the most densely populated major city in the United States. The New York City Metropolitan Area‘s population is the United States‘ largest, estimated at 18,9 million people distributed over 6,720 square miles (17,400 square kilometres), and is also part of the most populous combined statistical area in the United States, containing 22,2 million people. New York has the largest internet presence of any location in the world; registering 7,1 billion search results as of December 2011.

Fifty million tourists each year Many districts and landmarks in New York City have become well known to its approximately 50 million annual visitors. Times Square, iconified as „The Crossroads of the World“, is the brightly illuminated hub of the Broadway theatre district, one of the world‘s busiest pedestrian intersections, and a major centre of the world‘s entertainment industry.

Other major destinations include the Empire State Building, Statue of Liberty, Rockefeller Center, luxury shopping along Fifth and Madison Avenues and events, e.g. at Central Park.

Manhattan‘s real-estate market is among the most expensive in the world. Manhattan‘s Chinatown incorporates the highest concentration of Chinese people in the Western Hemisphere. Unlike most global rapid transit systems, the New York City Subway provides 24/7 service.

Skyline, New York locationgroup research | Retail Market Study 2012

433

Fifth Avenue, New York

Rockefeller Center Fifth Avenue, New York

Fifth Avenue most expensive street in the world The section of Fifth Avenue that crosses Midtown Manhattan, especially that between 49th Street and 60th Street, is lined with prestigious shops and is consistently ranked among the most expensive shopping streets in the world.

Fifth Avenue store brings Apple 440 million dollar per year Apple‘s two largest New York City retail stores are now known to be some of the town‘s largest retail cash cows, with the 5th Avenue flagship alone having drawn in US$440 million in one year.

Apple Fifth Avenue, New York

434

locationgroup research | Retail Market Study 2012

Der neue Laden von Dolce & Gabbana wird Luxus pur sein, ein starker Kontrast zur Massenware im Niedrigpreissegment. Die Designer Domenico Dolce und Stefano Gabbana zählen einige Promis zu ihren Kunden, darunter Madonna, Kylie Minogue und Angelina Jolie.

Jeff Sutton zahlte Escada 25 Millionen US-Dollar für die Aufgabe des Ladenlokals Kurz bevor Escada 2008 in Insolvenz ging, zahlte der Vermieter Jeff Sutton Escada bereits die beträchtliche Summe von 10 Millionen US-Dollar. Ausserdem wurde vereinbart, dass Escada am Tag des Auszugs zusätzliche 15 Millionen US-Dollar von Jeff Sutton erhalten sollte. Genauso war Jeff Sutton zwei Jahre vorher mit dem Escada-Chef Bruno Sälzer verfahren, der vorher CEO von Hugo Boss gewesen war. Damals ging es um den Laden, der inzwischen von Armani angemietet ist.

Vermieter Coca-Cola verlangt 20 Millionen US-Dollar Miete Die Verkaufsfläche neben Bregue und Omega an der Ecke der 55th Street gegenüber der Boutique von De Beers im Gebäude des St. Regis Hotels steht leer, seit Disney 2010 ausgezogen ist. Coca-Cola, der Eigentümer des Gebäudes, zögert mit der Vermietung. Vielleicht soll dort ein Shop mit Coke-Merchandising-Produkten entstehen, und da die Immobilie dem Unternehmen seit 1983 gehört, steht Coca Cola auch nicht unter Druck die Ladenfläche sofort zu vermieten. Als Miete würden 20 Millionen US-Dollar im Jahr für die 760 Quadratmeter des Ecklokals im Erdgeschoss verlangt. Dazu kämen dann noch 2 700 Quadratmeter auf drei Etagen.

Laut Joe Sitt wird Takashimaya die Swatch-Miete im Bergdorf Goodman Fifth Avenue, New York

One of the reasons why the Apple Store on Fifth Avenue may be doing better is that less people shop in the SoHo area. The Apple retail store on Fifth Avenue is also open 24 hours per day. Considering Apple’s revenue for last year and the dollar figure earned for this store, it comes out to roughly 1, 4 % of the total. Not bad for one store.

Tom Ford opens Bergdorf Goodman outlet The Texas-based luxury retailer Tom Ford opened its first US shop-in-shop for its women’s collection, at Fifth Avenue’s Bergdorf Goodman (a member of the Neiman Marcus Group). Located on the third floor right next to the well frequented shoe department, the 70 square metre shop, which carries dresses, jackets, coats, handbags, and shoes, was designed jointly by Tom Ford and New York-based Studio Sofield.

Stefano Gabbana and Domenico Dolce locationgroup research | Retail Market Study 2012

435

Michal Kors takes over Kenneth Cole store at Rockefeller Center Michael Kors has finally snagged a prime Fifth Avenue location at Rockefeller Center. The fashion retailer has signed a 10-year lease for the just-shuttered Kenneth Cole store in Rockefeller Center‘s 610 Fifth Ave., which also adjoins the Channel Gardens by 49th Street. The shop has 420 square metres on the ground and a bit less than 280 square metres underground for offices and storage.

Dolce & Gabbana lands Fifth Avenue store Opposite of Henri Bendel, glam fashion powerhouse Dolce & Gabbana is making its first foray into the heart of tony Fifth Avenue. The Italian fashion house leased a massive 1,700 square metre store at 717 Fifth Ave., taking over the space from Escada, which will move within the same building into smaller digs along 55th Street.

The stores are a portion of a retail condominium owned by deal maestro Jeff Sutton and real-estate investment trust SL Green Realty Corp. Sutton, who orchestrated both deals, previously moved out Hugo Boss and installed Armani/AX in the north portion of the space.

The 15-year Dolce & Gabbana lease could be valued at just under US$ 300 million, sources said. While Dolce & Gabbana has a store on Madison and its lower priced D&G line on Lafayette St., the designing duo has never cracked the key luxury shopping stretch of Fifth Avenue that runs from 57th St. to Rockefeller Center.

Rather than joining the mass retailer pricing, the new Dolce & Gabbana store will be pure luxury. Designers Domenico Dolce and Stefano Gabbana have attracted a following among celebrities, including Madonna, Kylie Minogue, and Angelina Jolie.

Jeff Sutton paid Escada 25 million to vacate the store Shortly before the insolvency of Escada in 2008, the landlord Jeff Sutton already paid key money of US$10 million to Escada. Furthermore, it was agreed that the landlord has to pay US$ 15 million at the day when Escada moves out. It was exactly the same deal Jeff Sutton did two years earlier with Bruno Sälzer, CEO of Escada, who was formerly CEO of Hugo Boss, with the store now occupied

by Armani.

Coca Cola Building Fifth Avenue, New York

Landlord Coca-Cola asks for 20 million dollar in rent The space next to Breguet and Omega at the corner of 55th Street opposite the De Beers boutique in the St. Regis Hotel building has been empty since Disney moved out in 2010. Coca-Cola, the building owner, has been reluctant to lease the space, which it has been holding for a possible Coke store selling company merchandise. As the company has owned the property since 1983, it has no financial pressure to lease the space up. The asking rent is US$20 million per year for 760 square metres on the ground-floor corner, plus 2 700 square metres on three levels.

Joe Sitt predicts Takashimaya will top Swatch rent at Kushner’s 666 Fifth Avenue A new tenant for the high-profile Takashimaya building at Fifth Avenue will likely pay a ground-floor rent higher than the US$ 2,000 per square foot that Swatch recently signed for in a space nearby, Pedestrian frequency of Manhatten, New York (per day in 1,000)

436

20

30

40

Frequenz pro Tag

50

60

70

80+

locationgroup research | Retail Market Study 2012

property owner Joseph Sitt, chairman and CEO of Thor Equities, said in an interview with Insights from The Real Deal.

Swiss-based Swatch inked a 15-year deal that starts at about US$ 2,000 per square foot in the retail condo at 666 Fifth Avenue owned

by Carlyle Group, Kushner Companies and Crown Acquisitions. Sitt said there was “no question” he would get rents in the range of US $2 500 per square foot. He added there were six tenants looking seriously at the space in the 20-storey building.

Uniqlo‘s Fifth Avenue store has priciest lease ever New York’s Fifth Avenue is claiming a city retail record: Japanese clothier Uniqlo agreed to pay US$ 300 million over 15 years to bring its affordable fashions to the world’s most expensive shopping area. The space lies at 666 Fifth Ave. near 53rd Street.

Uniqlo Fifth Avenue, New York

Uniqlo Fifth Avenue, New York locationgroup research | Retail Market Study 2012

437

The company will spend about US$ 20 million a year to lease the 8 300 square metre (about 89,000 square foot) space at 666 Fifth, according to Cushman’s Mendelson and Haim Chera, principal of Crown Acquisitions. Mendelson represented the landlords in the Uniqlo transaction.

The deal will be the highest aggregate amount paid to lease retail space in New York City, beating Gucci Group NV’s US$ 16,5 million in annual rent for about 45,000 square feet at Trump Tower three blocks north.

The landlords at 666 Fifth Ave. paid Brooks Brothers Inc. US$ 47 million in 2008 to vacate the space eight years before its lease ran out.

Zara construction site Fifth Avenue, New York

Zara‘s parent invests US$ 400 million in Fifth Avenue store Spanish retailer Inditex SA said it bought the former NBA Store at 666 Fifth Ave. in Manhattan for US$ 324 million in a record deal for a US retail property.

The company will make the 3,600 square metre storefront between West 52nd and 53rd Streets into a flagship store for its Zara clothing chain, Arteixo, Spain-based Inditex said today in a statement posted on its website. The site was the home of a National Basketball Association shop that sold team jerseys and other memorabilia.

The transaction values the space at about US$ 8,300 a square foot (US$ 89 300 a square metre). That exceeds the US$ 8,000 a square foot paid in 2008 for a 6,000 square foot retail outlet at 713 Madison Ave., according to Real Capital Analytics Inc., a New York-based company that researches commercial property sales worldwide.

The 1,8 billion dollar sales record on Fifth Avenue The 41-storey tower that houses the store, completed in 1957 and originally known as the Tishman Building, has been the site of two other price records since 2007. Kushner Cos. paid US$ 1,8 billion for the building that year, then a record for a single US property. Last year, the parent of Japanese clothier Uniqlo rented retail space at the building for 15 years for US$ 300 million, the most expensive lease for a New York store.

Carlyle and Crown Acquisitions paid 525 million for a stake in retail portion Carlyle Group, the world’s second-largest private-equity firm, and Crown Acquisitions paid US$ 525 million for a stake in the retail portion of 666 Fifth Ave. in 2008, as real-estate values were sliding during the credit crisis. That deal helped Kushner cover some of the debt incurred in its 2007 purchase.

Kushner’s sale of the interest valued the retail space at US$ 6,187 a square foot (US$ 66,000 a square metre). Kushner kept a 51 % stake in the retail segment after the transaction with Carlyle and Crown, and retains 51 % of the remaining retail after Inditex’s purchase, said a person familiar with the structure who declined to be identified because the ownership breakdown is private.

666 Fifth Avenue, New York

438

locationgroup research | Retail Market Study 2012

Retailer Ted Baker strikes deal for flagship at 595 Fifth Avenue The British clothing retail company, Ted Baker, is opening a new flagship store this summer at 595 Fifth Avenue. The shop has 1 115 square metres of retail space, covering three floors of the building.

The retailer will replace Sprint, the previous tenant, which occupied the ground floor. The brand operates two other locations in New York City at 107 Grand Street in SoHo and 32-34 Little West 12th St. in the Meatpacking District. The lease to Ted Baker extends the luxury portion of the avenue and completes the block from 49th to 48th Streets, which is the home of brands including Michael Kors, Lacoste, Sephora and Aldo.

Marimekko flag ship on Fifth Avenue The Finnish brand Marimekko, known for brightly-coloured printed fabrics and simple styles used both in women‘s garments and in home furnishings, has opened a flagship store on New York‘s Fifth Avenue on 5 October 201. The store is specifically at 200 Fifth Avenue, 23rd Street with 360 square metres of retail space.

Madison Avenue is a north-south avenue in the borough of Manhattan Madison Avenue is a north-south avenue in the borough of Manhattan in New York City, that carries northbound one-way traffic. It runs from Madison Square (at 23rd Street) to the Madison Avenue Bridge at 138th Street.

Vacheron Constantin Madison Avenue, New York

Hermès Men, Hublot & Fabergé Madison Avenue, New York locationgroup research | Retail Market Study 2012

439

Between 57th Street and 86th Street, Madison Avenue is identified as „the fashionable road“. Most of the very well known fashion designers, jewellers and upper class hair salons are located in this area.

Some of the world‘s most upscale boutiques are also located on Madison Avenue including Asprey, Baccarat, Bally, Chanel, Calvin Klein, Christian Louboutin, Dolce & Gabbana, Jimmy Choo, Ralph Lauren, Hermès, DKNY, and many more. Madison Avenue is also a major art gallery centre.

Brooks Brothers, the oldest retail clothier in America, is headquartered and has its anchor at Madison and 44th Street. The Brazilian luxury brand, Victor Hugo, has a flagship store on 520 Madison Avenue. Barneys New York also has their flagship store on Madison Avenue at 60th Street. More new luxury retail stores than ever before opened in 2011.

Loro Piana opens on Madison Avenue In November, the cashmere retail chain Loro Piana opened its largest flagship store on upper Madison Avenue in a 1 300 square metre space. This is the company’s 17th store in the US. Roberto Cavalli opens New York store In October, the Italian luxury retailer Roberto Cavalli opened a 325 square metre store on Madison Avenue at 63rd Street.

Hublot opens on Madison Avenue in New York Hublot opened at Madison Avenue in February on nearly 300 square metres – including a mezzanine for a more confidential salon lounge – completely dedicated to the world of the Swiss watch brand.

Streetplan Madison Avenue, New York

Ted Baker 5th Avenue, New York

440

locationgroup research | Retail Market Study 2012

The boutique enjoys an ultra-prestigious address, since the premises on 62nd are part of a historic Madison house dating from the 19th century which is situated in a block encompassing the grandest luxury houses.

Fabergé brings its bejewelled eggs to Madison Avenue High-end jewellery maker Fabergé will open a store in Manhattan for the first time on Madison Avenue in the spring of 2012. The store will be set among equally famous neighbours, with jewellery houses such as Graff, David Yurman, Judith Ripka, Chopard, and Hublot nearby, as well as fashion houses such as Hermès, Hermès Men and Roberto Cavalli. The news follows the opening of a Fabergé shop in London, the first for almost a century.

Bottega Veneta Madison Avenue, New York

Vacheron Constantin‘s first American shop In September 2011, Vacheron Constantin opened its first US shop at Madison Avenue. This new boutique is the brand‘s 28th shop as Vacheron Constantin currently has boutique stores in cities such as Geneva, Moscow, Shanghai, and Dubai.

Uptown Switcheroos: Escada, Valentino, Dolce and Gabbana Dolce and Gabbana will move to the former store of Escada at Fifth Avenue in the spring of 2012. Escada has moved into Valentino‘s space at Madison Avenue. The move is only temporary though, and they will be opening up at their permanent location on East 55th Street once the store is ready.

Valentino moved to the Regency Hotel on Park Avenue and will move back to Madison Avenue near their old store in December.

House of Buccellati to open on Madison Avenue After more than 40 years in New York at 46 East 57th Street, Italian jewellery designer Buccellati relocated to a new location at 810 Madison Avenue, which was formerly rented by Bonpoint. The landlord is CIM Group. The transaction was made by Prudential Douglas Elliman‘s Retail Group/Cushman & Wakefield.

Bottega Veneta’s second Store in NYC Bottega Veneta has announced the opening of a new store at Madison Avenue in Manhattan. The store, Bottega Veneta’s second in New York City, represents the next step in the brand’s retail growth and features an entirely new approach to the shopping experience in an elegant boutique on 185 square metres of retail space.

French fashion house Céline new on Madison December 2011 saw the opening of the new Céline flagship store at 870 Madison Avenue. The 420 square metre space, which previously housed a temporary Dior store and, before that, Gianfranco Ferré‘s boutique, has been completely redesigned by Peter Marino to reflect a new store concept inspired by new creative director Phoebe Philo.

Italian luxury kidswear label Il Gufo lands on madison Il Gufo, an Italian luxury label for children, opened its new Madison Avenue boutique. The store takes up 45 square metres on two levels. Like its neighbour to the south, Gucci Kids, it has been to look crisp and elegant but still child-friendly, with bleached oak Fogal Boutique Madison Avenue, New York locationgroup research | Retail Market Study 2012

441

11,750 a square metre. The new store will be accessible both from the street and from within the hotel. The 118-year-old retailer plans to open for business in the first quarter of 2012. It replaces jeweller Edith Weber.

Apple Grand Central Terminal Manhattan, New York

floors and glass walls. Il Gufo has been carried by US stores like Barneys and Saks for years, but they‘re hoping to open more flagships soon.

Perrin Paris 1893 to open store at 987 Madison Avenue Luxury handbag purveyor Perrin Paris 1893 is making its New York debut. The company, which is based in Paris and has its US flagship location in Beverly Hills, California, signed a five-year lease for approx. 50 square metres at Madison Ave. The asking rent for the space on the prime block occupied by the Carlyle Hotel, between East 76th and East 77th streets, was US$

Designer lingerie boutique Journelle opens new store in NYC Luxury lingerie seller Journelle, which caters to the modern woman, brought its expertise and wide selection of lingerie to New York’s affluent Upper East Side when it opened its fourth store at the end of November 2011.

Located at 1266 Third Avenue, the 112 square metre store is the third Journelle outlet in New York City and was formerly rented by Verizon.

Ascot Chang opens New York Store After 20 years on 57th Street, the Hong-Kong-based tailor Ascot Chang acquired a 465 square metre retail condominium space on Central Park South to create a new flagship store in New York City.

Known for impeccable custom shirt tailoring, suits and accessories, Ascot Chang strives to imbue its retail architecture with those same qualities.

Tory Burch boutique, New York

442

locationgroup research | Retail Market Study 2012

Apple’s largest store at grand central is open The new Apple store is 2,100 square meters large and located in Grand Central Station. The lease was taken over for a keymoney of US$ 5 million from the former tenant Charlie Palmer’s Metrazur Restaurant. As the Grand Central Station is a state landmark government approval was needed for the renovations which cost US$ 2,5 million. The lease is approximately US$ 1 million per month.

The estimated number of persons passing through Grand Central Station is 750,000 (it is believed, that half of it are tourists). The store is Apple’s fifth in Manhattan, adding to its more than 350 retail locations in 11 countries.

Mango open on 34th Street Spanish retailer Mango has quietly soft-opened on 34th Street in October 2011, adding more European fast fashion to a block that already has H&M and Zara. Like its SoHo sister (and like other Mangos worldwide), the new space is designed according to the Japanese principle of Wabi-sabi, which emphasises austerity and natural imperfection. That may sound highbrow for a Herald Square store, but in practice, it translates to a simple, spare, and rustic environment stocked with highly affordable clothes.

Christian Louboutin to open men‘s store in New York City Famous shoe designer Christian Louboutin has decided to add a men‘s store to his Meatpacking offerings, and in the spring of 2012, he will open one around the corner from his women‘s store located at 59 Horatio Street. The new shop on Washington Street between Horatio and Gansevoort will be his second men‘s store in the world, as he recently opened one up in Paris.

Il Gufo Madison Avenue, New York

Nicholas Kirkwood will supply MePa with even more high heels Just what Meatpacking needs: more high heels! Next up to tackle the neighbourhood is a Nicholas Kirkwood boutique at Washington Street, which will open in early 2012.

After seven years of making shoes not so conducive to cobblestone, Kirkwood has decided to open its first US store (the other is in London), and fill all 140 square metres of it with shoes that look like this.

Jay Godfrey opening first retail store in Meatpacking District Early spring 2012 will mark the opening of the first-ever Jay Godfrey store in New York at 800 block of Washington Street with 104 square metres of retail space. Situated at the base of the 95 Horatio luxury rental apartments, the boutique will join fashion retailers Intermix and Vanita Rosa on Washington Street.

Bleecker Street connects Abingdon Square and the East Village Bleecker Street is a street in New York City‘s Manhattan borough.

It is perhaps most famous today as a Greenwich Village nightclub district. The street is a spine that connects a neighbourhood today popular for music venues and comedy, but which was once a major centre for American bohemia.

The Standard Hotel Meatpacking District, New York locationgroup research | Retail Market Study 2012

443

Bleecker Street connects Abingdon Square, the intersection of Eighth Avenue and Hudson Street in the West Village, to the Bowery in the East Village.

Jean-Michel Cazabat‘s Bleecker store finally opened It has been a while since the news reported that Jean-Michel Cazabat would be opening a store on Bleecker Street. Jean-Michel Cazabat‘s opening of the first ever store in New York was in October 2011 at 350 Bleecker Street in New York with retail space covering 167 square metres. Cazabat himself is very excited: „I used to live in the West Village just two blocks away, and it‘s one of the best streets for fashion retail. I think it‘s perfect for us. People love to walk around here, and the foot traffic is very good – you can‘t miss the store.“ The former tenant was Pure & Dark (grocery).

Jimmy Choo expands retail presence Located on Bleecker Street in the West Village, the 1 500 square metre store was set in a listed townhouse in August 2011. This is the brand’s third location in Manhattan, adding to the original US stores on Fifth Avenue at 51st Street and Madison Avenue.

The British luxury brand Jimmy Choo expands its retail presence in the United States with three new stores opening this August:

New York City – Bleecker Street, Los Angeles – Beverly Center, and Las Vegas – Crystals at City Center. These three markets were the first markets where Jimmy Choo established its US retail presence more than ten years ago, and are also the top three performing American markets for the brand.

Nars Store opens on Bleecker Street Makeup artist François Nars’ entire family of iconic colours was assembled into sleek, graphic lines for the opening of the company’s first flagship store in the West Village.

It has been a long time coming: Nars looked for years before he found the right space – a pre-war storefront just up the street from designer and long-time friend Marc Jacobs’ own Bleecker Street boutique – and the timing could not be better. With his recent return to the runway (he headed up makeup at Jacobs’ show for the third season in a row), he was in need of a home base.

For the task of designing the 525 square foot space, Nars tapped art director Fabien Baron – who, not-so-coincidentally, designed the company’s original black-and-white logo back in 1994.

Jean-Michel Cazabat Store Bleecker Street, New York

444

locationgroup research | Retail Market Study 2012

Maje and Sandro new on Bleecker Street French retailers Maje and Sandro have been hinting at opening up shop in New York for nearly a year now. Back in April, a bunch of locations – from SoHo to even Brooklyn – were thrown about, but logically, the two brands have chosen the Parisianesque West Village.

Postered plywood, covering two former restaurant spaces on the corner of Bleecker and Bank Streets, is announcing fall 2011 openings for the two brands. Maje even features a breezily sauntering spokesmodel and collab-designer Vanessa Traina on the temporary banner. With Zadig & Voltaire and Comptoir des Cotonniers already on Bleecker and Pierre Hardy located over on Jane Street, the West Village may be quickly morphing into a little Paris.

Soho (“South of Houston Street”) is an extremely trendy Manhattan neighbourhood that extends from Houston Street at its northern end to Canal Street at its southern end and lies just north of the neighbourhood known as Tribeca (“Triangle Below Canal Street”) in the western section of Manhattan. Just north of Soho is NYU (New York University), Washington Square Park, Greenwich Village and Nars Boutique Bleecker Street, New York

Maje Bleecker Street, New York locationgroup research | Retail Market Study 2012

445

an area known as Noho (“North of Houston Street”), whose status as a separate neighbourhood is a matter of dispute.

Etro’s second New York Boutique opens in SoHo After purchasing the space at 89 Greene Street three years ago and somewhat optimistically posting „Coming Soon“ posters throughout 2009, high-end label Etro was finally ready to open its doors in 2011. After much speculation and renovation, the bright, psychedelic-inspired Etro opened on Friday, February 25. The 360 square metre location is part of an expansion of the brand that originated on Madison Avenue, their second location in Manhattan.

Mulberry‘s third New York store now open British luxury brand Mulberry‘s third and largest New York store opened in Soho at Spring Street (two other stores are located on Madison Avenue and Bleecker Street). The new store is impressive not only in size but in decor, wooden floors and library walls with Etro Greene Street, New York

Soho Buildings Manhatten, New York

446

locationgroup research | Retail Market Study 2012

over 8,000 hardcover books creating a warm, airy, yet sophisticated feel.

The store is also the first location in the US to feature all Mulberry product lines including ready-to-wear, handbags, accessories, luggage, and shoes, and, of course, it was celebrated with a party at the New York Fashion Week.

Tiffany & Co. to open third New York City store Upscale jewellery chain Tiffany & Co. will open a third store in New York City in 2012. The new store is set to open in September 2012 in Manhattan‘s trendy SoHo district, a destination popular with tourists, whom Tiffany said last quarter played a major role in its strong results in New York and elsewhere. The store will occupy a floor-through space that combines two locations – Greene Street and Wooster Street – in the heart of the SoHo-Cast Iron Historic District.

The SoHo store opening will coincide with Tiffany‘s 175th anniversary and will be 650 square metres, making it larger than the average of its planned new stores. Last year, the flagship store on Manhattan‘s Fifth Avenue, which is 4,200 square metres, accounted for eight percent of company-wide sales. Its other current New York location is in the Wall Street area.

Gap opens Village outlet The young-fashion retailer Gap opened a 280 square metre store on lower Broadway between Spring and Broome, while Gap opened two more than 300 square metre Athleta stores, one on Columbus Avenue and the other on Third Avenue. Gap plans to open up to five Athleta stores by 2013.

Aritzia Aritzia opened its first Big Apple store in a 1,000 square metre space at the corner of Broadway and Spring Street, thus adding a new flagship to its existing fleet of stores in cities such as Seattle, San Francisco, and Chicago.

Etro Greene Street, New York

mall space and a few well-known sit-down restaurants.

In January 2008, Westfield re-acquired the now re-developed property along with the city of New York and will be in the 1 World Trade Center complex.

The future Mall at the World Trade Center, currently under construction, calls for roughly 500,000 square feet (46,000 square metres) of retail space, which will once again make it the largest shopping mall in Manhattan. Although the new mall will only be spread over roughly one half of the original mall‘s footprint, the mall will be double-level, whereas the original mall was a single-level mall. Three additional levels will also exist above-grade on the lower floors of Tower 2 and 3, and Tower 4 will house four above-grade levels.

According to developer Larry Silverstein: „The design we have developed with the Port Authority calls for not only rebuilding the retail space that was lost on 9/11, but going above and beyond what was there before. We want to create a real

Alexander Wang goes SoHo The famous designer Alexander Wang launched his first stand-alone store in New York City at Grand Street in SoHo in February 2011.

The boutique has a retail space of 325 square metres.

Piero Guidi makes US debut with SoHo outlet Piero Guidi made its US debut by opening a 160 square metre store on SoHo’s West Broadway. The brand, which is sold in more than 500 multi-brand stores in Italy and elsewhere in Europe, now has four stand-alone stores outside Italy, in addition to its outlets in Hong Kong, China, and Japan.

The Mall at the World Trade Center The Mall at the World Trade Center was a shopping centre located in the concourse area of the World Trade Center before it was destroyed on 11 September 2001. Prior to 11 September, the mall was leased to The Westfield Group, who had intended to rename the mall Westfield Shoppingtown World Trade Center, and embark on a major expansion and renovation programme. Plans called for the addition of 200,000 square feet (19,000 square metres) of new Aritzia Broadway/Ecke Spring Street, New York locationgroup research | Retail Market Study 2012

447

The Mall in the World Trade Center, Manhattan New York

destination for visitors and shoppers, a centre that will share many of the attributes of the city’s great retail hubs.“ Construction on the 1 World Trade Center portion of the mall began in mid-2007. The mall is expected to open in 2012.

Columbus Circle Mall The Shops at Columbus Circle is an urban shopping mall in the Time Warner Center in Manhattan, New York City – a complex of skyscrapers that was completed in 2003. It is located at Columbus Circle, next to the southwestern corner of Central Park.

Piero Guidi West Broadway, New York

The Construction Towers of the New World Trade Center, New York

448

locationgroup research | Retail Market Study 2012

It includes mostly upscale stores selling luxury brands, including Armani, Davidoff, L‘Occitane, Hugo Boss, Tumi, Coach, Cole Haan, Thomas Pink, Tourneau, and Stuart Weitzman. The mall also has several restaurants such as the Michelin 3-star Per Se, Masa, allegedly the most expensive restaurant in New York or the A Voce.

Manhattan Mall The Manhattan Mall, one of the few traditional indoor malls in New York City, is located at 33rd Street and Sixth Avenue. There are entrances to the 34th Street – Herald Square subway station and the 33rd Street Path station, on the second basement level.

This mall is a high-traffic shopping venue and has had A&S and Sterns as anchor stores in the past. Currently, the major anchor store is JC Penney.

Manhatten Mall, New York

View from the Columbus Circle Mall, New York locationgroup research | Retail Market Study 2012

449

Manhatten Mall, New York

Venture bought the building in 1999 for US $ 135 million and sold it to Vornado Realty Trust in 2006 for US$689 million. The mall is located in the high-rise building formerly used by the Gimbels flagship store, which closed in 1986.

After a renovation, it reopened as A&S Plaza in 1989. It was originally 13 levels high, but difficult access to upper floors made the whole mall a financial failure. All but two of the street level were

450

converted to office space, soon after Stern‘s closed.

In 2007, JCPenney announced that it would open a 150,000 square foot (14,000 square metre) store at the mall, its first in Manhattan.

Retailers and the food court were closed to make way for the new store and the direct underground entrance to the Subway and Path was temporarily closed. The store was opened in 2009.

locationgroup research | Retail Market Study 2012

91 Las Vegas with biggest H&M worldwide on 5 000 square metres .

LAS VEGAS is the most populous city in the US state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as ‘The Entertainment Capital of the World’, and is famous for its casino resorts and associated entertainment. A growing retirement and family city, Las Vegas is the 28th most populous city in the United States, with an estimated population by the US Census Bureau of 584,000. The population estimate of the Las Vegas metropolitan area was 1,95 million.

The Las Vegas Strip is an approximately 4,2-mile (6,8-kilometre) stretch of Las Vegas Boulevard in Clark County, Nevada, adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester.

Most of the Strip has been designated an All-American Road.

Many of the largest hotel, casino and resort properties in the world are located on the Las Vegas Strip. Nineteen of the world‘s 25 largest hotels by room count are on the Strip, with a total of over 67,000 rooms. One of the 19, the Las Vegas Hilton, is an „off-Strip“ property, but is located less than 0,5 miles (0,8-kilometre) east of the Strip.

Fashion Show Mall, Las Vegas

Fashion Show Mall is a shopping mall located on the Las Vegas Strip and is owned by the General Growth Properties Inc. With 1,9 million square feet (175,415 square metres) of space, this is one of the largest enclosed malls in the world. The mall has over 250 stores, seven anchors, an elevated stage, a fashion runway and „The Cloud“.

The palazzo is a luxury hotel and casino resort situated between Wynn and The Venetian on the Las Vegas Strip in Paradise, Nevada, a suburb of Las Vegas. It is the tallest completed building in Nevada (although the Fontainebleau Resort Las Vegas, whose construction is currently stalled due to financial problems, is already taller). The hotel and casino are part of a larger complex comprising the adjoining Venetian Hotel and Casino and the Sands Convention Center, all of which are owned and operated by the Las Vegas Sands Corporation.

Fashion shows take place in the mall every Friday, Saturday, and Sunday. Damien Duduaco, Justin Thomas, Robert Flynn, Mike Miller, Keith Vass, and other local models are free to watch. During the Winter months, the mall has scheduled snow storms inside.

Lamborghini Las Vegas Lamborghini Las Vegas is the second authorised dealer in the Las Vegas area, featuring displays of exotic automobiles from automakers including Lamborghini, Bugatti, Spyker, Saleen, and Koe-

Las Vegas by sunrise locationgroup research | Retail Market Study 2012

451

nigsegg. The 20,000 square foot (1,900 square metre) showroom was decorated with Italianimported marble and tile flooring, rich leather wall coverings, and vibrant artwork.

Non-buying guests of the resort are granted admission to the showroom for 10 dollar, while children aged five and under receive free admission when accompanied by a paying adult. Admission to the showroom includes a Lamborghini Las Vegas lanyard, souvenir access pass, and a discount at the world‘s first complete Lamborghini accessories boutique on purchases over 100 dollar.

The Shoppes at The Palazzo Features upscale boutique stores from the likes of Van Cleef & Arpels, Ralph Lauren, Jimmy Choo, Fendi, Cole Haan, Piaget, Diane von Furstenberg, Chloè, Bottega Veneta, Bulgari, Michael Kors, Burberry, Christian Louboutin, Catherine Malandrino, Anya Hindmarch, Charriol, and The Grand Canal Shoppes, Las Vegas

The Palazzo Las Vegas

452

locationgroup research | Retail Market Study 2012

others. It also features an 85,000 square foot (7,900 square metre) Barneys New York store.

The grand canal shoppers is an 500,000 square foot (46,000 square metre) upscale shopping mall inside The Venetian Hotel & Casino and The Palazzo on the Las Vegas Strip in Paradise, Nevada.

The mall was opened along with the Venetian in 1999. The mall has indoor canals, where gondolas take people around the mall.

The mall is anchored by a flagship high-fashion Barneys New York store, and contains many designer and upscale boutiques. Live performances can be found throughout the mall. As of 2008, the mall was seeing 20 million visitors a year, among the highest in the country.

The Forum Shops at Ceasars is a 636,000 square foot (59,100 square metres) luxury mall connected to Caesars Palace on the Las Vegas Strip in Las Vegas, Nevada.

Built as an extension wing of the main hotel, the mall now fronts on The Strip. It is one of the most successful high-end shopping malls H&M Caears, Las Vegas

The Forum Shops at Caesars, Las Vegas locationgroup research | Retail Market Study 2012

453

in the United States and the highest grossing mall in America, with higher sales per square foot than Rodeo Drive in Beverly Hills. The venue includes more than 160 shops and haute couture boutiques, as well as eleven gourmet restaurants from names such as Bobby Flay and Wolfgang Puck.

The Forum Shops at Caesars is a top celebrity-sighting spot in Las Vegas, attracting various movie, sports and music celebrities.

Measuring 55,000 square feet spread over three levels, the newly opened H&M store at the Forum Shops at Caesars in Las Vegas is the biggest in the world. Offering women’s, men’s and children’s clothing, shoes and accessories, H&M Forum Shops at Caesars carries the Swedish retailer’s whole line of merchandise. Las Vegas is already home to two H&M locations — one at Town Square and one at the Miracle Mile Shops, making this the third location in the city.

Miracle Mile Shops is a 475,000 square foot (44,129 square metres), 1,5-mile (2,4-kilometre) long enclosed shopping mall on the Las Vegas Strip in Paradise, Nevada. It is home to more than 140 stores and 15 restaurants. Synonymous with retail districts throughout the country, the name connotes a shopping environment and also alludes to the „Miracle Mile“ district, as the casino renovates its image to a Los Angeles themed resort.

The Crystals Mall, Las Vegas

The Miracle Mile Shops, Las Vegas

454

locationgroup research | Retail Market Study 2012

The 300-million-dollar mall opened with the reconstructed Aladdin Hotel in August 2000 as the Desert Passage mall. It was built and operated by Trizec Properties. The mall had a Moroccan theme to match the adjoining Aladdin Hotel. The shopping complex featured an hourly indoor thunderstorm.

The mall was sold in 2003 to Boulevard Invest LLC owned by Investcorp, RFR Holding LLC, and Tristar Capital. To match the conversion of the Aladdin to a Planet Hollywood, the Desert Passage was renovated and adopted a new Los Angeles theme, being called Miracle Mile Shops.

The Crystals, also known as Crystals at CityCenter and Crystals Retail District, is CityCenter‘s 500,000 square foot (46,000 square metre) shopping mall and entertainment district that features fashionable clubs, gourmet restaurants, retailers, galleries, incidental offices and support areas.

The retail district was designed by Studio Daniel Libeskind and interior architecture by Rockwell Group. For the interior architecture, the Rockwell Group created an experiential environment that complements the overall city scene.

Crystals is a magnificent gathering place with an interactive atmosphere set within an abstract 21st-century park. The unprecedented collection of renowned retailers, including Louis Vuitton, Gucci, Tiffany & Co, Roberto Cavalli and Tom Ford, paired with oneof-a-kind galleries from artists such as Dale Chihuly, and signature restaurants from Wolfgang Puck and celebrity restaurateur Eva Longoria redefine the traditional shopping experience.

City Center, Las Vegas

The Crystals, Las Vegas locationgroup research | Retail Market Study 2012

455

92 Los Angeles hot new opening – Lanvin lands on Rodeo Drive .

LOS ANGELES (Spanish for “city of the angels”), or L.A. for short, is the largest city in California, and is located on the Pacific Ocean and the Los Angeles River.

With 3,8 million inhabitants, L.A. is the second largest city in the US after New York. The population of the Los Angeles conurbation is 11.8 million, the L.A. metropolitan has just under 13 million inhabitants, and the greater Los Angeles area has a population of 17,8 million, making it the world’s 17th largest metropolitan area. Residents of L.A. are referred to as Angelenos.

Beverly Hills, a city embedded in west L.A., has 35,000 inhabitants and a surface area of 14,7 square kilometres. The city is known for the numerous prominent American actors, directors and affluent Angelinos who make their homes there.

L.A. by dawn

Rodeo Drive is a Beverly Hill street comprising North and South Rodeo Drive, with Wiltshire Boulevard the dividing

Rodeo Drive Beverly Hills, Los Angeles

456

locationgroup research | Retail Market Study 2012

Chanel Rodeo Drive, Beverly Hills

line between them. Rodeo Drive, which is 2 miles (3,2 kilometres) long, extends from Sunset Boulevard in the north to South Beverly Drive in the south and is primarily known for its high concentration of international luxury retailers that sell pricey goods.

Rodeo Drive is also home to the world’s most expensive shopping malls, including The Rodeo Collection (421 North Rodeo Drive), whose stores, on five above and below ground levels, include Eres, Hervé Leger, La Perla, and Stuart Weitzman, as well as cosmeticsurgery clinics.

And then there is Two Rodeo, which was built in the early 1990s and where boutiques from Versace, Porsche Design, Breguet, Georg Jensen, Lalique, Jimmy Choo, Tiffany & Co. can be found.

With its fountains, Italian piazza, Spanish staircase and balconies, Two Rodeo Drive (also known as Via Rodeo), which runs parallel to the beginning of Rodeo Drive between Dayton Way and Wilshire Boulevard, is reminiscent of a cobblestone pedestrian shopping zone in Europe. Right next door on Wilshire Boulevard is the renowned Hotel Beverly Wilshire.

Hot new opening: Lanvin lands on Rodeo Drive It‘s here! It‘s here! No longer does the Golden State have to be jealous of freezing New Yorkers, septuagenarian Floridians, or partycrazy Las Vegans – Rodeo Drive got its first Lanvin boutique in January 2011, making it the fourth Lanvin boutique in the country. The intimate 400 square metre store houses both men‘s and women‘s collections, as well as those covetable Lanvin accessories.

The Rodeo Collection Rodeo Drive, Beverly Hills locationgroup research | Retail Market Study 2012

457

Pomellato opens largest boutique in Beverly Hills Italian jeweller Pomellato has opened its largest boutique to date, a 480 square metre, two-storey space at Rodeo Drive here, between Valentino and Dolce & Gabanna.

Following US locations in New York, Bal Harbour, Fla., and Chicago, the store, framed by a stone facade emulating Roman arches, is the first to house both the signature collection and its younger brand, Dodo.

Tom Ford on Rodeo Drive The first of 28 locations worldwide to offer womenswear, Tom Ford’s new Rodeo Drive destination introduces a new retail design concept for the brand. Ford and long-time collaborator William Sofield re-interpreted the two-storey, 850 square metre location to appeal to the female consumer, resulting in light-filled spaces, pale grey, high-gloss silver and blue-grey marble floors.

Lanvin Rodeo Drive, Beverly Hills

Tom Ford Rodeo Drive, Beverly Hills

458

locationgroup research | Retail Market Study 2012

The Rodeo Drive boutique houses a perfumery, where Tom Ford Beauty and Tom Ford Private Blend fragrances line polished chrome shelves. Up a mirrored staircase, one will find the full collection of the recently launched womenswear, divided into three salons: handbag and shoes, eveningwear, and daywear. The men’s collection is housed on the ground floor.

The Beverly Hills Center is a monolithic eight-storey structure located at the edge of Beverly Hills and West Hollywood, California, between La Cienega and San Vicente boulevards.

Anchor tenants include Macy‘s,and Bloomingdale‘s. While the mall features staples of American retail – such as Banana Republic, Victoria‘s Secret, and Forever 21 – it is also home to several highend designer boutiques, including Armani Exchange, Just Cavalli, D&G Dolce & Gabbana, Louis Vuitton, Calvin Klein, Ben Sherman, Diesel, Gucci, Prada, The Ferrari Store, Burberry, Fendi, and Hugo Boss.

Along with the retail and designers‘ boutiques, Beverly Center offers a full food court, guest service desk, valet parking, and taxi services. The mall also has several restaurants including Pinkberry

and The Grand Lux Cafe. The mall‘s Rooftop Terrace offers sweeping views of the Hollywood Hills, Downtown Los Angeles, and the Los Angeles Westside.

The Center‘s externally-visible escalators previously resembled similar escalators at Centre Pompidou in Paris, France; however, the escalators underwent renovation in 2007 and now have a significantly different, highly enhanced appearance, which affords visitors a significantly expanded view of the surrounding area and the hills to the north.

Robertson Boulevard is a street in Los Angeles that also passes through the incorporated cities of West Hollywood, Beverly Hills, and Culver City. Robertson Boulevard is a major north-south thoroughfare on the Westside of Los Angeles.

The northern part of the street in West Hollywood and Beverly Hills is a trendy tree-lined shopping district. Robertson Boulevard has recently become a haven for celebrities and paparazzi. This is partially due to a large influx of unique boutiques and designer clothing & jewellery stores such as Agnes B, Curve, Lisa Kline, Kitson Boutique, Beach Bunny Swimwear, and Erica Courtney (right

Beverly Center, Beverly Hills locationgroup research | Retail Market Study 2012

459

Approximately 24 miles (39 kilometres) in length, the famous boulevard roughly mimics the arc of the mountains that form the northern boundary of the Los Angeles Basin. From downtown Los Angeles, it heads northwest, to Hollywood, through which it travels due west for several miles before it bends southwest, on course to the Pacific.

The best-known section of Sunset Boulevard is probably the Sunset Strip in West Hollywood, which is a centre for nightlife in the Los Angeles area. The portion of Sunset Boulevard from the city limits of Beverly Hills to its western end was at one time named Beverly Boulevard.

Hollywood Boulevard, West Hollywood Los Angeles

next door to The Ivy), which is a mecca for many celebrity shoppers.

In addition, several popular celebrity-infused eateries are located on Robertson Boulevard, such as The Ivy and Newsroom Cafe. The Kabbalah Center is also located on the street.

Sunset Boulevard is a street in the western part of Los Angeles County that stretches from Figueroa Street in downtown Los Angeles to the Pacific Coast Highway at the Pacific Ocean in the Pacific Palisades. The street is an icon of Hollywood celebrity culture and the phrase „Sunset Boulevard“ is enduring shorthand for the glamour associated with Hollywood.

The Standard Hotel Sunset Boulevard, West Hollywood Los Angeles

460

locationgroup research | Retail Market Study 2012

93 Mexico City, luxury street Avenida Presidente Masaryk established .

Mexico’s capital, MEXICO CITY, is a federal state in its own right, with 8,8 million inhabitants. The greater Mexico City area (Zona Metropolitana del Valle de México, or ZMVM) has a population of 20 million, thus making Mexico City the world’s largest metropolitan area. Most of the city’s population growth is provoked by migration, as Mexico City’s birth rate is only 1,7.

Mexico City offers an immense and varied consumer retail market, with thousands of options for everything from the very basic foods to ultra high-end luxury goods.

Hundreds of modern retail shops and a large number of shopping centres There are hundreds of modern retail shops throughout the city.

There is also a number of large shopping centres and malls, including Santa Fé mall in the Santa Fé district with several department stores and over 300 retail stores, restaurants and cinemas. Others include Plaza Universidad, Plaza Satélite, Galerías Coapa, Parque Delta, Parque Lindavista, Pabellón Polanco, Pabellón Bosques, Mundo E, Perinorte and Plaza Lindavista, with anchor stores such Palacio de Hierro Santa Fé, Mexico-City

Mexico-City by Night locationgroup research | Retail Market Study 2012

461

Well-known Mexican boutique brands, such as Pineda Covalin, La Hamaca y el Rebozo and Soho, are available in most upper-end shopping areas.

Most modern shopping centres in Latin-America Centro Coyoacán, Santa Fé, Perisur, Antara Polanco, and boutique malls Arcos Bosques and Altavista 147 are amongst the most modern and swank in Latin America. Top-end department stores include El Palacio de Hierro and Saks Fifth Avenue (whose store at Santa Fé mall is one of only three outside the US).

Plaza Satélite mall is Latin America‘s highest profit shopping venue. For a more bohemian ambiance, the neighbourhoods of Condesa, Coyoacan and San Ángel offer excellent outdoor shopping and dining experiences.

Altavista 147 Mall, Mexico-City

as El Palacio de Hierro, Liverpool, Sanborn‘s, Sears, and Fábricas de Francia.

The luxury Punta Norte Outlet Mall The Punta Norte Outlet Mall is located north of the city and includes many upscale outlet stores for brands such as Max Mara, Salvatore Ferragamo, Hugo Boss, Scappinio and Zegna.

The luxury market in Mexico In addition to the extensive Santa Fé mall with Saks and numerous luxury boutiques, Antara Polanco is a high-end mall in Polanco with restaurants, cinemas, and boutiques, including Burberry, Longchamp, Just Cavalli, Etro, Emporio Armani, Brooks Brothers, Thomas Pink, Hackett and Coach.

Altavista 147 is a small shopping centre in the southern neighbourhood of San Ángel, with Louis Vuitton, Salvatore Ferragamo, Caro-

Galerias Insurgentes, Mexico-City

462

locationgroup research | Retail Market Study 2012

lina Herrera, Max Mara, Hugo Boss the Mexican luxury silversmith Tane. The mall is located on Avenida Altavista, which houses many other high-end retailers, focusing on furniture shops and interior decorators, restaurants, and silversmiths such as Christofle.

Col. Del Valle one of the largest residential colonies prestigious of Mexico City Col. Del Valle is famous for its large green areas, parks, monuments, department stores, boutiques, K-Fe (cafeterias), Holiday Chocolate, exclusive restaurants scattered throughout the colony, with two luxury shopping malls, Galerías Insurgentes and Centro Coyoacán.

The two shopping centres contain the large department stores El Palacio de Hierro and Liverpool, and these two contain the most exclusive boutiques like Armani, BCBG Max Azria, Burberry, Chanel, DKNY, Hermès, Lancôme, Liz Claiborne, Longchamp, MaxMara, Oscar De La Renta, Purificación García, and Salvatore Ferragamo, to mention some boutiques, jewellery such as Bulgari, Cartier, Longines, Marc Jacobs, Michael Kors, Rolex and Swarovski, for some dimensions. The neighbourhood also houses car dealerships for Alfa Romeo, BMW, Ferrari, Lamborghini, Maserati, Mercedes Benz, Porsche and many others. Restaurants such as Bellini, the only revolving restaurant in the country and known as „the biggest revolving restaurant in the world“ and Suntory are known to be the most exclusive restaurants in all of Mexico.

Arcos Bosques Mexico-City

Arcos Bosques new shopping complex Arcos Bosques is a relatively new shopping complex in the namesake business complex in the upscale Bosques de las Lomas neighbourhood, near Santa Fe. The complex hosts scores of restaurants, including a branch of Nobu, and smart shops including Edmond Frette, Marc Jacobs, Thomas Pink, and Salvatore Ferragamo.

Avenida Presidente Masaryk in Polanco Most of the city‘s luxury boutiques are located on Avenida Presidente Masaryk in Polanco. Here, stand-alone shops include Louis Vuitton, Bulgari, Cartier, Chanel, Hermès, Frette, Ermenegildo Zegna, Etro, Brioni, Canali, Corneliani, Chopard, Gucci, Marc Jacobs, Tiffany & Co. and Roberto Cavalli. Other stores include European furniture retailers Roche-Bobois, Natuzzi and Kartell. On smaller side streets, one can find stores such as a luxury French book publisher Assouline, Adolfo Dominguez and Mitchell Gold + Bob Williams.

Brioni Opens outpost in Mexico City Brioni breaks new grounds as it opens its first ever boutique in Mexico. Located at Avenida Presidente Masaryk, the most exclusive area of the city, the new Brioni boutique is spread over two floors and measures 450 square metres.

The new boutique in Mexico City follows the recent openings in Barcelona, Beijing, Shanghai, and Tokyo, with more locations expected to open in the rest of 2010.

Galerias Insurgentes, Mexico-City locationgroup research | Retail Market Study 2012

463

Brioni Avenida Presidente Masaryk, Mexico-City

Salvatore Ferragamo Avenida Presidente Masaryk, Mexico-City

Jaeger-LeCoultre, Mexico-City

Hermès to expand further in Latin America focusing on Mexico and Brazil In an interview to AFP, Patrick Albaladejo, Vice President of Hermès, has spoken about his company‘s plans to further expand in Latin America and creating regional headquarters in Sao Paolo.

With eight stores in Latin America (four in Mexico, one in Brazil, one in Argentina, and one in Panama), Hermès will primarily focus on development in Mexico and Brazil. A second boutique in Sao Paolo is a priority for the next three to four years.

Jaeger-LeCoultre opened new boutique in Mexico, the 40th in the world In July 2011, Manufacture Jaeger-LeCoultre opened its first boutique in Mexico City. With this new location and along with the recent inaugurations in Macau and Hong Kong, Jaeger-LeCoultre will now have 40 boutiques worldwide.

Salvatore Ferragamo expands in South America The plan to expand in South America of Salvatore Ferragamo is set to open ten mono-brand stores and twelve shop-in-shops (corners) by 2015, targeting Colombia, Chile, Peru. Ferragamo opened its first mono-brand franchise earlier this year in Peru, in the capital city of Lima.

The expansion will bring Ferragamo‘s presence from 84 doors (at present) to 106 doors. Currently, Ferragamo operates 19 monobrand stores in South America, seven in Mexico, four in Brazil, and the rest in Chile, Colombia and Argentina.

464

With a space of over 120 square metres, the new boutique is the largest in Latin America and will become a place of numerous encounters for collectors and lovers of fine watchmaking.

Pal Zileri new opening Pal Zileri continues to grow on the international market. The Vicenza-based brand, symbol of Made in Italy excellence in the menswear sector, conquers another small piece of the Americas. This is in Mexico City, where the Italian company already boasts a strong presence, with six single-brand and multi-brand stores distributed throughout the capital city.

The recently inaugurated seventh sales point is located in a new corner inside the Antara Shopping Mall. The space of around 80 square metres is dedicated entirely to the Pal Zileri Lab line, which with its young, innovative and simultaneously elegant style, is per-

locationgroup research | Retail Market Study 2012

fectly suited to the modern environment of large shopping malls.

Damiani opened flagship store On the wake of a good period, the expansion continues of Damiani that opened a new boutique in the Palacio de Hierro Interlomas department store in December 2011.

The new flagship store offers the opportunity to admire and buy the most representative Made in Italy collections of the brand, consolidating its presence in the American market and so placing next to the new store those of Los Angeles, New York, Honolulu, and Monterrey.

Seophora plans to open additional stores throughout Mexico in 2012 Beauty retailer Sephora has opened an underground, 5,400 square foot store in Antara Fashion Hall. The retailer partnered with Grupo Axo on the store, with a second Mexican location scheduled to open in midNovember in the Paseo Interlomas Mall.

Shoppers enter the Antara Mall space, which was designed by a joint Mexican and American team through a large circular stairway descending from a mall entrance above. A circular 30-foot wall of blue LED lights encircles the stairwell with the central shaft of the circular stairway designed as a media wall. The retailer plans to open additional stores throughout Mexico in 2012.

Antara Shopping Mall, Mexico-City

Accessorize expands British fashion brand Accessorize is expanding into Mexico after its first store that was opened in May 2010 has proved to be a huge success. It has now opened a second store in Mexico and hopes to open another two before the end of the year.

The most recent store in Mexico City was inaugurated by Jeremy Browne, the UK’s Foreign and Accessorize is not the only UK retail brand to spread its wings in Mexico, with Burberry and Thomas Pink among those who have also increased their influence across the country’s growing retail sector.

Paseo Interlomas Mall, Mexico-City

locationgroup research | Retail Market Study 2012

465

94 Sao Paulo, Iguatemi – best shopping location in Latin America .

Chanel, Hermès, Burberry, Carolina Herrera, Marc Jacobs, Goyard, Celine, and Jimmy Choo are just some of the major international luxury brands which have opened mono-brand stores in Sao Paolo over the past two years, most of them operated in franchising.

Brazil currently accounts for just 7,59 billion dollar in luxury revenues, or about 1 % of the global market. But its growth rate is 22 % a year, far outpacing several more established markets and even Brazil‘s general retail sales, which rose by an estimated 11 % in 2010. And the country‘s luxury sales are now almost twice the value of 2006.

Chanel closed its franchise shop inside Daslu Villa and opened at Citade Jardim “This is now the time for us to consolidate our presence there, directly operating the boutique network, as we do elsewhere,“ said Bruno Pavlovsky, President of Chanel‘s fashion division. After more than a decade under the operation of Daslu, Brazil‘s leading luxu-

Sao Paulo by Helicopter

SAO PAOLO, the capital of the eponymous state and Brazil’s largest city, is Latin America’s largest industrial conurbation. Sao Paolo proper has a population of 10,7 million, while the greater Sao Paolo area has 19,8 million inhabitants, making it one of the world’s largest cities and the most densely populated urban area in the Southern Hemisphere. Depending on which statistics are applied, Sao Paolo is the world’s fifth or sixth largest metropolitan area.

Brazilians are getting richer and will continue to drive growth in the luxury market, boosting sales of everything from Louis Vuitton’s Speedy bags to Chanel’s Particulière nail polish, and luring new brands such as Prada and Fendi to local shopping malls next year.

Brazil‘s luxury boom Sao Paolo, Brazil‘s leading business and financial hub, is currently concentrating most of the country‘s luxury market.

View from the Unique Hotel, Sao Paulo

Sao Paulo Skyline

466

locationgroup research | Retail Market Study 2012

ry retailer for the past 50 years, Chanel earlier this year closed its franchise shop inside the four-storey Daslu Villa here.

Last July, it took over the management of its store in Shopping Citade Jardim, where it stands on the same floor with Hermès’ first store in Brazil, a concession which was opened in late 2009 and near Louis Vuitton, which has been directly operating its stores in Brazil since 1999. This move had an immediate 30 % price drop effect on Chanel‘s prices, this way cutting out an extra commission. A second Chanel store in Sao Paolo opened at the end of 2010 within Shopping Iguatemi Mall, across the Gucci store.

Jardins, Citade Jardim is not as easily accessible Far removed from the Oscar Freiere and Haddock Lobo, the two main luxury streets in Jardins, Citade Jardim is not as easily accessible as Iguatemi. Its location could be the one reason Citade Jardim attracts only about 15,000 consumers per day, a third of the number who visit Iguatemi. Still, Citade Jardim‘s consumers spend big, averaging 1,700 dollar on a visit, almost six times the Brazilian minimum wage.

Iguatemi is the best location in the Latin American market It is a strong and growing luxury fashion environment, with other brands opening regularly. „Citade Jardim is a new ultra-luxury shopping mall with a very strong potential expected for the end of Iguatemi Shopping Mall commercial with Ana Beatriz Barros

„Brazil‘s rich are getting richer“ Suzy Menkes locationgroup research | Retail Market Study 2012

467

2011 when the project which includes residential and office buildings as well as a new road to avoid traffic are scheduled to be completed,“ said Pavlovsky.

Although Sao Paulo concentrates more than 70 % of Brazil‘s luxury market, there is potential in other cities too. Iguatemi already has a mall in Brasilia, where Burberry opened its first directly operated store in May 2010, which was followed by a second opening of a Burberry store within the Iguatemi Mall in Sao Paolo in December 2010. A site being eyed by luxury brands in Rio de Janeiro is the Village Mall, which is being planned in the city‘s Barra da Tijuca neighbourhood.

Citade Jardim Shopping-Mall, Mexico-City

Nicole Kidman has been hired Nicole Kidman has been hired to promote the new project which is due in 2012. Iguatemi is expanding in Sao Paolo and is soon expected to unveil a second address, Shopping JK Iguatemi, which insiders say is expected to see Gucci Group‘s first directly operated stores in Brazil. Hermès, which is operated in franchising by local luxury real estate company JHSF, is reportedly looking for a second location in Sao Paolo and a location for its first store in Rio de Janeiro.

Rua Oscar Freire, Sao Paulo

468

locationgroup research | Retail Market Study 2012

Rua Oscar Freire is the eighth most luxurious street Rua Oscar Freire is a tree-lined street stretching from Alameda Casa Branca to Avenida Doutor Arnaldo in the Jardins district of São Paulo. It was named after Oscar Freire de Carvalho, a physician and forensic medicine professor from Bahia, who helped develop the city‘s first morgue (Instituto Médico Legal).

According to Excellence Mystery Shopping International, Rua Oscar Freire is the eighth most luxurious street in the world and second in the Americas behind Fifth Avenue in New York.

Designer Carlos Miele

Stores on Rua Oscar Freire Shops located on Rua Oscar Freire and surrounding streets include Louis Vuitton, Armani (Giorgio Armani and Emporio Armani lines), Carmen Steffens, Dior, Montblanc, Cartier, MaxMara, Ermenegildo Zegna, Versace, Diesel, Cavalli, Bulgari, Salvatore Ferragamo, Marc Jacobs, Gant, Lacoste, Timberland, Tommy Hilfiger, Nike, Adidas, Benetton. Top-notch Brazilian fashion is present with the likes of Alexandre Herchcovitch, Cris Barros, Reinaldo Lourenço, Glória Coelho, Animale, Forum, Ellus, NK Store, Sergio K, Havaianas, Carlos Miele, Cavalera, Le Lis Blanc, Canal, Triton, Iódice, and Osklen.

National high-end jewellery stores include Vivara and H Stern.

Sophisticated food shops and restaurants can also be found.

Among them are A Figueira Rubaiyat, Fasano, Antiquarius and Gero, four of the city‘s most traditional and expensive restaurants, as well as world-famous Häagen-Dazs. There is a Nespresso store and in 2010 a Valrhona boutique was opened.

Havaianas opened their first store in Brazil in 2009 on Rua Oscar Freire one of the world‘s most expensive addresses.

Havaianas Rua Oscar Freire, Sao Paulo locationgroup research | Retail Market Study 2012

469

95 Buenos Aires, luxury mile Avenida Alvear of great interest . urable weather conditions they encountered when departing on ocean journeys.

Buenos Aires, the official surface area of which is 203 square metre kilometres, forms the core of South America’s largest metropolitan region, Gran Buenos Aires, which has 13 million inhabitants.

Buenos Aires and in particular the surrounding area are home to around one third of all Argentineans. Buenos Aires was named a UNESCO City of Design in 2005.

Galerías Pacífico One of Argentina’s most successful shopping malls, Galerías Pacífico was declared a national historic monument owing to the undeniable aesthetic value of its architecture and its striking murals.

Galerias Pacifico Shopping Center, Corner Florida Street/Córdoba Avenue, Buenos Aires

Buenos Aires is the capital of Argentina and the country’s political, cultural, commercial and industrial centre. The city got its name from Santa María del Buen Ayre (“St. Mary of the Good Wind”), who is the patron saint of mariners – a name the city’s founding fathers decided to adopt to show gratitude for the favo-

Located at the corner of Florida Street and Cordoba Avenue, Galerías Pacífico is frequented by over 900,000 visitors a month who are highly literate and have a high socioeconomic status. The mall has more than 11,000 square metres of retail space, more than 150 stores and a food court with more than 18 vendors.

Chanel opened its first Argentinean boutique here in October 2011 (70 square metres) at a prime location at Galerías Pacífico.

Yves Saint Laurent inaugurated its first outlet in Argentina, a shopin-shop at Falabella department store, near Buenos Aires.

Galerias Pacifico Shopping Center, Buenos Aires

470

locationgroup research | Retail Market Study 2012

Palace Hotel Avenida Alvear, Buenos Aires

Avenida Alvear: Buenos Aires’s main shopping street The main shopping street in Buenos Aires is Avenida Alvear, where the presence of numerous major retailers make this the city’s top shopping area.

Avenida Alvear, which extends over seven blocks (a block is around 110 metres long) from Plazoleta Carlos Pellegrini to Plaza Alvear, is known not only for its pricey stores, but also for its French-style palatial buildings that were very popular among Argentina’s upper crust in the early 20th century.

Construction of Avenida Alvear began in 1885 at the behest of Mayor Torcuato de Alvear, who is remembered for his urban development projects that emulated those of Baron Haussmann in Paris.

The best known examples of Belle Epoque architecture on Avenida Alvear are Palacio Ortiz Basualdo and Palacio Pereda, which today house the French and Brazilian embassies, respectively. Other well-known buildings include Palacio Duhau (now a Park Hyatt Hotel), the neighbouring Palacio Fernández Anchorena (now the Vatican embassy) and Alvear Palace Hotel (1932).

Panerai Boutique Avenida Alvear, Buenos Aires locationgroup research | Retail Market Study 2012

471

cated right near fellow luxury retailers Louis Vuitton, Cartier und Hermès, and opposite the Palace Hotel.

Panerai to debut in Buenos Aires The new Panerai Boutique in Buenos Aires opens in Avenida Alvear 1814, the famous boulevard located in the charming Recoleta district. This area features an abundance of parks, boulevards, museums, and palaces of great historical and architectural interest. The buildings on Avenida Alvear, among which the Hotel Alvear stands out, for the most part date back to the period between 1880 and 1920 and evoke an important past. The rooms of this supremely elegant hotel have offered hospitality to royalty and heads of state, and along the boulevard stroll world-renowned personalities from the worlds of the arts, business and entertainment.

Boutique Cardon Avenida Alvear, Buenos Aires

The designer boutiques along Avenida Alvear include Armani, Valentino, Hermès, Louis Vuitton, and Ermenegildo Zegna. The street ends in the north at the La Recoleta cemetery.

In the charming setting of the Avenida, the Panerai Boutique proposes its foremost creations which are arousing ever growing interest on the international market. An Italian success story achieved thanks to a perfect balance between state-of-the-art technology, impeccably sound mechanisms and an alluring aesthetic impact, all features of watches whose fame now extends from the European markets to those of South America, the United States and Japan.

Montblanc opens opposite Palace Hotel In September 2011, the writing implement company Montblanc opened a 180 square metre store on Avenida Alvear, which is lo-

Breitling new in Argentina In December 2011, the watch brand Breitling opened its first Ar-

Hope Boutique Palermo, Buenos Aires

Hope Model Gisele BĂźndchen

472

locationgroup research | Retail Market Study 2012

gentinian boutique, located in the iconic Alvear Avenue, opposite the Alvear Palace Hotel. The unique store has 32 square metres of retail space with innovative design combining wood and walnut quadrille, creating a warm, cosy and intimate atmosphere where the client can feel and experience the aircraft heritage of the brand.

Cardon opens second store on Avenida Alvear The Argentinian retailer Cardón opened its second store on Avenida Alvear in 2010. The 350 square metre store is decorated according to the brand’s new style and has four display windows. Cardón’s new hallmark store occupies a building that is emblematic in the city, built in 1924 by the renowned architect Alejandro Bustillo, its front is approximately 15 metres wide in a historically protected area.

Omega opens first flagship store in Argentina In November 2011, the luxury watch and jewellery company Omega opened a store on Buenos Aires’s Avenida Libertador.

Lacoste opens first Buenos Aires outlet Lacoste opened a 200 square metre flagship store on Buenos Aires’s Santa Fe Avenue.

La Prairie opened flagship at Airport Switzerland-based high-end cosmetics group La Prairie has opened a new flagship travel-retail store at the Buenos Aires Ezeiza International Airport.

This is the group‘s third travel-retail store overall and their first in the Americas. The other two stores are located at Zurich Airside Center and Hong Kong International Airport. The store is spread over 18 square metres inside the airport‘s 2 500 square metre departures store.

Starbucks plans to open 300 new coffee shops in Argentina & Mexico Since arriving three years ago, Starbucks has been opening new locations in Argentina at a rate of twelve per year. In fact, the company just opened the 36th location at Alto Rosario shopping centre, outside Buenos Aires, a coffee shop with 120 square metres. Alsea, the Mexico-based franchiser of Burger King, Domino’s Pizza and P.F. Chang’s, has extended its Starbucks rights through 2027 and plans to open 300 new Starbucks in Argentina and Mexico over the next five years. Considering Argentina has roughly 40 % the population of Mexico, that could mean 120 new Starbucks in Argentina between now and 2015, or 25 per year.

Avon with flagship at Santa Fe Avenue Avon Cosmetics opened a new sales centre in Buenos Aires city exclusively for resellers and area managers. This point of sale is located in Santa Fe Avenue 2302, one of the most emblematic commercial areas of the city. „With this new project, we aim to continue growing while offering our resellers benefits that will complement our current sales channels,“ said Paulo Moledo, general manager of Avon for Southern markets.

Hope expands with first store to Argentina Hope, one of Brazil’s top underwear brands, has opened its first shop in Argentina, on 120 square metres in a historical building in Palermo Soho, Buenos Aires. This is Hope’s sixth foreign store, as it has two shops in Israel and three in Portugal. Until the end of 2012, the company wants to open ten stores in Argentina.

Breitling, Buenos Aires locationgroup research | Retail Market Study 2012

473

474

locationgroup research | Retail Market Study 2012

locationgroup research | Retail Market Study 2012

475

Mergers and Acquisitions .

Bulgari becomes French

By Gesche Wüpper No sooner had the scandal surrounding designer luminary John Galliano and his clandestine defection to French retailer LVMH’s competitor Hermès died down than the company was making headlines yet again by acquiring the Italian jewellery and watch company Bulgari for an estimated 3,7 billion euro. For LVMH chief Bernard Arnault, who is an avid acquisition hunter, the takeover of Bulgari was the company’s largest acquisition in around ten years.

Mr. Arnault, who has close ties with French president Nicolas Sarkozy, has bagged more than 50 prize brands for his organisation, including the fashion handbag retailer Louis Vuitton, the designer clothing labels such as Kenzo and Christian Dior, and the Champagne brands Moët & Chandon and Veuve Cliquot. That said, LVMH’s acquisition of Bulgari represents more than just another feather in the company’s retail cap, for in Bulgari LVMH has at long last got itself a world class jewellery and watch brand, which had been missing from the company’s portfolio. “The merger is the perfect combination,” said Mr. Arnauld concerning his latest trophy.

Louis Vuitton New Bond Street’s store – new and opulent In May 2010, the luxury retailer Louis Vuitton celebrated the 125th anniversary of its presence in London – an occasion used by the French company to open an opulent new store on New Bond Street.

Bulgari takeover In contrast to the Hermès scenarios, where the family that owns the company fought off a takeover attempt by LVMH, Mr. Arnault was able to come to an agreement with Bulgari’s owners. The family heirs to Bulgari, which was founded in Rome in 1884 by silversmith Sortirio Bulgari, ceded their 50,4 % share in the company to LVMH, in exchange for which they acquired a 3,5 % stake in LVMH, thus becoming its second largest shareholder after the Arnault family, who control 47,38 % of LVMH’s capital through a holding company. As for the outstanding Bulgari share, LVMH will be making a public takeover offer.

Hermès takeover Events unfolded quite differently for Hermès, which is mainly known for its handbags and silk scarves. In October, LVMH had announced, to everyone’s surprise (the Paris stock exchange was in a state of shock) and to the great consternation of the Hermès family heirs that LVMH would be acquiring a stake in Hermès via an equity swap. The scenario was reminiscent of Porsche’s actions in connection with Volkswagen, and how the auto supplier Schaeffler had treated its competitor Continental. The swap called for LVMH chief Arnault to acquire two thirds of his stake in Hermès via an equity swap that he had announced back in 2008. Under such an equity swap agreement, investors speculate on how the share price will evolve, without actually purchasing the shares. The profits

476

are ultimately disbursed via a cash instrument by a counterparty, usually a bank, which for collateralisation purposes oftentimes buys the shares of the company that its customer is speculating on. In the autumn of 2010, LVMH instructed that the invested sum be paid out not via a cash instrument, but rather in the form of Hermès shares. In the meantime, LVMH received around 20 % of Hermès shares. The Hermès family heirs, who held 73 % of the shares, were incensed.

Art and fashion In contrast, Mr. Arnault’s latest coup has been marked by harmony.

“Joining my company and the Bulgari family is an ideal merger from every standpoint,” says Mr. Arnault. “For in point of fact we share the same culture with this family, which respects the origins of our brands.” As a sign of mutual agreement, the Bulgari family heirs will be allowed to keep their positions in the company – which means that the grandchildren of the company founder, board chairman Paolo Bulgari and deputy board chairman Nicola Bulgari, will stay on. Plus their family will have two seats on the LVMH board.

And their nephew, Francesco Trapani, who is currently the Bulgari COO, will, in the latter half of the year, take over as head of the entire jewellery and watch division of LVMH, which Bulgari will merge with.

Bulgari, whose latest annual sales amounted to over 1 billion euro and is the world’s third largest jewellery company after Cartier (a member of the Richemont Group) and Tiffany, has long been seen as a possible takeover target by virtue of its being one of the few luxury retailers where the majority of the shares in the company are still held by its family heirs. Moreover, the group, which added perfumes and accessories to its portfolio in the 1990s, had suffered a loss in 2009 for the first time since it went public in 1995. But Bulgari’s COO Franceso Trapani had stated in an interview a few months previously that his family wished to retain control of the company’s shares.

LVMH jewellery and watch sales The LVMH Group, which includes brands such as Tag Heuer, Zenith, Hublot, Dior Montres, Chaumet, and Fred, registered a 29 % increase (to 985 million euro) in its watch and jewellery sales last year.

And now that LVMH has acquired Bulgari, which industry analysts say was a smart strategic move, it will be able to nearly double the sales of its smallest division and surpass Cartier as the worldwide market leader.

The acquisition hunter A native of the northern French city of Roubaix, LVMH chief Bernard Arnault has over the past three decades acquired the reputation of being an avid acquisition hunter. After graduating from France’s top management school, he went to work for the family business,

locationgroup research | Retail Market Study 2012

where he persuaded his father to abandon the company’s core business and go into real estate instead. When François Mitterrand came to power in 1981, Arnault migrated to the US out of fear of the economic policies that Mitterand’s socialist government might pursue. But a mere three years later he was back in France, where he took over – with financial assistance from the French government – the Boussac Group, an apparel concern that was on the edge of bankruptcy.

The government provided Arnault with a 750 million franc (125 million euro) subsidy to help bail out Boussac. And though Arnault swore up and down at the time that he had no intention of gutting the company, he broke his promise by closing factories and selling off the company’s subsidiaries, and only held on to the Paris department store Bon Marché and the fashion house Christian Dior, which he intended to use as the cornerstones of his envisaged empire.

In the late 1980s, Arnault pulled off his next coup when the LVMH shareholders asked him to help settle the dispute between the co-chairmen of the group that had been formed from the merger of Louis Vuitton and Moët Hennessy. Arnault bought 22 % of the company’s shares on the stock market, allied himself with the Guinness family, and took over the reins of power. Up until then the piano-playing husband of concert pianist Hélène Mercier had only lost a battle in the takeover war – the one involving Gucci, in which, as with Hermès, Arnault acquired only a minor share stating that LVMH had no plans to take over the entire company. But when, in 1999, he tried to do just that, Gucci asked Arnault’s adversary, PPR founder François Pinault, to come to the rescue. The two billionaires were in fierce competition with each other at the time, such that the minute either man bagged a prestigious company, the other tried to one-up him.

This conflict has apparently faded into the background, particularly since the time PPR founder Pinault passed the baton to his son, François-Henri. But that does not mean that Mr. Arnault has lost his fondness for a good contest. And in fact, by acquiring Bulgari, he was trying to one-up Mr. Pinault. According to industry analysts, Richemont, Swatch and PPR had all expressed an interest in acquiring Bulgari. And while Arnault paid through the nose for Bulgari, many analysts feel that the high price was thoroughly justified.

So all that’s now missing from Arnault’s fleet of brands is Hermès.

And while in public he claims that he has acquired a share in Hermès only with the best intentions and has no intention of taking over the entire company, informed sources say that he has been dreaming for years of doing just that. In any case, the Hermès family heirs have no intention of gifting Mr. Arnault in this fashion, regardless of whether or not it is his birthday.

locationgroup research | Retail Market Study 2012

Brioni becomes also French

By Inga Griese, Andre Tauber and Gesche Wüpper The Italian men’s outfitter Brioni is now a member of the financially robust conglomerate PPR, a move that can only work to Brioni’s benefit, as it was short on cash and lacked a clearly defined growth strategy. Brioni represents the pinnacle of Italian tailoring acumen, in the guise of custom-made suits that can easily cost tens of thousands of euro. In the US this year, Brioni was even named the most desirable men’s luxury brand. But meanwhile back in Milan, the company was in dire financial straits, and in the wake of a family dispute lacked the capital needed to finance growth and investment.

But now, Brioni will be able to get back on its feet again. In November 2011, the French luxury retailer PPR announced that it had acquired Brioni and that it intends to strengthen the company. „We’ll be giving them access to our know-how and experience, so that the company can turn the page and enter a new era,“ PPR chief François Pinault said in Paris. Which, translated into less diplomatic language, basically means this: for a long time now Brioni has been failing to fulfil its potential. But all that is about to change.

Bruised Italian egos The acquisition hurt the feelings of many Italians, who would very much like to debate with France the issue as to who plays the leading role in the luxury goods sector. The Italian public had already expressed shock in January at LVMH’s purchase of Bulgari.

“Once again, we’ve sowed the seeds while others have reaped the harvest,” lamented the business newspaper Sole 24 Ore. PPR and LVMH have between them acquired a whole series of prestigious Italian companies besides Bulgari, such as Bottega Veneta, Fendi, and Gucci.

Smaller luxury retailers under massive financial pressure The time is long gone when it was sufficient to have one store each in Milan, New York, London, Paris, and Tokyo and simply hope that customers would flock to your store to buy your wares. For today, customers in China, Brazil, Russia and even countries such as Mongolia or Kazakhstan expect luxury boutiques to set up shop in their cities as well. But many SMEs lack the capital to keep pace with this global competition.

This applied to Brioni – in spades. The company’s sales last year amounted to only 170 million euro, which is amazingly small for a brand that is known worldwide. PPR, on the other hand, earned more than 14,6 billion euro in sales, and the figure for LVMH was 20 billion euro. And it is the same with the sales of the other leading Italian labels: Prada, 2 billion euro; Armani 1,6 billion euro; Dolce & Gabbana 1,1 billion euro; and Ermenegildo Zegna 963 million euro.

477

So in this regard, Mr. Pinault should be quite pleased with his purchase, as, according to him, he paid “substantially” less than 350 million euro for Brioni. According to the Rome newspaper Repubblica, the base price was 220 million euro, with an additional 100 million euro to follow provided that Brioni meets its mandated sales goals. However, no official confirmation of this has been forthcoming. For PPR, its new subsidiary is more than just a mere bargain, for the company plans to substantially expand its luxury goods activities, for the simple reason that they are the most powerful driver of PPR’s growth. Thus, for example, despite the crisis, PPR’s luxury goods sales rose by 23 % in Q3, versus only a 7 % rise in the company’s sales as a whole (to 3,9 billion euro).

And Mr. Pinault should also be pleased about the purchase from a personal standpoint, because henceforth he can wear Brioni at balance sheet press conferences; for up until now the company was lacking a men’s custom outfitter.

Alshaya takes over La Senza The bankrupt British lingerie chain La Senza has found a buyer for part of its activities, in the guise of Alshaya UK Limited, which took over 60 La Senza stores for an undisclosed price, thus rescuing 1 100 British jobs from the chopping block.

However, according to La Senza, no buyer has been found for the 81 outlets that were closed as at 30 December 2011. In addition, the receiver KMPG announced the closure of three additional stores and 18 franchises. The closing of 84 stores and 18 franchises came at the cost of 1 300 jobs.

Alshaya UK Limited is a member of the Alshaya Group, which according to KPMG is a leading international retailer headquartered in Kuwait. M.H. Alshaya Co. partners with 55 brands worldwide, including Next, Topshop, Debenhams, H&M, and Victoria’s Secret.

Founded in 1890, the company operates more than 2 000 stores in ten countries in the Middle East, North Africa, Turkey and Europe and is also active in the automotive, hotel and investment sectors.

The top 12 deals of 2011

By Vicki M. Young with contributions from Samantha Conti, Luisa Zargani 1) LVMH BUYS BULGARI LVMH Moët Hennessy Louis Vuitton in March agreed to acquire 50,4 % of Italian jeweller Bulgari from the firm’s largest shareholder, the Bulgari family, in a cash-and-share swap, and launched a bid for the remaining shares for a total value of more than 6 billion dollar. The deal doubled the size of LVMH’s watch and jewellery division, and made the Bulgari family the secondlargest family shareholders in LVMH – with a 3,3 % stake – after chairman and chief executive officer Bernard Arnault himself.

478

2) TIMBERLAND RAISES VF’S PERFORMANCE PROFILE After flirting for more than 30 years, VF Corp. finally in June inked a 2,3 billion dollar cash deal to acquire Timberland Co., transforming VF into a 10 billion dollar giant.

During the first full year after the deal, half of VF’s business will be in the outdoor and action sports arena, which could rise to 60 % of the business by 2015. That will help VF trade more like a performance apparel firm. Timberland’s president and CEO, Jeffrey Swartz, whose family controlled 73,5 % of the voting power of Timberland’s stock, stepped down from his posts after completion of the deal in September.

3) JACK WOLFSKIN HAS A NEW PRIVATE EQUITY OWNER Private equity firm The Blackstone Group in July forked over 995 million dollar to acquire German outdoor gear and apparel chain Jack Wolfskin. Blackstone acquired the firm from Barclays Private Equity and Quadriga Capital. New York-based Blackstone is the retail chain’s third private equity owner in ten years. The retailer has more than 400 franchised stores in Europe and Asia, half of which are in Germany. Barclays and Quadriga acquired the chain from Bain Capital in 2005.

4) JIMMY CHOO FLIPS AGAIN Labelux Group, a division of the private, family-owned Joh. A. Benckiser SE, owner of perfume maker Coty Inc., became the latest owner of Jimmy Choo in May. Labelux, whose other brands include Bally and Derek Lam, beat competitors including TPG Capital and The Jones Group Inc. in a deal, sources say, valued Choo at 889,4 million dollar. Reinhard Mieck, CEO of Labelux, said: „We see ourselves as long-term strategic investors,“ adding that the brand has lots of unfulfilled potential in Asia. Chief creative officer Tamara Mellon and CEO Joshua Schulman revealed plans in November to depart; Mellon has already exited while Schulman will leave early this year. The sale to Labelux comes ten years after private equity owners Equinox first purchased Choo, valuing the company at 32,4 million dollar.

5) NO IPO FOR MONCLER – HELLO EURAZEO INSTEAD Moncler SpA in June pulled the plug on its planned initial public offering on the Milan Stock Exchange, electing instead to sell a 45 % stake to Paris-based investment company Eurazeo for 611,5 million dollar. Remo Ruffini, Moncler’s chairman and creative director, and The Carlyle Group continue to hold minority stakes in Moncler. One week before the deal was inked, Moncler got the green light to proceed with the IPO, and a 1,87 billion dollar valuation was put on the company. Selling the stake was deemed a better way to grow the brand, and an IPO down the road could still be a possibility as an exit strategy. Ruffini in October took on the additional role of CEO following Alberto Lavia’s exit from the firm.

locationgroup research | Retail Market Study 2012

6) PPR GOES MASS WITH VOLCOM PPR in May revealed a friendly 607,5 million dollar takeover bid for Californian action sports brand Volcom Inc. It is a move by luxury mogul François-Henri Pinault to build a mass market division around Puma that could eventually eclipse its luxury holdings, such as Gucci. Richard Woolcott, Volcom’s chairman and chief executive officer, remains on the Volcom board and is running the firm as part of PPR’s sport and lifestyle group.

7) JONES COUNTS ON GEIGER Private equity firm Graphite Capital sold British footwear brand and retailer Kurt Geiger in June to The Jones Group Inc. for 350 million dollar in cash, inclusive of debt. The acquisition is a winwin situation. Its new parent gives Geiger entrée to the US, while the transaction gives Jones a platform into Europe and bolsters its footwear operations, which already include Nine West. Geiger CEO Neil Clifford pockets a small fortune and remains at the helm of the company.

8) POLA’S NEW BABY Japan’s Pola Orbis Holdings purchased Australian skin care firm Jurlique International Pty. Ltd. for 300 million dollar. The transaction is expected to close in early 2012. The purchase price includes the repayment of some of Jurlique’s debts. The marriage is expected to utilise Pola’s research and development capabilities with Jurlique’s natural ingredients product lineup.

11) PARLUX IS PERFUMANIA’S US$170 MILLION BABY Perfumania Holdings Inc. revealed in December that it will acquire Parlux Fragrances Inc. for 170 million dollar. Parlux is already one of the discount beauty retailer’s biggest suppliers. The two had been in merger discussions since August, and the boards of both firms have approved the transaction, which is expected to close in the first half of 2012. Parlux, meanwhile, has until midJanuary to solicit other interested parties, while Perfumania has the right to match a superior offer, according to the terms of the merger agreement.

12) BELSTAFF’S NEW SWISS TIES Outerwear specialist Belstaff was acquired by Labelux Group in a 161 million dollar cash-and-debt deal one month after the Swiss luxury goods firm acquired Jimmy Choo. Belstaff’s former owner, the Malenotti family-owned Clothing Company, once considered an IPO, but that idea became a nonstarter in 2008 when the global recession hit and consumer spending dwindled. Labelux has help from two high-profile American executives: Harry Slatkin and Tommy Hilfiger. The two are also investors in the English outerwear label. Slatkin is now Belstaff’s CEO, and Hilfiger serves as business consultant and a member of Belstaff’s advisory team and board.

9) LIZ CLAIBORNE BRAND SOLD The Liz Claiborne brand was sold to J.C. Penney Co. Inc. for 288 million dollar in October, a move that now has former parent Liz Claiborne Inc. pondering what its new corporate name should be. The sale was the latest in a series of moves by the parent firm to allow it to focus on three key businesses: Kate Spade, Juicy Couture and Lucky Brand. J.C. Penney had been expected to buy the brand after becoming the exclusive licencee in August 2010.

10) ALLSAINTS DAY Beleaguered AllSaints was rescued by Lion Capital and Goode Partners in May. Both private equity firms injected 173,3 million dollar into AllSaints at the time of the sale. Lion has a 65 % stake, Goode an 11 % one, and top management a combined 24 %. AllSaints ran into trouble after a rapid-fire retail rollout and the nationalisation of its Icelandic investor Kaupthing bank. AllSaints would have fallen into administration, the U.K. equivalent of Chapter 11, had it not found an investor in time. The brand’s CEO, Stephen Craig, abruptly left the company in late September after clashing with chairman Kevin Stanford.

locationgroup research | Retail Market Study 2012

479

Price and wages

Oslo, Zürich and Geneva maintain high prices Oslo, Zürich and Geneva remain the most expensive cities in our survey, and remain so even after excluding rent.

World currencies strengthen against US dollar Sydney continues its storm to the top of our rankings, now holding 7th place. To some extent this development can be explained by the Australian dollar’s continued appreciation against both the US dollar (19%) and the euro (5%). However, Sydney is just one of many cities that have seen a jump in their rankings. This is in contrast to the American cities we surveyed which now hold much lower positions. The most expensive American city is New York, occupying rank 14. Typically, New York was featured in the top ten in the past. This can be attributed to the general de-

480

preciation of the US dollar versus the world’s other currencies. On average, our surveyed cities’currencies appreciated by 9% against the US dollar, with those who did so considerably being: the Swedish krona (21%), the Swiss franc (20%) and the Hungarian forint (19%). This has caused a pronounced fall in US cities’ rankings.

Major inflation in Venezuela continues As mentioned in last year’s Prices and Earnings update, Venezuela’s capital Caracas was and still is suffering from high inflation. Since our survey was conducted two years ago, Venezuela has seen an inflation rate of 62%. This together with its pegged currency lifted its position in the price rankings. Should Venezuela devalue its currency again, it would result in a downward shift.

locationgroup research | Retail Market Study 2012

PRICE LEVELS 2011

City1

New York = 100

excl. Rent

incl. Rent

139.1

108.9

Athens

80.1

60.1

Lisbon

79.9

62.4

Oslo Zurich

135.0

105.5

Geneva

133.1

106.5

Nicosia

79.7

62.1

78.8

69.2

Copenhagen

118.4

89.4

Miami

Stockholm

117.5

88.5

Moscow

76.5

69.4

73.9

55.0

Tokyo

112.6

94.2

Johannesburg

Sydney

107.7

89.1

Taipei

73.2

57.3

72.4

50.5

Helsinki

103.5

81.5

Bangkok

Toronto

102.8

82.1

Warsaw

71.7

54.5

71.3

60.0

Singapore

102.4

88.3

Caracas

Vienna

102.0

75.2

Budapest

70.9

54.5

69.6

53.1

Paris

100.9

82.8

Shanghai

Luxembourg

100.1

77.1

Ljubljana

69.3

51.9

68.9

53.8

New York London

100.0

100.0

Jakarta

99.8

82.5

Prague

68.4

51.9

65.3

46.1

Munich

99.7

75.0

Riga

Montreal

99.4

77.6

Bratislava

64.9

49.9

64.3

59.2

Frankfurt

98.0

76.3

Doha

Sรฃo Paulo

96.5

74.5

Tallinn

63.8

45.9

63.7

49.2

Dublin

95.7

78.8

Bogotรก

Brussels

93.3

74.5

Beijing

62.3

46.2

61.9

45.7

Rome

92.8

74.4

Santiago de Chile

Lyon

92.2

67.2

Vilnius

60.9

44.8

59.9

44.3

Auckland

91.7

73.0

Kiev

Barcelona

90.9

71.1

Manama

59.5

48.7

58.9

44.1

Rio de Janeiro

90.9

68.4

Sofia

Dubai

89.7

82.7

Mexico City

58.6

44.3

56.8

40.0

Istanbul

89.5

71.0

Lima

Amsterdam

88.2

68.4

Bucharest

56.0

43.4

52.9

36.5

Madrid

88.1

68.7

Kuala Lumpur

Los Angeles

88.1

72.7

Buenos Aires

52.4

38.5

50.5

35.6

Tel Aviv

87.6

66.5

Cairo

Berlin

87.5

64.6

Nairobi

50.4

38.5

49.0

36.6

Milan

84.5

68.9

Delhi

Seoul

84.5

68.4

Manila

45.3

33.1

Mumbai

40.2

32.5

Chicago

82.3

72.3

Hong Kong

82.3

76.5

Methodology The cost of a weighted Shopping basket of goods geared to western European consumer habits, containing 122 goods and services.

1 Ranking relative to the index (price level excluding rent)

locationgroup research | Retail Market Study 2012

481

Switzerland increases wage level gap Switzerland still pays out the most, with Zürich and Geneva leading the rankings for gross wages. Although Copenhagen is still in the top three of our rankings, it used to be number one in 2009.

The difference cannot be explained with inflation alone. In the two years since our most recent survey in 2009, Switzerland experienced growth in its gross domestic product, whereas Denmark’s GDP remained roughly flat, offsetting the higher inflation in Denmark. Since Denmark’s krone is held within a limited range against the euro, the Swiss franc’s continued appreciation versus the Eurozone currency has aided and in fact mostly explains the change in order between Copenhagen and the Swiss cities. Brussels and Helsinki both benefited from the appreciation of the euro against the US dollar, as they saw their wage rankings rise by three and five places respectively over the last year in our evaluation. On the other hand Mumbai, Manila and Nairobi pick up the rear, while the gap between the highest (Zurich) and lowest (Mumbai) gross wage levels increased by 0.4% since last year.

Highest GDP increase: Emerging markets The highest gross domestic product growth over the two-year time span since the full survey occurred in China and Qatar, highlighting the importance of emerging markets as growth motors of the global economy as well as the oil price boomsince last year.

482

Who can afford the most?

Comparing domestic prices for a universal basket of goods against the corresponding domestic wage level allows us to examine the difference in relative purchasing power. Therefore people working in Zurich, who lead our index, can afford the most domestically in relation to the other cities we surveyed.

Luxembourg rejoins top three After conceding its top three ranking last year, Luxembourg retakes its standing of 3rd place in the domestic purchasing power index which it held in our original survey back in 2009. To put this in perspective, Luxembourg holds the eighth position and 13th position in the wage and price rankings respectively. This underlines the fact that a high or low wage level does not necessarily mean a higher or lower purchasing power. It also depends on how expensive the basket of goods and services in the respective city is.

Emerging markets’ long way to the top Although emerging markets exhibit high to very high economic growth rates, most of them cluster in the lower part of the rankings. This means that the countries with the highest growth rates may move up in the rankings, but will require a long time to leave the emerging market cluster. Examples are Shanghai and Doha, which on the back of high growth rates moved up by one and three places respectively, but still find themselves in the emerging market cluster.

locationgroup research | Retail Market Study 2012

WAGE LEVELS 2011

New York = 100

Seoul

42.5

45.2

Dubai

41.5

57.3

City

gross

net

Zürich

144.1

149.1

Sâo Paulo

39.0

45.2

39.0

40.5

1

Geneva

138.8

133.8

Johannes-bourg

Copenhagen

134.8

100.4

Taipei

37.4

44.9

36.0

42.2

Oslo

116.9

104.8

Moscow

Sydney

111.3

117.9

Singapore

35.8

41.7

Hong Kong

35.2

44.3

Stockholm

101.9

97.2

New York

100.0

100.0

Rio De Janeiro

34.2

36.3

29.0

31.4

Luxembourg

95.5

107.8

Prague

Munich

94.5

83.2

Tallinn

28.1

31.0

28.0

27.8

Los Angeles

91.3

92.3

Warsaw

Frankfurt

90.6

82.5

Istanbul

27.9

28.9

25.8

34.2

Brussels

90.2

82.1

Manama

Helsinki

87.4

89.5

Budapest

23.6

20.4

22.7

25.1

Toronto

85.4

88.4

Bratislava

Montreal

84.2

88.5

Vilnius

21.9

21.0

21.7

30.0

Dublin

83.0

97.3

Doha

Amsterdam

82.7

74.2

Bogotà

21.1

24.7

20.6

21.6

Berlin

81.3

77.8

Riga

Tokyo

80.8

90.6

Santiago de Chile

18.6

21.0

18.4

18.5

Chigago

80.6

79.3

Bucharest

Miami

80.0

82.7

Kuala Lumpur

18.1

21.0

17.8

19.2

London

79.6

84.7

Shanghai

Vienna

77.9

79.9

Lima

17.8

19.5

16.7

19.1

Paris

73.6

75.1

Buenos Aires

Lyon

72.6

75.7

Caracas

15.1

19.0

14.7

16.3

Milan

66.7

63.6

Beijing

Nicosia

60.7

74.7

Sofia

14.5

15.0

13.7

17.9

Auckland

58.8

64.3

Bangkok

Madrid

58.3

66.6

Kiew

12.2

13.7

11.6

12.6

Barcelona

58.1

65.1

Cairo

Rom

52.8

49.8

Mexico City

9.8

12.0

9.5

11.4

Lisbon

47.7

52.0

Delhi

Athens

46.9

48.0

Jakarta

8.7

10.5

8.4

9.2

Tel Aviv

46.8

53.6

Nairobi

Ljubliana

45.4

37.7

Manila

7.4

8.7

Mubai

6.9

8.4

Methodology Calculation is based on the wage, social insurance contribution and working hours data for 14 occupations worldwide to arrive at a net wage level after taxes and payroll deductions. To calculate the wage index, we looked at exchange rates and inflation, factoring in that productivity gains account for a portion of economic growth, which are passed on to employees in the form of real wage increases (GDP growth weighted by a factor of 0.5).

1 Ranking relative to the index on a gross basis

locationgroup research | Retail Market Study 2012

483

Shopping center development: an uncertain pipeline .

The European pipeline

As of 1st July, the European completion total for 2011 was estimated at nearly 6,8 million sqm, with 4,6 million sqm of GLA due in the second half of the year. The 2012 pipeline was estimated at 5,8 million sqm.

10 Western Europe

CEE and Türkei

Several major new shopping centres have been completed in the ensuing months. Westfield Stratford City opened on 13 September, increasing provision in London by 9 %. In Russia, Leto in St Petersburg and Rodnik in Chelyabinsk opened their doors (the latter increasing provision in Chelyabinsk by 25 %); MEGA Ufa and MEGA Samaraare now partially open. In Hungary, the opening of KÖKI Terminal boosted provision in Budapest by 8 %. In Romania, the opening of Maritimo Shopping Centre has increased supply in Constanta by more than 40 %. In Poland, the newly-opened Millenium Hall is now the largest shopping centre in the Podkarpackie region.

6

4

2

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

0 1990

Million sqm

8

Openings scheduled for November 2011 include M5 Mall in Ryazan, Russia (66,490 sqm), Ora Shopping in Istanbul (65,176 sqm), And Parc in Craiova, Romania (54,840 sqm).

Recent openings Country

City or town

Scheme Name

GLA (sqm)

England

London

Stratford City

Russia

St. Petersburg

Leto

176,500 77,695

Turkey

Istanbul

Akbati

63,500

Russia

Chelyabinsk

Rodnik

58,000

Hungary

Budapest

Köki Terminal

55,000

Poland

Rzeszów

Millenium Hall

52,000

Romania

Constanta

Maritim Shopping Centre

48,130

Turkey

Ankara

Atlantis

43,000

Hungary

Szeged

Ărkăd Szeged

41,000

Poland

Kielce

GaJeria Echo (extension)

40,000

Alongside this flurry of recent completions, delays have recently been reported in several markets however, and this year’s European total is likely to fall short of projections. In Russia, several projects have been postponed from the 4th quarter 2011 to 2012, the largest being Oz Krasnodar, which is now due next February. In Turkey, NeoCity in Istanbul (65,000 sqm) has been pushed back to the 4th quarter 2012 and there is some uncertainty about completion dates for a few other projects. In Italy, Conca d’Oro (55,000 sqm) in Palermo has recently been pushed back to March 2012, following delays to several other schemes earlier this year.

Source: Cushman & Wakefield, RCA, KTI and Property Data

484

locationgroup research | Retail Market Study 2012

Major Schemes in the pipeline

There is also some uncertainty about the pipeline for the coming years, although several countries may see an increase in completions in 2013 and beyond. In Poland, there is some ambiguity about start dates due to selective demand for new space and the difficulty of obtaining financing. In Portugal, many projects are still at the early stages of development and are unlikely to go ahead any time soon.

Country

City or town Scheme name

GLA (sqm)

Year

Russia

Krasnodar

Spain

Zaragoza

OZ Mall

163,000

2012

Puerto Venecia

123,475

2012

Russia Russia

Ufa

MEGA Ufa

114,700

2011

Samara

M^GA Samara

102,000

2011

Turkey

Istanbul

Marmara Park

100,000

2012

In Spain, the 2012 pipeline still stands at more than 400,000 sqm, with several major schemes under construction; however, most of these have suffered setbacks in recent years and will be delivered later than originally planned. In France, development activity is expected to remain focused on the extension and refurbishment of existing schemes. In the UK, completions will reach a historic low in 2012, but should pick up again in 2013, with a handful of schemes in the pipeline. In Germany, 2012 will see the lowest completion total since 1989; however, development activity may pick up if current demand levels are sustained.

Slovenia

Ljubljana

Sportni Park Stozice

96,319

2012

Italy

Villesse

Villesse Shopping

90,000

2012

Kroatia

Zagreb

Supernova Zagreb

80,000

2012

Russia

Nizhniy Novgorod

Nebo

75,000

2012

England

Leeds

Trinity Leeds

76,000

2013

Ukraine

Kiev

Ocean Plaza

72,188

2012

Retail Property Investment: A Sector Very Much in Favour Retail investment markets had a busy third quarter with EUR 9,1 bn traded 7,7 % up on quarter 2. Activity over the first nine months of the year totalled EUR 29,7 bn, 9.8% higher than the same period of 2010, a market share of 34,3 % versus 33 % in 2010. Nonetheless, a shortage of finance for large lots such as shopping centres has held the sector back and after slipping behind retail in the opening quarter, offices have since regained top spot, with a 42 % market share.

Property investment by quarter 45

Retail

40

Offices

35

Quartaly volumes

30 25 20 15 10 5

2011 Q3

2011 Q1

2010 Q3

2010 Q1

2009 Q3

2009 Q1

2008 Q3

2008 Q1

2007 Q3

2007 Q1

2006 Q3

2006 Q1

0

Source: Cushman & Wakefield, RCA, KTI and Property Data

locationgroup research | Retail Market Study 2012

485

Top retail investment targets

Demand for retail is good across the region despite the concerns faced by consumers in many areas. Investors are focusing on stronge areas of demand in the new age of retailing, on shopping centres that can be actively managed and improved and on onvenience property that is at least somewhat protected from economic downturns. With a selective increase in supply a further improvement in activity isorecast, with volumes to hit EUR 41,7 bn this year, 7,5 % up on 2010, and increasing 10-15 % further in 2012.

EUR 4,0

2010

2011 - Q1/3

3,5

3,0

Euro bn p.a.

2,5

2,0

1,5

1,0

0,5

€ 0.0

England

Germany

East

North

Center

South

France

West

Risk, or rather risk avoidance, is key to determining where investors will go and not just in deciding what markets they target, but also how quickly they will act and how they will finance a deal. The UK and Germany dominate activity – accounting for 57 % of retail trading in the opening three quarters – and are more evenly matched than usual, with Germany in fact taking the top spot in the last two quarters. A range of other markets are attracting strong interest however. Denmark, Italy, the Czech Republic and Poland are all set to outperform their 2010 volumes for example and clearly there is a wide range of factors driving investors into these quite different markets – with opportunity a key issue.

Retail makes up a much higher than average share of activity in CEE and also in Southern Europe. Over the past year the rise of Eastern Europe is particularly impressive – ranging from areas where themarket is restarting after the credit crunch such as Bulgaria and Croatia – to the runaway growth story, Russia, which has seen Over €2bn traded so far this year, the highest retail total yet recorded in this market.

Retail yields across europe 8,0 %

Shopping center

Shop units

Shopping centres are the dominant sector of demand but interest in shop property has also increased; particularly in the top high streets which have coped relatively well through the economic downturn. Retail warehouse demand has been slower to stir but is now coming back for modern well-located parks and interest in other formats – notably Designer Outlets – is also up.

7,5%

Retail warehouses 7,0 %

6,5 %

6,0 %

5,5 %

5,0 %

4,5 %

4,0 % Sep-06 Mar-07 Sep-07

Mar-08

Sep-08

Mar-09

Sep-09

Mar-10

Sep-10

Mar-11

Sep-11

Yields have stabilised over the past few months meanwhile and are around 10-20 basis points down on the year, a somewhat lesser degree of compression than expected. Indeed, while some areas continue to see yields edge lower – the Czech Republic, France, Germany. Norway Poland and Turkey in the third quarter for example – others are seeing yields flat-line or increase, such as Denmark, Ireland, Portugal and Greece in Q3.

Source: Cushman & Wakefield, RCA, KTI and Property Data

486

locationgroup research | Retail Market Study 2012

Most Expensive Retail Locations Worldwide 2011 Rank 1

Country

City

Location

Rent/sqm/Year

Rent/sqm/Year

CHF

EUR

United States

New York

5th Avenue

19,882

16,432

2

China

Hong Kong

Causeway Bay, Central

14,312

11,636

3

Switzerland

Zurich

Bahnhofstrasse

12,500

11,412

4

United States

New York

East 57th Street

10,958

8,909

5

United Kingdom

London

New Bond Street

9,603

7,808

6

Australia

Sydney

Pitt Street Mall

8,778

7,137

7

Japan

Tokyo

Omotesando

8,770

7,130

8

France

Paris

Avenue des Champs-Élysées

8,632

7,018

9

Russia

Moscow

Stoleshinkov Lane

8,628

7,015

10

United Kingdom

London

Old Bond Street

8,103

6,588

11

Switzerland

Geneva

Rue de Rhone

8,100

6,694

12

Italy

Milan

Via Monte Napoleone

7,783

6,327

13

Japan

Tokyo

Ginza-Chuo Avenue

7,636

6,208

14

France

Paris

Avenue Montaigne

7,557

6,144

15

Italy

Milan

Piazza San Lorenzo

7,257

5,900

16

United States

New York, NY

Madison Avenue

7,195

5,849

17

France

Paris

Rue du Faubourg St Honoré

6,942

5,644

18

Italy

Rome

Via Condotti

6,936

5,639

19

France

Paris

Rue St Honoré

6,765

5,500

20

United Kingdom

London

Oxford Street

6,724

5,466

21

South Korea

Seoul

Myeongdong

5,798

4,714

22

Italy

Milan

Corso Vittorio Emanuele

5,720

4,650

23

Japan

Tokyo

Shibuya

5,720

4,650

24

Italy

Milan

Galleria Vittorio Emanuele

5,658

4,600

25

France

Cannes

La Croisette

5,434

4,418

26

Italy

Milan

Via della Spiga

5,289

4,300

27

France

Paris

Avenue George V

5,289

4,300

28

Germany

Munich

Kaufingerstrasse

4,874

3,963

29

South Korea

Seoul

Gangnam Station

4,862

3,953

30

Brazil

São Paulo

Iguatemi Shopping

4,849

3,942

31

United Kingdom

London

Regent Street

4,838

3,933

32

Russia

Moscow

Tverskaya Street

4,726

3,842

33

Australia

Melbourne

Bourke Street Mall

4,601

3,741

34

France

Paris

Boulevard St Germain

4,498

3,657

35

United Kingdom

London

Covent Garden

4,486

3,647

36

Austria

Vienna

Kohlmarkt

4,373

3,556

37

United Kingdom

London

Sloane Street

4,305

3,500

38

United Kingdom

London

Brompton Road

4,299

3,495

39

Germany

Stuttgart

Königstrasse

4,284

3,483

40

United States

Los Angeles, CA

Rodeo Drive

4,280

3,480

41

Saudi Arabia

Riyadh

King Fahad Road / Olaya Road

4,202

3,416

42

France

Paris

Boulevard Haussmann

4,166

3,387

43

Austria

Vienna

Graben, Kohlmarkt, Kärntner Strasse

4,029

3,276

44

Germany

Frankfurt

Zeil

3,988

3,242

locationgroup research | Retail Market Study 2012

487

488

45

Russia

Moscow

Petrovka Street

3,887

3,160

46

Australia

Brisbane

Queen Street Mall

3,844

3,125

47

Germany

Hamburg

Mönckebergstraße

3,838

3,120

48

Germany

Cologne

Schildergasse

3,838

3,120

49

Spain

Barcelona

Portal de l‘Angel

3,838

3,120

50

Ireland

Dublin

Grafton Street

3,837

3,120

51

Germany

Berlin

Alexanderplatz

3,738

3,039

52

Germany

München

Maximilianstraße

3,690

3,000

53

Italy

Florence

Via Calzaiuoli

3,690

3,000

54

Italy

Rome

Via Cola di Rienzo

3,690

3,000

55

Brazil

São Paulo

Cidade Jardim

3,673

2,986

56

Germany

Berlin

Tauentzienstrasse

3,642

2,961

57

Germany

Düsseldorf

Königsallee

3,618

2,941

58

Germany

Hamburg

Spitalerstrasse

3,547

2,884

59

United States

San Francisco, CA

Union Square – Post Street

3,538

2,877

60

China

Beijing

Wangfujing

3,465

2,817

61

Russia

Moscow

Kuznetzsky Most

3,456

2,810

62

Singapore

Singapore

Orchard Road

3,416

2,778

63

Russia

Moscow

Stoleshnikov

3,394

2,759

64

Italy

Rome

Via del Corso

3,260

2,650

65

United States

Chicago, IL

North Michigan Avenue

3,230

2,626

66

United States

San Francisco

Post Street

3,196

2,598

67

China

Shanghai

East Nanjing Road

3,173

2,580

68

Germany

Hamburg

Neuer Wall

3,173

2,580

69

Spain

Madrid

Serrano

3,173

2,580

70

France

Paris

Rue de Rivoli

3,170

2,577

71

China

Shanghai

Nanjing Road West

3,064

2,491

72

Russia

Moscow

Kutuzovsky Prospect

3,026

2,460

73

Switzerland

Bern

Marktgasse/Spitalgasse

3,022

2,457

74

Israel

Tel Aviv

Ramat Aviv

2,993

2,433

75

Denmark

Copenhagen

Østergade (Strøget)

2,972

2,417

76

Australia

Perth

CBD

2,952

2,400

77

Denmark

Copenhagen

Strøget

2,936

2,387

78

Netherlands

Amsterdam

Kalverstraat

2,922

2,375

79

Switzerland

Basle

Freiestrasse

2,921

2,375

80

China

Shanghai

Xujiahui

2,905

2,362

81

China

Shanghai

West Nanjing Rd

2,875

2,338

82

Canada

Toronto, ON

Bloor Street

2,861

2,326

83

Spain

Madrid

Preciados

2,859

2,325

84

Ukraine

Kyiv

Vulitsya Khreshchatyk

2,853

2,319

85

Germany

Frankfurt

Goethestraße

2,847

2,315

86

Austria

Vienna

Getreidegasse

2,841

2,310

87

China

Beijing

Xidan

2,835

2,305

88

United States

Honolulu, HI

Kalakaua Avenue

2,820

2,293

89

Germany

Berlin

Kurfürstendamm

2,804

2,280

locationgroup research | Retail Market Study 2012

90

Spain

Madrid

Calle Serrano

2,804

2,280

91

Spain

Barcelona

Paseo de Gracia

2,801

2,278

92

Russia

Moscow

Tverskaya-Yamskaya Street

2,797

2,274

93

India

Delhi

Khan Market

2,776

2,257

94

Greece

Athens

Ermou Street

2,769

2,252

95

New Zealand

Auckland

CBD

2,758

2,242

96

Australia

Perth

Hay St. and Murray St. Malls

2,754

2,239

97

United States

Chicago

East Oak Street

2,739

2,227

98

Czech Republic

Prague

Na Prikope/Wenceslas Square

2,733

2,222

99

Spain

Madrid

Goya

2,657

2,160

Australia

Adelaide

Rundle Mall

2,633

2,141

100

locationgroup research | Retail Market Study 2012

489

Shopping center and streets .

Algeria, Algiers, Bab Ezzouar Shopping Center, Dely Ibrahim, Argentina, Buenos Aires, Alto Rosario Shopping Center, Av. Libertador, Avenida Alvear, Buenos Aires Airport, Falabella Department Store, Galerias Pacifico, Palermo Soho, Petit Palais, Recoleta, Santa Fe Avenue, Australia, Melbourne, Bourke Street, Bourke Street Mall, Braybrook Suburb Of Melbourne, Chadstone Shopping Centre, Collins Street, David Jones Melbourne, Jam Factory Shopping Centre, Melbourne Central Shopping Centre, Qv‘S Albert Coates Lane, South Melbourne, Williams Landing Town Centre, Sydney, Chatswood‘S Mandarin Centre, George Street, Marsden Park, Parramatta Road,Pitt Street Mall, Queen Victoria Building, Strand Arcade Mall, Sydney Airport, Westfield Penrith, Westfield Sydney Shopping Centre, Austria, Graz, City Park Graz, Graz, Flughafen Graz, Graz Murpark, Jakomi Plaza, Ses Murpark, Weinzöttlstrasse, Innsbruck, Herzog-Friedrich-Strasse, Kaufhaus Tyrol, Maria-Theresien-Strasse, Innsbruck, Sillpark, Kitzbühel, Bichlstrasse,Hahnenkammstraße, Josef-Heroldstrasse, Malinggasse, Ober Sport Building, Linz, Arkade Taubenmarkt, Atrium, Haid Center - Ikea, Ikea Center, Landstrasse, Linz IndustriezeileSalzburg, Eberhard-Fugger-Straße, Europark Klessheim, Getreidegasse, Muezgasse, Judengasse, Kaigasse, Linzer Gasse, Münzgasse, Sca Alpenstrasse, Sigmund-Haffner-Gasse, Vienna, Alserbachstraße, Bahnhofcity Wien West, Donauzentrum, Freisingergasse, Graben, Herrengasse, Kärntnerstrasse, Kohlmarkt, Mariahilfer Strasse, Park Hyatt Vienna Hotel, Seilergasse, St. Marx, Stilwerk Wien, Tuchlauben, Weltstadthaus, Wipplingerstraße, Bahrain, Manama, Bahrain City Centre, Belgium Antwerpen, Boomsesteenweg, Herentalsebaan, Huidevettersstraat, Leysstraat, Lombardenvest, Meir, Shopping Center Den Tir, Shuttershofstraat, Wijnegem Shopping Center, Brussels, Av. De La Toison D‘Or, Avenue Louise, Boulevard De Waterloo, Brussels Airport, Brussels Central Station, Chaussee De Louvain, Chaussée De Mons, Chaussée D‘Ixelles, City2 Shopping Mall, Joseph Stevensstraats, Marnixlaan, Place Stéphanie, Rue Neuve, Varkensmarkt, Westland Shopping Center, Woluwe Shopping Center, Knokke, Place Matuvu, Brazil, Rio De Janeiro, Ipanema, Jacarepaguá District, Jardim Guadalupe Shopping, Plaza Niterói, Shopping Cidade Copacabana, West Shopping Rio, Sao Paulo, Iguatemi Jk Shopping Centre, International Airport, Oscar Freire, Rio De Janeiro, Shopping Center Cidade Jardim, Shopping Morumbi, Bulgaria, Sofia, Hermès Park, N‘Hood Iztok, Atanas Dalchev St 2, Qtr Druzhba, Serdika Center, Street „Ring Road“, The Mall Of Sofia, Canada, Montreal, Golden Square Mile, Promenades Saint-Bruno, Rue Sainte-Catherine Ouest, Toronto, Bloor Street West, Queen Street West, Sheppard Avenue, Shinjuku Mitsukoshi Alcott Bldg, St.Thomas Street, Yorkdale Shopping Centre, Yorkville Avenue, Vancouver, 41St, Burrard Street, Cambie (Oakridge Center), Douglas Street, Granvillle Street, Kingsway, Robson Street, Vancouver International Airport, Chile, Santiago, Alonso De Córdova, Apumanque Mall, Arauco Maipú Mall, Avda Manquehue Norte, Calle Doctor Teixeiro, Centro Plaza Internacional, Costanera Center, Hotel Marriott, Huerfanos Street, Isidora Goyenechea, Las Condes Mall, Parque Arauco Mall, Paseo Los Trapenses, Plaza Arauco China, Beijing, Beijing Capital International Airport Terminal 3, China World Shopping Mall, Financial Street Mall, Sanlitun Road,, Sanlitun Village, Seasons Place Shopping Mall, Shin Kong Place Mall, Sparkle Roll Plaza, Chengdu, Chengdu Mixc City, Chengdu’SLesen, Department Store, Huayang District, Maison Mode Department Store, Raffles Square, Uno Mall, Chongqing, Chongqing Times Square, Chongqing Riyueguang Central Plaza, Jiefangbei Square, Star Plaza, Guangzhou, Guangzhou International Finance Center, La Perle Shopping Mall, Pacific Mall, Taikoo Hui Mall, Hong Kong, Canton Road, Elements Mall, Harbour City, Hong Kong’S Landmark Mall, Hysan Place, Ifc Mall, Jardine’S Bazaa, Lee Gardens Two, Lht Tower, Pacific Place, Pedder Street, Queen Street Road, Soundwill Plaza, Tat Chee Avenue, The Sun Arcade, Shanghai, Bailian Shimao International Plaza, Beicai Town, Grand Gateway Mall, House Of Roosevelt, IFC Shopping Mall, Jiu Guang Department Store, Joy City Shopping Center, Nanjing Road East, Nanjing Road West, Orient Shopping Center, Parkside, Pudong New AreaPeninsula Shanghai Hotel, Raffles Center, Shopping Center Citic Square, Shopping Center Times Square, Shunheng International Commercial Plaza, Shenyang, Avenue Shopping Center, Beijing Street, L’Avenue Shopping Center, Palace 66, Zhongjie Lu, Shenyang, Charter Shopping Centre, Zhuo Shopping Mall, Taiyuan, Kaihuasi Street, Tianjin, Hisense Plaza, Colombia, Bogota, Avenida Calle, Avenida Pepe Sierra, Calle 81, Carrera 12, Centro Comercial Andino, Cra 14, El Retiro Shopping Mall, Santa Fe Mall, T Zone, Unicentro, Newbury Street, Croatia, Zagreb, Arena Shopping Center, Avenue Ilica, City Center One, Cvjetni Mall, Kaptol Shopping Centre, Portanova Shopping Center, RugvicaCzech Republic, Prague, Eden Shopping CentreCzech Republic, Prague, Galerie Harfa Shopping Mall, Czech Republic, Prague, Metropole Zlicin, Na Prikope, Navratilova, Palac Flora, Palladium, Parizska, Ruzyne International Airport, Shopping Center Chodov, Wenceslas Square, Denmark, Copenhagen, Amagertorv, Copenhagen Airport, Frederiksberggade, Gammel Mønt, Gothersgade, Grønnegade, Hauser Plads, Hyskenstræde, Illum Department Store, Købmagergade, Kompagnistræde, Krystalgade, Norregade, Ny Østergade, Østergade, Egypt, Cairo, City Stars mall, Dandy Mega Mall, El Salam City, Mall of Arabia Cairo, Sheikh Zayed City, Designopolis SC, Findland, Helsinki, Aleksanterinkatu, Helsinki Airport, Helsinki Vantaa Airporti, Kämp Galleria Shopping Centre, Kluuvi Shopping Center, Uudenmaankatu, Verkkokauppa.Com Megastore, France, Cannes, Boulevard De La Croisette, Rue D’Antibes, Rue Des Etats Unis, Rue Des Frères Casanova, Rue Des Serbes, Rue Hoche, Rue Macé, Lyon, Ecully / Vénissieux, La Part-Dieu Sc, Rive Gauche, Laochelle, Rue August Comte, Rue D‘Algérie, Rue De Brest, Rue De La République, Rue De L‘Ancienne Préfecture, Rue Emile Zola, Rue Jean De Tournes, Rue Paul Chevanard, Rue President Edouard Herriot, Marseille, Belzunce Bourse Shopping Center, Cours Julien À Marseille, Grand Coastal Mall, Place De Rome, Rue De La République, Rue François Scaramelli, Rue Grignan, Rue Lulli, Rue Montgrand, Rue Saint Ferreol, Shopping Center My Place, Nice, Avenue De La République, Avenue De Verdun, Cap 3000 Commercial Center, Galeries Lafayette, Rue De La Liberté, Rue Masséna, Rue Paradis, Paris, Av. De L‘Opéra, Avenue Des Champs-Elysées, Avenue George Avenue, Avenue Victor Hugo, Bd. Saint-GermainBoulevard des Capucines, Centre Commercial Bercy, Centre Commercial La Vache Noire, Centre Commercial Zone Grand Plaisir, Francois 1Er Street, Place Vendôme, Rua De Passy, Rue Auber, Rue Castiglione, Rue De Grenelle, Rue De Passy, Rue De Rivoli, Rue Des Blancs Manteaux, Rue Des Francs-Bourgeois, Rue Des Petits Champs, Rue Du Faubourg Saint Honoré, Rue Du Faubourg Saint-Antoine, Rue Froissart, Rue Jeans-Jacques Rousseau, Rue Saint Sulpice,Rue Des Francs-Bourgeois, Rue Royale, Saint Honore Street, Velizy, St. Tropez, Avenue Foch, Boulevard Vasserot, Géant La Foux, Hotel Muse, Route Des Marres, Place De La Croix De Fer, Place De La Garonne, Rue De La Poste, Rue Du Général Allard, Rue François Sibilli, Rue La Ponche, Traverse De Marbrierrs, Germany, Berlin, Alexanderplatz, Alte Schönhauser Straße, Brunnenstraße, Building Arena, Friedrichstraße, Gendarmenmarkt, Greifswalderstraße, Hackeschen Markt, Kadewe, Karl-Marx-Straße, Kreuzberg District, Kurfürstendamm, Moabit Tower, Münzstraße, Neue Schönhauser Straßen, Neues Kranzler Eck, Rosenthaler Straße, Schloßstraße, Schönhauser Straße, Steglitz Shopping-Centers, Tauentzienstraße, Unter Den Linden, Wilmersdorfer Straße, Bremen, Gerhard Rohlfs Strasse, Hutfilterstraße, Obernstrasse, Sögestrasse, Stresemannstraße, Waterfront, Waterfront, Mall B, Werder Karree, Dortmund, Bornstraße, Thier-Galerie, Westenhellweg, Dresden, Altmarkt, Altmarkt-Galerie, Center Altmarktgalerie, Prager Straße, Waisenhausstraße, Düsseldorf, Berger Straße, Cecilienallee, Einkaufszentrum Seven, Flinger Straße, Friedrichstraße, Grabenstrasse, Kasernenstraße, Kirchstraße, Königsallee, Schadow Arkaden, Schadowstraße, Essen, Bahnhofstraße, Centro Oberhausen, Kettwigerstrasse , Limbecker Platz, Limbeckerstrasse, Frankfurt, Fahrgasse, Frankfurter Luxusmeile, Friedensstraße, Goethestraße, Große Bockenheimer Straße, Kaiserstraße, Rathenauplatz, Roßmarkt, Steinweg, Frankfurt Airport, Zeil, Hamburg, Abc-Straße, Eppendorfer Marktplatz, Gänsemarkt, Gänsemarkt Passage, Große Bleichen, Lüneburger Straße, Neuer Wall, Poststraße, Hannover, Bahnhofstraße, Big Packhof Road, District Osdorf, Georgstraße, Großen Packhoffstraße, Karmarschstraße, Kröpcke Center, Osterstraße, Köln, Aachener Strasse Ehrenstraße, Hohe Straße, Köln-Widdersdorf, Mittelstraße, Schildergasse, Westgate, Krefeld, Hochstraße,Leipzig, Grimmaische Strasse, Peterstrasse, München, Amalienstraße, Balanstraße, Brienner Straße, Falckenbergstraße, Hohenzollernstraße, Ingolstadt Village, Karlsplatz, Lebachplatz, Leopoldstraße, Ludwigstraße, Neuhauser Straße, Palais An Der Oper, Perusastraße, Residenzstraße, Schäfflerstrasse, Sendlingerstraße, Theatinerstraße, Nürnberg, Breiter Gasse, Airport Stuttgart, Calwerstraße, Eberhardstraße, Kirchstraße, Königstraße, Kronenstraße, Kronprinzstraße, Lautenschlager Straße, Marienstraße, Marktplatz, Rathausstraße, StiffstrasseGhana, Accra, A&C Mal, Oxford Street at Osu, Greece, Athens, Andrea Papandreou Street, Athens International Airport, Avenue Piraeus, Gialos, SpataE. Clayton Street, Ermou Street, Monastiraki Square, PhiladelphiaSkoufa, KolonakiThe Mall Athens, Hungary, Budapest, Andrássy Út, Arena Plaza, Budapest Downtown, Corvin Bevásárlóközpont Outlet, District Viii, Holló Utca, Mammut Shopping Mall, Market Central Ferihegy, North-East Part Of The Köki, Váci Út, Vörösmarty Square, Westend City Center, India, Mumbai, Horniman Circle, Infinity Mall 2, Kurla Area, Linking Road, Neptune Magnet Mall, Phoenix Market City, Phoenix Shopping Mall,Shangri-La Hotel, Taj Palace Hotel, Ambience Mall, Connaught Place, Dlf Emporio Mall, Oberoi Gurgaon Hotel, Select Citywalk, Shopping Center The Gallery Mg, South Extension Ii, The Hotel Cladridges, Indonesia, Jakarta, Central Park Mall, Grand City Surabaya Mall, Jl. Sultan Iskandar Muda, Mal Kelapa Gading mall, Plaza Indonesia, Plaza Senayan, Senayan City, Sunter, Ireland, Dublin, Blanchardstown, Chatham Row, Dublin 2, Dawson Street, Dundrum Town Centre, Fallon Gateway Sc, Finglas, Grafton Street, Greencastle Retail Park, Jervis Street Shopping Centre, Kilgobbin Road, Dublin 18, Margaret‘S Road, Mary Street, Millfield Shopping Centre, Paul Sexton Garden, St Andrew Street, Veterans Boulevard, Wicklow Street, Israel, Tel Aviv, Bazel Square, Dizengoff Center, G Zameret Boutique Mall, Gan Hayir Shopping Center, Kikar Hamedina, Menachem Begin Street, Ramat Aviv MallItaly, Florence, Piazza SignoriaItaly, Florence, Via Della Signoria

490

locationgroup research | Retail Market Study 2012

All‘Angolo, Italy, Florence, Via San Quirico, Milan, Vittorio Emanuelle Ii Gallery, Corso Monforte, Corso Venezia, Galleria Del Corso, Via Dante, Via Della Spiga, Via Gesu, Via Manzoni, Via Montenapoleone, Vía Ruggero Boscovich, Via Torino, Naples, Corso Sparano, Main Train Station, S.S. Sannitica, Via Calabritto, Via Filangeri,, Via Scarlatti, Via Toledo, Rome, Collatina Street, Piazza Di Spagna, Via Babuino, Via Bocca Di Leone, Via Borgognona, Via Campo Marzio, Via Dei Condotti, Via Dei Due Macelli, Via Del Babuino, Via Del Corso, Via Delle Carrozze, Via Delle Convertite, Japan, Osaka, Q‘S Mall, Tokyo, Daikanyama, Ginza, Ginza 4-Chome Bldg, Ginza Komatsu Bldg, Minami Aoyama, Roppongi, Roppongi Hills, Kuwait, Kuwait, 360 Mall, Al Jawhara Complex, Alhamra Tower, Avenues Mall, Awtad Mall, Jahra Al Salam Complex, Marina Mall, Lebanon, Beirut, Abc Mall Achrafieh, Allenby Street, Bab Idriss, Berytus Building, Centre Sofil, El Moutran Street, Ivory Building, Achrafieh, Palladium 2, Park Avenue Mina El Hosn, Lesotho, Maseru, Maseru Mal, Luxembourg, Luxembourg, Boulevard Royal, Malaysia, Kuala lumpur, Avenue K shopping center, Fahrenheit88, Jalan Imb, Jalan Wan Kadir, Kuala Lumpur International Airport (KLIA) Satellite Building-Gates, Pavilion Kuala Lumpur, Starhill Callery, Suria KLCC shopping mall, The Gardens Mall, Tiga, Bangsar Bary, Mauritius, Mauritius, Bagatelle Mall of Mauritius, Mexico, Mexico City, Antara Fashion Hall, Av. Presidente, Avenida Presidente Masaryk, Benito Juárez International Airport’S Terminal Two., Centro Comercial Mundo E, Commercial Center Plaza Satellite, Department Store Palacio De Hierro Interlomas, Luxury Park Plaza Shopping Mall, Paseo Interlomas Mall, Santa Fe Mall, Calle 183, Monaco, Monaco, Avenue Des Citronniers, Boulevard Des Moulins, Hôtel De Paris, Métropole Shopping Center, Place Du Casino, Rue GrimaldiMorocco, Casablanca, Galeries Lafayette, Mediterranean, Morocco Mall, Marrakech, Av Mohamed VI, Avenue Yakoub el Mansour, Avenue Haroun Rachid, rue Du Temple, Quartier Hivernage, Zone touristique, village Agdal, Netherlands, Amsterdam, Centre Of Amsterdam, Cornelis Schuytstraat, Damrak, Damsquare, Hartenstraat, Heiligeweg, Herengracht, Jacob Obrechtstraat, Kalverstraat, Leidseplein, Leidsestraat, Magna Plaza, Nieuwezijds Voorburgwa, Pazzanistraat, PC Hooftstraat, Reestraat, The Bijenkorf, Utrechtsestraat, Van Baerlestraat, Zuidermolenweg, Maastricht, Kleine Staat, Mcarthur Glen Roermond, Nigeria, Lagos, Adeniran Ogunsanya Street, Adeola Odeku Street, Amodu Tijani, Chase Mall, Ikeja City mall, Ikota Shopping Complex, Lekki, Olosa Street, Palms Shopping Mall, Polo Park, Sanusi Fafunwa Street, Transcorp Hilton, Norway, Oslo, Bogstadveien, Gronnegata, Hegdehaugsveien, Oslo Airport, Panama, Panama, Albrook Mall, Multicentre Shopping Mall, Panama Tocumen Airport, Philippines, Manila, Makati’s GreenbeltPhilippines, Manila, One Rockwell, Powerplant Mall, Robinsons Galleria Mall, Rustan’s Makati, Shangri-La Plaza, SM Mall of Asia Complex, Poland, Katowice, Chorzowska, Shopping Center Plejada Sosnowiec, Szczecin, Al. Niepodleglosci, Kaskada Gallery, Outlet Park Szczecin, Warsaw, Blue City Shopping Center, Klif Warszawa Shopping Centre, Nowy Swiat, Plac Trzech Krzyży, Shopping Center Arkadia, Ul. Jana Pawła Ii, Warsaw Financial Centre, Wolf Bracka On Ul. Bracka, Zlote Tarasy Shopping Center, Lisbon, Amoreiras Shopping Mall, Avenida Da Liberdade, Centro Comercial Colombo, Freeport Lisboa Designer Outlet Resort, Galerias Saldanha Residence, Mercado De Santa Clara, Rua Castilho, Rua Do Carmo, Rúa Garrett, Rua Nova Do Almada, The Mall Sc, Qatar, Doha, Lagoona Mall, Landmark Mall, Mirdif City Centre Shopping Mall, Villaggio Mall, Romania, Bucharest, Afi Palace Cotroceni, Aleea Barajul Dunarii St., Baneasa Shopping City, Calea Victorie, Dorobanti Road, Jw Marriott Grand Hotel, Palace Cotroceni, Radisson Blu Hotel Complex, Timisoara Boulevard, Russia, Moscow, Afimall City, Department Store Gum On Red Square, Golden Babylon Rostokino, Hotel Moskva, Kapitoly Vernadskova Mall, Mega Tepliy Stan, Pl. Kiev Station 2, Seasons Gallerie Shopping Mall, Shopping Center „Metropolis“, Leningrad Prospect, Shopping Center Gorbushka, Stoleschnikow Pereulok, The Mkad Ring Road, Tretyakov Passage, Tsum Department Store, Tsvetnoy Central Market, Tverskaya Ulitsa, Ul. Ordzhonikidze, Ulitsa Krasnaya Presnya, Varshavskoe Shosse, Vegas Shopping Mall, St. Petersburg, Four Seasons Lions Gate Hotel,Grand Canyon Department, Nevsky Prospect, Outlet Center, ShoppingCentre „Hay“, The Grand Kanyon Retail Centre, Saudi Arabia, Riyadh, Al Talhiya Street, Kingdom Mall, Olaya Street, Scotland, Edinburgh, Balgreen Road, Fountainbridge, Frederick Street, George Street, Hillcrest Parkway, Princes Street, Sighthill, St Mary’S Street, Stevenson Road, Serbia, Belgrade, Čumićeva Bb, Lokal 96, Knez Mihailova Street, Kralja Milana, Serbia Sava Centar, Shopping Center Pasino Brdo, Terazije, Singapore, Singapore, Causeway Point, Knightsbridge Mall, Marina Bay Sands, Orchard Building, Orchard Road, Paragon Building Shopping Mall, Scott Square Road, Takashimaya Shopping Centre, The Shoppes At Marina Bay Sands, Vivo City, South Africa, Alexandra, Pan Africa Shopping Centre, Cape Town, Bree Street, Canal Walk Shopping Centre, Kloof Street, Milnerton, the V&A Waterfront, Wale Street, Johannesburg, Wale Street, Clearwater Mall, Corlett drive, Rustenburg, Hype Park, Juta Street, Nelson Mandela Mall, Parkhurst, Royal Place, Sandton City Mall, Stanley, Weltevreden Park, Lephalale, Lephalale Mall, South Korea, Daegu, Hyundai Department Store, Seoul, Cheongdamdong, D-Cube City Shopping Center, Gwangmyeong, Outskirts Of Seoul, Incheon International Airport, Lotte World Duty Free, Myeongdong Central, Spain, Barcelona, Avenida Pablo Casals, Avinguda Diagonal, Calle Pelayo, Calle Provenza, Calle Rosellón, Calle Serrano, Carrer De La Vidriería, Carrer De Provença, Las Arenas, L‘Illa, Paseo De Gracia, Passeig De Gràcia, Rambla Catalunya, Rambla De Cataluña, Madrid, Calle Alcala, Calle Claudio Coello, Calle Fuencarral, Calle Goya, Calle Menorca, Calle Ortega Y Gasset, Calle Serrano, Factory De Getafe, Gran Vía, Majadahonda Outlet Mall, Plaza Del Marques Salamanca, Plaza Norte 2, Rambla De CataluñaSan Sebastián De Los Reyes, Malaga, Larios Shopping Center,, Seville, Calle Sierpes, Plaza De San Francisco, Sweden, Stockholm, Biblioteksgatan, Birger Jarlsgatan, Gallerian, Johannesgränd, Norrlandsgatan, Sergelgatan, Stockholm Quality Outlet Barkarby, lm, Taby Centrum, Switzerland, Basel, Aeschenvorstadt, Birsstrasse, Elisabethenstrasse, Freie Strasse, Gerbergasse, Güterstrasse, Migros-Fachmarktzentrum Mparc Dreispitz, Steinenvorstadt, Südpark Basel, Bern, Marktgasse, Neubrückstrasse, Spitalgasse, St. Gallen, Von Werdt-Passage, Biel, Bahnhofplatz, Nidaugasse, Geneva, Rue Céard, Rue De La Rôtisserie, Rue Du Rhône, Gstaad, Bahnhofstrasse, Grand Hotel Park, Palace Hotel, Promenade, Lausanne, Lausanne And Geneva, Rue De Bourg, Rue Du Grand-Pré, Locarno, Piazza Grande, Sant‘Antonino, Via Serrai, Via Varenna, Lugano, Cadenazzo, Via Balestra, Via Degli Albrizzi, Via Nassa, Via Pessina, Luzern, Alpenstrasse, Emmen Center, Grendelstraße, Habsburgerstrasse, Horwerstrasse, Moosmattstrasse, Mühlenplatz, Rothenburger Industrieareal Wahlingen, Schönbühl Shopping Center, Untergeschoss Von Sbb Railcity, Weinmarkt, St. Gallen, Davidstrasse, Gallusstrasse, Ladenpassage, Langgasse, Multergasse, Neugasse, St. Leonhardstrasse, Vonwilstrasse, Westcenter, St. Moritz, Palace Galerie, Via Maistra, Via Serlas, Winterthur, Bahnhofplatz, Marktgasse, Römerstrasse, Rosenberg Shopping Center, St. Galler Strasse, Unteren Vogelsangstrasse, Unterer Graben, Zürich, Bahnhofstraße, Birmensdorferstrasse, Dietikon, Einkaufszentrum Glatt, Freyastrasse, Glatt Zentrum, Limmatquai, Lintheschergasse, Marktgasse, Niederdorfstrasse, Oerlikon, Rennweg, Shopville-Railcity Zürich, Storchengasse, Weite Gasse, Werdmühleplatz, Wühre, Zürich Airport, Taiwan, Taipei, Bellavita Shopping Center, Landmark Building 101, Ming Yao Department Store, Thailand, Bangkok, Bangna-Trad Rd, Bangkok’S Gaysorn Shopping Mall, Central Plaza Grand Rama 9, Central Plaza Ladprao, Central World Shoping Center, Emporium Mall, Rama Iv Road, Siam Paragon, Terminal 21, The Emporium Shopping Complex, Turkey, Istanbul, „City’S“ Shopping Mall, Abdi Ipekçi Cad, Abi Ipekci Caddesi, Akatlar Shopping Mall, Bagdat Caddesi, Caddesi, Demirören Istiklal Mall, Istanbul Istinye Park, Istanbul’S Şişli District, Istinye, Kagithane District, Nişantaşi, Saadetdere Mah, UAE, Abu Dhabi, 9Th Street, Abu Dhabi Mall, Abu Dhabi Marina Mall, Airport Road, Al Beri Resort, Al Wahda Mall, Dalma Mall, Hadbat Al Zafranah - 2Nd St, Mushrif Mall, Umm Al Nar Area, Dubai, Al Ain Mall, Downtown Dubai, Dubai Mall, Mall Of Emirates, Mirdif City Centre, Oasis Centre, Ukraine, Kiev, Basseynaya Str. 5°, Krasnoarmeyskaya Street, Mandarin Plaza Mall, Moskovska street, St. Khreschatyk, United Kingdom, Gateshead, Metrocentre Shopping Center, London, Bluewater, Brent Cross Shopping Centre, Brompton Road, Carlos Place, Harrods London, King Street, London Stock Exchange, Paternoster Square, Motcomb Street, Mount Street, New Bond Street, Old Bond Street, Oxford Street, Premier Inn Thurrock West, Stonehouse Ln, Regent Street, Sloane Street, The Royal Exchange, Westbourne Grove, Westfield London, Westfield Mall, Westfield Stratford, Manchester, Cheetham Hill’S Manchester Fort Shopping Park, Great Ancoats Street, House Of Fraser, Manchester Arndale Centre, Market Street, Oldham Street, Oxford Road, Spinningfields, The Trafford Centre, USA, Chicago, North Michigan Avenue, North Rush Street, Rosemont, Ill., Near O’Hare International Airport, Water Tower Place, Florida, Aventura Mall, Collins Avenue, Lincoln Road, Miami, Pier Park, Sea Turtle Dr., Tampa, Worth Avenue, Miami, Houston, Almeda Crossing Shopping Center, Department Store Galleria, The Galleria, Las Vegas, Bellagio Hotel, Crystal Castles, Crystals At Citycenter, Las Vegas Boulevard, Los Angeles, Beverly Center, Brighton Way, Dayton Way, Melrose Avenue, Rodeo Drive, South Robertson Boulevard, New York, Bal Harbour Luxury Sc, Bleecker Street, Broadway, Broadway And Spring Street, Carlyle Hotel, Central Park South, Columbus Avenue, Crosby Street, Fifth Avenue, Grand Central Terminal, Grand Street, Greene Street, Luxury Department Store Bergdorf Goodman, Madison Avenue, Puck Building, Lafayette St., Rockefeller Centre, Spring Street, Third Avenue, Washington Street, West 34Th Street, Woodfield Mall, San Francisco, Fillmore Street, Geary Street, Market Street, San Francisco Airport, Stockton Street, Union Square, Vietnam, Hanoi, Ba Trieu, Hàng Da Galleria, Ly Thai To, Parkson Landmark, Parkson, Keangnam Landmark, Phan Chu Trinh, Pico Mall, The Garden Shopping Mall, Trang Tien Plaza, Hochiminh City, Bitexco Building, Crescent Mall, Rex Arcade - Rex Hotel, Vincom Center Zambia, Lusaka, Levy regional shopping centre

locationgroup research | Retail Market Study 2012

491

Retailer .

Luxury Retailer 7 For All Mankind, A. Lange & Söhne, Aigle, Aigner, Akris, Alexander McQueen, Alexander Wang, Anne Fontaine, Armani, Armani Exchange, Ascot Chang, Audemars Piguet, Balenciaga, Bally, Balmain, Barbara Bui, Baume & Mercier, Bell & Ross, Bogner, Bottega Veneta, Boucheron, Breguet, Brioni, Brunello Cucinelli, Buccellati, Budapester Schuhe, Bulgari, Burberry, Calvin Klein, Canali, Car Shoe, Carhartt, Carl F. Bucherer, Carlo Pazolini, Carolina Herrera, Cartier, Casadei, Céline, Chanel, Chloé, Chopard, Christian Dior, Christian Louboutin, Church’s, Coach, Coccinelle, COMME des GARÇONS, Comptoir des cotonniers, Damiani, De Beers, Dirk Bikkembergs, DKNY, Dolce & Gabbana, Donna Karan, Dorothy Perkins, Ducati, Elie Saab, Elisabetta Franchi, Emilio Pucci, Emporio Armani, Eres, Ermanno Scervino, Ermenegildo Zegna, Escada, Etro, Fendi, Ferrari, Fred Perry, Givenchy, Gucci, Hackett London, Harmont & Blaine, Harry Winston, Helmut Lang, Hermès, Herve Leger, Hogan, Hublot, Hugo Bosss, Jaeger-LeCoultre, Jaquet Droz, Jean-Michel Cazabat, Jimmy Choo, Karen Millen, L.K Bennett , La Perla, Labelux, Lamborghini, Lancel, Lanvin, LES AMBASSADEURS , Loewe, Longchamp, Longines, Loro Piana, Louis Vuitton, Ludwig Reiter, Maison Martin Margiela, Manolo Blahnik, Marina Rinaldi, Marithé + Francois Girbaud, Marni, Massimo Dutti, Max Mara, Michael Kors, Missoni, Miu Miu, Moncler, Montblanc, Moschino, Moynat, Mulberry, Navyboot, Nicholas Kirkwood, Officine Panerai, Omega, Pandora, Paul Smith, Philipp Plein, Piaget, Pomellato, Porsche Design, Prada, Pretty Ballerinas, Rado, Ralph Lauren, Rebecca Taylor, Reuge, Richard Mille, Richemont, Roberto Botticelli, Roberto Cavalli, Roger Vivier, Rolex, Rolls Royce, Salvatore Ferragamo, Sergio Rossi, Stefanel, Stefano Ricci, Stella McCartney, Steve Madden, Strenesse, Stuart Weitzman, Swarovski, Tag Heuer, Tara Jarmon, The Hour Glass, Thomas Pink, Tiffany & Co., Tod's, Tom Ford, Tory Burch, Trussardi, Vacheron Constantin, Valentino, Van Cleef & Arpels, Versace, Vertu, Vivienne Westwood, Yves Saint Laurent, Zadig & Voltaire, Zenith Mainstream Retailer 23 Sports, 981 Bike Shop, 99 Cents, A. Lange & Söhne, A.P.C, Abercrombie & Fitch, Accessorize, Ace Hardware, Acne Studios, Aderlass Top-Store, Adidas, Adidas-SLVR, Adolfo Dominguez, Aéropostale, AGATHA, Agent Provocateur, Aktiv Schuh, Albeck-Moden, Alcott, Aldi, ALDO, Alepa, Alessi, AllSaints, Alltours, AMC, America Today, American Eagle, American Vintage, Angry Birds, Ann Harvey, Anteprima, Apollo Optik, Apple, Arche, Aritzia, Armata Di Mare, Arqueonautas, Artemano, Aspinal, Athleta, Atrium, Aubade, Auchan, Austin Reed, AVANTI, Avon, BabyECO, Baci Lingerie, Baci Lingerie, Bäckerei Stadtmühle, Baldinini, Bambi Nina Bruckner, Bamburi, Banana Repulbic, Bank Linth, Bär Schuh, Barrique, Basler, Bata, Bath & Body Works, BAUHAUS, BCBG MAXAZRIA, Bench, Benefit, Benetton, Bento Box, Bernie‘s, berryKISS, Bershka, BestBuy, Bestseller, Bexley, Biba, Bikestop, Billa, Billa Romania, Billabong, Bio Company, BlackBerry, Blanco, Blažek, BoConcept, Boggi Milano, Boogs, Botty, Bovida, Brandy & Melville, Brigitte Von Boch, Brooksfield, Buffalo, Burger King, Butlers, C&A, Caleidos, Calida, Caluwé Artisan Chocolatier, Calzedonia, Camaïeu, Camp David, Camper, Campo Marzio, Campo Marzio Design, Capi, Capsula, Cara&Co, Cardón, Carlo Pignatelli, Carlton, Carmen Steffens, Carrefour, Cas-

492

sina, Celio, Cellier des Princes, Cerre, Changemaker, Chantelle, Charanga, Charles Tyrwhitt, Charles Vögele, Cheap Monday, Chelsea, CHIXNGRAVY, Chronostock, CINQUE, Citizen, Claire‘s, Clarks, Claudie Pierlot, Closed and 14 oz., Club Monaco, Coca-Cola Clothing, Coiffeursalon Beato, Comma, Confiserie Sprüngli, Confo Déco, Convenience store Lawson, Converse, Coolway, Coop, Corneliani, Cortefiel, COS, Costco, Cotton On, Cottonfield, CR Vanguard, Credit Suisse, Crocs, Custo Barcelona, D&G, Daiso Japan, Damas, Daniel Hechter, Daniels, DAY Birger et Mikkelsen, DC Shoes, Debenhams, Debro Holding, Decathlon, Declic, Deha, Deichmann, Deliberti, Delvaux, Denner, Depot, Desigual, Dewitt, Diamond Nexus, Dickies, Diesel, Digidog, Digitec, Dior, Dior Homme, Disney, DKNY Intimates, Dm, Do it Best Corp, Dolmetsch, Don Gil, Dorotheum, Dosenbach Schuhe und Sport, Douglas, Douglas Hannant, DSquared², Eckerle, EEN, EFI, EILEEN FISHER, El Ganso, Element, Elf Cra, Eliane, Energie, Esprit, Etam, Etnies, Euroset, Evans Cycles, Express, Eyes & More, F.P. Journe, Fabergé , Fabrizio Giannone, Faconnable Jeans, Falcon Private bank, Faliero Sarti, Fame, Famous, Fashion Outlets of Chicago, Fashion Queen, Fielmann, Filippa K, FixGear and SingleSpeed, Flamenco, Flip Flop, Fly London, Fnac, Focus, Fogal, Food Depot, Foot Locker, Forever 21, Fosco, Fossil, Fred de la Bretoniere, Frederique Constant, Freitag, French Connection, Fressnapf, Frey Wille, Fricker Shoes, Funkyfish, G.Point, G’Roby, Galeries Lafayette, GameStop, Gant, Gap, Gap Inc., Garage, Garcia Jeans, Gate, Geox, Gerry Weber, Gifi, Gilly Hicks, Gina Tricot, Giordano, Global Fashion, Globetrotter, Gloria Jean‘s, Go Outdoors, Google, Gries Deco Company Depot, Grupo Cortefiel, G-Star, Gudrun Sjödén, Guess, Guinness, Gunung Agung, H&M, Habitat, HairX-Luzern, Hakei, HAKO Schuhe, Hallhuber, Hamleys, Hard Rock Café, Harvey Nichols, Harvey‘s, Helly Hansen, Hering, Hertie, Hispanitas, HMV, Hoff, Högl, Hollister, Holyfields, Hope, Horkan‘s, Horsch schuhe, Hoss Intropia, Hot Fudge, Hotel Chocolat, Hotel De Paris, HP, HTC, Hunkemöller, Hush Puppies, Hysek, I Pinco Pallino, Ice Watch, Iceland, IKEA, Il Gufo, IMAGE HADDAD, Imaginarium, Incu, Intermix, International Plaza mal, Intimissimi, iPhone Klinik, J.Crew, Jacadi, Jack & Jones, Jack Wolfskin, Jane Norman, Jay Godfrey, JD Sports, Jeffrey Campbell, Jo Jo’s Danish Bakery and café, Jo Malone, Joe Fresh, Joe‘s Jeans, John Lewis, Joules, Journelle, Juan Valdez Cafe, Juicy Couture, Jumex, Jumpin, Juwelier Größwang, Kadangas, Kaiserhof Kitzbühel, Kamps, Kaporal, KappAhl, Kardashian Khaos, Karstadt, Katakeet, Keller Sports, Kennel & Schmenger, Kent, KFC, KIBOOTS, Kiehl‘s, KIK Textilien, KiKo, Kipling, Kobra, kyBoot, L.Guillo, La Martina, La Prairie, La Senza, Lacoste, Lacoste L!ve, Läderach, Lagkagehuset, LalaBerlin, Lambert, Lambretta, Lancaster, Landmark Group, Lane Crawford, Lanificio Colombo, Lauren Vidal, LC Waikiki, Le Coq Sportif, Le Palais des Thés, Lecoanet Hemant, Lego, Leica Boutqiue, Leiser, Lena Hoschek, Lenovo, Leroy Merlin, Les Petites, Letec, Levi‘s, Li Ning, LIALI Jewellery, Lidl, LIEBESKIND, Liebeskind Berlin, Lindex, LINUS, LOLA, Lomography, LOOK, Loreak Mendian, Lösche Pelze, Lotte Mart, Lottusse, Louis GIGAStore, Loxwood, Lum, Lumimart, Lush, Luxenter, M.A.C, Machja, Mackintosh, Madison, Madoxx Fashion, Mais il est où le Soleil, Mais Óptica, Maison-NL, Maje, Make Up For Ever, Mamas & Papas, Mammut, Manchester City, Mango, Marcel,

locationgroup research | Retail Market Study 2012

Maria Nilsdotter, Marimekko, Marisa Lingerie, Marks and Spencer, Marokk,, anse, Marshalls, Masters, Mavi Jeans, Max Moretti, Maxim Voznesensky, Maybelline, Mc Adam Kitchens, McArthurGlen Group, McDonald‘s, MCM, MCS, Media Markt, Meermin, Men’s Wearhouse, Metro, Metro Boutique, Metro Cash & Carry, Mexx, MGX

by Materialise, Michel Jordi, Migros, Migue Suay, Milus, MIMIMASO & JOVANA MARKOVIĆ, Minelli, Minotti, Miss Sixty, moda.verde, Modiana, Molino, Monki, Monnalisa, Monoprix, Monsoon, Movistar, MQ store, Mr Bricolage, MUJI, Müller, m-way, Myracle, MyShoes, NafNaf, Nando‘s, Napapijri, Naracamicie, National Geographic, Natori, Naturalia, Naulover, Neck&Neck, Neo/Adidas, Nespresso, New Look, New Yorker, Nike, Nine West, Nira Hotels & Resorts, NKD, Noa Noa, Normana, Norrøna, NORTHLAND, O’Neill, OASICS, OBI, OBI KOKI, Oldo, Olymp, Optical store, Options, Orange, Orange Globus, Orange/CityDis, Orchestra, Orell Füssli, Ørgreen, Orianne Collins, Outlet Center, OVS, Pal Zileri, Panerai/Aeropostale, Patagonia, Patrick Mésiano, Paul, Peacocks, Peak Performance, Peek&Cloppenburg, Perrin Paris, Phoenix Market City Mall, Piazza Sempione, Piero Guidi, Pimkie, Piquadro, Planet Sports, Pointer, Poltrona Frau, Portugal Modernista, Power food, Prénatal, Presende Strickler, Press & more, Pretorian Hard Sport, Primark, Pringle of Scotland, Pronovias, Provocateur, Pull & Bear, Punto Blanco, Pura López, Pure Gold Jewellers, Pylones, Quiksilver, Rafael Catalá, Raiffeisen bank, Rautakesko, Red Wing, Reebok, Refan, REI, Reiss, Reno, Replay, Riachuelo, Rich & Royal, Rip Curl, Rituals, River Island, Rockport, Roger Dubuis, Roland Mouret, Rossmann, Roy Robson, Royal Asscher, Ruco Line, RUGBY, Runners Point, Ryffel RunninG, S.Oliver, Sacha, Sacoor Brothers, Sainsbury, Salamander, Sample Central , Samsonite, Samsung, San Serriffe bookstore, Sandro, Sandro & Maje, Satellite, Saturn, Scavolini, Schild, Scoop NYC, Scotch & Soda, Sephora, Serapian, SEVEN SINS, Sharaf DG, Sherpa Outdoor, Shuala, SICIS, Silesia City Center, Simorra, Sita Murt, SMETS, Smiles, Sony, Spar, Spar Express, Starbucks, Starbucks & SSP, Steiff, Steps, Stiletti, Stockmann, Street One, SUA Galeria, Suitsupply, Sundek, Superdrug, Superdry, SuperTrash, SUZAAN HEYNS, Swatch, Tabio, Takko, Tally Weijl, Tamaris, Target, Taschen, Tati, TAUERNGOLD & DAVID DIAMOND, Tchibo, Ted Baker London, TEDi, Tesco, The Body Shop, The Co-operative, The Goose, The Kooples, The North Face, The Perfume Shop, The Room, The White Company, Thomas Cook, Thomas Sabo, Tiger, Tiger of Sweden, Timberland, TK Maxx, T-Market, Tom Tailor, Tombolini, Tommy Hilfiger, Toni & Guy, TOP SHOES, Topshop, Topshop - Topman, TOUS, Toys ‘R’ Us, Tretorn, Tricot, Triump, True Religion, Tuc Tuc, TUDOR U.S. Polo Assn, UGG, Uniqlo, UNITED COLORS OF BENETTON, UNITED NUDE, Unrath & Strano, Unser Markt, Urbaks, Urban Outfitter, Used-Design, Valiant Bankgroup, Van Bommel, VAN GRAAF, Van Heusen, Vanessa Bruno, Vanishing Elephant, Vans, Vapiano, Velostatt, Vero Moda, Victoria couture, Victoria‘s Secret, Victorinox, VIPP, Vodafone, Walbusch, Walmart, Watch Station, Waterstone‘s, WE Fashion, Wellensteyn, WeSC, WestGem, White Stuff, Wickes, Wolford, Won Hundred, Wood Wood, Woolworths, Wosley, Yenikolka, Yves Rocher, Zalando, Zara, Zara Home, Zellig, Zenana, Zilian, Zippy, Zwei Franken Shop

locationgroup research | Retail Market Study 2012

493

Sources .

We thank all companies and journalists for providing the articles and reports. Due to the amount of resources, we have placed at random, the origin of the reports.

We provide other sources of information upon your request.

General Textilwirtschaft http://www.textilwirtschaft.de Vogue http://www.vogue.com Pambianco News http://www.pambianconews.com Bloomberg http://www.bloomberg.com CPP Luxury http://www.cpp-luxury.com Retail Week http://www.retail-week.co.uk Property Week http://www.propertyweek.com The Real Deal http://therealdeal.com China Retail News http://www.chinaretailnews.com GfK Geomarketing http://www.gfk-geomarketing.com Immobilien Zeitung http://www.immobilien-zeitung.de Shoppingcenter Switzerland http://www.tagesanzeiger.ch/zuerich/gemeinde.htmlUmbruch-im-Glattzentrum/story/14186110/print.html http://www.zeit.de/2011/32/CH-Desigual http://www.glatt.ch/resources/Medientext_GGG.pdf http://realestatedays.ch/media/real_estate/pr%C3%A4sentationen%202011/wincasa.pdf http://www.blick.ch/news/wirtschaft/das-sind-die-top-shopping-tempel-der-schweiz-172888 http://www.handelszeitung.ch/unternehmen/diese-shoppingcenter-sind-top http://www.baublatt.ch/news/hintergrund/bernaqua-bad-bleibt-bis-2012-zu http://bazonline.ch/panorama/vermischtes/Darum-stuerzte-im-Bernaqua-die-Decke-ein/story/11502335?track http://www.buchreport.de/nachrichten/handel/handel_nachricht/datum/2011/06/14/flaechenexpansion-hat-zu-lange-unser-denken-dominiert.htm http://www.migros.ch/mediaObject/migros_ch/ueber_die_migros/regionen/aare/unternehmen/bilanzmedienkonferenzthun010411/original/bilanzmedienkonferenzthun010411.pdf http://www.westside.ch/getdoc/f4019f36-c48d-4511-9855-b447d8da2fd3/Medienmitteilung_1-Jahr-Bilanz_Okt-09.aspx http://www.bernerzeitung.ch/region/bern/Leere-Laeden-im-Westside--Das-ist-ein-Vorurteil/story/12273264 http://www.derbund.ch/bern/Westside-muss-noch-zulegen/story/24683845 http://www.robe-verlag.ch/fileadmin/seiteninhalt/pdfs/bib/BIB_westside_08_06.pdf http://my.arch.ethz.ch/kehoeger/publications/0810_Westside-Bruennen_archithese.pdf http://www.orellfuessli.com/uploads/media/070621_Medienmitteilung_OFB.pdf http://www.tageswoche.ch/de/2011_49/basel/120914/ http://www.blick.ch/news/wirtschaft/coop-kauft-volkiland-188447 https://mediasaturnstore.blob.core.windows.net/frontend/media/press-releases/de_20110926_neuchatel_eroeffnung.pdf Z端rich Airport http://www.flughafen-zuerich.ch/desktopdefault.aspx/tabid-514/ http://www.tagesanzeiger.ch/zuerich/unterland/Neuer-ZollfreiShop-bringt-bis-zu-40-Millionen-Franken-Umsatz/story/29208701 http://www.tagesanzeiger.ch/news/standard/Flughafen-wappnet-sich-fuer-Kundenansturm/story/20471430?dossier_id=1073 Railcity Switzerland http://m.sbb.ch/news.newsdetail.2011-9-2209_45_03.html http://www.sbb.ch/bahnhof-services/am-bahnhof/bahnhof/shopville-railcity-zuerich/newsmeldung-railcity-zuerich.html

494

locationgroup research | Retail Market Study 2012

Retail Real Estate Market http://qbusiness.pl/uploads/Raporty/cweretail32011.pdf http://www.bestwood.de/2011/10/18/einzelhandel-europa-ahnliche-entwicklungslinien-bei-unterschiedlichem-entwicklungsniveau/ Purchasing Power Switzerland www.ubs.com/2/e/.../Preise_Loehne_2011_e.pdf http://www.time.com/time/business/article/0,8599,2019589,00.html http://mobile.bloomberg.com/news/2011-08-15/swiss-ponder-unthinkable-as-world-s-chaos-turns-franc-economy-upside-down http://www.forbes.com/2009/08/24/best-paid-cities-lifestyle-real-estate-worlds-income-salary_slide_2.html http://www.gfk-geomarketing.com/fileadmin/newsletter/pressrelease/purchasing-power-dach-2011.html http://www.tagesanzeiger.ch/zuerich/stadt/FeinKaller-gibt-sein-Geschaeft-auf/story/29584993 http://www.tagesanzeiger.ch/kultur/architektur/So-wird-Luganos-200MillionenPrestigebau-aussehen/story/24982703 http://www.tagesanzeiger.ch/wirtschaft/agenturen-ticker/Starker-Franken-lsst-Detailhandelsumstze-schrumpfen/story/20124899 http://www.nzz.ch/nachrichten/wirtschaft/aktuell/flaues_weihnachtsgeschaeft_1.13857204.html http://www.bernerzeitung.ch/wirtschaft/unternehmen-und-konjunktur/Loeb-mit-Umsatz-und-Gewinnrueckgang-im-Halbjahr/story/21600827 Investment Market Switzerland http://www.kpmg.com/CH/de/Library/Articles-Publications/Documents/Advisory/pub-20111019-real-snap-shot-de.pdf http://www.mieterverband.ch/fileadmin/alle/Dokumente/Statistik_Studien/Immo_Zahlen_CS_2011.pdf http://www.derbund.ch/bern/Neue-Besitzer-fuer-das-Wankdorf-/story/30877247 http://www.engelvoelkers.com/ch/schweizcommercial/de/shop/Publikationen/Markbereinigung.pdf http://www.baerkarrer.ch/contents/listcases/mid/5/lang/de http://www.nzz.ch/nachrichten/wirtschaft/aktuell/migros_aeussert_sich_erstmals_zu_voegele-beteiligung_1.13857231.html http://www.bilanz.ch/unternehmen/migros-depot-fuer-depot http://www.coop.ch/pb/site/uebercoop/get/documents/coop_main/elements/ueber/geschaeftsbericht/2011/_pdf_gb2010/GB10_05_Verkaufsformate_d.pdf http://www.sport-fachhandel.com/D/A/CH/Dosenbach-Ochsner-holt-sich-Beach-Mountain-Gesch%C3%A4fte.html Germany http://www.textilwirtschaft.de/business/pointofsale/laeden/show-Closed-by-14-oz-Berlin_1236.html?currPage=3 http://deal-magazin.com/index.php?cont=news&news=16720 http://www.deal-magazin.com/index.php?cont=news&news=14625 http://www.watchtime.net/nachrichten/hublot-eigene-boutique-am-kurfurstendamm/ http://www.sportswearnet.com/businessnews/pages/protected/7-FOR-ALL-MANKIND-OPENS-SECOND-STORE-IN-BERLIN_4298.html http://www.abendblatt.de/hamburg/article2023168/Apple-eroeffnet-am-Sonnabend-neuen-Laden-am-Jungfernstieg.html http://www.stern.de/wirtschaft/news/eroeffnung-in-hamburg-groesster-apple-store-der-republik-1728865.html http://www.therandomnoise.com/thefashion/shop-eroffnung-in-berlin-ellesse/ http://www.rp-online.de/region-duesseldorf/duesseldorf/nachrichten/primark-oeffnet-an-der-schadowstrasse-1.2526346 http://www.rp-online.de/region-duesseldorf/duesseldorf/nachrichten/breuninger-zieht-in-den-koe-bogen-1.2140689 http://www.luehrmann.de/fileadmin/content/PDFs/citynews/2011/41_stuttgart_april_2011.pdf http://www.colliers-bk.de/de/research/marktberichte.html?area=5&sm_filter=Filtern&file=tl_files/File_ research/research_de/STG_EZH-Marktbericht_2010-2011_final.pdf http://www.joneslanglasalle.de/Germany/DE-DE/Pages/Research_RetailMarketProfiles.aspx http://www.ecostra.de/studien_und_marktberichte/ http://www.ecostra.de/presse/immobilienzeitung_2011-11-10.pdf http://www.stuttgarter-nachrichten.de/inhalt.stuttgart-21-ece-auf-parkplatzsuche-am-bahnhof.ce152ccd-3cd3-4c23-8e7a-8f6ac8fbd33e.html http://www.immobilien-zeitung.de/1000005853/stuttgart-breuninger-baut-quartier-am-karlsplatz-allein Austria http://www.peek-und-cloppenburg.de/en/news/latest-news/detail/article/peek-cloppenburg-opens-a-new-state-of-the-art-logistics-centre-in-reinbek/ http://www.flughafen-graz.at/home/presselounge/Buechershop-am-Flughafen-gelandet.de.php http://www.flughafen-graz.at/home/presse_news/news/Shop-News---WestGem-opening.php http://www.ses-european.com/fileadmin/user_upload/E_Press-release_Hollister_Co._to_Open_First_Stores_in_Austria.pdf http://www.viereck.at/no_cache/en/news/article/neueroeffnung-mcdonalds-jakominiplatz-graz.html http://www.facebook.com/events/105616459519862/ http://www.presse-artikel.org/2011/1-euro-discounter-tedi-expandiert-nach-oesterreich-und-eroeffnet-erste-filiale-in-graz-45293/ http://www.petcom.at/index/unternehmen/zoofachhandel-oesterreich/fressnapf/Fressnapf-Fachmarkt-Graz.html http://www.swarovski-crystallized.com/world/stores/innsbruck/ Paris http://www.hammerson.com/phoenix.zhtml?c=133289&p=prop-pd-54-60-rue-du-Faubourg-Saint-Honore http://myworldinabag.blogspot.com/2011/11/flash-news-prada-colpisce-la-couture.html http://www.meilleursagents.com/prix-immobilier/m2/rue-du-faubourg-saint-honore-2674/6/ http://www.watchtime.net/nachrichten/hublot-boutique-eroffnung/ http://www.worldtempus.com/en/news/top-news/detail/article/1319842405-jaeger-lecoultre-new-boutique-on-place-vendome-for-2012/ http://fr.fashionmag.com/news-121726-Louis-Vuitton-place-Vendomehttp://www.ft.com/intl/cms/s/0/94ed5e56-0946-11e1-8e86-00144feabdc0.html http://www.styleranking.de/kolumnen/paris-blog/moynat-ein-neuer-geniestreich-von-bernard-arnault-eine-alte-koffermarke-macht-hermes-konkurrenz

locationgroup research | Retail Market Study 2012

495

London http://business.highbeam.com/410162/article-1G1-235407618/bond-street-chanel-no-1-luxury-brand-pays-premium-secure http://www.propertyeu.info/index-newsletter/lease-premiums-soar-in-london-as-retailers-jostle-for-space/ http://www.vogue.it/en/shopping/opening/2011/11/etro-opens-in-london http://costarretail.wordpress.com/2011/07/15/will-cartier-sparkle-in-old-bond-street-sale/ http://www.bloomberg.com/news/2011-04-12/london-s-west-end-rents-surge-as-retailers-seek-european-growth.html http://www.vogue.de/mode/accessoires/schmuck-schmuckdesignerinnen/schmuck-solange-azagury-partridge http://www.keylens.de/uploads/media/02_Februar_Online_FTD_Die_edlen_Absichten_der_Milliardaere_kein_Printrecht.pdf http://www.vogue.co.uk/spy/celebrity-photos/2011/01/26/tory-burch-shop-opening-london http://cheriecity.co.uk/2010/12/09/mulberry-new-bond-street-flagship-store-opening http://www.retail-week.com/property/victorias-secret-confirms-first-uk-store-on-new-bond-street/5014352.article http://www.retail-week.com/sectors/fashion/in-pictures-forever-21-oxford-street-flagship-opens/5027595.article http://www.cushwake.com/ukoffices/documents/CapitalWatch_Apr11.pdf http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/7957967/Spanish-retailer-sets-new-record-for-Oxford-Street.html http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8536516/Superdry-in-12m-Austin-Reed-deal.html http://www.retail-week.com/stores/in-pictures-superdry-flagship-store-regent-street/5032157.article http://rwkb.retail-week.com/CompanyOverview.aspx?Company=204&WT.ac=rwkb-pi-links http://www.retail-week.com/property/hollister-signs-for-national-geographic-store-on-regent-street/5025435.article http://www.supergroup.co.uk/investors/rns-feed/rnsnews/10896033 http://www.colliers.com/Markets/MAPIC/content/Great_Britain_Retail_Autumn_2011.pdf http://www.londonlovesbusiness.com/commentanalysis/destination-london-for-brands-flagship-stores/596.article BeNeLux http://www.retaildetail.eu/nl/eur-europe/eur-food/item/12074-disney-store-antwerp-opened-magically http://www.bewora.be/bedrijfsnieuws/caluwe_persbericht20-10-2011.pdf http://denimmag.wordpress.com/2011/04/26/fred-perry-opent-eerste-belgische-winkel/ http://www.textilia.nl/nieuws/algemeen/nid5523-acne-opent-winkel-in-antwerpen.html http://www.voguemoment.com/2011/04/event-steve-madden-in-antwerpen.html http://www.cgtopia.eu/computer-graphics/first-disney-store-of-belgium-in-antwerp http://www.fusion-consulting.com http://hypebeast.com/2011/04/een-amsterdam-store-opening/ http://www.optionsamsterdam.com/blog/options-new-contemporary-department-store-in-amsterdam-opening-3-december-2011 „http://push.ca/blogs/meadows_sk/archive/2011/09/27/etnies-launches-new-retail-store-in-amsterdam.aspx http://etnies.com/blog/2011/9/27/etnies-amsterdam-store-opening/?region=&region_save=Confirm%21“ http://www.youtube.com/watch?v=dwFGXViXhK8 http://superfuture.com/supernews/amsterdam-cos-store-opening http://www.21stcenturyvillage.com/roberto-botticelli.html Milan, Rome http://milano.blogosfere.it/2011/11/apple-store-milano-prada-batte-il-colosso-per-un-posto-in-galleria-vittorio-emanuele-ii.html http://ch.advfn.com/nyse/StockNews.asp?stocknews=MCD&article=50230921 http://www.gapinc.com/content/gapinc/html/media/pressrelease/2010/med_pr_MilanOpenings11192010.html http://www.pambianconews.com/henry-cottons-apre-il-primo-flagship-a-milano/ http://www.pambianconews.com/tombolini-fa-breccia-nel-quadrilatero/ http://vfno.vogueit/en/milan/special-initiatives/2011/08/paul-and-shark-and-vfno http://www.pambianconews.com/gucci-riapre-in-montenapoleone-con-la-gucci-immersive-retail-experience/ http://www.pambianconews.com/ballin-inaugura-il-secondo-monomarca-milanese/ http://www.pambianconews.com/i-piumini-di-duvetica-trovano-casa-a-milano/ http://www.pambianconews.com/kiton-inaugura-stasera-a-milano-e-presenta-la-linea-donna/ http://www.pambianconews.com/primo-monomarca-per-tavecchi-a-milano/ http://www.pambianconews.com/virginia-preo-porta-il-suo-cashmere-a-milano/ http://www.pambianconews.com/brunello-cucinelli-nuova-location-a-milano/ http://www.pambianconews.com/giro-del-mondo-di-opening-per-brunello-cucinelli/ http://milano.blogosfere.it/2011/11/apple-store-milano-prada-batte-il-colosso-per-un-posto-in-galleria-vittorio-emanuele-ii.html http://www.pambianconews.com/new-opening-romano-per-enzo-mantovani/ http://www.pambianconews.com/havaianas-sceglie-roma-per-il-suo-primo-store-italiano/ http://www.pambianconews.com/Nann-sceglie-Roma-per-il-secondo-store/ http://www.pambianconews.com/nuovo-flagship-a-roma-per-fossil/ Africa http://www.pareto.co.za/news/23/72/The-new-expansion-at-Sandton-City-to-open-on-10-November-2011 http://www.cpp-luxury.com/en/louis-vuitton-to-open-first-flagship-store-in-morocco-this-year_1031.html http://www.topmorocco.com/en/news/post/352/starbucks-to-open-stores-at-morocco-mall/ http://www.fashionfromspain.com/icex/cda/controller/pageGen/0,3346,1549487_5857712_5857556_4533514,00.html http://www.gadling.com/2011/11/18/galeries-lafayette-in-morocco-receives-first-guinness-world-reco/ http://www.pambianconews.com/elisabetta-franchi-apre-a-casablanca/ http://www.bizcommunity.com/Article/196/182/67957.html http://www.fashionfromspain.com/icex/cda/controller/pageGen/0,3346,1549487_5857712_5857556_4535972,00.html

496

locationgroup research | Retail Market Study 2012

http://www.honestchocolate.co.za/news-shop-opening.html http://www.bizcommunity.com/Article/196/182/57863.html http://johannesburg.olx.co.za/new-bed-shop-open-in-weltevreden-park-west-rand-iid-292946816 http://www.lomography.com/magazine/events/2011/06/01/lomography-embassy-store-johannesburg-grand-opening-party http://www.ferrari.com/English/about_ferrari/Corporate/Pages/100608_cor_new_ferrari_store_johannesburg.aspx http://10and5.com/2010/03/09/new-shop-opening-in-jhb/ (nice pic) http://www.visi.co.za/content/article/798/new-hq-for-liam-mooney http://blog.sarahpacini.com/?p=128 http://cassiuseyewear.com/blog/2011/10/cassius-eyewear-coming-to-loom-johannesburg.html http://www.joburgsdarling.co.za/post.aspx?id=101 America http://pulse2.com/2009/06/04/apple-store-on-fifth-ave-in-new-york-earns-440-million-in-sales/ http://www.execdigital.com/cars_toys/exec-toys/apple-s-highest-revenue-retail-store-america-holds-special-allure http://www.bloomberg.com/news/2011-03-04/zara-parent-inditex-pays-324-million-for-fifth-avenue-store-in-manhattan.html http://therealdeal.com/blog/2011/04/12/joe-sitt-predicts-takashimaya-will-top-swatch-rent-at-666-fifth/ http://www.bloomberg.com/news/2010-04-19/uniqlo-s-fifth-avenue-lease-in-new-york-sets-price-record-for-retail-space.html http://www.observer.com/2011/11/ted-baker-to-open-fifth-avenue-flagship/ http://seekingalpha.com/article/312534-sl-green-realty-s-ceo-hosts-annual-2011-institutional-investor-conference-call-event-transcript http://www.wwd.com/retail-news/designer-luxury/brazils-luxury-boom-goes-on-3411267 http://modaspot.abril.com.br/news/asics-inaugura-primeira-loja-no-brasil http://www.pambianconews.com/prima-boutique-brasiliana-per-canali/ http://www.cpp-luxury.com/en/prada-opens-today-its-first-store-in-brazil--in-sao-paolo_1950.html http://www.bolsasdevalor.net/tods-balmain-no-cidade-jardim-ch-e-burberry-no-higienpolis/ http://2ladies.com.br/tag/tods/ http://www.valor.com.br/empresas/1069038/louis-vuitton-investe-no-brasil http://www.adorolingerie.com.br/2011/10/17/intimissimi-no-brasil-primeira-loja-aberta-no-shopping-morumbi-em-sao-paulo/ Middle East http://www.fashionfromspain.com/icex/cda/controller/pageGen/0,3346,1549487_5857710_5857556_4544379,00.html http://www.textileglobal.com/2011/11/giordano-opens-200th-store-in-middle-east.html http://www.abudhabiweek.ae/component/content/article/1-news/6883-reebok-opens-a-new-store-at-mushrif-mall http://www.ameinfo.com/276748.html http://www.altayer.com/BackEnd/.../Files/1262.doc http://www.colliers-me.com/Files/services/10.pdf Asia http://www.chinaretailnews.com/2011/12/16/5299-ikea-will-locate-asian-flagship-store-in-beijing/ http://www.retailinasia.com/article/retail/store-development/2011/10/starbucks-opens-its-500th-store-china http://www.todsgroup.com/system/document_ens/10/original/HOGAN_BEIJING_OPENING_-_NOVEMBER_2011_-_E.pdf http://fashionablespace.com/jaquet-droz-plan-to-open-new-outlet-stores-in-beijing.html http://www.highsnobiety.com/news/2011/08/30/a-p-c-opens-store-in-beijing/ http://maosuit.com/store-openings/versace-opens-new-beijing-flagship-store/ http://www.dsquared.com/html/news/latest/?id=20110420102358543 http://www.photoblog.com/doublezhu/2011/09/24/moncler-in-july-2011-in-beijing-sanlitun-north-to-open-new-stores-boutiques-temperament-to-create-a-rich-decorative-details.html http://www.fastretailing.com/eng/group/news/1110121720.html http://www.fashionillustrated.eu/en/topnews/ruco-line-opens-two-new-stores-in-tokyo http://www.vogue.it/en/shopping/opening/2011/11/miu-miu-opening-in-ginza http://www.sccij.jp/news/overview/detail/article/2011/09/01/swiss-retailers-open-three-flagship-stores-in-ginza/ http://www.wwd.com/fashion-news/fashion-scoops/bally-sees-growth-in-japan-opens-ginza-store-5093920 http://www.gapinc.com/content/gapinc/html/media/pressrelease/2011/med_pr_GapGinzaOpening.html http://www.robertocavalliblog.com/roberto-cavalli-to-open-first-japan-flagship-store/?lang=it http://www.vogue.it/en/shopping/opening/2011/11/michael-kors-opens-in-roppongi http://www.textilwirtschaft.de/news/schlagzeilen/pages/Escada-eroeffnet-in-Schanghai-und-Tokio_71849.html?a=3 http://www.surfline.com/surf-news/press-release/new-quiksilver-store-opens-in-grand-city-surabaya-mall-grand-opening-party-on-27-november_62365/ http://www.thejakartapost.com/news/2011/12/24/gunung-agung-open-smaller-shops.html http://www.centralparkjakarta.com/v2/promo.php?st=4&id=106 M&A http://www.welt.de/wirtschaft/article12726931/Louis-Vuitton-schmueckt-sich-mit-Bulgari.html http://www.welt.de/print/wams/wirtschaft/article13714305/Brioni-wird-franzoesisch.html http://www.rte.ie/news/2011/1220/nama.html

locationgroup research | Retail Market Study 2012

497

The outlook for 2012 .

Like last year, 2012 will undoubtedly be chock-full of thrills and spills. What everyone really wants to know, though, is how consumer spending will evolve against the backdrop of the euro crisis.

Will demand for top-drawer locations, particularly on the part of international retailers, remain high? Will the search for such locations on the part of Abercrombie & Fitch, Forever 21, H&M, and Inditex continue apace? The determining factor for many trends is likely to be whether or not the euro can be saved. Retailers, at least in Germany, are fairly optimistic. The general view appears to be that high employment will spur consumer spending, provided that sovereign debt is kept within reasonable bounds.

The prospects of a recession in Europe, sluggish growth in the US, and a steep downturn in China make the outlook for 2012 seem anything but rosy. In 2012, Wall Street will be facing the same familiar challenges. The sovereign-debt crisis in Europe, political unrest in many countries, and the declining creditworthiness of large industrial nations provoked considerable drama on the world’s stock markets this year. This situation is very unlikely to change in the coming year, as the realisation dawns that the world economy is in danger.

my. For example, if in the coming year Italy and Spain continue paying extremely high interest rates to obtain fresh capital, the crisis in Europe may very well deepen.

But despite all these dark clouds, expansion in the Asian and Latin American luxury goods sectors is still going strong, and LVMH, the world’s largest luxury goods conglomerate, is a prime example of this. Last year, the group generated around 6.9 billion euros (USD 9.7 billion) in sales in Asia, where it operates more than 800 stores, compared with sales of 4.6 billion euros and 570 stores in the US. Many of the Western countries are struggling to revive weak economies, Paris, Milan, London and New York are no longer the only dominant centres of global luxury spending. Increasingly, the activity is shifting eastward, to booming cities like Seoul, Shanghai, Mumbai, and Hong Kong, whose glitzy malls rival Bond Street, the Champs Élysées, or Fifth Avenue in terms of high-end shopping opportunities.

We here at Location Group hope that this year, as in the past, we have provided you with valuable insight into the retail sector and have perhaps planted the seed for an exciting new project or two.

Feel free to contact us if you require any further information.

The ever-present credit crunch, the sovereign-debt problem, lack of competitiveness, and plummeting savings all point to a serious downturn. The euro crisis could be a major threat to the US econo-

Team Location Group

498

locationgroup research | Retail Market Study 2012