Mapic 2018 News 2

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NEWS 2 Thursday 15 November 2018 www.mapic.com

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MAPIC KEYNOTE

Unibail-RodamcoWestfield’s Christophe Cuvillier addressed a packed conference hall yesterday

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RETAIL EXPANSION

Fashion retailer Fat Face was among those retailers looking for growth opportunities in Cannes

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INVESTMENT

Ingka Centres has announced a €5.8bn investment programme and new city strategy

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CONTENTS

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ADG expands in Moscow; Eurofund Group targets Italy; Fat Face international expansion; Ingka Centres investment; and more...

FULL CONFERENCE PROGRAMME

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THE OFFICIAL MAPIC DAILY NEWSPAPER DIRECTOR OF PUBLICATIONS Paul Zilk MARKETING DIRECTOR Mathieu Regnault

NEWS 2 Thursday 15 November 2018

IMPORTANT TRAVEL INFORMATION

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DUE TO national demonstrations, it is possible that road access to Nice airport may be blocked or severely restricted from midday Saturday, November 17. If you are flying out of Nice airport this Saturday, we advise you to leave Cannes allowing additional time for your journey.

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Work under way on ADG’s plans to transform cinemas across Moscow

Grigory Percherskiy, managing partner of ADG Group

RUSSIAN developer ADG Group has started construction on 14 of 39 centres in Moscow.

The centres are located in former cinemas and a further 10 will be under construction by the end of the year. The first centre, Angara, will be open by April 2019, according to Grigory Percherskiy, managing partner of ADG Group. It will include a market-style food offer as well as entertainment. Fitout of the anchor supermarket and the cinema within the centre is now under way.

The network will comprise 32 neighbourhood centres, four leisure centres and three shopping centres, with the offer refined for each different concept. “We decided to be more precise with how we were describing the centres,” Percherskiy said.

Typically the centres will comprise 55% of space dedicated to essentials including the an-

chor supermarket, services and daily-needs retail. Some 30% of each centre will comprise edutainment including cinema and children’s entertainment.

Between 15% and 20% will be F&B, depending on the location.

Percherskiy said that concierge services would also be a key feature of the centres, as the company aims to improve the customer experience for shoppers.

The ADG centres will also comprise a dedicated click-andcollect concierge area which will be manned by staff and include lockers, a dedicated fitout area and a touchscreen order point.

“We are creating a centralised pickup point in every location, where we will have an e-commerce concierge so that customers can pick up and return items as well as buy things,” Percherskiy said.

A new brand identity for the network will be announced shortly.

UNIBAIL-Rodamco-Westfield CEO Christophe Cuvillier delivered the keynote address at MAPIC yesterday, where he outlined his views on the newly-merged business and the future of physical retail. Cuvillier said that he saw the company’s future direction in destination schemes — it has already slimmed from 104 to 97 centres as it disposes of smaller malls — and added that Unibail-Rodamco and Westfield shared a vision of “concentration” on such schemes. Retailers need to be both online and offline in order to be profitable and retail has to learn from other sectors in order to flourish, he said, adding: “We have to look at hotels for customer service, to leisure for how to entertain.

This is a people business.”

MAPIC News 2 •

MULTI GERMANY TAKES ON TWO NEW CENTRES MULTI Germany, part of Dutch shopping centre developer and manager Multi Corporation, took over management of the Welfenhof centre in Braunschweig on October 1, and takes over the Darmstadter Hof Centrum centre in Heidelberg, at the beginning of 2019.

The deal comprises centre management including leasing, marketing and facility management.

The move continues Multi Germany’s long-established partnership deal with the asset manager Allianz Real Estate.

“Today, it is no longer enough to simply operate a shopping centre,” said Hubert Stech, managing director of Multi Germany, adding: “Being able to meet the rising demands of customers takes experienced and strategic mall management.”

THE MAPIC First Timers’ breakfast took place yesterday and will take place again today at 09:00 at the First Timers’ Welcome Desk. Following presentations on the show and the MAPIC mobile app, attendees were taken on a welcome tour in the exhibition area. The events allow delegates to find out how to network with the right potential partners and how best to use the dedicated tools including the app and the MAPIC online database.

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Eurofund Group plans to bring a resort feel to urban spaces

Eurofund Group president Ian Sandford

MADRID-based Eurofund Group is to launch what it describes as its “urban resort” format in Italy, with the creation of the Go. Torino shopping centre with grocery retail development partner Mercato in Turin.

Eurofund Group president Ian Sandford said that he hopes the construction phase will begin

in June next year for the hypermarket-anchored 25,000 sq m scheme, with completion expected in late 2020. Eurofund Italia has been established to develop this project as the first of a number of such schemes in the country, he said.

“The idea is to take the philosophy from our large, out-of-town retail resorts in Puerto Venecia and the planned intu Costa del Sol [where the company is joint venture partner] and apply the idea to smaller, urban locations,” he said. “Go. Torino is very close to a new student residential tower and university and about a 12-minute walk from the historical centre of Turin, so the focus will be on a youth-oriented and fashionable retail, leisure and F&B mix.”

When complete the project will include a 6,000 sq m hypermarket, 80 stores, 10 MSUs, 25 restaurants and bars, a Virgin health club, and a craft brewery bar. Scarpe & Scarpe, Terranova, Calliope, Pinalli and Cotton

& Silk are among the confirmed retailers, while specialist 7Fun will provide an exterior climbing wall attraction.

The project is also directly opposite an 18,000 sq m park, which the partners will manage.

Sandford said that this has provided the “ideal opportunity” for the scheme’s restaurants to face out into the park, with large terraces, and for a series of events including open air cinema in the summer.

“Many local authorities no longer have the budgets to create new public realm, so it’s up to the private sector to do it,” he said. “We have to stop thinking about malls as simply for shopping and connect on an emotional basis. They should be about health and happiness.”

Eurofund Group hopes to develop more such centres in Italy and Sandford described the initial joint venture, benefitting from Mercato’s local knowledge of the market, as the “perfect way to go into Italy”.

Intu wants people to ‘own the weekend’ MIXED-use retail, leisure and entertainment schemes form the basis of mall owner intu’s long-term goal for its portfolio, one of the company’s UK regional directors said.

Fresh from unveiling a redevelopment at intu Watford, a north-of-London suburb, the landlord and developer is at MAPIC to showcase the changes at the scheme and to prepare for a relaunched Lakeside shopping centre in Thurrock in Essex, a county east of London.

Intu’s managing director for the south region, Rebecca Ryman, who has overseen the two projects, said they are in keeping with the company’s vision for its future malls, which are

likely to comprise equally of retail, dining and leisure.

She said: “In the UK people do lots of things with their weekend. Retail is not just about purchasing a dress any more, it is about purchasing a memory.

We like the idea of encouraging people to ‘own the weekend’.

We are creating leisure destinations in their own right.

The phased redevelopment at intu Watford, which has taken three years at a cost of £180m, has created a new home for department store Debenhams, and will include a 23,626 sq ft Hollywood Bowl bowling alley and a nine-screen IMAX Cineworld once completed.

The redeveloped intu Lakeside is due to open in Spring 2018.

MAPIC News 2 •

Intu’s Rebecca Ryman

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• 15 November 2018

REBRANDING KEY TO TURKISH EXPANSION

United Brands Association of Turkey’s Sinan Oncel

TURKEY’s retail brands are embracing new channels and looking to extend their reach into new global markets, according to two leading trade bodies that have joined forces to create a brand showcase at MAPIC. Sinan Oncel, chairman of the United Brands Association of Turkey, said that after a slow start, the adoption of e-commerce in Turkey is accelerating fast, forcing brands to reassess the role of the physical store.

Oncel said the biggest pure-play online brands are seeing sales grow 500% year-on-year, but legacy brands are adapting to this threat. “We’ll transform ourselves to meet the new ways of doing business,” he said. “To attract young shoppers stores will have to become more alive, more interesting.”

Equally, Turkish brands are looking to open new markets, according to Ozkan Karaca, vice-chairman of the International Apparel Exporters’ Association.

“Our 12,000 members already export $30bn of goods each year,” he said.

“But to grow that we have to raise the profile of Turkish brands.”

Karaca said Italy was the leading target destination for Turkish fashion businesses, but Spain and Germany were also seen as markets with great potential.

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Fashion retailer Fat Face expands in the US and launches in Europe UK FASHION retailer Fat Face is at MAPIC looking for further expansion opportunities internationally, after a successful trial on the East Coast of the US. The company is also hoping to open its first store in Europe next year, with Germany the most likely location.

“We have around 220 stores in the UK and we are 30 years old this year, so we are a very established brand,” Fat Face head of global partnerships, Kirsten Pottinger said. “At MAPIC we are really keen to learn about more opportunities, because we feel that as a premium casual lifestyle brand, we are a great fit for a lot of different markets.”

Fat Face has opened 12 stores along the East Coast of the US over the past 18 months, primarily located in affluent tourist towns and alongside peer fashion brands. Many of these stores are showing double-digit like-for-like sales growth having traded for over a year, encouraging the company to look at more locations.

“We have been fortunate enough to find some unusual properties,

like a former bank and an old post office, which has helped make our brand relevant to the local catchments,” Pottinger said.

“I think we’ll undoubtedly end up with West Coast stores eventually as well, although we’re taking expansion steadily.”

In Europe, Fat Face has identified Germany as its key target market, although Pottinger said that the success of its wholesale and online business internationally has encouraged it to look at

other markets, including Central and Eastern Europe and the Middle East.

Fat Face recently launched with Zalando in Germany which will also lead to further Zalando country platforms across Europe.

“We will use this also as a basis for making decisions on where we open space across Europe.

We’re happy to consider different routes, including pop-ups, franchise partners, distributors and taking our own stores,” she said.

STOCKHOLM BRANDS ITSELF AS CAPITAL OF SCANDINAVIA A GROWING economy, strong demand for new international brands and unique opportunities to find new retail space thanks to current developments, are among the many benefits that Stockholm offers retailers, according to a session at MAPIC yesterday.

Retail In The Capital of Scandinavia was a breakfast event that explored the opportunities offered by Sweden’s capital city. “We have decided that Stockholm is the capital of Scandinavia and are marketing it as such,” said Bojan Ticic, head of retail capital markets at CBRE. “It’s a very dynamic market with a fast-moving economy. Retail sales are expected to grow by 2.7% over the next year and physical stores are also growing,” Ticic said.

Panelists outlined a number of development opportunities in the city as they encouraged retailers to look at taking stores.

Fat Face head of global partnerships, Kirsten Pottinger

Nearbuy going global with Nexus Engage

SHOPPER engagement specialist Nearbuy, based in Dubai, is planning a worldwide rollout of the Nexus Engage suite of products that it bought earlier this year.

Mall owners can use Nexus Engage’s interactive panels to enliven dead frontages of empty store units with interactive games. Head of business development Seb Ellson said the Play To Win product is proving popular with mall owners looking to drive footfall and sales.

Customers play a game on the wall panel and win a voucher to be redeemed in one of the mall’s stores or F&B outlets, with re-

demption rates running at anything between 17% and 37%.

Developed in the UK, Nexus Engage has already been exported to Malaysia and is shortly

to launch at Aeroville in Paris.

“We’re there to complement what shopping centres are doing by adding a bit of fun,” Ellson said.

Nearbuy CEO Nicolas Standaert (left) with head of business development Seb Ellson and PR co-ordinator Amelie van de Kelder

MAPIC News 2 •

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Bojan Ticic, head of retail capital markets at CBRE

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Rebranded Ingka is ready to move from outskirts to key city centres INGKA Centres, which rebranded from IKEA Centres in September, has announced a €5.8bn investment plan for the next three years. “We have a new strategic mission for the company,” said Carsten Heidtmann, Ingka Centres’ global leasing director.

The company’s centres were previously restricted to city outskirts, but the investment will include €3bn on the company’s move into city centres for the first time with 30 major cities in Europe, Russia, North America, Asia and Oceania targeted.

“We aim to penetrate major city centres around the world,” Heidtmann said. “The focus is to get close to where the customer is.”

Ingka Centres already operates 45 centres in 12 different markets but aims to nearly double this to 70 centres by 2025 to attract more than one billion visitors, according to Heidtmann.

The company has also announced plans to enter the Indian market after IKEA opened its first store there in August. “We are looking

at the major cities and are in the process of identifying interesting locations,” he said.

Rather than shopping centres the company refers to its locations as meeting places, combining retail with other offers suited to local markets. “It’s about so much more than shopping. It’s very much about en-

gaging with the community,” Heidtmann said.

Ingka Centres has already started work on the first of these new urban centres which will be located in the Linkong district of Shanghai, China. The 300,000 sq m mixed-use scheme is scheduled for completion in 2022, and will include 300 stores.

Ingka Centres’ global leasing director Carsten Heidtmann

Stores can drive sales for e-tailers OPENING a retail store can be one of the best moves an e-tailer can make, boosting sales, brand awareness and conversion rates, a director of one of the largest retail landlords in Europe said.

Speaking at a conference session yesterday, Julie Villet, director of URLab and CSR at Unibail-Rodamco-Westfield, said that taking physical space can become effective “marketing activity” for an e-commerce player.

Addressing delegates at the Retail Transformation session at MAPIC yesterday, Villet said that the opportunity for e-tail brands to boost their own pres-

ence through physical stores was a big opportunity for landlords.

“The cost of media spending online is so amazingly high and the returns are decreasing. Media costs are increasing by 40% each year, but e-tailers’ clickthrough rates are only 10%. A digital retailer going into physical can see web traffic increase by 52%. If it’s a small business it can go up by as much as 84%.”

Joining Villet on the panel was Sandrine Guichard, director of homes and interiors at French retailer La Redoute, who said that shoppers were willing to pay higher prices — and were less insistent on discounts —

when visiting a new store.

She said: “We expect to be able to sell with fewer discounts in stores as customers are able to appreciate the products and see the quality of the products.

Stores are a driver for sales. It’s important to create new links with the customers.”

Villet added that one of the challenges landlords face today is to find new streams of “non-leasing revenues” in their malls. “Our first job is to make sure we are successful together, but then we have to drive new incomes from non-rent services, and be more and more of an advertising platform.”

MAPIC News 2 • 11 • 15 November 2018

THE ART OF SHOPPING THE VAN Gogh Museum in Amsterdam has developed a variety of customised content to share the artist’s work within shopping-centre environments, as it searches for innovative ways to “bring Van Gogh out of the museum environment and help retail centres create footfall and experience”, Meet Vincent van Gogh Experience general manager Arnold van de Water said.

The museum has already transformed the story of Vincent van Gogh into the touring, 1,500 sq m Meet Vincent van Gogh Experience, which introduces visitors to the artist through a multi-sensory, interactive exhibition inspired by Van Gogh’s artwork and letters, bridging the traditional gap between entertainment and high art, and making art accessible to a wider audience.

For venues that cannot house an experience of this size, the Van Gogh Museum offers the Discover van Gogh highlight-experience at between 400-600 sq m and the organisation this year launched a 100 sq m pop-up format.

“There is a real opportunity for culture and retail centres to come together, allowing people to consume art in a completely different way,” said van de Water. “It’s a very exciting time for us to come to MAPIC.”

Meet Vincent van Gogh Experience’s Arnold van de Water

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Keep the digital natives satisfied or become irrelevant, Tan warns THE RETAIL property sector has not done enough to understand the two major “paradigm shifts” of new technologies and the influence of millennial shoppers, a tech and retail expert said yesterday.

Keynote speaker Wilson Tan, who became chief executive of Singapore-based real estate investor CapitaLand Retail after 25 years working in the tech sector, said that shopping-centre owners needed to pay more attention to millennials if they wanted to remain relevant. “These are the people we brand as ‘digital natives’,” he added. “At the moment, they make up 20% of the population in Europe; in Asia by 2020, 60% of people will be considered millennials.”

Tan pointed to China, citing Alibaba’s physical supermarket chain Hema, where customers shop and research goods through their smartphones and can only pay via the Alipay app.

He added that millennials would increasingly demand digital fea-

CapitaLand Retail’s Wilson Tan: “Many of us think offline”

tures in their shopping. “More and more, we will be interacting with new customers and clients in the digital space,” he said. “We are not spending enough time to make the deliberate attempt to be in the digital space. Many of us still think offline.”

Tan was speaking ahead of a panel discussion, Omni-channel: Reinventing Physical!, which looked at the ways in which retail space can be repurposed for the modern era. He was joined on stage by Jerome Monange of

Lab Luxury and Retail, Philipp Sepehr of ECE Projektmanagement and Stephen Brown of Hammerson. The session was moderated by Retail Board Advisors’ Felix De Iturriaga.

Monange said that, far from moving away from physical space, digital retailers could well become increasingly reliant on the property sector: “For many pure-play retailers, the future will depend on physical space.

The [conversion] rate is much higher than online.”

Amazon works on delivering the goods AMAZON is pressing ahead in France with the expansion of its logistics network and the rollout

Amazon’s Ronan Bole: “long road” of progress

of thousands of collection lockers throughout the country.

Addressing delegates at a special session on logistics, Amazon’s director of operations for France, Ronan Bole, said the company was on a “long road” of progress in the country, where it has been actively growing since 2000, with more jobs due to be delivered in its warehouses in the coming years.

Bole said that the e-tailer is testing innovations in the market, such as collection lockers and delivery lockers for apartment buildings, saying that the priority is to take goods to shoppers, “not shoppers to goods”.

Bole was joined on stage at yesterday’s All You Need Is Logis-

tics! session by Etienne Dupuy from Invesco Real Estate, Matthew Whittaker from Kuehne + Nagel’s, Andrey Postnikov from Orientir and Raimund Paetzmann from Zalando.

Whittaker said that the industry was still “at the start of the evolution of e-commerce”. He added: “What underpins all of our operations is our responsibility to maintain a customer-centric approach. The final mile is being designed by the consumer now. That’s what we mean by customer-centric. You need to have that seamless experience in place — sometimes the doorstep delivery is the only human interaction the customer has with your brand.”

MAPIC News 2 • 13 • 15 November 2018

RETAIL ‘CAN’T DO IT ALL’, ADMITS NRW’S GERRITSE DUTCH retail property is evolving with the times as consumer habits change and demand for space drops, the head of the country’s council of shopping centres said.

Brigit Gerritse, managing director of The Dutch Council of Shopping Centres (NRW), said that the Dutch sector was coming to understand “that you can’t do it all with retail” and that new uses for space are needed when shopping centres struggle.

“New designs have to be part of a bigger plan now,” Gerritse said. “We encourage people to think about creating places. Retail can be the engine, but you need leisure, F&B, cultural and educational uses as well. You need to help to make a social structure.”

Gerritse said that the Netherlands’ big cities are in a relatively strong position, thanks in part to Dutch planning policies that have kept developments within urban areas. But there is now an oversupply of retail in some locations, she added: “There are towns that can still support convenience retail like grocery, but there are some shopping centres that we might have to say goodbye to. Retail is very important. It brings a lively environment to a place and it brings people together.”

Dutch Council of Shopping Centres’ Brigit Gerritse

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Business took place inside and outside the Palais as day one of MAPIC was bathed in the Riviera sunshine

MAPIC News 2 • 14 • 15 November 2018

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MAPIC News 2 • 15 • 15 November 2018

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Milan’s MAPIC FOOD ready to serve up global opportunities MAPIC last night unveiled MAPIC FOOD, the new name for its second F&B event, which takes place on May 8-9 in Milan.

“We decided to do this because of the growing importance of food & beverage,” said Francesco Pupillo, deputy director of MAPIC Markets. The 2019 event will include an exhibitor’s zone and conference programme, as well as a tasting area and pitching sessions, Pupillo added.

The new branding was unveiled at Food Premiere, a dedicated session held over wine and cheese, where a number of key players in the food industry outlined the opportunities ahead.

Regis Migdal, chief operating officer of SCC-LSGI, is working with chef and entrepreneur Gregory Cohen to help embrace new and exciting concepts. Migdal said shopping-centre owners were increasingly realising their ability to pull in customers from outside of traditional catch-

ments as their focus changes.

“Shopping malls used to just be to feed people, not to enjoy food,” he added.

Cohen said that landlords need to help smaller players to overcome the challenges of operating in shopping centres. “As a chef, I’m interested in going into a mall, but it’s also quite frightening for me, because I’m not sure I’m equipped,” he said.

The session also looked at the digital opportunity for food.

Delegates were introduced to a number of apps and operators, including Arnaud de Rohden, CEO and co-founder of BlackSheep, who demonstrated his web app, which allows customers to order, pay and skip the queue in restaurants. “With this, every client has a waiter in their pocket,” de Rohden said.

SCC-LSGI’s Regis Migdal (left) and Gregory Cohen: embracing new concepts

Redeim diversification pays dividends FORMER French retail-park bank. By early 2020, Guilgaut blocks, the project is due to be specialists Redeim says diversification and a focus on mixed developments, city redevelopments and asset management is paying off.

“We’re light and very adaptable now,” said Jean-Luc Guilgaut, the group’s chairman.

Around four years ago, the 30-year-old company decided to complete its existing pipeline, which was heavy in retail-park projects, and move into mixed developments and urban redevelopment. “That made us profitable,” Guilgaut added. “Some of our rivals who kept going after out-of-town retail park projects have struggled.”

Redeim is also involved in property ownership and management through Aquilan Capital, which it owns with a regional savings

said the company could have 200,000 sq m of assets under its management.

Meanwhile, Redeim is working on a 22,000 sq m mixed urban redevelopment in Strasbourg, France. Centred around five

delivered in early 2020.

At the end of next year, Redeim will deliver a 5,500 sq m office block in the business area of Reims in north-eastern France.

The company will open new headquarters in the building.

Redeim’s Jean-Luc Guilgaut: “light and very adaptable”

MAPIC News 2 • 17 • 15 November 2018

BRAZIL REMAINS A CHALLENGE FOR FOREIGN RETAILERS CUSTOMS regulations in Brazil are an obstacle for foreign retailers entering the country, the development officer for France’s lingerie brand Etam said at yesterday’s Destination: Latin America session.

“Brazil is basically impossible because of customs regulations,” said Jose Gomez. Etam, which operates 900 stores across 52 countries, saw Guatemala, Ecuador and Chile as attractive destinations. “And Mexico isn’t difficult to enter, because it has low tariffs for importers,” Gomez added.

However, Catilo Candido, managing director of the Brazil Association of Abrasce, said his country was accessible to brands from abroad.

“We have a lot of international retailers,” he said. “If you’re really good, you can go to Brazil.”

There are 582 shopping centres operating in Brazil and many cities that still lack a centre. “That’s a lot of room for growth,” Candido said.

“Brazilians love shopping.”

He added that, even at the most difficult point in Brazil’s economic crisis, 75 new malls and more than 102,000 new stores opened.

Etam’s Jose Gomez

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Investors expected to rediscover appetite for secondary centres INVESTORS have adopted a wait-and-see approach to some shopping centres in secondary cities — but that position is likely to soften in the coming months, according to BNP Paribas Real Estate’s head of pan-European retail.

“From around 2019, the approach is likely to become more reasonable,” Patrick Delcol said.

The growth of online retail and changing consumer habits had put off some investors from shopping centres in non-prime locations in secondary cities. He added: “We have observed a reduction of appetite from institutional investors towards that sort of retail product.” However, Delcol predicted that investors would now begin to target shopping centres that were “resilient and adjusted to the new behaviour of consumers”.

Meanwhile, there is strong interest in retail parks, because developments tend to be well-organised and attractive. “Mixed-use products are particularly interesting now because, if there is an

issue, people think, ‘we can convert it’,” Delcol added.

Opportunities in Europe would also come from identifying good high-street locations. “Contrary to the US, the high-street segment in Europe remains strong,” he said.

BNP Paribas published the first study yesterday of pedestrian traffic on prime streets. Cov-

ering 23 key European cities, London recorded the highest footfall, with a record 13,650 pedestrians an hour on Oxford Street. France closed the top five with the Avenue des Champs Elysees, with around 10,300 pedestrians per hour, while Rome’s Via Condotti dominated the luxury prime streets.

NON-CORE EUROPEAN COUNTRIES SEE RISE IN INVESTMENT OVERALL investment in the European retail sector reached €21bn in the first three quarters of 2018, up 8% on 2017, a report from UK real estate agency Savills said.

Belgium (+229%), Poland (+80%) and Italy (+52%) saw the greatest increases, according to Savills’ Market In Minutes, European Retail Investment Report.

In the core markets, investment into France and Germany was up 23% and 15% respectively, the latter boasting the majority of portfolio transactions, primarily in the retail-warehousing and retail-park sectors. Germany now claims first place for overall share of the investment market (24%), with the UK second with 19%.

Shopping centres showed the highest increase in investment — up 11% year-on-year.

BNP Paribas Real Estate’s Patrick Delcol: “approach is likely to become more reasonable”

“The first three quarters of 2018 have seen resounding positivity from the non-core markets across Europe,” said

Causeway world’s priciest retail street

Oliver Fraser-Looen, head of

FOR THE first time in five years, Hong Kong’s Causeway Bay has replaced New York’s Upper 5th Avenue as the world’s most expensive retail street by rental value, according to Cushman & Wakefield.

The annual Main Streets Across The World report, released at MAPIC, showed a significant decline in New York rents, with Upper Fifth Avenue slipping back to second place globally, with average annual rents at $2,250/sq ft (€21,520/sq m) compared with $3,000/sq ft in the previous 12-month period.

Despite a small decline in av-

Italy and Poland in particular,

erage rents, Hong Kong’s Causeway Bay area took top spot, with an annual figure of $2,671/sq ft. London’s New Bond Street, meanwhile, is the most expensive European location, in third place globally, with rents broadly flat year-on-year at $1,744/sq ft, underlining the fact that luxury and high-end retailers still see the UK capital as a key retail destination, said the advisor.

Elsewhere in the top 10, the Avenue des Champs Elysees is in fourth place ($1,519/sq ft), with Milan’s Via Montenapoleone in fifth position ($1,466/sq ft).

In sixth place is Tokyo’s Gin-

za, which is the highest-ranked Asian street after Hong Kong, with rents on average costing $1,219/sq ft.

Report author Darren Yates, head of EMEA retail research and insight at Cushman & Wakefield, said: “There is still a significant appetite for premium retail sites globally, with the top retailers using stores as part of their customer-experience strategy. While technology is still a major disruptor in retailing, it is also enabling physical retail to fight back as it allows retailers to better understand their customers and to enhance the in-store experience.”

MAPIC News 2 • 19 • 15 November 2018

European retail investment at Savills. “Taking a closer look at it is clear that high levels of investor activity are bolstering specific sectors of the market, especially shopping centres.”

According to the report, with consumer confidence back on the rise, private consumption is set to grow by 1.5% this year and by 1.6% next year. This is particularly relevant to prime high-street assets, where investment has been particularly impressive in markets including France (50% of the total), Spain and the Netherlands (30%).

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Dubai’s Meydan One mega-mall will be ‘all about experience’ DUBAI’s latest mega mall is looking to take the customer experience to a new level.

The Meydan One Mall broke ground in March 2017 and is due to open in 2020. But before the first concrete was poured, the developer, Meydan Group, was already planning how it could meet the needs and aspirations of a new generation.

Fahad Abdulrahim Kazim, vice-president of Meydan Malls, said: “We’re coming from a region where the mall business is super-competitive. There’s no shortage of malls but, in the past, the approach has been very sales-driven. However, for a new generation of visitors, it’s all about experience.”

Not only is Meydan investing heavily in attractions, including Dubai’s largest ski slope, the largest dancing water fountain in the world and a 23,500 sq m multi-purpose sports facility, but

Meydan Malls’ Fahad Abdulrahim Kazim: “a collaborative approach with brands”

it is also investing in less tangible features. “We’re investing in technology, not for its own sake but because it can make the customer experience more comfortable,” Kazim said.

With 300,000 sq m of retail, Meydan’s aim is to make a visit to the mall a complete day out. The leasing process has begun and Meydan is aiming

to do this in a new way, too.

The Meydan team is running a series of workshops with the region’s major retail groups to establish what they need in terms of unit size, configuration and pedestrian flow.

“We’re aiming to be flexible and we’re adopting a collaborative approach with the brands,” Kazim added.

Bordeaux region toasts development

THE HISTORICAL French city of Bordeaux and its surrounding region still has room for new development — and its appeal has now been boosted by a new two-hour rail link to Paris.

“We’re one of the cities with the largest potential for development in France,” said Laurent Putz, who is in charge of studies for CCI Bordeaux Gironde, the public organisation that can put those looking to enter the region in touch with planners and partner companies, such as Ceetrus, Immo Mousquetaires and Klepierre.

Bordeaux is a UNESCO World Heritage site, with more protected buildings than any other French city except Paris, and yet it continues to transform itself.

Developments include a 145 ha site at the St Jean Belcier train

ONLINE SPENDING PREDICTED TO REACH MATURITY IN 2025 E-COMMERCE spending could reach maturity by 2025 — and no European market will top the market share achieved in the UK of around 27%, according to a Colliers International report entitled The Retail Rollercoaster, released at MAPIC yesterday.

“At the moment, there is a fear of unlimited online growth,” said Paul Souber, Colliers’ head of EMEA retail business. But recent developments — Amazon buying Whole Foods, Microsoft plans for a 20,000 sq ft (1,858 sq m) flagship store on Oxford Street, even a Google pop-up on Regent Street — show that bricks-and-mortar retail still has a place alongside e-retail, Souber added, particularly as retailers address logistics challenges such as the cost of online returns.

A YouGov study also showed the majority of millennials prefer physical shopping to online purchases. “To be a retailer, you have to offer a seamless omni-channel experience,” Souber said.

Meanwhile, Colliers is seeing renewed interest in France, Spain and Germany. UK brands are also exploring Dublin as a way of stepping into euro-zone companies via an English-speaking country. Despite the uncertainties of Brexit, the UK continues to attract international interest, driven by its strong retail spend and the brand value of London.

CCI Bordeaux Gironde’s Laurent Putz: “one of the cities with the largest potential for development in France”

station in the south-west of the city, which includes offices, residential, businesses and hotels; and Ginko, a 260,000 sq m eco-development alongside the city’s lake, which includes 22,000 sq m of retail space. Land is also being developed near to Bordeaux’s Garonne river.

“There are loads of new neighbourhoods very close to the centre with mixed zones offering offices, housing and stores,” Putz added.

CCI Bordeaux Gironde has partnered with the town of Libourne, where the local authorities would like to develop the city centre.

MAPIC News 2 • 21 • 15 November 2018

Colliers International’s Paul Souber

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Digital meets artisanal in Allard’s Cidade Matarazzo community hub ONE OF France’s most successful digital entrepreneurs is entering the world of physical retail with a revolutionary new scheme in Sao Paulo, Brazil.

Cidade Matarazzo involves the regeneration of an abandoned hospital into a multi-use community hub, which will include a significant retail element. It is the brainchild of Groupe Allard founder Alexandre Allard.

Allard made his fortune in database marketing, before developing a platform that provided microfunding for artisans around the world. The twin themes of data and handcrafts lie at the heart of the new scheme, which is on track to open in 2019. With a total area of 27,000 sq m, the project will incorporate culture, gastron-

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Groupe Allard’s Alexandre Allard (left) and Jacques Brault: “going back to the roots of commerce”

omy, shopping and leisure in a green oasis in the middle of one of the world’s harshest urban environments.

“The whole idea is to create a gigantic experience and to trade that experience for data,” Allard said. To access the scheme, visitors will be required to download an app and register. In return, they will gain access to exclusive products from 240 of the best artisans and produce from 400 farmers. “We will offer brands you can’t access anywhere else in Brazil, and those brands will have to offer something that they are not doing anywhere else,” Allard said.

Beneath the historic buildings that are under renovation, an underground logistics hub is being built. Allard plans to offer half-hour deliveries to customers in Sao Paulo city centre from all of the scheme’s occupiers.

“It’s experiential and it’s going back to the roots of commerce, which is exchange,” Allard said.

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MAPIC News 2 • 24 • 15 November 2018

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Why bad communication could be costing you €16,000 per year LANDLORDS could be losing as much as €16,000 per year on the average mall thanks to poor communications systems and inefficient internal procedures, according to the co-founder of a platform designed to simplify the way shopping centres are managed.

Sander Verseput, co-founder of Dutch digital portal designer Chainels, said that, with multifarious organisations and people involved in the running of a centre, mistakes and miscommunications are not only common but costly for landlords.

“A shopping mall is a big complex organisation,” Verseput said. “All the various stakeholders have their own data, which is relevant. Landlords don’t just want to send data to their ten-

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Chainels’ Willem Buijs (left), Maus Robben and Sander Verseput: helping landlords and tenants communicate

ants — they also want to be able to get it from them. Our vision is to bring all the relevant info from all the stakeholders together and bring it into one place.”

Chainels has been designed to provide a digital portal to enable the various stakeholders in a mall to communicate clearly and simply. Since MAPIC 2017, the number of shopping sites using the company’s service has doubled from some 70 malls, high streets and other retail locations to around 150.

Chainels currently operates in the Netherlands, Belgium and Sweden, but is set to roll out into Germany by the end of 2018 and is preparing to launch in the UK in January next year.

In the past year, a number of features have been added to the Chainels platform, some at the request of retailers. These include the ability to report and record turnover, as well as to flag issues and problems within a mall quickly with the landlord.

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Meydan One – The Metropolis of Tomorrow Meydan One, the latest development by Meydan Group is set to reimagine urban life by leveraging cutting-edge technologies to create exceptional blended retail, dining, hospitality, entertainment and residential experiences.

Nestled in the heart of Dubai, the upcoming vibrant lifestyle destination serves as the epicentre of the Meydan One residential community and is just a short drive from the city’s bustling neighbourhoods such as Downtown Dubai, the Dubai International Financial Centre and Jumeirah.

A retail centre, a funfair, a holiday haven and a place to call home – all rolled into one, the sprawling multifunctional space will be home to over 580 fashion and beauty outlets including 30 anchor stores and 80 flagship luxury stores, along with 190 restaurants enhanced by unique features such as an imposing retractable skylight offering a vibrant new approach to al fresco dining.

The experiential development will also include an Incubation District - a dedicated start-up space, a 37,000sqm entertainment, edutainment and e-gaming Experience Zone, a 21-screen cinema, a 1-km long indoor ski slope, 12,000sqm Winter Village, 8.2km Crystal Lagoon with 300m sandy beach, and a community arena overlooking a 300m long interactive dancing fountain.

Additionally, a lifestyle and a luxury hotel, hotel apartments directly connected to the destination, a 5,430sqm medical centre and a 20,000 sqm office tower will further complement Meydan One’s portfolio.

With a new approach to convenience, customer service and ease of movement, Meydan One is set to carve a niche of its own as an integrated new-age destination redefining urban living.

Visit us at MAPIC | Stand R8 E11 For more information, contact us on meydanmalls@meydan.ae

MAPIC News 2 • 25 • 15 November 2018

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TEN GROUP EXPANDS ACROSS MOSCOW MOSCOW developer Ten Group is at MAPIC to showcase the opportunities at three new shopping and entertainment centres.

The group will open three new centres in the Moscow area under the Gorod brand, all of which will open in 2020.

They will include Gorod Abramtsevo (155,000 sq m), Gorod Kosino (128,000 sq m) and Gorod Podolsk (56,000 sq m). Gorod Abramtsevo will include a hypermarket, children’s entertainment centre and cinema as well as a DIY hypermarket.

Ten Group currently operates 700,000 sq m of space in the city but is looking to more than double its portfolio to 1,500,000 sq m. The company claims to have built the largest retail facilities in Moscow, including the shopping and entertainment centres under the Gorod brand.

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Grandscape looks for something different for new Dallas centre GRANDSCAPE, a new mixeduse real estate development based in Dallas, US, is on the hunt for exciting new retailers to offer a key point of difference in its centre, which is due to open in the Texan city next autumn.

The 100-plus store centre will be 1.9 million sq ft in total and include 560,000 sq ft of retail. It will be owned and built by Nebraska FurnitureMart which is also anchoring the centre with a store it opened two years ago.

The centre is being developed

by Steller Developments which is at MAPIC alongside property agent Harper Dennis Hobbs to find new retailers for the centre.

“Differentiation and experience is key so finding retailers that provide that different customer experience and a tremendous

offering adds value to what we do,” Steve Graham, principal of Stellar Development said.

The centre will include luxury sports fashion brand Scheels Sporting Goods, which will open a 300,000 sq ft store as anchor.

Other anchors include Andrittis, a family entertainment centre

that includes electric go-karts and Galaxy Theatre, an LAbased luxury cinema business.

“We have a tremendous line-up of food and beverage concepts already, many of which will be first in Dallas and we also hope to have a very different fashion component,” Graham said.

Stellar Development’s Steve Graham is after retailers that offer a point of difference

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Ceetrus on right track with ambitious station projects FRANCE’s Ceetrus — formerly Immochan — is moving ahead with a slate of mixed projects, including the ambitious redevelopment of train stations Gare du Nord in Paris and Vigo in northern Spain.

CEO Benoit Lheureux said the company had changed its focus from retail to mixed projects, working with partners to offer its new expertise.

“We’re now capable of doing offices, co-working spaces, leisure and culture,” Lheureux said.

In Spain, Ceetrus is set to transform Vigo station into a 121,500 sq m transport hub, with a 43,000 sq m shopping centre. The project, which includes a 26,000 sq m rooftop area, is due to open in 2020.

“That’s a project we couldn’t have obtained five years ago, but we did it thanks to our

repositioning,” Lheureux said.

In France, ahead of the 2024 Olympic Games and as part of

the expansion of the Greater Paris region, Ceetrus is transforming the Gare du Nord station to cater to the 900,000 daily passengers that it is expected to handle by 2030.

The French firm is also working on Coresi, the largest urban regeneration project in Romania. As well as redeveloping a 59,000 sq m commercial area, which includes a 14,000 sq m hypermarket and 30 stores, Ceetrus has also built and sold 1,000 of the project’s 3,000 apartments.

“We don’t just do physical building — we do it alongside citizens,” Lheureux added.

Ceetrus changed its name from Immochan in June. Its new name combines the words ‘cities’, ‘trust’ and ‘us’.

“We’re building a new relationship of trust,” Lheureux said.

Ceetrus’ Benoit Lheureux: “a new relationship of trust”

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Please visit our booth in the U.S. Pavilion at Stand Number P-1.D71. We are located next to the Italian Pavilion, featuring free Italian gelato, courtesy of Grom.

MAPIC News 2 • 27 • 15 November 2018

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We Are Pop Up adds Russia to its space-booking marketplace DUTCH retail property platform We Are Pop Up has launched a Russian site as it presses ahead with expansion plans.

Working in partnership with real estate agency JLL, We Are Pop Up has rolled out its digital space-booking platform to the Russian market in the hope of attracting retailers and brands looking to hire short-term pop-up space in retail locations.

We Are Pop Up also helps companies taking their first steps into Russia to make an easier transition.

We Are Pop Up platform manager Leon Goldwater said: “We have long planned to launch in

Russia. The debut of the platform here will provide new opportunities for the brands we work with, because this is a huge market with great prospects.”

We Are Pop Up co-founder Ilona Taillade, who is also CEO of concept store FOMO, said the Russian launch follows six years of expansion.

During that time, the site has grown throughout Europe and the US, and is now on the verge of launching in Scandinavia, Asia and the Middle East.

We Are Pop Up’s Ilona Taillade: next stop Scandinavia, Asia and the Middle East

A SEA CHANGE FOR RESOLUTION’S OCEAN TERMINAL RESOLUTION Property is to transform Ocean Terminal, its waterfront shopping centre in Leith, Scotland, into a premium outlet retail and leisure destination. To be rebranded Porta, this new outlet will feature 407,000 sq ft (37,811 sq m) of shopping and leisure space, hosting a mix of aspirational and premium brands. The leisure offer will include a 12-screen Vue Cinema, Nando’s, Wagamama and Zizzi, as well as a 24-hour PureGym, a skatepark and a soft play area.

Due to open in Q3 2019, Porta will join Resolution’s outlet portfolio, which includes Honfleur Normandy Outlet in France, Designer Outlet Soltau in Germany and Billund Designer Outlet in Denmark.

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New Finland outlet will attract Russians, Koreans and Chinese ZSAR Outlet Village, the first premium outlet centre in the Nordics, will open in Finland — midway between Helsinki and St Petersburg — at the end of November 2018. Phase I includes 65 stores with premium brands including Adidas, Armani, Bagatt, Braccialini, Ecco, Guess, Hugo Boss, Iceberg, Kappa, Le Creuset, Lindt, Liu Jo, Osprey London, Reima, Roberto Cavalli, Skechers and Zwilling.

Zsar CEO Sami Vainiomaki said the scheme would be 60% leased and trading on the soft opening day, with more expected to sign up before the scheme’s grand opening in Spring 2019.

The scheme is located 300 metres from the busiest EU-Russian border checkpoint with threeto-four million annual border

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Zsar Outlet Village opens on November 29, 2018

crossings. In addition, there are a further four-to-five million crossings through three other major checkpoints, one hour’s drive north of Zsar. Vainiomaki said that over 70% of Russian tourists cite shopping as their primary reason to visit Finland.

“We’re creating a destination for the Finns as well as the Russians,” Vainiomaki said, adding that 100,000 high-spending Chinese and South Korean tourists were also expected to make the border crossing next year.

Zsar CEO Sami Vainiomaki

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ONE STEP FORWARD To the North of Turin, Caselle Open Mall is taking shape.

It’s a new project by Aedes SIIQ with an innovative concept that opens new roads for the future of Retail.

COME AND DISCOVER IT: THE FUTURE IS WAITING FOR YOU AT MAPIC. NOVEMBER 14TH-16TH, STAND R7 C3.

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MAPIC News 2 • 31 • 15 November 2018

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Caselle Open Mall appeals to shoppers’ sense of smell CASELLE Open Mall (COM), a project in Caselle Torinese in Italy, has created its own scent range to drive consumers to different areas of the shopping centre.

The centre’s owner Aedes SIIQ has worked with scent designer Antonella Bondi to develop COM Essence, a blend of four aromas, each of which has been chosen to reflect four different areas of the centre.

To represent the shopping area a sweet orange fragrance reflects energy and positivity. Clary sage has been chosen for the food

area. For the green area of the centre white fir conveys cleanliness, freshness and stability, while the edutainment space is defined by bergamot.

The Caselle Open Mall is being developed over 114,000 sq m of GLA and includes more than 220 stores. It will include 9,200 sq m dedicated to food and beverage and 18,700 sq m of leisure.

It will also feature a National Geographic family edutainment centre, the first in Europe.

Visitors to the company’s stand at MAPIC are invited to experience the COM Essence.

The scent of clary sage represents the food area in Caselle Open Mall

IBM launches new data division TECH giant IBM has made its MAPIC debut with its newly created MetroPulse division.

According to Vivian Braun, worldwide marketing leader for IBM consumer platforms, MetroPulse has been set up to “allow retailers to make the decisions they make every day easier and more accurate”.

One of the processes MetroPulse can simplify is store location. “What MetroPulse does is to secure and curate third-party data en masse,” Braun said.

“That’s anything that might make one street different from another street.”

At an operational level MetroPulse can also inform decisions on stock allocation.

“We can factor in variables like weather to develop insights and more importantly to allow retail-

ers to take action,” Braun added.

Underpinning MetroPulse is artificial intelligence, which can make sense of huge amounts of data right down to street, store, floor or even SKU level. “The more nuance you want the more data you need,” Braun said.

Vivian Braun, worldwide marketing leader for IBM consumer platforms

MAPIC News 2 • 32 • 15 November 2018

news

Leisure ‘doesn’t stand still’ mall landlords are warned LEISURE is becoming a significant component of malls worldwide, and it has the potential to become a new anchor for retail destinations, according to Tim Earnest, group director of retail malls at Dubai-based Al Futtaim Group.

Earnest noted that leisure attractions have been a feature of malls in Dubai for many years.

“It comes down to the whole social experience,” he said. But he warned mall operators looking to inject leisure to spice-up their retail mix that it requires different skills. “Leisure doesn’t stand still and one of the pain points is that two years after you open an attraction, the market’s moved on,” he said.

In markets like Dubai seasonality is important, Earnest added.

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As an example he cited Dubai Festival City’s signature show, called Imagine, which plays three times a night to draw crowds to the mall. In the cooler months the show moves outdoors to the banks of the Dubai Creek and Al Futtaim is now enlivening the 8,000 sq m Creekside prom-

enade with a pirate-themed immersive experience.

“The industry has a tremendous future,” Earnest said. “People still want to socialise, they still want a sense of discovery, to touch and feel, and they want to engage. But as landlords, we have to be smarter.”

RENT STRATEGY KEEPS OCCUPANCY HIGH OCCUPANCY levels remain high across the portfolio of pan-European shopping centre specialist Eurocommercial, which includes properties in France, Sweden, Belgium and Italy.

Eurocommercial’s CEO, Jeremy Lewis, said: “Despite some concerns about the health of the retail sector, our vacancies remain less than 1% of rent, the lowest in our industry.

This is largely due to our long-established practice of setting rents at realistic and sustainable levels which allows retailers to remain profitable.”

Lewis added: “We continue to see good demand for space in our shopping centres — in total over the past 12 months we have renegotiated nearly 200 leases, generating an average uplift of 11.7%. Twothirds of these leases were renewals with existing tenants.”

Tim Earnest, group director of retail malls at Al Futtaim Group

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FEATURE: RETAIL MIX

Yoga at The Lobby, Stockholm

Getting the balance right

“L

ike a Broadway show, with limited showing,” was how executive vice-president and chief marketing officer of Bloomingdale’s, Frank Berman, described the US department store giant’s latest physical concept, unveiled in September.

“That’s the sense of urgency we want to have around the space,” he added.

The vision: a constantly-evolving, reforming, store-in-store space showcasing new fashion brands and ranges, innovative food offerings and special sessions and events geared around lifestyle, for example sneaker-care sessions and yoga classes. The complete mix.

It’s a phrase you will hear a lot of at MAPIC this week — and from mall owners and store designers

all over the world. The mix has always been a crucial factor for landlords: getting the right balance of traditional shops, food outlets, visitor attractions all in a magnetic, inviting environment has been the challenge for shopping centres going back to the earliest arcades and marketplaces.

But where previously this has been a complementary factor in shopping centre design, today it’s the primary driver for change.

New concepts, from indoor ski

Annelie Gullstrom, AMF:

“You can sell things in The Lobby but the main thing is to activate and engage with consumers”

With retail destinations offering far more than stores, the retail mix has never been more diverse, yet Europe still has some catching up to do. Ben Cooper reports slopes to theme parks to pop-up markets are emerging seemingly every day in the world of retail property. All designed to create a sense of place; of added attraction; offering the one thing that online can’t provide: experience.

“It’s all about the theatre, a culture in your own space,” says Annelie Gullstrom, head of business development at Swedish investor AMF Fastigheter, which launched its own innovative place-making idea in April. The Lobby, part of the developer’s flagship mall in Stockholm, is all

MAPIC News 2 • 35 • 15 November 2018

about giving brands a space to show off, to trial new concepts, and to reach new customers by offering them something different from the usual retail centre. It even has a cava bar.

“It’s a mix of small and large retailers who want to engage with customers and test their brands out in a market,” Gullstrom says.

“You can sell things in The Lobby but the main thing is to activate and engage with consumers.”

The Lobby is in fact a collaborative project between AMF Fastigheter and Ilona Taillade, part-

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FEATURE: RETAIL MIX ner at Real Estate Partners (REP) and founder of another new arrival this year, pop-up concept store FOMO. Based at the Molndal Galleria mall in Gothenburg, FOMO is another case study worth watching for anyone looking to invigorate their retail space.

Why? Because, Taillade says, it has been designed with the future of malls in mind.

She says: “There are lots of companies looking to create innovative products and techniques.

Sweden has become a leader in terms of aspirational brands looking to do something different. We’ve been able to take the opportunity to create this type of space. We are looking to change the formats; how to add to or change the business model. It’s about flexible retail.”

It’s a discussion which is likely to dominate at MAPIC, not least during a packed schedule of events at the Leisure Zone, a section of the conference dedicated to discussing and highlighting the evolving retail mix.

Innovative exhibitors from all over the world will be showcasing their latest concepts to the markets, inviting landlords and retailers to come and talk and get a glimpse of the hottest new ideas to come out of retailtainment.

Of these, a burgeoning, potentially revolutionary entertainment technology, is finally making its way into malls. And Shauna

Heller, North American president and chief executive of location-based virtual reality (VR) arena developer AiSolve, which designs and builds VR features aimed at shopping malls, says that the whole sector could be on the verge of something big — because landlords are starting to see the benefits.

She says: “It definitely increases dwell-time; lots of people stop and watch. The most exciting thing is to see the mall open up in the morning and we had a continuous use; there were people there all day. I think there will be more of an appetite for this. I think that 2019 is going to see a really big influx of interest in VR products.”

In recognition of such innovation, this year MAPIC opened on Tuesday afternoon with the inaugural Leisure Summit seminar, hosted by retailtainment strategist and founder of Retail Entertainment Activation Leisure (REAL), Gilles Devendeville.

Devendeville says that one of the key drivers is the emerging generation that is social media-literate and comfortable with technology.

He points to a recent survey carried out by Forbes in which 72% of millennials said they would choose experiences over material items as a way of “purchasing happiness” when they shop.

It’s a remarkable shift and one that is influencing new developments.

For example, Triple Five Group,

Location-based virtual-reality experience, provided by AiSolve

which has championed the ‘hyper-entertainment’ concept, is currently developing the groundbreaking American Dream mall in New Jersey, just over the river from Manhattan. With a Nickelodeon Universe Theme Park and a DreamWorks Waterpark on site, American Dream will have much more than shops to pull the customers in.

In fact, Devendeville warns, European developers are already falling behind their rivals in the MENA, Asian and US markets for scale and for innovation.

Building the American Dream in New Jersey

MAPIC News 2 • 37 • 15 November 2018

“There are examples such as Westfield London, Parques Reunidos’ Nickelodeon Adventure park at the Thader Shopping Centre in Murcia, and the attempt of Ceetrus and Wanda at Europacity in France. However, these are not the common standard.”

Competing with the grand visions of the developers in the UAE might not be possible everywhere. But the same trends that have led them to go so far beyond the traditional model, and the same changing habits, are driving change everywhere in the retail property market.

Even in the designer outlets sector, which has traditionally had a magnetic pull simply because of the discounts on offer, times have changed and landlords are changing with the times, says Otto Ambagtsheer, chief operating officer of VIA Outlets.

“Our focus now is remodelling our centres,” he says.

“Pop-up stores, events are all part of the experience we’d like to add. We are always out to make sure that the shopper has a great quality experience. Shopping online is all about the product and price but it doesn’t give you an experience, a natural experience.”

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FEATURE: CONVERGENCE

Let’s get phygital Convergence may be the retail buzzword for physical and digital retail but bringing both together needs a retail rethink. Liz Morrell reports

T

HE CONVERGENCE of online and offline — or ‘phygital’ as many term it — has never been more apparent as retailers and developers look to promote the value of both to shoppers.

“The convergence means that business models are modified and square metres can now be seen as media, like square centimetres of screens of a website for banners,” says Juliette Delcourt, leader marketing, brand and digital for French developer Ceetrus.

She says all channels need to be nurtured — from the website to social media and shop windows.

“All play roles in nourishing the image of the brand,” she adds.

At UK shopping centre owner and developer intu, Karen Harris, managing director of intu’s digital innovation team, says this has been long apparent. “It’s always been clear to us that there needs to be a merging of the physical and digital shopping experience and intu was the first in the UK to launch its own online shopping-centre platform,” she says.

The company continues to trial new initiatives that bring together the physical and online world.

“We want the differing benefits of both and those retailers who are able to create this seamless experience are best equipped to grow,” she says.

An example is Dubai-based technology company Nearbuy Group.

Its products range from smart displays to retailtainment that help to combine both channels for centre owners and retailers alike. At the Dubai Mall, for example, it has integrated a new planning feature

on the mall’s 90 interactive digital screens that allow customers to have their mall journeys mapped, depending on the shops they wish to visit.

At UK/French shopping centre owner and developer Hammerson the company believes in the need for retail landlords to create an experience that the internet doesn’t. “Shoppers are social and they want inspiration and entertainment so we’re creating a more interactive experience, showcasing authenticity, delivering connectivity and engaging individuals,” says Mark Bourgeois, managing director UK and Ireland for Hammerson. “92% of our shoppers visit the same stores on every visit so we’ve introduced the Plus app — a personal shopping companion — and Style Seeker visual search tool [Shazam for clothes] which support product discovery,” Bourgeois adds.

Ceetrus has created a global mobile-first web app for its centres, which has been live for a few weeks in Hungary, Romania, Italy and Ukraine. Services and design are customised to each centre but are essentially designed to connect people. “For example with features that can share my best tips with the local community,” Delcourt says.

The company also allows retailers access to around 10,000 of its visitors for shopper research, a service already being used by Uniqlo.

Another way retailers can combine the best of both worlds is through improved options for click-andcollect, especially through experiential flagship stores. Fashion retailer Zara launched a new and

Hammerson’s Style Seeker visual search tool in action

improved click-and-collect facility at its new Westfield Stratford store in London in May — and in stores in Milan in September, involving automated online order collection points, served by robots. The stores feature other technologies including interactive mirrors equipped with RFID, which detect the garment a customer is holding and allowing them to see what a complete outfit will look like in the mirror.

These trends go across retail categories. Even discount retailers such as Kik, which has more than 3,500 stores in 11 European countries, can see the benefit of click-and-collect. Although most of its customers shop offline the company launched online in 2013 and recently introduced in-store collect-and-returns, something it says its customers appreciate.

Nicolas Standaert, founder and CEO of Nearbuy Group, says

MAPIC News 2 • 39 • 15 November 2018

more retailers still need to embrace the convergence of online and offline and do more to offer an all-encompassing experience if they are to be successful. “Stores are no longer a transactional touch point where customers walk in, select what they want, pay and walk out,” he says. “The focus is still too much on the strategies and tactics of selling, rather than on the customers and their experiences.”

Nicolas Standaert, Nearbuy Group:

“The focus is still too much on the strategies and tactics of selling, rather than on the customers and their experiences”

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FEATURE: ASIA

Asia is leading the way

KCC designed the amusement elements of the Wanda centre in Nanjing, China

Advances in Asian retail seem to know no boundaries, with the continent at the vanguard of automation, experience and the willingness to pioneer new ideas, says Helen Roxburgh

A

SIA is the continent of retail experimentation — unmanned stores, mobile payments, drone delivery and robots. While different markets are at different levels of development, India’s retail market is predicted to reach $1tr (€880bn) by 2020, while a report by Google forecast that the internet economy of Thailand, Indonesia, Malaysia, Singapore, Vietnam and the Philippines will hit $200bn by 2025.

Of course China is the regional powerhouse. Retail sales in 2017 in China hit $5,781bn — with

19% from online shopping — and the country’s unmanned retail sector is expected to triple in size to £7.5bn by 2020, according to iResearch.

“The big thing about China is that retailers and malls can just make changes so quickly, and we have such short lease terms that it is easy for landlords to latch on to the latest trends, making it a great place for experiential retailing and new brands,” says Rebecca Tibbott, head of retail, China at CBRE. “In addition, the online infrastructure here is so convenient, platforms like WeChat are so ad-

vanced and so comprehensive — and certainly the amount people buy from their phones is higher than anywhere else in the world.”

Alibaba, JD and WeChat parent Tencent have all opened automated stores over the last year, while fast-food operator KFC introduced sophisticated facial-recognition technology which aims to predict and remember people’s fast food choices.

“Our focus has always been on using e-commerce to give everyone access to quality products that better their lives. We will continue to focus on new ways that technology can enable that, and on developing boundary-free retail,” says Lori Chao, director of international corporate affairs, JD.com.

“It also requires continuous development in robotics and automation, which will enable us to continue to scale up and maintain our fast service as online shopping volume increases.”

MAPIC News 3 • 41 • 16 November 2018

China is also the leader in m-commerce, accounting for more than 60% of the worldwide user base, according to data and research company eMarketer.

“China’s moved past omni-channel — so this online/offline debate is already I think a very unsatisfactory way to describe the market,” says James Hawkey, head of retail, China, JLL. Many of these trends will be discussed in detail at the MIPIM Asia Summit in Hong Kong, late November. Discussion forums and keynote speeches will consider the future of retail and technology, as well as the use of data and

James Hawkey, JLL:

“You’ve got to have a good mix of the established and the new”

FEATURE: ASIA the changing responsibilities of mall developers.

“Shopping centres are responsible for creating this amazing environment that is attractive and has a certain amount of pulling power. You’ve got to have a good mix of the established and the new,” Hawkey adds.

Grocery brands are also seeing a boom as the middle class grows across Asia. In August, US retailer Kroger announced it was partnering with Alibaba to sell products in China. US giant Walmart partnered with JD to host a high-tech store where customers can buy Walmart products using a virtual store and smartphones.

Asia’s online grocery channel is set to grow by $176bn — a huge 194% increase — by 2022, according to research organisation IGD, making it the fastest growing retail channel in the region.

“Since last year, we have opened more than 20 X-Mart unmanned convenience stores,” says JD’s Chao. “We also launched 7FRESH, our premium offline supermarket chain for fresh food.

These stores are supported by JD’s smart supply chain management system, which allows them to operate more efficiently than traditional offline retailers.

“We have implemented auto-replenishment to ensure the shelves are in stock and not overstocked, we use facial recognition for payment and we are able to use big data to determine the product mix and location for new stores.”

JD X-Mart in Jakarta, Indonesia

Analysts are talking about Asia’s ‘New Retail’ — a phrase coined

by Alibaba’s Jack Ma to represent a fully integrated, data-heavy retail offer which puts the consumer at its centre.

“We see more and more mall owners and developers understanding the possibilities of surfaces as digital canvasses,” says Reinhart Viane, business development director at KCC. “With the biggest advantage of digital entertainment being its adaptability and flexibility at a low cost, more and more digital entertainment solutions are also integrated in voids and entrances, etc; both to entertain and inform.”

CapitaLand’s new Funan shopping mall in Singapore is its first ‘online-and-offline shopping mall’ with smart car parking, a 24-hour click-and-collect drive through and

a robotic arm to collect parcels using a QR code. CapitaLand also integrates online and offline shopping through its loyalty platform.

“To date, CapitaLand has a network of 70 operational malls in Singapore, China, Malaysia and Japan, of which more than half are located in China,” says Wilson Tan, CEO, CapitaLand Retail.

“The strong economic fundamentals and the heightened use of digital services in these countries are supporting the sustained growth of retail sales.”

“What we see now is more and more of the brick and mortar retailers adding online elements within their stores, and I think people are also starting to expect to see that,” Tibbot says.

In developed retail markets like Singapore and China, F&B has moved from 20% of the trade

The 24-hour click-and-collect drive through at CapitaLand’s new Funan shopping mall in Singapore

MAPIC News 3 • 42 • 16 November 2018

mix to as high as 50%. Many international entertainment operators are also taking retail space, such as Merlin Entertainments with its Legoland Discovery Centre, along with an enormous array of services including hospitals, dentists, schools, sports courts and nurseries. The 300,000 sq m Suzhou Center Mall, for example, includes flight simulation, pony riding, and ice skating as well as shops.

“Asia is, next to the Middle East, the epicentre of retail as a destination,” Viane says. “Food — of great quality — already makes 2040% of the GLA in all the malls and entertainment in all shapes and sizes is being integrated more and more as well.”

Physical stores are also still expanding across Asia. This year marked a landmark in India with the first 400,000 sq ft IKEA store opening, 12 years after the brand first started looking at the market.

IKEA said it expects six million visitors in its first year. By 2022, sales of homewares in India are expected to reach $15.3bn, according to Euromonitor. More IKEA stores are reportedly set to open across India, as well as in the Philippines, Vietnam and Thailand.

Alongside grocery and homewares, the luxury car sector is also seeing growth in Asia. China alone accounts for almost 32% of overall global value sales of luxury cars, with a particular drive for green motor brands.

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