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Friday 20 November 2015
www.mapic.com
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MAPIC AWARDS 2015
The MAPIC Awards were celebrated at a gala dinner in the Martinez hotel last night p.6
Mall of the Netherlands Meet us at Riviera 8, stand R8.E7
MAPIC mapic AWARDS
N° dossier : 20141493E Date : 07/08/2015 AC/DC validation : Client validation :
FOOD & BEVERAGE
A MAPIC conference session highlighted the growing importance of F&B p.20
MAPIC ITALY
The inaugural MAPIC Italy takes place at Superstudio Piu in Milan, 24-25 May 2016 p.4
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CONTENTS NEWS 6 MAPIC Awards; MAPIC 2015; Investment; US focus; Switzerland; Nigerian development; Klepierre pop-ups; Uplace; Spanish market; Kimco; Carrefour; Immochan; Eurovea; Zsar Outlet; and more...
FEATURE 25 Online convergence The online retailers taking physical shop space
MAPIC Awards trophy
Massimo Moretti, president of the Italian shopping centre association CNCC, and Reed MIDEM’s Filippo Rean introduced the inaugural MAPIC Italy 2016, to be held in Milan, May 24-25, to a packed audience in the Champs Elysees room of the Palais des Festivals yesterday. The session explored the reasons behind the launch and looked at opportunities for retailers, developers and investors in the resurgent Italian market.
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The official MAPIC daily newspaper Friday 20 November 2015
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 IN CANNES Laurianne Di Cecca 06 17 47 70 58 laurianne.dicecca@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 © 2015, Reed MIDEM Market Publications. Publication registered 4th quarter 2015.
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The Prague Outlet will be the first premium outlet in the Czech Republic. Entirely different concept from any other outlet centre in Central and Eastern Europe, with exclusive luxury and designer brand mix, and picturesque Prague architecture.
Visit us at stand no. P-1.E59 www.thepragueoutlet.com
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AWARDS
The winners for 2015 are...
This year’s winners received their MAPIC Awards during a ceremony at the Martinez hotel last night. Special honours included Personality Of The Year, Industry Lifetime Achievement Award and USA Country Of Honour Special Tribute
BEST FASHION & FOOTWEAR RETAIL CONCEPT
BEST FOOD & BEVERAGE RETAIL CONCEPT
PRIMARK
FIVE GUYS
Ireland
United States
BEST NEW RETAIL DESIGN CONCEPT
BEST RETAIL GLOBAL EXPANSION
Submitted by Dalziel & Pow
VAPIANO
TANYA HEATH
Germany
France
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BEST RETAIL DIGITAL STRATEGY BEST POP-UP SHOP
ECE FUTURE LABS
Germany
MAGNUM PLEASURE STORE
London, United Kingdom
BEST NEW SHOPPING CENTRE BEST REDEVELOPED SHOPPING CENTRE
MILANEO
Stuttgart, Germany
ALEGRO SETUBAL
Lisbon, Portugal
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AWARDS BEST OUTLET CENTRE
BEST RETAIL URBAN PROJECT
MCARTHURGLEN DESIGNER OUTLET VANCOUVER AIRPORT
MARKTHAL ROTTERDAM
Vancouver, Canada
Rotterdam, the Netherlands
SPECIAL JURY AWARD
PERSONALITY OF THE YEAR
LA RUE HOPSHOP
MELISSA GLIATTA
Paris, France
Thor Equities Executive Vice President
USA COUNTRY OF HONOUR SPECIAL TRIBUTE
INDUSTRY LIFETIME ACHIEVEMENT AWARD
TIME WARNER CENTER THE SHOPS AT COLUMBUS CIRCLE
MICHAEL P KERCHEVAL
New York, United States
ICSC President and CEO
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EMBRACE BRICKS THINK FLAMINGO We believe shopping centres are the crossroads of social experiences. They’re unique places where all aspects of life come together. Places to build relationships with customers. By driving excitement and inspiration we build customer preference, loyalty and conversion. That’s why we add something to the bricks. An unexpected idea that makes people remember that sensational Saturday at the mall forever. And yes, that may take a thousand flamingos.
Create the opportunity.
Visit us at MAPIC in Cannes 18-20 November 2015 | Stand R7.D1 www.multi.eu
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WE ARE THE CENTRE OF RETAIL Visit us at MAPIC #P-1.G2
Discover more here at http://conferences.cushwake.com
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NEWS
Retailers look to global opportunities Increasing retail numbers from a widening geographical spread underlined the search for growth markets and new territories this week
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APIC 2015 played host to more than 2,000 retailers and 470 brands attending for the first time, hungry for new trading opportunities and with developers and owners from around the world exhibiting their malls there was plenty of business to be done. MAPIC welcomed over 8,100 delegates this week, representing 73 countries as it continued to expand its international footprint with a host of major shopping centres on show. Underlining the diversity of countries represented, MAPIC welcomed Majid Al Futtaim (UAE), Place Vendome (Qatar), Iran Mall (Iran) South Energyx (Nigeria) and the giant Wanda Group (China). Major European companies included Klepierre (France), Unibail-Rodamco (France), Hammerson (UK), Westfield (UK), ECE Projektmanagement (Germany) and Sonae Sierra (Portugal/UK). With the US as this year’s Country Of Honour, the US presence in Cannes grew significantly with over 136 companies present, including
29 exhibitors. Among the US companies attending MAPIC were sponsor Thor Equities, Vornado Realty Trust, Simon Property and Kimco, with first-time appearances from Related Companies (promoting Hudson Yards), RFR Realty, SL Green and Archaio. Canadian teenage girls’ brand Garage, owned by Groupe Dynamite, was typical of the new expansionary mood among the retailers with plans to enter the European and Latin American markets. “The experience of MAPIC has been great and it’s a great place to showcase the brand and meet different people,” Anna Martini, president of Groupe Dynamite said. Shopping centres around the world are looking to increase and improve their food & beverage offers in order to provide a better experience for their customers and increase dwell times. This in turn is creating new opportunities for a range of brands including frozen yoghurt retailer Pinkberry. According to its vice-president, global development Ryan Patel, Europe is firmly on the agenda, and the
company is using the UK as a springboard for growth across the continent. But the flow of brands is not just coming from North America to Europe. Turkey is emerging as an important source of new retail formats and 14 brands looking to grow abroad attended MAPIC under the umbrella of BMD, the United Brands Association. Chairman Sami Kariyo said Turkish retailers were on target to operate 20,000 international stores by 2023. The well-documented challenges facing retailers might have been expected to dent retailers’ appetite for new stores. But Peter Gold, head of cross-border retail at CBRE, said: “Given the ongoing challenges retailers face from cost escalation, successful delivery of omnichannel and changes in consumer behaviour, it is increasingly important for them to have a strong network of stores to effectively represent their brand. So, for now at least, the hunt for new stores goes on.
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HIGHLIGHTS
Day two of MAPIC was packed with conference sessions, workshops and lots of business networking in the Palais The MAPIC app in action
Day two begins...
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MAPIC’s Country Of Honour still a land of opportunity
Confidence is back in the retail property market ALL THE signs from MAPIC
this year are that retail property investors are feeling a return to confidence. A number of major deals have been completed since last year’s MAPIC, doubtless boosted by the sight of sound post-crash investments starting to bear fruit. In Sweden the eagerly anticipated Mall of Scandinavia has finally opened its doors. The 100,000 sq m UnibailRodamco project represents a big step forward in the region after an investment of €640m by the company that is aiming to shake up Scandinavian retail property — and succeeding. Asian investors remain active, with major players including SCPG sending signals to the market that its appetite for fur-
US attendees were out in force at the US Pavilion as the country celebrated being MAPIC’s Country Of Honour
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HE US, MAPIC’s Country Of Honour, was out in force at MAPIC this week as American retailers, investors, developers and centre owners showcased the country’s potential. The message was that the market remained buoyant and full of opportunity for international retailers looking to the US. “We can provide the opportunity to be a one-stop-shop if you are looking to enter or expand in the US,” said David Jamieson, executive vice-president of shopping centre owner Kimco Realty. Mark Millman, president and CEO of Millman Search Group, said that his business could help retailers build the management teams they needed to enter a new market. “We can become their go-to partner in helping them to
set up management teams that will make their venture more successful,” he said. Delegates were introduced to everything from Kimco Realty’s 700-plus open air shopping centres to Empire Outlets, New York’s first outlet centre due to be opened in 2017 by Casandra Properties. While scale is important, Anjee Solanki, national director retail services US at Colliers International, said there was also a growing trend for a more localised feel to centres that meant that owners were being more considered about their choice of tenants. “Shopping centres are taking a step back and being thoughtful about the tenant mix and tailoring that to the community rather than making it cookie cutter,” she said.
ther acquisitions is still high. The company has seven sites under construction in China, with three due to open in the next two years alone. But Chinese investment is by no means limited to domestic opportunities. Chinese investor Fosun Properties has big plans for Europe, with UK joint venture partner Resolution Property, and is on the lookout for shopping centre and factory outlet acquisition opportunities throughout the continent. Meanwhile outlet operator McArthurGlen, pressing ahead with a major expansion programme of its presence in Europe, has acquired a majority stake in Factory Outlet Centre Ochtrup in north-west Germany.
SCPG’s Leo Ding (left) and Blackstone’s Lawrence Hutchings
The Retailtainment Area Behind the wheel with Youngo
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Conversations in the Palais
NEWS Mall of Switzerland to be ‘different from anything else’ in the country
GERMAN BANANA WILL CONTINUE TO THRIVE GERMANY is changing, according to Munich-based Brian Tucker, head of shopping centre investment capital markets for Cushman Wakefield. “It’s a country in flux at the moment and immigration is really going to change things. The prediction is that there will be 1.2 million migrants to Germany this year and it’s the biggest movement of people since World War II.” He said that Germany’s population has been falling and that the hope would be that “these new arrivals will become productive and they will consume”. He predicted that activity in the retail property market across the country will be a lot more about asset management owing to a combination of planning restrictions and a reluctance to invest in parts of the east, with the exception of Berlin, Dresden and Leipzig. Tucker also noted that towns and cities along the “German banana”, which curves from Hamburg to Dusseldorf and around to Munich, would continue to thrive, even if growth in the smaller towns was modest.
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NUMBER of projects in the Swiss retail property pipeline have been exhibited in Cannes, including a major new mall that the developer said will be a “game-changer” and an ongoing programme of niche construction taking place in the creative quarter of Lausanne. The Mall of Switzerland, currently under construction in Ebikon, in the canton of Lucerne, is showcased at MAPIC as part of the Swiss Circle group of exhibitors. The centre will have a total leasable space of 51,000 sq m across 150 mixed-use units, and is due to complete in the third quarter of 2016. It is being delivered by a joint partnership between Swiss developer Freo and the Abu Dhabi Investment Authority (ADIA). Freo director for retail marketing Nikolas Lohr said the scheme was going to be “totally different from anything else in Switzerland”, with innovative designs and technological features throughout. Lohr said that the retail offer and tenant mix has been “planned much more than any centre ever has been in Switzerland”.
Retail in China is still ‘90% traditional’ A PANEL session on omnichannel at the Innovation Forum drew the crowds yesterday, where Karen Harris, managing director of IntuDigital, the digital division of Intu, said: “The whole world is shrinking in terms of retail, but the percentage of sales in the UK that comes from digital still stands at just 15% and we have to see where this goes.” The omnichannel reality was outlined by Laure de Carayon, CEO of China Connect, a company that looks at Chinese consumer behaviour: “There are 400 million people who shop online in China and on Singles Day [a day when single people celebrate
Virtual retail
The Omnichannel session at the Innovation Forum
their marital status] 70% of the shopping was made online.” But she cautioned: “90%
A model Carrefour scheme
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Mobimo Suisse romande’s Marc Pointet (left) and Swiss Council of Shopping Centres’ Jan Tanner
Also on display at MAPIC are plans for a project within the artistic district of Lausanne, where developer Mobimo is delivering ongoing additions and enhancements to a complex mixed-use scheme designed to reflect the area’s creative culture. An event to highlight the project was held during MAPIC yesterday, with Marc Pointet, head of Mobimo Suisse romande and Swiss Council of Shopping Centres (SCSC) president Jan Tanner presenting the latest plans to delegates. of retail in China is still done through traditional stores. Mobile and online remain a secondary channel.” For Alister Meek, operations director of eastern European outlet centre company Fashion House Group, digital was a dilemma: “In outlet centres I’m being offered solutions to omnichannel problems all the time. I’ve got car park recognition systems, I’ve got footfall systems, I’ve got facial recognition systems and I’ve got loyalty programmes. I’ve even got an app to analyse all of this. I’m almost overloaded.” Meek pointed out that 25% of shoppers coming to a Fashion House Group centre have already purchased from other outlet centres online. “My concern is how to capture that 25%,” he said.
Blue skies at MAPIC 2015
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Nigeria’s Eko Atlantic mall gets official Cannes launch
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EVELOPER and city planner South Energyx officially unveiled plans for its Eko Atlantic shopping centre in Cannes this week. It’s the first time the company has exhibited at MAPIC. Eko Atlantic will be the biggest mall in sub-Saharan Africa. Based near Lagos in Nigeria, the new centre will comprise around 400 stores in 120,000 sq m of net leasable space and will be the first super-regional mall of its kind in West Africa. It will target a mix of retailers including fashion, food, entertainment and luxury. “This is the first time launching and showing the mall and we are using the opportunity of MAPIC to start conversations. We are seeing a very strong interest for Africa and for Nigeria specifically,” said Ronald Chagoury, CEO of South Energyx Nigeria. “We want to attract a number of major international brands and our message to retailers is that Nigeria has a huge, growing population and a very positive demographic change and we are still at our absolute infancy in terms of retail,” he said.
South Energyx CEO Ronald Chagoury unveiled Eko Atlantic at MAPIC
Klepierre advises on pop-up shops FRENCH developer Klepierre has launched a new book on the opportunities for brands to create pop-up stores within shopping centres. Produced with Qualiquanti, the book provides guidelines on how best to open a pop-up shop and also includes a number of case studies. Klepierre brand development director Delphine Beer-Gabel said that the publication reflects the need to create a direct relationship between brands and consumers through retail. “In a digital age it allows brands to move quicker and to engage with the consumer, and
BELGIUM READY FOR A NEW KIND OF SHOPPING CENTRE BRUSSELS-based mixed-use scheme Uplace is stepping up its leasing efforts as the date for construction to begin on site gets closer. The developer hopes to be on site early in 2016, once final planning permissions are signed off, with completion due in late 2018. The company has secured a number of local retailers for the scheme, including food anchor Delhaize, and is now at MAPIC initiating a second leasing phase to attract international retailers. “We have already signed up a number of brands such as Inditex, Cortefiel, Superdry, Levi’s, Mango, Tommy Hilfiger and Flying Tiger and the feedback we have had from our research is that Belgian consumers really want new and innovative brands,” Bram Thomas, chief operating officer at Uplace said. “This is what we want to provide, something that is genuinely different for the market.” Thomas said that during the planning phase for Uplace, the developer felt Belgian consumers had “evolved towards” the concept of an “all-inone” destination combining new retail concepts, leisure and public space.
for us it helps refresh the mall and create a better shopping experience,” she said. Beer-Gabel added that such a strategy also meant that there was closer integration of the roles of the marketing director and the retail director. “It’s something new,” she said. “We hope this publication helps position us as experts in this area and helps brands to better understand how to make the most of opportunities.” The French-language version of Pop-Up Store is available now from Klepierre, with an English-language version to be launched shortly. Delphine Beer-Gabel, brand development director, Klepierre
Cigierre’s eye-catching stand The US Pavilion
Networking with JLL
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STAND : R7.J15
Wanda Commercial Properties is a global leader in the field of commercial real estate. It currently has a portfolio of 135 Wanda Plazas across China, with a total leasable property space of 26 million square meters by the end of 2015.
OPERATION OF WANDA PLAZA
135+ WANDA PLAZA
Wanda Plaza is a city complex product under Wanda Group and No.1 commercial real estate brand of China. Wanda Plaza consists of the following: / Large-scale commercial center / High-grade hotel/Office building / Apartment / Residence / Public space
Large-scale Commercial Center is the core of Wanda Plaza, and consists of the large-sized indoor pedestrian streets where many international and domestic celebrated brands are displayed, as well as the large anchor stores such as department store, supermarket, theater, electric equipment, arcade, KTV, food and beverage. It combines many functions such as shopping, food and beverage, culture, entertainment, and exchange, provides the consumers with one-stop and diversified services, and is the large-sized commercial center and living center of a city or region.
Office building is the high-end facility for business functions of Wanda Plaza, which is built in line with international 5A standards, abstracts many a international and domestic celebrated enterprise set offices here, and drives the surroundings and forms the “Central commercial district”.
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POSITION Target all consumer group experiential Shopping Mall
Apartment and residence is the important supporting of the residential functions of Wanda Plaza. The highgrade residential, convenient traffic, and convenient living make Wanda Plaza attract a stable consumer group purchasing the fashionable and quality living.
High-grade Hotel is the important composing part of Wanda Plaza. Five-star, super five-star and top-class hotels are built respectively in line with the situation of city and region where the project is located. Wanda hotel is one of the luxurious hotels of China, or even all over the world.
OBJECTIVE CLIENTS High-Grade Consumer Group
STATUS Public space: the large-scale outdoor space connects the urban trunks as well as the ground and underground transport, leads the passengers and vehicles in and outbound the commercial center, and provides the citizens with the large-sized recreation and leisure space.
RETAIL STORES RETAIL BRANDS FOOD AND BEVERAGE LEISURE AND ENTERTAINMENT
Medium and High-End Fashion Consumer Group
Modern Family Consumers
5,000 | OCCUPANCY RATE : 99% | AVERAGE DAILY TRAFFIC: 52,000 | AVERAGE DAILY SALES : ¥ 2.9million | COOPERATIVE BRANDS:
(Single Wanda Plaza)
(Single Wanda Plaza)
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NEWS
Investment is coming back to Spain, conference hears
Colliers International USA national director of retail services Anjee Solanki
RETAILERS TAKE CONSIDERED APPROACH TO US EXPANSION RETAILERS are still hungry for US expansion but are taking a more considered approach that is being matched by centre owners, according to Anjee Solanki, national director retail services for USA for Colliers International. “I’m hearing that restauranteurs and retailers are spending more quality time. There is still energy and retailers are looking to meet with institutional clients as they have the lion’s share. They are looking to connect to do multiple deals,” she said. Solanki said both retailers and centres were working hard to better integrate with their local areas too. “There is still a need and desire to connect with the community and we are still going to see that movement. Shopping centres are taking a step back and being thoughtful about the tenant mix and tailoring that to the community rather than making it cookie cutter,” she said. “Tenant mix is really critical — it’s looking at how do you create those micro communities and people are looking to take their time to do that. There is a strong desire for retail to reinvent itself and that touches everyone from retailers to developers,” Solanki said.
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PAIN is resuming its place in the European investment mainstream, a MAPIC conference session heard yesterday. Co-organised with AECC, the Spanish Council of Shopping Centres, the event investigated the practicalities of structuring investments in Spanish retail real estate, as well as looking forward to the Spanish retail landscape in 2020. For AECC chairman Javier Hortelano de la Lastra, the conference was a sign that Spain has once again become a core market in terms of investment. “It’s also a sign that AECC, in its 35th an-
niversary year, is able to co-operate with international events like MAPIC,” he said. “The industry has changed tremendously since AECC was founded,” Hortelano said. “As the industry matures the focus is shifting to asset management rather than development.” Hortelano said there was now a continuous flow of investors looking to enter the Spanish market. “Two years ago they tended to be opportunistic, but now we’re seeing mid-term core investors like intu coming in.” And he concluded: “Our aim is to stay in the mainstream.”
AECC’s Javier Hortelano de la Lastra
THE US’ largest owner of open-air shopping centres Kimco Realty is at MAPIC to highlight how it can help retailers into the US market. “Our goal for the show is to introduce Kimco to international retailers and to further explain how we fit, and how open-air shopping centres fit, in the US,” said David Jamieson, executive vice-president of Kimco Realty, pictured. The company owns around 700 shopping centres in 39 states in the US. “We can provide the opportunity to be a one-stopshop if you are looking to enter or expand in the US,” he said. “It’s about educating international retailers who aren’t so familiar and starting to build those relationships early.” “The reaction has been very positive. People do value the opportunity that the US market can provide,” he added.
Malls get a makeover from Mercialys FRANCE’s Mercialys, the owner and operator of 60 malls across the country, has a pipeline of new space that will see malls from Toulouse in the south to Quimper in the north-west being remodeled and extended. Pride of place in all of this goes to the Toulouse shopping centre, which will have an additional 70,000 sq m added to the existing provision.
The new space will welcome shoppers by the end of 2016. As well as 130 new stores, there will be a second retail park — the first opened in May this year — a multiplex and a covered market which will feature a restaurant run by a two-Michelin-starred chef. Marseille’s Plan de Campagne is also a major element of the forthcoming new space from Mercialys which, when its extension is
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completed, will be home to 100 shops and a 4,000 sq m eating hall. Other shopping centres that are to receive a Mercialys makeover include Rennes, Morlaix, St Etienne, Carcassonne and Annecy. All of the schemes are anchored by Casino hypermarkets and the roll-out of new La Galerie branding for Mercialys shopping centres is under way.
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24-25June May2016 2016 15-16 Più JWSuperstudio Marriott Hotel Milan, Italy Shanghai, China
The deal-making event to explore retail Meet your future partners to enter and & real estate opportunities and develop activity in Greater China yourdevelop activity your in Italy. mapic-italy.it retail-real-estate-shanghai.com
NEWS Carrefour outlines global plans for extension and consolidation
C Jonathan Doughty, managing director of JLL’s Coverpoint food consulting business
‘EXPERIENCE IS KING’ IN AN ONLINE WORLD FOOD & Beverage is now recognised as a key ingredient in encouraging dwell time in shopping centres, according to Jonathan Doughty, managing director of JLL’s Coverpoint food consulting business. Speaking at the MAPIC Food & Beverage conference session, he said: “In a new online world experience is king and gastronomy will be the social glue that will hold retail spaces of the future together.” But he warned that this will require a change of mindset for shopping centre owners and managers. “Never forget that they are your guests now, not your customers,” he said. Doughty cited research by Coniq that showed that customers who eat during a shopping centre trip spend on average 27 minutes longer in the shopping centre and spend 18% more on overall transactions.
ONSOLIDATION, refurbishment and shoppi ng cent re extension are the watchwords for Carrefour in its western European malls, excluding Italy and Spain, according to Alice Durand Buffet, international marketing director for Carrefour’s property division. New build and development will be more typical of what Carrefour is doing in Asia and South America. In France, the BAB2 centre in Bayonne, the Lingostierre centre in Nice and the schemes in Antibes and Evreux are all substantial extensions of existing assets. But in Spain the Fan project is a 120-shop undertaking in Palma de Majorca that will see the island welcoming its first Primark, already a major player across the mainland. Further afield in
Brisk business on the Carrefour stand
Europe, the remodeling of the Morena shopping centre in Gdansk will be completed in 2016. In Asia, the focus will be on the Siyuan Plaza in Beijing where the new build shopping centre will feature an 11,600 sq m Carrefour hypermarket on two floors, a
5,000 sq m Decathlon and a food court with 20 restaurants. In South America meanwhile, it will be business as usual in Brazil, where refurbishment and mall extension will be the order of the day, while in Argentina, the hunt is on for new space.
Cannes launch for Cloche d’Or IMMOCHAN has used MAPIC 2015 as the launch pad for its 75,000 sq m scheme in Luxembourg that is set to open in October 2018. Dubbed Cloche d’Or, the two-level shopping centre will have mass-market brands on the ground floor and “accessible luxury” brands on the upper level, according to leasing manager Dimitri Collignon. The project is a joint venture with local investor Promobe and on completion the centre will be home to more than 120 shops with parking space for 2,850 cars. Cloche d’Or will be anchored by a 12,500 sq m Auchan hypermarket and will be the biggest shopping centre in Luxembourg and in the region, with a catchment of 1.6 million people living within a 45-minute drive of the scheme. Collignon said that the majority of the retailers will be international brands but that there will also be a smaller number of
Luxembourg’s Cloche d’Or
brands that are specific to Luxembourg, France and Belgium. Currently, Immochan operates 106 shopping centres across
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France and has 594,000 sq m of retail space, excluding Auchan, which is the anchor in every one of its malls.
EXPANSION PLANS FOR FRANCE’S MUREO MUREO, the start-up online intermediary that matches shop buyers with sellers in a blind-auction process, was outlined by managing director Edouard Detaille at MAPIC yesterday, following his triumph in winning an open-mic slot. Detaille said that since starting around two months ago, Mureo has already completed three transactions using the www.mureo.fr site and that he anticipates 30–50 deals of this kind taking place in the first year. “We would like to expand internationally, once we have consolidated our activity in France,” he said.
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Slovakia’s Eurovea extension driven by ‘strong demand’
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MA JOR extension to the Eurovea mixed-use scheme in Slovakia is underway with a wave of new retail, office and residential space in the pipeline. The centre, located on the banks of the river Danube in the Slovakian capital Bratislava, is to be extended and enhanced over the next four years. The extension work is going ahead after being postponed following the completion of the first phase in 2010. The work, due for completion in 2019/20, will add 25,000 sq m of new retail space, 15,000 sq m
Eurovea’s Balazs Magyar
of office space and 150 apartments to the mixed-use scheme. The retail space will be increased by a third. Head of Eurovea Balazs Magyar said that the extension is being driven by “strong demand” from retailers both within Slovakia and from overseas. He added: “We have permanent demand from retailers and we are in talks with them all the time. We have got a very good feeling from talking to the retailers at MAPIC about their expansion plans; it’s been very positive. We wanted to be here to send a signal to the market and to our competition.” The scheme was acquired by Slovakian entrepreneur Peter Korbacka for €400m in July last year, in what is understood to be the largest deal in the history of Slovakian retail property.
MIRCEA Grossu (pictured), director of Dedem’s Leisure Group Italia division, gave a presentation in the Retailtainment Area on the company’s plans to roll out its Youngo children’s entertainment centres in retail locations outside Italy. Its nine centres in Italian malls already attract five million visitors a year and Grossu said the company was looking for franchise partners to help it replicate this success in new territories across Europe.
Online brands add the ‘human touch’ WHAT have pants, broken mobile phones and shoes got in common? The trio of product groups were represented at a panel discussion at MAPIC yesterday that looked at the impact online-to-store was having on the French market. Three French businesses were represented in the panel discus-
sion, including underwear brand Le Slip Francais, mobile gadget repair business Save and shoe retailer Spartoo.com. The three revealed the growing importance of a physical presence for brands previously either solely or mainly online. Guillaume Gibault, CEO of Le Slip Francais, said he now had
six stand-alone stores and a number of pop-ups to supplement the online presence. Damien Morin, CEO and founder of Save, said his expanding business – which will have 200 points of sale across France, Spain, the UK, Sweden and Germany by the end of the year – targeted the shopping environment. “Being
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in shopping centres people can leave their phones us and go and do other things.” Aymeric Moser, marketing director of Spartoo.com, said his shoe business was pureplay for its first nine years but launched shops six months ago and plans 20 new stores a year for the next two years. “To make our brand the preferred brand we have to add the human touch to our relationships,” he said.
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Marc, MANAGING DIRECTOR
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NEWS Finland’s Zsar Outlet Village set for completion in 2017
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INLAND’s first outlet centre, Zsar Outlet Village, has made rapid progress since its launch at MAPIC 2014. Developer East Finland Retail Estate Company (EFRE) said the first phase
is now more than three quarters reserved for premium brands and the building permit has been granted. The initial permit includes the first 12,000 sq m of GLA housing 65 stores and restaurants in
Sami Vainiomaki, CEO of EFRE, the company behind Zsar Outlet Village
an open-air village environment — as well as 2,500 sq m of management offices, common areas and a 940-space car park. Once 50% of the space has been let construction dates will be confirmed but opening is currently scheduled for 2017. The 8,000 sq m second phase will provide another 45 stores. The Zsar Outlet Village will be located at the gateway of the EU and Russia, 150 metres from the Russian and Finnish border and halfway between St Petersburg and Helsinki. With a catchment of 8.5 million within a 200 km radius of the scheme it is estimated to produce sales densities of €7,800 per sq m according to estimates from FSP. EFRE CEO Sami Vainiomaki said he had adjusted his brand strategy following retailer feedback. “We were hoping for highlevel-to-premium brands but have had more interest than we expected from luxury brands too,” he said.
New centres for Europe’s ‘hotspots’ THE BELGIAN Luxembourg Council of Shopping Centers (BLSC) presented seven new centres at a MAPIC conference session yesterday, confirming the two countries current status as development hotspots. Construction has already begun, or will begin shortly, on La Cloche d’Or and Royal-Hamillus in Luxembourg; and in Belgium, Les Bastions in Tournai; Docks Bruxsel and The Mint in Brussels; Turnova in Turnhout; and Rive Gauche in Charlero. Presenting the Les Bastions project Evelyne Duchi, leasing director of Wereldhave, said that extension, refurbishment and the building of a new retail park would transform Les Bastions from a “local small centre today into a dominant midsized mall”.
In Luxembourg construction will begin shortly on La Cloche d’Or following the granting of the work permit, according to Philippe
Provost, general manager of the project. Opening is scheduled for the end of 2018. “It’s a huge challenge but we will do it,” he said.
Delegates listened to the presentation of seven Belgium and Luxembourg centres at MAPIC yesterday
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MILLMAN AIMS TO BE THE ‘GO-TO’ PARTNER US RECRUITMENT company Millman Search Group made its first visit to MAPIC this week. President and CEO Mark Millman said he was in Cannes to broaden the base of international retailers looking to enter the US. “We can become their go-to partner in helping them to set up management teams that will make their venture more successful,” Millman said. With a client base that includes Karen Millen, Hugo Boss and Nespresso, he said: “We have major clients coming into the US who will be using us as their first opportunity to open and expand there.” Millman said that the appetite for new entrants remained strong. “If you have a very good product, priced right and in the right location you can be very successful there,” he said.
Mark Millman
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FEATURE ONLINE CONVERGENCE
Amazon’s flagship Seattle store
From clicks back to bricks Retailers are increasingly looking to bridge the divide between the online and offline worlds, Ben Cooper discovers
W
HEN the chief executive of historic Ca-
nadian department store retailer Hudson’s Bay Co says that internet sales are “inextricably linked to bricks-andmortar stores”, it’s worth taking notice. After all, Jerry Storch isn’t just a store retailer: he is also head of the group’s e-commerce business, TheBay.com, a major player in global internet retailing. It’s a debate every retailer and e-tailer in the world needs to have. Pureplay e-tailers are experimenting with the use of physical space, while traditional bricks-andmortar businesses are cementing new ways to enliven their stores by blending the physical with the virtual.
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And for the majority, who are already au fait with both, it’s no longer enough simply to be a multichannel business; the key challenge in 2015 and beyond is to define exactly what role each channel plays and which, if any, should dominate. So where does this convergence leave the retail property market? And what does the arrival onto the high streets of global e-commerce giants eBay, Amazon and others mean for the way shoppers will shop? When Amazon opened its doors for the first time in Seattle earlier this month, it was so much more than a store opening. After 20 years of trading purely online, pitted against millions of physical booksellers globally
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FEATURE The high street now isn’t just about sales — it’s a new brand-marketing channel Viv Craske
who have struggled to keep up, Amazon’s move into store trading was a watershed moment not just for the company, but for retailing as a whole. With just 6,000 titles in store, a mere fraction of the catalogue it offers online, it was a physical manifestation of an internet sensation. And the comments from Amazon Books vice-president Jennifer Case were very telling as to how the store might disrupt a market it has already left in turmoil. “We’ve applied 20 years of online bookselling experience to build a store that integrates the benefits of offline and online book shopping,” she said at the time. “To give you more information as you browse, our books are face-out, and under each one is a review card with the Amazon.com customer rating and a review. You can read the opinions and assessments of Amazon.com’s book-loving customers to help you find great books.” This, says Viv Craske, head of innovation and digital at retail marketing agency Live & Breathe, is a crucial advantage that is likely to boost Amazon’s launch. “Amazon opening a store is the ultimate example of the disruption of e-tailers on the high street,” he says. “It is coming to the high street fully armed with a huge rate of open sales data and ratings and value information. They will be head-and-shoulders above the competition.” But is it that simple? One of the main reasons that Amazon, Zalando, eBay, Alibaba and others have been able to grow so huge so quickly, is that they are free from the burden of costly store portfolios. With every new shop that a retailer opens, its costs go up and its margins go down, and its logistics infrastructure expands. So could the convergence of physical and online space that Storch says is so crucial actually end up slowing them down? Of the benefits of opening a physical store, Craske says one of the most effective is actually one of the most intangible. For the e-tailer, he says, physical space is like a billboard right on the high street. “An e-tailer needs to make itself well known,” he says. “Online they don’t have the footfall-factor of other retailers, but with physical space they are constantly reminding shoppers that they are there. The high street now isn’t just about sales — it’s a new brand-marketing channel.” The other side of the debate is how traditional store retailers can make the most of e-commerce opportunities. Where e-tailers need the legitimisation that a
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Undiz in Toulouse, where shoppers can access its online platform on mobile devices in-store
physical presence can achieve, physical retailers need to get store shoppers onto their websites. Cue some of the latest retail brand innovations. That of French lingerie retailer Undiz, for example, which has created an innovative concept store in Toulouse where shoppers can access its online platform using in-store mobile devices and have their item transported straight to them, there and then, via an automated delivery system. French retailer Jules — a relative newcomer having been established in 2000, yet with over 450 stores throughout Europe, the Middle East and Russia — says that it is “anchored in modernity” with a heavy focus on social media. It engages with customers not only through its stores and its Jules.com online platform, but has also managed to get a large following online: Facebook, Twitter, YouTube, Instagram, Pinterest and Google+ are all vital channels in the modern business. Ever since the rise of global e-tail sensations eBay, Amazon, Zalando and more, the ‘death of the high street’ has been discussed. The rapid expansion of online shops and online shopping at the start of the 21st century, and the struggles of physical retailers to keep up with them, threw the whole retail property dynamic into doubt. But in 2015, not only do high streets still account for the vast majority of shopping globally; ‘online’ retailers are moving into town. Where the balance between physical and virtual space lies comes down to individual brands. But what seems certain is that for almost all, the convergence conversation should be top of the boardroom agenda.
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