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Friday 21 November 2014
www.mapic.com
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MAPIC AWARDS 2014
The winners from last night’s gala awards ceremony Page 5
COUNTRY OF HONOUR
The US will be next year’s MAPIC Country Of Honour Page 15
RETAIL EXPANSION
20 years back — 20 years forward Retailers announce growth plans across global markets Page 13
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CONTENTS AWARDS 5 MAPIC AWARDS 2014 All the winners from last night’s gala celebration
RETAILERS LIST
INSIDE
NEWS
PROGRAMME OF PROGRAMME OF CONFERENCES & EVENTS CONFERENCES & EVENTS
8 News MAPIC 2014 in review • News from Day 2 in Cannes
FRIDAY 21 21 NOVEMBER FRIDAY NOVEMBER
FEATURES
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21 Shopping on the move MAPIC News looks at the growing presence of retail in travel hubs
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MAPIC Final Press Conference
MAPIC Final Press Conference
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22 The US: appearances can be deceptive America’s retail mix embraces overseas entrants
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MAPIC NETWORKING & MATCHMAKING EVENTS
The official MAPIC daily newspaper Friday 21 November 2014
Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Mark Faithfull News Editor Graham Parker Sub Editor Julian Newby Proof Reader Debbie Lincoln Reporters Ben Cooper, LIz Morrell, John Ryan Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designer Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographer Michel Johner Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Manager Amrane Lamiri ADVERTISING CONTACT Daniela Jakovljevic daniela.jakovljevic@reedmidem.com Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNEBILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2014, Reed MIDEM Market Publications. Publication registered 4th quarter 2014.
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AWARDS
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Official partner
awards 2014
The winners for 2014 are... Winners of this year’s MAPIC Awards took to the stage last night in front of a packed audience at the Grand Hyatt Cannes Hotel Martinez. Awards were given in eight categories, plus two special jury awards and two MAPIC 20th anniversary Special Tributes
BEST FASHION & FOOTWEAR RETAIL CONCEPT
BEST FOOD & BEVERAGE RETAIL CONCEPT
UNIQLO
VAPIANO
BEST NEW RETAIL CONCEPT
BEST RETAIL GLOBAL EXPANSION
CAUSSES
KIKO MILANO
Japan
Germany
Italy
France
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AWARDS BEST FACTORY OUTLET CENTRE MOST INNOVATIVE SHOPPING CENTRE
FASHION OUTLETS OF CHICAGO
Rosemont, IL, United States
Submitted by RTKL Associates Inc.
QWARTZ
Villeneuve-la-Garenne, France Submitted by Altarea Cogedim
BEST RETAIL URBAN PROJECT BEST REFURBISHED SHOPPING CENTRE
LES TERRASSES DU PORT
Marseille, France
Submitted by Hammerson
ARMADA DEVELOPMENT PROJECT
Ankara, Turkey
Submitted by A Tasarim Mimarlik - Ali Osman Ozturk
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SPECIAL JURY AWARD PROJECT SPECIAL JURY AWARD RETAILER
BEAUGRENELLE
Paris, France
Submitted by Apsys
NEW LOOK
United Kingdom
MAPIC 20TH ANNIVERSARY SPECIAL TRIBUTE MAPIC 20TH ANNIVERSARY SPECIAL TRIBUTE TO CHINA
FREDERIC LALOUM
General manager leasing & member of the executive board Altarea Commerce, France
WANDA GROUP
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NEWS Events to mark the 20w anniversary began with the Opening Night Party
Celebrating 20 years of MAPIC Over the next four pages, the MAPIC News team considers some of the key themes from MAPIC 2014
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APIC 2014 celebrated turning 20 by taking a big step into the future, officially launching Retail Real Estate Market, powered by MAPIC, on the opening morning of the Cannes show. The presentation for the upcoming June event in Shanghai was made by the head of real estate division at Reed MIDEM, Filippo Rean, and MAPIC director Nathalie Depetro, alongside China Chainstore and Franchise Association vice-secretary general Lucy Wu, and was just one of the Chinesethemed events to take place over the three days of the show. Also in the spotlight was the US, which was confirmed as next year’s MAPIC Country Of Honour and to which a number
of special events were dedicated, including a breakfast conference in the Majestic Hotel and several key conference sessions within the Palais des Festivals. Once again the changing face of retail was also in evidence, with stands, conferences and networking events dedicated to retailtainment, edutainment, food and beverage offers and leisure activities, reflecting the evolving nature of retail-led destinations. To this too was added a variety of innovation and technology-focused events, starting with the Digital Summit, and which spilled over from the MAPIC Innovation Forum to be reflected on stands throughout the Palais des Festivals, such as French developer Klepierre’s twin gamification trials. Mixing retail, leisure and cul-
MAPIC at 20: A landmark for the Cannes event
tural elements was another key theme, with Unibail-Rodamco, Westfield, Uplace, Place Vendome and Battersea Power Station among those promoting all-encompassing schemes, as the next generation of mega-projects was introduced to the MAPIC audience. Meanwhile, specialist categories such as designer outlets were once again to the fore, with a raft of new schemes showcased over the three-day event. There were reminders of the landmark anniversary everywhere, from the 20-shaped statue outside the Palais des Festivals to the set of stars marking the pioneers who had attended every year on the red carpet. On Thursday night, the MAPIC Awards included MAPIC 20 th Anniversary Special Tributes to
China — won by Wanda Group — and to Frederic Laloum of Alterea Commerce. These were followed by a fireworks display over the Mediterranean. Two of MAPIC’s regular supporters, Altarea Cogedim and TriGranit, also celebrated their own 20th anniversaries and held celebratory events over the course of the three days in Cannes. A number of the conference sessions also focused on the enormous strides taken by retailers and retail destinations over the past 20 years and speculated on the scale of change anticipated over the coming 20 years. Topics included leisure, entertainment, food and beverage, technology and innovation, plus important geographies for MAPIC such as China and 2015 Country Of Honour the US.
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HIGHLIGHTS
This year’s MAPIC celebrated 20 years, proving once again that the Cannes event is the pivotal meeting place for the global retail property market Brisk business in the Palais
Ready and waiting...
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The changing face of China MAPIC turned its attentions to China with the announcement of RREM, powered by MAPIC, in Shanghai 2015
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HE CHINESE market is rich with opportunities for international retailers and retail property developers as rapid economic growth continues and an increasingly consumerist culture emerges. A host of Chinese developers and retailers were at MAPIC this year
significant potential for overseas brands. “The way Chinese people live is changing,” he said. Wanda is currently overseeing a huge pipeline in China, with 50 mixed-use Wanda Plaza sites under construction. The developer and landlord currently manages 85 schemes throughout China and will have reached over 100 before 2014 is through.
to showcase the many development projects under way. Speaking at a session aimed at identifying key opportunities for international retailers, Chinese developer Wanda’s deputy general manager for brand development Jia Hao said a growing urban middle class with increasing spending power was presenting
China’s phenomenal shoppingcentre development pipeline is also attracting major international names, including Italian real
Wanda Plaza in Xishan, Kunming
estate consultancy Larry Smith, which is overseeing the leasing on the Baia Blu d’Oriente development in Chongqing. Ealier in the week CBRE China senior director for retail services Hsiang-Yun Chu said that while growth in the country was significant, it was not uniform. He said that fast fashion was a key sector for growth as international retailers entered the market at a rapid pace driven by an increasing appetite from Chinese consumers. Another sector of retail showing unprecedented opportunities according to TIAA Henderson director of development for China Joe McGrath, is the designer outlet centre. Speaking at a panel session, McGrath said: “It’s effectively a new form of shopping in China; in the past this has been seen as a foreign, European style of shopping. It’s been an undiscovered investment opportunity, but now designer outlets are finally being recognised. Competition is heating up now and it’s starting to mature as a sector in China.” The increasing level of crossborder activity to and from China has lead MAPIC organiser Reed MIDEM to announce the upcoming inaugural Chinese event, Retail Real Estate Market, powered by MAPIC (RREM) which will take place in Shanghai next June.
That’s retailtainment! Networking in the sun
Speed-matching
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NEWS Retailers in expansive mood Some 2,400 retailers from 500 companies were in Cannes as some of the world’s biggest brands rubbed shoulders with ambitious startups
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ETAILERS were out in force at M A P I C 2 014 , proving that in an omnichannel world, finding stores with the right location and configuration is more important than ever. Among the retail formats on show was German electronics giant Media Saturn, which will shor tly celebrate its 1,000th store opening. COO Joachim Roesges said physical stores remained integral to the group’s strateg y. “ Five ye a r s a g o people said the store was dead, now t h e y s ay you have to
Media Saturn’s Joachim Roesges
Business...
have stores,” he said. With this in mind, Media Saturn was using MAPIC to find new store locations, especially in Russia and Turkey. At the other end of the size range Lumas, the German art gallery chain, has 35 galleries across Germany and the world. “We’re at MAPIC for two reasons,” CEO Bernd Stadlwieser said. “There are still some markets for us to reach and we’re also here to educate the market about our business model.” The average sale is €600 to €700 but the company sells items for as little as €90 to encourage spontaneous purchases. “However you can buy a Damian Hurst for €20,000,” Stadlwieser said. “People are spending more and more on their homes and we are benefitting from that. Riding this wave, Lumas plans to have 80 to 100 galleries worldwide by 2018 with a mix of franchised and company stores. Tiffosi, the Portuguese denim retailer, has seen double-digit sales growth in each of the past five years following its acquisition by VNC Group. And it intends
to keep up the pace with an ambitious international expansion programme. Expansion and business development manager Pedro Aguiar said Tiffosi was already present in 21 markets, with monobrand stores in Portugal, Spain, Saudi Arabia and Qatar and wholesale accounts in another 17 countries. “Spain and France are the current targets for monobrand stores,” he said, “although we’re looking at franchises in all other markets.” Food and beverage formats are among the most expansionminded at the moment, none more so than Tutti Frutti Frozen Yogurt, which is one of the fastest-growing retailers in the world. Launched in California in 2008 it now has 850 stores in 48 countries according to European director Tom Strauss. Strauss believes the secret of its ballistic growth has been the experience it offers. “We’re the only 100% self-service system in the frozen yogurt business — we make the whole process fun. Children love to make their own mixtures and our customers leave the store happy,” he said.
and more business
business...
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Shopping must be fun
Simplify, simplify, simplify
Retailtainment is a key buzzword of MAPIC 2014 as professionals agree on the importance of entertainment in the retail environment
In three repeated words, this was the overarching theme at The Innovation Forum at MAPIC this year
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ITH leisure increasingly being used as a driver to extend dwell time, frequency of visit and create the special moments that keep individual and family shoppers coming back time and time again developers were eager to see the latest great retailtainment ideas on offer. This year’s MAPIC featured a retailtainment arena, which brought numerous players in this space – from soft play company Playtime to indoor skydiving specialist Aerodium. Using leisure to truly differentiate the retail offer is increasingly becoming key and the more unusual the better. The Leisureway advises developers on their leisure offers from the outset rather than adding on ideas at the end, tailoring activities to individual centres. Children’s cities including
KidZania and Kidburg, where youngsters get to role-play in professions within a children’s city environment, attracted particular attention in Cannes. A.I.Solve launched a new new augmented reality tool, Interactive Environs, at MAPIC, which allows developers and shoppingcentre owners to mount tablets within strategic locations and overlay digital content such as games or advertising. “People have loved it because it allows customers to interact with store windows or you can use it to engage with children by using games on it,” said Devi Kolli, business director for A.I.Solve. Robin van der Want, project advisor at retailtainment themers Jora Vision said: “You must know which target audiences you want to reach and create good quality leisure with a good selection of experiences and attractions.”
The MAPIC Innovation Forum
A.I.Solve’s MAPIC-launched Interactive Environs looks to engage children and older customers alike while children’s city Kidburg offers entertainment and education while
Schemes on show
ACROSS almost every presentation that took place at MAPIC there was the sense that in stores and malls technology has occasionally been in danger of running ahead of itself and that consumers may have had enough of solutions in search of problems. Pamela Wolf, co-founder of fledgling consultancy myluxuryworld.com succinctly put the case for simplification and making technology your friend: “How do you shop today and who is your shopping companion? It used to be your favourite magazine, your friends, your to-do list. Now it’s your smartphone.” Given that by the end of this year 25% of the world’s population will have smartphones Wolf said that shoppers today expect their phones to act as a means of communication, a wallet, an adviser and friend, among other things. “What
Business face-to-face
people want is to have the services that they are offered simplified because the online world is complex.” Mathieu Grenelle from French advertising giant Publicis gave a talk on how retailers and mall owners can make more of store or shopping centre cards and how they can engender real loyalty. Citing retailers such as Tesco, Fnac and E.Leclerc, Grenelle said that putting many elements into a single transactional card gives shoppers a reason to favour a particular brand in preference to another. US health retailer Walgreens offers a card that allows users to accrue loyalty points which can then be redeemed against health check-ups — on-brand, as well as desirable. Zurich-based eLocations consultancy said its underlying objective is to make things easier, more straightforward and quicker.
20 years and counting...
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NEWS KOTKA OLD PORT OFFERS MORE MILLIGAN has joined the team developing Kotka Old Port, Finland’s first waterfront designer outlet, strategically located within a larger mixed-use urban development between Helsinki and St Petersburg. Kotka Old Port will contain over 200 boutiques providing an aspirational mix of fashion, sportswear and lifestyle brands. And it will be much more than a retail destination, boasting a marina, ferry and cruise terminal, hotels, restaurants, a casino and apartments — and the existing National Maritime Museum. Milligan expects to get planning consent by May 2015 with work starting a few weeks later. DEA Real Estate Advisor has been brought in to attract designer brands looking for a premium destination to access the lucrative Russian market, as well as the Finnish residents.
SWISS RETAIL BREAKS THE BILLION BARRIER ANNUAL retail sales in Switzerland have broken through the CHF1bn (€840m) barrier and are continuing to grow according to Dr Roman Bolliger of Swiss Circle. “The Swiss economy is very healthy and consists of customers with solid purchasing power,” he said. Global retailers are increasingly attracted by these strong fundamentals, but there is a lack of new retail development there. “To enter the Swiss market you have to work with local partners,” said Dr Bolliger. “Swiss Circle is here to open doors to the Swiss market.”
The Swiss Circle team is at MAPIC to open doors
CBRE’s Beccar is confident for the future despite coming ‘headwinds’
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BRE Global Investors remains positive about European retail real estate opportunities and particularly markets such as Sweden and Germany in northwest Europe, and the Polish market. Head of retail EMEA Florencio Beccar said that the company has spent the past two years reorganising its business to create centralised roles for the retail division, to make its strategy more integrated. Beccar heads up the team, with a newly appointed head of asset management soon to be joined by a head of leasing. “We have become the number one by size in Europe and we want to act more like an operator,” he said. The company will continue to invest in a range of property types, mindful of the possible impact of e-commerce on future prospects. “All of our acquisitions involve an e-risk component, where we look at the possible impact of online shopping on income and vacancies,” he said. “However, we will continue to invest in projects wherever we see value, from flagship schemes through to neighbourhood malls.” Beccar said he remained optimistic about European investment opportunities as a whole but conceded that some Asian and US investors were concerned about instability because of the current Ukrainian conflict, which may delay some of their investment plans. He said: “We are confident about next year but there are some headwinds, which may make 2015 a little challenging. However, we feel that with active as-
CBRE Global Investors head of retail EMEA, Florencio Beccar
set management and acquisition under a centralised structure we are in a great position to manage our tenant mix and to create some good growth.”
Turkey has ‘opened up to the world’ TURKEY’s deputy finance minister has highlighted the opportunities the country offers to foreign investors following a period of major reform and economic growth. Speaking at a keynote session on Thursday morning, Abdullah Erdem Cantimur said that his government had “opened up Turkey to the world” with structural reform and economic stimulation programs. Highlighting Turkey’s strong economic growth and healthy employment rates, Cantimur said: “Turkey has become a success story. There is a lot of capital investment happening and lots of entrepreneurs in the country; we want to open this up to the world and we want to find investors to benefit from our experience.” Turkey’s GDP rose by 3.5 times between 2002 and 2014, attracting a wave of foreign companies into the market. Cantimur said that in 2002 there were 5,000 international companies operating in the Turkey, a figure that has risen to 40,000 in 2014.
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Turkey’s deputy finance minister Abdullah Erdem Cantimur
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NEWS Patience will unlock China’s potential
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ETAILERS need to “carefully study” the Chinese market before entering, a leading retail property specialist has said. Speaking at a session on retail opportunities in China yesterday, Luca Bastagli Ferrari, chief executive of Arcoretail, which is active in China, said that the market was rich with potential for retailers and retail property developers, but warned that businesses should expect progress to take longer than in the West. Ferrari said: “You really have to
carefully study the market and understand it for what it is; it’s innovative and it’s developing fast. It’s changing every day. We have had to invest a lot of money into China”. He said that choosing the right partner before opening and expanding was a crucial element of a retailer’s preparation, and that “people have gone with the wrong one and ended up closing lots of stores”. Dairy Queen vice-president for international development Amir Kremer said that patience had
On the Growth Opportunities For International Retailers panel: Getchee’s James Grigsby (left); Arcoretail’s Luca Bastagli Ferrari; Wanda’s Jia Hao; Dairy Queen’s Amir Kremer; TIAA Henderson Real Estate’s Joe McGrath, Larry Smith Italy/Asia’s Christian Recalcati; and China Chain Store and Franchise Association’s Lucy Wu
been the key to the company’s success in China. Dairy Queen, which first arrived in China 20 years ago, is expanding at a rate
of 100 stores a year. He said: “In the West we tend to try to conquer the world in one day, but you can’t do that in China”.
Mey gathers speed in Cannes Esse looks beyond Turkey TURKISH homeware retailer Esse has grown from a standing start in 2002 to more than 120 stores in 35 cities across Turkey, generating annual sales of $90m. And general manager Semih Seftali believes this is only the beginning. “We believe we can go to 200 stores in Turkey,” he said. “And we also believe we can expand across Europe with our concept.” Targeting France, Spain,
Mey’s foundationwear
GERMAN fashion and foundationwear retailer Mey is at MAPIC for the first time and is on the hunt for new shop units. Sibylle Vollmer, head of retail, said: “We’d like to increase our speed of growth and we’d like to
go more international and to increase awareness of our brand.” Mey currently trades from 200 shop-in-shops, 15 standalones and four outlet-centre stores and is present in the Netherlands, Belgium, Austria, Germany and Sweden.
Germany, the UK and the Balkans, Seftali envisages 100 stores outside Turkey within five years. The format combines top brands with private label products to create affordable luxury, and following the trend towards fast fashion the range is refreshed every six months. “We’re looking at master franchises, franchises, joint ventures or subsidiaries,” said Seftali. “We’ll consider all options.”
Joe & The Juice targets growth
Eldorado expands across Russia ELDORADO, Russia’s largest In 2015 we plan to increase our electronics and domestic appli- expansion plan two-and-a-half ances retailer, runs some 700 times compared to this year, so stores in Russia includfor us it is extremely ing 250 franchise units important to be aware and is in Cannes to exof current trends and plore opportunities for retail property benchfurther store openings marks. in Russia. “The MAPIC exhibiChief executive Ondrej tion is certainly a key Frydrych said: “Eldoand landmark event in rado is continuing its the commercial real intensive development. Ondrej Frydrych estate market”.
The Joe & The Juice team: Thomas Evald, Rasmus Andersen, Kasper Borst and Haakon Eng
DANISH firm Joe & The Juice, the cocktail makers of the juice world, took to MAPIC to give everyone a taste of their fresh concept, which delivers both ambience and showmanship. The company has tasked agents HDH with expanding the brand from 80 stores to 250 by 2017 with the UK and Germany the main
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targets and a 15-store target for the US. “To create a fun, working environment and point of difference we do everything freshly made — from juice to coffee and sandwiches,” said Thomas Evald, retail director for Joe & The Juice. Stores, which include seating areas, will be located in shopping centres, high streets and transport hubs.
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NEWS MAXI EXPANDS ACROSS RUSSIA MAXI Development is growing its portfolio of Russian shopping and entertainment centres and it expects to own over 560,000 sq m by the end of 2016. December 2014 will see the completion of the 47,500 sq m Maxi Smolensk where lettings have been agreed with H&M, Inditex’s Pull & Bear and Bershka fascias and Pandora, with McDonalds and Subway leading the catering line-up. And currently under development are the 85,000 sq m Maxi Tula and the 55,050 sq m Maxi Archangelsk, which are both due for completion in 2015, and the 72,000 sq m Maxi Kirov which is scheduled to open in 2016.
NAVE DE VERO IS ‘VERY GOOD’ CORIO has been awarded a BREEAM sustainability rating of Very Good for its Nave de Vero development near Venice, Italy. Presenting the certificate at MAPIC, BREEAM director Gavin Dunn said: “This is a terrific achievement by the Corio team and a tribute to their commitment to sustainable retail space. Corio have worked hard to create a positive shopping experience, good for tenants and visitors and one which minimises the impact on the environment.” Gino Antonacci, COO of Corio Italia acknowledged the work by the project’s architects, London-based Design International, in developing a design and specifying materials to meet BREEAM’s demanding sustainability criteria. “We have worked hard throughout the centre to use sustainable materials and have asked our retailers to follow suit,” he said.
US has ‘seen more changes in two years than in the last 20’
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HAT do developers and retailers need to effect a seamless entree into the US? That was the question addressed at the US Breakfast at MAPIC yesterday, at which it was announced that the US will be MAPIC 2015’s Country Of Honour. Denny Gerdeman, chairman and co-founder of Cincinnati design consultancy Chute Gerdeman, put the challenge: “I’ve seen more changes in the last two years than in the last 20. The consumer is driving the bus.” Practically this means the rules are changing across the US. Alan Barocas, senior executive vicepresident, leasing at General Growth Properties noted: “We’re all grappling with how do we embrace e-commerce. The question for us is how do we establish the mall as a community focus?” One of the ways in which to realise this is a concentration on the mall and the urban high
street as purveyors of experience, according to Gerdeman, who noted US consumer shifts: “I think the millennials are bored. You see them all heading into the cities. These are more interesting spaces than the cookie-cutter spaces in the suburban malls.” Experience, omnichannel and store design were the key ele-
ments that the panel felt were prerequisites for success in the changing world of US retail. And there is life in old-style retail yet. Sam Polese, executive vice-president, leasing at Thor Equities, said: “Nobody is going to buy a $10,000 Gucci bag without touching it and feeling it, although this will happen 10 years from now.”
At the US Breakfast yesterday: Denny Gerdeman (left), Sam Polese, Alan Barocas, Pinkberry’s Ryan Patel and Vapiano Franchising International’s Mario C Bauer
Intu and Eurofund on target in Spain SPAIN’s retail market is ripe for more shopping-centre supply despite current challenging conditions and slow wage growth.
Eurofund director Ian Sandford said a lack of quality modern space in Spain’s centres is acting as a barrier to new entrants in
Intu’s Martin Breeden (left) and Cushman & Wakefield’s Justin Taylor with Ian Sandford and Nick Hodson from Eurofund
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the market and existing retailers looking to expand. He said: “It’s about offering the right product. New retailers are coming into the market looking for new modern space, and a lot of what’s in Spain now is not valid for the future. Existing developments sit between several categories and price points.” Eurofund has launched a joint venture with shopping centre developer Intu to develop a wave of new centres in Spain. The first of these, Intu Costa del Sol, will open in Malaga in 2018, followed by staggered openings in Valencia, Palma and Vigo. The centres, which will be built to around 90,000 sq m and include between 225 and 250 stores, will be leased by Cushman & Wakefield.
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Our pioneers say
“ Pas seulement un lieu de rencontres, mais aussi un moment de réflexion oú se dessinent les tendances de demain. ”*
“ MAPIC is the most important place to meet expansion managers and do real estate business. ”
“ C’est aussi grâce à ce moment fort d’échanges avec nos partenaires, les enseignes et les investisseurs, que nous avons pu mettre en lumière et faire grandir ensemble nos projets. ”**
“ Il est pour nous synonyme d’optimisme, de rencontres de qualité et d’ouverture sur le monde. ”***
*“ MAPIC is not only a place to meet other actors, but an important moment of reflection on the emerging trends of tomorrow. ” **“ It’s thanks to these moments of networking with partners, retailers and investors, that we have been able to shed light on and grow our projects. ” ***“ MAPIC is for us a synonym of optimism, high-level meetings and a gateway to the world. ”
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NEWS RIVIERA CENTRE OFFERS MOSCOW PANORAMA RUSSIAN developer Praktika Property Development and Management says its 100,000 sq m GLA riverside Moscow shopping centre Riviera should be 80-85% let by its opening in Q4 next year. The centre, which will comprise 300 stores, will offer panoramic views of both the city centre and the river from the third level of the Riviera which will include restaurants, a cinema, entertainment and childrens’ stores. Riviera, which will also include a substantial fashion-focused offer on the second floor, is currently 40% let. “There is no place in Moscow like this since it is unique that on one side is the city centre and the other the view of the river,” said Praktika CEO Bulat Shakirov. Riviera will also include two food hypermarkets — O’Key and Azbuka Vkusa — electronics retailer M. Video and the first Kidburg in Moscow.
Cities showcase new projects to draw retailers into the mix
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ITY consortiums are out in force at MAPIC using the show as a platform to attract retail investment to their areas. Julien Bacq, chief retail officer for regional trade agency Atrium Brussels, said his role was to help support investors from start to finish in understanding the po-
tential Brussels offered for retail and in particular, the opportunities from two developments currently under way. These include the 15,000 sq m The Mint in the city centre which is undergoing a full refurbishment and is due to open in 2016; and the Docks Bruxsel which will also open in 2016 and includes 40,000 sq m of retail and leisure with 70 retailers already signed. “The Brussels population is growing from 1.2 million now to 1.4 million in the next decade. It’s a lively city that offers many opportunities,” he said. Representing Ghent, Christophe Peeters, the deputy mayor responsible for finance and commerce, said the city was working on putting together a Business Improvement District (BID) for the city and would start test projects in January. “To compete with e-commerce and shopping malls outside of Ghent we want to manage the city centre as a large outdoor shopping centre where you get the historical monuments for free,” he said. From France, the Loire Valley
Christophe Peeters, deputy mayor responsible for finance and commerce in Ghent
and Brittany were showcasing three urban areas at the show — Nantes, Saint Nazaire and Rennes. “We want to promote these to attract retailers and investors,” said Richard Hamon, marketing and communications manager for Nantes Metropole Developpement, part of the Loire Bretagne consortium presenting at MAPIC.
Top spots command top dollar RETAILERS entering the US seeking good mall locations at knockdown prices may be disappointed in spite of 600 malls currently being closed across the country. Competition for the best
Praktika’s Bulat Shakirov
Julien Bacq, chief retail officer for Atrium Brussels
space remains. Speaking at the session Bridging The Atlantic – Growing Chains In North America, David Schulman, vice-president, real estate, Staples, said: “We know we are over-malled but we keep looking because sometimes malls that look old on the outside are still in prime locations.” He added: “For retailers coming to the US, vacancy rates have fallen in the last five years, so landlords are asking for higher rents.” He hinted that landlords are paying premiums to release space owing to this situation. The sentiment was echoed by Arthur Tropp, senior vice-president, real estate, at homewares retailer Williams Sonoma: “I would say
Williams Sonoma’s Arthur Tropp
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that you tend to get immersed in things and you can end up in places that you don’t want to be for a long time,” he said. Caveat Emptor seems the current maxim in US retail property.
Staples’ David Schulman
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NEWS Battersea development will bring the ‘best of the world’ to London
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ATTERSEA Power Station’s £8bn development in London, UK, will deliver the “extraordinary” in retail according to Joanne Skilton, head of leasing for the project. Skilton and her team have just completed a twoweek, 13-city international tour that has taken in everywhere from LA to Milan, Hong Kong and Dubai to showcase the Battersea project and scout for the very best retail offers. “We will create a whole new London quarter that will have the best of the world in it,” said Skilton who said bigger retailers will be pushed to deliver something unique at the scheme. “Having the best is really important but we also want bespoke too, to deliver a twist to everything we do,” she said.
The redevelopment will include 250 shops, cafes and restaurants across three phases. The first phase, Circus West, is due to open in 2016 and will see 40 retailers open in a shopping village-type environment. In phase two, The Power Station, more than 90 retail units across 340,000 sq ft are planned and in the final phase in 2020, more than 40 retail units will open — including some of the largest within the scheme, on London’s newest high street, The Electric Boulevard. The development is expected to attract more than 40 million visitors a year. The first tenants are expected to be announced early next year. Joanne Skilton wants to deliver the ‘extraordinary’at Battersea 128_THOR_N3_PIC
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PLACE VENDOME ON SHOW TO THE WORLD UNITED Developers is in Cannes to showcase Place Vendome, a new 800,000 sq m mixed-use scheme in Qatar, to the international market. The scheme is set to transform Lusail City. It will include 400 retail units, two luxury five-star hotels, serviced apartments and entertainment and leisure space. The $1.25bn scheme was announced earlier this year and is scheduled for completion towards the end of 2017. Based on classic Parisian design, it will also include cafes and restaurants for indoor and outdoor dining and 7,500 car parking spaces. Place Vendome was the official partner of last night’s MAPIC Party.
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FEATURE TRAVEL RETAIL
Shopping on the move Travel hubs – primarily airports and railway stations — are emerging as key retail destinations. Graham Parker reports
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RAVEL hubs can deliver some of the highest
sales densities in the world of retail, and high footfall levels are a given. But retailers need to be at the very top of their game in order to capture the attention of shoppers who are often in a hurry to be somewhere else. According to Peter Courtney, director at United Partners’ UK affiliate Lunson Mitchenall, “Airports and stations can deliver mesmerising numbers, but you need to bear in mind that not all of these people are shopping all of the time.” STIB is drawing retailers to the Brussels Metro
Landlords have woken up to this, and shop rents in transport hubs can be commensurately high. But Courtney believes there are additional benefits to retailers than just the cash passing through the till: “Airports and stations can be a fantastic brand showcase, exposing brands to a new — and often international — audience.” Across Europe major infrastructure projects are opening up new opportunities for retailers. In Brussels the transport authority, STIB, is actively looking to boost the retail presence across its city-wide estate. “An extensive station renovation programme will eventually afford nearly 4,000 sq m of retail space divided into 50 new enclosures ranging in size from 20 to 250 sq m,” says Bruno Leleu, manager of STIB’s retail development business. “STIB is looking to work with powerful, proactive brands to meet the specific needs of customers on the move,” he says. The Moscow metro has long been seen as an icon of urban transportation. But for all its efficiency and architectural splendour, it has lacked retail opportunities. This is being remedied with a series of retail-led developments at key transport nodes ringing the city. The biggest of these is the Salarievo Transport Hub, which will incorporate the metro, LRT lines and a bus station, which will serve more than 240,000 people daily. Above the transport hub will be a super-regional shopping and entertainment centre with a GLA of 150,000 sq m, developed by Essence Development and
designed by the Jerde Partnership. More than 350 stores will share the space with leisure and community facilities, music venues, galleries, bars and restaurants to capitalise on the scheme’s accessibility. Opening is scheduled for the second quarter of 2017. London’s £16bn (€20bn) Crossrail project is the biggest infrastructure investment currently on site anywhere in Europe, delivering 120km of new rail taking mainline trains right through the heart of the UK capital. According to Lunson Mitchenall’s Courtney, even though the line serves leading retail locations like Oxford Street, the new stations are emerging as retail destinations in their own right. For example at Canary Wharf a new mall, Jubilee Place, has been opened linking the existing retail to the new station. And the station itself will house 10,000 sq m of retail and catering, which is already 90% let a year ahead of opening. Equally airports across Europe are looking to upgrade their facilities, and they see retail as an integral part of the mix. In Lyon, Aeroports de Lyon is redeveloping Terminal 1 at Lyon Saint Exupery airport. Traffic already stands at 8.5 million passengers per year and this is growing at 5.7% year-on-year. As it emerges as a European hub for low-cost traffic Lyon is bidding to become the second largest gateway to France and traffic is expected to reach 15 million passengers by 2020. To meet the burgeoning demand Lyon Saint Exupery is continuing to develop its infrastructure with the construction of a vast new terminal. With a total capacity of 70,000 sq m it will include 10,000 sq m of shops and restaurants in a relaxing waiting area. Completion is scheduled for September 2016. Lyon Saint Exupery is continuing to develop its infrastructure
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Airports and stations can be a fantastic brand showcase Peter Courtney Lunson Mitchenall
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FEATURE
Top Shop, 5th Avenue, Manhattan
The US: appearances can be deceptive New mall openings may be at something of a historic low across North America but, as John Ryan reports, retail there is doing better than it might seem
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HE EUROPEAN autumn may have been warm
but the economic and retail climate looks increasingly chilly. Not so in North America where a combination of relative optimism, the bitter winter weather and a number of new shop openings has added up to a relatively buoyant outlook for many. And to compare the two continents again, European retail might best be characterised currently by the red pen, which has been applied liberally across merchandise designed for cooler climes and the discounters, in food and fashion, have been taking their toll on the mainstream midmarket operators. Meanwhile, in North America major cities including Chicago, New York and Los Angeles have shops that have been doing brisk business and the Chapter 11 misery that has been such a feature of retail in this arena over the past few years is substantially less in evidence. With New York’s Fifth Avenue seeing an influx of new stores, many of them European, it seems reasonable to assume that this looks a more positive market than the old country. Topshop opened its second store (and the second biggest in the Arcadia empire) in midtown Manhattan earlier this month, while H&M’s multi-floor flagship just across the street has been raising eyebrows and causing many to open their purses. On the development side, next year will see Westfield opening a mall in the newly inaugurated World Trade Center, while lower Manhattan will see the continued shaping of the Hudson Yards complex. Howard Saunders, owner and retail analyst at 22&5 in New York, says that what’s on view in New York puts regeneration programmes in many other cities to shame. Elsewhere, new schemes such as Triple Five’s American Dream project in New Jersey and the 1.6m sq ft Downtown Summerlin shopping centre in Las Vegas indicate that for developers there is life yet in a con-
tinent that has, for years, been written off by some as over-malled. That said, according to a forecast from Cushman & Wakefield the next couple years are set to see less new retail GLA coming onstream than at any point since the early 1970s. This does not however indicate a moribund panorama. There are, naturally, large shopping centres that have seen better days and the move by retailers towards trading from large shops in the largest cities is a welldocumented phenomenon. For developers and landlords this means trading up on existing space and substantial amounts of reconfiguration and remodelling of existing assets. As Alan Barocas, senior executive vice-president at General Growth Properties, says: “There is not a lot of new mall building going on. Everybody is looking at how they can improve their assets.” The fact that UK discount fashion retailer Primark has selected Boston as the location for its first North American store and that the emporium will be downtown, serves to illustrate that for many retailers the siren call of the city centre is proving hard to resist. The US is in better health than it has been for some time and the advent of new retailers and ways of retailing looks set to keep the best retailers, landlords and developers in clover for some time to come.
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COUNTRY OF HONOUR The US has been selected as Country Of Honour at MAPIC 2015 with a full programme of events to explore the potential for increased transatlantic business
H&M Fifth Avenue, Manhattan
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