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NEWS 3 Friday 16 November 2018 www.mapic.com
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MAPIC AWARDS 2018
This year’s honours were presented at a glittering gala held last night in the Palais des Festivals
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NEW DEVELOPMENT
Istanbul’s Galataport was among the many innovative mixed-use projects showcased in Cannes this year
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GROWTH MARKETS
India was one of a number of growing retail opportunities to be highlighted in the Palais this week
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CONTENTS
4 NEWS
THE OFFICIAL MAPIC DAILY NEWSPAPER DIRECTOR OF PUBLICATIONS Paul Zilk MARKETING DIRECTOR Mathieu Regnault
MAPIC Awards; opportunities in Africa; Galataport, Istanbul; new Oman project; art, culture and retail; and more ...
NEWS 3 Friday 16 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.
EDITORIAL DEPARTMENT Editor in Chief Mark Faithfull News Editor Graham Parker Sub Editors Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Reporters Ben Cooper, Liz Morrell, Sarah Morris Editorial Management Boutique Editions Head of Graphic Studio Herve Traisnel Graphic Studio Manager Frederic Beauseigneur Graphic Designer Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographer Michel Johner
PRODUCTION DEPARTMENT Publishing Director Martin Screpel Printed Communication Manager Emilie Lambert Printer Riccobono Imprimeurs, Le Muy (France). ADVERTISING CONTACT IN CANNES daniela.jakovljevic@reedmidem.com • +33 1 79 71 9515 Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNEBILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2018, Reed MIDEM Market Publications. Publication registered 4th quarter 2018. Printed on PEFC Certified Paper.
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ITALIAN PAVILION
ITALY’s buoyant retail and shopping-centre market was reflected in a busy Italian Pavilion during the MAPIC week. MAPIC Italy will be held for the fourth time in Milan, May 8-9, 2019.
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• 16 November 2018
AWARDS
The winners for 2018 are... THE MAPIC Awards once again honoured the best of the best across all the categories of international retail and retail property, with special recognition for Christophe Cuvillier as Personality Of The Year and Japan’s Aeon Mall as Global Industry Partner
BEST RETAIL GLOBAL EXPANSION
BEST NEW RETAIL CONCEPT
UNIQLO Japan
MARC O’POLO STRANDCASINO Germany
BEST RETAIL STORE DESIGN
BEST LEISURE CONCEPT IN A RETAIL SPACE
FRANPRIX DARWIN Paris, France
OPEN HOUSE, CENTRAL EMBASSY Thailand MAPIC News 3 •
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• 16 November 2018
AWARDS
BEST POP UP SHOP
BEST OUTLET CENTRE
SAMSUNG GALAXY STUDIO USA
THE VILLAGE Villefontaine, France Architect: Gianni Ranaulo/ GR Design Developer: Compagnie de Phalsbourg Other: Freeport Retail
Submitted by: PMK*BNC
BEST RETAIL URBAN PROJECT
BEST FUTURA SHOPPING CENTRE
GRAND HOTEL DIEU Lyon, France
AMERICAN DREAM East Rutherford, USA
Architect: RL&A Didier Repellin/AIA Architectes Albert Constantin Devoloper: Credit Agricole Assurances, Caisse Regionale Credit Agricole Mutuel Centre-Est, Eiffage. Other: Scaprim, JLL, CBRE, C&W
Architect: Gensler, Nickelodeon Universe Theme Park and DreamWorks Water Park Developer: Triple Five WorldWide Group Other: Forrec/Nickelodeon Theme Park, Theming Designer. Hettema Group/DreamWorks Water Park, Theming Designer. GHA design studios, Lead Retail Designer
MAPIC News 3 •
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AWARDS
BEST NEW SHOPPING CENTRE
BEST REDEVELOPED SHOPPING CENTRE
SUZHOU CENTER MALL Suzhou, China
WESTFIELD CENTURY CITY Los Angeles, USA
Architect: Benoy Developer: CapitaLand and Suzhou Hengtai Holding
Architect: URW Design, Gensler Developer: Unibail-Rodamco-Westfield Other: Kelly Wearstler Interior Design, OJB Landscape Architecture
BEST SHOPPING CENTRE INNOVATION
RETAILER OF THE YEAR
TRANSACTION CONNECT France
GROUPE GALERIES LAFAYETTE France
MAPIC News 3 •
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AWARDS
GLOBAL INDUSTRY PARTNER
PERSONALITY OF THE YEAR
AEON MALL Japan
CHRISTOPHE CUVILLIER Group Chief Executive Officer, Unibail-Rodamco-Westfield
MAPIC News 3 •
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• 16 November 2018
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Panel gives 1.3 billion reasons to take your brand to Africa AFRICA is at last beginning to live up to its potential as a retail market — and more global brands are setting up regional networks of stores, a MAPIC conference session heard. Destination: Africa moderator, Joseph Leftwich, director of Retail Management Consultants, set the scene. “Africa is a market of 1.3 billion people and that’s on target to double by 2050,” he said. “The opportunities are undeniable and nobody can afford to ignore Africa.” Underlining the point, Vicus Bouwer, division director at Broll Property Group, said South Africa was the most developed market in sub-Saharan Africa. But he highlighted Nigeria as the region’s other economic powerhouse. “Nigeria is 200 million people and I don’t think anyone can say ‘no’ to that type of business,” he said. David Lamarche, international director at Jennyfer, described the French young-fashion
Into Africa: Retail Management Consultants’ Joseph Leftwich (left), Broll Property’s Vicus Bouwer, Jennyfer’s David Lamarche and IMAX’s Giovanni Dolci
brand’s expansion across the continent. “Africa is an opportunity for us,” he said. The brand has strong visibility in Morocco, Tunisia and Algeria, but it has recently opened in Ivory Coast. “We’ve been very impressed by the results, so we’re opening a second store. And we’ll be going into Senegal.” Perhaps the most impressive statistic came from Giovanni Dolci, senior vice-president of
theatre development and managing director, Europe and Africa, at IMAX Corporation. The best-performing IMAX site in the whole of EMEA is in Lagos, Nigeria, which last year saw 80% year-on-year growth in visitor numbers. “In Africa, mobile penetration is phenomenal, so access to content is unlimited,” Dolci said. “But a destination movie theatre is a different experience.”
Helping retailers to put on a show RETAIL developers need to do more to embrace the concept of entertainment in its widest sense, according to Clifford Warner, chairman of entertainment-development company Mycotoo. “It’s about rethinking how you make yourself a des-
Mycotoo’s Clifford Warner: “make yourself a destination”
tination, not just somewhere to go and buy clothes,” he said. This could include more events-driven entertainment, replacing traditional anchors, such as department stores. “We are encouraging developers to think about event space,” Warner added. “It’s an affordable way to create a repeat experience for your customers.” Mycotoo has also been introducing seasonal entertainment events within centres around themes such as Halloween. With a background in developing theme parks, Warner has been coming to MAPIC for the past two years. “Because we have developed theme parks, we are used to creating places where people hang out all day,” he said. The challenge, he addMAPIC News 3 •
ed, was to bring the same longevity to retail centres through better entertainment. Retail developers also need to do more to combine F&B and entertainment, Warner said — a theme he also explored in the MAPIC Leisure Summit session, The Immediate Future Of New Retail And Leisure Experiences. “Food & beverage and entertainment are very synergistic so, if centres are going to be reinventing themselves, they should be talking about these at the same time,” he said. For Warner, MAPIC presents an opportunity to learn more about retail developers and their needs. “It’s about understanding how to bring the mindset of entertainment to the mindset of shopping-mall developers,” he added. 9
• 16 November 2018
NEW OPENINGS SLOW IN MOSCOW ONLY four shopping centres have opened in Moscow in the first 10 months of 2018 as development continues to slow, according to the Moscow office of advisor Knight Frank. In all, this amounted to 108,100 sq m of new retail space, with another 51,2000 sq m scheduled to open before the end of the year. Knight Frank also noted that most of the centres now opening are 20,000 sq m or less — a trend it expects to continue as retail growth becomes focused on community centres. However, the slowdown in new supply has brought a consequent decline in vacancy rates, which have fallen from 8.5% at the end of 2017 to 7.1%, with further declines in vacancy levels expected in the coming two years. In all, 37 new international brands have entered the Russian market this year, down a third on 2017.
SOSTRENE GRENE OPENS FIRST PARISIAN HIGHSTREET STORE DANISH home-interior brand Sostrene Grene has signed its first Parisian high-street flagship store, having established itself in the Parisian shopping centres Forum des Halles, Bercy Village, Passage du Havre and Passy Plaza. The 273 sq m flagship store at 91-93 rue du Faubourg Saint-Antoine will provide a retail offer focused on home decoration in an area of Paris where Muji and Hema are already present. The store is owned by a collective real estate investment vehicle managed by La Francaise Real Estate Managers. The French office of CBRE acted as advisor to both tenant and landlord.
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MUJI: FROM POP-UP TO SUPERSTORE TH REAL Estate has secured the Japanese brand Muji, at its Kamppi Shopping Centre in Helsinki, Finland. It will be the first flagship Muji store in Finland and the largest Muji store in Europe. The store is scheduled to open in Q4 2019. Muji currently has more than 40 stores across Europe. Kamppi Shopping Centre totals 36,600 sq m of retail and leisure space and houses prime international and Nordic retail brands including Tommy Hilfiger, Levi’s, Calvin Klein, Mango, Stadium and Clas Ohlson as well as a number of independent restaurants and bars. Kamppi is one of the most popular shopping centres in the Nordic region, and has attracted some 33 million visitors already this year. Katja Holmstrom, senior portfolio manager at TH Real Estate, said Muji would add to Kamppi’s “well-diversified tenant mix” and serve to maintain its reputation as “the preferred shopping destination in the Helsinki Metropolitan area”. She added: “The Muji popup, which is currently open, has been a great success so far.” The European Cities Fund acquired a 50% stake in Kamppi Shopping Centre in February 2017, creating a 50:50 joint venture with Allianz. The fund targets “incomeproducing properties in ‘future-proof’ cities across Europe”. There are currently 11 properties in the portfolio, including three retail assets, Enox Retail Park, Meraville Retail Park and Xanadu shopping Centre, located in Paris, Milan and Madrid respectively.
Istanbul scheme will bring culture and retail to Bosphorus location RETAIL, F&B and culture will be brought together at the Galataport project by the banks of the Bosphorus in Istanbul, in a scheme that aims to re-establish the area as the Turkish city’s centre for fashion and design. With over 250 shops and restaurants planned, plus a 1.2km riverside promenade, two museums, a university, office space, a hotel and extensive public spaces, the mixed-use project will target both the international cruise passengers who already arrive at the port and the youthful, design-conscious local catchment. Project development director Irem Yucel Kaymak said that on opening in May 2020, Galataport will bring an extensive boutique retail offer to the area, plus a vibrant F&B scene building on the area’s strong heritage in contemporary dining. “It will be a mixture of the old and the new,” she said of the design approach. “The existing buildings, many of which are old warehouses, are being renovated and brought up-to-date, while the new buildings are very modern, so we have this mix across the site.” Top architectural practice Renzo Piano is creating a new home for the Istanbul Modern con-
Galataport project development director Irem Yucel Kaymak
temporary art museum, which is being rebuilt on its existing site at Galataport. The museum was relocated into a temporary building in March while construction takes place. Kaymak said that beyond the 52,000 sq m retail offer, the intention is to make Galataport a centre for open-air events and activities, to re-establish it as a fashion destination.
“The area used to be known as the main area for design and fashion, hosting Fashion Week and other events,” she added. “We want Galataport to bring these activities back. The area has been idle for a long time and we believe this combination of the modern and the historical, plus our proximity to design and fashion universities, will make this a very important location.”
Location is key to success, report finds RESEARCH published by Anglo-Dutch developer Redevco, has found that only Europe’s most attractive cities are showing rental growth, while other centres are showing rental decline — and the gap between the two is widening fast. The company’s City Attractiveness research model found that urbanisation and changing consumer behaviour, partly
driven by e-commerce, mean that retailers need to review and adapt their business models and that location selection is a crucial part of that process. “It is absolutely critical to the success of the retailers, and thus for investors, to be able to identify those cities, and areas within,” in order to be able to benefit from these socio-economic trends, the report said.
MAPIC News 3 • 10 • 16 November 2018
Bart Vink, head of research and strategy, at Redevco, said: “Just because a city today is on the right side of the polarisation divide, does not guarantee it will be going forward. Structural change in the retail landscape challenges all shopping destinations, accelerating the retail real estate evolution where only the fittest will continue to thrive at the expense of the weakest.”
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Nordic region proves the perfect test-bed for innovative retail ideas MANY international retailers test concepts in the Nordics because the region is small and consumers are a good indicator of how those in the rest of Europe will react, the director of asset management, Nordics, at developer Hines said. “The consumers there are critical and fairly honest,” Julie Helweg told the session Destination: The Nordics. Hines is currently working on a 4,000
sq m retail development in Copenhagen. “Because we’re not that many people it’s easy to introduce new trends,” Marit Jensen, head of retail services Norway at Cushman & Wakefield said. Brands can trial technological trends easily in the Nordics, which means innovation in the retail sector there. An example of the Stockholm-based brand is The Lobby, which offers retailers flexible
Speakers and delegates at the Destination: The Nordics session
leasing and payment solutions. One Swedish retailer that took advantage of that flexibility was Dashl, which co-founder Nina Akbari described as “a digital beauty booking concierge”. Dashl wanted to step into a physical store and opened in The Lobby in April for a 14-week pilot. Success led to negotiating a second bar for Swedish multinational H&M. Dashl plans to open two more beauty bars this year and is looking for a strategic partner in order to expand beyond Sweden into the Middle East. Kim Heinio also plans expansion abroad for his catering and hospitality services company Soupster Family, started in Finland in 1997. He first opened the restaurant Soup and now has catering services at parties and venues including on the Allas Sea Pool, “a floating bath near Helsinki Market Square”. He plans to grow steadily in Finland, then to other European countries and particularly London.
Marseille on look-out for new retailers THE FRENCH resort of Marseille wants to attract new retailers to the city to turn it into the “Mediterranean capital of southern Europe”, deputy mayor Solange Biaggi said yesterday. “We’re here at MAPIC to show all we have to offer. We get two million people coming through the city on cruises a year and five million tourists,” she said. The member of France’s Les Republicains Party, elected in 2001, said the city had been meeting retailers at MAPIC since it started attending 16 years ago. “We used to run after retailers. Now they run after us,” she said. “We want to find brands that are not in Marseille and get them to come.”
She said residents were returning to shopping and living in Marseille city centre and she wanted to offer them top brands and independent stores. The city representatives expect to meet between 30 to 40 re-
AEW ACQUIRES LUXURY RETAIL ASSET IN PARIS REAL estate asset manager AEW has acquired a luxury retail asset in Paris from a private seller on behalf of Fondis, which focuses on acquiring and managing retail assets in France. Located on the rue Saint-Honore — one of the French capital’s most prestigious retail destinations — the building is fully let to luxury brand Christian Dior. It is situated on the corner of rue Duphot, in close proximity to the Louvre, the Seine and the Opera district of Paris. Stephane Sebban, fund manager for Fondis, said the acquisition of 384 rue Saint-Honore was consistent with the fund’s strategy of “investing in high-quality retail assets in high footfall retail locations”. He added: “This acquisition brings the fund’s total portfolio to €600m, with a remaining investment capacity of €200m, as we continue to pursue an active pipeline of potential investments.” AEW was advised by Allez & Associes and Clifford Chance. Alliot-Immobilier acted as intermediary.
tailers at MAPIC to tell them about renewals to Marseille, including an improved tram service, a new-look port and buildings that have been renovated thanks to investment by the authorities.
384 rue Saint-Honore in Paris Marseille deputy mayor Solange Biaggi
MAPIC News 3 • 11 • 16 November 2018
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Al Raid’s Al Araimi Boulevard opens
with Oman’s biggest food court SEPTEMBER 2018 saw the soft opening of the 140,000 sq m Al Araimi Boulevard, a new integrated retail and leisure scheme in Al Khoud, a coastal suburb of the Omani capital Muscat. With 70,000 sq m of GLA, including the Carrefour anchor store, the mall is 80% leased to a mix of local and international brands. More brands are expected to sign before the grand opening on December 24, 2018. Marwan Al Jabri, head of facility management at the Al Raid Group, said 30% of the floorspace is dedicated to entertainment, including the world’s first dancing fountain that combines water and fire,
with seating for 3,000 spectators. The scheme also houses the biggest food court and the largest glass atrium in Oman. “Omanis love the outdoors, so we have both indoor and outdoor dining areas,” Al Jabri said. With construction complete at Al Araimi Boulevard, the developer is now turning its attention to another, even bigger, scheme. On completion in September 2020, Al Araimi Walk in Barka will become the biggest mall in Oman. Again, integrating leisure alongside retail will be key to Al Raid’s strategy, according to Al Jabri. “With recreational areas in seven zones, Al Araimi Walk aims to provide a better customer experience,” he said.
Al Raid Group’s Marwan Al Jabri: “a better customer experience”
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Why it pays for malls to blur line between commerce and culture SHOPPING-centre landlords can learn lessons from the worlds of art and culture to add value to their own mall assets, one of the managers of a leading European art gallery said. Speaking at a special panel session at MAPIC yesterday, Arnold van de Water, general manager for experiential content at the Van Gogh Museum in Amsterdam, said that bringing in new ways to interact with leisure and culture was not only “a profitable thing to do” but added real value to the shopping-centre experience. “I see sometimes people struggling because they say they want to do this but they don’t know how,” he added. Also speaking at the session, en-
titled Are Culture & Education The Future Of Shopping Centres?, was Gloria Siu, leasing gen-
eral manager for K11 Concepts, a non-profit organisation that promotes art and culture in Asia.
K11 Concepts’ Gloria Siu: “You need to adapt to change”
Siu said that the increasingly influential millennial generation’s appetite for exciting new features in malls, such as art installations and interactive cultural installations, should be a big factor in the way shopping centres are design in future. “You need to adapt to change and you need to try to adapt to the preferences and the behaviours of the millennials who are your core customers,” Siu added. “With the physical store, we need to offer them a lot of culture and reasons to gather together and party, to make sure they get into the habit of coming back. And art is a part of that.” Delegates at the session, which was aimed at exploring the potential of art and culture in shopping centres, also heard from Winereef ’s Emmanuel Poirmeur, EuropaCity’s Morgane Scoarnec and WeArena Entertainment’s Gian Gherardo Aprile.
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MAPIC News 3 • 13 • 16 November 2018
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MAPIC’s second day included brisk business, conference sessions and networking events in and around the Palais
MAPIC News 3 • 14 • 16 November 2018
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MAPIC News 3 • 15 • 16 November 2018
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Smaller, mixed-use centres are
the way forward for Wereldhave DUTCH real estate investor Wereldhave is “actively reinventing” its business model to adapt to modern consumer trends with an ongoing series of redevelopments and reconfigurations across its portfolio of convenience-based shopping centres. The investment group, which is based in Schiphol in the Netherlands, is pressing ahead with a portfolio-wide strategy to adapt and improve its malls, with potential divestments of assets likely. Wereldhave owns and manages
30 retail assets across the Netherlands, France, Belgium and Finland, worth a total of €3.8bn. Its malls are mainly small- and medium-sized, anchored by convenience stores aimed at serving their local communities. Speaking to MAPIC News, Wereldhave marketing manager Rik Janssen said that part of the company’s strategy was to introduce more non-retail outlets such as food, leisure, entertainment and family activities into its malls.
Wereldhave’s Rik Janssen: “Too much retail in our shopping centres right now”
He said: “We have too much retail in our shopping centres right now. We aim to create a mixeduse shopping-centre portfolio. We need more F&B and we have to focus more on things like kids’ playgrounds, and there are other things we could be doing with the space such as playing a role in fulfilment, or building apartment blocks.” He added: “We are always thinking about what the convenience shopping centre of the future is, and the changing function of a shopping centre.” Wereldhave has recently divested one of its largest centres, in Finland, as part of a strategy focusing on smaller, dedicated convenience malls. The company currently owns and manages 16 malls in the Netherlands, seven in Belgium, six in France and one in Finland. All of the company’s redevelopments and reconfigurations are being carried out in phases to avoid closing down malls, which often serve as a local community hub outside of the city centres.
New Tunisia Malls for Sfax and Ennasr TUNISIA Mall is on-site with two new projects that will take its successful mall format outside the Tunisian capital, Tunis, for the first time. At Sfax, the country’s second biggest city, a 75,000 sq m mall is due to complete in Spring 2021. It will provide 120 stores, 20 restaurants and four levels of underground parking, a first for Tunisia. The scheme’s architect, Thameur Dammak, said the interior will reflect the traditional architecture of the historical city Sfax. The second new scheme is a 28,000 sq m mall at Ennasr, a fast-growing suburb of Tunis. Anchored by a hypermarket, it will include more than 80 shops, a six-screen multiplex and a
large dining area. Completion is scheduled for Autumn 2021. “What both schemes have in
common is that they are being built to European standards,” Dammak said.
Tunisia Mall’s architect Thameur Dammak (left) and marketing director Mouna Zmerli
MAPIC News 3 • 17 • 16 November 2018
AEON OFFERS GATEWAY INTO JAPAN JAPAN has great potential for international brands and the barriers to entry are often exaggerated, according to one of the country’s leading developers. Mitsuhiro Fujiki, managing director of the leasing division of Aeon Mall, said the key to a successful entry into the Japanese market was to find a trusted local partner. “We’ve been coming to MAPIC for three years and our relationships are deepening,” he said. He cited two examples of recent arrivals in Japan: Hotel Chocolat from the UK will open its first Japanese store at the end of November 2018, and ID Kids from France launched in Spring 2018 and now has three stores open. In addition to working with global brands, Fujiki is at MAPIC to promote Aeon’s successful outlet business and in particular The Outlets Hiroshima. “Our scheme has some significant differences to the traditional outlet mall,” he said. “It’s more than just a mall, it’s a place to spend a whole day with a cinema, an ice rink, a bowling alley and a VR games area.” On the back of the success of Hiroshima, Aeon is looking to export the format into South East Asia and a project is now under way in Vietnam. “It’s an integrated retail and leisure destination, and in fact we see shopping itself as a leisure pursuit,” he said.
Aeon Mall’s Mitsuhiro Fujiki
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Max Burgers set to take a big bite of the fast-food market CLAIMING that it is set to be “the best burger chain in the world”, Swedish fast-food business Max Burgers is on the expansion trail, with plans to double its size over the next five years. Max Burgers currently has around 140 restaurants in Sweden, Norway, Denmark, Poland and Egypt. It aims to expand in Scandinavia, Europe and the Middle East, according to Richard Bergfors, CEO and son of the company’s founders, who launched Max Burgers in 1968. In Poland, Max Burgers is aiming to open around 200 sites over the coming 10 years. The company is currently opening its own stores in the country, but is considering taking franchises. In those territories where local knowledge is necessary, Max Burgers looks for master franchisees. Next year will see Max Burg-
ers enter the Dutch market after agreeing a franchise partner. “Then the priority will be Germany and France,” Bergfors said. The chain, whose chief rivals
are McDonald’s and Five Guys, offers a premium product at a price point around 10%-15% above that of McDonald’s. “In most countries, we have
Max Burgers’ Richard Bergfors
No limit for ‘beautiful casual brands’ GET THE concept right and the growth potential is almost unlimited in the casual-dining sector, according to Vincent Mourre, managing partner of Mourre Participations. “The growth potential is wide when you have one of these beautiful casual brands in your hands,” he said. “You don’t have a limit to your growth potential.” Speaking at yesterday’s Food & Beverage Players’ Recipes session on how to develop concepts with a private-equity partner, Mourre said the sector had seen huge investment of late: “In the last two years we have seen incredible merger and acquisition activity in the food sector, with several milestone transactions that are completely reshaping our industry.” He said he had identified 14 milestone transactions in 2017 and 2018,
one competitor and that’s McDonald’s,” Bergfors said. “But we know how to beat them by creating a greater experience in terms of atmosphere, and also through taste and quality.” Max Burgers offers around eight vegetarian or vegan burger options. Currently, around 40% of its sales are non-red meat and it aims to raise this to 50% in the next couple of years.
Mourre Participations’ Vincent Mourre: “incredible merger and acquisition activity”
MAPIC News 3 • 19 • 16 November 2018
which fall into three macro categories: growth, market consolidation and turnarounds. Talking through the key transactions, Mourre said they were all good assets that had been traded at a 12-to-14-plus multiple. “It means there is a better understanding from the investors of the growth model of food brands,” he added. Despite intense activity in the coffee sector, Mourre said there was still opportunity for more: “Keep an eye on the coffee industry. It has been completely reshaped in the last couple of years and that will continue.” Although Mourre believes there is still huge potential for successful brands to grow — and for tired brands to reinvent themselves — he said attention had to be paid to delivering a quality offer. “Nothing is easy and the restaurant sector is based on consistency and a high standard of execution,” he added.
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Buzzing India pavilion highlights promise of retail’s sleeping giant MAPIC’s India pavilion saw brisk business throughout the market as leading players from across the Indian retail industry extolled the virtues of what is potentially one of the world’s biggest markets. Mehaboob Ma, managing director of Secura Developers, said: “India’s a very diverse place. It’s not a single market and each demographic group has its own characteristics.” To help negotiate a path through the complexities, he advised retailers looking to enter the market to find a strong local partner. Decathlon from France and Zara from Spain are brands that have made a success of trading in India, Ma added. Surender Pal, head of retail at Kalpataru, a $2bn diversified construction, engineering and retail conglomerate, said he was on the lookout for entertainment concepts to take back to India. “In that respect, India’s still back in the 1960s,” he said.
Brisk business in the India Pavilion
“I think there’s huge potential for things like VR attractions.” Kalpataru’s Pal is also using MAPIC to research the latest trends in mall design, to help shape the next generation of his company’s schemes. “I’m here to see what other de-
velopers are doing worldwide,” Pal said. Mukesh Kumar, CEO of Mumbai-based Unique Estates, is hoping to gain insight into global trends as the company looks to grow its retail exposure. “We have a diversified
Ready for a virtual Gordon Ramsay? VIRTUAL interactions such as AI guided tours could become a big part of shoppers’ relationships with retail spaces, according to a leading digital real estate director. Speaking at the MAPIC Innovation Forum yesterday, Karen Harris, managing director of intuDigital — part of shopping centre group intu — said that innovations such as “virtual assistants” in malls might be used to complement human experiences and interactions in future. “Shopping centres are going to be about discovery,” Harris said. “We’ve already seen this happening. Humans rely on other people’s expertise, whether it’s
Future gazers: Hammerson’s Stephen Brown (left) with ECE Projektmanagement’s Philipp Sepehr and intuDigital’s Karen Harris
MAPIC News 3 • 21 • 16 November 2018
portfolio, but retail’s fairly new for us,” he said. In 2011, Unique opened Infiniti, a 110,000 sq m five-level mall in Mumbai. Now it is targeting other major cities, including Delhi and Bangalore, where there is potential for 100,000 sq m-plus malls. For representatives of menswear brand Raymond, one of the world’s retail giants, MAPIC is an opportunity to scope out new territories for growth. “We have 1,500 company-owned stores and we’re opening new sites at a rate of one a day,” said Sanjeev Rao, director of global sales and business development. Stores are already open in Sri Lanka, the Gulf states, Pakistan, Bangladesh and the US, through a shop-in-shop format in Macy’s stores. Rao said the CIS states, Japan and Canada are likely to be next on the list. Raymond has an equally strong manufacturing and wholesale business. Head of e-commerce and exports Neeraj Raheja is looking to make new international contacts. “We’re an integrated business,” he said. “We manufacture our own fabric and we’re the fifth largest suit-maker in the world.”
friends or influencers. But this could be a virtual assistant walking around with us in a shopping centre, or a virtual Gordon Ramsay showing us how the latest Kenwood blender works. That’s the world we’re probably going to be moving into.” Harris was speaking at the Artificial Intelligence: The Future Of Retail session yesterday morning, alongside Stephen Brown, Hammerson’s group marketing and communications director, and Philipp Sepehr, chief digital officer of ECE Projektmanagement. Brown said that, while features such as AI are exciting, there are still fundamentals — wi-fi, for example — that shopping-centre owners need to get right before they can think about taking more innovative steps.
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Italy’s retail market is ‘a major magnet’ for foreign investors
Brisk business at the Italian Pavilion
THE ITALIAN retail property market is ripe for inward investment, with major development projects currently under way throughout the country. Dozens of Italian companies are showcasing projects at MAPIC, looking to meet potential development partners, investors and retailers. The hub of this business is the Italian Pavilion, where a packed schedule of events and presentations is taking place. Among the companies and organisations present is the Italian Trade Agency (ITA), which is attending MAPIC for the first time this year. ITA director Ste-
fano Nigro said that Italy’s retail market is a major magnet for foreign investors. “Our goal is to promote the opportunities in both the Italian public and private sectors,” he said. “Our retail market is driven by foreign investment. There are 400 real estate investment opportunities in Italy at the moment, and 190 of them are in retail.” He added: “Retailing is strong in Italy and it is a big part of the real estate market — 40% of commercial real estate in Italy is retail.” Nigro cited a major scheme on the Genoa waterfront consisting of 145,000 sq m of mixed-
use space, including a significant amount of commercial property. Opportunities for development and investment from all over Italy are being showcased this week. But Bianca Procino, architect and business developer at Milan-based Lombardini22, said that much of the activity in Italy is currently focused on shopping-centre redevelopment, in which her firm specialises. Procino added: “We have been very busy over the past 12 months, with 33 projects completed. People are using refurbishments and restyles to do what’s needed to develop their existing assets.”
KidsPlay convinces the grown-ups POLISH digital signage business City has found a way to get more families into malls, while also gleaning vital data for retailers and shopping-centre managers. City launched KidsPlay in May. The concept, which consists of play spaces that combine screens with educational games, can be adapted for any space, from a shopping centre to an airport. “We wanted to invent a product to attract whole families to shop-
ping centres,” said City’s marketing manager, Dominik Rogoz. The company has 20 years of experience working with malls and retailers, making kiosks to help shoppers find stores and LED screens for showrooms and window displays. For its new venture, it has turned to psychologists and teachers to create installations that help children to improve skills, such as reflexes, languages and maths. From its back office in Krakow,
the company can then process data on the number of children playing different games and run loyalty schemes. City has already sold 15 of its installations, which are tailor-made to fit a centre’s architecture and space. “We are really surprised how many shopping centres are interested in KidsPlay,” Rogoz said. “It’s because children are decision-makers: they decide where the family goes shopping.”
MAPIC News 3 • 23 • 16 November 2018
LARGEST MALL ON THE RIVIERA TO OPEN NEXT YEAR FRENCH developer Altarea Cogedim is set to complete the largest shopping centre on the French Riviera next year. The Cap 3000 project — sited just outside of Nice, right on MAPIC’s doorstep — has doubled the footprint of the former shopping centre at SaintLaurent-du-Var to create a 135,000 sq m “lifestyle centre”, featuring 300 stores and restaurants. “Cap 3000 will be the largest Riviera shopping centre and the first European waterfront shopping and leisure centre,” said Nathalie Bardin, Altarea Cogedim’s head of institutional relations and CSR, and a member of the developer’s executive committee. Altarea Cogedim is also revamping the retail space at the Montparnasse train station in Paris. The company’s latest venture into travel retail is set to open by Christmas. Altarea Cogedim’s latest mixed-use project is located at Issy-les-Moulineaux, to the south west of Paris, where the company is developing 100,000 sq m of housing, 40,000 sq m of offices and 20,000 sq m of retail. “We participate in creating cities,” Bardin said. “They’re not just words: we’re currently involved in 10 mixed-used projects.”
Cap 3000 at Saint-Laurent-du-Var
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Retail Destination Alliance aims to re-shape the mall experience FOUR pan-European companies with a global reach have joined together at MAPIC to form the Retail Destination Alliance, a new body aimed at helping malls redefine their offers and turn themselves into des-
tinations rather than just shopping centres. “The goal is to transform or build malls for the new requirements for a leisure-driven experience,” said Marcel Hatt, managing director of Maxmakers
and one of the companies in the alliance. The other members include the retail department of German project management company Drees & Sommer; Entertaining Retail, a UK-based company specialising in interna-
Entertaining Retail’s Helen Barnish (left), Drees & Sommer’s Sean Pike and Maxmakers’ Marcel Hatt
tional brand expansion for entertainment retail and food and beverage; and German-based advisory firm SD Group. “Retail is changing and opening up from classic malls to more comprehensive centres in which all shapes of life take place including leisure, food, entertainment and health,” Hatt said. This means that centres have to rethink their offers. “It’s about looking at space not from a pure retail point of view, but to look at it in a wider context,” said Helen Barnish, managing director of Entertaining Retail. Sean Pike, senior project manager at Drees & Sommer, said that requires a greater appreciation of what consumers want, rather than just what they need to buy, as consumers increasingly look for experiences rather than just products. “There is a need to cater for the needs of people, and not simply focusing on the purchasing point,” Pike said. Hatt added: “Malls need to look at a strategic level how to reposition the mall so that the consumer perceives it as a destination and wants to go again and again. There are lot of aspects where retailers could benefit from entertainment to attract and re-attract and establish loyalty.”
Locatus search tool launches in Spain THE CREATOR of a powerful tool which makes searching for retail properties faster and more efficient is expanding its operations with a national launch in Spain. Dutch data company Locatus is preparing to go live with a comprehensive database of the Spanish retail property market and is in Cannes to showcase the product to the markets. Locatus has been operating for 20 years and has already amassed a full database of the Dutch and Belgian retail markets, which can be used by retailers and agents to search for properties and potential sites.
The database allows users to refine searches based on their requirements, with parameters including mall size, existing retailers, and the location of available units. Locatus director for Spain, John van Haaren, said that the launch, in conjunction with a number of major property players including CBRE, intu and Cushman & Wakefield, represented a major step forward for the company and would transform the market for retail property professionals. “There are 400 shopping centres in Spain but there was no central database for all of them
when we decided to start mapping the market,” van Haaren said. “It wasn’t possible before to search all of the properties in the market. Now they can get answers in a couple of minutes.” The subscription-based Locatus database service, which already operates throughout Europe on a city-by-city basis, allows users to access historical data on a shopping area in order to track changes and developments at a scheme over time. At MAPIC van Haaren said that more whole-country databases were being considered, with Italy being a potential future market.
MAPIC News 3 • 25 • 16 November 2018
John van Haaren of Locatus
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Matalan in Cannes seeking new partners from around the world
Matalan’s Damian Hopkins
RETAILERS ARE SWITCHING ON TO VR AND AI
UK FASHION and homewares retailer Matalan is on the hunt for franchise partners to help it open its first stores in North Africa, Eastern Europe, the Caucasus, Canada and India. “We have come to MAPIC looking for the opportunity to meet franchise partners in new territories where we can open stores,” said Damian Hopkins, international director for Matalan. He said the retailer was looking to open stores as soon as possible once it finds the right franchise partners. It looks for master franchisees for each territory. Matalan currently operates 30
international franchise stores in nine countries, including 23 stores in the Middle East and four in Malta. The retailer will open its first stores in Cyprus and Greece in 2019/20, after signing with a franchise partner there, and will expand further in Malta and the Middle East next year. Hopkins said the retailer was looking to open around 15 to 20 new international stores over the next two to three years. International stores are typically around 1,500 to 2,000 sq m in size, smaller than the UK footprint for Matalan stores.
He added that the company offered a great opportunity for franchisees. “If you are looking for a value family offer of good-quality fashion and homewares then we are a one-stop shop for that product. We are a first-price, rightprice retailer rather than a discounter,” he said. He added that the company worked hard with franchise partners to support their expansion. “We take pride in making sure our partners get as much input from the UK business as possible,” he said. As well as using MAPIC to explore opportunities with new franchise partners, Hopkins said the show also offered a valuable opportunity to meet directly with mall developers where the retailer already has stores, for example in the Middle East.
RETAILERS from around the world gathered at the Global Retail Partner Summit. The forum provided an opportunity for international brands to meet potential local partners, as well as learning from the experience of premium global retail and franchise experts.
THE RETAIL property sector is starting to get to grips with the potential for AI as a form of retailtainment, the head of a major VR and AI games creator said. Devi Kolli, chief executive of AiSolve, which is present at MAPIC with one of the most talked-about stands at the show, said that where landlords have previously been reticent about adopting the technology, the need to bring more leisure and entertainment into their malls has driven them to explore innovative solutions. She added: “We’ve taken our VR product into two malls now and shown people what it can do. People are getting the concept of how this can be a great plug-and-play for a shopping centre. “Now our job is to educate people; there are different qualities of VR machines and there are some lesser-quality machines.”
MAPIC News 3 • 26 • 16 November 2018
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