Mapic 2017 preview magazine

PREVIEW The of ficial MAPIC magazine • www.mapic.com • October 2017

MAPIC 2017 Special Focus

Retail showcase

Innovation & Leisure

27

Food & Beverage

Also inside: • MAPIC Awards • Investment spotlight • Development pipeline

11

F&B takes centre stage at MAPIC with a dedicated area and sessions in Cannes ADVERTISEMENT

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How retailers have switched tactics, with smarter strategies for growth

• Asset management • Analysis: Europe, The companies and concepts enhancing customer experiences and relationships

the US, Asia and MENA

LIVE THE EXPERIENCE

OPENING IN PARIS 2024 www.europacity.com

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Editorial WELCOME to the MAPIC 2017 Preview publication, introducing the 23rd edition of our international retail property market. We will welcome nearly 8,500 delegates from 80 countries including around 2,100 retailers, 1,000 investors and 2,500 developers to Cannes this November as MAPIC continues to grow its global reach and the breadth of themes it covers.

Nathalie Depetro, MAPIC Shows Director

In recent years the changing nature of retail has been reflected in our increasing coverage of O2O (online-to-offline), digital, customer experience and customer relationships in the MAPIC Innovation Forum, plus our enlarged Leisure Zone. Together in 2017 these two areas will introduce companies involved in specialty leasing, digital, data collection and analysis, leisure and entertainment offers, and virtual and augmented reality. To name a few — Clear Channel, Samsung, Salesforce, Esri, AiSolve, Walltopia, Lappset Creative and Vortex will be present.

Food & Beverage (F&B) is the central theme of MAPIC 2017. Food stands and presentations will illustrate this crucial element of retail destinations, representing new and exciting names in catering, from quick service to fine dining, brought together with our partner JLL Food Consulting. Brands include Caffe Pascucci, We Love Puro, Old Wild West, Autogrill, Leonidas, Vapiano, Hans im Gluck, Anticafe and Alavance, launching its app at MAPIC, among others.

Francesco Pupillo, MAPIC Deputy Director

Indeed, this has been another historic 12 months for MAPIC. By the time you read this, we will have already held our second MAPIC Italy event in Milan, MAPIC China in Shanghai, MAPIC Russia in Moscow and, for the first time, the Indian Retail Forum powered by MAPIC in Mumbai. MAPIC has become a global platform, connecting the retail real estate industry in all corners of the world.

This November promises to be another exciting and fascinating edition of MAPIC, with newcomers such as Hotel Chocolat, Europa City, Hines, Quiqup, Aedes SIIQ and Suning, plus the cutting-edge content that is shaping the industry and all culminating in the MAPIC Awards, where we celebrate the best of this incredible and constantly evolving industry.

We are very much looking forward to welcoming you all — old friends and first-time visitors — to Cannes once again.

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Contents Your MAPIC experience 6

MAPIC around the world 47

How to get here • Your badge and registration • Must-attend events • Must-visit areas • Meetings and Map

MAPIC reached into more markets than ever before in 2017.

Our correspondents report back from Brussels, London, Milan, Moscow, Mumbai, Paris and Shanghai on the events that helped define the retail real estate year

MAPIC Awards

9

Learn more about the prestigious MAPIC 2017 Awards, which will be presented during this year’s event

Countries & Regions

55

We take a look at the sectors, developments and strategies shaping country and continental markets worldwide, as retailers and investors seek out the next phase of opportunities against a backdrop of uncertain political times

SPECIAL FOCUS

Food & Beverage

France UK & Ireland Germany Italy Spain & Portugal Russia & CEE Benelux Turkey MENA Nordic focus North America Asia

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55 59 65 69 73 77 83 85 87 89 91 99

© ATLANTISMEDIA - Fotolia

55 Building on the expansion of our F&B coverage, MAPIC will put F&B centre stage, dedicating sessions, workshops and a special area to this booming sector

Innovation & Leisure

27

This year MAPIC will welcome a host of innovative companies, dedicated to enhancing customer experience through leisure and technology and customer relationships by applying data capture and analysis

Retail

65

39

91

Retailer expansion is back on the agenda but even growth operators are now highly selective over markets, cities and locations. We take a look at the market and highlight some of those to watch out for in Cannes

CONFERENCES & EVENTS PROGRAMME preview magazine I October 2017 I www.mapic.com

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Your MAPIC Experience 15-17 NOVEMBER 2017 Palais des Festivals, Cannes, France

14 November: Welcome Reception 19.30, Majestic Hotel

OPENING TIMES MAPIC 2017 Opening hours 15-16 November: 08.30*-19.00 17 November: 08.30*-17.00 * Access from 08.00 for exhibitors

MAPIC 2017 Registration hours 14 November: 09.00-20.00 15-16 November: 08.00-19.00 17 November: 08.30-15.00

We look forward to welcoming you in Cannes, but first here are some tips to prepare your Journey to MAPIC

Prepare for the Trade show in 3 steps Visit MAPIC website to organise your travel • Book your transportation & accommodation with our partners to get the best deals • Check the Conference programme & Pitching sessions

Plan your agenda and connect to partners in one click

Your badge: your key to getting into MAPIC

• Download the Mobile App

Did you receive it by post?

Don’t forget to put it in your luggage.

– Synchronised with the database and your email box

You have only your confirmation email?

Pick up your badge at the registration area.

Palais1 Be sure to check the registration hours above.

– More networking features & services to meet business partners!

– Find your way with an interactive floorplan • Log into the Online database to

Save time with the e-ticket Print it out to collect your badge at a self-service delivery point or download the Mobile App and connect to your account.

Please carry it all times, and be ready to show it at entry points around the area. Your badge is strictly personal and non-transferable.

– Fill out your profile and personalise your agenda – Organise business meetings – Browse participants and attending companies

New! Receive your tailored business recommendations via the online database

Onsite meet decision makers and get an overview of the market trends Connect, learn, share

MAPIC Awards Gala Dinner

Welcome Reception

Thursday, 16 November, 19.30 Salon des Ambassadeurs Palais des Festivals - level 4

Tuesday, 14 November, 19.30 Majestic Hotel Open to all

Book a seat/a table: laurene.dureault@reedmidem.com

MAPIC Official Sponsor

MAPIC Awards 2017 Sponsor:

Networking events* Inside the Palais des Festivals: Learn more about a topic or territory. *more information online and on the Mobile App

3 DAYS OF CONFERENCES & NETWORKING EVENTS

MAPIC Party Thursday, 16 November, 23.00 Salon des Ambassadeurs Palais des Festivals - level 4 Open to all

See the programme p.35 and plan your journey preview magazine I October 2017 I www.mapic.com

MAPIC Official Sponsor

MAPIC Official Sponsor

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Your MAPIC Experience General map of MAPIC MAPIC Zone 1

2017 Special focus Discover the latest international F&B concepts and taste pioneering new consumer trends. 400+ F&B key players expected!

Exhibition, F&B Gallery, Conference & Pitching sessions.

MAPIC Security Checkpoints

Riviera 8

Exhibition Hall

Sea

NEW En tra nc e

F&B Gallery

Beach

Riviera 7

Exhibition Hall Press Club & News

Unibail Rodamco C17

The Innovation forum will host innovative solutions and technologies. Startups with solutions for shopping centres and points of sales will be showcasing their services in the Startup lounge. 70+ Tech partners expected.

Exhibition, Conference & Pitching sessions.

4

Palais -1 to 4

1

Palais -1 Exhibition Hall Conference Rooms Hospitality Suites Innovation Forum Leisure Zone New in 2016 Startup Lounge USA Pavilion Visitors' Lounge Business Center Gold Lounge Pavillon France

2UJDQLVHUVØ RIæFH

2 La Croisette

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The MAPIC Leisure Zone will showcase the latest fun experiences and leisure equipments. 100+ leisure specialists expected!

Exhibition, Conference & Pitching sessions.

Majestic Hotel

10min Carlton Hotel

En

tra

nc

Palais 1 Chairman’s Club Registration Verrière Grand Auditorium Palais 4 MAPIC Awards MAPIC Party Salon Croisette ( via Palais 1)

Harbour

e

5

13min The Grand Hyatt Cannes Hotel Martinez

Train Station

Registration & Protocol Entrance

MAPIC free hotel shuttle

La Croisette

Transact What rooms can you use for your meetings?

Visitors’ lounge (Palais -1)

Press club (Riviera 7)

• Intended for participants without a stand • Includes a meeting area, hostesses to help organise your meetings and free coffee • For meetings of a maximum length of one hour

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

Chairman’s club (Palais 1)

Gold club (Palais -1)

• Exclusive club reserved for chairmen, by invitation only • Includes refreshments and a dedicated staff

• Intended for gold members of our Customer Recognition Programme • Includes a private lounge area, international press, PC & Internet access

See you in Cannes!

For further information: www.mapic.com • Help desk: +33 (0)1 79 71 99 99

mapic PREVIEW The offi cial MAPIC magazine October 2017. Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor-in-chief Mark Faithfull Contributors en Cooper, Debra Hazel, Liz Morrell, Isobel Lee, Sarah Morris, Graham Parker, Helen Roxburgh, John Ryan Sub-editor Joanna Stephens Proof reader Debbie Lincoln Head of Graphic Studio Herve Traisnel Graphic Studio Manager Frederic Beauseigneur Graphic designer Carole Peres PRODUCTION DEPARTMENT Publishing director Martin Screpel Publishing manager Amrane Lamiri Publishing co-ordinators Emilie Lambert, Yovana Filipovic, Veronica Pirim 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 © 2017, Reed MIDEM Market Publications. Publication registered 4th quarter 2017. ISSN 1961-022X. Printed on PEFC certified paper. ®

preview magazine I October 2017 I www.mapic.com

MAPIC 2017 Steering Committee Mr. Alain Boutigny

Mr. Chris Igwe

Mr. John Scott

Directeur de la Publication & Rédacteur en Chef

Founder - CEO

International Director

SITES COMMERCIAUX France

CHRIS IGWE INTERNATIONAL France

TM LEWIN UK

Mr. Pierre Combet

Mr. Henrie W. Koetter

Mr. Brian Tucker

Founder - Partner

CIO and Managing Director Development

Former Head of Shopping Center Investment

ECE Germany

CUSHMAN & WAKEFIELD Germany

MOREORLESS France

Mrs. Mayte Legeay

Mr. Reinhart Viane

Head of Neinver France Business Development Director

Business Development Director

NEINVER France

KCC UK

Mr. Carsten Heidtmann

Mr. Laurent Plantier

Mr. Peter Wilhelm

Global Leasing Director

Founder – Partner

CEO

IKEA CENTRES Sweden

FRENCH FOOD CAPITAL France

WILHELM & CO Belgium

Mr. Damian Hopkins

Mr. Christian Recalcati

Mrs. Pamela Wolf

International Director

CEO

Director Strategic Innovation

Mr. Jean-Paul Freret Real Estate Development Director CARREFOUR France

MATALAN UK

SAVILLS LARRY SMITH Italy

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SALESFORCE France

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MAPIC Awards 2017 The Jury Tom MEAGER

President of the jury

Thomas DEVONSHIRE -GRIFFIN

F&B and customer services join the red carpet line-up This year’s MAPIC Awards have been broadened to reflect the growing diversity of the retail real estate sector and the new players influencing the future of the sector

T

HE 22 nd MAPIC Awards will be presented at a gala ceremony on Thursday, November 16 in the Salon des Ambassadeurs of the Palais des Festivals in Cannes. This year, the awards have been expanded to include 13 categories, with an additional Special Jury Award for the F&B sector, reinforcing one of the main themes of MAPIC 2017.

A hugely experienced awards jury — headed once again by Primark group director of property, Tom Meager — and drawn from all areas of the retail world and all corners of the globe made the final decision for the best-inclass of 2017.

The categories for the 2017 event are: • Retailer Of The Year • Best Retail Global Expansion • Best New Retail Concept • Best Retail Store Design • Best Leisure Concept In Retail Space (updated from ‘retailtainment’) FOR TICKET INFORMATION Please contact MAPIC Awards coordinator Laurene Dureault at mapic.awards@reedmidem.com

MAPIC 2017 Official Sponsor

• Best O2O Strategy • Best Pop-up Shop • Best New Shopping Centre • Best Redeveloped Shopping Centre • Best Outlet Centre • Best Retail Urban Project • Best Futura Shopping Centre And, new for 2017, the Customer Service Excellence Award, in association with TRRAIN. The global reach of the MAPIC Awards was reflected in last year’s winners, which included Jewel Changi Airport in Singapore; Westfield World Trade Center, Samsung 837 and Tesla in the US; and El Palacio de Hierro in Mexico (submitted by Gensler). The European winners included France’s Zing Pop Culture, Italy’s Il Centro, the UK’s 24 Hour Ejder Club (submitted by Appear Here), the Netherlands’ Rituals and France’s Les Docks Village.

The ceremony will be attended by more than 300 of the world’s most influential retail real estate professionals.

MAPIC Awards 2017 Sponsor

Sponsor of Best outlet centre

Sponsor of Best pop-up shop

MAPIC F&B Global Content Partner

preview magazine I October 2017 I www.mapic.com

Group Director of Property Primark United Kingdom

Alain BOUTIGNY

Editor-in-Chief Sites Commerciaux – France

Edoardo FAVRO

Javier HORTELANO

Managing Director, Russia and CIS JLL Russia

CEO Gallerie Commerciali Italia Italy

Managing Partner Catella Asset Management Iberia Chairman AECC – Spain

Barry Spencer HUGHES

Laurence KARSENTI

Frédéric LALOUM

Design Director Benoy United Kingdom

Head of European Leasing Thor Equities USA / Europe

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

Mayte LEGEAY

BS NAGESH

Country Head France & Business Development Director Neinver – France

Founder TRRAIN Chairman RAI India

Enis ONCUOGLU

John SCOTT

John STRACHAN

International Director TM Lewin United Kingdom

Justin TAYLOR

Chairman intu properties United Kingdom

Fabrizio

VALENTE Head of EMEA Retail Cushman & Wakefield CEO and founder United Kingdom Kiki Lab & Ebeltoft Group – Italy

Chairman / Architect Oncuoglu +ACP Architects – Turkey

Klaus STRIEBICH

Managing Director Leasing ECE Projektmanagement Germany

Franck VERSCHELLE

CEO Advantail France

STOP BY THE F&B GALLERY “

WEDNESDAY & THURSDAY : F&B PITCHING SESSIONS WITH TASTING! MEET THE BEST FOOD SERVICE PLAYERS AMONG THE F&B PLAYERS...

1 Exhibition area Dedicated conferences Find them all in the online database FRANCHISE GMBH

Pitching sessions 400+ F&B players

BURGER &STEAK HOUSE

DISCOVER THE PROGRAMME ON MAPIC.COM MAPIC F&B GLOBAL CONTENT PARTNER

SESSIONS & EVENTS SPONSORS

DIGITAL CONTENT PARTNER

TECHNICAL SPONSORS

”

SPECIAL FOCUS

Food &

Beverage

© Photo: Anna Pustynnikova / Getty Images

IN THIS SECTION: Hungry for growth

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We showcase the global F&B trends and operators coming to MAPIC 2017.

Italy takes centre stage

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The world’s favourite food will have an enhanced presence at MAPIC this year.

FROM juice bars to gourmet concepts, MAPIC 2017 is spotlighting the Food & Beverage industry. This year we’re offering a dedicated F&B conference programme; focused pitching and networking sessions; a zone to showcase new concepts; and a special tasting area... all alongside the regular MAPIC. JLL are the obvious choice to partner with us on this exciting topic and we are looking forward to sharing their expertise from around the world of F&B with you.

Nathalie Depetro, MAPIC Director

JLL is proud to be the F&B global content partner of MAPIC 2017. As the world’s leading foodservice advisor we create substantial additional asset value through enhanced tenant performance, creating foodservice “places for people” and building experience into the foodservice provision.

Join us in the ‘Food Zone’ and on stand ‘Riviera 7 L15’ to meet the JLL team and to learn more about trends in F&B real estate and their impact on retail spaces.

James Brown Director and head of retail research (UK and EMEA), JLL Foodservice Consulting

preview magazine I October 2017 I www.mapic.com

THE F&B MARKET IS BOOMING SOME KEY FIGURES 27 mins*

18%*

Customers who eat during a shopping center trip spend on average 27 minutes longer in the shopping center.

Customers who eat during a shopping center trip spend 18% more in overall transactions.

The F&B phenomenon spreads around the globe…

Zoom on the total space in schemes dedicated to F&B*

10–15%

20–25%

40%

In some European market

In new destination schemes

In Asia

FOOD Halls: a must have for shopping centres — the new stars in the industry

Key trends…

Authentic food concepts, Tailor made dishes, Street Food, Healthy & Natural, Asian food concepts , Gourmetization

“

There’s no hotter trend than food halls. With the high traffic they are attracting, they now have a significant influence on how people go out and dine Didier Souillat, CEO of Time Out Market

* JLL

”

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© Joshua Resnick - Fotolia

Food & Beverage

Hungry for

growth Food and beverage has been a stand-out growth driver in turbulent retail times, and the public’s appetite for everything from street food to gourmet dining shows no signs of being sated. Mark Faithfull and Isobel Lee report on the F&B phenomenon

M

APIC 2017 has a greater focus than ever on the food and beverage (F&B) industry, in recognition of the extraordinary appetite for new dining concepts in shopping centres, transport hubs and high streets across Europe and beyond.

MAPIC’s dedicated F&B zone, featuring a tasting area and special conference sessions, aims to reflect and feed the hunger for original formats containing the key ingredients for success. Indeed, food and drink has not only reinvented itself within

malls and high streets, but stepped beyond its retail hosts to create new, theatrical environments combining food retail, dining and gourmet experiences.

The forerunner is Eataly, a global chain of huge emporiums dedicated to Italian food.

The company has redefined the gourmet space with a mix of Italian grocery, products, a range of eat-in and take-out counters, and dining areas. Eataly will open in Paris next year with Galeries Lafayette, while on November 15 it will open a massive food theme park in Bologna, Italy - Fico Eataly World.

The Bologna complex will include Italian restaurants and products but Fico Eataly World will essentially be the Disney World of Italian food, encompassing more than 20 acres in Bologna of fields and farmland, which will include 40 farming factories where visitors can see how farmers process meat, cheese, pasta and other Italian goods; 40 restaurants and refreshment spots; and six “educational rides.”

Neighbouring France is enjoying a renaissance in ‘tailored F&B concepts’, created as bespoke outlets under the umbrella of casual

14

Food & Beverage

Travel and entertainment publishing brand Time Out is due to open its newest Time Out Market project in Miami

“There’s no hotter trend than food halls. They now have a significant influence on how people go out and dine” Didier Souillat, Time Out Market

However, the travel and entertainment publishing brand recently had plans declined for a 17-restaurant, four-bar site with 450 covers over four floors at a former Shoreditch stables in London. Time Out had announced the plans in October last year, intending the project to follow in the footsteps of Lisbon.

It now seems set to turn its attentions to Porto and, especially, Miami. Souillat, says

© fotoatelie

© Visionsi - Fotolia

dining and quick-service restaurants. One such example is Five Guys, which is on the rapid expansion trail. “In Europe we expect to grow our store base with a total of 40 stores this year and in 2018 with 75 stores,” says Ramon Kabbedijk, vice president of international real estate and construction at Five Guys. “In the Middle East we currently have 10 stores, with 11 scheduled to open this year and 14 more in 2018. We are also preparing our market entry to Asia next year.”

In May 2014 city-entertainment publication Time Out turned an historic market hall in Lisbon into Time Out Market Lisboa. The concept unites some of the Portuguese capital’s finest restaurants, bars, shops and cultural experiences under one roof, based on Time Out’s editorial curation. This successful format, which notched up 3.1 million visitors in 2016, is now being rolled out to other global cities, including Miami and London.

Another example of the sector’s ambitions, and the growing power of food to be a game-changer in affirming destinations and focusing on authenticity, are the many individual store concepts created by coffee chain Starbucks.

“There’s no hotter trend than food halls.

With the high traffic they are attracting, they now have a significant influence on how people go out and dine,” says Didier Souillat, CEO of Time Out Market.

preview magazine I October 2017 I www.mapic.com

NEW YORK

LOS ANGELES

REAL ESTATE LEADER ALONG LUXURY RETAIL CORRIDORS IN GLOBAL GATEWAY CITIES ACROSS PARIS

EUROPE, LATIN AMERICA & NORTH AMERICA

CHICAGO

MI N

MIAMI

MONTREAL

VISIT US AT MAPIC STAND P-1.K2

MADRID

OFFICES NEW YORK THOR CORPORATE HEADQUARTERS 25 W. 39TH STREET, NEW YORK, NY 10018 +1 212 529 5055

MEXICO

LONDON 9-10 SAVILE ROW, MAYFAIR LONDON, W1S 3PF, UNITED KINGDOM +44 207 321 6360 PARIS 10 PLACE VENDÔME 75001 PARIS, FRANCE +33 1 53 45 54 48 MEXICO CITY REFORMA 2620 P16, MEXICO, DIF 11950, MEXICO +52 55 4170 1400

SAN FRANCISCO

LONDON

CANNES

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Food & Beverage F&B GROWS UP

Leonidas will have two coffee corners at MAPIC of the prospective first US opening next year: “Miami is a fantastic spot for Time Out Market. It’s a vibrant city, famous for its arts, culture, nightlife and a culinary scene that has recently been skyrocketing. People here have a real appetite for newness, quality, theatrical experiences and enjoying life.”

The Time Out Market Miami will be located at the heart of South Beach, at “a uniquely designed venue in a premier shopping destination, close to the iconic Art Deco District, the fabulous beach and some of the best hotels in this year-round popular destination”, Souillat adds.

“This is where we will offer our curation of the city’s best restaurateurs, mixologists and artists.”

Meanwhile, in August, UK celebrity chef Jamie Oliver opened a new format airport restaurant at London Gatwick. It is the second Jamie Oliver’s Diner, the original being on Shaftesbury Avenue in London. The 627 sq m Gatwick restaurant can serve up to 278 covers and is divided into three areas: a restaurant, an art deco-inspired bar and a grab-and-go deli. The menu is focused on American comfort food.

Oliver said he intended to “up the game” in airport food with the Diner’s launch.

Gatwick Airport’s head of retail, Rachel Bulford, adds: “We are excited to be continuing the long-established relationship between Jamie Oliver and Gatwick Airport. Jamie opened his first-ever airport restaurant here at Gatwick in 2012, which is still the only UK airport branch.”

As well as the Diner, Jamie Oliver’s restaurant portfolio includes 36 Jamie’s Italian sites, Barbecoa in St Paul’s and Piccadilly in London, and Jamie Oliver’s Fifteen in London and Westgate Bay, Cornwall.

Fellow TV chef Gordon Ramsay relaunched Plane Food at London Heathrow Terminal 5 in July, with the newly refurbished restaurant, which includes a new Asian Bar, where chefs prepare the food in front of guests.

Ramsay also launched Plane Food Grab & Go, an initiative for travellers who want to take food on to their flight.

Ramsay said of the twin initiatives: “Plane

EVERYWHERE you look, more — and better — food offerings are cropping up in shopping centres and retail schemes, as developers and investors get a taste for the F&B halo effect. Increased footfall, longer dwell times, higher spend and sales growth all come from a well-executed food offering.

While F&B is retail’s current plat du jour, the global and retail leisure landscape as a whole is undergoing widespread structural change — for better and for worse. Macro-demographic trends, advancements in technology, and changing consumer expectations and shopping habits are all playing their part.

The most influential is the emergence of the ‘experience economy’, driven by the millennials’ insatiable appetite for experience, often at the expense of ‘stuff’. This is now touching all age brackets, who are realising that experiences often increase happiness and are equally as valuable as ‘things’.

This realisation is changing the physical shape and function of the world’s retail places. The total space in schemes dedicated to F&B has grown from 5% a decade ago to 10%-15% in some European markets, and 8% in the US today. We expect to see this reach 20% of total space by 2025, as consumer spending continues to target F&B. New destination schemes typically have 20%-25% allocated to food in these markets, with extreme cases in Asia exceeding 40%.

In recent years, growth in F&B has Food has been setting the standards for airport dining since we opened at Heathrow Terminal 5 in 2008. In its stunning new form, [this] will take it all to another level.”

Also on the expansion trail is Chopstix Group UK, an Oriental quick-service brand, which in June launched in Munster, Germany with franchise partner Westfalen and local forecourt operator Jorg Binding. It is Chopstix’s first foray on to mainland Europe, with a second site already in planning. The first store outside the UK was opened by Applegreen

outstripped retail. People are also now more interested in experiential rather than transactional, functional food offers, which means that more restaurants and bars do not necessarily guarantee an improved F&B offer. This trend does mean, however, that there is real opportunity in this part of the market, if the offer is strategically planned and executed.

With opportunity comes risk. F&B is a dynamic and fast-moving sector, but this huge expansion in allocated space for food is unlikely to last forever. The retail industry is evolving from all angles, and it requires the right mix of guidance and expertise to successfully identify opportunities, navigate challenges and risks, and position for change as this segment grows up fast.

By James Brown, director and head of retail research (UK and EMEA), JLL in Ireland in 2015. Chopstix opened its first shopping centre outlet at Bluewater in 2010.

Max Hilton Jenvey, chief operating officer at Chopstix, says: “Germany’s love affair with Oriental food is supported by the strong growth of Asian take-away. Oriental take-away restaurants in Germany have grown by 10% over the last three years.

Chopstix Noodle Bar fulfils that need with faster, fresher, healthier, great-tasting Oriental fusion food on the move, at great value for money.”

preview magazine I October 2017 I www.mapic.com

See the world

differently

JLL is proud to be the Global F&B Partner of Mapic 2017 Join us in the ‘Food Zone’ and on stand ‘Riviera 7 L15’ to meet the JLL team and learn more about trends in F&B real estate, and their impact on retail spaces.

@JLLEuropeRetail | jll.eu/mapic | blog.jll.eu/retail

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Food & Beverage

MAPIC F&B sessions and events sponsor Autogrill said at its half year results that its focus remained on the execution of organic growth, leveraging its leadership position in North America, growing in new geographies, and focusing on efficiency in Europe. Revenue for the half year was over €2.1bn, up 2.8% (4.1% like-forlike). Italy, France and Spain proved strong markets in the period, while airport performance was particularly strong. Autogrill is active in 31 countries and has around 4,200 points of sale across approximately 1,000 sites, predominantly in travel, events, cultural and shopping centre locations. The company has a portfolio of over 300 brands, managed directly or under license.

“Germany’s love affair with Oriental food is supported by the strong growth of Asian take-away. Oriental take-away restaurants in Germany have grown by 10% over the last three years” Max Hilton Jenvey, Chopstix This year’s MAPIC will also showcase global F&B brands, such as luxury Belgian chocolate producer Leonidas, which is currently expanding through coffee corners. “Leonidas opened more than 60 shops in the world last year, and we plan more openings in the coming year,” says CEO Philippe de Selliers de Moranville. “We’ll have two coffee corners at MAPIC to give visitors the chance to discover our quality products in a fun and modern way. The key theme is business development,

Rocking the Wasbar: Soaps suds meet socialising in Belgium

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19

Food & Beverage building on our 1,400 shops worldwide.”

It is increasing its presence in travel locations through Lagardere Travel Retail, which recently opened a 40 sq m Leonidas store at Cologne Central Station. Lagardere Travel Retail Germany chief marketing officer Oliver Hempel says: “We are delighted that we are now able to offer an additional concept to operators of railway stations and airports, presenting an offer tailored to meet the customer’s individual needs at these locations.”

Meanwhile, Belgian restaurant chain EXKi is expanding rapidly in Europe. It will open another 12 restaurants by the end of 2017, including in two new markets (Germany and Spain). The network in Belgium, the

Netherlands and France will also be expanded and, by the end of the year, the chain will approach the milestone of 100 restaurants.

At the same time, EXKi has fully divested from the US. Its only two locations, in New York, have closed and plans for 50 more restaurants have been cancelled after the company found that the US consumer only wants to pay for fresh, quality food if it is brought to the table.

More proof that the F&B market continues to evolve and has space for quirky offers is provided by the hybrid Wasbar concept, which has now expanded to Antwerp with two stores. Wasbar, which is Flemish for ‘laundr y bar’, is a laundromat and

bar rolled into one. It was launched in Ghent in 2013 by Dries Henau and Yuri Vandenbogaerde, who gave up well-paid day jobs to pursue the concept after entering a television contest in their native Belgium for the most innovative new business enterprise. Belgian design studio Pinkeye was enlisted for the interior and branding of the second outlet, where a clean and friendly design is paired with vintage furnishings.

Wasbar also boasts a designated section equipped with desks, charging points, office equipment and complementary wi-fi access.

The company now has two Ghent outlets and two Antwerp outlets.

CONFERENCES & EVENTS AT MAPIC FOOD & BEVERAGE Emotional shopping and new lifestyles

TRAVEL RETAIL How to turn transit zones into food destinations

Wednesday 15 November - 14.00-15.30 Room 1 - Palais -1

Thursday 16 November - 9.00-10.00 Room 2 - Palais -1

Wednesday 15 November - 10.00 - 11.00 Room 1 - Palais -1

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FOOD & BEVERAGE From shopping malls to lifeplaces

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Food & Beverage

Italy takes centre stage Arguably home to the most global of all cuisines, it’s no surprise that Italy is well represented in the F&B zone at this year’s MAPIC. Isobel Lee looks at what’s on the menu

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CCOR DI NG to Dario Laurenzi, whose F&B advisory Laurenzi Consulting is exhibiting at MAPIC for the first time this year, there is a big demand for diversification in the world of F&B. “Once upon a time, you’d find pretty much the same tired formats in malls, restaurants and stations,” he says. “That era is over.”

“Once upon a time, you’d find pretty much the same tired formats in malls, restaurants and stations. That era is over” Dario Laurenzi, Laurenzi Consulting

Laurenzi’s boutique agency, based in Rome, features three professional chefs, six architects and five brand consultants, who help clients develop F&B concepts in their entirety, from the food and branding right through the mechanisms of growth. “We’re increasingly working with big retailer groups who have no food experience, but have realised it would add value, plus restaurants that want to expand,” Laurenzi says.

His clients include Italy’s rail network and Feltrinelli bookstores, as well as Fettucine Alfredo, the legendary Roman restaurant that is now seeking international growth.

Mario Mozzetti, the heir to the trattoria that invented the world-famous fettuccine Alfredo, has flirted with growing the brand in the past with restaurants in Kuwait and Brazil. “We’re now coming to MAPIC

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Food & Beverage

Coffee is on offer at MAPIC, courtesy of Caffe Pascucci

Caffe Pascucci is aiming to provide the atmosphere of a genuine Italian coffee shop in Cannes

in partnership with Laurenzi Consulting to meet with investors and potential partners to build a whole new series of Alfredo concepts, including pasta bars, with quick, quality dishes,” says Mozzetti, who works with partner Veronica Salvatori. “We’re working with a Michelin-starred chef to prepare the sauces in Rome before distributing them, and will also send our own chefs and consultants to carefully monitor and maintain the quality of the restaurants.”

With its world-famous reputation for cuisine, it is unsurprising that several rising stars in the F&B world originate in Italy. We Love Puro, a gelato, coffee and cake specialist founded by Gabriele Scarpato and Marco Urso three years ago, already has 20 Italian franchises, mainly in shopping centres. It is now eyeing international expansion. “We’ll be inviting potential partners and investors to taste our products at MAPIC, with a view to growing in Europe and beyond,” Scarpato says.

Gruppo Cigierre, established in the city of Udine in 1995, manages a number of successful dining franchises across Italy.

MAPIC is a chance to promote its USthemed Old Wild West burger and steakhouse. “We’ll be talking about our Old Wild West format at MAPIC this year to raise its profile,” says Gianandrea

Gropplero di Troppenburg, Cigierre’s real estate manager. “So far, we’ve opened two restaurants in France, which is the second most important territory after Italy for us, and we have significant expansion plans for the next few years. MAPIC is a chance to meet the biggest players in the sector

and promote our concept, which is a market leader in food courts across Italy’s shopping centres and cinemas.”

Italian coffee-shop brand Caffe Pascucci has already started developing its concept in some European countries via direct investments. It is heading for Cannes to build

Rising star: Gelato, coffee and cake specialist We Love Puro

preview magazine I October 2017 I www.mapic.com

4 Temps, La Defense Mall, France Malls Live, Meadowhall, UK

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Food & Beverage on its growing worldwide reputation. “At MAPIC, we’d like to find investors to develop the brand in Europe and beyond, in the countries where we are still not present,” says Fabio Andreani, Caffe Pascucci’s franchising manager. “We already have a number of big partners in South Korea, China, Malaysia and Malta. We think the best way is to let people try our coffee, so potential partners will be able to breathe the atmosphere of an Italian coffee shop on our stand.”

F&B took centre stage at MAPIC Italy in Milan this year

“We think the best way is to let people try our coffee, so potential partners will be able to breathe the atmosphere of an Italian coffee shop on our stand” Mamma Roma is a Belgian brand, but another to have built its name on Italian excellence. It has been serving premium Roman-style pizzas since 2005, first in Belgium and then in France. The brand is now targeting growth in stations and airports. Mamma Roma operational director, Antoine Morzadec, says: “We have a new

© Sara Fileti

Fabio Andreani, Caffe Pascucci

‘all in one’ concept. It can fit on an area starting from 4.8 sq m, plus a cold storage room, from which one client can be served every 90 seconds with fresh, hand-made crusty pizzas.”

Gruppo Cigierre is aiming to expand its Old Wild West format preview magazine I October 2017 I www.mapic.com

CONFERENCES & EVENTS AT MAPIC ITALY New development projects

Thursday 16 November - 17.30-19.00 Room 2 - Palais -1

“Heaven in a Brown Paper Bag” The Londoner

“Behold! The perfect burger comes to town” Time Out London

“Le burger qui va changer votre vie” A Nous Paris

“Five Guys está aquí para hacernos felices” Five Guys, Champs Élysées

Hola

Five Guys JV is the fastest growing restaurant concept across Europe and we are experiencing record volumes of sales in our restaurants.

Contact

We are looking for more prime A+ sites in the top High Streets and Shopping Centres across UK, Spain, France, Portugal and Germany.

Richard Collier Property Director E: richard.collier@fiveguys.co.uk M: +447827445404 Neville Maling Head of Property UK/Spain E: neville.maling@fiveguys.co.uk M: +447855275672

The target is to open at least 100 new restaurants (250 to 500 sq m) during 2017/18 in prime retail / gastronomy locations with high footfall and high visibility.

Philippe Cébral Head of Property France E: philippe.cebral@fiveguys.fr M: +33763267662

www.fiveguys.co.uk www.fiveguys.fr www.fiveguys.de www.fiveguys.es

David Menendez Acquisition Manager Spain E: david.menendez@fiveguys.es M: +34673459915

Daniel Sprenger Head of Property Germany E: daniel.sprenger@fiveguys.de M: +491741458190

STOP BY THE LEISURE ZONE! PALAIS -1

1 Exhibition area 30+ Conference & Pitching sessions 25+ Exhibiting companies 100+ Leisure specialists

ENTRANCE

THEY ARE EXHIBITING… AI SOLVE BILLY BEEZ BLACHERE ILLUMINATION CHARVET DIGITAL MEDIA CITYWAVE CONCEPT I DEDEM AUTOMATICA

FUNTOPIA GLOBAL LEISURE GROUP GRAVITY TRAMPOLINE PARKS HAPPY BOX IE PARK INTERNATIONAL PLAY COMPANY iP² entertainment

KCC BVBA LAPPSET CREATIVE PARAGON CREATIVE PLAY REVOLUTION PLAYCRAFT GROUP PLAYTIME PRO URBA

QUBICAAMF WORLWIDE LLC FRANCE UNO PARKS, JSC VORTEX WALLTOPIA ADVENTURE

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EuropaCity, on the outskirts of Paris

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Innovation & Leisure

To serve

and prospect This year’s MAPIC will examine the twin areas of customer experience and customer relationships through the expanded MAPIC Innovation Forum and Leisure Zone. Mark Faithfull looks at how technology and innovation are reshaping the retail/consumer dynamic

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IGHLIGHTING innovation, technology, leisure, and food and beverage (F&B) is nothing new for MAPIC. This year, however, will see the largest ever amount of space and content dedicated to these categories and how they are influencing and reshaping customer experiences and customer relationships within the retail environment.

Leisure and the customer experience now cover an enormous range of activities, from cinemas and golf to education, virtual reality (VR) and a host of newer concepts, such as the huge rise in dedicated trampoline parks. And the scale of such projects is increasing, as is demonstrated by the huge allocation of leisure at both American Dream Meadowlands in East Rutherford, New Jersey, US and EuropaCity, a new district on the outskirts of Paris dedicated to leisure and designed to reflect the evolution of lifestyles in an age of digital revolution.

Ubisoft’s Rabbids Amusement Center in Montreal, Canada

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Innovation & Leisure Conceived as Europe’s biggest leisure, culture, retail and entertainment village, the 80acre (32 ha) EuropaCity will include hotels, restaurants, shopping centres and concert halls, as well as parks, night clubs and bars.

It may even include a snow park. EuropaCity is being built in Gonesse, which is situated 16km northeast of Paris, between Le Bourget and Charles de Gaulle airports.

Initiated and backed by Auchan Group, Eu ropaCit y is bei ng suppor ted by Immochan and the CCI Paris Ile-de-France.

Construction will begin in 2019 for completion in 2024. The scheme received a major boost in February last year, when China’s Dalian Wanda Group confirmed a €3bn investment in the project and a new subway station is being built to enable tourists to access the site directly via metro from Paris.

The desire to converge digital and physical will be well represented at MAPIC. Ubisoft — best known for its gaming, especially Assassin’s Creed — opened its first theme-park ride at Futuroscope in Poitiers, France, as its first step into location-based gaming. Since then, Ubisoft has opened the Rabbids Amusement Center in Montreal, Canada, which it also operates. The company is now working on its first large-scale project at IMG Worlds of Legends in Dubai. In one of the biggest global licensing deals of its kind, Assassin’s Creed, Rabbids and Just Dance are the intellectual properties involved in the theme park, which extends across nine zones spread across over two million sq ft (185,806 sq m).

Meanwhile, one of the Leisure Zone’s most popular exhibitors from last year, AiSolve, will be back at MAPIC, having developed its WePlayVR gaming still further since its demonstrations in Cannes last year. AiSolve’s Mayan Adventure title recently launched at intu’s Trafford Centre in Manchester, UK, as part of the Namco Funscape facility at the mall.

Mayan Adventure is an immersive experience, with game players wearing VR headsets and treading a vibrating motion-floor system. Rob Cook, UK operations manager at Namco Funscape, says: “Bringing the latest entertainment innovations to our venues is very exciting for us. Virtual reality takes games to the next level — and the graphics are so clear, you really believe you are there.”

WePlayVR is being rolled out with Bandai Namco across the UK, Dubai and the US. AiSolve CEO Devi Kolli adds: “What’s unique about the WePlayVR single-player product is the ROI and value experience it generates over a small occupancy of 3 x 3 sq m. Its clever

DREAM FINALLY COMES TRUE

Nickelodeon Universe will be part of American Dream Meadowlands in New Jersey AMERICAN Dream Meadowlands in East Rutherford, New Jersey, the US, will open in March 2019 — and according to developer Triple Five Group, it will reinvent retailtainment. Don Ghermezian, president of the West Edmonton, Alberta, Canada-based developer, says 55% of the project’s three million sq ft (278,709 sq m) GLA will be given over to entertainment concepts.

“We believe American Dream is the retail entertainment project of the future, with over 50% of the space purely entertainment-based, versus 45% of retail GLA,” Ghermezian says.

“You’d be hard pressed to find a centre with more than 5% entertainment.”

More than a dozen major entertainment attractions have committed to the project: an indoor Nickelodeon Universe theme park; a DreamWorks waterpark; a Big Snow America indoor ski slope, the first modular design, with built-in motion floor, offers a comfortable and exciting experience that we’re very proud to offer to the market.”

“Virtual reality takes games to the next level — and the graphics are so clear, you really believe you are there” Rob Cook, Namco Funscape

in the western hemisphere; a 60,000 sq ft Toys “R” Us and FAO Schwarz (the only FAO in the world); a Cirque du Soleil; the first of three KidZanias in North America; an NHL-sized ice rink; an observation wheel; a Sea Life aquarium and Legoland Discovery Centre from Merlin Entertainments; adventure golf and indoor miniature golf; a trampoline park; and a rock climbing wall.

The food component will include up to 20 full-service restaurants, 16 of which will surround a lake. Names include the first branch of Carpaccio outside the ultraluxury Bal Harbour Shops in Florida, and a 24-hour diner. Plans also call for a gourmet food hall, created in partnership with a media company, where cooking shows will be filmed; and two food courts, including one that is 100% kosher.

Reporting by Debra Hazel Trampolining has also been a huge leisure success. US-based Sky Zone has, since the franchise launched in 2004, expanded to more than 165 locations across North America, as well as into Australia and New Zealand. Most recently, it opened in the UK as Freedome, and launches are scheduled for Guam, India, Kuwait, Mexico, Guatemala, Bahrain, Norway, Oman, Pakistan, Poland, Qatar, the UAE and Saudi Arabia.

Traditional children’s offers remain popular,

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Innovation & Leisure such as Alhokair’s Billy Beez soft-play adventure park, which will also be heading to MAPIC. Billy Beez first opened in October 2011 at Haifaa Mall in Jeddah, Saudi Arabia, and was the first of its kind in the Kingdom.

More Billy Beez have subsequently opened around the MENA region and there is also a large subsidiary operation in the US. Meanwhile, German fitness operator McFit is to expand its gym concept, which is centred around design and music. The first John Reed Fitness Music Clubs launched in Bonn and Salzburg in late July 2016. McFit, which is now present in Germany, Austria, Italy and Hungary, aims to have 30 studios open by the end of 2017.

Each club has its own unique design, with furnishings and features inspired by McFit founder Rainer Schaller’s travels around the world, particularly in Asia. Treadmills, weight machines and other traditional gym equipment sit among Buddha statues, colourful paper lanterns, leather armchairs and even wooden, Indonesian-style dwellings built inside the gym.

McFit is now diversifying its gym offering. It recently launched the World of Cyberonics concept, a virtual-only studio in which celebrities deliver training sessions on giant LED screens, in Berlin and has plans for a wider roll-out.

As the focus on the customer experience intensifies, “there is an element of polarisation” among malls, says James Cons, managing director of Leslie Jones Architecture.

“Secondary centres are now having to work much harder to prove the case for attracting F&B tenants,” he adds. “The need for place-making and adding character has become even more important. You can no longer just build and expect tenants to come. It comes down to adapting tired architecture and remembering that visitors are not passing through but dwelling, so the quality of finishes and materials needs to reflect that.”

“The need for place-making and adding character has become even more important. You can no longer just build and expect tenants to come” James Cons, Leslie Jones Architecture Closely tied with F&B is the provision of multiscreen cinemas. Cons adds: “Cinemas are still the driver of leisure at shopping centres, though

Freedome’s Dodgeball facilities in action

The McFit gym concept puts a focus on design and music the question remains as to just how many more cinemas can be developed. There are other offers, such as golf and trampolines, for example, but cinemas really fit the retail model in terms of dwell and use. There is a real synergy there.

With the new breed of boutique cinemas, there is also the F&B offer that they provide, which can often become an attraction, or complement a town in its own right.”

As for the future, Cons believes technology will begin to infiltrate retail environments.

And, while he says it is still early days for digital, “it’s time is coming”. He adds: “You don’t need a huge amount of space for virtual reality and augmented reality, and you also don’t

need to be reconfiguring space — you simply change the software to update the space. The philosophy is similar to cinemas, so it’s a good fit and whoever gets it right will do very well.”

preview magazine I October 2017 I www.mapic.com

CONFERENCES & EVENTS AT MAPIC LEISURE IN RETAIL DESTINATIONS Challenges & opportunities

Wednesday 15 November - 15.30-16.30 Room 1 - Palais -1 LEISURE Family Entertainment Centres: a fun environment for family success

Thursday 16 November - 13.30-14.30 Room 2 - Palais -1

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Innovation & Leisure

Intelligent customer relationships Customer relationships are being transformed by data and analytics, enabling retailers and shopping-centre owners to refine their offers and optimise their performance. Mark Faithfull looks at some of the companies showcasing innovative technology at MAPIC

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NGLO/ F R ENCH R EI T Hammerson recently completed a beta trial at London’s Brent Cross Shopping Centre with artificial intelligence (AI) specialist Cortexica, of the new visual search app tool, findSimilar.

The app aims to enhance the shopping experience, increase shopper engagement and drive footfall by delivering an intuitive and convenient way of browsing the thousands of products offered by retailers in shopping centres. findSimilar users can take pictures of fashion items or upload images already saved on their phones to find exact or similar products stocked in retail stores across the centre.

Once the user has selected their chosen product, the app then provides a map, which guides the customer directly to the store.

The trial marks the first time imaging functionality has been used as the basis of a product search. Hammerson piloted the visual-search tool at Brent Cross over the course of two months, as the next step in its strategy to enable a seamless omni-channel experience across its shopping centres. Hammerson first experimented with

shopping-centre apps in 2014, when it trialled its first app at Les Terrasses du Port in Marseille, France.

Following the success of findSimilar at Brent Cross, the trial could now be extended across Hammerson’s entire shopping-centre portfolio, says David Atkins, the company’s chief executive. “Our own research shows that, on an average shopping journey, customers use a combination of offline and online shopping channels,” he adds. “Initiatives such as findSimilar are designed to further blur the lines between the two, providing a convenient and engaging shopping experience.”

“On an average shopping journey, customers use a combination of offline and online channels. Initiatives such as findSimilar are designed to further blur the lines between the two” David Atkins, Hammerson

Hammerson’s findSimilar could roll out across its portfolio

UNDERSTANDING THE RETAIL ECO-SYSTEM “WHAT we feel is very important is connection of the whole retail eco-system: customers, retailers, commercial property companies and products and services,” says Guillaume Aurine, product marketing director at MAPIC Innovation Forum partner Salesforce, of the next generation of customer relationship management.

He also stresses the growing importance of data which could be used in a dedicated context in real-time, thanks to the new power of AI technology. A topic much discussed by the retail industry and yet often misapplied or misunderstood as

retailers and landlords grapple with how to use the vast amount of information available intelligently.

“Data is the new Eldorado,” he says. “For retailers it is crucial that they know how to handle the data in real-time, connecting it with their systems and increasingly with artificial intelligence (AI). With this power they can make accurate and informed decisions about location, strategy, brand and merchandise mix.”

Aurine says that Salesforce already has numerous companies enhancing and sharpening their retail offers through

using its CRM platform but stresses that intelligent analysis has become a “huge topic” that, as it continues to develop, will help retailers to get closer to shoppers. “It’s about being able to create a new experience, to gain a 360-degree view of the customer and to make new interactions,” he adds. “At MAPIC we will be demonstrating how the connected shopper interactions and the connected retail store mixed with AI can enable new strategies for pricing, products and advice in order to transform the whole customer engagement with experience”

preview magazine I October 2017 I www.mapic.com

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Innovation & Leisure Order, pay, enjoy is the principle of another mobile app, the exclusive launch of which has been reserved for MAPIC, says founder Jules Bernard. Alavance, created in collaboration with catering professionals, is an intelligent trading platform that allows customers to reserve a table and a menu in the restaurant of their choice, indicating the time of their arrival.

For restaurant owners, Alavance will be able to manage the booking as well as order taking and payment, including a summary of the number of people for the reservation, their arrival time, the dishes they ordered and the amount they have already paid.

For customers, the Alavance app displays the daily specials of the different restaurants around them within a perimeter defined by geolocation within the major French metropolises ahead of wider deployment within the European Union.

Spanish technology company TC Group Solutions has restructured its expansion department to address its internationalisation process, hiring Stephane Casimir as international trading director for a team working in more than 40 countries. The Barcelona-based big data and retail-intelligence specialist, which was established in 2007, claims to have installed more than 15,000 sensors worldwide, which collect millions of data points, anonymously and aggregated, about people’s behaviour and flow.

Norway’s IMAS claims to have developed the most advanced automated customercounting system available, allowing retailers to accurately and effectively measure customer traffic patterns. The information it provides includes actual shopper counts (real time and period-based) and entrance/exit patterns. IMAS has offices in Norway, Sweden, Germany, Thailand and

OUT-OF-HOME ADVERTISING AND RETAIL “FROM millennials, to young families, to well-heeled luxury seekers, malls offer brands a perfect opportunity to connect with millions of shoppers who are in the mood to spend,” says Mats Lundquist, development and innovation director at MAPIC Innovation Forum partner Clear Channel International.

“Located in high footfall, prominent locations, out-of-home mall advertising delivers high levels of timely impact and fame for brands.”

He believes that with consumer behaviour and technology evolving globally, out-of-home is transforming through huge investment in digital technology and that full-motion, digital Indonesia, and over 10,000 installations in 28 countries.

In May, Quiqup, a London-based delivery startup that operates a “shop on your behalf” app, raised £20m in Series B funding. The company says it plans to use the new capital to expand to other UK cities beyond London, and to “kickstart” international expansion. It will also invest heavily in its technology platform, including recruiting more engineers and data scientists to improve its algorithm. This will enable Quiqup to provide better delivery estimates and to anticipate demand patterns, according to co-founder and CEO Bassel El Koussa.

Launched with the mission of allowing consumers to order anything from its app for local, same-hour delivery, with an initial emphasis on food, Quiqup has since expanded

screens with mobile connectivity are opening up many new opportunities.

“Digital out-of-home advertising is more creative, interactive and targeted, enabling brands to deliver intelligent, real-time and contextually relevant content to consumers — all in a fraction of the time it once took,” adds Lundquist.

“Today, Clear Channel has some 6,000 digital screens in shopping malls across 12 countries — and growing — making it one of the leading innovators in this space. Technology used in this way is a real differentiator. In the next year, brands will be buying media differently, using more data and ultimately delivering more creative and engaging campaigns.” its proposition to provide last-mile delivery to businesses. This includes an integration service that incorporates Quiqup’s delivery service into large retailers’ e-commerce solutions. This is currently being used by over 25 Burger King restaurants in London. Quiqup has also partnered with Whole Foods in London, whose sole online ordering option is now via the Quiqup app.

El Koussa says: “As consumer expectations change, retailers of all sizes and verticals will be expected to offer flexible, efficient and affordable delivery services. Time is a precious commodity for today’s consumer. Quiqup was created to help people make more time for what they enjoy most.”

“As consumer expectations change, retailers of all sizes and verticals will be expected to offer flexible, efficient and affordable delivery services” Bassel El Koussa, Quiqup

CONFERENCES & EVENTS AT MAPIC DATA Mall as platform

Wednesday 15 November - 17.00-18.00 MAPIC Innovation Forum - Palais -1 THE NEW SEAMLESS CUSTOMER EXPERIENCE Interact with your customers and grow your business!

Delivery startup Quiqup has plans to expand beyond London to other UK cities, and thereafter internationally preview magazine I October 2017 I www.mapic.com

Thursday 16 November - 17.00-18.00 MAPIC Innovation Forum - Palais -1

MAPIC OUTLET SUMMIT TUESDAY 14 NOVEMBER, 2PM-6PM The 1st event dedicated to Outlet market professionals

JOIN US FOR AN INTENSIVE AFTERNOON PROGRAMME GATHERING INDUSTRY LEADERS

How new emerging customers behaviors are impacting the outlet Industry Global Market Overview: how the worldwide outlet market is evolving?

Upcoming outlet projects showcases: discover 5 international selected outlet projects From from traditional stores to customised outlet formats: discover international in-vogue retailers LIMITED SEATS! CONFIRM YOUR PRESENCE NOW at daniela.jakovljevic@reedmidem.com PRACTICAL INFO Date: Tuesday, November 14 – 2017, from 2pm to 6pm.

Where: Verriere Grand Auditorium.Palais des Festivals Level 1 Cannes MAPIC badge mandatory.

OFFICIAL SPONSORS

2017 • CONFERENCE & EVENT PROGRAMME FOOD & BEVERAGE SPECIAL FOCUS 2017!

TUESDAY 14 NOVEMBER

14.00-18.00 - OUTLET SUMMIT* (Verrière Grand Auditorium) - SPONSORS: FASHION HOUSE GROUP, NEINVER & THE OUTLET RESOURCE GROUP 17.00-18.30 - SAVILLS* (Salon Croisette) - ORGANISER: SAVILLS 19.30 - WELCOME RECEPTION (Majestic Hotel) - MAPIC 2017 OFFICIAL SPONSOR: THOR EQUITIES

WEDNESDAY 15 NOVEMBER ROOM 1 Palais -1

ROOM 2 Palais -1

9.00-10.00 OPENING SESSION: REIMAGINING RETAIL IN THE 21ST CENTURY! Co-org & Sponsor: McKinsey & Company

9.00-10.00 UNITED KINGDOM Investing in the UK market: next opportunities Co-org: REVO

10.00-11.00 TRAVEL RETAIL How to turn transit zones into food destinations Co-org: Retail & Food

10.00-11.00 USA Cosmopolitan inspirations & flavours Co-org & Sponsor: Newmark Knight Frank

11.00-12.00 POLAND PoLand of retail opportunities Co-org: Polish Council of Shopping Centres

11.00-12.00 RUSSIA Opening Russian retail Co-org: RBC Sponsor: ADG group

12.00-13.00 MIDDLE EAST 15 years forwarding: perspectives for retail & shopping centres Co-org & Sponsor: Arabian Centres

14.00-15.30 FOOD & BEVERAGE From shopping malls to lifeplaces Co-org: JLL Sponsors: JLL & Klepierre

12.00-13.30 INDIA A boiling market for international brands!

14.00-15.30 FRANCE French city centres, better places to live, work and shop!

Co-org: Elgam Conseil

15.30-16.30 LEISURE IN RETAIL DESTINATIONS Challenges & opportunities Co-org: TEA Sponsors: Parques Reunidos & AEDES SIIQ

15.30-16.30 ITALIAN RETAIL REAL ESTATE MARKET Retail Market Snapshot Co-org: CNCC

16.30-17.30 SPAIN The magic circle of retail in Spain: leisure, tourism & shopping Co-org: AECC

16.30-17.30 IRAN A dream market for retail Co-org: Retail & Leisure International

17.30-18.30 ARENA RETAIL Stadiums: where retail can also play Co-org: Savills Larry Smith

17.30-18.30 THE BEST OF CHINA!

FOLLOWING THE TRENDS

SHOPPING THE WORLD

MAPIC INNOVATION FORUM Palais -1

LEISURE ZONE Palais -1

F&B GALLERY Riviera 8

OTHER LOCATIONS & NETWORKING EVENTS 8.30-10.00 THIS IS STOCKHOLM (Verrière Grand Auditorium) Organiser: Invest Stockholm Business Region

10.20-10.40 APPADIA

10.20-10.40 PRO URBA

10.40-11.00 ACOREL

10.40-11.00 IE PARK-SOLI

11.00-11.20 CHARVET DIGITAL MEDIAL

11.00-11.20 FUNTOPIA

11.40-12.00 TC GROUP SOLUTIONS

11.20-11.40 GRAVITY TRAMPOLINE PARKS 11.40-12.00 BLACHERE ILLUMINATION

12.00-12.20 PTA GROUP BOOBALOO

12.00-12.20 LAPPSET CREATIVE

11.20-11.40 ESRI

10.00-11.00 GRUPPO ATR

11.00-12.00 ALAVANCE

12.00-13.00 CAFFE PASCUCCI

12.20-13.00 START-UPS ON STAGE!

13.00-14.00 DELIFRANCE

14.00-14.20 ART SOFTWARE GROUP

14.00-14.20 PLAYTIME

14.20-14.40 DROPIT SHOPPING

14.20-14.40 BILLY BEEZ

14.40-15.00 SAMSUNG ELECTRONICS

14.40-15.00 MYCOTOO

15.00-15.20 QUIQUP

15.00-15.20 DEDEM AUTOMATICA

15.20-15.40 DILAX

15.20-15.40 IP2ENTERTAINMENT

15.40-16.00 NEARBUY SOLUTIONS

15.40-16.00 CITYWAVE

14.00-15.00 HANS IM GLUCK

15.00-16.00 LAURENZI CONSULTING

16.00-17.00 WE LOVE PURO

16.00-16.20 SALESFORCE

17.00-18.00 MAMMA ROMA

17.00-18.00 DATA Mall as platform 18.00-19.00 FETTUCCINE ALFREDO

9.00-10.30 DEICHMANN FRENCH MARKET ENTRY* Breakfast (Salon Croisette) Organiser: Deichmann SE 11.00-12.00 CITY OF BRUSSELS* (Salon Croisette) Organiser: City of Brussels 11.00-12.00 THE LEISURE WAY* (Verrière Grand Auditorium) Organiser: The Leisure Way 12.00-14.30 BEST LUNCH* (Long Beach Restaurant) Organiser: Arendator.ru & BestGroup

16.30-18.20 GLOBAL RETAIL PARTNER SUMMIT* (Verrière Grand Auditorium) IN PARTNERSHIP WITH A.T KEARNEY & FRANCHISE EXPO SPONSOR: BROWN RUDNICK 16.30-17.30 USA HAPPY HOUR (USA Pavilion P-1.B70) 17.30-18.30 SPEAKERS’ DRINK* (Chairman’s Club – Palais 1) 18.20-19.30 CHAMPAGNE NETWORK COCKTAIL* (Verrière Grand Auditorium)

DIGITAL

LEISURE

FOOD & BEVERAGE

THURSDAY 16 NOVEMBER ROOM 1 Palais -1

9.00-10.00 HIGH STREETS Luxury vs. mass market retailers Co-org: Cushman & Wakefield Sponsor: Move Now

ROOM 2 Palais -1

9.00-10.00 FOOD & BEVERAGE Emotional shopping and new lifestyles Sponsor: JLL 10.00-11.00 THE NORDICS A Nordic perspective on the global F&B trends Co-org: NCSC

11.00-12.00 DESIGN & FOOD Shaping the retail real estate space: how to create the best F&B experiences?

Co-org: GH+A / Sponsors: GH+A & JLL

11.00-12.00 BELGIUM & LUXEMBOURG Belgian F&B brands going cross-border Co-org: BLSC

12.00-13.00 MIXED-USE From shopping mall to mixed-use

12.00-13.00 E-COMMERCE / ONLINE TO OFFLINE Brands & pure players: how to create the best physical experience?

Co-org: A.T Kearney

14.00-15.30 POP-UP CASES The new rules of modern shopping Sponsor: Appear Here

13.30-14.30 LEISURE Family Entertainment Centres: a fun environment for family success Co-org: TEA 14.30-15.30 GERMANY Boosting the German retail real estate market: digital, F&B, requalification...

Co-org: GCSC

15.30-16.30 INVESTMENT Why is retail property investment still one of the best real estate assets ?

Co-org: CBRE

15.30-16.30 TURKEY Discover in vogue Turkish brands Co-org & Sponsor: ITHIB

16.30-17.30 AFRICA Find the best places to invest in!

16.30-17.30 SWITZERLAND All information about your market entry into Switzerland Co-org: SCSC

17.30-18.30 CITIES How to re-enchant city centres?

Co-org: Urban Land Institute

17.30-19.00 ITALY New development projects Co-org: CNCC

MAPIC INNOVATION FORUM Palais -1

LEISURE ZONE Palais -1

F&B GALLERY Riviera 8

09.00-10.00 GRUPPO ATR

10.00-10.20 REFERO.RE 10.20-10.40 RETENCY

10.20-10.40 PLAY REVOLUTION / TAGACTIVE

10.40-11.00 IMAS GROUP

10.40-11.00 HAPPYBOX 11.00-11.20 WALLTOPIA ADVENTURE

11.20-11.40 FOTODIASTASI ILLUMINATION & DECORATION

11.20-11.40 INTERNATIONAL PLAY COMPANY

11.40-12.00 XOVIS

11.40-12.00 CONCEPT I

12.00-12.20 QUIVIDI

12.00-12.20 VORTEX

10.00-11.00 MAPIC PRESS CONFERENCE Special announcements

11.00-12.00 ALAVANCE

13.00-14.00 DELIFRANCE

14.00-14.20 AI SOLVE

14.20-14.40 MICROLOG

14.20-14.40 PARAGON CREATIVE

14.40-15.00 RETAILIC

14.40-15.00 UNO PARKS

15.00-15.20 VIA DIRECT

15.00-15.20 GLOBAL LEISURE GROUP

15.20-15.40 MODDO

15.20-15.40 KCC ENTERTAINMENT DESIGN

15.40-16.00 HIGH STREET REAL ESTATE

15.40-16.00 QUBICAAMF

16.20-16.40 CHAINELS 17.00-18.00 THE NEW SEAMLESS CUSTOMER EXPERIENCE Interact with your customers and grow your business!

Sponsors: Klepierre, Salesforce & Clear Channel 18.00 INNOVATION HAPPY HOUR Sponsor: Salesforce

8.00-9.30 USA BREAKFAST* (Verrière Grand Auditorium) Sponsor: Acadia Realty

10.30-12.00 MATINALE DE L’ECONOMIE (Verrière Grand Auditorium) Organiser: Metropole Nice Côte d’Azur

12.00-13.00 CAFFE PASCUCCI

12.20-13.00 START-UPS ON STAGE!

14.00-14.20 CONIQ

OTHER LOCATIONS & NETWORKING EVENTS

13.00-14.30 ITALIAN LUNCH* (Verrière Grand Auditorium) Sponsor: IGD SIIQ

14.00-15.00 HANS IM GLUCK

15.00-16.00 LAURENZI CONSULTING

16.00-17.00 WE LOVE PURO

17.00-18.00 MAMMA ROMA

18.00-19.00 FETTUCCINE ALFREDO

19.30-22.30 MAPIC AWARDS GALA DINNER* (Salon des Ambassadeurs - Palais 4) MAPIC 2017 Official Sponsor: Thor Equities MAPIC Awards 2017 Sponsor: Manyavar 23.00 MAPIC PARTY Open to all MAPIC Delegates (Salon des Ambassadeurs - Palais 4) Official sponsor: Thor Equities

*By invitation only. Programme as of 18th September 2017, may be subject to change.

CONFERENCE PROGRAMME

DISCOVER, SHARE, NETWORK! 200+ INTERNATIONAL SPEAKERS

Mustafa ASLANDAG CEO & Founder WHAT’S BEEF

Ross BAILEY CEO APPEAR HERE

Rachel BELAM Senior Food Leasing Manager, Leasing Executives WESTFIELD EUROPE

Louis BONELLI Head of Leasing KLEPIERRE

Saverio DE CARNE International Expansion Manager NAU

Jean DE RIVIERES Senior Vice President Parks UBISOFT

Richard FLINT International Director HEMA

Philipp GAJZER General Manager MOVE NOW COMMERCIAL BROKERS

Sergio GALLORINI Commercial Consumer Director G.E.S.A.C NAPLES AIRPORT

Denis GERVAIS Founding Partner GH+A DESIGN STUDIOS

Stuart GILLIES CEO GORDON RAMSAY GROUP

Martin GOERZ Head of Retail Asset Management DEKA IMMOBILIEN

Adam GRIFFIN Director Foodservice Consulting JLL

Sandrine GUICHARD Home & Decoration Retail & B2B Director LA REDOUTE

Fiona HAMILTON Global Head of Retail BNP PARIBAS REAL ESTATE

Damian HOPKINS International Director MATALAN

Elise MASUREL Head of Marketing KLEPIERRE

Laurent MILCHIOR Chairman ETAM GROUP

Stephan OEHL Chief Marketing & Sales Officer TALLY WEIJL

James PALLOTTA President & Chairman AS ROMA

Grigory PECHERSKIY Managing Partner ADG GROUP

Nicolas PERROT Head of Development ANTICAFE & CO

Andrew PHIPPS Head of Retail Research CBRE

Mathieu PROUST General Manager UBEREATS

Tobias PUDER Director of Business Development L’OSTERIA

Christian RECALCATI Managing Director SAVILLS LARRY SMITH

Nick SCHAPIRA Strategy & Development Director JAMIE OLIVER RESTAURANT GROUP

Eric SCHNEIDER CEO LDLC DISTRIBUTION

Didier SOUILLAT CEO TIME OUT MARKET

Klaus STRIEBICH Managing Director ECE PROJEKTMANAGEMENT

Justin TAYLOR Head of EMEA Retail CUSHMAN & WAKEFIELD

Simon TAYLOR Head of Business Development CONDE NAST INTERNATIONAL RESTAURANTS

Lisette VAN DOORN CEO Europe URBAN LAND INSTITUTE

Clifford L. WARNER Chairman MYCOTOO

Richard WHITE Vice President International Real Estate & Store Development FOOT LOCKER

[...]More speakers: mapic.com

© Copyright Prop Studios Ltd.

39

Retail

Online to offline: Missguided launched at Westfield Stratford

In an age in which, arguably, politics is shaping the retail industry more than economics, opportunities and challenges abound. Ben Cooper looks at the global picture going forward and showcases some of the retailers attending MAPIC

A year of living dangerously

A

NY HOPES that the political maelstrom that was 2016 would be followed by a steadier period were shot precisely eight days before last year’s MAPIC opened its doors.

The shock election of Donald Trump to the White House rounded off a year of political turmoil, coming as it did on the back of an opaque economic manifesto. The future of global real estate seemed equally unclear.

For retailers, a complex post-downturn economy is emerging, riddled with contradictions and complexities. It is fittingly paradoxical, for example, that despite the unprecedented political climate, the US economy has been in strong shape in 2017. In August, the Dow Jones Industrial Average hit a record high of 22,000 points following weeks of growth.

Just the month before, unemployment had fallen to 4.3%, with job creation far outstripping forecasts. Yet this is the year that the discounters arrived in the US, with German brands Aldi and Lidl hoping to conquer the

nation with the value model that has proved so successful elsewhere in Europe.

The high-profile high streets of Paris, Milan and London are still global stars in retail — once again, Europe accounted for five out of 10 of Cushman & Wakefield’s most expensive streets globally. But the eurozone as a whole is locked in a low-growth, albeit relatively stable, state.

On the one hand, the huge rising tiger of recent years, China, has seen growth deceleration for the first time. On the other, consumer spend is on the way up. Certain developing countries are not pulling up as quickly as forecasters would like; others, particularly in South East Asia, are rocketing ahead. And while global oil prices remain low, Russia’s economy, and its prospects for cross-border retail, are not as magnetic as many had once thought.

Naveen Jaggi, president of retail brokerage at real estate advisor JLL in the US, says that, when it comes to cross-border activity, both retailers and investors need to give each market its due consideration: “When you go to

“People don’t realise how big the retail market is in the Middle East, or that there are great retail markets in South East Asia as well” Naveen Jaggi, JLL London or Milan or Paris, there is a dependability and a certain risk management, because there’s an established track record. There’s a certain level of security. But people don’t realise how big the retail market is in the Middle East, or that there are great retail markets in South East Asia as well. The open markets are the first places for retail investors to consider, but I’d also be advising them to look at growth markets in Europe that have not been considered so much, such as Stockholm, Copenhagen, Manchester and Lyon.

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Retail Spotlight

Ones to watch Once again in 2017, MAPIC will welcome a host of first-time exhibitors alongside its established retailer roll call. Ben Cooper picks out a few to check out in Cannes

BEVERLY HILLS POLO CLUB BEVERLY Hills Polo Club is becoming ubiquitous on the global retail market. Founded in 1982, the preppy, upmarket clothing label, based on the style of the rich kids and even richer adults of California’s upper crust, has spread throughout the world, thanks to the company’s franchise model. The brand is now sold in more than 650 outlets worldwide and the company behind it is pressing ahead with plans to add another 100 stores in the Middle East, the Gulf and the vast Indian market over the next two years. Beverly Hills Polo Club’s seemingly inexorable expansion also includes big plans for Europe and South America.

CARREFOUR/CARMILA THE PHENOMENAL growth of French brand Carrefour has not just been in the grocery sector — the business has successfully turned its hand to property development and investment, and is still burgeoning globally. The good times began to roll when the grocer decided to take more control of the retail property around its stores, and the Carmila company was born. A period of major investment and expansion in numerous markets led to the announcement in June of a further capital injection of €557m, raised on the Paris stock market, to expand on its already heavy presence in France, Spain and Italy. The listed company now manages shoppingcentre assets well in excess of €5bn and is planning a raft of developments between now and 2020.

BOUDOIR PRAGUE BOUDOIR Prague currently operates two stores, both of which are located in the Czech capital. It sells a highly select fashion collection, made up primarily of clothing from two Spanish labels — The 2nd Skin Co and Ana Locking — and the Czech brand Gioia, founded in 2014 by model and actress Pavlina Nemcova.

preview magazine I October 2017 I www.mapic.com

THE NORDIC PERSPECTIVE ON THE F&B TREND Amerikka Design Office is a leader in Finnish shopping center and retail design as well as restaurant and beverage concepts.

The new shift that is happening in Finish attitudes is that they have shaken off the unnecessary humbleness and started appreciating their heritage with pride. The Nordic authenticity and attitude give direction to restaurant owners and in turn to interior architects in the F&B industry. Restaurant owner’s energy and the activeness pulls in the masses of whom the shopping center developers are interested in. Developers need to be able to work together as well as share the same passion in order for the co-operation to be successful.

AMF Fastigheter is one of Sweden’s largest real estate companies with 39 properties in Stockholm. Our vision is to create places where people want to be.

We see a future in concepts that are adapting to the fast-paced consumer trends and needs. We seek authentic operators, with a strong theme or concept, offering an ambiance the customer wants to spend more time in and walk the extra mile for. We see that the stronger the concept is to its core, the better it performs. Generally smaller menus and niched concepts perform better than very broad concepts in the city centre of Stockholm.

Locally produced and organic food is almost a must.

The best of traditional Chinese food culture along with sustainable future thinking. At Beijing8 we do what we love the most – dumplings and tea.

First of all, we think it’s important to realize that, at the same time that there are similarities, there are also pretty significant differences between the Nordic countries and their consumers. For instance, one of the common denominators would be the expectations of high quality natural ingredients and one difference would be our lunch habits, Swedes go out for lunch pretty much every day and Norwegians go out for lunch less often. One trend that is common for all markets is the increased need for more fast casual food options. The established fast food concepts have had a good run in the Nordics, but now it’s really time for the customer to enjoy and experience a greater variety of high-quality affordable food!

Opening in autumn 2019, Mall of Tripla will be Finland’s largest shopping center measured by the number of stores.

F&B is a fast growing trend in the Nordics, since people are after experiences. Shopping centers are increasingly more competitive with all other types of property also when it comes to restaurants, since malls cater to the customer’s every need from grocery runs to four course dinners.

Shopping centres need to rethink themselves to meet people’s social needs. Mall of Tripla will become an urban centre offering not only extensive shopping but also vibrant cultural and sports activities as well as a mix of local flavours and well-known restaurant brands.

Wester+Elsner is Scandinavia’s leading architecture firm for retail and commercial public space projects throughout the Nordics.

“Scandinavians are early adopters. So, given a fast-growing market for F&B we think it is fair to say that any trend you can think of is now evolving extremely fast in the Nordics. A general reflection for interior design is that “white, clean and slick” is out and “gaudy, motely, relaxed” is in. Most obvious F&B trends are creative cross-over formats of all kinds, along with awareness and consciousness regarding health and sustainability.

Stand no: R7.C18

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Retail Spotlight DEICHMANN GERMAN footwear giant Deichmann has kept true to the roots it put down in its home town of Essen back in 1913. Since then, however, the brand has come a very long way. In the century since Heinrich Deichmann first set up shop as a cobbler, the company that bears his name has achieved international renown and become Europe’s largest shoemaker, last year notching up sales of €5.6bn globally. In the UK alone, Deichmann plans to operate 400 stores — and the UK is just one of 23 international markets in which the shoemaker operates.

Deichmann’s appetite for retail property seems to be growing — it is actively looking for space on high streets, in shopping centres and out of town.

HOTEL CHOCOLAT UK CHOCOLATE lovers will be familiar with the temptation of walking past a Hotel Chocolat outlet.

The brand’s arrival on the international scene was somewhat low-key — its first overseas store was, in fact, in the British protectorate of Gibraltar and was opened via Channel Islands franchise partner SandpiperCI. Progress since then has been steady.

Not long after the Gibraltar franchise opened, Hotel Chocolat opened three self-owned stores in Denmark, all in and around Copenhagen. But the retailer, which ended 2016 on a high, is known to have had interest from overseas and, with its popular cafe concept, it seems more expansion is on the cards.

KIK IN THE 23 years since Stefan Heinig set up the first KiK store in Germany specialising in discount clothing, the retail chain that has grown out of the concept has taken its home market by storm. A first-time exhibitor at MAPIC, KiK may have branched out into nonclothing items such as toys, stationary and gifts, but the original concept — to offer value clothing — still accounts for 70% of its revenues. And the model has travelled well, to say the least. There are now more than 3,200 KiK stores throughout Europe and the chain is growing by 200 sites per year. Since 2007, KiK has had a big presence in the Balkans. It debuted in the region in the Czech Republic, where it now has over 175 stores.

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Retail Spotlight RAPHA MATALAN VALUE fashion brand Matalan has been a staple of the UK high street since the mid-1980s and has well over 200 stores — and growing — in its domestic market.

Now, the company is looking overseas, and is going the franchise route. A modest but steady growth period began in 2010 with the signing of a franchise agreement in Dubai, followed by more expansion in the Middle East and the Gulf States. Matalan’s international chain includes more than 25 stores worldwide. The company has eyes on further expansion in Europe, particularly in the Central and Eastern European states. In the past year, it has also opened stores in Armenia and Malta.

Matalan’s international director Damian Hopkins says the brand’s overseas performance has “exceeded our expectations”.

PEOPLE don’t just come to Cannes for MAPIC: the hills above the Cote d’Azur contain some of the finest cycle routes in Europe. Spot a cyclist on the Croisette and there’s a good chance they will be sporting clothing or accessories made by UK brand Rapha. The company has been on something of an expansionist surge in the past few years, growing its presence in the US, Australia, Korea and Japan. Although a relative newcomer — it was founded in 2004 and its ‘Clubhouse’ concept launched just seven years ago — Rapha has already made a name for itself in the hip world on two wheels, combining bikes and coffee in its stores.

SAMSUNG ONE OF the world’s telecoms heavyweights, Samsung could easily depend on its name alone to sell its smartphones. But the South Korean giant has brought its technology to bricks-and-mortar in the form of Samsung Experience Stores — and it is at the MAPIC Innovation Forum to spread the word. In the fierce battle for smartphone-user loyalty, the concept stores have taken the Samsung brand to the personal level, offering quality service and technical wizardry in stores and kiosks throughout Europe, the US and Asia. The first UK stores opened in 2014, with the launch of the Galaxy S5, following similar openings in Europe.

preview magazine I October 2017 I www.mapic.com

Already operating in: 5 continents 33 countries 190 locations

www.vapiano.com

Help us finding 150 more locations in the next 3 years! locations@vapiano.eu

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Retail Spotlight SEPHORA SEPHORA is owned by the French luxury conglomerate LVMH and has more than 2,300 locations in 33 countries.

It recently opened a new store in Boston, the US, which not only serves as its smallest footprint yet, but is also its most digitally enabled space. The 200 sq m Sephora Studio may only be half the size of a usual Sephora store, but it aims to raise the bar in terms of customer service. “There is no better way to create meaningful connections with clients than through personalised experiences and a customised approach to beauty,” said Calvin McDonald, president and CEO of Sephora Americas, at the Boston launch. All employees are equipped with an iPhone 7, enabling mobile point-of-sales purchases rather than queuing up at a till, as well as access to product information and reviews, and customised recommendations.

STEFANEL KNOWN for its chic, elegant knitwear and accessories, Italian womenswear brand Stefanel’s journey began in the 1950s. In his twenties, Carlo Stefanel would travel to the towns of northern Italy by bicycle to sell his home-spun wool from a market stall. First, he traded in the bicycle for a small van. Then he traded in the market stall for a designer’s board and knitting machines, and made the step into womenswear. Today, those simple days are long gone, but Carlo still plays a major role in the business, which is thriving overseas via a unique franchise model. Currently, Stefanel is creating headlines in Northern Europe and the Benelux region, where it made its debut in Amsterdam five years ago.

preview magazine I October 2017 I www.mapic.com

Creating Experiential Play with World Class Brands...

Visit us on stand P-1.D14 sales@paragon-creative.co.uk www.paragon-creative.co.uk

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MAPIC around the world

MAPIC feeds retail expansion In the run-up to this year’s MAPIC, events, exhibitions and meet-ups took place in Milan, Brussels, Paris, London, Moscow, Mumbai and Shanghai. F&B was at the heart of many of these events and our team reports from MAPIC around the globe

F

OOD & BEVERAGE has been at the heart of MAPIC’s events this year, none more so than at the second edition of MAPIC Italy, which took place on May 16-17 this year in Milan.

This underlined not only the buoyancy of Italy’s retail real estate sector, but also the country’s talent for creating stand-out food and beverage (F&B) concepts, according to MAPIC director Nathalie Depetro and MAPIC deputy director Francesco Pupillo.

“Italy’s retail offering has exceeded all expectations in recent times,” said Depetro.

“At this year’s MAPIC Italy, an important innovation was introducing an F&B summit on day one, and a permanent area for F&B operators. Globally, whenever we talk to real estate developers and shopping-centre operators, there is a strong interest in Italian F&B concepts. Italy is renowned the world over for its approach to food, so this influenced our decision to make food such a central part of this year’s event.”

The busy exhibition floor at MAPIC Italy

Meet-ups in London, Paris and Brussels focus on F&B It was a common theme for MAPIC. The rooftop of Aqua Nueva in central London was the venue for the first in MAPIC’s series of ‘unplugged’ networking events of 2017.

Hosted by JLL Foodservice Consulting in early May, the evening represented the initial stop for a road show focused on the successful execution of contemporary F&B, which would also take place in Paris and Brussels.

F&B offerings have become pivotal to the retail mix and London’s diverse set of speakers included landlords, developers, technologists and F&B entrepreneurs, who provided personal accounts of their launches and the prospects for F&B. “When you taste real, genuine, honest food, it stays with you forever,” said Time Out Market CEO, Didier Souillat, explaining how the media company is expanding its food emporiums. Meanwhile, inflexible long-term leases and the prohibitive

costs facing restaurateurs were discussed by Hammerson’s head of restaurants and leisure, Sarah Fox. Attendees also heard Alice Keown, asset manager at British Land, talk about the importance of place-making.

UberEATS general manager Toussant Wattinne gave his perspective on the role of technology in the home-delivery sector and his company’s ambitious plans to enlarge this category and build a major F&B-focused business.

James and Thom Elliot, founders of Londonbased restaurant Pizza Pilgrim, detailed the journey from street-food vendors to restaurateurs, while Stephen Tozer, co-founder of Soho’s Le Bab restaurant, discussed reinventing the kebab as a gourmet offer and Benugo founder Ben Warner talked about establishing coffee shops at the V&A and British Film Institute.

In Paris on May 30, around 160 attendees listened to Mathilde Lucas, workplace and design director at JLL Foodservice Consulting, examine the different trends in F&B — the consumer

Food for thought: One of the many sessions during MAPIC Italy preview magazine I October 2017 I www.mapic.com

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MAPIC around the world becoming a participant within an open kitchen, for example, and ‘gourmetisation’, or taking a basic product like pizza or burgers and making something special out of it. And again, Lucas said, it was all about the consumer experience.

Alexandre Liot, managing director of BHV Marais, and Arthur Lemoine, food and catering business unit director at Galeries Lafayette and BHV Marais, talked about Eataly coming to France, and where its first store will be at BHV Marais. Meanwhile, Vincent Mourre, the exclusive Wagamama franchisee in France, previewed the debut of the Japanese restaurant in the country this September.

The Brussels meet-up took place on June 8 at the Balls & Glory restaurant on the hip Rue de Laeken. The first meet-up to be held in Belgium, it brought together approximately 60 people in an event co-organised by the BLSC (Belgian Luxembourg Council of Retail and Shopping Centres) and Ian Hanlon, associate director at JLL Foodservice Consulting.

Philippe Lauga, managing partner at Kusmi Tea Belgium, talked about how the brand opened its fi rst Belgian store in the Docks Bruxsel shopping mall at the end of 2016 and has several new openings planned throughout this year and 2018.

Celebrity chef Wim Ballieu, owner and founder of Balls & Glory, explained how consumers are increasingly eager to eat healthily at an affordable price. He said that Balls & Glory, whose concept is “slow food served fast”, only has high-street locations so far, with no plans to open in shopping malls. There are now five Balls & Glory restaurants — four in Belgium and one in the Netherlands — serving typical Belgian ‘boulettes’. All the food is home-made from seasonal ingredients.

As for Italy, in all 1,500 delegates gathered in Milan in May, converging on the Superstudio Piu venue in the city’s fashion district. The 2017 event attracted some 550 retail real estate executives and brand representatives, beating MAPIC Italy’s debut-year attendance figures.

Major international companies including Carrefour, C BR E , C ushman & Wakefield, ECE, Eurocommercial, GCI, Generali, IGD, JLL, Savills Larry Smith, McArthurGlen, Svicom, Sonae Sierra, Multi and Promos returned to the event, alongside newcomers including Klepierre, Falcon Mall (Arabian Center) and Westfield. Some of the key brands to attend the second MAPIC Italy included Bestseller, Desigual, Dolce&Gabbana, Five Guys, Focus Brand,

GameStop, Kik, MediaWorld, Mondo, Pandora, Sephora and Tigota.

On day one, delegates heard that the latest initiatives had transformed modern F&B operations in shopping centres from “places to eat” to “places to fall in love with”, according to Jonathan Doughty, then JLL’s head of Foodservice Consulting, now ECE’s global head of foodservice. “People wanted great places to eat in shopping centres, but they didn’t exist,” he said. “Now, developers and shoppingcentre owners are taking a whole new approach in a crucial evolution for the industry.”

MAPIC’s Unplugged season started in London...

...before moving on to Paris...

Klaus Striebich, managing director of leasing at ECE Projektmanagement, used to work for a food retailer before moving into the world of real estate development and asset management. He said he still sought to look at the issue from both sides: “We can’t say we’re just focusing on food now; we need to bring all the different elements together in a shopping centre. At an industry level, we’re still learning how to do that.”

Other key speakers on the latest dining trends included Umberto Montano, president of Mercato Centrale, a franchise that has introduced vastly successful food halls to the cities of Rome and Florence, as well as Michelin-starred super chef Heinz Beck, who has reigned supreme on Rome’s restaurant scene for many decades.

On day two, delegates heard that Italy’s

“People wanted great places to eat in shopping centres, but they didn’t exist. Now, developers and shoppingcentre owners are taking a whole new approach” Jonathan Doughty, JLL/ECE

...and finishing with the first Meetup in Brussels shopping-centre industry was experiencing a healthy growth spurt, with development drives continuing apace, despite structural issues in the industry. “I think that the important thing to understand is how to be ready for the future evolution of the sector,” said Jose Maria Robles, general director of property management Italy at Sonae Sierra.

“Speed is a huge issue, both in understanding the formats of the future, and in responding to customer demand and desires.”

“Italian developers have to recognise that Italian banks can’t be relied on to finance projects these days,” said Lino Guatteo, managing director of Promocentro Italia. “We’re in a much more hostile financing environment.”

Another key session evaluated expansion

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MAPIC around the world “Speed is a huge issue, both in understanding the formats of the future, and in responding to customer demand and desires” Jose Maria Robles, Sonae Sierra opportunities via franchising. Christopher Jones, director of international franchising for Vapiano, said that a mixed approach to expansion worked better for the Germanheadquartered food chain. “We had to tackle this issue of handing our ‘baby’ over to strangers very early in our growth story,” Jones said.

“Since 2002, we have established ourselves on all continents, in 32 countries — there

are now over 180 Vapiano outlets worldwide.

Economically, the returns are better if you can directly grow yourself, rather than handing out franchise opportunities. That way, you only pick up franchise fees. So we always enter countries 100% Vapiano. Only after we are established and start to understand the market do we explore working with franchisees.”

Overall, the climate was one of positivity, marked by an appetite for evolution.

“MAPIC Italy is only two years old, but it’s already becoming a fixture in the international real estate calendar,” said Massimo Moretti, president of CNCC, the Italian Council of Shopping Centres. “Italy’s shopping-centre sector is performing well and has extraordinary potential, so it’s only right that sector operators are talking about it on an international scale.”

Looking forward to MAPIC in Cannes, Depetro said that her team planned to make a conceptual link between both exhibitions.

“We’re introducing an F&B area at MAPIC Cannes this year, which will be a one-off and provide an important bridge between MAPIC Italy and MAPIC Cannes,” she said.

Reporting: Isobel Lee (Milan), Mark Faithfull (London), MAPIC staff (Paris and Brussels)

CONFERENCES & EVENTS AT MAPIC MAPIC PRESS CONFERENCE Special announcements

Thursday 16 November - 10.00-11.00 Food & Beverage Area - Riviera 8 ITALY New development projects

Thursday 16 November - 17.30-19.00 Room 2 - Palais -1

MAPIC China Summit reflects maturing market

C

HINA’s retail industry gathered at the National Exhibition and Convention Centre in Shanghai this August for the 2017 MAPIC China Summit. It is the third consecutive year that the conference has been held in the city. This year’s event formed part of the enormous TASICC convention, organised by Wanda Group, which brought together 945 exhibiting companies from across the fields of technology, retail and real estate.

Among the attendees from 23 countries at the MAPIC China Summit were real estate investors, operators and developers, international retailers, and brands seeking to enter the Chinese market.

A key take-away from the three-day event is that Chinese retail is evolving into a higher quality market, with more sophisticated consumers and a growing emphasis on quality.

With household consumption growing faster than GDP, there are still plenty of opportunities thanks to a growing middle class.

However, Rebecca Tibbott, head of China retail at CBRE, predicted the balance of fashion tenants in shopping malls would drop from around 65% to 40%, with entertainment and food brands making up much of the difference.

In a series of pitching sessions, brands looking to enter China or expand their presence in the country outlined the opportunities and partners they were targeting. Among the participants were Caffe Pascucci and The Bagel Bar Coffee House, reflecting the growing demand for F&B and in-mall experiences.

“We are all about getting people to spend more time in malls, to enjoy their time there, to want to come back,” said Reinhart Viane, business development director for KCC Entertainment Design. “That’s why developers want more experiential brands in their malls.”

“Shopping malls have really become part of urban facilities,” said Marco Hamers, executive vice-president of Global Brands Group.

“Families go to spend a whole day there. The kids go to English lessons and playgrounds there, and younger people to coffee shops.

It’s different than five years ago, when 95% of the space was retail. Now, 30% at least is F&B, and the mall itself is entertainment.”

The conference programme was opened by Wang Zhibin, senior vice-president of Dalian Wanda Commercial Properties, who touched on the need for higher training among real estate professionals, as well as for a more collaborative approach between tenants and landlords, including longer lease options.

Shanghai hosted the 2017 MAPIC China Summit

The Summit welcomed attendees from 23 countries

preview magazine I October 2017 I www.mapic.com

51

MAPIC around the world “There is a very strong shortage of talent in commercial real estate. A person can have just one or two years’ experience and find themselves in senior management,” said Catherine Li, CEO of Leiden Business Academy, who hosted a panel on the opportunities for international retailers.

“Over the last few decades, a lot of government officials just haven’t understood how to develop a city with its own flavour, its own culture, so there are just too many shopping malls,” added William Wang, director of China operations at L’Avenue International Holdings. “Many young people are now working in e-commerce, but not in commercial real estate. At the end of the day, you need good operation, talent and management for these projects.”

Developing O2O (online to offline) strategies was a theme in almost every discussion, with

online sales already accounting for almost 25% of all retail sales in China. Frank Chan, national shopping mall director at Carrefour, said the French retailer was allocating less store space to products that sold well online, such as household appliances. Andrea Meoni, head of expansion for Calzedonia Group, said the Italian fashion brand would be launching on Tmall later this year.

“What I’ve heard from the majority of brands is that they open stores for the brand awareness, to allow customers to go in and see the quality, and touch and feel the products — and that boosts online sales as well,” CBRE’s Tibbott said. “As brands open in more cities across China, their e-commerce sales will go up. Bricks-and-mortar and e-commerce are hand-in-hand businesses.”

The Summit reflected the fact that retail in China is evolving into a higher quality market CONFERENCES & EVENTS AT MAPIC THE BEST OF CHINA!

Wednesday 15 November - 17.30-18.30 Room 2 - Palais -1

Reporting: Helen Roxburgh

REX TO REBRAND AS MAPIC RUSSIA WITH MAPIC owner Reed MIDEM at the helm of Moscow-based real estate show REX for the second year in 2017, exhibitor numbers were up 12.5% to 125 in 2017, of which 48 were new to the show. Visitor numbers also increased 13.7%, from 4,486 to 5,103, with 23 countries represented. In 2018, the show will change its name to MAPIC Russia.

From April 24-26, visitors to REX powered

by MAPIC were given the opportunity to see projects and shopping centres from 115 Russian cities, presented by exhibitors including ADG Group, ECE Russland, Fashion House Group, GarantInvest, Immochan, Immofinanz Russia, IKEA Centres Russia, MallTech (previously RosEvroDevelopment), Regions Group, SRV Development and Tashir Group.

New this year were specialised zones dedicated to digital and retailtainment.

Visitors could also visit a range of business events during the three-day event. On April 25, the marketing day focused on successful strategies related to brand development and presented case studies from several leading companies. April 2526 featured a retail real estate forum, which gathered together more than 50 industry experts across eight sessions.

Speakers included Luca De Ambrosis

Ortigara, founding partner and CEO of DEA Real Estate Advisor; Herve Montaner, expansion director for Europe at Sephora; Brendon O’Reilly, managing director of Fashion House Group; and Antoine Guillorit, head of international development at Groupe Noura/Lina’s.

Another first for 2017 was an international retail tour, which saw 10 retailers not yet present in Russia visit Moscow to meet the largest local developers and

shopping-centre owners to discuss expansion opportunities.

BHS international (UK), Garage/Dynamite (Canada), illycaffe (Italy), Losan (Spain), Matalan (UK), Mexcal (Ireland), NAU (Italy), Noura (France), Parfois (Portugal) and Queens Chips (Italy) visited the Metropolis, Aviapark, Khorosho and Vegas malls.

Reporting: Mark Faithfull CONFERENCES & EVENTS AT MAPIC RUSSIA Opening Russian retail

Wednesday 15 November - 11.00-12.00 Room 2 - Palais -1

REX powered by MAPIC, which from 2018 will be called MAPIC Russia

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MAPIC around the world

The Indian Retail Forum - powered by MAPIC welcomed 2,000+ delegates for two days of conference sessions, business and networking opportunities

India’s ‘unparalleled promise’ delivered at MAPIC Mumbai

I

NDIA is poised to almost double the size of its retail market in the next few years. This was the message given to the 2,000-plus delegates at the Indian Retail Forum 2017, powered by MAPIC, which was held on September 19-20 at the Renaissance Hotel in Mumbai.

Anurag Mathur, retail and consumer-goods practice leader for PwC India, said that, with organised retail in India currently accounting for just 8% of a $600bn market, there were huge growth opportunities. The country also has a very young, aspirational population — 47% of Indians are under 25 — and it is among the world’s fastest growing economies.

India’s 400 million urban consumers represent huge potential, said Nielsen India director Peeyush Bajpai in the opening address, describing the country as offering “unparalleled promise”.

Changes to government regulations have allowed international retailers to enter the market directly and several retailers, including fashion brands Collezione, Kiabi, Metersbonwe, Colin’s and Damat, presented their business pitches at the MAPIC International Retail Deck. Among the global brands to have entered India in recent years are H&M, Muji, Under Armour,

IKEA, Bally, Banana Republic and Coach.

Investment into India has also been increasing rapidly, with a host of private-equity groups, including Blackstone, the Canadian Pension Plan Investment Board and GIC, putting money into the market. By 2016, close to $700m had been invested in Indian retail assets by international private-equity firms. In 2017 alone, another $200m has been invested, according to CBRE. “About 11 years ago, we started investing in offices in India and, in November 2012, we thought the time was right to move into retail,” said Vikram Garg, principal at The Blackstone Group, which owns five malls in India. “After we bought our first mall, we made a lot of changes to the fit-out, and saw a double-digit increase in store sales.”

With mobile penetration in India estimated to reach 90% by 2020, the challenges of e-commerce and O2O were key themes in Mumbai, as was the creation of retail experiences.

Puspa Bector, executive vice-president and head of premium malls at DLF Utilities, outlined the company’s introduction of a virtual bot at DLF’s Cyberhub retail concept, giving shoppers a personalised service. “The critical question is: how do we create meaningful retail?” she said. “Our shoppers are all educated

and well-travelled, and now they want something more — they want to feel like a VIP.” Cinepolis India’s managing director, Javier Sotomayor, told delegates he believes India will become the cinema group’s biggest market, as demand continues to grow. “Cinemas in India are a very important and popular part of the mall,” he added.

On the digital innovation front, Harriet Green, general manager of IBM Watson internet of things, commerce and education, showcased a virtual changing room developed for one of her clients, which she said helped shoppers to spend on average three times more.

However, speakers also cautioned that, although private-equity investment is helping to raise standards, the Indian market remains severely under-supplied. In Delhi, the country’s top retail market, the current pipeline is a mere 850,000 sq ft (78,967 sq m).

Jermina Menon, vice-president of marketing at Virtuous Retail, warned that demand is already outstripping supply: “We still believe the availability of quality real estate will be the biggest hindrance to organised retail in India,” she said.

There were also calls for the international industry to remember the need for local customisation and the special cultural aspects of India.

“India has always been unique,” said Arvind Varchaswi, managing director of Sriveda Sattva.

“There are certain values that really resonate with your consumers, and the retail business needs to be connected to those values.”

Reporting: Helen Roxburgh

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Vive la retail revolution

French retail is echoing the country’s politics, with a more outward perspective and investment-friendly approach encouraging both domestic and foreign players to look afresh at the market. Ben Cooper reports

“W

E ARE in the world,” said Emmanuel Macron, on his way to the French presidency.

“France is not a closed country.”

Of all the candidates standing to lead France back in May, Macron stood most vehemently for one thing: globalisation. His victory marked what many have taken to be the end of the relative reticence of the French economy to engage with the wider global agenda, and it is a paradigm shift with which developers and investors are only now coming to terms, according to Jerome Le Grelle, executive director of retail at CBRE France.

“Owners and developers today will have to rethink the offer of a shopping centre,” he says. “They need to adapt the offer to the needs of their customers. But the answer isn’t really obvious. I don’t think we’ve found the new model yet. We need more leisure, culture and free activities. These will enable a shopping centre to continue to be a destination and a place where you can spend a lot of time. A shopping centre has to be a living place.”

“I don’t think we’ve found the new model yet. We need more leisure, culture and free activities. A shopping centre has to be a living place” Jerome Le Grelle, CBRE France Changing the fundamental nature of shopping centres is not a simple process, but Le Grelle says this will have to happen because the retail market — and shopper habits — have moved on. “When shopping centres were first built 40 or 50 years ago, they were based on the necessity for people to go every week to buy food,” he adds. “Things have changed. Society has changed. The family has changed and the structure of families has changed. To keep shopping centres attractive and attract shoppers, the owners of shopping centres need to really think and imagine what could be the next stage.”

It has been a welcome shift for shoppers, but not necessarily for retailers. Where fast fashion and discount grocery have gone, the markets they have disrupted have been forced to change their practices, supply chains and, most importantly, prices — downwards.

Le Grelle says that the fast fashion and discount trend has been nothing less than a “revolution” in the minds of shoppers: “With retailers like Primark, there’s been a big change in the way that people are consuming in the French market. The textile sector is quite worrying when you consider that this used to be one of the main sectors in France.

We have to pay attention to this. It reflects a major change in the retail market — a revolution in the habits of consumers.”

How shopping centre developers have responded to this revolution will be seen in the major openings due this year and next. In Paris, Altarea Cogedim’s five-storey mixeduse development at Gare Paris Montparnasse is due to open next year, ahead of the introduction of two new high-speed train lines from Paris to Bordeaux and Brittany. The development will bring 100 new retail stores,

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57

France WHEN LESS IS MORE THIS summer, Chris Igwe and Pierre Combet joined forces to launch a new company, based out of Paris, called More Or Less. The company aims to assist retailers and brands keen to optimise their retail strategy and portfolio. The objective of the company is to support retailers and brands in their pan-European plans, either through expansion (More) or through restructuring of their stores or by paying less in rent (Less).

Together, they have over 60 years’ retail experience, having been involved in real estate through retailer roles, advisory work and as part of industry organisations, including many years on the MAPIC Steering Committee.

Igwe and Combet say: “We believe that given the way the retail sector is going, approximately 30% of our time will be devoted to retailers and brands seeking to expand versus approximately 70% devoted to those in a phase of ‘less’, whether this is in the reduction of the portfolio or a reduction in rent. We do, however, consider that the effective management of the rent reduction negotiation process is as important as any planned store openings.”

Altarea Cogedim’s development at Gard Paris Montparnasse, due to open next year four anchor units and 30 restaurants to this transport hub in the centre of the capital.

In November Advantail opens the Honfleur Normandy Outlet centre, with a first phase of 12,700 sq m and 50 shops designed to capture the huge volume of tourism flowing through the city; while before the end of the year developer Frey will complete the 40,000 sq m Shopping Promenade Cœur Picardie close to Amiens, featuring 40 shops. The group also wants to tackle the renovation of first-generation retail centres and has been entrusted with two projects of €460m in total in Strasbourg and Montpellier.

In Metz, meanwhile, Apsys will open the doors to Muse on November 22. Located in front of the Centre Pompidou-Metz, next to the future Starck hotel and a few minutes’ walk from the historical city centre, Muse will include 34,000 sq m of office and residential space, and 46,000 sq m of retail. The cornerstone of the new Amphitheatre quarter, Muse will offer a blend of fashion brands, design, food and day-to-day shopping, as well as works of art created specially by major contemporary artists.

Muse is already 95% let, with more than half of the retailers that have signed up new to Metz. These include Primark, Uniqlo, Carrefour Market, Habitat, Alice Delice, Armani Exchange, K-Way, New Look, NYX, Superdry and Rituals.

“The fruit of more than 10 years of work, Muse is a bold and creative operation that has pulled together public and private players, architects and construction companies around a resolutely contemporary vision of the city. I’m absolutely convinced that Muse will set a new urban and commercial standard,” says Fabrice Bansay, CEO of Apsys.

Apsys started construction on the 70,000 sq m Steel in Saint-Etienne in early September and the project will open in May 2018. Located at the entrance of Saint-Etienne, Steel will focus on household appliances, DIY, recreation and sport. The project includes 5,000 sq m of indoor activities, 37,000 sq m of green space and playing fields, and 60 shops and restaurants.

In France’s second largest city, Marseille, the long-awaited 23,000 sq m Klepierre’s Le Prado scheme will open in the first half next year, designed by architectural firms Benoy and Rogeon to resemble an urban retail street.

Marseille will gain a new 9,400 sq m Galeries Lafayette department store, 50 retail units and six restaurants close to the Velodrome stadium and the Parc des Expositions. Zara will anchor the scheme with, at 3,300 sq m, the largest shop in the catchment area. In the food area, the rooftop will host concepts including the first Wagamama to open in a French shopping centre, Big Fernand and

“Muse is a bold and creative operation that has pulled together public and private players, architects and construction companies around a resolutely contemporary vision”

Les Petits Producteurs by famous French chef Thierry Marx.

The company stresses that food is a “key factor for success” and more than 30% of its malls will have re-invented, extended, or redesigned their food offer in the next three years.

Finally, opening in 2020 is UnibailRodamco’s La Part Dieu in Lyon, which will feature 80 new shops, bringing the total to 320 stores and adding 32,000 sq m GLA — a 5,800 sq m cinema, 7,000 sq m for restaurants and 19,200 sq m of retail.

The company is also redeveloping Gaite in Paris, which will also be completed in 2020, a mixed use scheme including social housing, public facilities, shops, restaurants, a hotel and new offices in the 14th district of the French capital.

CONFERENCES & EVENTS AT MAPIC FRANCE French city centres, better places to live, work and shop!

Wednesday 15 November - 14.00-15.30 Room 2 - Palais -1

Fabrice Bansay, Apsys

preview magazine I October 2017 I www.mapic.com

59

UK & Ireland

Westgate Oxford reports strong lettings ahead of its imminent opening

A very British problem Unprecedented political upheaval and the spectre of Brexit have continued to destabilise the UK economy. And yet there are signs that development volumes may finally be increasing in both the UK and neighbour Ireland, says Graham Parker

T

HE UK economy entered choppy waters at the beginning of 2016, as businesses deferred investment decisions ahead of the expected referendum on European Union membership.

When the electorate voted to leave the EU — a result that the vast majority of businesses neither expected nor wanted — investor confidence took a further downturn. And little has happened since to improve the climate, especially as far as the retail sector is concerned.

The August 2017 edition of the authoritative Retail Sales Monitor from KPMG and the British Retail Consortium found that nonfood sales had grown by just 0.4% over the preceding 12 months on a like-for-like basis. Helen Dickinson, chief executive of the British Retail Consortium, says sales had “relapsed into negative territory as the competition heats up over a shrinking pool of discretionary consumer spending power”.

Paul Martin, UK head of retail at KPMG, notes that shopping patterns remain mixed and advises: “With demand continuing to be weak, retailers would be wise to remain cautious.”

So what impact is this having on the retail property sector? Evidence from the leading retail landlords shows that the market is holding up remarkably well, with Land Securities, Hammerson, British Land and intu all recording occupancy levels of 97% and higher across

“One change we’ve seen in the past six months is that retailers are becoming more picky and a unit has to be bang-on for them to take it” Rhodri Davies, CBRE

their UK mall portfolios. But their holdings tend to be concentrated at the prime end of the market. Further down the food chain, the picture isn’t so bright, with the Local Data Company estimating that one shop unit in eight across the UK is vacant.

Rhodri Davies, head of UK retail at CBRE, says: “One change we’ve seen in the past six months is that retailers are becoming choosier and a unit has to be bangon for them to take it.”

However, when a developer can meet retailers’ exacting requirements in terms of location and unit configuration, there is still demand. For example, Legal & General Capital and Schroders had prelet 92% of their 530,000 sq ft (29,238 sq m) Lexicon development in Bracknell, west of London, ahead of its September opening.

And in Oxford, Land Securities and the Crown Estate are reporting strong lettings

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Le magazine des décideurs de l’industrie immobilière Le magazine des décideurs de l’industrie immobilière

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61

UK & Ireland

Opening day: Fenwick anchors Legal & General’s Lexicon, Bracknell scheme

Westfield London Relay Square, the eagerly awaited extension to the mall

progress on the 800,000 sq ft Westgate Oxford, the other major mall opening scheduled for the third quarter of 2017.

Similarly, Westfield has been able to accelerate the development of its 740,000 sq ft extension to the Westfield London mall in response to strong lettings. The scheme, anchored by a new John Lewis store, will now open in the second quarter of 2018.

Just across the water in Ireland, Hines Europe and Peterson have submitted a planning application to Dublin City Council that will reposition the former Central Bank HQ as a new landmark destination in the heart of the city centre. The building was acquired

by Hines and Peterson earlier this year, following the Central Bank’s relocation to new premises on North Wall Quay. The redevelopment will see the creation of a mixed-use scheme, known as Central Plaza, which will incorporate retail, restaurant and cafe uses at street and basement level, as well as the creation of a two-storey rooftop hospitality destination and viewing area. The proposal also

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UK & Ireland envisages an expansion of the existing plaza and the creation of a new street scape, creating a link between the key retail and tourist destinations of Grafton Street, College Green and Temple Bar. Enabling works commenced this summer and Brian Moran, senior managing director of Hines Ireland, says: “The Central Plaza proposal represents a significant investment

by Hines and Peterson in the creation of an outstanding mixed-use scheme that will reinvigorate this iconic city-centre building.”

But overall, development activity remains subdued and developers are preferring to extend successful existing malls rather than break ground on totally new projects. CBRE’s Davies does not foresee a surge in new activity: “Developing and extending shopping centres takes a long time — the incubation period takes years — so we’ll only ever see a handful coming to fruition at any one time.”

More often than not, mall extensions are focusing on diversifying the offer, according to Justin Taylor, Cushman & Wakefield’s head of EMEA retail. “Shopping-centre owners are responding to shoppers’ wishes to augment their physical shopping experience with a social or leisure experience,” he says.

“Development activity is increasingly focusing on new formats with a strong food and

“Despite the subdued levels of transactions in the second quarter, we have started to see momentum building in recent weeks” Mark Garmon-Jones, Savills

beverage presence, as well as leisure and entertainment operators to increase footfall, dwell time and spend.”

Investors are sharing retailers’ caution and the UK shopping-centre investment market remains subdued. Savills calculates that mall investment transactions for the first half of 2017 totalled £946.5m, compared to £1.51bn for the first half of 2016. However, according to Savills, another £700m of schemes are currently under offer and likely to complete in the second half of the year.

Mark Garmon-Jones, director of retail investment at Savills, believes this could mean a stronger second half of the year. “Despite the subdued levels of transactions in the second quarter, we have started to see momentum building in recent weeks,” he says. “The amount of stock already traded and also under offer leads us to believe that shoppingcentre investment in 2017 will be in excess of £3.5bn, above the £3bn seen last year.”

LONDON BUCKS THE TREND WHILE the UK retail scene is struggling against significant headwinds, the nation’s capital is an exception, according to Rhodri Davies, head of UK retail at CBRE. He points to a CBRE survey of international brands, which found that London is still the numberone destination for brands looking to build global networks.

“The population density and the volume of tourism means you’ve got a captive audience if you open in London,” he says. “London gives an amazing audience of shoppers.”

And while Brexit has caused unwelcome uncertainty for many, it has proved an unexpected bonus for London retailers. “The weak pound has undoubtedly had an impact on tourist numbers, and on the spending power of those tourists,” Davies says.

UK-based advisor FSP adds in its most recent update that, despite “seemingly seismic shifts in a world of uncertainty, people will come back to quality. Brexit hasn’t destabilised investment in London and more brands are looking to enter what remains a growth market.”

However, FSP observes that, outside of London, retailers are becoming more pitch-sensitive as explosive growth rates make some locations unsustainable. The increase in property costs means that acquiring the wrong store is costlier than ever, so retailers are preferring to wait for the perfect location.

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Germany

The Loom shopping centre in Bielefeld, North Rhine-Westfalia

All change as Germany realigns Germany remains a stable and prosperous centre for Europe and the economic and consumerconfidence indicators point to buoyant times. But change is likely to polarise performance prospects, says John Ryan

W

ITH Brexit creating disquiet across Europe, Germany looks a centre of stability and commitment to the long-term Euro project — a place that retailers can look to as a safe haven in potentially troubled times. Yet the continent’s leading economy is not immune to retail uncertainty and, for those in the business of acquiring, letting or developing retail space, the picture is mixed, depending on where you happen to be in this large country. It is worth noting, however, that as things stand Germany appears to be in a good place.

Frankfurt-based Boris Planer, chief economist at retail research house Planet Retail, says: “Germany is currently in a strong phase economically, with unemployment at the lowest rate since re-unification in the early

1990s, consumer confidence high and consumers gradually buying into the idea of upgrading their shopping trip.”

“Germany is currently in a strong phase economically, with unemployment at the lowest rate since reunification in the early 1990s and consumer confidence high” Boris Planer, Planet Retail He adds that low interest rates are discouraging saving — traditionally a mainstay of German thinking — and, instead, shoppers

are investing in big-ticket items, such as cars, furniture and household electronics. Even in the face of such economic positives, however, there is a problem. As in many other European markets, there is an excess of retail space and there is something of a flight to quality.

Frank Emmerich, head of retail Germany at CBRE, notes that, while there may be excess retail space, it is not evenly distributed. “On the plus side, there is definitely a clear focus on the top 10 cities,” he says. “But if you go beyond this, we see a clear slowdown in demand for prime retail sites, whether luxury or mass market.”

The effect of this is marked. Emmerich says that there is, in fact, a “pretty stable” rental situation as far as the top cities are concerned, but move away from key locations and rents are falling. It is a situation that has had a

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Germany

Berlin remains a major draw for international retailers... ...but some markets, such as Hamburg, may see rents decrease slightly clear effect on market entrants from overseas.

Emmerich observes that, in 2016 “we saw 55 new brands arriving in Germany and 90% of them were focused on the top cities”.

Effectively, this means that Germany, like many other major European economies, is seeing the rapid development of a two-speed retail sector, in which high streets with empty units are as commonplace in secondary locations, while full tenant rosters are the norm for prime.

This does not, however, mean a moribund retail arena. As Emmerich says: “Germans are sitting on money.” There is also the phenomenon of shopper loyalty — one of the reasons for the strength of H&M in Germany, which Emmerich says is targeting another 200300 stores on top of the 450 extant branches across the country.

Carlotta Matteja, senior international key account manager, retail agency, at Savills in Frankfurt, says that many of the new retail arrivals and expansions in Germany over the past 12 months fall into the ‘affordable luxury’ category, with names such as Sandro and Maje being prominent. She points out, however, that home-grown outfits are “not expanding strongly and there have been a number of bankruptcies, with New Yorker and Esprit both currently struggling with properties on the market”.

So what does all of this mean? Matteja says that in some cities — she cites Dusseldorf and Hamburg — rents are set to decrease slightly as there are “just too many developments”.

That said, the outlook in the biggest markets, notably Berlin, Frankfurt, Munich and Stuttgart, is positive.

The only real question looks to be the future of department stores. Planet Retail’s Planer says that this form of retail probably does not have a future in Germany — “at least not in its current form”. He adds: “I could see a chance for them were they are curating very exciting brands that are available at their stores only, embedded in an inspiring shopping experience. But the investment isn’t there, and the creativity and commitment probably aren’t there either.”

There is also the matter of price. Department stores are feeling the pinch as fashion retailer Primark continues to make inroads — a phenomenon that is also taking its toll on the fashion sector as a whole. Indeed, Primark opened its first store at the end of September in the region at the new ECE shopping gallery Loom in Bielefeld, a major German city in North RhineWestfalia. More than 50 retail concepts new to the city have been introduced, including the 5,000 sq m Primark located over three floors.

Further new brands include Adidas Originals, KULT, JD Sports, Thomas Sabo, Pandora, Stadt-Parfumerie Pieper (perfumery), Leder Berensen (leatherware) and MAC. The anchor tenants include a 1,000 sq m Intersport Voswinkel and Schuhpark Facies (shoe store), a 2,000 sq m Toys “R” Us, a Rewe supermarket and a market hall.

Many retailers that had already leased space in the old City-Passage have returned to new

Loom. These include Deichmann, Bijou Brigitte and Nordsee. “We are very pleased that we could convince so many retailers to join us at Loom. This achievement shows the quality of our shopping centre, but also the appeal of Bielefeld as a city,” says ECE senior leasing manager Sven Schwotzer.

“We are very pleased that we could convince so many retailers to join us at Loom” Sven Schwotzer, ECE For the next 12 months, it seems probable that little will change and that increasing market polarisation will follow a pattern already fairly well developed in markets such as the UK. Even allowing for this, Germany remains a retail behemoth and one in which all the major groups will continue to want to be a part.

Much of Germany’s old retail order is under attack from the keen pricing and rapacious nature of some of the newer operators in the country. This is a strong economy but, for some retailers, it also is a time of flux.

preview magazine I October 2017 I www.mapic.com

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69

Italy

A golden age of development It looks like being a pivotal year for Italian retail real estate, with the country’s development pipeline and a raft of new retail entrants signalling huge and perhaps overdue interest in the country. Isobel Lee reports

I

TALY is experiencing a golden age of development, as investor appetite for high-quality retail real estate assets and impressive consumption dynamics collide, according to Massimo Moretti, president of the CNCC, the Italian Council of Shopping Centres. “From a development point of view, 2017 will definitely be remembered as a key year for Italian retail real estate in terms of quantity and quality,” Moretti says. “The projects that are opening this year and the pipeline schemes are of an exceptionally high architectural level, attracting top brands.”

While around 300,000 sq m of new space is expected to open this year, compared to some 350,000 sq m last year, the sheer

number of active development sites is telling.

“This year has been characterised by several large shopping-centre extension projects, with new openings predominantly focused in northern Italy,” says Maddalena Panu, head of research at Savills Italy. “Looking forward to 2018, the development pipeline continues to be very healthy.”

From Verona’s Adigeo mall to the Torino outlet village and the significant extension of Oriocenter in Bergamo, which has become Italy’s largest shopping centre, this year’s launches are not short on ambition.

“Oriocenter has added brands, such as Giorgio Armani and Michael Kors, which is a very strong signal for Italy’s consumption trends and its place in the luxury world,’

Moretti says. “And, of course, the opening of the retail element of CityLife at the end of November will be a game-changer.”

Sonae Sierra’s CityLife Shopping District in Milan, spread over 32,000 sq m, is destined to become the largest urban shopping area in the country, with a catchment area of 700,000 inhabitants for its 100 retail units, cinema and health club. “This project marks a new trend of complex, mixed-use, innercity projects revitalising the retail offer of our biggest cities,” Moretti says. “Italy also has to step up and make more of these projects feasible, rather than just allocate out-oftown space for shopping centres.”

“While we aren’t seeing quite as many centres coming online as last year, the number

Sonae Sierra’s CityLife Shopping District in Milan

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Italy

Aedes’ Caselle Torinese, close to Turin

“CityLife marks a new trend of complex, mixeduse, inner-city projects revitalising the retail offer of our biggest cities” Massimo Moretti, CNCC

Aedes’ Giuseppe Roveda

of projects under development is higher than ever,” adds Marcello Zanfi, CBRE’s head of high-street and tenant representation in Italy. “In terms of high-street retail, Milan in particular — due to several international investors returning quite aggressively to the market — is also under the spotlight.”

US and Asian investors have come back to Italy in recent years, with Texasheadquartered Hines one of the more active players. “In 2016, Hines invested around €800m in Italy, particularly in the historical centre of Milan, with a sensitive exposure to the high-street component,” says Mario Abbadessa, managing director of Hines Italy. “This strategy will be the main focus for the next few years. The outlook for Italy is generally positive, with a strong focus on

those locations that are able to provide stability and connection with the international tourist flow, such as Milan, Rome, Venice and Florence.”

No wonder, then, that Italy’s presence at MAPIC this year is expected to be particularly potent, with a strong showing in the F&B zone from both established and upand-coming Italian brands, as well as a raft of exhibitors, from shopping-centre developers to investors and consultants.

Investor-developer Aedes is back at MAPIC with a stand to present its Caselle Torinese project. This hugely ambitious open-air mall near Turin will feature more than 250 stores across 120,000 sq m GLA, 15% of which will

“There’s a strong focus on locations that are able to provide stability and connection with the international tourist flow, such as Milan, Rome, Venice and Florence” Mario Abbadessa, Hines Italy

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Italy Westfield in Milan

be focused on leisure. “The architectural project is deeply innovative, developed on two levels as an urban network of streets, squares and stand-alone blocks,” says Giuseppe Roveda, Aedes’ CEO. “Its signature features are its fully natural open-air ambience with porticoes and awnings, ensuring maximum protection from unpleasant weather conditions. Only the food and beverage area will be enclosed and climatecontrolled, offering the ideal setting for a pleasant break.”

According to Roveda, ‘authenticity’ lies at the heart of Caselle Torinese, distinguishing it from the more ‘artificial’ shopping-centre environments. “The leisure area will include entertainment activities — some of them new for Italy — on more than 12,000 sq m GLA, with a massive F&B offer of more than 6,000 sq m,” he adds.

Meanwhile Milan-based real estate advisor Rustioni & Partners has decided to double the size of its stand at this year’s MAPIC in order to present several key projects, mainly located in central and northern Italy. “One of the schemes is WaltherPark, a shopping centre covering more than 35,000 sq m in the centre of Bolzano. This scheme marks the debut of Austrian developer Signa in Italy, with a plan to expand throughout the country,” says Simone Burasanis, head of shopping centres, retail parks and stand-alone stores at Rustioni & Partners.

He adds: “Work will start in the first few months of 2018 and the centre will open in 2021. We are also presenting Retail Park Valmontone, an open-air scheme near Rome with a GLA of around 60,000 sq m, and the redevelopment of the Milanofiori retail park. As well as commercialising shopping centres and retail parks, we’re also very active in Italy’s historic cities and towns. It’s an exciting time.”

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Intu’s project inTorremolinos, Costa del Sol

Spain & Portugal

Retail reigns in Spain again Spain’s growth story is driving big deals and ambitious developments, while Portugal’s recovery is also picking up pace. Sarah Morris reports

T

HOSE who stepped into Spain and Portugal during the dark days of the eurozone debt crisis and its aftermath are discovering their southern gamble was smart. Prescient investments are bearing fruit.

After a banking bailout five years ago, Spain’s economy grew 3.2% in 2015 and 2016, the country’s sky-high unemployment is falling and retailers are benefiting from a recovery in sales, boosted by record numbers of tourists. “Spain’s above EU-average growth is attracting strong interest from international brands,” says Oscar Garcia Marin, director of high street retail and tenant representation at CBRE Spain. New entrants this year included Japanese retailer Uniqlo, which

“Spain’s above EU-average growth is attracting strong interest from international brands” Oscar Garcia Marin, CBRE

opened in Barcelona, and a number of food chains, including Wagamama, which arrived in the capital Madrid.

On the high street, previous years saw the bigger fashion retailers taking advantage of attractive rental and property prices to move into larger flagship stores. This year, however, the emphasis is on smaller stores under 300 sq m, as international accessories, shoes, sports and beauty brands enter the market. “They are out to attract the millennials,” Garcia Marin says.

High street rents were up 6% in Madrid and up 5% in Barcelona. In Madrid’s popular Gran Via, the opening in October 2015 of Primark’s first Spanish high-street store has driven rents up to €240 a sq m on property between 100-300 sq m, putting Gran Via on a par with the the most expensive street in the city, Calle Preciados, in the central Sol area.

The clearest sign of how consolidated Spain’s recovery is becoming is the combination of deals and ambitious new developments both opening and in the pipeline. After an all-time record of €3.8bn invested in retail property last year, deals in the first half of this year were still up 188% to €2.4bn. Development, which began

again in earnest in 2015, accelerated this year.

Some 1.3 million sq m of shopping centre space is due to open by 2019, three-quarters of which is new construction, according to the Spanish Council of Centres and Commercial Parks (AECC). “There’s a real variety of centres being developed — indoor, outdoor, small and urban, larger out-of-town...” says AECC chairman Javier Hortelano.

AECC’s Javier Hortelano

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Spain & Portugal

Sambil is Spain’s largest outlet centre

UK mall landlord intu is one of Spain’s big dealmakers and developers.

It acquired the Xanadu shopping mall southwest of Madrid for €530m in March and signed a 50:50 joint venture deal in May with TH Real Estate.

The centre takes intu a step closer to its goal of owning and operating malls that are “resorts” — destinations that are able to pull in about 80% of Spain’s retail spenders by offering far more than shopping. Xanadu already has an indoor snow ski-slope, which alone attracts 400,000 people a year, and intu is adding an interactive aquarium to the centre, where children will be able to swim with the fish.

Intu acquired Parque Principado near Oviedo in northern Spain in 2013, which it revamped with a children’s play area on the ground floor, more leisure and a pergola linking it to the IKEA next-door.

It followed this in 2014 with the acquisiton of Puerto Venecia in Zaragoza. With the Xanadu deal, it now owns three of the top 10 malls in Spain. Aiming for 10-12 in the country, it has options for new developments on sites in Valencia, Vigo in Galicia and Palma, the capital of Balearic island Majorca.

But perhaps one of intu’s most ambitious projects to date is in Torremolinos on the Costa del Sol, where it is due to lay the first brick next year in partnership with Ian Sandford’s Eurofund Group, which was involved in developing Puerto Venecia.

The plans call for a theme park, based around a lake, leisure attractions including open-air skiing and an aquarium, and a hotel and

“Through the leisure we offer at our centres, the number of potential visitors is increased — people travel as much as two hours to spend the day at them” Salvador Arenere, Eurofund Group

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Spain & Portugal

Work has already begun on McArthurGlen Design Outlet Malaga, a JV with Sonae Sierra conference centre. Intu promises the retail units will be “wildly creative”. “Through the leisure we offer at our centres, the number of potential visitors is increased — people travel as much as two hours to spend the day at them,” says Salvador Arenere, group director at intu partner Eurofund.

Another scheme that aims to offer something extra was that by Venezuelan entrepreneurs, the Cohen family, in their refurbishment of the shopping centre they bought from Sonae Sierra in 2012 in southern Madrid. The Cohens have turned Sambil Outlet into the largest outlet mall Spain has seen so far — at 43,000 sq m, it is more than double the size of any other in the country — and incorporated a trampoline centre, a wind tunnel and a cinema.

Sambil director Arnold Moreno, who oversaw the development of the mall, says that, in the wake of the crisis, Spanish consumers have become “rational spenders”. He adds: “They know exactly what they want. If you want to win them over, you have to offer

innovation and better value for money.”

Sonae Sierra and McArthurGlen are also developing another designer outlet in Malaga, where construction works have already started on the McArthurGlen Designer Outlet Malaga. The 50:50 joint venture between McArthurGlen and Sonae Sierra, which represents a €115m investment, will create 30,000 sq m of new retail space and offer consumers a mix of more than 100 brands on its opening in 2018.

With some experts forecasting tourist numbers across Spain could top 80 million this year, Spanish and international developers are active in Spain’s resorts as well as in the capital. Development continues on the Canalejas Madrid Center in the capital’s Sol area, which aims to target high-spending tourists with a five-star Four Seasons hotel, up-market apartments and around 40 luxury stores. Architects are retaining the facades and key elements of the seven historical buildings that used to house some of Spain’s most important banks.

Spanish developers OHL and Grupo Villar

Mir sold 50% of the project this year to IsraeliCanadian businessman Mark Scheinberg, founder of PokerStars, for €225m.

In Portugal, retailers are also benefiting from rising retail sales and tourism, as well as the modernisation of high-street property after an overhaul of landlord and tenant legislation. Shopping-centre development is also back in a country that already has a mature sector. A case in point is the IKEA Group’s 83,000 sq m MAR Shopping Algarve, which offers a flagship IKEA and a designer outlet with 110 stores, plus a cinema, theatre and restaurants. Sonae Sierra is also working on the NorteShopping and Centro Colombo expansions in Matosinhos and Lisbon respectively.

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77

Russia & CEE

© Photo: Xxxx credit

The space race is back on

Apsys’ Posnania centre in Poland

Reignited schemes in Russia and a strong market in Central and Eastern Europe are signalling a return to development activity after a lengthy slowdown. Liz Morrell examines the region’s prospects

T

HE RUSSIAN retail development market has continued to be affected by the economic downturn and a drop in real disposable income.

But it seems that things may be looking up.

“These factors, together with the increased cost of capital caused by sanctions, has led to a decline in delivery volumes,” says Magomed Akhkuev, analyst in the research department of CBRE, Russia.

As a result, the market has suffered, but hope is returning. “Developer activity moderated considerably during the recession. Projects were frozen at various completion stages,” adds Ekaterina Zemskaya, regional director and head of retail group at JLL, Russia and CIS. Some of the halted projects are now back on line. “This year started with an announcement of such previously suspended projects as the 105,000 sq m Salaris and several small projects, as well as construction plans for brand new projects, in particular Vegas on Kievskoe highway in Moscow,” Zemskaya

says. “As the economy stabilises, we expect a further recovery of development activity, which will restore positive completion dynamics in 2018-2020.”

However, it will take a little time for the changes to filter through. “By the end of 2017, five shopping centres with a total rentable area of 195,000 sq m are [scheduled] for delivery, which is 58% lower than the previous year,” CBRE’s Akhkuev says. Among the new projects are the above-mentioned Vegas Kuntsevo (113,000 sq m), VTB Arena Park (20,000 sq m), Galeon (14,000 sq m), Vidnoye Park (27,500 sq m) and Milya/Zhulebino (21,000 sq m).

Although 227,000 sq m of space was completed in the first half of 2017, none was completed in Moscow, which has led to a decline in average vacancy rates from 10.5% in Q4 2016 to 8.8% in Q2 2017.

Akhkuev adds: “The high vacancy levels in the middle of 2016 were caused by the huge delivery volume of 361,000 sq m in Q3.” Among 2016’s biggest projects were Riviera (100,000

sq m), Riga Mall (80,000 sq m), Oceania (60,000 sq m) and Khorosho! (53,000 sq m).

The future of the Russian market will depend much on consumer purchasing power and overall economic conditions but, with US sanctions expected to be lifted or weakened this year, many are more confident about the market already. “There are still economic uncertainties, but we believe there are good prospects for industry growth, which is being driven by improving consumer confidence,” says Olga Starichenko, commercial director at privately-run fund Horus Management, which owns and is developing two Moscow-based malls: Riviera Shopping & Entertainment Center and Salaris. “There are not many new developments, but the old-generation centres are trying to reshape their interiors and retail offer to be more competitive.”

“There are still economic uncertainties, but we believe there are good prospects for industry growth, driven by improving consumer confidence” Olga Starichenko, Horus Management

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Russia & CEE Horus is one that is developing in the market. More than 18 months after opening, its Riviera Shopping & Entertainment Center has seen “positive change in leasing, as well as promising signs for sustained traffic growth”, Starichenko reports. The centre is more than 89% leased, with some 140 stores operating and more due to open this autumn.

Horus’ Salaris mall, which will include 100,000 GLA of retail and entertainment and is part of a major new transportation hub in a new part of Moscow city, is due to open in February 2019. The company has signed a 26,500 sq m Globus hypermarket for the scheme, which will be the first mall concept for the chain. The centre’s developers are also in final talks with an eight-screen cinema, a fitness centre and fashion anchors, many of whom will be revealed at MAPIC. “They are all big national and international chains and operators that will make the centre attractive to the consumer,” Starichenko says.

In 2018 the first city resort in Russia and world’s largest indoor theme park, Dream Island, will start construction on the banks of the Nagatinskaya floodplain in Moscow and Amiran Mutsoev, board member at Regions Group, describes the company as a “pioneer in Russia”. The project will feature City Walk, a space in front of the entrance, in the format of a city-style promenade, plus Walking Street Gallery, which will interconnect the three interior atria with transparent domes and a 3,500-seat concert hall and a large, modern cinema complex.

A street space will house 17 restaurants, 13 cafes, six restaurants with summer terraces, and themed shops, with large windows facing a landscaped park. A central square will be styled as a real town square and Mutsoev says: “I’m sure in the next few years we will see increasingly complex and interesting projects implemented in Russia, driven by new consumer preferences and the transformation of the industry.”

Elsewhere in Moscow, urban developer ADG Group is continuing with its plans to open a network of neighbourhood centres by the end of 2018. The new centres are being developed through the conversion of 39 historical cinema complexes, with UK-based design firm JHP assisting on the project.

“We are creating this new kind of real estate asset class that responds to both the needs of residents living in densely populated urban areas and the latest trends in real estate and retail markets,” says Grigoriy Percherskiy, managing partner of ADG Group.

Regions Group’s Dream Island, the largest indoor theme park, to be located on the Nagatinskaya floodplain in Moscow According to Percherskiy, the concepts for all 39 centres are now approved and will total more than 330,000 sq m GLA. Construction works began in the second quarter of this year. “It is an iconic project not only for ADG Group, but for Moscow and the entire commercial real estate market,” he adds.

LOOKING GOOD FOR FASHION HOUSE FASHION House Group has opened the first two phases of Fashion House Outlet Centre Moscow, the first fully enclosed scheme of its type in Russia. It is now developing Fashion House Outlet Centre St Petersburg. With this development and the planned phase three in Moscow, the group’s investments in Russia will exceed €200m.

In April 2016, Fashion House also launched the first online outlet centre in the country, available to more than 40 million customers in central and western Russia. The e-store, which guarantees delivery within four business days, is a key component of the group’s omni-channel strategy.

Fashion House Online Shopping offers more than 20 top brands, including Trussardi, Brums, Tom Tailor, Quiksilver and Meucci. The e-store portfolio is growing constantly.

ADG Group has also signed its major anchor tenant — supermarket chain Lenta — which will take stores in 36 locations, totalling 47,000 sq m and consisting of spaces ranging in size from 740 sq m to 1,800 sq m. As well as the supermarket, the centres will be anchored with 15% F&B and a cinema operator, which will be announced this autumn. Percherskiy says he is encouraged by the fact that 38 new international brands entered the Moscow market last year: “I can’t imagine a better opportunity to win the Moscow market than by joining a network of 39 neighbourhood centres. It is literally Moscow on a plate.”

In March, a consortium of buyers including Malltech and HALS-Development completed the sale of the 116,000 sq m LETO retail and entertainment complex in St Petersburg for an undisclosed sum. Malltech will manage what is the largest shopping complex in the south of the city.

“We are delighted that the LETO shopping and entertainment centre, a landmark in St Petersburg, has entered the portfolio of

“I can’t imagine a better opportunity to win the Moscow market than by joining a network of 39 neighbourhood centres. It is literally Moscow on a plate” Grigoriy Percherskiy, ADG Group

preview magazine I October 2017 I www.mapic.com

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Russia & CEE projects managed by Malltech. Our team sees great potential in this centre, which is one of the most popular shopping complexes in the city,” says Nikolai Artemenko, CEO of Malltech.

In Central and Eastern Europe, demand is looking more positive and should result in the expansion of existing centres, as well as some new developments, according to Mark Robinson, research specialist at Colliers International. “In the CEE markets where economic growth is accelerating and retail sales numbers are booming, such as in Poland and Romania, we estimate around half of the space currently under construction will be completed in 2017,” he says.

“We estimate that, in Poland, this will amount to circa 365,000 sq m out of the 730,000 sq m across the country. In Bucharest in Romania, the circa 60,000 sq m of completions we expect in the second half of this year are all extensions of currently operating centres.”

So what of the future? Robinson says the situation in Russia remains somewhat hostage to demand: “The very recent recovery needs to be sustained through future oil-price volatility or further sanctions-related action. If left alone, we believe Russia will continue slowly on its nascent improvement path and, gradually, supply will reappear and [more] of the frozen retail developments will be revived.

Pecherskiy, unsurprisingly, is more confident: “The Russian market is looking more than promising,” he says.

As for the CEE, Robinson says: “The economic cycle is strong and well underpinned by demand for the region’s exports from Western Europe and elsewhere. CEE consumers are receiving significant wage rises in this cycle so are likely to boost the demand

Riviera Shopping & Entertainment Center, Moscow

“In the CEE, the economic cycle is strong and well underpinned by demand for the region’s exports from Western Europe and elsewhere” Mark Robinson, Colliers International for consumer goods and entertainment in the coming few quarters and years. The marginal retail developer will thus likely be tempted to meet this demand with fresh supply.”

Notable among recent deals in CEE is Blackstone’s sale of four shopping centres in Poland: Galeria Twierdza in Klodzko (23,000 sq m) and its adjacent plot featuring a Broaster Chicken Drive restaurant; Galeria Twierdza in Zamosc (23,800 sq m), Galeria Tecza in Kalisz (16,000 sq m) and Wzorcownia in Wloclawek (25,600 sq m). The established centres have a diverse tenant mix, with anchor tenants across the four assets, including such retailers as LPP Group, H&M, Rossmann, Media Markt, Carrefour and Multikino.

Wzorcownia, Galeria Twierdza Klodzko and Galeria Twierdza Zamosc were acquired by Echo Polska Properties (EPP) for €141.6m, while Galeria Tecza Kalisz was sold to an undisclosed investor. The four shopping centres have been managed by Multi Poland since 2014.

EPP CEO Hadley Dean says of the acquisitions: “We are excited to boost our retail portfolio with another three regionally dominant shopping centres in line with our strategy of becoming Poland’s retail champion.”

In October, Posnania, the latest Polish flagship

by Apsys, will celebrate its first anniversary.

Posnania achieved 10 million visitors in its first 10 months from opening and earlier this

year Apsys secured the long-term, €260m refinancing of Posnania, which represents one of the largest ever granted in commercial real estate in Central Europe. The project’s initial financing during the development phase in 2014 already set a record in this area.

RUSSIAN BREAKFAST THE 27th Russian Breakfast, organised

by Impress Media, will be on November 16 at the Salon Diane in the Majestic hotel. The Russian Breakfast at MAPIC is a traditional venue for meeting and interacting with over 250 leaders within the retail real estate market in Russia and this year will take a new format, devoted to finding new business.

For registration contact +7 499 490 04 79 or l.surina@impressmedia.ru CONFERENCES & EVENTS AT MAPIC RUSSIA Opening Russian retail

Wednesday 15 November - 11.00-12.00 Room 2 - Palais -1 POLAND

Wednesday 15 November - 11.00-12.00 Room 1 - Palais -1

Amiran Mustoev, board member of Regions Group preview magazine I October 2017 I www.mapic.com

SITES COMMERCIAUX, LE JOURNAL DE RÉFÉRENCE DES PROFESSIONNELS DE L’IMMOBILIER DE COMMERCE. Parlez à ceux qui font le quotidien du commerce spécialisé, des centres-commerciaux, des retail parks, des grandes rues marchandes et des lieux de transport. En vous abonnant ou en annonçant dans Sites Commerciaux.

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The Hoog Catharijne mall in Utrecht

Benelux

NEO, in Heysel, north of Brussels

Benelux attracts retail magnetism Belgium and the Netherlands have established themselves as major retail destinations in recent years, with plenty of development to support their growing appeal, writes Ben Cooper

T

HE THREE largest Benelux cities — Amsterdam, Brussels and Antwerp — are among the most magnetic destinations for crossborder movement in Europe. While retailers might opt for Paris, London or Berlin as their first European choice, the major Benelux cities often pick up the second wave of expansion.

With 2.1 million shoppers each within 30 minutes’ drive, Brussels and Amsterdam naturally attract retailers’ attention first.

Research by JLL reveals that, of the 200 large international retailers sampled, 71% had a presence in the Belgian capital, while 78% had at least one store in Amsterdam.

The Netherlands, Luxembourg and Belgium are all blessed with strong retail spends.

Retail spend per capita is above €4,000 in all six of Belgium’s main cities, according to JLL, and in wealthy Luxembourg the figure is even higher, at over €6,000.

Retailers including Marks & Spencer, Bimba y Lola, Uniqlo and Apple have set up shop in Belgium in the past two years. In fact, in Antwerp and Brussels, retailers may have to look further for a store than in other European markets, since both cities have enviably low vacancy rates.

This call may be answered in the form of a raft of major new developments in and around the Belgium capital — not least, a

significant extension of the Atomium area, the NEO project — co-ordinated by NEO, a private-public partnership including the City of Brussels, Unibail-Rodamco, CFE, Besix and the Brussels Capital Region — which will bring with it 200 new retail units, as well as new restaurant and residential space in the Heysel area in the north of the city. A major urban project to boost shopping around Brussels city hall is also under way, with plans to improve the pedestrian streets around it by the end of next year.

Judged by the number of cross-border retail brands represented, Amsterdam is not just one of the most international shopping cities in the Benelux, but it also ranks high worldwide. And it is certainly not just the capital that has a pull for international brands — Rotterdam, Maastricht, Utrecht, The Hague and Eindhoven are all rich in new entrants from overseas.

In Amsterdam, Snippe Projecten is developing Hyde Park, a mixed residential, retail, F&B and amenities complex that is replacing a former office business park.

Multi also remains active in the Netherlands.

After completing the Mosveld convenience shopping centre in Amsterdam in June last year, the developer opened the Schuytgraff shopping centre and apartments complex in Arnhem in May. It is now on site in

Rotterdam, where it is preparing to unveil the mixed-use Forum Rotterdam scheme, which brings new retail, office and residential space to the city.

In 2019, the completion of a significant extension project by Klepierre of the Hoog Catharijne shopping centre in Utrecht, situated close to the city’s main railway station, is expected.

With more than 26 million visitors a year, Hoog Catharijne is the most frequently visited shopping centre in the Netherlands and on April 6 this year, Klepierre officially opened 16,000 sq m of new retail space, adding Zara, Zara Home, Bershka, Stradivarius, Name IT, WE Men At Work, Claudia Strater, Bijou Briguitte, Manfield, Burger Federation, Five Guys, Vapiano, Exki and McDonald’s (new concept); and health and beauty brands Yves Rocher, MAC and Rituals. The next phase, set to fully open in March 2018, is 65% let. When completed, at 78,000 sq m Hoog Catharijne will be the largest mall in the Netherlands and among the top five in Europe in terms of visitor traffic.

preview magazine I October 2017 I www.mapic.com

CONFERENCES & EVENTS AT MAPIC BELGIUM & LUXEMBOURG Belgian F&B brands going cross-border

Thursday 16 November - 11.00-12.00 Room 2 - Palais -1

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Turkey

Turkish malls open at record pace Conflicting economic figures make the Turkish market difficult to call right now. But one thing is certain — a significant development pipeline means a steady increase in retail space, writes Graham Parker

Emaar Square was the most significant opening of 2017...

O

BSERVERS of Turkey’s retail sector are spotting contradictory signals. On one hand, the AYD, the Turkish council of shoppingcentre investors, and Akademetre reported a 5.8% year-on-year decrease in footfall in the year to June 2017. But on the other, they reported a 10.3% uplift in shopping-centre turnover.

Similarly, Turkish government statistics showed the economy growing at 5% per annum in the first quarter of 2017, down on the rate of the preceding five years, but still considerably higher than the European average. However, inflation is running at more than twice this rate and consumer confidence is declining.

Asli Ozge Yilmaz, research manager at Cushman & Wakefield, sounds a positive note: “The counter-measures that are being taken by the government since the beginning of 2017 have actually boosted the Turkish economy, which is expected to be in a better position than anticipated at the beginning of the year. Although the inflation rate is still in two digits, it is expected that consumption will accelerate during the rest of the year.”

Retailers and property investors might be forgiven for not knowing what to do. JLL lists a number of headwinds facing retailers, including

“economic conditions, political uncertainties, regional conflicts and the extreme depreciation of the Turkish lira against the US dollar and euro”. Alongside these, increased taxes, higher import duties and a slump in the number of tourists have also hit the retail sector. As a result, JLL calculates that retail rents have declined by up to 40% since the start of 2016.

The problem for investors is that shoppingcentre development is a long-term process that cannot be switched off in response to short-term economic factors. And Turkey’s shopping-centre development pipeline is the biggest in Europe by a comfortable margin.

CBRE calculates that, at mid-2017, there was 1.3 million sq m of mall space under construction across 17 shopping centres.

According to Cushman & Wakefield, this means that Turkey is on course to overtake Poland as the second largest shopping-centre market in Central and Eastern Europe by the end of 2017. As usual, a number of Turkish brands will be together at the Turkish Pavilion, which will feature 12 companies, including Altınyıldız, Colins, Aymarka, Damat, Avva and Kigılı. Central to the Turkish presence in Cannes is the Istanbul Apparel Exporters’ Association (IHKIB), established in 1986

...anchored by Turkey’s first Galeries Lafayette and one of the most important associations for fashion, Turkey’s lead export. IHKIB has more than 9,425 member companies, representing 75% of Turkey’s total fashion sales and 12% of the country’s total exports. More than 500,000 sq m of new space was added to the market in the first half of 2017. By far the most significant centre opening was the 150,000 sq m Emaar Square on the Asian side of Istanbul.

Anchored by Turkey’s first Galeries Lafayette department store, Emaar Square is expected to attract some 25 million visitors annually.

“Although the inflation rate is still in two digits, it is expected that consumption will accelerate during the rest of the year” Asli Ozge Yilmaz, Cushman & Wakefield

preview magazine I October 2017 I www.mapic.com

CONFERENCES & EVENTS AT MAPIC TURKEY Discover in vogue Turkish brands

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87

The Middle East & North Africa

‘Westfield style’ shopping is promised at the £127m Al Araimi Boulevard

Back to the future in MENA The Gulf’s grandiose malls, with their weird and wonderful features, may originally have seemed outlandish. In fact, writes Mark Faithfull, they have pointed the way to the future and inspired a new generation of retail destinations

O

NCE upon a time, snowdomes, huge aquariums and massive, themed environments were peculiar to the Gulf Region. And yet, as retail destinations worldwide vie to differentiate and battle e-commerce, the Dubai-led approach is starting to seem rather forward-looking.

At MAPIC, the region’s next generation of shopping centres will be on view, with Majid Al Futtaim announcing that it will grow its existing portfolio with the development of the 40,000 sq m City Centre Sohar, Oman. The mall, located in the northern governorate’s historic capital of Sohar, is due to open in late 2018.

“As part of Majid Al Futtaim’s growth strategy, we aim to be at the forefront of Oman’s rapid development in the retail industry and bring the best shopping, food and beverage, and entertainment experiences to Sohar with this contemporary urban project,” says Ghaith Shocair, CEO of shopping malls at Majid Al Futtaim Properties. “We will be enhancing the city’s retail landscape with more

“We have created Al Araimi Boulevard as an exceptional lifestyle destination to bring people together in enjoyment” Shaikh Fahad Abdullah Ali Al Araimi, Al Raid Group

than 130 stores, an 8,400 sq m Carrefour hypermarket and a nine-screen VOX Cinemas, in addition to an array of dining and entertainment options.”

The construction contract for City Centre Sohar has been awarded to Al Turki Enterprises and work will commence in November.

Meanwhile, Oman-based real estate developer Al Raid Group is promising a “Westfieldstyle” shopping experience with the launch of the £127m Al Araimi Boulevard, an integrated retail, leisure and lifestyle destination. Located in the coastal suburb of Al Khoud, just a few kilometres from the centre of Oman capital Muscat, the development will be set over two floors and spread across 147,200 sq m.

Construction has begun, with completion expected by September 2018. The mall, which will house the biggest food court and the largest glass atrium in Oman, will provide 70,500 sq m GLA. The boulevards will be lined with glass-fronted stores, offering more than 210 retail units ranging from 70-160 sq m in size.

Shaikh Fahad Abdullah Ali Al Araimi, chairman and founder of Al Raid, says: “We have created Al Araimi Boulevard as an exceptional lifestyle destination to bring people together in enjoyment.”

Other markets are also opening up in the MENA region, notably Iran. Due to open in late 2018, Mica Mall is located on Kish Island, an Iranian free-trade zone that attracts more than one million visitors per annum. Significant investment is currently under way to bolster Kish Island’s draw for Iranian families.

The 750,000 sq ft (69,677 sq m) Mica Mall, designed by South African DSA Architects International, will offer more than 500 shops, services and entertainment attractions. Among the regional mall’s host of entertainment attractions will be an aquarium, ice-skating, bowling and digital golf facilities, a cinema complex, a gym and a spa.

French department store Galeries Lafayette is also understood to be considering opening a three-level store at the future Iran Mall, on the outskirts of capital Tehran. With a retail area of one million sq m, the mall is expected to host 1,000 stores, plus two hotels and several leisure complexes. Forecast to open in early 2018, construction is by Nantes-based Groupe NOX. The Tehran branch would become Galeries Lafayette’s seventh international store, after Berlin, Dubai, Beijing and Jakarta, Doha and Istanbul, while it closed its Morocco store last year.

CONFERENCES & EVENTS AT MAPIC MIDDLE EAST 15 years forwarding: perspectives for retail & shopping centres

AFRICA Find the best places to invest in!

Wednesday 15 November - 12.00-13.00 Room 1 - Palais -1

Thursday 16 November - 16.30-17.30 Room 1 - Palais -1

preview magazine I October 2017 I www.mapic.com

Voronezh region

a magazine about construction, projects, architecture and & realty

Architectural projects ready for implementation in Voronezh and Voronezh Region are published in our magazine

The regional specialized title Paradnyj kvartal has been a media partner of MAPIC for ten years. Our mission is to represent Voronezh region and the city Voronezh – the capital of Central Chernozem Region – as an actively developing administrative unit with interesting projects and investment sites in stock.

www.parad-catalog.ru

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Nordic focus

AMF Fastigheter’s new scheme links to its Mall Gallerian in Stockholm

Power trends in the north The Nordic territories have not always been at the top of retailers’ wish lists. But, writes Ben Cooper, the soaring success of Sweden has energised the wider market and attracted a raft of new players to this affluent and quickly expanding region

T

HE NORDIC territories were once a victim of their own northerly location. However, with retailer expansion strategies now primarily based around cities not countries, some well-known brands have made their debuts or expanded in the Nordic territories in recent years, including Burberry and The Kooples in Norway, and Hollister and River Island in Sweden.

Cue a raft of prime bricks-and-mortar opportunities — and developers delivering them.

Refurbishments and extensions tend to dominate, says JLL’s Fredrik Kolterjahn, chairman of NCSC, “with more focus on inner-city malls and city centres themselves as urbanisation continues and the capital cities grow.”

In Nor way, for example, Cushman & Wakefield estimates that 90% of the construction pipeline up to the end of this year is accounted for by extension projects.

In Helsinki, Mall of Tripla, a significant longterm development, will open in 2019 as the largest shopping centre in Finland. Led by Finnish developer YIT Group, the scheme will include 85,000 sq m of retail, dining and leisure space, with 250 new units.

Marcel Kokkeel, CEO of Finnish developer Citycon, notes that most of the company’s stronger shopping centres in the Helsinki area have been under re-development. He points to the recent extension of Iso Omena in Espoo. “Since the first opening in August 2016, footfall has increased by 28%, even though the new metro line is yet to start running,” he adds. “Our new restaurant concept M.E.E.T — meet, eat, enjoy together — has been well received.

Recycling of capital and non-core disposals remain a top priority.”

Indeed, Citycon, advised by JLL, confirmed in August that it is to divest the Espoontori, Tikkuri, Myllypuron Ostari, Martinlaakson Ostari and Jyvaskylan Forum shopping centres to an affiliate of private investment firm Cerberus Capital Management for €167m.

“Recycling of capital and non-core disposals remain a top priority” Marcel Kokkeel, Citycon

With Unibal-Rodamco’s Mall of Scandinavia now open, there is a different challenge in Sweden: capitalising on success. AMF Fastigheter, one of the country’s largest developers, is at work on the ambitious new mixed-use Urban Escape Stockholm, a 130,000 sq m project with retail at its core.

The scheme consists of a complex of new buildings and city streets, connected to the centrally-located Mall Gallerian.

Kolterjahn stresses: “The overall sentiment in the Nordics is good and will most likely continue for the coming year. This is largely due to positive growth in the Nordic economies and a strong retail market, mainly in Sweden and Norway. The challenges ahead lie in rising interest rates, with Sweden leading the way with a negative interest rate of -0.5%, and changing consumer behaviour.

“The Nordics are still viewed as a very dynamic and attractive market for retailers, even though there have been some signs of a slow down during the past year, mostly due to the fact that many international brands are having some difficulties in their home markets.”

preview magazine I October 2017 I www.mapic.com

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Nordic focus IKEA CENTRES LOOKS TO NEW MARKETS FOR GROWTH “IKEA Centres wants to be closer, more accessible and more relevant.

We are improving existing centres and developing new centres where people can connect, socialise, be inspired, have new experiences, shop, eat and spend time,” says Carsten Heidtmann, leasing manager of Denmark-based IKEA Centres. “We have a number of new openings across Europe, including MAR Shopping Algarve in southern Portugal [opened late September], followed by two openings in Poland, Lublin and Poznan, and the Designer Outlet in Zagreb, Croatia, which is a new market for us.”

IKEA Centres is also looking to expand on its first three LIVAT centres in China, with plans to have between 13 and 15 centres by 2030, including Shanghai and Changsha. In Russia, the focus is on refurbishing its MEGA centres and doubling F&B space, while several new locations are under consideration.

“We are constantly looking to improve the customer experience and adapt to the changing needs and desires of the local communities,” says Heidtmann.

“This includes strengthening the F&B and leisure, building relationships with local clubs and institutions, or, where we can, extending some centres to include new tenants, services and activities. It is about connecting with and listening to our customers and understanding their needs to create a better everyday life for the many people.”

IKEA in MAR Shopping Algarve, in southern Portugal

Citycon’s new restaurant concept M.E.E.T in the Iso Omena centre in Espoo, Finland In August, Standard Life Investments, funded by pbb Deutsche Pfandbriefbank, completed the purchase of the Stora Bernstorp retail park and plans to extend it by 45,000 sq m and rebrand it as Handelsplats Bernstorp. In the same month VIA Outlets, the pan-European venture formed by APG, Hammerson and principals from Meyer Bergman and Value Retail, agreed to acquire Norwegian Outlet Oslo from Glastad Holding and Fortus for approximately €120m.

The acquisition will add a second Scandinavian asset to VIA Outlets’ portfolio.

Timon Drakesmith, CFO of Hammerson and chairman of VIA Outlets’ advisory committee, says: “We plan to take Norwegian Outlet Oslo to the next level. This acquisition will strengthen VIA’s foothold in the attractive Scandinavian market and deliver synergies with our other asset in Gothenburg, Sweden.”

As for MAPIC, Marika Wærn, NCSC managing director, adds: “We have a truly Nordic mix of companies on the pavilion, which has attracted a lot of attention due to it’s modernist design by Studio Stockholm, used for the first time last year and returning again with some modifications. It allows interaction and spontanious meetings in a relaxed way, across borders. We’ve had five conferences around the Nordics this year, a fast growing Nordic Young Professional Network and Nordic Security Network, as well as study tours around the world.”

VIA Outlets’ Norwegian Outlet Oslo preview magazine I October 2017 I www.mapic.com

CONFERENCES & EVENTS AT MAPIC THE NORDICS A Nordic perspective on the global F&B trend

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North America The Flower Court in the American Dream project

The third age of American retail The North American retail market has defied dire predictions of mass store closures by adapting and mixing real estate uses, writes Debra Hazel

R

EPORTS about retail in North America show nothing but doom and gloom, with predictions of store closings, mall shut-downs and more. But no-one seems to have told retail real estate owners and developers. Retail complexes are adding other uses, especially food and beverage (F&B), to their complexes, while high streets are adding retail, especially dining, to office buildings.

All are doing so to attract a shopper who increasingly wants a big-city, pedestrian-friendly feeling and is looking for experiences above and beyond merchandise. It isn’t surprising, then, that projects in urban markets are adding other uses — office buildings such as the Willis Tower (formerly the Sears Tower) in Chicago are expanding their retail offerings, while retail projects are including more F&B. But the predictions do have a basis in fact.

Announced store closures for 2017 skyrocketed compared with the previous year — the

result of a major shift in retail that has particularly affected the big boxes that were so popular in the 1990s but are struggling today. “The hollowed-out middle class in the United States is not buying the way they used to,” says Eli Haddad, owner of the Beverly Hills Polo Club international brand in San Juan Capistrano, California. “The US is over-stored.”

Haddad’s company is pursuing expansion in Europe, which he says is “ripe for the affordable luxury fashion segment”, as well as Asia, and is expanding its line to include childrenswear.

“The hollowed-out middle class in the United States is not buying the way they used to. The US is overstored” Eli Haddad, Beverly Hills Polo Club

Others note, however, that this retail shift has been a long, ongoing process. “This is the final act of a three-act play,” says Naveen Jaggi, Houston-based president of retail brokerage for real estate advisor JLL. He explains that, in the first act — in the early days of the great recession, the weakest players such as electronics chain Circuit City and discounter Mervyn’s shuttered completely. In the second act, from about 2013 through 2015, struggling chains renegotiated their leases. Now, this current and final act is seeing the closures of those chains whose efforts simply weren’t enough to survive. “That will result in a much healthier environment,” Jaggi adds. “Quality real estate will always be quality real estate, and those are in healthy markets.”

What the shopper wants has changed. They are seeking dining, entertainment and an urban experience that favours smaller stores. Food halls are proliferating around the US and many shopping centres are replacing vacant anchors with ‘restaurant

preview magazine I October 2017 I www.mapic.com

The American Market today is pioneering new concepts on dining, entertainment experiences and more broadly on Retail. MAPIC invites you to visit the USA Pavilion to discover the current retail landscape in America.

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North America “Retail is changing. There are no vacancies at the Mall of America. It’s an entertainment experience” Gary Sankary, Esri

rows’ of dining options. “This is not an apocalypse,” says Gary Sankary, head of retail at Esri, a Redlands, California-based supplier of geographic information system software. “Retail is just changing. There are no vacancies at the Mall of America. It’s an entertainment experience.”

But dining may not be an instant panacea, JLL’s Jaggi warns. The rapid expansion of the F&B sector has resulted in a shortage of both trained staff, such as chefs and cooks in the kitchen, and non-skilled labour at the front desk. “Watch the grocery industry carefully,” Jaggi adds. “All of these industries are depending on young labour, and all are being affected.”

Suburban markets are more problematic, Esri’s Sankary notes, as young adults prefer walkable urban neighbourhoods. Suburban big boxes are adapting as a result, with retailers such as Target opening smaller units in cities, with curated product assortments. In fact, European retailers may have a distinct advantage in this new universe, he says: “If you’re a European retailer, you have the small store figured out. You have the precise products to sell figured out. Retailers must be very precise and make it work for the population.”

JLL’s Jaggi adds: “The interest in the US is as high as it’s ever been. Before, they would enter the market en masse. Today, they’re more strategic. It’s all about safety and performance.”

For some retailers, that might be pricey Manhattan or other gateway city high streets, Sankary says. North America’s extensive data and transparency is a great asset, allowing retailers to drill down to find the customer.

Emerging markets include Nashville, which has expanded beyond its reputation as the home of the music industry to include fashion, medicine and higher education; and Austin, which is also home to a massive university.

Dallas remains a strong market and Houston, with its comparatively low housing prices, also remains strong although it will have to cope with the after effects of the recent storms.

And don’t count out New York City, says Lee

Nashville is booming, not just because of the music industry, but also in fashion, medicine and higher education Block, executive vice-president of Winick Realty Group. “The high street in retail is still thriving, especially in New York in areas where tourism is strong,” he says. “International retailers want a global audience.”

The high-income earners in the best-known retail streets are supplemented by a strong tourist base. Block says he is bullish about Lower Manhattan, especially the street retail, as well as the Westfield World Trade

SOARING TO NEW HEIGHTS ONCE the tallest building in the world and still one of the tallest in North America, Willis Tower (formerly Sears Tower) in downtown Chicago is receiving its first makeover in its 43-year history, which will add 300,000 sq ft (27,870 sq m) of retail and entertainment experiences, as well as office amenities.

Owner Blackstone Group’s $500m renovation will reconfigure some 460,000 sq ft within the space, including 150,000 sq ft exclusively for use by office tenants. This will feature a full-service fitness centre, tenant lounges, private event space and concierge services.

Willis Tower’s transformation will include a new three-storey, transparent glass structure set atop the existing stone plaza. The retail will focus heavily on dining and entertainment, bringing in local culinary stars and major food and beverage (F&B) names, as well as local boutiques and global brands. The first tenant to sign on is a 3,000 sq ft Shake Shack, to open in 2019. Also joining the complex will be Convene, the first workplace-as-a-service platform and the operator of a network of full-service meeting and event

venues. The deal represents Convene’s first location in Chicago, as well as its first location outside of the US East Coast. Convene has taken a full-floor lease totalling approximately 55,000 sq ft, located on the top floor of the tower’s new amenity base.

“In addition to transforming how people connect and work together at Willis Tower, we are also transforming how they will eat and socialise together with a new retail and entertainment destination, which is missing in the West Loop and unmatched by any other destination in Chicago,” says David Moore, Blackstone Group’s senior vice-president and portfolio director, equity office.

The new-look Willis Tower in Chicago

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North America TURNING ON A DIME

Zara in New York’s Soho neighbourhood

“The high street in retail is still thriving, especially in New York in areas where tourism is strong.

International retailers want a global audience” Lee Block, Winick Realty Group

Center and Brookfield Place. The region is under-retailed and under-served, he believes.

“The area from Broadway to the East River is as dense as anywhere else in the city, and retail has just started to perk up,” he adds.

“We’re also seeing really cool restaurants” — a sector that he says is particularly needed.

But other areas are coming on to the radar screen, including Downtown Brooklyn and Brooklyn Heights, just across the East River.

“Brooklyn has a cachet to it and there are certain tenants that belong there first,” Block says. “There are different opportunities depending on where the customer base is.”

With $2.8bn in financing now fully executed, the long-awaited American Dream Meadowlands in East Rutherford, New Jersey, has once again resumed construction for a March 2019 opening — and it is set to reinvent the concept of retailtainment, according to developer Triple Five Group. In fact, notes Don Ghermezian, president of Triple Five, which is based in West Edmonton, Alberta, Canada, 55% of the project’s 3 million sq ft (278,709 sq m) GLA will be given over to entertainment concepts — a huge

reversal of the standard US allotment for super-regional malls.

The development has been a long time coming. The project began with the 2003 decision by the landowner, the New Jersey Sports and Exposition Authority, to develop land in its sports complex. The Authority selected Mills Corporation to develop Meadowlands Xanadu as a retail/entertainment/lifestyle project, but developer bankruptcies and the US recession delayed work. Triple Five, which came on board in 2011, had to resolve numerous financing, permitting and legal issues even as it made plans for a heavy concentration of entertainment concepts. And that concentration has grown as the retail industry has shifted focus.

Retail will include a 60,000 sq ft Century 21, a 53,000 sq ft H&M, a 50,000 sq ft Zara, a 100,000 sq ft Primark and the only Saks Fifth Avenue in New Jersey, which will feature luxury in-store brand boutiques. Also part of the luxury component will be an 8,000 sq ft Hermes. In addition to other US mall mainstays such as Victoria’s Secret, a significant portion of the space will be dedicated to boutiques and new brands. “We want to be the incubator for new concepts,” Ghermezian adds. “We don’t want to fill the space with stores you can find anywhere in North America.”

Triple Five also continues to work on plans for American Dream Miami. The project, now in the approval process, is planned to include more than 5 million sq ft of entertainment, retail, restaurants, hotel rooms and more. “We inherited a building in New Jersey and have done a fantastic job of delivering within those

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ONE OF the most distinctive buildings on a street undergoing a huge retail transformation will see its own reimagining when the former Dime Savings Bank on Brooklyn’s Fulton Street Mall becomes the front door to a retail and residential complex at 9 DeKalb Avenue.

Located at Albee Square, just 15 metres from the newly-opened CityPoint retail complex, 9 DeKalb Avenue will become the tallest building in Brooklyn. It will feature more than 550 rental apartments and 118,866 sq ft (11,043 sq m) of commercial space, which will include nearly 83,000 sq ft of retail.

The retail will service a daytime population of 181,00 within one mile, guests at the 2,300-plus nearby hotel rooms and more than 60,000 households with an average household income of $80,596.

The historic Dime Savings Bank was built in 1908 and enlarged in the early 1930s. With its Greco-Roman design elements, marbled walls, floors and decorative elements, it provides a striking opportunity for a retailer, says Lee Block, executive vicepresident of Winick Realty Group, the building’s retail consultant for JDS Development Group. “We see the former Dime Savings Bank space as a very architecturally significant space that emulates many buildings in Europe that have been retrofitted for retail,” Block says.

Additional shops will be available behind the main bank space, connecting to the residential building.

Brooklyn’s 9 Deklab Avenue

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North America Mall of America: An ongoing success story

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“The idea that we’ll see a massive Armageddon is nonsense. This has been talked about for three years and we haven’t seen this rash of closings” Naveen Jaggi, JLL limitations,” Ghermezian says. “With Miami, we are starting with a clean slate. Laying out the project will be very easy. Signing deals will be very easy. Tenants have been waiting for someone to create a project like this.”

Canada is also facing similar challenges to the US, with some regions saturated. And as with its southern neighbour, globalisation is a factor. But opening stores in Canada is not the same as entering the US. “You cannot think of Canada in the same way [as the US],” Esri’s Sankary says. “Canadians know American stores and brands. They come here to shop. And in fact, expectations for food and grocery are much higher than in the US.”

Successful newcomers usually acquire a local brand — and Europeans can find the laws in Canada more similar to their own than those in the US. Despite the challenges, neither the US nor Canada have seen the oft-predicted mass closings of regional malls, JLL’s Jaggi says.

Nor will they. “The idea that we’ll see a massive Armageddon is nonsense,” he adds. “This has been talked about for three years and we haven’t seen this rash of closings. We will see an acceleration of the rationalisation of space.

Many developers are eager to not replace a box with another box. People are still spending money, and the people who are engaging with the consumer will entice them to buy.”

With little to no real wage growth in the US, value will continue to dominate, JLL’s Jaggi says, as struggling middle-class consumers are trading down from the likes of Macy’s or JCPenney for more affordable clothing options. However, in a major shift in consumer behaviour, they are doing the same in grocery shopping, moving to some degree from the traditional supermarkets to Aldi, Lidl, Sprout and Fresh market, and buying from multiple sources — including subscription services — rather than remaining loyal to one nearby store.

WESTFIELD Corporation and Uber announced a national partnership on September 1 that pairs the ridesharing technology company and retail developer, including a variety of customer services and benefits.

Westfield will host designated dropoff and pick-up stations for Uber vehicles at every shopping centre in the US and will digitally map those locations into Uber’s app. That means that anyone requesting a ride with Uber will be able to quickly identify where they should get picked up and dropped off when travelling to and from the shopping centre.

The deal also includes the introduction of Westfield’s first permanent Uber Lounge at Westfield Century City in Los Angeles. The centre, undergoing a $1bn renovation, is the next project to be unveiled as part of the company’s strategy to create a preeminent global shopping centre portfolio. Westfield Century City’s Uber Lounge will feature ultramodern design, sleep seating, and “unexpected customer amenities” allowing customer to wait for their Uber in style.

Moving forward, Westfield centres will host between one and 10 Uber stations, and at selected Westfield destinations, the Uber stations will also include kiosks with customer service representatives and brand ambassadors.

“Uber wants to make transportation seamless for everyone, everywhere — but we can’t do it alone,” says Amy Friedlander Hoffman, Uber’s head of business development and experiential marketing.

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Asia

A new way forward for Asia China continues to drive Asia’s retail sales growth, but e-commerce and maturing consumer demand mean that, even here, the retail market is becoming more polarised.

As a result, retailers and developers are having to adapt, writes Helen Roxburgh

H&M in Shibuya, Japan

T

HE ASIAN market remains a powerhouse of international retail.

Retail sales across Asia-Pacific will grow by a healthy 7.7% in 2017 to reach $9.254 trillion, according to eMarketer, driven by an expanding middle class and growing e-commerce sales.

China is by far the continent’s biggest market and sales driver. In 2016, total retail sales of consumer goods reached more than Yuan 33 trillion, up by 10.4% annually, and retail sales are expected to exceed Yuan 37 trillion in 2017. However, household consumption levels remain far below the likes of Japan and the US, suggesting there is plenty of room for growth.

Brands have also been lowering prices in China to draw buyers back from overseas. For example, according to Deloitte, luxury goods in the mainland are on average 32% more expensive than identical items in France, compared with 41% a year ago. This may have boosted domestic luxury spending, but it has not stopped Chinese shoppers spending big internationally. More than 130 million Chinese tourists spent $261bn overseas in 2016, and Chinese consumers are responsible for a third of worldwide luxury sales.

LVMH reported growth in China and South Korea through 2016. French luxury house Hermes says an acceleration in Chinese sales helped a total Asia revenues

rise of 10.5%. And although Prada’s net income fell through 2016, in China it saw double-digit sales growth in the fourth quarter.

Meanwhile, many new brands are looking for new opportunities to draw in important Chinese consumers.

“We now have six shops here in Shanghai, with a focus on bringing the best of Italy to China,” says Andrea Meoni, head of expansion, Greater China, at Calzedonia Group, which entered the market this year. “We are also looking to grow [and] to talk to landlords with portfolios of shopping malls. We want to take it slowly and really understand the market.”

Meoni adds: “All over Europe, we have a lot of Chinese customers and, although here [in China] we are rather new, in Europe we are strongly present, so [the Chinese] have already had the opportunity to appreciate our products. We see huge opportunities here and with Chinese consumers in our other stores.”

However, the Chinese market is facing a huge over-supply of retail space. According to CBRE, China once again registered the highest number of global mall completions in 2016 at 5.75 million sq m — 60% of the global total — and eight Chinese cities made it on to the list of the top-10 most active global markets. This supply surge shows little sign of slowing, with China’s 17 major retail markets anticipating a total new supply of 8 million sq m in 2017.

The problem of excess space is being compounded by shifting retail demands, including a focus on large, flagship stores, and quality over quantity. This year, US lingerie retailer Victoria’s Secret opened its first two flagship stores on the Chinese mainland — in Shanghai and Chengdu — and is boosting its presence through a reality online TV series and fashion show.

While Uniqlo announced plans last autumn to open another 100 Chinese stores, rival

“The people having trouble opening malls are smaller owners who don’t have the experience to pick the right sites, don’t have teams to do leasing work and don’t have a track record of management and retail” James Hawkey, JLL China

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Asia fast-fashion brand H&M has put its focus on cost control and e-commerce. In February, Zara closed one of its largest Chinese stores in Chengdu. Inditex said in its recent results that it has been focusing on store optimisation, creating fewer, better flagships. All 10 Marks & Spencer mainland stores closed this year in the face of continuing losses.

Huge retail supply and slowing expansion is creating polarisation in an extremely fragmented market. According to advisor JLL, the top-20 owners in China own 34% of existing shopping centres, with the other twothirds owned by several hundred owners.

“The people having trouble opening malls these days are smaller owners who don’t have the experience to pick the right sites, don’t have teams to do their leasing work and don’t have a track record of management and retail,” says James Hawkey, JLL’s head of retail for China.

Hawkey predicts the future will see growing consolidation of shopping-mall operators,

as owners sell malls with high vacancy rates.

More specialist malls are also set to emerge.

Honghui Zhou, commercial director at Immochan China, says it will open around eight new malls each year, with themed malls specifically focused on areas such as health and children’s brands.

Mall operators are also battling to compete with online retail. E-commerce will represent 14.7% of total retail sales in Asia this year, or $1.365 trillion, according to eMarketer. By 2021, that number will more than double to $3.001 trillion. In China, e-commerce already accounts for almost a quarter of total sales. To face the challenge of e-commerce, malls are introducing more dining, entertainment and social options, from gyms, cinemas and beauty salons to indoor skydiving, zero-gravity experiences, trampolining, art galleries, basketball courts and ice experiences.

Retailers have also been adapting space to create more in-store entertainment. “In China, the retail landscape has been changing very fast — it is very different from even one year ago,” says Frank Chan, vice-president and national shopping-mall director for Carrefour. “We are facing a lot of challenges, so we are having to adapt. We are

looking at our portfolio, and how we can optimise our space.”

Chan says that the retailer has been adding experiences such as cinemas, gyms and playgrounds, while cutting retail space for products like household appliances, which are now a popular online category.

As well as developing O2O (online to offline) strategies, retailers have been eyeing opportunities in new markets. India overtook China

“In China, the retail landscape has been changing very fast — it is very different from even one year ago” Frank Chan, Carrefour

HONG KONG ON THE UP AFTER several years of gloomy sales, retailers in Hong Kong are cautiously optimistic as sales begin to tick upwards, potentially spelling the end of a years-long downturn. In July, sales grew at their fastest rate in more than two years, jumping 4% and marking the fifth consecutive month of sales increases. Following a rebound in mainland Chinese arrivals, growth was largely driven by luxury sales, which recorded the biggest year-on-year increase at 12.9%. This was the luxury sector’s first doubledigit growth since January 2014. A JLL survey revealed that 62% of international and local retailers have plans to open new stores in Hong Kong in 2018.

Figures are rising from a low base, however, with sales of jewellery and watches down more than 40% from their 2014 peak. Retail rents in some core shopping districts are also still down by around 40%.

Galleria in Chengdu

Intimissimi is growing its Chinese store chain

Calzedonia Group is making positive but cautious plans for China preview magazine I October 2017 I www.mapic.com

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Asia “In 2016, of all new market entrants in Asia-Pacific, 40% were from within the region.

It’s a significant change from 2013, when only 21% moved between countries” Bryn Davies, CBRE

A YEN FOR LUXURY JAPAN’s retail sales saw the ninth consecutive month of growth in July, with a healthy underlying trend for consumption. With its consumers enjoying some of the highest incomes in the region, Japan remains a stalwart of Asian retail, spending some $22.7bn annually on top-end goods, ranking it as the world’s number-two luxury market. With the 2020 Olympics coming up, the country is counting on growing tourism, and hoping to draw around 40 million visitors in the Olympic year. Last year, more than six million Chinese tourists alone visited the country, often for shopping.

Japan’s domestic brands have also been successfully transforming into global names. An FT survey found that Uniqlo is the most popular casualwear brand among Chinese consumers, while baby goods maker Pigeon reported 17% growth due to international sales. Fast-fashion brand Miniso, meanwhile, is planning 300 stores across Australia, on top of more than 1,400 outlets in China, and 20 more stores in Singapore to nearly 50 by year end.

M&S has faced a rocky road in China, exiting the Mainland in CBRE’s Global Retail Development Index in 2017, showing the growing attraction of the country. Seven new brands entered the country during 2017, and investment touched $200m. Zara is planning an online store in India this year, while Uniqlo is reportedly in

SINGAPORE READY FOR TAKE-OFF AT SINGAPORE’s Changi Airport, the new terminal, T4, will also be a shopping and dining haven when it opens on October 31. The terminal will offer more than 80 retail and F&B outlets, featuring a mix of popular brands and experiential zones. This includes an integrated duty-free zone selling alcohol, tobacco, cosmetics and perfumes. Shoppers will be able to pay for their purchases at common cashier counters. Another new feature is the airport’s Heritage Zone, which will provide passengers with a sense of Singapore’s cultural heritage, and offer a range of traditional retail and dining offerings.

talks to open its first two Indian stores.

This year also saw increasing numbers of home-grown Asian retailers move into different markets across the continent. “In 2016, of all new market entrants in AsiaPacific, 40% were from within the region,” says Bryn Davies, senior director of Asia client development at CBRE. “It’s a significant change from 2013, when only 21% moved between countries. That activity is largely being led by retailers from Japan, South Korea and Australia, in response to a combination of subdued domestic economies and domestic saturation. While there is still interest in London, Paris and Milan, the main focus for many Asian brands is countries within a close geographical proximity, and which share cultural similarity.”

While international brands still see big opportunities in Asia, many are sounding a more cautious note about growth, flagging the increasing need for visionary mall operators, as well as good data.

“When it comes to selecting the right place to open, there is a lot of data-driven information now that can help your expansion strategy,” says Marco Hamers, executive vice-president at Global Brands Group. “How many UnionPay payments are made? How many mobile phones are being used and in which part of the mall? This data, which was not available three years ago, can now help bring you closer to your customer.”

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