Mapic 2015 preview by RX REAL ESTATE SHOWS

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The official mapic magazine

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OCTOBER 2015

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mapic

www.mapic.com The official MAPIC magazine

PREVIEW

Country of Honour

Innovation

Retailtainment

Special focus on the world’s most influential retail market

Highlights from the upcoming MAPIC Innovation Forum and industry trends

How retailing is bringing the sparkle back to shopping with new leisure concepts

SEE PAGE 89

www.klepierre.com

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SEE PAGE 33

Also inside: • MAPIC Awards • Shopping centre development • Pop-up stores • Retail expansion • Franchising • Europe • Asia • Middle East

THE NEW HEART OF NEW YORK Vist MAPIC Booth P-1 G74 to learn more about New York’s Next Great Neighborhood

October 2015

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Editorial WELCOME to the MAPIC 2015 Preview magazine. The 21st edition of the international retail property market will welcome over 8,400 delegates including some 2,400 retailers and 2,300 property developers. And there will be something of an American flavour to proceedings as the United States is our MAPIC Country of Honour. With over 200 US companies attending, including MAPIC 2015 official partner Thor Equities, this year sees the inaugural US Pavilion and first time MAPIC appearances from US developers Related Companies and Kimco, business services specialists Avison Young, Time Retail Partners and Winick Realty Group, retailtainment company Sky Zone and Archaio - the cloud-based solution provider for real time building inspection and reporting. And we’ll be taking a close look at the US retail market in our wide-ranging conference programme. Almost 80 countries will be represented at MAPIC, which continues to be the international retail property markets’ annual reference event. In all, 55 companies are exhibiting for the very first time, giving delegates the opportunity to discover market leaders from as far apart as Russia, Qatar, Nigeria, China, Japan, Belarus, France, the UK, Turkey, Germany and Italy. MAPIC truly is the coming together of the world’s retail and real estate sectors. This is a time of true international growth for MAPIC, with not only the Cannes event attracting an ever-growing number of nations and companies but MAPIC holding its first event in China this June, while the inaugural MAPIC Italy will take place in May next year. Entertainment within retail outlets continues to be high on the list of strategic priorities for shopping mall managers. Reflecting this trend, MAPIC’s Retailtainment Pavilion is doubling in size this year to house some 20 stands and pitching sessions where companies will unveil their various concepts for attracting and keeping customers inside shopping destinations. In addition, conference attendees will have a unique opportunity to hear Dreamworks Animation’s approach to combining its theme parks with major international malls. Innovation is central to retail success and over three days the MAPIC Innovation Forum will showcase new technology solutions, online developments, Big Data opportunities, online-to-offline experiences, changing customer behaviour patterns and the growing-popularity of the pop-up store. Indeed, 2015 promises to be a truly exciting edition of MAPIC, culminating in the MAPIC Awards, where we celebrate the best of this fascinating and vibrant industry. Until then, I hope you find this MAPIC Preview a stimulating and useful read. Nathalie Depetro: Director of MAPIC preview magazine I October 2015 I www.mapic.com

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Retail Leasing Contact: Meghan Kruger

mkruger@acadiarealty.com

212.324.1255

330 Madison Avenue | Suite 3105 | New York, NY 10017

New York SoHo NoHo Tribeca Union Square Upper East Side Madison Avenue Brooklyn The Bowery Midtown Connecticut Greenwich Westport Chicago The Gold Coast The Loop Magnificent Mile Lincoln Park Lakeview Wicker Park Washington D.C. Georgetown Dupont Circle Boston Cambridge Miami Beach Lincoln Road Georgia Savannah Broughton Street San Francisco

Contents 8

My MAPIC How to get here ; Your badge and registration ; Must-attend events ; Mustvisit areas ; Meetings and Map

MAPIC Awards

News

The 20th MAPIC Awards will be presented at a gala ceremony on Thursday 19 November in front of a packed audience

Global focus as MAPIC looks east and west ; USA Country of Honour ; Klepierre divests Dutch assets and reshapes portfolio

Themes Retailers

Lifestyle and F&B

The store remains central to most retailers within an omni-channel strategy and MAPIC will host established, expanding and first-time retailers

Entertainment and F&B have become mainstays of the experience economy and in Cannes the focus will be on how best to create retail-led destinations

Master franchising

Travel retail

We take a closer look at the pivotal role of franchising as a mechanism to expand retail territories in new regions and to cooperate with local partners

A market so big it has been dubbed the sixth continent, travel retail has established itself as a major engine of retail growth and a new opportunity to capture consumer spend

Innovation

Pop-up stores

A core theme at this year’s MAPIC, an expanded feature area will showcase innovative companies and address the digital/physical convergence of retail

A special report highlights the benefits of pop-up stores to the French market

Countries & Regions On the road

This year MAPIC made its debut in China and also held MeetUp events in London, Milan, New York and Paris

France

Continental Europe

Turkey and the Middle East

No longer a conservative market, France has emerged as one of Europe’s most innovative shopping centre players, while a strong focus remains on high street retail

Italy & Spain

London may have dominated the headlines but it is the UK’s regional cities where most of the development action is taking place as new schemes emerge

Russia & Central and Eastern Europe

Despite a tough economic climate, retail growth is evident across Russia. Meanwhile, the CEE markets continue to attract inward investment to the major locations

Turkish retailers and brands will once again arrive in Cannes via a speical pavilion, showcasing their capabilities, while further east major Gulf schemes are progressing

The Mediterranean comeback kids have confounded expectations by attracting international investors and retailers, prompting a fresh round of development

Germany remains a retail powerhouse in Western Europe but its neighbours are also pressing ahead with projects and retailers are looking to expand across markets

Scandinavia

It has always been tough to beat the locals to investment opportunities but Northern Europe is beginning to open up to new players, attracted by strong fundamentals

The Americas

Our special focus on this year’s Country of Honour and a retailing juggernaut, as the US looks outward for opportunity while new players follow the American dream

Asia

China and the wider Asian market are simply too big to ignore and, fresh from the launch of MAPIC’s debut Chinese event, we look at the key drivers in the region preview magazine I October 2014 I www.mapic.com

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My Mapic

GET THE MOST OUT OF MAPIC Quick before-the-show checklist What should you keep in mind?

Have you: prepared your transportation to Cannes?

YOUR BADGE

booked your accommodation? logged into the Online Database to set up your meetings and see all MAPIC attendees and projects?

• is your primary means of identification during MAPIC • provides access to all exhibition areas, conference sessions and networking events Please carry it at all times, and be ready to show it at entry points around the area. E-ticket holders: E-tickets will be sent to you via email a few days before the show. They include a barcode for ID recognition. Print it out to collect your badge at a self-service delivery point or download the MAPIC App.

checked the conference and event programme? downloaded the MAPIC App to stay up to date on the show info?

If you have NOT answered YES to all these questions, visit my.mapic.com to find everything you need to know.

REGISTRATION Palais 0 – On the Croisette side of the Palais des Festivals to the left of the main entrance. • Tuesday, 17 November, 9.00 - 20.00 • Wednesday, 18 November, 8.30 - 19.00 • Thursday, 19 November, 8.30 - 19.00 • Friday, 20 November, 9.00 - 15.00 MAPIC OPENING HOURS

What events are a must-attend?

• Wednesday, 18 November, 9.00*-19.00 • Thursday, 19 November, 9.00* - 19.00 • Friday, 20 November, 9.00*-17.00 *Exhibitors have access to all the exhibition areas starting from 8.30 via the Artists’ Entrance situated between the Palais des Festivals and Riviera.

MAPIC 2015 Official Sponsor

OPENING COCKTAIL Tuesday, 17 November, 19.30, Majestic Hotel

WELCOME MEETING MAPIC tips for newcomers. Wednesday, 18 November, 8.00 Champs-Elysées Room, Palais -1

MAPIC PARTY MAPIC AWARDS GALA DINNER Thursday, 19 November, 19.30, Grand Hyatt Cannes Hotel Martinez. Book a seat/a table

Thursday, 19 November, 22.00 Grand Hyatt Cannes Hotel Martinez Sponsored by

For a complete event programme check pages XX

CONFERENCES See the at-a-glance programme on page 46 for a complete overview of conferences.

preview magazine I October 2015 I www.mapic.com

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My Mapic General map of MAPIC What areas are a must-visit?

(New location: Palais -1) Discover best practices on how to add value to your shopping areas and improve client experience through technology and new trends (exhibition + pitch sessions + conferences and workshops).

Professionals showcase their projects and demonstrate how entertainment has become an essential and attractive component for shopping areas (exhibition + pitch sessions).

NEW! RETAILERS LOUNGE (Palais -1)

As part of this year’s USA Country of Honour programme, a US Pavilion will gather related American players including: Acadia, Avison Young, Kimco, Thor Equities... and many more.

The place to touchbase with retailers and discover new ones.

NEW! US PAVILION (Palais -1)

What rooms can you use for your meetings? PRESS CLUB (Palais -1) VISITORS’ LOUNGE (Palais -1) Sponsored by

• Intended for participants without a stand

• Dedicated to journalists • Includes computers, Internet connection, printers and the assistance of a permanent staff member

• Includes a meeting area, hostesses to help organise your meetings and free coffee • For meetings of a maximum length of one hour CHAIRMAN’S CLUB (Palais 1) Sponsored by

GOLD CLUB (Palais -1) • Intended for gold members of our Customer Recognition Programme • Includes a private lounge area, international press, PC & Internet access

• Exclusive club reserved for chairmen, by invitation only • Includes refreshments and a dedicated staff mapic PREVIEW The official MAPIC magazine October 2015. Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor-in-chief Mark Faithfull Technical editor-in-chief Herve Traisnel Deputy technical editor-in-chief Frederic Beauseigneur Graphic designer Carole Peres News editor Graham Parker Contributors Ben Cooper, Debra Hazel, Mia Hunt, Anika Michalowska, Liz Morrell, Sarah Morris, Paola Nicolai, John Ryan Partner contributions Alain Boutigny, Sylvie Guingois Sub-editor Joanna Stephens Proof reader Debbie Lincoln PRODUCTION DEPARTMENT Publishing director Martin Screpel Publishing manager Amrane Lamiri Co-ordinator Emilie Lambert Production assistant, Cannes office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France) 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 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2015, Reed MIDEM Market Publications. Publication registered 4th quarter 2015. ISSN 1961-022X. Printed on 50% recycled paper. ®

preview magazine I October 2015 I www.mapic.com

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MAPIC 2015 Steering Committee

New in 2015

Mr Sami Kariyo

Mr Laurent Salama

Chairman UNITED BRANDS ASSOCIATION

Group Leasing Director IKEA CENTRES EUROPE

New in 2015

Mr Emmanuel Begerem

Mr Reinhart Viane

Head of Channel Partnerships France GOOGLE

Business Development Director KCC

Mr Peter Wilhelm

Mr Alain Boutigny

CEO WILHELM & CO

Director & Editor-in-Chief SITES COMMERCIAUX

Reed MIDEM would like to thank our global panel, who reflect a hugely diverse range of skills and geographies within the industry, for their tireless work, dedication and support in making MAPIC the world’s premier retail property event. This year their work has focused particularly on retail globalisation and innovations in digital, pop-ups, travel and retailtainment.

Mr Brian Tucker Head of Retail DEKA IMMOBILIEN

Mr Christian Recalcati

Mr Pierre Combet CEO RETAILP

Mr Jean-Paul Fréret

THANK YOU

Development Director-France CARREFOUR

CEO LARRY SMITH

Mrs Mayté Legeay

Mrs Melissa Gliatta

Country Manager NEINVER

Executive Vice-President THOR EQUITIES

Mr Henrie W. Kötter

Mr Chris Igwe

Managing Director CENTER MANAGEMENT ECE

Global Retail Advisor CII (CHRIS IGWE INTERNATIONAL)

preview magazine I October 2015 I www.mapic.com

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Awards

President

The Jury

MAPIC AWARDS 2015

MAPIC Awards

celebrates ten of the best The 20th MAPIC Awards will be presented at a gala ceremony on Thursday 19 November in Cannes, with the ten categories reflecting and recognising the growing diversity of the global retail real estate sector

H U G E LY e x p e r i e n c e d awards jury — headed by Thor Equities’ EVP Melissa Gliatta — drawn from all areas of the retail world and all corners of the globe made the final decision for the best in class of 2015 for: • Best Fashion & Footwear Retail Concept • Best Food & Beverage Concept • Best New Retail Concept • Best Retail Global Expansion • Best Retail Digital Strategy • Best Pop-Up Shop • Best New Shopping Centre • Best Refurbished Shopping Centre • Best Factory Outlet Centre • Best Retail Urban Project. MAPIC 2015 Official Sponsor

The growing reach of the Awards was reflected last year in winners which included Wanda Group from China, retailers such as Uniqlo, Vapiano, Kiko and New Look, amazing projects like Apsys’ Beaugrenelle, Hammerson’s Les Terrasses du Port, RTKL’s Fashion Outlets of Chicago, and Altarea Cogedim’s shopping centre Qwartz, plus General Manager Leasing Frédéric Laloum who received a Special Tribute. Sponsored by Thor Equities, the ceremony will take place at the Grand Hyatt Cannes Hotel Martinez, and will be attended by over 250 of the most influential retail real estate professionals. For ticket information please contact Lucie Chen — MAPIC Awards manager, mapic.awards@reedmidem.com

MELISSA GLIATTA

Executive Vice President Thor Equities United States

THOMAS DEVONSHIREGRIFFIN

Managing Director, Russia and CIS JLL – Russia

FRÉDÉRIC LALOUM

General Manager Leasing & Member of the Executive Board Altarea Commerce France

ALAIN BOUTIGNY

CHET SIEW CHNG

Editor in Chief Sites Commerciaux France

Senior Vice-President Regional Leasing CapitaLand Mall Asia Singapore

EDOARDO FAVRO

BARRY HUGHES

CEO Gallerie Commerciali Italia – Italy

MAYTE LEGEAY

Country Head Neinver France & Business Development Director Neinver France

Senior Vice President HOK United Kingdom

THOMAS MEAGER

Group Director of Property Primark United Kingdom

JOAN ROURAS

JOHN STRACHAN KLAUS STRIEBICH

Europe CEO Crown Acquisitions Spain

Global Head of Retail Cushman & Wakefield United Kingdom

Managing Director Leasing ECE Projektmanagement Germany

preview magazine I October 2015 I www.mapic.com

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News

Global focus as MAPIC looks east and west The global nature of pan-continental retailing will be reflected at this year’s MAPIC with not only the expanded US presence acknowledged by the nation as this year’s Country Of Honour, but also with markets such as China, Turkey and India in the spotlight. Alongside long-standing attendees from the US, this year players from North America will have their own pavilion and among a host of events there will be a happy-hour event on Wednesday, November 18; a US breakfast on Thursday, November 19; a ‘Big Picture’ focus on the US market co-organised by Time Retail Partners and sponsored by fashion retailer Chico’s; and Thor Equities, which is attending its seventh MAPIC, will sponsor the opening night cocktail party, the Awards, the closing party and other US events. Thor Equities executive vice-president Melissa Gliatta said that Thor has enjoyed its pioneer status as a US attendee and added: “We really welcome the growing recognition of the importance of MAPIC to US retailers and we feel really involved in this year’s event. For us it’s all about high-level meetings

Official MAPIC 2015 sponsor, Thor Equities is one of the longest-standing US exhibitors in Cannes and the number and quality of tenants and potential clients we meet in Cannes is really outstanding.” Meanwhile Turkish brands will receive their own showcase with Turkish retailers gathering

on the same stand to highlight the growing reputation of Turkish fashion manufacture and retail, while Qatar’s Place Vendome will be a MAPIC party sponsor for the second year running.

NEWS IN BRIEF

Q INNOVATION: INTU APP BRINGS DIGITAL IN-MALL UK-BASED intu has launched a nationally available app combining centre information, in-centre wayfinding, and opt-in, personalised, location-based offers. The app launched in late September for intu’s nationwide ‘Student Nights’ shopping event and is the latest inhouse development from the team which spearheaded affiliate content site, intu.co.uk. With nearly 300 retailers signed up, the site has grown 40% year-on-year and received over 22 million visitors in its first year.

US: COUNTRY OF HONOUR

Read more Innovation p.10

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DO NOT MISS

Design: Shaping The Retail Real Estate Era: Smart Experiences Thursday, November 19, 9.30 Oxford room

Retailers

The store’s the star Internet shopping has created a world of retail without borders. But conversely, most brands still see the physical store as central to their business model and this is driving a new wave of cross-border expansion. Graham Parker reports

look to drive marOKYO topped the list of target ket share and raise markets in 2014 with 63 new entheir brand profile trants in CBRE’s How Active Are through increased Retailers Globally?. Leasing moawareness they mentum in core areas remained strong, dewill continue to spite the mixed signals in the economy and ex pa nd beyond an increase in the sales tax to 8% from April their home territo2014. Within Japan, Tokyo continues to be the ry. It says it is seeing main focus, particularly for high-end retailers. further expansion into The increased presence of luxury brands has diverse locations as the spurred rental growth and compressed the stores that have opened prove popular with availability on the main streets in core arethe local consumers. as, particularly Ginza and Omotesando. The The report added: “We former have seen prime are continuing to see conrents grow by 21% in 2014 sumers viewing the physiand thus, Aoyama and “The retail experience cal store as their preferred Jingumae, until recently remains absolutely mode of purchase and perthought of as secondary haps more importantly as streets or areas, are now fundamental to the a point of social interacattracting retailers and be- shopper” tion. We see that coning seen as increasingly Peter Gold sumers view shopping as attractive. a leisure activity and the Ref lecting the diverse continued expansion of brands and developglobal nature of retailing aspirations, othment and improvement of shopping locations er top target cities included Singapore, Abu gives them the opportunity to embrace this.” Dhabi, Taipei, Dubai, Hong Kong, Moscow, But of course the world is changing. Paris, Beijing, Doha, Berlin, Toronto, Manila, Forrester’s European Cross-Channel Retail Stuttgart and Istanbul. Sales Forecast, 2015 to 2020, predicts that Last year US retailers were most active inter53% of European sales will be affected by a nationally, followed by Italy, the UK, France, digital channel. The study suggests the valSpain, Japan, Sweden, Germany, Belgium and ue of cross-channel retail sales in Europe the Netherlands. will reach €704bn by 2020, up from €457bn CBRE’s take on the situation is that the core this year. It defines such purchases as those elements of globalisation, technology and dethat consumers begin using a digital channel mographic change continue to have a dramatbut do not complete online. It says that, when ic impact on the business of retail. As retailers

these cross-channel sales are combined with online sales, they will reach €947bn, or 53% of European retail sales. The shift, the report continues, will be felt more in northern than southern European countries, while the UK will have the largest proportion of web-impacted sales by 2020. Yet the store remains key to most retail operations, with an increasing number of pure players taking some sort of physical presence, whether through temporary space, concessions or stores. While few have gone into a serious roll-out, most of the big names have experimented with some sort of retail location. Peter Gold, CBRE’s head of cross-border EMEA retail, believes that retailers’ appetite for new store locations is undimmed. He explains: “Given the ongoing challenges retailers face from cost escalation, the successful delivery of omni-channel and changes in consumer behaviour, it is increasingly important for them to have a strong network of stores to effectively represent their brand.” He adds: “Retailers have recognised the overwhelmingly positive attitude that shoppers have to engaging with the physical store

preview magazine I October 2015 I www.mapic.com

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After last yearâ&#x20AC;&#x2122;s MAPIC launch of Zsar Outlet Village, over 70% of space is now reserved by our brand partners. We are now readying for construction. Zsar will be the first premium outlet in Finland, located at the main gateway between the EU and Russia. It is predicted that Zsar will produce sales densities of â&#x201A;Ź7,800/sqm, which would place it in the top 10 of sites in Europe (Source: FSP Retail Business Consultants).

Secure your place now.

Join us on our stand at MAPIC at Palais -1, N61.

Retailers environment and are committed to opening more stores. This gives further credence to the view that the retail experience remains absolutely fundamental to the shopper.” Gold’s view is confirmed by CBRE’s annual survey, which this year found that international expansion remains a strong focus. Of the global retailers surveyed by CBRE, 21% said they planned to open between one and five stores in the EMEA region during 2015. However, 47% of the respondents indicated that unclear economic prospects and cost escalation, largely due to increases in rental costs and lack of quality retail space, are their biggest concerns. Indeed, the number of large-scale expansion plans with retailers looking to open more than 40 stores has scaled back to 9% in 2015. This trend has also been observed by James Brown, head of retail research, UK and EMEA, at JLL. “We expect international retailer expansion to continue its momentum across the key retail markets,” Brown says. But he warns: “Physical expansion is more careful, more considered and more selective than ever before, as sweeping structural changes further redefine retail and retail places. A consequence of this is considerable churn in retail stores. As a general rule, in Europe in the last

two years, for every two stores opened, one store has closed down as retailers seek to work their stores harder and smarter.” So where are retailers looking to expand? Brown draws a distinction between luxury and mainstream brands, which have very different location strategies. But in general, he says: “For international retailers looking for springboards into Europe, London leads the pack. Its retail-market size, maturity, high degree of market transparency and retail friendliness make it a magnet for international retailers who are willing to pay a premium for the best locations.” He points out that a consequence of this demand is soaring rents — retail space in New Bond Street commands the most expensive headline rents in Europe at €12,300 per sq m per year, up 42% since 2012.

“In the last two years, for every two stores opened, one store has closed down as retailers seek to work their stores harder and smarter” James Brown

Brown says that other major global and mature European cities, including Paris, Milan and Rome, have similar appeal. “And the main German retail cities have similarly benefitted from international retailers’ thirst for growth,” he adds. CBRE’s research shows that last year’s move to relax some of the trading restrictions retailers face in France has improved the country’s attractiveness to international brands, most notably the increase in the number of Sunday trading days from five to 12 per year in some areas, and the creation of “zones of international tourism”, which will allow Sunday opening all year round. But where are the retailers coming from? JLL research shows the US, driven by expanding premium retail brands, has overtaken Italy as the largest exporter of cross-border retail fascias in Europe. It awards the crown as most expansive retailer to the US premium retailer Michael Kors, followed by the UK’s Superdry, Sweden’s Cos and the US’ 7 For All Mankind. In addition, many European retailers have also shown consistent expansion in the past two years, including Ecco and Hugo Boss. And looking to the future, JLL predicts that an influx of brands from the AsiaPacific region will enter Europe, with the

ITALIAN LUXURY FASHION RETAILER CONNECTS WITH CHINESE CONSUMER While LUISAVIAROMA has had a store in the heart of Florence since 1930, it first went online with a membership style approach in December 1999 and launched a Chinese website towards the end of 2011. Dovetailing with this, the company has pushed ahead with classical advertising and marketing, the high end store experience and through engaging with social media to create a buzz in China. “We started investing in the Chinese marketing almost three years ago and for the last 18 months we have seen incredible growth the Chinese and Asian markets, which represent a third of our revenues,” said Tiziana Tini, Greater China, Asian, Russian Fed & CIS Countries Coordinator at the retailer. LUISAVIAROMA decided to celebrate the 10th Edition of annual event Firenze4Ever by dedicating the whole theme to the Asian market, including using Chinese celebrities and media partners with the main objective to be well known by Chinese fashionistas. “Wherever they go, wherever they are, we want them to know that we can provide them the best choices in designers, the best looks and best suggestions than anyone else, before anyone else,” said Tini. “We publish the new season in December for Spring/Summer, in June for Autumn/ Winter. You can receive your order in three working days, shipped from Florence.” Anticipating further physical and digital convergence she added: “The plan isn’t to open 100 stores in the future or to only limit things to digital. The plan is to bring the two elements together.”

DO NOT MISS

Goldrush: the new eldorados for luxury brands Wednesday November 18, 16.30 – Oxford room

preview magazine I October 2015 I www.mapic.com

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European retailers, including Ecco, have shown consistent expansion fast-growing Australian stationer Smiggle in the vanguard. Clearly, retailers still see the rewards of international expansion outweighing the potential 030_RELATED_PV_PIC pitfalls. Perhaps the final word should go to Dr

Tim Denison, director of retail intelligence at Ipsos. “The path to success is becoming easier to follow as more retailers begin to flourish internationally,” he says. “But the opportunity to grow internationally can only come

Join Kenneth A. Himmel, President and CEO of Related Urban, for a discussion on the next generation of American retail.

about through being in good shape domestically, having strong cash flows and reserves, and the long-term support of shareholders. Going international should not be seen as a foray; more a colonisation.”

Hudson Yards: Be In THe nexT Wednesday, 18 November 2015 14:00 - 14:45 Agora Conference Room Palais des Festivals

HudsonYardsNewYork.com MAPIC Booth: P-1 G74

preview magazine I October 2015 I www.mapic.com

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Retailers

Retailer round-up: ones to watch MAPIC has long been established as one of the major meetingpoints for global retailers looking to expand into new markets. And the 2015 edition will be no exception, with more than 2,400 retailers expected to gather in Cannes

ETAILTAINMENT, digital and the seemingly unstoppable rise of food and beverage brands will be key talking points at this year’s MAPIC. Some of the leading players from these fast-growing sectors will be represented, including specialist KCC which in a session on the Retailtainment Pavilion will be examining success stories and less successful retail and leisure integrations; omnichannel consumer-electronics retailer MediaSaturn; and Spain’s Yogurteria Danone,

which produces ice creams based on authentic Danone yoghurt But fashion remains at the core of most shopping centres’ offer. Reflecting this, a number of global fashion brands will be at MAPIC for the first time, including Groupe Dynamite from Canada, Harmont & Blaine from Italy, Zorile from Moldova, OTCF from Poland and Chakra from Turkey. The following is just a small taster from the wide menu of retail formats on display in Cannes this year.

KARACA TURKISH homewares brand Karaca has successfully made the transition into a regional player, building on a strong domestic base consisting of 120 standalone Turkish stores trading under the KRC fascia, as well as 1,200 wholesale accounts. In addition, it has 58 franchise partners for the bright and colourful stores that feature its Emsan, Cook Plus, Karaca Home and Jumbo ranges. Karaca currently has 28 international stores in 20 territories, ranging from Germany, France and the Netherlands in Western Europe to Azerbaijan and Georgia to the east, Morocco and Libya in North Africa and Lebanon, Iran and Iraq in the Middle East. An Oslo store marked Karaca’s entry into the Nordic markets, with more new territories in the pipeline.

MINT VELVET

presence. And she believes the time is right for Mint Velvet FASHION retailer Mint Velvet to expand into new territories. was only founded in 2009 but With this in mind, Mint Velvet its “relaxed glamour” concept will be showcasing its format has clearly struck a chord with UK shoppers. After a successful for the first time at MAPIC 2015. roll-out in the Chinese-owned, Of expansion, Houghton says: fashion-forward House of Fraser department-store chain, “The website continues to grow, as online becomes Mint Velvet now has 24 standalone stores, as well as an increasingly important, with exciting new developments outlet store at Land Securities’ helping our customers shop Gunwharf Quays in with ease and put looks Portsmouth. And it has plans together. We have an incredibly to open 10 more UK stores. clear vision and we’ve never At the same time, Liz deviated from what we set out Houghton, Mint Velvet’s CEO to do. We create beautiful and and co-founder, has luxurious clothing for modern announced plans to step up the brand’s e-commerce women.”

preview magazine I October 2015 I www.mapic.com

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REDI. NEW RETAIL SPACE IN HELSINKI. SHOPPING CENTER BY THE SEA WITH 200 STORES. LOCATED IN KALASATAMA, HELSINKI DOWNTOWN.

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HIGH ON LIFE

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Retailers HAPPYCHIC THE FRENCH pret-a-porter fashion group was only founded in 2009, but it has already made a big impact due in part to its backing by the Mulliez retail dynasty that controls Auchan. Happychic operates the Bizzbee, Brice and Jules brands and, like many recent startups, it could be considered a digital native thanks to its strong e-commerce operation. But it has been no slouch when it comes to expanding its physical portfolio too. Young fashion brand Bizzbee operates 65 stores in France, menswear fascia Jules has 400 stores in 13 countries and Brice has 230 stores across five countries. Overall, 18% of Happychic’s stores are operated under franchise agreements. Between them, the group’s stores and websites generated a turnover of €717m in 2014. Happychic is planning to open around 40 stores a year, with fast growing markets such as Russia, MENA, China and South-East Asia targeted for expansion.

OLYMP GERMAN menswear manufacturer and retailer Olymp saw sales surge 11% between 2013 and 2014 to reach €225.4m. And with its twin strands of businesswear and casual fashion both showing strong growth, sales grew by more than 7% in the first half

of 2015. Sales volumes are increasing in Belgium, the UK, Ireland, the Netherlands, Austria, France and Hungary, although the CIS saw a decline as sanctions hit sales. According to Mark Bezner, Olymp’s owner and CEO, two-thirds of the

company’s turnover is still generated domestically. “In future, we should see a continuous increase in the export ratio due to sustained market penetration and the acquisition of new areas,” Bezner said as he unveiled Olymp’s half-year results.

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Master franchising

Franchise remains key to growth Franchising is a well-established route for retail brands to grow their international coverage without having to tie up large amounts of capital. And for some it has been enormously successful, Graham Parker reports

T IS exactly 50 years since Fred DeLuca co-founded MAPIC stalwart Subway with a single store in Connecticut, US. Today, there are more than 37,000 Subway stores in 100 countries, from Afghanistan to Zambia. And every one is independently owned and operated by a franchisee. The UK, with 2,000 sites, is the largest market outside North America for Subway. But franchising is not without its challenges. Success depends on ensuring that the interests of the brand and the franchisee are aligned and that there is personal synergy between the key players on both sides, so that the lines of communication are as clear as possible. While the retailer brings the power of its brand and the merchandise to the party, the franchisee needs to offer local know-how, access to capital, access to the right locations and the ability to run a retail business on a day-to-day basis. Retailers need to perform a lot of due diligence to be confident that potential partners can deliver all this if they are to avoid damaging their brand through failed overseas ventures. This is where MAPIC comes in with its speedmatching sessions, which are designed to allow brands to make contact with qualified local partners from a wide range of markets.

malls in 17 countries, occupying a total GLA of over 500,000 sq m. Business development director Brendan Dorrian claims the company “would like to grow to 1,000 brands” and says that structuring the organisation around brand teams and targets meant “healthy internal competition” would sustain further growth. He says the company had managed its current expansion by focusing on a “retail Xerox” strategy, which means that it delivers exactly what any retail partner expects through rigorous replication. The company is also acquiring brands and here he said “differentiation, relevance, viability and cultural fit” were the four pillars of agreeing a deal. Similarly, the Alshaya Group is active in a number of other sectors including real estate, automotive, hotels, trading and investments. From one store in Kuwait the portfolio of leading international brands it operates has grown to include over 70 brands and 3,000 stores in markets across the Middle East and North Africa, Russia, Turkey and Europe.

In addition, many brands will be at MAPIC looking to grow through franchising, including OBI, Beverly Hills Polo Club, Vapiano, Steak ‘n Shake, Bizou, Debenhams and Hunkemoeller, to name just a few. One new challenge is considering online and franchise sales, In particular for those retailers delivering online into countries where they already have partnership agreements with franchisees, which face a number of “cannibalisation and legal hurdles”, says John Scott, director of international business development at UK department store group Debenhams. Debenhams has established 85 stores across 27 markets, using a franchise model, while it also delivers via e-commerce to around 70 markets. “The situation has been compounded because emerging markets have ‘jumped the rail’ in terms of omni-channel retail,” he says. “We have until now operated our channels as silos internationally but the pace of change in those emerging markets has meant they are hard on the heels of the developed markets.”

Debenhams has established 85 stores across 27 markets using the franchise model

In some markets, such as those in the Gulf region, franchising is mandatory because all businesses have to be majority-owned by local partners. This has led to the growth of several very powerful businesses that, in some cases, are larger and better capitalised than the global retail brands they represent. A prime example is Alhokair Fashion Retail, which was formed in Saudi Arabia in 1990 and has grown to represent over 80 fashion brands across womenswear, menswear, kids and baby, department stores, shoes and accessories, cosmetics, F&B and entertainment. It trades in more than 2,300 stores across 100 shopping preview magazine I October 2015 I www.mapic.com

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retail experts, coast to coast. Newmark Grubb Knight Frank Retailâ&#x20AC;&#x2122;s National Advisory Services offers: w Nationwide reach from New York, Washington, DC, Miami, Chicago, Houston, Los Angeles and San Francisco and cities in between w Specialized expertise geared specifically toward retailers w National and global reach w The largest scope of services in the industry w Vision that provides a highly strategic, consultative approach w Solutions beyond the storefront, extending across all property types

Visit Our U.S. Retail Team at Palais 1. G70 â&#x20AC;&#x201C; H69

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Complete MAPIC Innovation Forum programme on page 46

From online-to-store, click & collect, and omnichannel to mobile shopping and big data, new technologies are impacting retail outlets, transforming the relations between brands and consumer, and opening up new opportunities. MAPIC is engaging with these changes via its dedicated pavilion called the MAPIC Innovation Forum (MIF), where conference speakers and exhibitors will showcase their new concepts and solutions.

EXCLUSIVE CONFERENCES How to capture data for business growth? Wednesday 18 November, 10.00-11.00 The Omnichannel experience: connecting shoppers or connected shopping? Thursday 19 November, 10.00-11.00 Prospectives: Retail real estate. Go shopping tomorrow! Thursday 19 November, 16.45-17.45

EXCLUSIVE WORKSHOPS Google How to leverage online marketing solutions to drive in-store traffic and revenue? Wednesday 18 November, 15.30-16.30 China Connect State of 020 in China trends & best practices by China Connect Thursday 19 November, 15.30-16.30

PARTNERS

Innovation

An invisible touch As the pace of technological change accelerates and the digital and physical worlds converge in store, what do the next few years look like for consumers? John Ryan looks to the future

NE OF the retail mantras of the last few years has been that customers are becoming channel blind and will use whichever happens to suit their needs at the moment of purchase. This simple idea is underpinned by a complex effort on the part of retailers, as they struggle to keep pace with their customers’ multichannel requirements. For landlords and retailers alike, the starting point is probably wi-fi. Kevin McKenzie, global chief digital officer at Westfield Labs, the San Francisco-based digital-research outpost of developer Westfield, says: “It was obvious to us that consumers make almost all their decisions using technology and so it seemed to us that we needed to put this at the forefront of our efforts.” Practically, this means helping shoppers to remain online. “To us, wi-fi is

as important as electricity,” McKenzie adds. All good — but once shoppers are equipped with their mobile devices, phones, tablet, “phablets” [hybrid, large screen phone] and suchlike and have the capacity to be online everywhere, what happens next? The answer appears to be a lot, but it’s not obvious. The physical and online worlds may be converging but, by any analysis, they are just different ways of garnering sales. The important point is that they do not become an end in themselves.

“To us, wi-fi is as important as electricity” Kevin McKenzie

Guy Smith, head of design at fashion retail group Arcadia and the man charged with creating interiors for formats as different as Topshop and Evans — a UK chain aimed at plus-size fashion shoppers — puts the point succinctly: “The pieces of technology that most shoppers have in their pocket are far in advance of what we can put into stores. Our efforts are directed at contacting them through this, therefore, and not to put large numbers of screens and kiosks in our shops.” Practically, for some, this has meant iBeacons. For the uninitiated, these are relatively cheap pieces of technology that allow retailers either to track where shoppers with mobile devices might be in a particular area of a shop, or to send opt-in messages to those wanting to know things about, say, products, prices or

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Community and technology: Bespoke at Westfield San Francisco promotions. The ultimate example of this in use is probably the Pro-Direct store just off London’s Carnaby Street. Here, beacons have been placed behind the interior’s perimeter panels to track where shoppers head in-store, making it more straightforward to identify the store’s merchandise hotspots. This is certainly interesting, but while there was a great deal of noise about beacon technology in the latter half of 2014, things have gone ominously quiet in 2015. This perhaps indicates a technology that will go the way of the QR code, which was used by retailers as an in-store marketing tool in the early years of the current decade. It is also worth noting that the plethora of screens that were installed in stores in the early 2000s has not added a great deal in terms of incremental revenues and, for this reason, the

“The pieces of technology that most shoppers have in their pocket are far in advance of what we can put into stores” Guy Smith

FARMING THE CITY Urban farms: A growth opportunity

THE ENGAGEMENT Migros development fund has supported UrbanFarmers in its creation of Farm Scout, an app that helps city dwellers to check the farming potential of roof spaces, courtyards and unused urban areas. It can determine whether a location is suitable for simple vegetable gardens or even commercial rooftop agriculture using aquaponics (fish breeding and plant cultivation). It can also be used to connect with others interested in urban agriculture and potential partners,

DO NOT MISS

Workshop Google How To Leverage Online Marketing Solutions To Drive In-store Traffic And Revenue? Wednesday, November 18, 15.30 MAPIC Innovation Forum

Farming The city Monetising Empty Commercial Rooftop Spaces With Urban Farms, by Urban Farmers Wednesday, November 18, 11.30 MAPIC Innovation Forum

including possible users, such as local restaurants. “One third of personal environmental pollution results from food. Committed pioneering projects such as UrbanFarmers demonstrate new ways we can produce good food with less impact on the environment,” says Thomas Vellacott, CEO of WWF Switzerland. The Farm Scout app will be available free of charge at the end of 2015 in the App Store and from Google Play.

DO NOT MISS Shaping the retail real estate era: smart experiences Thursday, November 19, 9.30 Oxford room

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Innovation INNOVATION: RETAIL IS DETAIL POPS UP AT MAPIC Netherlands-based pop up specialist Retail is Detail will be at MAPIC to showcase some of its work in what has become an increasingly important aspect of retail environments. The company estimates that in the last year, the sector produced over £2.5 billion in retail turnover in the UK (equivalent to 0.7% of total UK retail turnover) and in the next 12 months the sector’s growth rate is set to outstrip the wider UK retail sector by more than double, with consumers projected to increase spending in popups by 8.8%.

process, rather than being layered on top. “Technology is something that can be integrated from the beginning [when designing a store], which should mean that it actually has a longer life,” he says. So where does this leave the shopper and the retailer? Retail technology is evolving fast and perversely, if observers are to be believed, the more it becomes part of the store, the less we may be aware of it. Innovate and become invisible might be what shoppers are headed for, as the line between the physical and the digital continues to blur. Less (apparent) may really prove to be more.

A NEW SHOPPING & ENTERTAINMENT DISTRICT IN LAUSANNE

rush for in-store hardware has slowed, according to observers. The notion, therefore, that the store of tomorrow may well look similar to the pre-digital one has some credence inasmuch as the convergence of physical and online does not necessarily amount to large amounts of clunky hardware in store environments. The retailers’ experience has, to an extent, put paid to this. The challenge that faces physical shops and online retailers is to take the best elements of the opposing medium and make them available to the consumer. This may well be why we are increasingly seeing big-name online operations such as Google and eBay opting to set up shop-in-shops, or even the occasional standalone outlet — the need to have a foot in both camps, as it were, is as pressing for the virtual retailer as for those with the largest brick-and-mortar estates. David Dalziel, creative director and founder of the eponymous design consultancy Dalziel & Pow, makes the point that shoppers will increasingly be visiting stores where innovation and things digital are 038_MOBIMO_PV_PIC melded as part of the initial store design

Join us at Agora conferences room for our « workshop session » on Thursday November 19 th form 10am to 10.45am.

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DO NOT MISS RETAILTAINMENT When shopping malls become amusement parks Wednesday, November 18, 15.30 Oxford room Retailtainment pavilion: Pitching sessions throughout MAPIC

Lifestyle and F&B

Making experience count As consumers shift from buying things to buying experiences, food, beverage and entertainment have become a vital part of retail destinations. Mark Faithfull reports

HAT food and beverage (F&B) is continuing to enjoy huge success emanates from a confluence of factors — increasing dining out throughout the day, a better range and quality of food offers, the appetite for something new from consumers and for differentiation from landlords and, of course, the decline in shop numbers. “It’s about place-making,” says James Cons, managing director of Leslie Jones Architecture. “But landlords need to be aware that F&B operators are becoming more demanding. They want a proven pitch, good car parking and easy access. They want to be close to the action and they are less willing to compromise.” Indeed, shopping centres across Europe, the Middle East and Africa are the preferred destination for eating and drinking, according to leading global real estate advisor CBRE and its Food And Beverage In Shopping Centres

report. The views of 22,000 consumers in 22 countries across EMEA showed that 41% preferred to eat in shopping centres, compared to 10% in restaurants and cafes on the high street, and 7% in retail parks. A third of those interviewed visited shopping centres with the sole intention of eating or drinking. Four out of 10 then went on to shop, even if their reason for visiting the centre was just to eat or drink. Andrew Phipps, CBRE’s head of retail research and consulting, EMEA, says: “It is clear that the presence of a compelling food and beverage offer is key to driving footfall and revenue to a shopping centre. The days have gone when a limited fast-food offer or a drab food court was sufficient reason to visit. Now, they are a draw themselves.” Indeed, F&B has become the star performer in many shopping centres and developments, as can be seen from The Dining Experience and Fresh! by Unibail-Rodamco,

the street-food concepts by Land Securities and the multiple-format dining at Westfield London. One of the defining changes has been the internationalisation of chains. For example, the Asia Pacific division of SSP Group opened a new O’Learys at Singapore Changi Airport in June as the result of the agreement of a threeyear £4.2m contract earlier this year. The 225 sq m restaurant will seat 110 diners and will be open around the clock. O’Learys, one of Sweden’s best-known brands, currently has more than 100 restaurants around the world. Equally, entertainment is becoming a growing presence within malls, from themed areas to bowling, cinemas and niche offers. One of the fastest growing entertainment experiences is trampoline-based activity. Indeed, this summer, Las-Vegas-based Sky Zone’s locations passed the 100 open-locations mark (107 in August), with sites based in four continents.

AI Solve’ Interactive Environ: Transforming under-used spaces

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DO NOT MISS

Lifestyle and F&B

A table ! for a delicious discussion between F&B retailers, restaurants & shopping malls Thursday November 19, 16.30 Oxford room

The Changi Airport outlet continues Swedish-based concept O’Leary’s expansion “We charge people to jump,” says Jeff Platt, Sky Zone co-founder and CEO, of the trampoline-parks franchise business he started with his father, Rick. In the UK, Westfield London welcomed KidZania to its shopping centre earlier this year, with a further one or two sites expected to open around the UK in the future. Meanwhile, rival formats are also expanding, many based on education as well as entertainment. UK-based Ai Solve will be showcasing what it calls GAMIE (games, animation, movie, interactive, entertainment) at MAPIC. The virtualreality indoor entertainment attraction allows visitors to transform themselves into a virtual avatar with their own 3D face, personalise it and play a custom-themed mini-game using motionsensing natural gestures. GAMIE is available as a compact amusement arcade or modular coinoperated pod, or can be offered as an integrated bespoke attraction. GAMIE has already been implemented at Yas Mall, Abu Dhabi within Funworks a large family entertainment centre that is part of Landmark Group. Ai Solve will also be demonstrating Interactive Environs (IE), an infotainment kiosk that can transform under-utilised atrium/lobby spaces into mixed-reality interactive environments. “It’s a great way to engage visitors. They can interact with virtual-world environments and characters that complement the real-world objects

“F&B operators are becoming more demanding. They want a proven pitch, good car parking and easy access. They want to be close to the action and they are less willing to compromise” James Cons and spaces,” says Ai Solve CEO Devi Kolli. Si m i larly, the U K’s Bandai Namc o Entertainment is celebrating the 25th

anniversary of its emblematic Pac-Man and presents its gaming heritage as a leading global publisher and developer of interactive content for platforms. It includes all major video game consoles and PC, with marketing and sales operations in 50 countries across Europe, the Middle East, Africa and Australasia. Global bowling specialist QubicaAMF will arrive at MAPIC having taken the operation under single ownership. “With this transaction we are going back to our roots, and believe we are positioning our company, and the entire bowling industry,” says CEO Emanuele Govoni of the deal. “We are very excited about the potential and the opportunities around the future of bowling.” Since 20 09, Italy’s Dedem has been

ELLIA ART GALLERY INTRODUCES ‘ARTERTAINMENT’ Paris-based Ellia Art Gallery will bring ‘artertainment’ to Cannes this November as the CEO Stephane Ellia showcases ‘Art Experience for MAPIC’ on Level -1 of the Palais des Festivals. Ellia believes that shopping centres can help create differentiation by introducing contemporary street art to malls and there will be examples at Pop-Up Gallerie 208 for MAPIC (Riviera 8). “Many city centres malls have lost their sense of urban place and using art is a really powerful way of introducing something new and relevant to the urban fabric of the location,” he said. “We’ll be showing something interactive and engaging at MAPIC that shows what can be achieved.”

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diversifying its own activities, focusing it on the opening of facilities dedicated to the world of entertainment and automatic games in major shopping malls in Italy. Of course, as retail and leisure mix, sometimes it’s retail that follows leisure. In the UK, AEG and Crosstree Real Estate have appointed Eastdil Secured to find £185m to finance a designer-outlet scheme at the O2 Arena in Greenwich, London. Debt broker Eastdil has approached a number of lenders to secure the funding, which could see up to 230,000 sq ft (21,367 sq m) of retail space added to the events and leisure site. Anschutz Entertainment Group wants to build a designer-shopping centre to rival Bicester Village in Oxfordshire at London’s O2, and already has planning permission for 118 designer shops with bars and restaurants. It will be housed on the ground floor and an unused balcony on an upper level of the O2 that had previously been earmarked for a super-casino. And Apsys is developing the Vill’Up mall within the Cites de Sciences museum in Paris, although a fire in August has delayed the planned October 15 opening. Apsys is currently assessing the impact of the damage. “We are really affected by this issue, as the project is really important to us. We are setting every human and technical means to open this emblematic project in the best time,” says Maurice Bansay, founder and CEO of Apsys.

THAT’S RETAILTAINMENT AS PAVILION DOUBLES SIZE AT MAPIC Retailtainment will be a headline topic at MAPIC 2015, reflecting the increasing integration of leisure activities and retailing. The pavilion dedicated to retailtainment is doubling its exhibition space to showcase the vast diversity of offerings, attracting 20 international players from this sector. The retailtainment pavilion will feature international exhibitors along with a pitching area where they can present their concepts in 30-minute sessions, plus a networking-friendly area around the Leonidas Café. Among the activity concepts, Sky Zone (USA); Whitewater West Industries (Canada); Koezio (France); and Bandai Namco (UK) are all exhibiting for the first time at MAPIC alongside companies such as: Aerodium Technologies (Latvia) Ai Solve (UK) and ISS (Germany), which all attended last year. MAPIC will showcase companies such as Dutch firm Jora Vision and the Canadian Forrec, the latter a first-timer at MAPIC in 2015, the Belgian firm KCC Entertainment Design, Walltopia, Dedem Automatica, AEG Europe, Playtime and QubicaAMF, which will install a bowling alley. Adding a leisure component into retailing is essential for ensuring a great consumer experience. Retailtainment will also be covered in the conference programme with a dedicated session When shopping malls become amusement parks (Wednesday, 18 November at 3:30pm), including DreamWorks Animation, which create theme parks based on their animated films.

WELCOME TO

CANADA WE ARE OPEN FOR BUSINESS

THURSDAY NOVEMBER 19TH 11-11:45AM AGORA ROOM, PALAIS DES FESTIVALS Come and learn about the opportunities for growth in the Canadian Retail Landscape. CHRIS TARRANT / Moderator

Executive Vice-President, Real Estate Services Oberfeld Snowcap, an innovative Canadian real estate and advisory services firm for over 35 years. This session will provide you with unique insight and perspective on why Canada should be a destination for your retail brand expansion strategy. Our panel includes Canada’s key players in the shopping centre industry and international retailers. PANELISTS: Andrew Lutfy Owner & CEO Groupe Dynamite Bradley P. Jones Vice President of National Retail Leasing Oxford Properties Group Darryl Schmidt Vice-President of National Leasing The Cadillac Fairview Corporation Limited Marc Lehr Managing Director Global Retail / Senior Manager Wholesale Europe Gerry Weber Sean Walters Senior Vice President, National & Mills Leasing Ivanhoé Cambridge For more information, please contact Suzan Zalter at: suzan@oberfeldsnowcap.com STAY IN TOUCH WITH US! www.oberfeldsnowcap.com

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Complete Retaitainment programme on page 46

In a dedicated retailtainment pavilion, entertainment experts will showcase their projects and demonstrate how entertainment has become an essential and attractive component for shopping areas. With 30-minute speaking opportunities, they will present how their business is key to the real estate industry.

A special conference dedicated to Retailtainment

RETAILTAINMENT When Shopping malls become amusement parks Wednesday 18 November 15.30-16.30 â&#x20AC;&#x201C; Oxford Room

EXHIBITORS AND PITCHING SESSIONS

L NA IO AT RN TE IN

DO NOT MISS

How to turn transit zones into terminus retail destinations Wednesday, November 18, 9.30 Oxford room

Travel retail

The sixth continent According to French brand L’Oreal, the “democratisation of travel” has created a new “sixth continent” of consumers ready to buy during their journeys. Mark Faithfull reports

ot only did 1.087 billion people travel internationally last year — equivalent to approximately 15% of the global population — but they spent a collective $1,159 billion. Such astonishing figures moved L’Oreal to dub travel “the sixth continent” and retailing and travel have increasingly merged, feeding off each other directly and indirectly. So while retail first moved to fulfil consumer needs with airport retailing, latterly schemes close to airports have opened such as UnibailRodamco’s Aeroville scheme in Paris and McArthurGlen’s Vancouver Airport designer outlet, with the boom also mirrored in retailing based around rail networks. Take Grandi Stazioni, the company currently controlled 60% by the State Railways and 40% by Eurostazioni, which includes Edizione (Group Benetton), Vianini Lavori Spa (Caltagirone Group), Pirelli and SNCF covers Central Milan, Turin Porta Nuova, Genoa Brignole and Genoa Piazza Principe, Venice Mestre and S. Lucia, Verona Porta Nuova Central Bologna, Florence SM Novella, Roma Termini, Tiburtina, Naples Central. It is looking to spin-off operations into two businesses, GS Immobiliare and GS Retail,

with the private partners upping their stake in the retail element in return for ceding their holding in the other business. Should full approvals go to plan, the deal should be concluded by the end of the year, which would free

GS Retail to embark on ambitious expansion plans. In the UK, Paddington in London is the next project for Network Rail, which says the existing retail area, known as The Lawn, will

McArthurGlen’s Vancouver designer outlet

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Travel retail receive “significant” investment to create a modern facility for passengers, with renovation work taking place over the next 18 months. The rail owner and operator is aiming to deliver a suitable mix of retail units for passengers, while creating a destination station in its own right. An upgraded retail experience at Paddington has become necessary with the number of people using the station expected to increase significantly from the current figure of approximately 60 million per year, following the opening of the new Crossrail service in 2018 as well as continued development in the local area. Retail developers are also getting in on the act. Last year ECE opened BahnhofCity Wien Hauptbahnhof, featuring 90 shops at a shopping centre integrated with the rail transport network. The 20,000 sq m, two level mall has been constructed by ECE, working with Osterreichische Bundesbahnen (Austrian Federal Railways, OBB). Around the station, a new city quarter for shopping, service outlets, restaurants, hotels and offices has been built. In the new district, ECE has also developed a hotel for

Unibail-Rodamco’s Aeroville captures retail spend from travellers using the nearby airport the operator Motel One. Alexander Otto, CEO of ECE, said: “BahnhofCity Wien Hauptbahnhof is already the second railway project for ECE in Austria. We are very pleased to be at this premium location with

international top brands and a diverse range of restaurants and services.” In July, the 22,500 sq m McArthurGlen Designer Outlet Vancouver Airport opened — a joint venture between McArthurGlen

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Travel retail and Vancouver Airport Authority — which is easily accessible via public transport and just three minutes away from the airport. “Not only will the centre become a key tourism destination in our region, it’s also important to YVR’s role as a key economic driver,” says Craig Richmond, president & CEO, Vancouver Airport Authority (YVR). “Through the designer outlet, we are creating jobs and a valuable source of non-aeronautical revenue that helps YVR.” A second phase of 12,500 sq m is set to open in 2017 and the design reflects a blend of European heritage and traditional Vancouver architectural style, in particular the distinctive brick facades of the city’s historic and vibrant Gastown district. In France, Unibail-Rodamco opened the Aeroville shopping centre in 2013, an 83,300 sq m mall featuring a strong tenant line-up and Aeroville offers a free shuttle bus from Roissypole (Terminal 3 of Charles De Gaulle Airport), plus a dual language website aimed at 022_SCPG_PV_PIC attracting domestic and international visitors.

RAIL POINTS AS OMNI-CHANNEL HUBS IN THE UK both Network Rail and Transport for London (TfL) have worked extensively to use their real estate as a platform for working with e-commerce retailers. Network Rail has backed click-and-collect specialist Doddle, which has been opening branded ‘stores’ at a rapid rate around the country. However, UK grocers Tesco and Sainsbury’s have withdrawn from a tie-up with TfL, which offered a click-and-collect service for the grocers’ customers at London Underground stations. The scheme, which launched about 18 months ago, operates outside stations across London, with grocery groups Asda, Ocado and Waitrose also signed up. It has emerged that both Tesco and Sainsbury’s have decided not to continue with the initiative over a lack of take-up by their customers. Tesco had operated click-andcollect at 10 stations as a “trial”, it said, while Sainsbury’s also said it had operated the collection points as a trial. Feedback from customers indicated that the majority of pick-ups were from people who drove to the stations to collect, rather than the anticipated uptake from commuters picking up their shopping on the way home. TfL introduced the idea in 2013 to allow customers to order online and collect from one of 10 station “hubs”. It was one element of a wider plan to better use the vacant space across its network.

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INTRODUCING THE SAN MARINO OUTLET EXPERIENCE

THE NEXT PLACE TO BE Next level shopping San Marino unique location Modern retail platform Visit us: Palais pavillion, stand P-1.M11 info@themarket.sm â&#x20AC;˘ www.themarket.sm Leasing Agent: DEA Real Estate Advisor | Ph. +39 02 9286.4396 | info@dea-re.it | www.dea-re.it

SAN MARINO OUTLET EXPERIENCE

DO NOT MISS Pop up store – upcoming retail: pop-up stores, commercial events, concept stores...what are the best physical solution for ecommerce? Thursday November 19, 11:30 Oxford room

OUR PARTNERS’ VOICE

Pop-up stores

Pop-ups top brand growth A report produced by IFLS for MAPIC looks at the reason for pop-up growth and how brands can achieve the most from temporary stores. IFLS director of studies Sylvie Guingois explains

The Grand Playground pop-up store in Paris

The Tiger of Sweden pop-up store in Galeries Lafayette on Boulevard Haussmann in Paris

ETWEEN a street marketing operation and a new physical retail format, pop-up stores appeal to brands, retailers and pure players alike. All are now relying on the new format of agile retail that helps build relationships with consumers and is an increasingly common sight in city centres, shopping centres, transport hubs (stations, airports, etc) and tourist resorts. Wherever they emerge, pop-up formats create an event and add a fresh element to the retail experience, which is likely to attract shoppers in search of new and original offers. As more and more people buy online, consumers are looking for original and fun shopping experiences when making the effort to travel for shopping into town centres or shopping destinations. Consumers particularly like to be surprised by pop-up stores during the daily commute, on vacation or while traveling. Another advantage of the format is that it suits brands in different scenarios, such as product launches, line extensions or testing new store concepts. More broadly, pop-up stores are very effective at strengthening brand awareness in synergy with media campaigns and online support. All operations related to pop-up stores also complement social networks, create physical brand representation and enhance events, such as sporting or cultural occasions.

“Pop-up formats create an event and add a fresh element to the retail experience” Sylvie Guingois

To ensure the success of a pop-up operation, it is essential to respect the retail fundamentals. Retailers and brands must choose a location with high traffic in line with consumer targets. The site also needs to be in line with the brand DNA, while fitting the criteria for account size, duration, on-site staffing, the volume of samples for sale and the number of activities offered. In addition, the popup must provide an immediate and easy way to be relayed through social media and networks (for example, quizzes, space for selfies, workshops, etc). It is also a good idea to incorporate digital tools, so that shoppers can comment, share, try products or register via Facebook, Twitter, online ordering, product customisation, contests, etc. By creating pop-up stores online, the brand becomes multi-channel, which means for the consumer that the link is made between the two.

Many pop-up stores are non-commercial. Removing the retail portion, they become solely communication media. For commercial operations, selling locally is an important dimension. Such a purchase is more involving for the consumer in relation to the brand than simple sample distribution. And greater involvement with the brand means that the consumer is more likely to become a brand ambassador on the social networks.

Pop-Up Stores, The New Star Of The Retail Format was published by IFLS in July 2015, available in French only. The IFLS/MAPIC study examines the pop-up store phenomenon in Europe, analyses the elements to consider when creating a pop-up format and considers the benefits of such retail platforms

DO NOT MISS Official presentation of the IFLS / MAPIC survey during the conference “Upcoming retail : pop-up stores, commercial events, concept stores…what is the best physical solutions? Thursday November 19, 11:00 Oxford room

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Time

Space

18-20 November 2015

Riviera 7 â&#x20AC;&#x201C; L15

We understand your time at MAPIC is valuable. Pre-book time with our retail and leisure experts: www.jll.eu/mapic

|E CE AN TR EN

Meet the JLL Team

XI T

Opportunity

On the road

Around the world with MAPIC The MAPIC concept made its debut in Shanghai, China in June, with Meetup events held in London, Paris, Milan and New York over the summer. Our writers report from Europe, Asia and the Americas

UK: LONDON, JUNE 4

CHINA: SHANGHAI, JUNE 11-12

MAPIC in the UK: Creative thinking needed DESPITE the UK’s relatively robust retail recovery in comparison with much of the eurozone, panelists at the London MAPIC Breakfast Meeting in June cautioned that business rates and inflexible rents still created challenges for expansionist retailers. Annabel Kilner, head of UK at online homewares retailer Made.com, said that the company had opened two showrooms. However, “in order to stay lean”, she added, it might well look to develop showrooms in alternative buildings rather than stores, as well as at pop-ups and concessions. Karen Harris, managing director of Intu Digital, the digital arm of shopping-centre owner Intu, added that leisure and retail continued to merge and reflected that “the challenge is for retailers to adapt quickly enough”. It was a point taken up by David Cash, chairman of BDP, who said: “We need to be thinking more creatively about leisure. It’s very easy to convert a few stores to food and beverage, but there are so many other things that need to be added to shopping centres to make them more appealing.” Robert Bonwell, CEO, EMEA at JLL, also picked up on the seismic change in the market. “It is all tied up in how investment in real estate has traditionally taken place, which means there is not a clear picture in terms of development and asset management,” he cautioned.

Mark Faithfull United Kingdom: A Boarding Gate To Europe For International Retailers? Wednesday, November 18, 9.30 – Champs-Elysées room

CHINA’s retail industry gathered in Shanghai on June 11-12 for Retail Real Estate Market, Powered By MAPIC — the first international forum for retail and real estate development to be held in Greater China. Around 300 professionals, among them over 150 retail brands, shoppingmall owners and investors met at the InterContinental Shanghai Puxi to discuss and debate the outlook for retail within the world’s fastest growing economy. China, although in a period of reduced growth, has seen its retail sector continue to expand at pace. Last year, the country’s domestic retail market grew a staggering 11.6% year-on-year, despite GDP growth slowing to a five-year low of 7.3%. By 2018, China is expected to surpass the US as the world’s largest retail market. At the conference, delegates focused on new government regulations to stimulate domestic consumption, such as lowering import tariffs by an average of 50%, which became effective on June 1. “Most mall owners will be pleased with the new regulation, which is a very good policy to meet the needs of local customers,” said Lucy Wu, vice-secretary general of the China Chain Store and Franchise Association. Spanish retail giant Mango reported that the outlook in China for fastfashion brands remains very positive. “Since 2012, Mango has experienced amazing momentum, expanding on average 30% year-onyear, like-for-like,” said David Sancho Grau, CEO of Mango China. “Franchises are still a big piece of the cake in China,” he added. Panelists also spoke about the new challenges facing shopping-mall owners amid the rise of online e-retail titan Alibaba. Wang Ping, country development director of restaurant chain Xibei, said the solution lay in innovation and offering shoppers unique, entertainment-focused experiences. “We are going to see a huge number of totally new-style malls appear in the next few years,” she said. Meanwhile, others asserted the on-going need for brick-and-mortar offerings, in particular those that integrate technology and social media. “We are all convinced that traditional retail is not dead… We are going to be here for a couple of years talking about O2O [online to offline],” said China-based Massimo Roj, CEO of Italian architect Progetto CMR. Chinese Experience: How To Successfully Expand Your Business In China, co-organised with China Chain Store & Franchise Association Wednesday, November 18, 10.30 – Champs-Elysées room

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On the road ITALY: MILAN, JUNE 30

FRANCE: PARIS, JULY 2

US: NEW YORK, JULY 14

MAPIC in the US: Country of Honour MAPIC in Italy: Launching new event

MAPIC in France: Pop-ups report

ITALY has always been one of the best represented countries at MAPIC. This year will be no exception, with two dedicated sessions in the conference programme and, for the first time, a special networking lunch for Italian businesses and international investors. So it was no surprise that MAPIC used its networking event in Milan to launch MAPIC Italy, also to be held in Milan at the end of May 2016. Massimo Moretti, president of industry body CNCC (National Commercial Centres Council) and head of retail at Beni Stabili SIIQ, said: “The CNCC has played the starring role in prompting renewed international interest in Italy. Italy is back on top and the proof is the opening of the many new shopping centres scheduled for next year.” Filippo Rean, real estate division director at Reed MIDEM, added: “It is clear that some leading retail markets, like Italy, deserve a dedicated national event. We are extremely grateful to the CNCC and other key sector players for their support of our initiative.” A number of new developments are coming to market in Italy, including Milano Santa Giulia, a city district in downtown Milan. Davide Albertini Petroni, Risanamento general manager, said: “It is the retail and leisure offering, situated at the heart of the community, which makes this development unique. Santa Giulia [offers] shopping, restaurants, entertainment and office facilities that integrate perfectly within its immediate urban context, which consists mainly of residential, entertainment and office buildings.”

FOR ITS first Meetup event in Paris, MAPIC focused on pop-up stores, commissioning research from IFLS (Institut Francais du Libre Service), which was discussed by a panel of experts. “The question we asked was whether popup stores will be a long-lasting trend in retail or just a fashion phenomenon,” said Sylvie Guingois, research director at IFLS. The institute’s analysis of the latest pop-up stores launched in France indicate that their quicly changing retail offer responds to the public’s demand for new and exciting shopping experiences. They also enable shopping centres to fill vacant space with newcomers, while enabling brands to test new concepts and products cost effectively. Jean-Francois Bouvier, Klepierre’s brand ventures director, said that the French real estate investment company is a strong believer in the pop up-store concept. He added that Klepierre created a dedicated three-person unit for pop-up store operations within its shopping centres three years ago. Jean-Luc Calonger, executive chairman of the Belgian town-centre management association (AMCV), said he welcomed the social role of pop-up stores in “generating flux within the city centre”. Meanwhile, two young French entrepreneurs, Nicolas Jambin, CEO and co-founder of HopShop, an online platform for renting vacant sites for pop-up stores, and Guillaume Gibaut, CEO and founder of the specialist brand Le Slip Francais, highlighted the opportunities offered by pop-up concepts to brands and retailers in terms of sales and buzz. “But it is necessary to be in a good site at a good moment with an offer that is really original,” Gibaut said.

RELATIONSHIPS and education were the themes of the final MAPIC Meetup, held appropriately on Bastille Day at Stollway in Midtown Manhattan. Around 100 senior retail and real estate professionals gathered at the invitation-only cocktail event to learn more about retail trends in the US and globally from guest speakers, and to preview MAPIC. Faith Hope Consolo, chair of Douglas Elliman’s Retail Group in New York, noted that her own team attends Cannes event regularly to build relationships with retailers and property owners. Jason Richter, CEO and founder of New York City-based Capricorn Asset Management and the US representative for Perfumania, recalled that, as a first-time attendee in 2014, MAPIC provided him with introductions to landlords and licensees. “In a way that was more qualitative than quantitative,” he added. “It was very impactful.” Creating relationships with a community is the driving force behind Rain Africa, which sells fairtrade and cruelty-free skincare products made in South Africa. The company has nine domestic stores, two in New York and one in Los Angeles, and is planning to expand into Europe. “Our people are what really make the company,” said Jaci Eubanks, US partner of Rain Africa US, describing the company’s employment of refugees and the assistance it provides to abused women and families. “We support opportunities where there is pretty much nothing,” she added. Maintaining the proper relationship between a company’s prototype and the local culture is also critical, observed Ryan Patel, vice-president of global development for Los Angeles-based Pinkberry Ventures. This approach has helped the yoghurt chain to expand from 95 stores to 270 units in 23 countries. “You have to be flexible, but you also must protect the brand,” Patel said. “This conversation happens at MAPIC.”

Anika Michalowska

Debra Hazel

For full information on French events see p21

For full information on USA events see p.36

Paola Nicolai Italy: The New Retail Planet? Coorganised with the Italian Council of Shopping Centers and sponsored by Promos, CDS and Cogest Retail Thursday, November 19, 17.00 Champs-Elysées room

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CONFERENCES PROGRAMME MAPIC’s conferences welcome over 60 retail property experts. Come meet them and discover their insights into retail real estate opportunities, concepts, strategies and trends.

A SELECTION OF KEY SPEAKERS

A WORLD CLASS PROGRAMME

Massimo BAGGI Head of Marketing & Ecommerce Iper Italy

Sebastien BISMUTH CEO Undiz France

FOLLOWING THE TRENDS

Eduardo CARNEIRO Sr Director - Global Business Development Chico’s United States

David CASH Chairman BDP United Kingdom

James DOLPHIN International Retail Director JLL United Kingdom

Sana DUBARRY Director Strategy & Insights Epsilon France

Roman GAUS Founder & CEO UrbanFarmers Switzerland

Denis GERVAIS Founding Partner GH+A Design Canada

Guillaume GIBAULT CEO Le Slip Français France

Elodie GUYARD CYRUS Digital Marketing Manager Hammerson France

Kenneth HIMMEL President & CEO Related Urban United States

Brian JOHNSTON International Managing Director Wagamama United Kingdom

Dmitry KOSTYGIN Chairman of the board Ulmart Russian Federation

Paul KURZAWA Head of Global Retail Development and Entertainment DreamWorks Animation United States

Mario MANNA General Manager Camicissima Shangai Trading Italy

Bill MCCARTHY CEO ShopperTrak United Kingdom

Michael O’MALLEY Director RMB Westport South Africa

Nicholas RUSSELL CEO We Are Pop Up United Kingdom

Tiziana TINI Web Marketing Coordinator LuisaViaRoma.com Italy

Franck VERSCHELLE CEO Advantail France

and many more...

Oxford room Discover evolving retail real estate trends: • Latest concepts and innovations in retail • The new relation between customers and brands • Shopping centres 3.0: entertainment, leisure and culture

Dedicated sessions: • Travel Retail • Outlet • Highstreet Retail • Retailtainment • Luxury

• Design • Pop Up Store • Requalified retail areas • Investment • Food & Beverage

SHOPPING THE WORLD Champs-Élysées room Explore the retail real estate indusrty: • Retail property market overview • International practical business cases • Prospective solutions from all over the world

Dedicated sessions: • UK • China • USA • France • Russian Federation • Middle East

• Belgium • Scandinavia • Sub Saharan Africa • Spain • Turkey • Poland • Italy

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MAPIC INNOVATION FORUM

RETAILTAINMENT

Palais - 1

Retailtainment Pavilion

From online-to-store, click & collect, and omnichannel to mobile shopping and big data, new technologies are impacting retail outlets, transforming the relations between brands and consumers, and opening up new opportunities. MAPIC is engaging with these changes via its dedicated pavilion, the MAPIC Innovation Forum (MIF), where conference speakers and exhibitors will showcase their new concepts and solutions. • Exclusive

• 12+ partners pitching sessions

Conferences:

- How to capture data for business growth? Wednesday 18 November, 10.00-11.00 - The omnichannel experience: connecting shoppers or connected shopping? Thursday 19 November, 10.00-11.00 - Retail real estate prospectives: Go shopping tomorrow! Thursday 19 November, 16.45-17.45 • Exclusive

Workshops:

L NA IO AT RN TE IN

How to leverage online marketing solutions to drive in-store traffic and revenue? Wednesday 18 November, 15.30-16.30 State of 020 in China trends & best practices by China Connect Thursday 19 November, 15.30-16.30

• 10+

partners pitching sessions

DO NOT MISS: Official retailtainment session When Shopping malls become amusement parks Wednesday 18 November, 15.30-16.30 Oxford Room Special guest: Paul KURZAWA Head of Global retail development and entertainment DreamWorks Animation United States

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CONFERENCES PROGRAMME WEDNESDAY 18 NOVEMBER

FOLLOWING THE TRENDS Oxford room

TRAVEL RETAIL

9.30-10.30 How to turn transit zones into terminus retail destinations?

OUTLET

SHOPPING THE WORLD Champs-Élysées room

9.30-10.30 United Kingdom: a boarding gate to Europe for international retailers? Co-org : Cushman & Wakefield

CHINA

MAPIC INNOVATION FORUM Mapic Innovation Forum

(PITCHINGS)

(WORKSHOPS)

Retailtainment Pavilion

Agora

NICE / FRENCH RIVIERIA

9.30-10.45 How innovation & tourism can boost your business ? Org: Nice Metropole**

DATA

RRG GROUP / RETAILER PH

10.00-11.00 How to capture data for business growth? Co-org: Hammerson

10.00-10.45 Russian retail real estate market in 2015. Results. Forecasts.Technologies

10.30-11.30 Outlets as an exclusive shopping place: the new retail tourism hub Sponsored by Outlet Resource Group

10.30-11.30 Chinese experience: how to expand your business in China? Co-org: CCFA

TERALYTICS*

11.00-11.30 Human mobility insights for retailers derived from location based analysis of mobile network and credit card data.

PLAYTIME - 11.00-11.30 Engage your customers in creative play and how children bring their parents shopping

HIGHSTREET RETAIL

USA

URBAN FARMERS *

QUBICAAMF - 11.30-12.00

11.30-12.30 Highstreet retail, fun & food: reinventing human & cultural lifestyle Sponsored by Thor Equities

AGORA

RETAILTAINMENT

11.30-12.30 The Big Picture: The US The world’s most influential retail market Co-org: Time Retail Partners Sponsored by Chico’s

11.30-12.00 Monetising empty commercial rooftop spaces with urban farms

The new retailtainment concept mixing digital with physical experience and the best driver for family entertainment centers are Bowling and Mini Bowling !

SCPG

12.00-12.45 China within reach: Opportunities for expansion in China with SCPG

BREAK OPEN BOX SOFTWARE

13.45-14.15 - Implementing a mobile solution for your Real Estateportfolio-Atriumcasestudy

RELATED URBAN

14.00-14.45 Hudson Yards: Be in the Next

MOVVO* - 14.15-14.45 FRANCE

RETAILTAINMENT 15.30-16.30 When shopping malls become amusement parks

LUXURY

16.30-17.30 Goldrush : the new Eldorados for Luxury brands - Live Debate Co-org: Women’s Wear Daily

Fighting Showrooming though omnichannel some practical examples

14.30-15.30 Bienvenue en France : retail real estate, brands, ecommerce & retail : what is the French touch?

CONIQ*

RUSSIAN FEDERATION

WORKSHOP GOOGLE

15.30-16.30 Russian consumption market : key facts for growth Co-org : Impress Media Sponsored by FASHION HOUSE Group

MIDDLE EAST

16.30-17.30 Middle East: the answer to international retailers demands? Sponsored by Arabian Centres

CLIP’N’CLIMB

14.30-15.00 The new trend in active indoor leisure - Over 50 Fun Climbing facilities around the world

14.45-15.15 What Kind of ROI Should You Expect From a Shopping Centre Loyalty Program?

15.30-16.30 How to leverage online marketing solutions to drive in-store traffic and revenue?

OPEN STAGE COMPETITION 16.45-17.15 Exclusive pitch from the open stage winner selected by the audience

WHITEWATER WEST INDUSTRIES - 15.30-16.00

Riding the Wave to the new Retail experience

AI SOLVE - 16.00-16.30

How do virtual reality and immersive reality can help differentiate and transform shopping spaces into entertainment and lifestyle destinations

CNCC

16.00-16.45 Shopping Centers: the Italian way

SKYZONE FRANCHISE GROUP

16.30-17.00 - SkyZone: trampoline parks from the US

AVIAPARK SHOPPING CENTERS

PLACEMETER*

17.00-17.45 Aviapark centre : a year of challenges and victories

17.30-18.00 - Walk-in rate: a new way to maximize store revenue with Placemeter

ARCH* - 18.00-18.30

ARCH LED screens and lighting manufacturer: It is all about differentiation

Contact Contact :: Guillaume Guillaume DAMAY DAMAY -- guillaume.damay@reedmidem.com guillaume.damay@reedmidem.com

* Pitching ** Verrière Grand Auditorium

As of 1st October 2015, may be subject to change

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CONFERENCES PROGRAMME THURSDAY 19 NOVEMBER

FOLLOWING THE TRENDS Oxford room

SHOPPING THE WORLD Champs-Élysées room

MAPIC INNOVATION FORUM Mapic Innovation Forum

RETAILTAINMENT (PITCHINGS)

Retailtainment Pavilion

AGORA

(WORKSHOPS)

Agora

BELGIUM DESIGN

9.30-10.30 Shaping the retail real estate era: smart experiences

9.00-10.30 Retail real estate in Belgium & Luxembourg: zoom on the next development projects Co-org: Belgian Luxembourg Council of Shopping Centers

SCANDINAVIA

10.30-11.30 Working, cycling, shopping: the Scandinavian way of life Co-org: Nordic Council of Shopping Centers

POP UP STORE 11.00-12.30

11.00: Official presentation of the IFLS/ MAPIC Survey - Pop up store : The new flagship retail model 11.30-12.30 - Upcoming retail: pop-up stores, commercial events, concept stores...what are the best physical solution for ecommerce ? Co-org : IFLS

SUB SAHARAN AFRICA 11.30-12.30 Sub Saharan Africa: is the magic formula luxury or mass market? Sponsored by RMB Westport

OMNICHANNEL

10.00-11.00 The omnichannel experience: connecting shoppers or connected shopping? Co-org: INfluencia

XOVIS*

11.00-11.30 3D based people tracking

MOVVO*

11.30-12.00 Ways to leverage consumer behaviour data. How to collect that data (Indoor tracking) and what actions can be taken?

KOEZIO- 10.00-10.30

The next-gen immersive indoor theme park

AERODIUM TECHNOLOGIES

MOBIMO MANAGEMENT SA

10.00-10.45 FLON - A new district to experiment

10.30-11.00 Anyone can fly - entertainment for wide audience

ADVENTURE FACILITY CONCEPTS & MANAGEMENT LTD

11.00-11.30 - Adventure Concepts in Shopping Centers

OBERFELD SNOWCAP

11.00-11.45 Welcome to Canada - We are Open for Business

BANDAI NAMCO

11.30-12.00 Introduction of new standards in FEC - Flexible theming and educational content

SPAIN - 12.30-13.30 Spanish retail real estate market: focus on new projects Co-org: Asociacion Española de Centros y Parques Comerciales

NEWMARK GRUBB KNIGHT FRANK

12.00-12.45 U.S. Gateway City Trends

BREAK IMS* - 13.45-14.15 IMS sensory media - innovative marketing, innovative branding

CBRE UK

14.00-14.45 Luxury session

ARCHAIO* - 14.15-14.45

REQUALIFIED RETAIL AREAS

14.30-15.30 Re-enchant retail areas: from abandoned areas to urban retail parks - The new shopping dream Co-org: RegioPlan

INVESTMENT

15.30-16.30 Shopping malls, outlet, highstreets...Where are the retail, the best retail places to invest?

TURKEY

14.30-15.30 Turkey: better, faster, stronger… Co-org: AYD (Turkish Council of Shopping Centers)

POLAND

15.30-17.00 Polish retail real estate market: focus on new projects

Archaio: The New Standard in Cloud Inspection Management

ARFORIA*

14.45-15.15 Emerging 3D technologies for developers and retailers

WORKSHOP CHINA CONNECT

15.30-16.30 State of O2O in China Trends & best practices by China Connect

DEDEM AUTOMATICA 15.30-16.00 Youngo, the new Brand of Leisure

FORREC

16.00-16.30 Putting the Guest experience first in retail destinations

JORAVISION

FOOD & BEVERAGE

16.30-18.00 "À table !" for a delicious discussion between F&B retailers, restaurants & shopping malls - Bon appétit ! Co-org & sponsored by GHA

KCC - 15.00-15.30 Entertainment and retail. Examples and numbers

PROSPECTIVES ITALY

17.00-18.30 Italy: the new retail planet? Co-org: Italian Council of Shopping Centers Sponsored by Promos, CDS and Cogest Retail

Contact : Guillaume DAMAY - guillaume.damay@reedmidem.com

16.45-17.45 Retail real estate. Go shopping tomorrow!

16.00-16.45 Unveiling the hidden power of Turkish economy

16.30-17.00 Retailtainment: Why and where do you start?

METROQUADRO SRL

17.00-17.45 M2 Italian Designer Furniture - Retail 3.0

WRAP UP & FINAL PRESS CONFERENCE

17.45 N. Depetro MAPIC Director

BMD OF TURKEY

* Pitching

As of 1st October 2015, may be subject to change

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NETWORKING EVENTS PROGRAMME TUESDAY 17 NOVEMBER • 19.30

Opening cocktail - Mapic 2015 Official Sponsor, Majestic Hotel

WEDNESDAY 18 NOVEMBER • 8.00-9.00

Welcome meeting Champs-Elysées room - Palais 1

• 9.30-10.45

Breakfast Nice Métropole - “Nice / French Riviera: How innovation & tourism can boost your business ?” - Organiser: Nice Métropole Verrière Grand Auditorium - Palais 1

• 11.30-13.45 Official French territories lunch - How to recover retail in French city centres? Verrière Grand Auditorium - Palais 1 • 12.00-13.00 Speed Matching*: Franchise partners meet retailers (pre-registration required) Mapic Innovation Forum - Palais 1 • 19.00-23.00 Turkey Investors Networking Dinner Majestic Hotel

THURSDAY 19 NOVEMBER • 8.00-9.30

USA breakfast - Sponsored by: ACADIA, CBRE, THOR EQUITIES Verrière Grand Auditorium - Palais 1

• 8.00-12.00

Russian Breakfast - Organiser: Impress Media Majestic Hotel, salon Croisette

• 11.00-12.00 Learn how retailers successfully launched their brand in the U.S - Organiser: JLL Verrière Grand Auditorium - Palais 1 • 12.00-13.00 Flash Mob* MAPIC Innovation Forum - Palais 1 • 13.00-14.30 Italian lunch - Sponsored by: COGEST RETAIL SRL, PROMOS SRL, CDS HOLDING SPA Verrière Grand Auditorium - Palais 1 • 19.30-22.30 MAPIC Awards Gala Dinner - Mapic 2015 Official Sponsor, Grand Hyatt Cannes Hotel Martinez • 22.30

MAPIC Party - Official MAPIC Party sponsor,

SPEED MATCHING* Pre-registration required. “Speed Matching” is the ultimate networking experience to help accelerate business efficiently. Hone your pitch, bring a stack of business cards and spend 3 highly productive minutes with other parties eager to do business with the right partner. This session is dedicated to franchise partners meeting with at least 10 retailers after previous registration before show.

FLASH MOB* NEW this year, we’re offering a unique chance for you to make new connections with retailers attending MAPIC for the first time. Stop by the MAPIC Innovation Forum for this high value, high energy facilitated session. 1 hour, no speeches- it’s the flash mob rule!

*Contact conference: salema.cadersaib@reedmidem.com

51 The Le Prado centre in Marseille

France

Vive la difference

The French retail real estate market has been influenced not only by its biggest players becoming bigger but by widespread adoption of digital technology. Mark Faithfull looks at a reshaping sector.

f the French retail property market was once criticised for being somewhat conservative, the description certainly does not stand up any longer. Not only have its players become some of the largest in the world, following the mega-mergers of Unibail with Rodamco and Klepierre with Corio, plus the reformation of supermarket giant Carrefour’s dedicated domestic and international real estate divisions — but the country’s retailers and shopping centre developers have become some of the most digitally advanced

globally. From spearheading click & collect, particularly variations on ‘drive’, to the integration of digital into malls, the French retail market is now a trailblazer and the results are showing great potential. Carrefour reported positive sales growth in France in the first half, up 6.3% excluding petrol, with increases at all store formats. It has been joined by Casino and Auchan in making larger formats a priority. Initiatives are already having an effect at Casino, which cited investments at Geant

as one of the contributory factors to improvement in Q2 results, revitalising its hypermarket business. Meanwhile, Auchan is trying to move from a store brand to a cross-channel brand. As part of its renewed image in France, it is rebranding hypermarkets, adding ‘.fr’ to the end to reflect its omni-channel credentials. As channels continue to blur, retailers are also investing in their convenience stores. Casino is rolling out a new Franprix concept; Auchan is expanding the A2Pas banner and is

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THE REAL ESTATE WORLD We hope to see you at our next events 8-9 September 2016 Osaka, Japan

19-21 October 2016 London, United Kingdom

www.mipimjapan.com

www.mipimuk.co.uk

15-16 June 2016 Shanghai, China www.retail-real-estate-shanghai.com

15-18 March 2016 Cannes, France www.mipim.com

24-25 May 2016 Milano, Italy www.mapic-italy.it

1-2 December 2015 Hong Kong www.mipimasia.com

16-18 November 2016 Cannes, France www.mapic.com

France Altarea Cogedim took a 100% stake in the Qwartz centre in Villeneuve-La Garenne

targeting 100 stores by 2016; while Carrefour is working to encourage more frequent repeat visits at its Market fascia. At the end of August, Carrefour announced the planned acquisition of non-food website Rue due Commerce, to strengthen its position in this area from Altarea Cogedim. This acquisition would allow Carrefour to accelerate its omni-channel strategy in France and strengthen its position in non-food e-commerce by leveraging additional expertise. For its part, Altarea Cogedim has emphasised the importance of digital/physical innovation, evidenced in its increased stake in Qwartz — the shopping centre in VilleneuveLa Garenne — to 100%, based on a valuation of €400 million, after it previously held a 50% stake in “France’s first connected regional shopping centre”. Technological initiatives also led to the development of the Digital Factory, a platform created to centralise and operate customer data. Practically, the Digital Factory gathers

Carrefour, benefitting from a digital strategy

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France customer data and information drawn from the Group’s many channels and centralises this information in a system dedicated to data processing. These features are already operational at Qwartz, where the movements of nearly 50% of customers are now recorded, processed and analysed. “This brand new CRM approach is to revolutionise shopping centre asset management methods,” says Alain Taravella, chairman and founder of Altarea Cogedim. “Altarea Cogedim has confirmed its leadership as a connected retail REIT.” The portfolio now includes 38 shopping centres with an average size of €97m in value and Altarea Cogedim also won the bid to create and operate retail space in the Paris-Austerlitz rail station (approximately 30,000 sq m). The Group is now developing or operating the retail space of four Parisian rail stations, representing total traffic of some 300 million travellers (expected to ultimately reach 450 million travellers). Once in operation, these spaces will account for approximately €55m in gross rental income. Also on the acquisition trail, Klepierre signed an agreement to acquire 60% of the Massalia

Shopping Mall investment company, set up to develop the Prado shopping centre, a landmark 23,000 sq m. shopping centre located in the heart of Marseille, France’s second largest city. Klepierre is buying the project from Doughty Hanson & Co Real Estate, jointly with a privately-owned real estate investment vehicle. Laurent Morel, chairman of the Klepierre executive board, says of the move: “With the building phase ready to start, the committed presence of Galeries Lafayette as the premium tenant occupying a third of the space and the highest architectural standards, Le Prado already unites all the criteria required for a successful development. It is a great example of Klepierre’s development strategy of focusing on projects that combine high shortterm visibility with very decent expectations of return.” There was more investment activity when French investment manager Primonial acquired 22 retail properties in France from supermarket group Immochan for €125m — representing about 80,000 sq m of total space spread across 15 municipalities. Primonial Real Estate Investment Management

says the acquisition encompasses nearly 245 tenants, mostly national chains such as Body Minute, Chaussea, Flunch, Jules, Kiabi, La Halle, Marionnaud and Nocibe. The transaction was conducted on behalf of a vehicle managed by Primonial REIM and for Immochan, was an extension of its strategy of selected sales and developments comprising about 20 projects in France and Europe with an investment of some €500m over three years. Developer Apsys is also to deliver the 52,000 sq m Steel, located at the entrance to SaintEtienne, designed by Sud Architectes and Atelier Rivat, complete with “spectacular roofing and facades dressed with oven metal strands imagined by the designer Joran Briand”, says the company. The merchandising mix will focus on home and sport equipment among 60 shops and restaurants with creative concepts. This venue will also offer 5,000 sq m of indoor activities, an innovative entertainment offer and 37,000 sq m of landscaped areas, plus an ecological water pond. Outdoor areas will be convertible, so that the people can use them as playgrounds. The rapid change in French retail also inspired Mercialys to launch what it describes

Apsys is developing Steel at the entrance to Saint-Etienne

DO NOT MISS FRANCE EVENTS: Breakfast Nice Métropole – “Nice / French Riviera: How innovation & tourism can boost your business ?” Special guest : M.Christian Estrosi, Mayor, City of Nice Wednesday, November 18, 9.00 Palais des Festivals / Verrière Grand Auditorium Official French territories lunch - How to recover retail in French city centres? Sponsored by Elgam Conseil Wednesday, November 18, 11.30 Palais des Festivals / Verrière Grand Auditorium Official France conference : What is the French touch? Special Guest : Guillaume Gibaut – CEO – Le Slip Français Wednesday, November 18, 14.30 Champs-Elysées room preview magazine I October 2015 I www.mapic.com

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France

Mercialys has launched a universal brand for its shopping centres in France, G La Galerie as the first universal shopping centre brand for all of its shopping centres in France — G La Galerie. This identity has been designed to highlight the strengths of the group’s partner retailers and make its shopping centres clearer and more visible to consumers. Mercialys says that it is evolving with customer needs “in order to stand out in a highly competitive landscape, to be able to

speak loudly and clearly to its customers and come up with a targeted and unique response to their demands by rolling out an effective and pragmatic policy of services”. Similarly, Louis Delhaize-owned supermarket group Cora is investing in new concepts and a new logo as it looks to consolidate its main bases in northern France and Belgium. Cora and Carrefour also joined

together as a buying group earlier this year. With so much change and innovation, it is also worth keeping in mind the strong reputation and importance of French towns within the retail mix and to support this Elgam Conseil and M A PIC are organising a conference in Cannes dedicated to the country’s town planning and retail development.

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France

Recession? Certainly! But good projects for retail development of all types are still numerous and so are new retail brands. The show must go on!

here will always be good and bad kinds of retail space, of course! This is not a new question: it dates from the time when, instead of gambling on luck and as far as possible on location, the retail industry began to take off. Supplying a population which was becoming ever more concentrated required massive shopping centres. Since the opening of Parly2, it has been a question of knowing where to locate them. That was always going to be a challenge for the bold. With customers on their upper floors, ground floor retail units in apartment blocks were obvious; with investments to match their zones of attraction, retail centres of all types were becoming high-risk ventures. Retail property had become a profession. Two generations have turned developers, investors, financiers and retail planners into

experts. They have learnt a lot. Nevertheless they have not been able to eliminate that small element of risk hidden in every place on which they bet. Between the jackpot and derailment, it can sometimes be the matter of a Euro… Once the territory is full, the evidence is clear: sites are costly and large area units are becoming scarcer. It is not every day that one can find an operation like Beaugrenelle (1)! Even so, some remain. Not just in Paris and its suburbs either. There are of course some small or large gems under construction there. We have only to look at Europa City, with 230 000 sq m of retail space to the north of Paris, or nuggets like the Louvre des Antiquaires, the passenger transfer areas in the Halles-Chatelet Metro station and the Gare de Montparnasse and Gare d’Austerlitz, with retail facilities planned to

be like those in the Gare du Nord and Gare de l’Est. For these retail galleries, one doesn’t have to be a genius: the money is to be made from the lease or the occupation licence. What does the bottle matter if the drink is good? (2) The problem of course is to be found elsewhere. In the fierce competition between every type of location in all our regions and, with a few exceptions (such as the enlargement of Cap3000 in Nice, Val d’Europe in Paris and the Polygone in Montpellier), retailers are becoming very fussy or not taking new units at all. Town-centre projects are thus in lively competition, as are the renovations or extensions of shopping galleries attached to hypermarkets (Auchan, Carrefour, Cora, Intermarché, Casino) and retail parks – the challenge for secondary urban areas being to provide a complete retail supply within reach

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Cap3000 in Nice: soon, the oldest shopping centre in France will also be the newest!

OUR PARTNERS’ VOICE Alain Boutigny, Director of “La Correspondance de l’Enseigne”

Bata networks will also make it possible to leave and relocate – to the great regret of landlords, who must either keep their rents or keep their tenants. It is also being whispered that, alongside the major retailers (H&M, Zara, Kiko, Starbucks, Primark etc), a long line of new entrants is arriving: promising newcomers with international cuisine (Atsu Atsu for Japan, Classico Argentino for Argentina and also Rossopomodoro for Italy) and major growth prospects. There are those from France, like Kiabi Kids, Kid Shoes (Vivarte) and Alexandre de Paris Studio, or from elsewhere, such as Simply Food (Marks & Spencer), Costa Coffee and Size? (JD). In addition to being shopping UFOs, the retail sector loves them: genuine inventions driven by environmental trends (Au Bout du Champ), wellbeing (Graine de Pastel) or the internet (Spartoo). As for small shops, I can tell you: there is nothing like them for good business. So let’s be serious: haven’t we got something to market? Alain Boutigny Director of “La Correspondance de l’Enseigne”

1. Opened in the heart of Paris in late 2013 2. Alfred de Musset: «La coupe et les lèvres» (1831)

in a few minutes. Gambling several hundred thousand Euros to open here and perhaps close somewhere else seems like squaring a circle to many retailers. At that point, what starts to matter is the size of the developer and the imagination of the retail development manager. The annual «Special Projects» produced by Sites Commerciaux has recorded no fewer than 220 to 250 operations in the medium term. It is not possible to open everywhere. It is therefore better to separate the wheat from the chaff, or at least to choose the locations where one is sure to succeed and forget the others. Here we are in the antechamber of choice, just before an excess of options… Size matters and we should therefore think of the shopping centres with more than 50 000 sq m: Pont-de-l’Âne (Saint-Etienne), Avenue

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83 (Toulon-La-Valette), Ametzondo and Les Allées Shopping (Bayonne), Ode à La Mer (Montpellier), B’Est (Forbach) or Central Park (South Paris). There are also city-centre locations such as the Passages Pasteur (Besançon), the new Batignolles area (Paris) and the Jeu de Paume (Beauvais). Unless one opts for Lillenium or the redevelopment of the Palais de la Bourse in Lille… Beyond these are the sometimes relevant, sometimes troubling multitude of micro-programmes which are so well or so badly located that making a decision is like a game of poker. Today’s retailers are aware of these facts. Apart from safe havens like the Rue de la Ré (Lyon) or the Quatre Temps (La Défense), they no longer take locations for ever. A new wind is blowing on retail growth. It suggests that the reorganisation of the Vivarte and

FIVE DREAM PROJECTS • Passages Pasteur (Besançon): exceptional location with 25 shops in the very centre • Central Park (Paris outskirts): Stark planning for 85 000 sq m • Cap3000 (Nice): extension of a major retail address to 260 shop units • Pont de l’Âne (Saint-Etienne): 70 000 sq m on the way into the city • Ametzondo (Bayonne): 100 suburban retail units, including Carrefour and Ikea

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59 Klepierre’s Plenilunio centre in Madrid

Italy & Spain

The Mediterranean

gains momentum

Southern Europe has troubled investors in recent years but they’re now beating a trail back to Italy and Spain, following domestic and international retailers. Sarah Morris reports

taly and Spain were hit badly by the economic downturn but investors are now turning back to Europe’s fourth and fifth largest economies, reassured by their growth forecasts and the plans of retailers to enter and expand in those markets. The only cloud on the horizon has been uncertainty over events in Greece, but investors haven’t fretted much about contagion in deals. “The second part of the year should see a further acceleration of yield compression,” says Massimo Moretti, chairman of the Italian Council of Shopping Centres (CNCC). After three years of recession, Italy is expected to grow again this year and consumer confidence is bouncing back. Retail transactions returned to pre-crisis levels last year, says Moretti. Deals this year included M&G Real Estate

paying an estimated €70 million to €80m to Italian developer PRIA for 3,745 sq m of retail space on the junction of Via Torino and Via Della Palla in Milan, which Italian retailer Teddy has signed two leases on for its Terranova and Calliope brands. “International funds are back to stay,” says Carmen Chieregato, the president and chief executive of Cogest Retail, a consulting company involved in the managing and leasing of 51 shopping centres. CNCC is co-organising a conference and an invitation-only lunch specifically on Italy at this year’s MAPIC to explain the market’s potential. Much of that lies in the desirability of the country to international retailers. With Italy attracting 44 million tourists a year and Milan

the second European city after Paris in terms of per capita consumption, it’s little wonder 21% of 115 world retailers are targeting it for expansion, according to CBRE’s report: How Active are Retailers Globally? US lingerie brand Victoria’s Secret, owned by L Brands, for example, opened two stores this summer in Milan in Via Torino and Corso Vercelli. The retailer signed a franchise agreement with Italy’s Percassi, the group which operates retail developer Stilo Immobiliare Finanziaria and which has brought brands like Zara, Nike and Calvin Klein to the country through joint venture and distribution deals through holding company Odissea. The demand from retailers to showcase their products in glamorous flagships in prime locations helped drive annual rents up in the first

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Italy & Spain quarter in some of Milan’s high streets by 6.7% to €4,800 sq m, says CBRE. Retailer interest in Italy and the lower density of shopping centres than the western European average is driving development. Cushman & Wakefield calculates the country’s development pipeline for this year and next at about 649,000 sq m, double that of the UK. Primark said in July it would open up to three stores in Italy, the first in the summer of 2016 in the new Arese shopping centre, northwest of Milan. The 92,000 sq m centre will target 8 million residents within an hour, including the neighbouring Swiss, with an upmarket concept of 200 stores and sports and cultural facilities, set in individualised indoor and outdoor plazas. Westfield and Arcus Real Estate, controlled by Stilo, also said they had secured French department store Galeries Lafayette as the anchor for its new Westfield Milan. The 18,000 sq m flagship would make the 175,000 sq m, €1.3bn development the first shopping centre in Italy to house a department store. “We’ve seen a trend for Italian shopping centres to move away from the French model of a hypermarket as the anchor,” says Mario Pello, TH Real Estate’s head of Italy, who says that as hypermarkets downsize, malls have more room for “junior” anchors such as Italian or international clothing brands or popular draw Apple. This summer the ECE European Prime Shopping Centre Fund II acquired the units of Fondo Immobiliare Pompeii, which opened La Cartiera shopping centre in Pompeii. Opened in 2012, La Cartiera comprises a leasable area of approximately 30,000 sq m and 115 shops. Its anchor tenants are Conad, Mediaworld, H&M, Piazza Italia, Alcott, and Toys. ECE Italia took over the property management and the leasing of the centre on August 1. “Having acquired Megalo in Chieti with the

MAPIC ITALY COMES TO MILAN IN MAY MAPIC organiser, Reed MIDEM, has Filippo Rean - Director of announced that MAPIC Italy will take the Real Estate Division place in Milan in late May 2016. Speaking Reed Midem to a gathering of leading Italian retail, real estate and media specialists in Milan, MAPIC director Nathalie Depetro says: “The strength of Italian retail brands, coupled with the dynamic retail real estate sector — ranging from shopping malls to high street outlets and factory stores — make Italy incredibly attractive for national and international retail brands. MAPIC Italy is dedicated to companies that want to do business in the vibrant Italian retail market.” MAPIC Italy will combine an exhibition zone dedicated to presenting projects and deal-making, with a gold-standard conference programme and numerous networking events. Massimo Moretti, president of the Italian Council of Shopping Centres (CNCC), says: “The Italian real estate market is experiencing renewed dynamism and offering great business opportunities for both Italian and international retailers and investors. Our ambition is to make MAPIC Italy an unmissable yearly rendezvous for retail real estate professionals interested in the Italian market. CNCC considers this event an absolute priority and will support it with enthusiasm and energy.” Commenting on the launch of MAPIC Italy, Filippo Rean, director of Reed MIDEM’s Real Estate Division said: “It has become evident that certain key retail territories, such as Italy, merit a dedicated, national event. In 2016, MAPIC is coming to Italy and we are grateful for the support we have had from the CNCC and other key stakeholders. Our strategic priority for MAPIC is to serve the increasingly global retail real estate industry through the further internationalisation of MAPIC in Cannes and the launch of events in high potential markets.” first ECE Fund, this is our second investment in Italy. Since its opening, the centre has achieved a strong market position in its catchment area in the south of the Gulf of Naples,” says Dr Volker Kraft, managing director of ECE Real Estate Partners. “Its dominant market position makes our investment

Galeries Lafayette will anchor the Westfield Milan scheme in Italy

in Fondo Immobiliare Pompeii a perfect addition to the portfolio of the ECE European Prime Shopping Centre Fund II.” While in Italy, the north-south divide remains in terms of economic recovery and investor interest, in Spain, investors have moved beyond Madrid and Barcelona in their search for returns. CBRE Global Investors, for instance, bought AireSur in Seville, Andalusia, from JLL for €76.5m. Klepierre also snapped up Plenilunio, a 70 000 sq m shopping centre located in Madrid. With a large and updated fashion offer and a prime location, the 230-store Plenilunio is one of the major shopping centre in the region around Madrid. JLL forecasts this year Spain will complete about €3bn in transactions after a record year in 2014 when pent-up demand pushed through deals as the economy turned around. With the economy forecast to grow by more than 3%

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Italy & Spain this year and next, retailers and landlords are hoping to tap recovering retail sales. By the end of the year, Primark is due to open its first high street store in Spain, in Madrid’s Gran Via, in a landmark building bought this year for €390m by Pontegadea, the property arm of Inditex’s billionaire founder Amancio Ortega. After a dormant time for development in Spain, development is now kicking off again, including the planned 44,700 sq m S’Estada centre in Palma in Mallorca, the 33,000 sq m La Fira centre in Reus and Abella, 28,000 sq m in Lugo. Bogaris will open retail park Reino de Leon, located in the area of La Granja and La Serna, and feature 23,141 sq m GLA and is trebling its Torrecardenas investment. The new concept will combine large specialised operators in a mall dedicated to fashion and leisure. It will consist of 176,454 sq m of built area, with a two-storey building that will integrate 140 warehouses. The GLA is 22,120 sq m in the retail park and 39,332 sq m in the mall area. Meanwhile, General de Galerias Comerciales is redeveloping the Parque Comercial La Canada, “with the most advanced technology and with a revolutionary architectural design”, says the company. The 100,000 sq m mall will include leisure, restaurants and cinemas and will include Alcampo, Leroy Merlin, Sportzone, Worten and Norauto among its tenants. “We’re back to a normalised market situation,” says David Brown, JLL’s associate director of retail capital markets in Spain. “There are all types of capital from different parts of the risk spectrum and healthy opportunities for everyone.”

CBRE Global Investors has bought AireSur in Seville from Jll

DO NOT MISS Spanish Retail Real Estate Market: Focus on new projects, co-organised with Asociacion Espanola de Centros y Parques Comerciales Thursday, November 19, 12.30 Champs-Elysées room Italy: The New Retail Planet? Coorganised with the Italian Council of Shopping Centres. Sponsored by Promos, CDS and Cogest Retail Thursday, November 19, 17.00 Champs-Elysées room

Inside the Plenilunio mall in Madrid preview magazine I October 2015 I www.mapic.com

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65 TH Real Estates’ St James scheme in Edinburgh

DO NOT MISS

United Kingdom: A Boarding Gate To Europe For International Retailers? Wednesday, November 18, 9.30 Champs-Elysées room

London & other stories You could be forgiven for thinking that UK retail ends at the M25 orbital road system around London. But in fact, it is in the country’s regional cities that development is pushing forward, writes Mark Faithfull

NOTABLE uptick in retail development is expected in the UK from 2016, with large schemes already in the pipeline and new projects on the horizon. This surge in activity will be led by Hammerson’s Victoria Gate (117,100 sq m/10,878 sq m) in Leeds — the largest addition to the UK market since Westfield Stratford — followed by the Westfielddeveloped, Meyer Bergman-owned Bradford scheme (51,500 sq m) and the regeneration of Bracknell town centre (53,900 sq m). First up is Friars Walk in Newport, which opens on November 12, in what Stuart Harris, commercial director and co-founder of developer Queensberry, calls “an exciting time for the city”. Meanwhile, Hammerson has announced the extension of its Union Square development in Aberdeen, Scotland. In addition to new retail and leisure space, there are plans for more

“Our ambition is to create the most dynamic and attractive outlet centre of its kind in the UK” Giles Membrey parking and a hotel, complemented by a reconfiguration of part of the existing shopping area. A planning application for a major new designer outlet village in Cannock has also been submitted for the circa £115m Mill Green development in the West Midlands. With approximately 130 designer-outlet retail units, new restaurants and around 2,000 car-parking spaces, the 23,758 sq m village would be the biggest development of its kind in the region. Progressed in phases by partners Development Securities and Rioja Developments, it is proposed that

the retail and leisure destination will include a mix of designer brands. Giles Membrey, managing director of Rioja Developments, says: “Our ambition is to create the most dynamic and attractive outlet centre of its kind in the UK.” One of the busiest developers has been prime regional-shopping centre owner intu, which has gained a planning application for the transformation of intu Milton Keynes. The project focuses on the redevelopment of Midsummer Boulevard and Oak Court to add 100,000 sq ft to the 430,000 sq ft shopping centre, including a new dining quarter and a five-screen boutique cinema. The proposed work at intu Milton Keynes is part of intu’s £1.3bn development pipeline in the UK over the next 10 years. The shopping-centre owner has also submitted an

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UK application to redevelop Nottingham’s intu Broadmarsh, and is also working on a £42m restaurant and mall refreshment project at intu Victoria Centre in Nottingham and a £19m cinema and restaurant extension at intu Potteries in Stoke-on-Trent. Intu chief executive David Fischel says: “We are moving forward strongly on a number of fronts and particularly with our active development projects both in the UK and Spain.” Elsewhere, the Bracknell Regeneration Partnership — a 50:50 joint venture between Legal & General Capital and Schroder UK Property Fund, together with Bracknell Forest

Buchanan Galleries in Glasgow

“Pension funds and sovereign wealth funds want to invest here in infrastructure, direct investments and property.” Paul Stanworth

Hammerson’s Victoria Gate in Leeds

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Council — is developing the Northern Retail Quarter, which will provide new retail, leisure and residential developments within landscaped public spaces. The development’s principal occupiers will be a threestorey Fenwick, Marks & Spencer, Primark and a 12-screen Cineworld multiplex, in addition to the existing Waitrose supermarket. The regeneration will be completed by spring 2017. Paul Stanworth, managing director of Legal & General Capital, says: “Legal & General wants to regenerate cities and towns across the UK. The UK is a great place to invest. Pension funds and sovereign wealth funds want to invest here in infrastructure, direct investments and property.” In Scotland, both Edinburgh and Glasgow are revamping their retail offers. TH Real Estate is behind the £850m remodelling and regeneration of a 10-acre site at the east end of Princes Street, which is currently occupied by the tired St James Shopping Centre. Much of what sits there today will be cleared to create space for a mixed-use, retail-led St James Quarter scheme, which will make use of the existing John Lewis as an anchor, but will also include homes, a hotel and lots of leisure. It is expected to complete in late 2019 or early 2020. Martin Perry, director of development at TH Real Estate, adds: “The issue for Edinburgh is that it’s a top-10 UK city without a major shopping centre in or near the city. So for us, there is an opportunity to do something that is an awful lot better than the current situation with a 10-acre site already anchored by John Lewis.” Meanwhile, Land Securities’ Buchanan Galleries in Glasgow is being extended to provide large retail units and to ramp up its F&B provision. Already, the dominant shopping destination in the city, it will be extended by owner Land Securities, which bought out partner TH Real Estate in October 2014. An extension is due to complete in spring 2018 and will house over 100 shops, 25 restaurants and a 10-screen cinema, bringing the scheme up to 1.2 million sq ft. Marks & Spencer, John Lewis, Superdry, Mango, Next (large extension) and D&D London are among those to have committed to the scheme.

TOP OF THE POP-UPS THE COUNCIL of Croydon is to loan retail development company Boxpark £3m to finance a pop-up mall in East Croydon. The money will help to set up a shopping centre similar to Boxpark’s mall in Shoreditch, constructed of refitted shipping containers, at the edge of Ruskin Square. The mall, scheduled to open next summer, will include 80 shops, bars and restaurants. Developers are currently ploughing millions into Croydon, which lies on the outskirts of the UK capital and was badly hit by riots in 2011. Notable schemes include a £1.5bn Westfield/Hammerson joint-venture shopping centre with 600 homes, which could open by 2018.

DO NOT MISS

Upcoming Retail: Pop-up Stores, Commercial Events, Concept Stores… What Are The Best Physical Solutions For E-commerce? Co-organised with IFLS Thursday November 19, 11.30 Oxford room

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Russian consumption market: key facts for growth Wednesday, November 18, 15.30 Champs-Elysées room

Russia & CEE

Expansion gathers pace in the East The fortunes of Russia and the CEE markets have fluctuated over the past decade. But retail opportunities continue to emerge if you know where to look, writes Ben Cooper

HROUGHOUT the CEE region, there are towns and cities in need of investment and development. Changing shopper habits are opening the door for new sectors to take market share, and some truly exciting new centres are coming out of the ground. Within this diverse and complex region, there is huge economic variety and a myriad of retail markets to understand. From the major capitals of Eastern Europe and Russia to the disparate towns of Siberia, there is very little uniformity. But this, suggests Simon Scott, head of international business at Leslie Jones Architects, which is leading the refurbishment and extension of Aquabel’s Expobel in Minsk, is actually one of the region’s assets. “There are some difficult markets but, equally, there

“Some retailers have decided to be cautious, but there is still a huge amount of opportunity in markets like Ukraine, Belarus and Russia” Simon Scott are lots of opportunities,” he says. “Some retailers have decided to be cautious about some markets at the moment, but there is still a huge amount of opportunity in markets like Ukraine, Belarus and Russia.” Given its huge size, Russia holds a great deal of potential, he adds — and not just in Moscow and St Petersburg.

Indeed, Russia has been on a phenomenal journey over the past 20 years. With 500,000 sq m of new shopping space completed in the first quarter of this year alone, a huge part of this has been a total transformation of its retail-property market. Among the key developments to have opened are the 136,000 sq m Columbus shopping centre in Moscow, and Europe’s largest shopping centre, the giant 230,000 sq m Aviapark. And in June, IKEA Centres Russia announced major plans to expand its mall space, citing strong tenant demand for its MEGA malls in Tyoply Stan and Khimki. The occupier side has been busy too. In the past year, internationally renowned toy retailer Hamleys opened its largest store worldwide in Moscow; Forever 21 celebrated its first year

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Russia & CEE of trading in Russia; a standalone H&M Kids made a rare opening; and UK fashion sensation Superdry opened its first raft of Russian stores. Another positive indicator, despite the fluctuations in the Russian market, has been international clothing empire Benetton, which at the end of last year announced ambitious plans for the country, as well as further afield in the region. But the uncertainty in the wider economy has undoubtedly caused some retailers to exercise more caution. However, as Planet Retail analyst Derya Guvenc Yıldız says, the opportunities are still there if you know where to look: “International retailers will take cautious steps as most of them have to focus on their home market operations too. As a result, they are investing in store refurbishments to boost profitability, rather than new stores. That said, Schwarz Group’s Kaufland is dedicated to expansion, especially in Romania. Lidl, on the other hand, has just invested in its largest warehouse ever in Bulgaria.” For retailers it is an auspicious time for a move to Russia, because at the moment it is largely a tenant’s market. Elena Zadorozhnaya, head of retail tenant representation, JLL Russia and CIS, says: “Retailers see that they can ask more from landlords at the moment, and get more benefits. Key premises and markets are becoming much more available.”

The CEE market One of the major success stories of the CEE in the past decade has been Poland. With a GDP

Hamleys biggest store is in Moscow, designed by Fitch

The Posnania mall in Poznan

“Posnania will reflect the expectations of a generation that is more sensitive to environmental and quality-of-life issues, open and curious about the world and new technologies, and expecting much more than a basic retail offer” Fabrice Bansay of 10.3% in the past three years and half a million square metres of shopping-centre space opening last year alone, there are opportunities for investors and retailers in abundance. One of the biggest developers in Poland is Apsys, which is in the process of delivering what will be one of the largest schemes in the

CEE region. Located in Poznan, Poland’s fifth largest city, the Posnania mall will cover a massive 100,000 sq m and be home to 300 retail and leisure stores when it opens next autumn. CEO of Apsys Poland, Fabrice Bansay, says that Posnania takes a step forward in Polish retailing and reflects a new type of shopper: “It will be a generator of customer flow. Posnania will reflect the expectations of a new consumer generation — a generation that is more sensitive to environmental and quality-of-life issues, open and curious about the world and new technologies, and expecting much more than a straightforward and basic retail offer.” Another major developer in the region, HB Reavis, which has already completed a number of key shopping centre schemes in Slovakia, is now turning its attention to the Czech Republic. HB Reavis has two big Polish schemes under way — in Hradec Kralove and Brno — which by the time they are complete will have added a total of 54,000 sq m of brand new retail space to Poland’s stock. In August, Globe Trade Centre (GTC) signed loan agreements with Bank Pekao. A construction loan of up to €116m and an investment

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Russia & CEE loan of up to €175m will be used to finance the development of Galeria Połnocna shopping centre in Warsaw, which went to site in July. The scheme began with more than 32% pre-leased, with tenants including Carrefour, Cinema City, H&M and the LPP Group. Erez Boniel, GTC chief financial officer, says: “We are certain that our project will contribute to Warsaw’s retail market and Galeria Połnocna will be the first major modern shopping and entertainment centre located in the north-eastern part of Warsaw.” Meanwhile, in autumn next year, 24 new brands will join the offer at Liebrecht and Wood’s Fashion House Outlet Centre Moscow, bringing the total number of brands to 132. These will all be opened in the second phase of the project, adding 4,500 sq m of GLA to the centre, bringing the total GLA to more than 20,000. “With the opening of Fashion House Outlet Centre Moscow in 2013, we established the outlet market in Russia. Since then, we have heard a lot of feedback from both customers and our business partners. We are going to use this insight to even better answer the needs and desires of our key target groups when opening the second phase of Fashion House Outlet Centre Moscow,” says Brendon O’Reilly, managing director of Fashion House Group. Fashion still dominates much of the retail spend in the region, but an emerging sector — value food — is going from strength to strength. JLL’s Zadorozhnaya says: “Many of the discount grocers have increased their expansion plans in the last year and there is a lot of competition in the big cities and regional cities for space.” German discounter Aldi is among those retailers expanding aggressively. Within Russia, a major bit of news from the discount market — the acquisition in July of 100 Soseddushka stores by Aldi rival X5 Retail Group — was a clear sign of the times. Planet Retail’s Yıldız says this trend is being repeated not just in Russia, but throughout the CEE region. “In Russia, price-aggressive small-format grocery players such as Magnit and X5 Retail Group are expanding aggressively with steady like-for-like performance,” she says. “Magnit has increased its 2015 yearend store opening guidance, as it sees an opportunity in lower rent levels.” Outside Russia, Yıldız adds, various other trends are emerging: “Poland is a discount-led market, but convenience is growing

Russia Fashion House Outlet Centre Moscow

“Many of the discount grocers have increased their expansion plans in the last year and there is a lot of competition in the big cities and regional cities for space” Elena Zadorozhnaya

rapidly. Both Biedronka and Lidl are investing in larger stores, higher numbers of SKUs and, especially, premium private-label ranges to boost sales per store. Rather than expanding into smaller second- or third-tier cities, the focus is back on Warsaw and the high street. Carrefour is also investing in its c-store network in Poland.” Such complexity may seem daunting, but large populations in untapped markets are precisely the sort of environments in which retail property thrives. And with enough local knowledge and research, Leslie Jones’ Scott says, there is plenty more success to be had for the players that get it right. “It’s very important to tune your knowledge and best practice to local areas and do lots of research,” he adds. “But with such big populations, there are still lots of opportunities”.

DO NOT MISS

Russia at MAPIC Organised by Impress Media, the traditional Russian Breakfast on 19 November will bring together more than 250 leaders from Russian and foreign development, investment and retail companies and the the topic of the 23d Russian Breakfast is “Add the difference: contemporary solutions for increasing occupancy of shopping centers”. For the Russian Breakfast call Irina Shateeva on +7 905 711 4560.

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Continental Europe Germany may remain the powerhouse of continental European retail, but crossborder ambitions and a gradual recovery in the Benelux are making the whole region more attractive to expansionist retailers. Liz Morrell reports

German retailers such as Media-Saturn continue to expand domestically and across markets

I Germany still leading the retail charge

N SOME of continental Europe’s core retail markets — notably Germany, Austria and the Benelux — there continues to be a mixed bag in terms of retail growth and expansion. Of these three markets, Germany remains the retail destination of choice. The Benelux countries and Austria, however, are beginning to catch up. The German retail market continues to grow strongly this year, with retail turnover now accounting for €459.3m. Its strong economy is proving a huge draw for international retailers as a result. New market entrants have included Clas Ohlsen, Lululemon, Reiss, White Stuff and Claudia Strater. Other international retailers carrying out significant expansion in Germany include newer entrants Reserved and TK Maxx, as well as more established companies. Among the latter are H&M and the Inditex Groups which, as well as opening H&M and Zara across Germany, are also launching their lesser known offshoots, including Cos, & Other Stories, Bershka and Pull&Bear. Sabine Keulertz, JLL’s team leader of shopping centre investment, Germany, says the textile and fashion market is among the most popular for new lettings, having taken 44% of the country’s total letting volume in the fi rst half of 2015. “This is attributed to a number of tenants in particular,” she says, citing Polish fashion label Reserved, which completed five rental contracts in the fi rst two quarters of the year, and the textile discounter TK Maxx, which has recently taken on six large-scale units in Germany. “Within the textile sector, young fashion operators and textile discounters make up more than half of the total volume of the textile sector, with 60,000 sq m. The food and gastronomy sector, at 18%, has

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Continental Europe retained the second position two years in a row among retail branches,” Keulertz adds. As a result, the market is performing strongly. “The retail market is stable with good consumer confidence, low unemployment and strong demand for prime units in the top cities,” says Frank Emmerich, CBRE Germany’s senior director, head of retail agency west. He adds: “Luxury is doing very well in Frankfurt, Dusseldorf, Munich and Hamburg, and the mass market is doing pretty good in the major top six cities: Frankfurt, Dusseldorf, Munich, Hamburg, Berlin and Cologne.”

Meanwhile, the 42,000 sq m Minto in Moenchengladbach opened in March with 104 tenants including H&M and Saturn; and an extension to Unibail-Rodamco’s Ruhr Park Bochum will see a new area, the South Mall, open in September with 50 new stores. A grand opening will take place on November 4. This autumn will also see the re-opening of ECE Projektmanagement’s Holsten-Galerie in Neumunster, Aquis Plaza in Aachen and Marstall in Ludwigsburg, after an extensive refurbishment. ECE is also refurbishing the

be the most dynamic channel, as the penetration of broadband and mobile devices continues to grow. As in the Netherlands, Belgium’s list of top10 retailers continues to be dominated by grocery companies, although Bol.com and Amazon.com also saw strong growth in the year. However, as the country’s economic conditions improve, retailing is also expected to grow further over the coming few years. Meanwhile, expansion is continuing in the Benelux markets and, earlier this year,

TK Maxx plans expansion in Germany

“The German retail market is stable with good consumer confidence, low unemployment and strong demand for prime units in the top cities” Frank Emmerich However, retailers are getting fussy, according to Klaus Striebich, managing director of leasing, ECE Projektmanagement. “Retailers have started to examine potential locations more selectively and are increasingly focusing on top locations,” he says. “Especially in mature markets like Germany, this tendency has become stronger.” When it comes to development in Germany, one of the most significant moves is the arrival of Unibail-Rodamco, already a strong player in Austria, following its takeover of German shopping-centre company mfi. The pace is now picking up on several projects originally started by mfi. In September last year, Palais Vest in Recklinghausen opened after a three-year construction period, offering 120 stores across 41,700 sq m of GLA. The project was the first to be developed by Unibail-Rodamco after its mfi takeover and brought in new retailers, such as Poland’s Reserved, which has made a strong move into the German market this year. With original expectations of attracting seven million visitors a year, Unibail-Rodamco upwardly revised its predictions for Palais Vest in October after it broke the millionvisitor mark within three weeks and the twomillion mark within seven weeks of opening. Moreover, sales forecasts for some tenants were beaten by as much as 70%.

former City-Passage in Bielefeld, which will open under the new name of Loom Bielefeld in 2017. However, the company’s planned new development in Singen near the Swiss border has now slipped from a 2017 to a 2018 opening date. In Benelux, the market continues to recover from the economic crisis and changing consumer behaviour, including a continued increase in e-commerce. In the Netherlands, recovery now also seems to be well under way after the country posted its highest level of retail sales in seven years in June with a 4.7% rise on the same month the year before. In Belgium, however, retailing saw only slight growth in current value terms in 2014, according to a recent report from Euromonitor International. The country is being hampered by pressure on prices, especially in the grocery retail market. Internet retailing continues to

Holland & Barrett International announced that it was to rebrand its health-food retail chains in the Netherlands and Belgium under its Holland & Barrett fascia. Holland & Barrett acquired Holland’s De Tuinen in 2003 and Belgium’s Essenza in 2013. Among schemes, Multi Development is developing the Mosveld shopping centre will be the new, vibrant heart of the Amsterdam Oud-Noord district. The new shopping centre will offer 7,000 sq m of shops, restaurants

“Austria is still considered to be one of the top-10 destinations for the expansion of international retailers” Kateryna Kurylchyk

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Continental Europe

Following renovation, ECE will re-open Marstall in Ludwigsburg and cafes on the ground floor, 53 apartments on the upper floors and half of the retail space has already been leased to Albert Heijn, Deen, Etos and Febo. Austria is also proving a draw for retailers keen to expand their international portfolios, with a number focusing on flagship stores in Vienna. “Austria is still considered to be one of the top-10 destinations for the expansion of international retailers,” says Kateryna Kurylchyk, head of research for CBRE, Austria. Indeed, recent new entries into the Viennese market include Zara Home, & Other Stories, Monki, Maisons du Monde and Weekday. “With surging population growth rates and as a popular travel destination, Vienna appears to be a very appealing retail market,” Kurylchyk adds. Within the city itself, Rotenturmstrasse, with such tenants as Snipes, Blue Tomato and Hard Rock Cafe, has recently turned into a popular retail destination. “Many retailers

will consider this location for new openings,” Kurylchyk says. ECE Projektmanagement opened its BahnhofCity Wien Hauptbahnhof in October, bringing 20,000 sq m of new retail space and 90 new stores to the Austrian capital. A number of other developments are in the pipeline, including the conversion of Vienna’s former central post office on Rochusmarkt, and the extension of the privately owned PlusCity near Linz. The largest shopping centre in Upper Austria, PlusCity originally opened in 1989 and is being extended by 20,000 sq m. This development, however, has been hampered by a lack of available space. Aspern Urban Lakeside, a 2.4 million sq m urban-use development that runs until 2028, will also include 20,000 sq m of retail space, the first phase of which is scheduled for this year. Also proposed for development is UNO Shopping, another shopping centre close to Linz, where plans are afoot for a combination of a classic shopping centre and a designer outlet.

Brand growth: Adidas

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81 United Developers’ Place Vendome in Qatar

Turkey and the Middle East

East still holds promise for retail expansion Turkey’s shopping-centre market has tracked the country’s economic growth, with 81% of its entire stock delivered in the last decade. Mark Faithfull reports

N THE first half of 2015, the number of completions in Turkey began to slow dramatically, with 84,200 sq m GLA resulting in only 11% of the planned new openings for the first half of the year actually happening, according to CBRE. In most cases, the current economic climate has seen the delivery dates of many projects strategically extended until the fourth quarter, in line with the forecast stabilisation of the Turkish lira towards year-end. In June Forum Diyarbakır, Multi’s 15th shopping centre in Turkey, opened its doors in the country’s south-eastern Anatolia region. The centre includes 135 local and international brands, social and cultural activities, and entertainment areas in some 54,000 sq m of leasable space. Multi has developed Forum Diyarbakir in a 50:50 partnership with Turkish developer Altındag Gayrimenkul and together they have invested €120m in the project. Multi Turkey board member Hulusi Belgu says: “Forum Diyarbakır will boost the city’s cultural, social and economic development. The shopping and retail industry is growing in line with the Turkish economy and the

Koton, on a growth curve in Turkey

demand for shopping centres in Anatolia continues to grow.” Meanwhile, Turkey’s retailers remain active, with Koton and Mavi growing their store estates

and Tesco continuing to hold its Turkish Kipa outlets after looking to offload stores last year. Around 20 Turkish retail brands will be represented at a Turkish Pavilion at MAPIC this year.

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Turkey and the Middle East Mall of Qatar is due to open in August 2016

The Gulf markets In the Middle East, Majid Al Futtaim’s ongoing investments in Dubai continue with phase one of City Centre Me’aisem. The sixth City Centre in the UAE is located in the International Media Production Zone (IMPZ) and scheduled to open this autumn. The seventh — City Centre Shindagha — is also planned to open by the end of the year, according to Alain Bejjani, CEO of Majid Al Futtaim Holding. Meanwhile, the second phase of the 25,000 sq m expansion at Mall of the Emirates is on track for completion in the fourth quarter of 2015, and will include a new VOX Cinema. And in Egypt, Majid Al Futtaim’s investment plans include Ski Egypt at the Mall of Egypt, as well as the introduction of VOX Cinemas to the Egyptian market. There are also plans to bring Lululemon, Athletica and Peacocks to the MENA region, while Majid Al Futtaim Retail plans to open an additional 18 Carrefour stores before year-end. United Developers is pushing ahead with Place Vendome in Qatar. The project began on March 17 last year and is due to open in the third quarter of 2017. The 800,000 sq m development will host two five-star luxury hotels, serviced apartments, a mall featuring up to 400 different retail outlets with a luxurious wing dedicated to top designer labels, and a central entertainment component.

“The shopping and retail industry is growing in line with the Turkish economy” Hulusi Belgu The development will be reminiscent of the well-known high-end shopping street in Paris, Rue de la Paix. Place Vendome will also feature a canal running through it directly from the sea, creating an open plaza with cafes and restaurants overlooking the water. In addition, The giant Mall of Qatar will open on 23 August next year, creating the largest shopping destination in the country with over 500 retail, food and entertainment outlets across a GLA of 256,000 sq m. The mall will be anchored by a premium 14,000 sq m Carrefour hypermarket, a 19-screen cinema, a KidzMondo edutainment centre and an entertainment area, plus a Salam department store and two more department stores “to be announced in the next couple of weeks,” says project managing director Shem Krey. “We have 85% of the space leased or committed and the centre will include a luxury village connecting directly to a five-star Hilton Hotel,” he says. “We are aiming to attract around 20 million visitors annually, with 75% of the 2.3 million population living within 20km of the Mall of Qatar.”

BRANDS FLOCK TO TURKISH PAVILION A host of Turkish fashion brands will join together on a 300 sq m Turkish Pavilion this year at MAPIC, showcasing the design, manufacture and distribution capabilities of one of the world’s most active textiles sectors. Supporting the exhibition space will be a number of network events. Brands and retailers taking part include: Birlesmis Markalar Dernegi, Damat Tween Orka, Kigili, Penti, Faik Sonmez Tektil, Karaca, Kocaer Tekstil Santic/Chakra, Mavi, Mudo, Sezgin Mucevherat – Sochic, Hatemoglu, Avva and Collezione.

DO NOT MISS

Middle East: The Answer To International Retailers Demands? Sponsored by Arabian Centres Wednesday, November 18, 16.30 Champs-Elysées room Turkey: Better, Faster, Stronger… Co-organised with AYD Thursday, November 19, 14.30 Champs-Elysées room

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85 Unibail-Rodamco’s Stockholm scheme Mall of Scandinavia

DO NOT MISS Working, Cycling, Shopping: The Scandinavian Way Of Life Thursday, November 19, 10.30 Champs-Elysées room

Scandinavia

Power trends in the north

Wealthy domestic funds and developers and an influx of overseas money have ignited the investment market in the Scandinavian region. Mark Faithfull reports

H E T ROU BL E w it h t he Scandinavian markets has been less their obvious appeal — affluent catchment, relatively under-retailed locations, transparent markets — and more that domestic investors have dominated ownership, making it hard to break in. Over the past 12 months, a spate of investments has changed all that. TH Real Estate acquired Nova Lund Shopping Centre in Sweden from Unibail-Rodamco for €176m, on behalf of TIAA-CREF, marking the company’s first acquisition in the Nordic region. Located in Lund, 20 km north-east of Malmo in the south of Sweden, it is anchored by fashion retailers including H&M, Stadium, KappAhl, Intersport and Lindex. David Turner, head of TIAA European Investment at TH Real Estate, adds: “This

marks the first step in TIAA-CREF’s decision to invest in the Nordic region. We particularly favour the retail sector, for which we anticipate out-performance in sales growth, driven by population growth, positive consumer confidence and a stable economy.” For its part, Unibail-Rodamco has confirmed that its 101,000 sq m Mall of Scandinavia

“We anticipate outperformance in sales growth, driven by population growth, positive consumer confidence and a stable economy” David Turner

development is over 95% leased. The Stockholm scheme is scheduled to open just before MAPIC on November 12. Mall of Scandinavia has already signed Sweden’s first Disney Store, a flagship Superdry store and the first Michael Kors in a Swedish shopping centre. Furthermore, H&M Group signed one of its largest deals with Unibail-Rodamco to take three stores for H&M, Cos and & Other Stories. Meanwhile, Starbucks coffee has also signed for an innovative store over two levels, with floor-to-ceiling window glass. In Finland, grocery group Kesko has set up a joint real estate investment company with AMF Pensionsforsakring and Ilmarinen, called Ankkurikadun Kiinteistot, with equal shares. The joint venture will own, manage and develop store sites acquired by it and primarily used by Finnish-based grocery chain Kesko Group.

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Scandinavia Ikea plans Copenhagen city store

“As a result of the arrangement, Kesko’s current strong financial position will further strengthen and provide a good basis for the development of the company in line with the future new strategy,” says Kesko president and CEO Mikko Helander. Finnish-based Citycon, meanwhile, has acquired Sektor Gruppen, Norway’s second largest shopping-centre owner and manager, for €1.5bn, giving Citycon exposure throughout the entire Nordic region. Following the transaction, Citycon owns 55 shopping centres in the Nordic countries and Estonia. Citycon has also continued to build its platform in Denmark and has signed an agreement with TK Development regarding the €75m forward purchase of the Straedet project in Koge in the greater Copenhagen area. TK Development is developing an urban, grocery-anchored open-air shopping centre in the heart of Koge, next to the railway station. Regional expansion also continues, with Sweden’s Max Hamburger opening its fourth Norwegian outlet earlier this year and an IKEA warehouse store to open next to the Fisketorvet shopping centre in the Vesterbro

area of Copenhagen, making it easily accessible by public transport for potential Swedish customers travelling over the Oresund Bridge from Malmo. “A city warehouse at a central location in Copenhagen has been high on our wish list

for a long time. We want to come closer to Copenhageners and accommodate what our Copenhagen customers have expressed for many years — that we come closer [to the city centre],” Dennis Balslev, the head of IKEA Denmark, said of the project.

ON THE RECORD: Marcel Kokkeel, CEO of Citycon Why did you decide to acquire Sektor?

“We’re very excited about this acquisition, which completes our Nordic presence. The transaction is a defining step forward in our goal to be the household name for Nordic and Baltic shopping centres.” It’s not easy to buy into Norway…

“We have always believed that, to attract international retailers, you need to be able to provide a broad platform and that helps us. We spoke to Sektor four or five years ago about a possible acquisition. It didn’t happen then, but we maintained a strong relationship with the management.” What will you do with the malls and the brand?

“The transaction reflects Citycon’s clear focus on expanding its asset portfolio in urban, fast-growing Nordic cities. Sektor’s portfolio fulfils Citycon’s strict asset-selection criteria with regard to urban locations, everyday shopping, strong demographics, and proximity to public transportation and services to ensure consistent footfall. It’s very hard to build new malls in Norway, so this is the ideal portfolio for our strategy.”

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THANK YOU TO MAPIC 2015 OFFICIAL SPONSOR

Thor Equities The American mall has undergone a major transformation, exploring new concepts and adapting to new cultures and evolving tastes. This year, MAPIC is pleased to recognize the United States of America as Country of Honor, and invites you to celebrate the USA with a special focus on the current retail landscape in America.

DEDICATED CONFERENCES & EVENTS:

Wednesday 18 November, 11.30-12.30, Champs-Elysées room

Organized by JLL USA, Thursday 19 November, 11.00-12.00, Verriere Grand Auditorium

USA Country of Honor Happy Hour:

MAPIC Awards:

Wednesday 18 November, 17.30-18.30, USA Pavilion

USA Breakfast: Thursday 19 November, 8.00-10.00, Verriere Grand Auditorium by invitation only

Thursday 19 November, Grand Hyatt Cannes Hotel Martinez Book your seat or table: mapic.awards@reedmidem.com Here a special award will be granted to the best American project or retailer.

THANK YOU TO OUR USA COUNTRY OF HONOR SPONSORS

Destination Global:

★ Bronx (Paris) www.bronx.fr

USA Conference in the Shopping the World Track:

DO NOT MISS

The Big Picture: The US – The world’s most influential retail market. Co-organised with Time Retail Partners and sponsored by Chico’s Wednesday, November 18, 11.30 Champs-Elysées room

The Americas

Young, gifted

and back I

N THE US, post the Great Recession, it seems retail is for the young as landlords look to value, fitness and food tenants to serve the children of the younger Baby Boomers and Generation X. And the locations are decidedly urban. The tech-savvy millennial generation has come into adulthood and now constitutes the largest share of the US workforce, according to a May 2015 Pew analysis. Many burdened by college debt, these young adults prefer to live in cities and are focusing their funds on international fast fashion, casual wear and dining for socialisation, observers and developers note. “Overall, retail has been strong and positive in the United States since 2010 and early 2011,” says John Ragland, senior director of global real estate for New York-based TIAA-CREF. He notes that the recovery has disproportionately favoured the top 10% of US earners, with the result that luxury retail has seen the greatest expansion and interest from investors, even as fast fashion expands rapidly to appeal to those seeking affordable chic. And many of the expanding retailers are coming from outside the US.

“Most retailers today are somewhat hamstrung by the environment that came out of the postrecession period to come out with new brands,” adds Naveen Jaggi, president of JLL Americas Retail Brokerage in Chicago. “So European and Asian retailers are filling the gap.”

America’s millennial generation is fast becoming the driving force behind retail growth, encouraging retailers back to the urban centres in which they are choosing to live, work and socialise, says Debra Hazel. Additional reporting by Mark Faithfull

International broker Faith Hope Consolo, chair of the retail group of Douglas Elliman Real Estate, New York, adds: “Globalisation is a key trend in the United States, and it’s shaping the future of retail real estate. The primary reason designers and manufacturers

Uniqlo has announced extensive expansion plans in the US

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Paradny kvartal

Paradny kvartal est la revue spécialisée en construction, l’ingénierie, l’architecture et l’immobilier dans la région tchernozem de la russie. C’est l’édition d’affaires sur les projets de l’urbanisme et de l’infrastructure en construction et déjà construits. la revue Paradny kvartal est le membre de l’Union des constructeurs de la région de voronej. la cible de la revue: la direction et les employés des sociétés de construction, les sociétés immobilières, les banques, les institutionnels. la revue est éditée depuis 2004. Périodicité : mensuelle. le tirage – 5000 exemplaires. Chaque numéro de la revue est doublé sur le site de l’édition – www.parad-catalog.ru. Paradny kvatral is a specialized magazine about construction, designing, architecture and real estate in the Central Chernozem region of russia. It is a busyness title about urban and infrastructure objects being designed and built and already built. the magazine Paradny kvatral is a member of the Union of Builders of the voronezh region. Our readers are the management and employees of construction and development companies, banks, administrative structures. Published since 2004. a monthly publication. Circulation – 5000 copies. Each issue is duplicated online at www.parad-catalog.ru.

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The Americas “We’re still seeing a lot of European retailers with major expansion plans going on in the United States” Greg Miles

Zara is focused on flagship stores in US urban centres

BRICKELL CITY CENTRE, MIAMI A TRANSIT-oriented development in car-dependent South Florida, Brickell City Centre at South Miami Avenue and Eighth Street will be the core of the revitalisation of downtown Miami, with the first phase opening in autumn 2016. The $1.05bn development from Swire Properties, Whitman Family Development and Simon Property Group will include 5.4 million sq ft (50,167 sq m) of office towers, residential space, an underground car park, hotels and 500,000 sq ft of retail. A unique Climate Ribbon art installation of steel fabric and glass will create a comfortable micro-climate for shoppers, while the entire project will integrate with Miami’s Metromover light-rail station. A combination of luxury and contemporary tenants include Saks Fifth Avenue, Chopard, Valentino, Lululemon, Harmont & Blaine, Cole Haan, Illestvea, OndadeMar, Cinemex dine-in theatre, Pubbelly Sushi and Pasion del Cielo.

open stores in a variety of international cities is to help reinforce their online presence. That begins with locations in trendsetting cities and a grip on how consumers like to shop.” And the US remains a nation of shoppers. Consumer spending on goods and health care comprise some 69% of the country’s gross domestic product, according to the US Department of Commerce. H&M says it will open some 60 new stores in the US in 2015, including its largest location in New York City, which debuted in May. Uniqlo, with 39 stores across the country, has announced plans to expand on both the East and West Coasts, entering Seattle, Washington and metropolitan Washington DC for the first time. A store in Denver will open in spring 2016. “The world, because it is flat, is borderless,” Jaggi adds. Zara, meanwhile, continues its US expansion, including flagship locations in urban sites, among them a 2,800 sq m flagship in the World Trade Center. Value fashion retailer Primark has also come to the US, opening its first store in Boston in September. “We’re still seeing a lot of European retailers with major expansion plans, including & Other Stories, Cos and Zara, going on in the United States,” adds Greg Miles, US chief operating officer of Westfield. Of course the US has not always been the easiest of markets for European retailers and “this is where good advisory comes in” says Thor Equities executive vice-president Melissa Gliatta. “We were retailers before we were in real estate and understanding the

“Careful tenant placement is vital if you want a location to work but there remains a lot of strength, especially in urban locations, for the right operators.” Melissa Gliatta preview magazine I October 2015 I www.mapic.com

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The Americas SPOTLIGHT ON CANADA

LIBERTY CENTER, CINCINNATI THE INCLUSION of park spaces that can be programmed for different uses — including one inside the mall — is just one highlight of Liberty Center in Cincinnati, Ohio, which opened in October. The joint venture between Columbus, Ohio-based Steiner + Associates and Chicago-based Bucksbaum Retail Properties features 1.2 million sq ft (110,000 sq m) of retail, restaurants, office space and apartments, as well as a 130-room AC Hotel by Marriott on 64 acres. An enclosed mall and open-air component comprise 800,000 sq ft of retail, anchored by a 200,000 sq ft Dillard’s department store (its first ground-up store in the state). Other retailers include Dick’s Sporting Goods, Lush, Levity Live Comedy Club, Brio Tuscan Grille, Kendra Scott, Pandora and Gap, many of which are opening their first stores in Ohio.

retail perspective and the way a country operates is, of course, crucial,” she says. “Careful tenant placement is vital if you want a location to work but there remains a lot of strength, especially in urban locations, for the right operators.” North American retailers also continue to open new stores, with F21 Red, the even more value-oriented sibling of value fashion chain Forever 21, cautiously expanding. But another focus of expanding retailers relates to fitness. “For a long time, we’ve been putting gyms into malls,” Miles says. “It extends the life of the mall at the front end and the back end of the day.” Workout fashion lines are among the fastest-growing tenants in the US. Gap division Athleta will open 20 stores in 2015, while arch-rival Lululemon has expanded into other concepts, including a men’s shop and ivivva for active girls. Members of founder Chip Wilson’s family have now created a luxury leisure line, Kit and Ace, which should have 30

stores worldwide by the end of the year. And Pittsburgh-based superstore Dick’s Sporting Goods will debut fitness fashion boutique Chelsea Collective in Tysons Corner Center, Virginia, and Ross Park Mall in Pittsburgh. “As leaders in sporting goods and fitness apparel, we wanted to provide a destination for women who are on their own personal fitness journeys; a store where they can come in and feel part of a community that understands them and their needs,” said Lauren Hobart, senior vice-president of Dick’s Sporting Goods and general manager of Chelsea Collective, announcing the move. “We feel Chelsea Collective will meet and exceed this active woman’s expectations.” Online affordable athletic line Fabletics is now turning to bricks and mortar, opening stores in around the US throughout September and October. Despite all this growth, fashion does not dominate store expansions. Some 45% of store

GLOBAL PLAYERS MOVE IN IF CANADA’s retail scene is looking a lot more like the US, it’s no coincidence. Despite Target’s exit, retailers from “south of the border” as well as global players are expanding throughout the country. “Canadian shoppers have long sought out US retail brands. As more US retailers invest in store locations in Canada, it is inevitable that the major malls, power malls and outlet centres in Canada reflect the presence of US retailers,” says Tony Hernandez, director and Eaton chair in retailing at the Centre for the Study of Commercial Activity (CSCA) at Ryerson University in Toronto. Nordstrom debuted in Chinook Centre in Calgary, Alberta, in September 2014, with Toronto locations at Yorkdale Centre and Eaton Centre Gardens to open in autumn 2016. Another Toronto store — at Sherway Gardens — is expected in spring 2017. Saks Fifth Avenue, acquired by Canada’s Hudson’s Bay Company in 2013, will open two stores in Toronto next year, and could have up to seven full-line stores and 25 OffFifth outlets around the country. Other retailers recently arrived or coming to Canada include DSW, Cabela’s, Jimmy Choo, Moncler, Vince Camuto, F21 Red and Uniqlo. Some 42 retail centres comprising 1.5 m sq m (139.354 sq m) are to open through 2016, reports Cushman & Wakefield. These include the recently opened McArthurGlen Designer Outlet at Vancouver Airport; Ivanhoe Cambridge’s 111,500 sq m Tsawwassen Mills in Tsawwassen, British Columbia, opening in spring 2016; and the ongoing development of RioCan’s 90,400 sq m East Hills project in Calgary.

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The Americas

RIVER OAKS, HOUSTON ONE OF the most sprawling cities in the US thanks to its lack of zoning laws, Houston, Texas will finally get a central luxury urban shopping district in the shape of River Oaks, the open-air complex being developed by OliverMcMillan. Top luxury brands are relocating from nearby malls and streets to the mixed-use project’s 252,000 sq ft (23,412 sq m) retail component, located on six blocks on major artery Westheimer Road. Among the brands signed to the scheme are Stella McCartney, Cartier, Dior, Van Cleef & Arpels, Vince, Vilebrequin, Planet Blue, Arkis, Anne Fontaine, Hermes, Tom Ford and Equinox, as well as luxury cinema and dining facilities. The first stores are due to open in October.

STEELPOINTE HARBOR, BRIDGEPORT THE REDEVELOPMENT of waterfront areas is taking place throughout the US, including at Steelpointe Harbor in Bridgeport, Connecticut. The scheme, which will serve multiple roles, is being developed by Bridgeport Landing Development (a subsidiary of Miamibased RCI) on Long Island Sound on the first navigable lighted harbour north of Manhattan. The 2 million sq ft (185,806 sq m) mixed-use complex will serve luxury-yacht enthusiasts, and revitalise the city’s downtown. The first phase of retail, which opens this autumn, includes the only Bass Pro Shops in Connecticut, and the first Starbucks and Chipotle Mexican Grill in Bridgeport in its 160,000 sq ft area. Eventually, the project will include 750,000 sq ft of shops, dining facilities and a cinema.

Lululemon, one of the fast-growing athletic-fashion brands

“One thing that distinguishes millennials from baby boomers is that, for them, shopping is an experience. And eating and drinking are part of that experience” John Ragland

openings in the US are food-related and include supermarkets, restaurants and the increasingly popular quick-service dining sector, according to TIAA-CREF’s Ragland. “One thing that distinguishes millennials from baby boomers is that, for them, shopping is an experience. And eating and drinking are part of that experience,” he says. Even supermarkets are looking to join the vault to value, with Whole Foods debuting 365 by Whole Foods Market. On the deep-discount front, Germany’s Aldi, with some 1,400 stores in the US, expects to have 2,000 outlets by 2018. Competitor Lidl is establishing a headquarters in the US to begin an expansion plan. Increasingly, all of these retailers are looking to city streets for locations. “Retailers are coming back in major ways to street fronts in Chicago, San Francisco and New York,” Ragland says. Christopher Conlon, EVP, chief operating

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The Americas officer, Acadia Realty Trust, says his business recognised the shift several years ago and the company — while still keen on its traditional suburban malls and power malls market — has oriented more recent investment towards urban opportunities. “There’s no doubt that young professionals all around the country are looking to live in city

centres, not move out to the suburbs,” Conlon says. “As the world changes and customers becoming increasingly tech-savvy, a street base is essential in creating touch points with consumers. Brands have recognised this and we’re seeing not only well established urban locations do well but emerging markets begin to thrive in locations across the US.”

WESTFIELD WORLD TRADE CENTER, NEW YORK CITY CONSIDERED a new development by its builders and a rebirth by New Yorkers, the longawaited return of Westfield World Trade Center is imminent, as developer Westfield works with the never-easy Port Authority of New York & New Jersey to open within the next year. The project, which succeeds the shopping centre destroyed in the September 11, 2001 terrorist attacks on New York and Washington, will comprise 350,000 sq ft (32,516 sq m) of retail in 150 shops around the Santiago Calatrava-designed Oculus. Tenants will include Hugo Boss, John Varvatos, Michael Kors, the first Jones the Grocer in the US, Fossil, Breitling, Longines, Caudalie, Aesop, Reiss, Banana Republic, Turnbull & Asser, Epicerie Boulud, Eataly and more. With the redevelopment of Brookfield Place, the two projects are creating a major retail district in Lower Manhattan.

THE SHOPS & RESTAURANTS AT HUDSON YARDS, NEW YORK CITY VERTICAL construction on The Shops & Restaurants at Hudson Yards, which opens in 2018, began in June. The 1 million sq ft (92,903 sq m) retail centre is the future home of New York City’s first Neiman Marcus flagship store. Construction commenced after the site received its first few shipments of an historic 100,000-ton steel order — one of the largest orders ever placed for a commercial real estate development. The first deliveries have arrived onsite, with additional shipments scheduled through 2016. “We are extremely excited to go vertical on The Shops & Restaurants at Hudson Yards and to see our vision become a reality. As a 40-year veteran in this industry, having the opportunity to transform a neighbourhood and create a new paradigm for shopping and dining in New York City is a dream come true,” says Kenneth Himmel, president of Related Urban, the mixed-use division of Related Companies.

SPOTLIGHT ON LATIN AMERICA

DEVELOPING AGAINST THE ODDS THROUGHOUT Latin America, global brands from fast fashion to ultra-luxury are expanding. And although AT Kearney’s Global Retail Development Index 2015 warns of some political and economic instability, development is taking place. Brands such as Scotch & Soda are bypassing the US to open in Latin America. Forever 21 and H&M are active throughout the region. “Junior apparel retailers are very actively looking, and we see a need for department stores [comparable to] JC Penney in Latin America,” says Andrea Abrams, principal, international, at New York- and London-based Time Retail Partners. Despite its economic woes, Brazil has experienced an influx of beauty and food retailers, including The Body Shop, L’Occitane, Aesop, Smashbox, Johnny Rockets, PF Chang’s and Red Lobster. Mexico has some 600 shopping centres, but should add 50 or 60 more annually, according to Jorge Lizan, managing director at New York City-based Lizan Retail Advisors. “[Retailers enter] Mexico first,” he says, followed by Colombia, Peru and Chile. “Panama City remains a hub for retailers, with amazing shopping centres.” These centres, including the new Soho Mall Panama, attract luxury brands including Gucci, Dolce & Gabbana, Michael Kors and Mac. More than 500,000 sq m of projects are under construction, says AT Kearney. Meanwhile, four major centres will debut in Costa Rica this year, including City Mall in Alajuela, the largest in the region. Mixed-use projects are being developed in Paraguay, and several projects are being built in Bolivia.

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DO NOT MISS

CapitaLand’s Suzhou Center Mall

Chinese Experience: How To Successfully Expand Your Business In China, co-organised by the China Chain Store & Franchise Association. Wednesday, November 18, 10.30 Champs-Elysées room

Asia

A market too

big to ignore

China remains Asia’s retail powerhouse, but developers and retailers are increasingly looking across the continent for opportunities. Mia Hunt reports

HE ASIA-Pacific retail market has expanded at a rapid rate in recent years on the back of strong economic growth. With a burgeoning middle class forecast to reach 1,740 million by 2020, a wave of retailer expansion and a boom in shopping-centre construction — circa 22 million sq ft (2 million sq m) of new space is to be completed by the end of the year — the continent is hot property. China has driven growth, dwarfing other markets when it comes to retail spend, investment and development. But while China’s retail sales remain buoyant, growing by over 10% year-on-year to €2.1 trillion in the first half of 2015, recent events in its stock markets are causing some to exercise caution. “The economy has slowed and there isn’t the confidence in the market there was two to three years ago,” says Hong Kong-based Joel Stephen, senior director and head of retailer representation in Asia at CBRE. “My view is that the market is going through a natural correction and people aren’t overly concerned, but I think in the next couple of years there will be more due diligence.” Development continues apace — of the world’s pipeline, half is happening in China — but there is real danger of over-supply, and many schemes built by inexperienced

developers fail. “Over-supply is an issue that will continue to haunt the market, but it will result in the more sophisticated development of retail space, both in the execution and delivery of concepts, and in creativity,” says James Hawkey, managing director of Asia Pacific retail at Cushman & Wakefield (C&W). “Huge levels of competition have ultimately driven the creative juices of developers to come up with unique schemes that provide amazing experiences.” CapitaLand Mall Asia is one of the region’s most experienced developers, with 105 malls in 54 cities and five countries. Its portfolio caters to the trend in China for large, well-designed, accessible and integrated developments comprising retail, leisure, office and residential space in prime areas or above transport hubs. With leisure and entertainment a key consideration, many of its malls incorporate cinemas, ice rinks, rooftop gardens, gyms, swimming pools and kids’ zones, and in order to satisfy consumer demand, it is increasing the percentage of retail space allocated to F&B to between 30%-35% of net lettable area. Innovations such as self-redemption vending machines for loyalty members and interactive video walls are continually introduced.

“To ensure the continuing success of our malls, it’s important they always meet the needs and aspirations of the communities they operate in,” says Jason Leow, CEO of CapitaLand Mall Asia. “To this end, we continually reinvent our malls to ensure they stay relevant and attractive to shoppers. This includes asset-enhancement initiatives to optimise the retail offerings and refreshing the tenancy mix, as well as carrying out attractive promotions to draw shoppers to our malls.” In June, Dalian Wanda Group, China’s largest commercial developer by sales, raised over €700m through crowdfunding for a series of shopping plazas by offering a guaranteed 12% return generated by rentals of completed developments. It plans to open 50 new malls every year from 2016. But Dalian Wanda isn’t resting on its laurels. Speaking at the Shenzhen Stock Exchange in April, chairman Wang Jianlin said the company believes the Chinese real estate industry has come to a turning point. “The era of huge profit has come to an end,” he said. “Going forward, property developers will have to achieve high-standard branding, pricing and marketing operations to survive in the marketplace.” He then said of the company’s strategy: “With 135 Wanda Plaza in operation by end 2015, we

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“The era of huge profit has come to an end” Wang Jianlin will be the largest commercial real estate developer in the world. It would be an achievement big enough for us to become complacent… But we have more ambitious goals. Relative to a market with nearly 1.4 billion consumers, our market share is still too small, and we must continue to scale up to consolidate our competitive edge.” A lso harbouring ambitious plans, is Arcoretail, which is acting as consultant for the Jihua Park concept. “The project is intended to revolutionise the whole travel retail sector,” says Arcoretail CEO Luca Bastagli Ferrari. As China’s middle to upper class grows, a major change in lifestyle attitudes is emerging, Bastagli Ferrari says, and this is directed towards shopping, sport and travel. Mass tourism is also on the rise. The various Jihua Parks — some 35 are anticipated — will be sited in metropolitan locations, divided between shopping (40%), sport and entertainment (30%), F&B (15%) and relaxation (15%). The first Jihua Parks will open in the cities of Chongqing and Changchun with a targeted three to four million annual visitors. Indeed, when it comes to demand, for many

The Parisian Macao by Las Vegas Sands

CapitaLand’s Tianfu in South Chengdu international retailers, China is too large a market to be ignored. “There is room for everyone in China and it’s no longer an extremely challenging market to enter,” C&W’s Hawkey says. “The route to market is increasingly clear — tax, site selection, company set-up, all of that is more straightforward. International retailers have realised they can’t be truly global without a presence in China and Asia. It’s a key market.” Middle-class urban consumers have an affinity for affordable fast-fashion brands like H&M and Uniqlo, which are penetrating the Chinese market by expanding into tier-one, -two and -three cities. Old Navy, lululemon and Disney have recently forayed into China

Chinese shoppers are increasingly appreciative of multi-concept stores where they can linger and enjoy a multi-sensory experience” Jason Leow and have been received well. Niche brands are an upward trend and, while luxury has weakened amid the government’s corruption clampdown, there is still support for entrylevel luxury brands such as Burberry, Michael Kors, Kate Spade and Tory Burch. In July, SuperGroup announced plans to step into China, investing €13m in a joint-venture deal with Trendy International Group (TIG). “China is a very exciting market and forecast to overtake the US as the largest apparel and footwear market in the world,” SuperGroup said of the move. “Customer tastes are evolving from luxury brands to brands influenced by pop culture and we believe that the Superdry brand, with the right product, pricing model and infrastructure, is well positioned to be successful.” CapitaLand Mall Asia’s Leow points to a shift in consumer behaviour fuelled by rising disposable income: “Chinese consumers are getting more sophisticated [and] are getting into aspirational and experiential shopping. Beyond transaction-focused online shopping, Chinese shoppers are increasingly appreciative of multi-concept stores where they can linger and enjoy a multi-sensory experience that satisfies their lifestyle needs.”

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Asia “Whereas before, retailers would have focused almost exclusively on China, now they’re beginning to look to other Asian countries” James Hawkey Despite strong and continued demand from international retailers for space in China, with the country’s economic growth slowing, other Asian countries are coming to the fore. According to a CBRE report, retailers’ topfive target markets in the Asia Pacific region in 2014 were Tokyo, Singapore, Taipei, Hong Kong and Beijing. Other popular destinations included Manila, Shanghai, Kuala Lumpur, Bangkok, New Delhi, Shenzhen and Mumbai. Luxury, business, coffee, restaurants and midrange fashion were the most active retail sectors, the report revealed. And of the 464 entries in the region last year, 24% were from the US, 11% from Italy and the UK respectively, 10.5% from France and 6.9% from Japan. “Japan, Korea and China are the more mature markets and they’ll always be of interest, but potentially China’s expansion has peaked,” C&W’s Hawkey says. “Whereas before, retailers would have focused almost exclusively on China, now they’re beginning to look to other Asian countries.” One such example is gaming hub Macao. Sheldon Adelson, chairman and CEO of Las Vegas Sands, says: “In Macao, we welcomed more than 16 million visits to our property portfolio and delivered strong growth in the high-margin retail-mall business.” Las Vegas Sands is currently developing The Parisian Macao — its fourth property at Cotai Strip Resorts Macao — which is expected to open in 2016. It will offer approximately 3,000 rooms and suites, gaming space, a retail mall, a replica Eiffel Tower, meetings and events space, and dining and entertainment facilities. The total cost of the project is estimated at $2.7bn “South East Asia is looking very interesting and the Asian trade agreement has given a boost to countries like Singapore and Thailand,” Hawkey adds. “Indonesia, Vietnam and India are huge emerging economies with potential for wealthy markets and huge populations. And while there are often barriers to entry, we’ll be watching those countries with interest over the next three to five years to see how consumer spending picks up.”

Gaming hub Macao is being targeted for retail growth

BUILDING ON its success developing and operating more than 30 shopping malls in China’s leading economic zones, SCPG is making its first entrance into Shanghai with an INCITY shopping mall of 330,000 sq m GFA due to open in 2019. INCITY is SCPG’s flagship shopping mall brand, and with over 450 national and international brands expected. Being positioned as a large-scale lifestyle and family shopping mall, Shanghai INCITY will provide a combined retail format offering activities and social interaction, health and relaxation, entertainment and culture for the whole family, fashion, food and drink, in a green setting. The scheme will also feature the first roofed small town for the people of Shanghai, a first-floor illuminated street, an ecological retreat and roof garden, as well as an extensive courtyard and open-plan space. All of this will create a new trend for green eco-shopping in Shanghai. Located in the Nanxiang area of Jiading district, Shanghai INCITY is adjacent to the Hujia Expressway, neighbours the Shenhai and Huxiang expressways and has connections to lines 11 and 20 on the Shanghai Metro at Nanxiang Station. Shanghai INCITY will open in 2019

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