MAPIC 2018 PREVIEW MAGAZINE by RX REAL ESTATE SHOWS

TODAY’S RETAIL MIX

TOWNS AND CITIES

PREVIEW TRANSFORMING REALITY

October 2018 www.mapic.com

038_CPI_PV_PIC

ONLINE-TO-OFFLINE

WANDA NANJING MALL

HIGH STREET SHOPPING

The new retail paradigm

KCC, China

Mulhouse, France

Transforming spaces and exploring new avenues of opportunity at every turn €7 BN

418

1,035 Km

€4 BN

property portfolio value

assets in portfolio

of retail

EPRA NAV

At CPI Property Group we pride ourselves on transforming spaces and exploring new avenues of opportunity at every turn. Visit us at Riviera 7 (stand R7.J2) to discover how our active asset management and long-term vision consistently deliver market-leading results for our diverse range of valued clients.

cpi-mapic-magazine-cover-230x200mm-final.indd 1

Space Means Opportunity 27/09/2018 15:05

032_BARAKA_PV_PIC_ GATEFOLD_BACK_SIDE_ _INSIDE_FRONT_COVER

15,353 SQM Total of Prime High Street Retail

Located in the heart of Madrid’s city centre

Over 53,778 people and 222,239 vehicles pass through Plaza de España

A SYMBOL OF MADRID Gran Via is one of the prime shopping and leisure streets in Madrid and is the destination of choice for mainstream retail brands to locate flagship retail stores in the city. Plaza de España is at virtual full occupancy and retailer demand outstrips supply, leading to a 6.4% rental growth in the last 2 years.

+34 914 350 917

PLAZA DE ESPAÑA 19

www.grupobaraka.es

MADRID, SPAIN

032_BARAKA_PV_PIC_ GATEFOLD_BACK_SIDE_ _INSIDE_FRONT_COVER

15,353 SQM Total of Prime High Street Retail

Located in the heart of Madrid’s city centre

Over 53,778 people and 222,239 vehicles pass through Plaza de España

+34 914 350 917

PLAZA DE ESPAÑA 19

www.grupobaraka.es

MADRID, SPAIN

032_BARAKA_PV_PIC_ GATEFOLD_FRONT_SIDE

A SYMBOL OF MADRID

EDITORIAL

Nathalie Depetro, MAPIC director, Francesco Pupillo, MAPIC deputy director, and Filippo Rean, Reed MIDEM’s real estate division director

WELCOME to the MAPIC 2018 Preview publication introducing the 24th edition of our international retail property market. We will welcome nearly 8,600 delegates from 80 countries, including around 2,100 retailers, 1,000 investors and 2,500 developers, to Cannes this November. Physical and digital have converged in retail — and also at MAPIC, where visitors will be able to experience this ‘transforming reality’ for themselves. Bricks-and-mortar and e-commerce are converging everywhere: Walmart recently bought Flipkart, Alibaba has invested in malls, and Amazon is opening stores and has bought Whole Foods, to name just a few examples. And while traditional retailers have embraced e-commerce, online retailers including Missguided, Mi Stores and Warby Parker and many more are examples of online players opening physical stores. Therefore, traditional retail spaces, such as high streets, shopping centres, travel hubs and designer outlets, have no alternative but to completely review their marketing and leasing strategy to create the ultimate retail and leisure lifestyle destinations. To reflect the changing nature of retailing, MAPIC will put at the heart of the conversation specialist sectors such as food and beverage, edutainment, leisure, live entertainment, customer services, spas, fitness centres and medical centres. To attract and retain the very best tenants, retail property owners and developers need to facilitate experiences beyond pure retail that can capture and expand dwell time. In this respect, MAPIC 2018 welcomes its very first Leisure Summit, as well as the second edition of the Outlet Summit, both of which take place on the day preceding the show. In addition, to reinforce the worldwide expansion of our clients, the Global Retail Partner Summit will help retailers to meet and select their future partners across Europe, the Middle East, India, Asia-Pacific, Russia and Turkey. The MAPIC Innovation Forum area continues to support our participants in finding the best online-to-offline (020) marketing solutions to ensure traffic and customer loyalty while improving the customer experience. The evolution of the industry is moving fast: MAPIC will help you to innovate and understand the new eco-systems and the business models of tomorrow. We very much look forward to welcoming you all — old friends and first-time visitors — to Cannes once again.

MAPIC PREVIEW • 3

• October 2018

MAPIC 2018 Steering Committee Mr. Alain Boutigny

Mr. Chris Igwe

SITES COMMERCIAUX

CHRIS IGWE INTERNATIONAL

CEO & Founder

Founder & CEO

Mr. Luca Cappuccitti DESIGN INTERNATIONAL

Mr. Damian Hopkins MATALAN

Mr. John Scott TM LEWIN Director of International Business Development

Mr. Fabien Stutz NIKE EMEA

International Director

Senior Director Real Estate & Store Construction

Mr. Pierre Combet

Mr. Henrie W. Koetter

CAMAIEU Head of property

Mr. Brian Tucker

ECE

GEWERBE IMMOBILIEN / LIVEFRESH

Director - Global Business Development Strategy

MOREORLESS Managing Partner

Mr. Jean-Paul Freret AssociÃ©s en Finance JACQUILLAT & DETROYAT Senior Advisor

Chief Investment Officer/Managing Director

Mrs. Mayte Legeay RESOLUTION PROPERTY Senior Asset Manager Europe

Partner & CEO

Mr. Reinhart Viane KCC Business Development Director

Mr. Peter Wilhelm Mrs. Karen Harris INTUDIGITAL LTD Managing Director

Mr. Carsten Heidtmann INGKA CENTRES Global Leasing Director

Transforming Reality Physical in the age of digital

Mr. Laurent Plantier FRENCH FOOD CAPITAL Founder & Partner

Mr. Christian Recalcati LARRY SMITH CEO

WILHELM & CO CEO THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS (ICSC) European Chairman

Mrs. Pamela Wolf SALESFORCE Director Customer Innovation

The leading international retail real estate event. 14-16 November 2018 Cannes, France

CONTENTS

7 HIGHLIGHTS

27 MAPIC AROUND THE WORLD

TRANSFORMING REALITY

MAPIC has already held events in London, Milan, Moscow and Mumbai this year, including the launch of a new Food and Beverage show.

With convergence the mantra for next-generation retail, we look at how MAPIC will reﬂect the coming together of online, oﬄine and experience retailing.

39 REGIONS Detailed analysis of the latest developments, investments and retail and leisure initiatives across the world’s major consumer markets.

WESTERN EUROPE MEDITERRANEAN EUROPE SCANDINAVIA RUSSIA AND CEE MENA AND TURKEY NORTH AMERICA ASIA

39 49 57 63 71 77 85

15 CUSTOMER EXPERIENCE MAPIC’S NEW RETAIL MIX

Consumers are choosing to spend their money on an increasingly diverse range of activities, entertainment and well being. We consider what it means for the retail mix.

92 AWARDS This year’s MAPIC Awards have been broadened to reﬂect the growing diversity of retail real estate and the new players inﬂuencing the future of the sector.

93 CONFERENCES & EVENTS

PROGRAMME

96 YOUR MAPIC EXPERIENCE

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

MAPIC PREVIEW • 5

• October 2018

046_RM MAPIC_PV_PIC

Transforming Reality Physical in the age of digital #TellYourTransformation

THE LEADING INTERNATIONAL RETAIL PROPERTY MARKET Build the ultimate retail and leisure mix to create lifestyle destinations! The digital revolution has deeply impacted the traditional retail industry. The â&#x20AC;&#x153;customer experienceâ&#x20AC;? is the key concept that is transforming the industry today and leading to the rise of new consumption and business models. The physical part of the industry is changing and entering into a new era.

Palais des Festivals, Cannes, France 14-16 November 2018

highlights: TRANSFORMING REALITY

Physical in the age of digital

Omni-channel concept: Zara’s ﬂagship Milan store

Convergence has become the mantra for next-generation retail. Mark Faithfull looks at how MAPIC will reﬂect the coming together of online, oﬄine and experience retail

RICKS-and-mortar and e-commerce are converging everywhere: Walmart recently bought India’s Flipkart; Alibaba is investing in malls; Amazon is opening physical stores and has acquired Whole Foods; Carrefour and Google have announced a collaboration; Ocado is to work with Kroger; Microsoft and Marks & Spencer are partnering up; and JD.com and Google are collaborating in China. The list goes on and on. And while traditional retailers are embracing e-commerce, a number of online retailers

— Missguided in the UK, Mi Stores across Asia and Europe, and Warby Parker in the US, to name just three — are opening physical stores. Meanwhile, in September Zara re-opened its ﬂagship Milan store as the third — after Bilbao and London — to reﬂect its digital ambitions to sell online globally within two years. So digital has not, as once predicted, killed physical retail. Instead, with online sales booming, traditional retail spaces — high streets, shopping centres, travel hubs — have no alternative but to completely re-examine their marketing and MAPIC PREVIEW • 7

leasing strategy. As a result, the impact of online development has drastically transformed the traditional retail format. Meanwhile, the ‘browse ofﬂine, shop online’ phenomenon is impacting on the relationship between tenants and locations. Online-to-ofﬂine (O2O) marketing solutions have become crucial to ensure both traffic and customer loyalty, while improving the customer experience. One company that has stepped into the physical space is Made. com, whose CEO, Philippe Chainieux, insists: “We are an online business and will continue to be so. Our showrooms are • October 2018

a place for customers to experience the Made brand. They are designed as an extension of our online business. We have learnt that the number-one thing consumers want from a showroom experience is great customer service, so that continues to be the focus.” Chainieux says showrooms will continue to be central to Made’s strategy. The company will be increasing the number of showrooms it operates in the major cities of those countries in which it is already present, as well as expanding into new territories in order to achieve its “ambitious growth plan to complete the European footprint in the next three years”. Another company that began by focusing on online but has seen the benefits of opening physical locations is LDLC, based in France. “Our heritage is with

highlights: TRANSFORMING REALITY

Online fashion retailer Missguided has opened stores with attitude

an entrepreneur who, in 1996, started an electrical-components business from a garage and became one of the biggest retailers of high-tech products. In keeping with a contrary approach, as we saw the market become increasingly competitive, four years ago we decided to open stores,” says Eric Schneider, general director of LDLC. In fact, the decision was based on what LDLC saw as two specific customer requirements. The first is for customers who know what they want: for this group, online and a wide choice are optimal. The second is for customers who need advice. LDLC’s estate has expanded to 33 stores, with 15-20 openings planned per year. The shops

serve as a way of providing detailed advice, being close to the customer and offering specialist services, such as a repair centre that will help consumers regardless of whether they bought the product from LDLC. “These are things you can’t offer online,” Schneider points out. He adds that the approach has created a strong and differentiated brand position for LDLC. The company has developed 300 sq m city formats and a 200 sq m format located on access routes into towns. Meanwhile, for furniture and homewares retailer Habitat, e-commerce is very important and accounts for 10% of sales. Online and ofﬂine complement each other, says Alain Houli,

The Made.com showroom in Paris

Habitat’s Italy manager. He adds: “Where we have e-commerce, we record double-digit sales growth. The channels support each other.” Also recently opened in Italy, Xiaomi was founded in 2010 by serial entrepreneur Lei Jun with the aim of offering high-quality technology at affordable prices. Achieving a turnover of more than $1bn within two years, the pure player launched in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India, Indonesia and Brazil, before expanding its footprint to Europe to become a global brand with its Mi products [‘Mi’ stands for mobile internet]. Francesco Zhou, general manager of Mi Italia, says that, despite originating as an online retailer focused on mobile phones and tablets, Xiaomi now has more than 1,000 stores worldwide. “We are one of the few cases where an online company has been successful ofﬂine,” he adds. “We are not just about mobile phones.

We are an internet company, offering devices, luggage, household products and so on.” Xiaomi’s approach has led to it being labelled the ‘Apple of the East’. Mi stores have now opened in 62 countries, with the company opening its first Italian outlet in the Il Centro shopping centre in Arese, Milan on May 26 — just a few days after making its debut in Paris. “Our strategy is for mall locations, because the model is working in other countries,” Zhou says. The retailer’s European push started in Spain last year, followed by France. “In Italy, we envisage opening around 30-40 stores, with the first 20 in the best malls over the next 24 months if possible. We’re looking at around 200-300 sq m for stores,” Zhou adds. Xiaomi opened a second Milan store at the end of June at the Metropoli shopping centre in Novarte, to the north of the city. With expansion in France, Italy and Spain now under way, the company has also intimated

Martin Urrutia, Lego Group: “When Habitat Milan: Part of a next gen, smaller format concept

MAPIC PREVIEW • 8

practicality and consumer experience ﬁt together as perfectly as two Lego bricks, you have the right store experience”

• October 2018

012V2_PAV ITALIAN_PV_PIC

highlights: TRANSFORMING REALITY

The Apple of the East: Mi Stores has opened in Italy

that it will look to open stores in the US next year. Retailers need to use their physical stores to give customers memorable experiences, says Lego Group’s head of global retail innovation, Martin Urrutia. “Think about what you want people to remember from their visit to your store,” he advises. Lego, he adds, sees its stores as “another media channel” or a “brand experience centre” — which is why the company offers hands-on brick building at

Lego, clicks and (plastic) bricks

its stores. “Our ambition is that, every time you come to a Lego store, you have the opportunity to play and to touch a brick,” says Urrutia, who likens Lego stores to “large theatres”. Urrutia believes that a store has two purposes: to meet fundamental, practical requirements and to create a consumer experience. “When these two fit together, just as perfectly as two Lego bricks, you have the right store experience,” he adds. Indeed, legacy retailers can cre-

ate modern businesses if the old models are adapted to today’s consumer, says Kingfisher CEO Veronique Laury. Kingfisher started the digitalisation of its business three years ago. Laury says there is a myth that DIY groups, which sell “projects not products”, are unsuited to online. “Not true,” she insists. “At Screwfix, 28% of sales are online. I really think you need to have both. Amazon has kicked every other retailer to go a little faster. Their key has been the

focus on customers, showing the way forward for all of us.” To determine its future direction, Laury says Kingfisher will stick with what its customers want, not its business model. “It’s a challenge, because you have to change the way you do everything,” she says. Her advice is: “Be bold, brave, test and don’t wait until you know the answer. No-one has the answer. The real difference is the pace and how fast you have to change. Either you change or you die.”

MAPIC DELIVERS NEW LOGISTICS SESSIONS The increasing importance of logistics will be highlighted at MAPIC, with a particular focus on the relationship between delivery, shopping centres and stores. A special session, All You Need Is Logistics!, will take place between 14.30-15.30 on Wednesday 14 November and will cover turning delivery for shopping centres, city centres, retailers and customers into a business opportunity; last-mile retail and sameday delivery; delivery points and pickup services to increase traffic in shopping centres; warehouses, platforms, plus hubs and pick-up points. Confirmed speakers include Ronan Bole, operations director and president of Amazon France Logistics and Raimund Paetzmann, VP corporate real estate at Zalando.

The core infrastructure of the Amazon network is currently served by five fulfilment centres in France, which effectively run along a central spine from north to south. Towards the end of the year a sixth will open in Bretigny-surOrge and will be the first in the country to be packed with automation and robotics as part of the next generation of distribution centres. “We have developed a very strong spine of large fulfilment centres from north to south in France, the next locations will see us expand to the east and west,” says Bole. “We are also establishing Amazon Lockers at nearly 1,000 train stations across France, because we want to deliver to where the customer is on their journey.” Amazon has increasingly been looking to pick-up points, as customer needs and

MAPIC PREVIEW • 10 • October 2018

Rapid expansion: Amazon France

preferences evolve. There are currently more than 20,000 pick-up points and over 500 Amazon Lockers across France, located in shopping centres operated by Immochan, Klepierre, Unibail-Rodamco-Westfield, Hammerson, Apsys, Wereldhave and Frey among others, plus locations within stores such as G20, E. Leclerc and Cora. Lockers are also sited at universities and petrol stations through partnerships with Esso and BP.

028_ECE_PV_PIC

Visit us at MAPIC, stand R7.G14

THE SHOPPING TOUR OF THE FUTURE STARTS ON YOUR COUCH. ECEâ&#x20AC;&#x2122;s Digital Mall provides information on the product availability in a shopping center, enables customers to reserve a specific size or color online, and to pick it up later. This is a major step towards a seamless omni-channel experience. Launched in 2016, the Digital Mall at Alstertal-Einkaufszentrum in Hamburg today features more than 200,000 products from 30 shops. Further stores will follow this year â&#x20AC;&#x201C; just as more ECE shopping centers will launch their Digital Mall. For more information, go to www.ece.com.

180926_191-1386_ECE_AZ Preview_MAPIC_230x285_V01.indd 1

26.09.18 17:06

highlights: TRANSFORMING REALITY

The Kingfisher DIY group is embracing omni-channel

Veronique Laury, Kingfisher:

“Be bold, brave, test and don’t wait until you know the answer. No-one has the answer. Either you change or you die”

Emaar’s Dubai Mall encourages user ratings

Laury says she considers Kingfisher “lucky to be in the UK” because digital is so well established in the country. She describes the UK market as “almost a lab for other countries”, adding: “Also, there are a lot of stores closing in the UK. Other markets may think this won’t happen to them, but I predict it will come to France in three years, Poland in five to six years — and Russia is catching up very fast.”

The pace of digital retail is largely being set by smart young people, according to the chairman of Emaar Properties. “I realised my way of doing business is obsolete,” Mohamed Ali Rashed Alabbar says. “These e-commerce people will take over the world. They are young; they are bright. So think how fast you respond to phone calls, emails, WhatsApp. These people have beds in the office.”

THE APPLIANCE OF SCIENCE AN INCREASING number of MAPIC exhibitors are focused on using technology, data and analysis to deliver insight. Nearbuy Group offers a large selection of products to guide, engage and advertise visitors in shopping malls, retail stores, hypermarkets and other large public areas. These include: interactive touch points (wayfinder, smart directory); holograms; robotics; interactive applications and Technology can engage and inform digital signage. Using technology as a core value proposition against traditional media players, Nearbuy Group is building an exclusive digital advertising network across most sought-after venues in the Middle East region and beyond. It is the UAE’s largest operator of digital out-of-home screens. Advertisers have access to more than 2,800 digital screens in the UAE and over 3,200 screens across the Middle East, via the group’s own programmatic platform. Retail environments all have subtle differences in the way they are managed but there must always be a requirement to measure performance and monitor against a clear and concise set of benchmark targets, says Reveal Systems. The company provides the data capture systems and reporting and analysis platform to support informed decisions from live and auditable data. The ability to quickly measure the effect of any decision and act on that information provides users with a return on investment when considered against elements such as management efficiency, maximising rental revenues, non-rental revenue opportunities and focused marketing activity.

MAPIC PREVIEW • 12 • October 2018

Mohamed Ali Rashed Alabbar, Emaar:

“These e-commerce people will take over the world. They are young; they are bright; they have beds in the office” Digital strategies need to focus on what customers are feeling and the challenge of getting shoppers into stores, he adds. At Emaar’s mall in Dubai, which receives 80 million visitors, shoppers give one-to-five ratings to questions about their visit. Emaar’s founder believes that, despite the pull of mobile phones and tablets, there is still a place for retail developments that offer a sense of tradition: “the old life of the square — people getting together by the church, the park or the synagogue”.

CONFERENCES & EVENTS AT MAPIC RETAIL TRANSFORMATION: THE NEW DEAL WITH O2O Wednesday 14 November - 9:00-10.00 Conference Room 1 - Palais -1 OMNICHANNEL: REINVENTING PHYSICAL! Wednesday 14 November - 10:00-11.00 Conference Room 1 - Palais -1 ALL YOU NEED IS LOGISTICS! Wednesday 14 November - 14.30-15.30 Conference Room 1 - Palais -1

037_BRUSSELS_PV_PIC

OPEN YOUR FLAGSHIP STORE IN THE HEART OF BRUSSELS

Marion LEMESRE, Deputy Mayor of the City of Brussels in charge of Economic Affairs and Retail, invites you to the pannel:

WHY SHOULD YOU OPEN YOUR FLAGSHIP STORE IN BRUSSELS? on Thursday 15 November 2018 at 11:00 at the Salon Croisette

ENTR 1809 Mapic Pub.indd 1

SUBJECTS:

The renaissance of Brussels The real estate market The new retail projects on the go Testimonials of new investors and retailers

28/09/18 06:51

048_RM INNOVATION_PV_PIC

JOIN THE INNOVATION HUB OF THE GLOBAL RETAIL PROPERTY INDUSTRY! Collaborate with decision makers and find ideas and solutions to optimise the attractiveness and the customer journey of retail destinations.

Over 40 tech providers, startups, and innovative solutions. Palais -1

INNOVATION TALKS & WORKSHOPS

Find them all in the online database

NETWORKING EVENTS

INNOVATION SHOWCASE

MEET THE EXPERTS WHO WILL TAKE PART IN THE INNOVATION FORUM

Abdusalam Al Amri

Stephen Brown

Karen Harris

Tatiana RomÃ£o

Philipp Sepehr

Marketing & Branding Manager

Marketing & Communications Director

Managing Director

Market research Manager

Chief Digital Officer

IntuDigital

Sonae Sierra

ECE Projektmanagement

Arabian Centres

Hammerson

Discover the full Innovation Forum programme on www.mapic.com Sponsor Innovation Forum:

customer experience: MAPIC’S NEW RETAIL MIX

A new retail paradigm Surf’s up: The Citywave concept.

NCE upon a time, life was simple. People went to shops to shop. They went to restaurants to eat. They queued for tickets. They did not have subscriptions for Netflix, Hula or monthly payments for their phone. They did not download or stream anything. They bought cars rather than leasing them and they valued possession over sharing; permanence over temporary. For the last decade — and the past five years in particular — MAPIC has increasingly reflected the blurring of these distinctions, especially as transformation impacts on the relationship between physical space, online, the customer experience and customer behaviour. This year, those changes are reflected as never before, as these many

There is no longer a clear deﬁnition of retail, with stores increasingly appearing in non-traditional environments and customers choosing to spend their money on a diverse range of activities, from a cup of coﬀee to a VR family experience. Mark Faithfull looks at what it means for the retail mix at MAPIC this year elements are brought together as the core themes of the MAPIC experience. Indeed, for retailers, there has arguably never been a more challenging or exciting time. Legacy retailers have borne the worst of the retail revolution. The UK has experienced a series of retail collapses and disastrous overseas investments throughout 2018, from the embarrassing exit of Australian DIY giant Bunnings in the wake of its costly acquisition of Homebase to the Chinese-owned House of Fraser’s collapse.

The US continues to go through the pain of change, with familiar names shutting stores in suburban malls that are struggling to redefine their purpose. Many will not succeed because, unlike Europe, the US is undoubtedly over-retailed. Mainland Europe has been more stable, yet no markets are immune to the ongoing pressures of online competition and the ever-increasing squeeze on consumers’ wallets. At the same time, new names have appeared and become part of the redefinition of retailing over-

MAPIC PREVIEW • 15 • October 2018

night. And an increasing number of pure-play retailers have started to look at physical space, bringing with them new models, perspectives and attitudes that complement the F&B outlets, pop-up stores, leisure offers, new-generation cinemas, wellness facilities and live-entertainment spaces that are now rubbing shoulders with them. And established players are also shaking up the paradigm, such as Starbucks with its stunning new ﬂagship in Milan. At MAPIC, there will be many such examples, including ma-

customer experience: MAPIC’S NEW RETAIL MIX jor projects such as Galataport, a joint venture between two leading Turkish conglomerates, Dogus Group and Bilgili Holding. A major waterfront scheme backed up with €1.5bn of investment, Galataport will open in 2020. Following the privatisation of Istanbul port, the company has been working to enhance the port operations and to redevelop the mixeduse project with new facilities for cruise passengers, a luxury hotel, cafes, restaurants and boutiques. There will also be two contemporary art museums along the 1.2 km promenade, which is currently closed to the public but is to be transformed into a public route. Tophane Public Square is set to be reconfigured as a 30,000 sq m public park along the Bosphorus, while historical buildings within the port area will be restored as part of the project. Hosting the Istanbul Modern museum and Mimar Sinan Fine Arts University Painting and Sculpture Museum, Galataport will become the new arts and design district of the city. Similarly, the next phase of the regeneration of the Glasgow waterfront will include a 350,000 sq ft (32,516 sq m) mixed-use development at Glasgow Harbour, including

Starbucks’ new flagship in Milan

Jason Pullen, Peel Lifestyle Outlets:

“We are creating the next-generation of outlet destinations by delivering a balanced combination of exciting leisure and entertainment with a strong retail offering” the Glasgow Harbour Lifestyle Outlet, which will feature retail space, restaurants and cafes, a waterfront promenade, a new cinema, a gym, family leisure facilities, a public square and an event space. The leisure-led development will add to the west end of Glasgow’s burgeoning waterfront, which already boasts the Glasgow Science Centre and the Riverside Museum.

Jason Pullen, Peel Lifestyle Outlets’ managing director, says: “We are creating the next-generation of outlet destinations by delivering a balanced combination of exciting leisure and entertainment with a strong retail offering. The initial £100m investment represents the next step in fulfilling the Glasgow Harbour masterplan.”

Galataport is set to become the new art and design hub of Istanbul

MAPIC PREVIEW • 16 • October 2018

In addition, Peel Lifestyle Outlets has revealed plans to transform the Lowry Outlet in Salford into a vibrant waterside destination. The Watergardens dining concept has been designed by architect Chapman Taylor to maximise the waterfront location with a variety of new restaurants, plus a new waterfront promenade. Peel Lifestyle Outlets has already invested millions in the scheme, and a further £26m investment is planned. Leisure is intrinsic to so many projects, whether as an embedded element or as a standalone component, with technology an increasingly crucial part of the customer experience. Falcon Malls is progressing two major projects. Cascina Merlata is a large-sized retail real estate scheme to be built next to the Expo Milan 2015 site. With 192 shops, a GLA of approximately 65,000 sq m and more than 10 million visitors expected annually, the Falcon Malls shopping centre is part of a wider urban redevelopment plan for the 900,000 sq m area in the Cascina Merlata district, located in the north-west of Milan. The primary catchment area will include more than 20,000 residents, with further growth when the entire Cascina Merlata

036_THOR_PV_PIC

VISIT US AT MAPIC/ STAND P-1.K2

NEW YORK

PARIS

REAL ESTATE LEADER ALONG LUXURY RETAIL CORRIDORS IN GLOBAL GATEWAY CITIES ACROSS EUROPE, LATIN AMERICA, AND NORTH AMERICA

MEXICO CITY

www.thorequities.com OFFICES

MILAN

NEW YORK THOR CORPORATE HEADQUARTERS 25 W. 39TH STREET, NEW YORK, NY 10018 +1 212 529 5055 LONDON 9-10 SAVILE ROW, MAYFAIR LONDON W1S 3PF, UNITED KINGDOM +44 207 321 6360 PARIS 10 PLACE VENDÈ&#x17D;ME 75001 PARIS, FRANCE +33 1 53 45 54 48 MEXICO CITY REFORMA 2620 P16, MEXICO, DIF 11950, MEXICO +5255 4170 1400

VISIT US AT MAPIC/ STAND P-1.K2

LONDON

MADRID

customer experience: MAPIC’S NEW RETAIL MIX residential project is completed. It will also be linked by a pedestrian bridge to the Human Technopole, a science and technology park. Cascina Merlata will split into two: the west wing and the promenade will house the main retail and food offer, while the east wing will focus on leisure and entertainment activities, the cinema, the food court and a supermarket. Meanwhile, Milanosesto is the largest post-industrial redevelopment project currently in progress in Europe. Milan’s former Falck area is being completely redesigned as a new city. Falcon Malls will build a mall, leisure and entertainment area and a mixed residential/retail area with a total GLA of 131,320 sq m. Falcon Mall intends to bring an innovative gastronomic offer to Italy based on smart food and signature chefs. Belgian-based KCC developed the concept for the 34,000 sq m

Glasgow Harbour will feature retail, F&B, a promenade, cinema, gym, family leisure, a public square and event space.

Indoor Theme Park in Wanda Nanjing Mall in Nanjing China. “We needed to dive into the rich history of Nanjing and combine this with our experience and

GLOBAL RETAIL PARTNER SUMMIT THE SECOND edition of the Global Retail Partner Summit, which takes place on November 14, will include an opening keynote and two matchmaking sessions. The keynote will help retailers to rethink their global strategies by delivering insights into emerging markets and the opportunities they present. The matchmaking sessions will bring together premium franchise partners from the Middle East, Asia, Eastern Europe and Africa with global retailers from Europe and North America. The summit’s objective is to help retailers build a solid infrastructure for

expansion by connecting them with the right partners. The invitation-only event, held in partnership with Franchise Expo, is sponsored by Brown Rudnick and Retail & Leisure International is the summit media partner. Among the 160 selected participants, the event will be attended by master franchisers Amrest, Inventive Retail Group, Groupe Ghanty, Rosinter and Alothaim among others. Retailers will include Easy Franchise Restaurant, Morganti Tornatore Caffe Bar, TM Lewin, Camaieu International, Easybeer, Icicle, Comma, Daiso Industries, C House Cafe and Toridoll.

Reinhart Viane, KCC:

“We dived into the rich history of Nanjing and combined this with our experience and knowledge of theme parks to make a perfect marriage between both”

Milanosesto is the largest European post-industrial redevelopment project in progress.

MAPIC PREVIEW • 18 • October 2018

customer experience: MAPIC’S NEW RETAIL MIX knowledge of theme parks to make a perfect marriage between both,” says KCC business development director Reinhart Viane. KCC was also responsible for the concept, schematic and detailed design of the 25,000 sq m Indoor Theme Park in Wanda’s Qingdao Mall. Again, the integration of local cultural elements, such as the German history reﬂected in the entrance village, was crucial, with theme park attractions integrated in a natural environment. But leisure comes in all sizes and doesn’t need to be big to make a splash. Citywave is a next generation wave pool that makes surfing available to everyone, everywhere. This surf machine is installed as a fixed unit for either outdoor or indoor surfing and can be integrated within shopping malls, water and amusement parks, hotel complexes or work as a stand-alone facility to enrich the recreation at any location. The compact footprint of the installation (14m x 20m up to 20m x 30m) allows the set-up of Citywave even if space is limited.

KCC developed the concept for the 34,000 sq m Indoor Theme Park in Wanda Nanjing Mall.

Russian-based Arena Space will be at MAPIC showcasing a new generation of virtual reality (VR) attractions to people and businesses, operating VR parks and locations in shopping malls,

WeArena is a concept dedicated to esports.

says the company. Arena Space operates parks in Moscow, Saint Petersburg, Sochi, Ufa and in Kazakhstan, offering more than 25 types of attractions and more than 100 pieces of content. The company is located in a number of Mega centres operated by Ingka Centres. The company works through partnership programmes and franchising and is actively looking for opportunities for expansion in Europe, the US and Asia. Meanwhile, Gian Gherardo Aprile, CEO of WeArena, will host a pitching session at MAPIC entitled From Esports To Mixed-Reality Museums: Retailtainment Made Easy In Your Venue. He will talk about the retail market and the emerging technologies that, combined, are shaping a new way of “doing entertainment”, he says. Italian-based WeArena is the first network of digital theme parks dedicated to esports, VR and AR games,

MAPIC PREVIEW • 19 • October 2018

as well as music, edutainment and events. Its goal is to make the gaming experience a social and educational event. WeArena opened its first venue in December 2017 in Gorizia, Italy, home to the world’s first permanent gaming arena with 70plus gaming stations, and more than 200 experience, ﬂight and pro-racing simulators. By the end of 2018, the edutainment and live area will be open, with 1,500 sq m dedicated to gaming and learning activities for families and children, workshops, digital-art exhibitions and live events. WeArena aims to launch five venues in Italy by the end of 2019 and says it is looking for at least seven international partners to help it expand its network in Europe and globally.

CONFERENCES & EVENTS AT MAPIC MAPIC GLOBAL RETAIL PARTNER SUMMIT (By invitation only) Wednesday 14 November - 16.30-18.30 Verrière Grand Auditorium - Palais 1

049_RM OUTLET_PV_PIC

OUTLET SUMMIT 2nd edition 13 November 2018, 2pm-6pm

Join 150+ international outlet industry leaders & retailers for an intensive afternoon programme of conferences, networking & project showcases.

Transforming Reality Physical in the age of digital

Last seats available*: Emilie.felix@reedmidem.com

*MAPIC Badge mandatory to access the event

Official Sponsors & Partners

European Factory Outlet Centres Observatory

customer experience: MAPIC’S NEW RETAIL MIX

Outlet Summit

focuses on opportunities The 2018 Outlet Summit, which takes place on November 13, will bring together around 150 top professionals from a sector that is rapidly proving itself to be a valuable part of the retail mix. Mark Faithfull reports

N NOVEMBER 13 — the afternoon before MAPIC officially opens — the curtain goes up on the second Outlet Summit, which will include an opening keynote on the impact of new customer behaviours on the outlet industry. Two high-profile panel sessions will present a market overview and a round-up of the latest trends, followed by an interactive pitching session showcasing a selection of innovative outlet projects and top retail concepts. “Outlets are an excellent retail channel for brands,” says Brendon O’Reilly, managing director of Fashion House Group. “The number of new tenants opening stores is constantly increasing. But there are still some fantastic brands that are not entirely convinced of the outlet concept so, as an indus-

try, we have to share our knowledge and ideas with the market as widely as possible. The Outlet Summit creates a great opportunity for us to do that.” Lisa Wagner, principal at USbased TORG (The Outlet Resource Group), adds: “The outlet industry has matured in the US and become a vital and extremely profitable channel for brands and retailers. The industry has begun to mature in Europe, to the extent that consumers in the markets in which centres are located have become familiar with the segment and accept outlets as a regular part of their shopping pattern.” Wagner notes that the industry originated in the US as a means of solving the problem of overstock. It also began in an era when department stores and other wholesale accounts still retained a great deal of

Fashion House, Moscow.

power. The centres were largely located in tourism areas and well outside of the metropolitan markets. That location strategy has changed, Wagner adds, with outlet centres now moving closer to population centres. However, the sector’s success has brought more challengers. Outlets’ strong performance has rapidly increased competition, with a 6% growth in outlet space per year over the last three years. Currently, Europe hosts close to 200 outlet centres and a mix of top brands —the core of the outlet concept — is no longer enough to attract consumers, says Sebastian Sommer, marketing and retail director, Europe, at Neinver. “While the commercial mix remains crucial, outlet centres are adding

more leisure options, dedicating more space to food, and incorporating additional common areas and value-added services.” Sommer believes new technologies, such as geolocation systems and omnichannel strategies, will help operators to evolve from a traditional management model to an insight-driven model. Organised in partnership with Magdus, the Outlet Summit’s sponsors include ART Software Group, Coniq, Fashion House Group, Neinver, Resolution Property, Scalo Milano and The Outlet Resource Group.

CONFERENCES & EVENTS AT MAPIC MAPIC OUTLET SUMMIT (By invitation only) Tuesday 13 November - 14.00-18.00 Verrière Grand Auditorium - Palais 1

Lisa Wagner, TORG: “The outlet industry

has matured in the US and become a vital and extremely proﬁtable channel for brands and retailers”

Neinver predicts that new technology will help outlets evolve.

MAPIC PREVIEW • 21 • October 2018

045_RM LEISURE PRG_PV_PIC

JOIN THE LEISURE REVOLUTION AT MAPIC! Find them all in the online database

Looking for leisure solutions to improve your customers’ shopping experience? Get inspired by innovative concepts and learn from the international entertainment experts.

EXHIBITION ZONE

Palais -1

Discover entertaining concepts to increase footfall and dwell time at the Leisure Zone • Attraction, family entertainment and playgrounds • Pop ups & live experiences • Wellness, beauty & fitness (new)

TALKS, PANELS & WORKSHOPS Listen to leisure experts sharing insights about the biggest challenges for retail destinations and leisure operators during pitching sessions and conferences. Check out the conference programme.

LEISURE SUMMIT Get insights on financing and operating issues related to leisure in retail spaces during these 4 hours seminar. • Valuable insights from leisure experts • Case studies and best-practices related to financing, security, IP, etc.

Leisure Zone and Conference Room 1, Palais -1 Wednesday 14 & Thursday 15 Nov.

Leisure Workshops Content Partner

Palais des Festivals (by invitation only) Tuesday 13 Nov. MAPIC Leisure Summit Sponsors

customer experience: MAPIC’S NEW RETAIL MIX

The business of pleasure at ﬁrst Leisure Summit

HE INAUGURAL Leisure Summit, which takes place on November 13, will start with a keynote address by Matteo Perino, chief operations officer of EuropaCity. This will be followed by two sessions on innovation in entertainment, featuring a mix of developers, leisure providers and technology companies. A showcase of international projects and a session on the use of leisure to drive footfall will complete the afternoon. One of the largest examples of a leisure-based project is EuropaCity, a new district on the outskirts of Paris designed to reﬂect the evolution of lifestyles in the digital age. Conceived as Europe’s biggest leisure, culture,

retail and entertainment village, the 32 ha scheme will include hotels, restaurants, shopping centres and concert halls, as well as parks, night clubs and bars. EuropaCity is being built in Gonesse, which is situated 16 km northeast of Paris, between Le Bourget and Charles de Gaulle airports. Initiated and backed by Auchan, it is being supported by Ceetrus and the CCI Paris Ilede-France. China’s Dalian Wanda Group confirmed a €3bn investment in the project in 2017. Construction will begin in 2019 for completion in 2024. “Leisure is obviously very important,” says Yago Bonastre, EuropaCity’s project leasing manager. “But what is leisure today? It could be taking a ride on

In recognition of entertainment’s growing role within the retail mix, MAPIC is hosting its first Leisure Summit at this year’s event. Top industry names will examine the impact on retail of the entertainment revolution, and offer insights into the key financing and operating issues. Mark Faithfull reports a themed attraction, swimming on a toboggan, visiting an expo, listening to a concert, having fun while shopping with friends or having a drink. At the end of the day, everything is leisure.” Bonastre adds: “As a global mixed-use development — less than one third of the gross space is dedicated to retail — EuropaCity will be a new destination of experiences where leisure will be everywhere. That is the DNA of EuropaCity. It will really be a next-level experience compared to what exists today.” Virtual reality (VR), meanwhile, is increasingly creeping into family-entertainment centres, retail and theme-park environments. “Immersive content tricks the mind, which reacts as in real life,” says Elisha Karmitz, CEO at mk2 VR. “This happens if our senses are triggered with the right input, so premium content is key to making you think that what you see is really happening. In our mk2 VR centre in Paris, you would be amazed to see how people react physically to what they experience via the VR headsets.” He adds that next-generation haptic technology, which gives the physi-

cal impression of movement, will increase this immersive feeling. “Obviously, interactive contents and gaming have reached a new dimension with VR, but the line between interactive experiences and the cinematic experience is becoming thinner,” Karmitz adds. “More and more cinematic experiences ask the user to interact with the story, with their actions having an impact on the ending.” Mk2 VR’s plug-and-play VR Pod, an advanced system for presenting VR experiences to the masses, will be on show at the Opening Party. To date, the VR Pod has been installed at Nordisk Film cinemas in Copenhagen and Oslo, Arvore in Sao Paolo, the BnF library in Paris, Mediacom in Zagreb and the Film Fund Luxembourg. The MAPIC leisure summit sponsors are Arena Space, EuropaCity, Funtopia, IMAX, Mycotoo and WeArena.

CONFERENCES & EVENTS AT MAPIC MAPIC LEISURE SUMMIT (By invitation only) Tuesday 13 November - 14.00-18.00 Salon Croisette - Palais 3

Yago Bonastre, EuropaCity: “EuropaCity will

EuropaCity will be a new leisure district on the outskirts of Paris.

be a new destination of experiences where leisure will be everywhere. It will really be a next-level experience compared to what exists today”

MAPIC PREVIEW • 23 • October 2018

040_ALLIAGES_PV_PIC_page1_dos carré collé

040_ALLI

E UERUORPOAPCAICTIYT Y

040_ALLIAGES_PV_PIC_page2_dos carré collé

E UERUORPOAPCAICTIYT Y

The Theultimate ultimateurban urbangetaway getaway leisure • culture • sports • food • shopping 8 groundbreaking 8 groundbreaking projects projects that will thatbe will be part part of Bjarke of Bjarke Ingels’ Ingels’ master master plan plan The newThe master new master plan, developed plan, developed under the under aegis theofaegis Bjarke of Bjarke Ingels, has Ingels, methas stakeholders’ met stakeholders’ expectations expectations with a more with open, a more open, urban project urban project that boasts that boasts solid links solid with links thewith surrounding the surrounding district.district. The project’s The project’s intention intention to emphasise to emphasise architectural architectural diversitydiversity expressed expressed itself through itself through an on-invitation an on-invitation architectural architectural competition competition that included that included a selection a selection of someof thirty some agencies thirty agencies comprising comprising a majority a majority of French of architects French architects as well as as internawell as international firms, tional big firms, starsbig and stars emerging and emerging young talents. young talents. EuropaCity EuropaCity chief executive chief executive officer Benoit officerChang Benoit explains: Chang explains:

“It’s the“It’s biggest the biggest private-initiative private-initiative architectural architectural competition competition ever launched ever launched in France. in France. We really Wewanted really wanted to explore to explore and and discoverdiscover 30 different 30 different ways ofways conceptualising of conceptualising and imagining and imagining EuropaCity”. EuropaCity”.

The competition The competition spanned spanned a 6-month a 6-month period and period was and was paced paced by several by several discussion discussion workshops workshops promoting promoting competitive competitive dialogue dialogue with the with teams the to teams achieve to achieve the the ambitious ambitious objectives objectives set for set EuropaCity: for EuropaCity: innovation, innovation, sustainable sustainable development, development, architectural architectural quality quality and and diversity,diversity, and creative and creative excellence. excellence. “EuropaCity “EuropaCity is proudisofproud theseof projects these projects and is delighted and is delighted to to pursue pursue co-construction co-construction with these with agencies. these agencies. They will They will contribute contribute with their with talents, their talents, viewpoints, viewpoints, creativecreative abilitiesabilities and innovative and innovative spirit tospirit this to pioneer this pioneer project project aimed at aimed at bringingbringing unique unique new leisure new venues leisure venues to Greater to Greater Paris”, Paris”, Benoît Chang. Benoît Chang.

by Ceetrus by Ceetrus and Wanda and Wanda Group Group

www.europacity.com www.europacity.com

R E Q U IR E D

A A A

023_FIVE GUYS_PV_PIC

S IT E S

Five Guys JV is the fastest growing restaurant concept across Europe and we are expecting record volumes of sales in our restaurants. We are looking for more prime AAA sites in the top High Streets and Shopping Centres across UK, Spain, France, Portugal and Germany. The target is to open at least 100 new restaurants (250 to 400 sq m) during 2019/20 in prime retail / gastronomy locations with high footfall and high visibility.

Richard Collier Property Director E: richard.collier@fiveguys.co.uk M: +44 7827 445 404

Neville Maling Head of Property UK/Spain E: neville.maling@fiveguys.co.uk M: +44 7855 275 672

Daniel Sprenger Head of Property Germany E: daniel.sprenger@fiveguys.de M: +49 1741 458 190

Philippe CĂŠbral Head of Property France E: philippe.cebral@fiveguys.fr M: +33 763 267 662

Ignacio GalĂ Head of Property Spain E: ignacio.gali@fiveguys.es M: +34 678 010 682

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

MAPIC AROUND THE WORLD: MAPIC FOOD & BEVERAGE

MAPIC puts F&B on the global menu MAPIC served up another new event in 2018 in the shape of MAPIC Food & Beverage in Milan. More than 2,000 participants from 50 countries were drawn to the inaugural event, which co-located with MAPIC Italy, as MAPIC continues to innovate, says Mark Faithfull

Networking and tasting were high on the agenda!

FTER establishing events in Milan, Moscow, Shanghai and Mumbai in recent years, MAPIC brought international exhibitors and visitors its latest event, MAPIC Food & Beverage (F&B), in Milan this May. This launch event brought together international investors, developers, retailers and food operators over two packed days and reﬂected the growing evolution and inﬂuence of F&B within MAPIC’s portfolio of events. As at MAPIC Cannes, MAPIC Food & Beverage is an international platform allowing F&B retailers to showcase their concepts as exhibitors to real estate professionals who are attending as visitors. In its first year, MAPIC Food & Beverage sold out its exhibition space. Among the international companies in town to showcase their F&B concepts were Delifrance, Foodation, Rinaldini Pastry, Caffe Napoli, Dante’s, Wok to Walk and Nordsee. Visiting F&B brands included Jamie Oliver Group, Cafe Rouge, Five Guys, Starbucks and KFC, as well as some of the world’s leading landlords and investors, among

THE RISE OF THE FOOD EMPORIUM IN A DEBATE about the rise of food halls at MAPIC Food & Beverage, Jonathan Downey, co-founder of London Union, said the key is to find unusual venues, take short leases — and then “do something interesting in a short period of time”. He added: “The most important part of our business is to find, mentor and help new talent. I predict that, in London, a number of the new food halls will not be that good, because there aren’t

that many good businesses out there. There are bandwagon operators and I don’t think the poorer ones will succeed. But the best will rise to the top.” Meanwhile, Time Out, the city travel and entertainment publisher, intends to follow-up on its first venture into F&B. In 2014, it turned an historical market hall in Lisbon into a food and cultural market. The Time Out Market has since become the Portuguese ca-

pital’s most popular tourist destination. Plans are now in place for similar ventures in Miami, New York, Boston, Chicago and Porto. Didier Souillat, CEO of Time Out Market, said curation is key: “A market needs to be where people live, work and tourists go. Finding sites is very diﬃcult. We need to find improving locations that we can afford now but that, in two or three years’ time, we won’t be able to afford.” He added: “We need foo-

MAPIC PREVIEW • 27 • October 2018

die cities and, ideally, cities where our publication is strong too. Time Out has to be in the DNA of the city, which means we will not be opening everywhere.” Souillat believes the operational relationship is changing, as landlords “take time to see what we do”. He added: “You need to have the ﬂexibility to change. We have one-year leases, which enables us to bring in the new kids on the block. But you have to spend the capex.”

MAPIC AROUND THE WORLD: MAPIC FOOD & BEVERAGE them Union Investment, Unibail-Rodamco-Westfield, intu, United Developers/Place Vendome, Iran Mall, Allied

Investments and Housing, CP Group, Capitaland, Capital Holdings and Inmuebles Panamericana.

Attendees were able to meet new operators and sample food.

Rethinking F&B at a Milan panel session

KEY FIGURES

MAPIC Food & Beverage: 400 foodservice retailers and 200 buyer companies (travel operators, master franchisers, property players) from 50 countries

MAPIC: TALKING F&B Jonathan Doughty, head of food services, ECE: “We need to be asking questions that we never had to ask before. We have to be better. In the next three to five years, there needs to be a massive change between property and F&B. At the moment, operators are a partner until the lease is signed, then tenant. The real estate we have built was for yesterday — is it the F&B experience people are looking for?” Sam Sethi, principal & director, Inside Food: “Landlords in Asia, the Middle East and South Africa will build around food. US clients are much more defensive. They won’t take risks and replicate what has happened over the last 10 years. Most developers don’t understand how to leverage experience. The reality is that F&B operates under nine or 10 different categories, each with a different benchmark, revenue and experience. So do we get provocative and build a food concept and then build retail around it? We need to re-appraise the value of assets and put more money into attracting the right tenants.”

Simon Stenning, executive director, MCA Insight: “My advice: use data and insight. We would encourage anyone to use a fact base, not just gut feeling. Foodservice is increasing as a percentage of retail. Now, eating out in retail centres is a fifth of all sales, even though shopping is in decline. Constriction of demand will pick back up and F&B will only increase as a percentage. Delivery is a significant driver of revenue and declining margins. Operators are looking very carefully, as delivery has also taken away from grocery.” Francesco De Mojana, partner, Permira: “In terms of financing an F&B operator, we ask what’s going to put wind in the sails, then the ability to execute. Fast-casual is showing strong growth and, if you have a payback of less than two and a half years, then that’s a strong position. But you need strong management structures, so we need to ensure the company is at the right level. It’s not easy but, if you can find an offer that can expand internationally, you have found a jewel.”

The International Retail Food & Beverage market The 2019 edition of MAPIC Food & Beverage will take place on 8-9 May 2019 during Milano Food City. Milano Food City will see food exhibitions, street food happenings and events, cooking demonstrations and tasting sessions with some of the most recognised international chefs in some of the most iconic places in the city

MAPIC PREVIEW • 28 • October 2018

MAPIC AROUND THE WORLD: MAPIC ITALY

MAPIC Italy reﬂects retail renaissance The third edition of MAPIC Italy saw the event move to a new, larger venue in Milan as 2,000 national and international players gathered to learn and network, says Mark Faithfull

he third edition of MAPIC Italy relocated to a new, larger venue — MiCo Milano Congressi — running alongside MAPIC Food & Beverage and once again MAPIC Italy proved to be a winning formula. The ex-

panded exhibition area housed 50 stands and more than 480 national and international retailers, representing a multitude of brands. Alongside the exhibition a full conference programme ran at MAPIC Italy, including The Next Miles Of The Italian Re-

Opportunity Italy: The country is enjoying an inﬂux of new retail formats

MILAN: TALKING RETAIL Herve Montaner, expansion director, Sephora: “LVMH has been in Italy for 20 years, with 130 stores, half in cities, half in malls. In each city, we have local competitors, so we need to believe the market is large enough, with big enough stores. We require a minimum of 300 sq m and want to play with this scale. This is important for brand awareness. We have plans for about 160 stores in Italy. The only rule is to be where the customers are. It can be hard and expensive to find 300 sq m in historical centres. For

malls, the site has to be in a modern centre. The quality of the mall and the location inside are much more important than the financials.” Alain Houli, Italy manager, Habitat: “Italy is very attractive and our new CityLife store is a re-entry into the market. We will focus on shopping centres and smaller shops within cities. We have just arrived, so we are developing to create what we want to achieve. Habitat requires a minimum 700-800 sq m, which is already a downsized

format [previously 2,000 sq m]. E-commerce is very important for us, accounting for 10% of sales. Where we have e-commerce, we record double-digit sales growth in our stores. They support each other.” Francesco Zhou, general manager, Mi Store Italia: “We are young and want to offer innovative products. We have over 1,000 stores worldwide. We are one of the few cases of an online company that has been successful oﬄine. Our strategy is to open in malls, because

MAPIC PREVIEW • 29 • October 2018

the model is working in other countries. In Italy, we are aiming for 30 to 40 stores, with the first 10 in the best malls, if possible. We are looking at 200-300 sq m for stores.” Roberto Bonati, Bonati & Partners/Tally Weijl: “Milan and Rome can make it seem like retail only happens in these two cities. Rents are skyrocketing. Provincial towns, if you’re careful, can be strong, but you have to be an expert on location, developments and malls. That way you can balance with Milan and Rome as showcases.”

MAPIC AROUND THE WORLD: MAPIC ITALY tail Real Estate session, hosted by the Italian National Council of Shopping Centres (CNCC). This provided delegates with a snapshot of the Italian market and delegates learned that according to JLL figures, some €780m has been invested in the country’s shopping-centre sector since the beginning of the year — more than twice as much as in the same period of 2017. Italy currently has a development pipeline of 43 projects, 16 of which will be completed by the end of 2021. Massimo Moretti, president of the CNCC, said: “Today, Italy’s shopping-centre sector is a mature product, requiring different responses from the past. The numbers speak of a solid market that is not afraid of the threat of online and is increasingly oriented towards multichannel.” He added that Italian shopping centres are increasingly becoming entertainment destinations and social centres.

A packed conference schedule outlined the upward dynamics of the Italian retail sector.

CONFERENCES & EVENTS AT MAPIC

KEY FIGURES

The third edition of MAPIC Italy:

DESTINATION: ITALY Thursday 15 November - 17.30-19.00 Conference Room 2 - Palais -1

Massimo Moretti, CNCC:

“The numbers speak of a solid Italian market that is not afraid of the threat of online and is increasingly oriented towards multi-channel

2,000 participants from 50 countries and 480+ retailers

The deal-making event to explore retail real estate opportunities and develop your activity in Italy

Top retailers outlined their plans for Italy.

The 2019 edition of MAPIC Italy will be held on 8-9 May in Milan in collocation with MAPIC Food & Beverage. MAPIC PREVIEW • 30 • October 2018

015_LOCATE_PV_PIC

ET US COME&MEPIC AT MA

RIVIERFA27 7 STAND

SCALO MILANO THE ONLY OUTLET 15 MINUTES FROM MILAN DOWNTOWN. SCALO MILANO OUTLET & MORE COMPRISES OF 130 BRANDS AT 30%-70% OFF ALL YEAR ROUND AND THE LATEST COLLECTIONS. The only outlet with the first design district in Europe at outlet prices. Scalo Milano presents an all-encompassing offer of the highest quality featuring the big names in furnishing and lifestyle in Italy as well as fashion and food district.

Phase I:

130 BRANDS AND 31.000 GLA. OPENED 2016.

Discover more on SCALOMILANO.IT

Phase II:

25 NEW STORES AND 4.000 GLA. OPENING EARLY 2019.

MAPIC AROUND THE WORLD: MAPIC RUSSIA

MAPIC makes a new name for itself in Russia The rebranded MAPIC Russia, which took place at Moscow’s Expocentre in April, saw shopping venues from across Russia showcase their products to more than 5,300 participants from 34 countries. Mark Faithfull reports

HIS YEAR, the largest retail real estate event in Russia changed its name from Rex to MAPIC Russia, following its acquisition by Reed Exhibitions in 2016. Among the key developers at the show were ADG Group, DARS Development, Dream Island, ECE Russland, Garant-Invest, IKEA Centres Russia, Ceetrus, Malishev Society 73, Malltech, Manhattan Real Estate Management, Salaris Mall, SRV and Tashir Group. International participants presented their venues, products and services from nine countries. Among those present were Beverly Hills Polo Club, Exquance Software, Fashion House Group, Galleria Tbilisi, KCC, Loyaltech, Multidekor, Oncuoglu + ACP, Ormerod Sutton Architects, Qube, Vitra and Walltopia. More than 40% of exhibitors — 54 companies — were participating in the event for the first time. Newcomers included Fortgroup, Hines, Instore Kids Corners, NBCom Group, SOS Dekorace and Virgin Connect. In all 31% of visitors were retailers, including Adidas, Benetton, Burger King, Calzedonia, Chanel, Delifrance, Etam, FIBA Retail Group, Guess, Guinot, Hidesign, H&M, ID Group, Inditex, L’Oreal, Lush, McDonald’s,

MAPIC Russia attracted record numbers to the exhibition, conferences and awards.

The 2019 edition of MAPIC Russia will take place in Moscow, April 16-18 Metro Cash & Carry, Montblanc, Nestle, OBI, OVS, Rosinter Restaurants, Samsung Electronics, Sephora, Unilever, Uniqlo, X5 Retail Group and Xiaomi. Running alongside MAPIC Russia was a retail real estate conference, which gathered together the top names in Russian retail to share insights and experience. Over 10 sessions, 50-plus industry experts discussed retail property trends, new retail formats, and suc-

cessful strategies for expansion in the Russian market. In addition, marketing communication agency Promotion Realty and Reed Exhibitions hosted a practical conference entitled PRO Marketing Day. During eight sessions, participants examined best-case studies, the use of wi-fi analytics to increase marketing efficiency, cost-effective methods of improving the atmosphere of shopping centres, the principles of costing in new

MAPIC PREVIEW • 32 • October 2018

MAPIC RUSSIA 2018 IN NUMBERS • 120 exhibitors from nine countries • 54 new company participants • 5,330 visitors • 1,600-plus retailers and 900-plus developers • Participants from 34 countries (10 more than in 2017) • Shopping centres from every Russian region • Three days of targeted business events, including the Retail Real Estate Conference programme and PRO Marketing Day • 119 local and international speakers • 247 delegates (up 73% on 2017) and 53 speakers took part in the Retail Real Estate Conference

venues, marketing budgets and ways to evaluate effectiveness. Also on the agenda were three partner events hosted by Dream Island, which shared details of the construction of the largest theme parks in Europe and Asia; O’Key, which unveiled its hypermarket development, marketing and new format plans; and Knight Frank, which presented valuable insights into Moscow’s retail real estate market. An international retailers tour saw representatives from 14 companies meet with the largest local developers and shopping-centres owners. The group visited four Moscow malls: Riviera, Columbus, Kashirskaya Plaza and Vegas.

CONFERENCES & EVENTS AT MAPIC DESTINATION: RUSSIA Wednesday 14 November - 09.00-10.00 Conference Room 2 - Palais -1

044_RM FIRST TIMERS_PV_PIC

IS IT YOUR 1 MAPIC? st

Here is a check list to help you prepare and make the most of your first MAPIC! 2nd - Get ready with the App

1st - Book your meetings Log into the Online Database √ Create your profile √ Browse participants and start to network √ Fill in the matchmaking form to receive business recommendations √

Download the Mobile App (get your e-ticket, receive reminders, find your way...) √ Check the full conference & events programme √ Find more tips on www.mapic.com √

ONSITE: A VIP EXPERIENCE JUST FOR YOU

DISCOVERY & THEMATIC TOURS

WELCOME DESK

HAPPY BREAKFAST

TRAINED STAFF

(Exhibition area, Innovation Forum, Leisure Zone.

Where? MAPIC Stand Palais-1

Join the Happy breakfast on Wednesday 14 Nov.

At the 1st timers Welcome desk, a trained staff will welcome you and answer all your questions.

Stay up to date and join the conversation on social media! Follow MAPIC

030_RE360_PV_PIC

DECEMBER 4-5

Four Seasons Hotel İstanbul Bosphorus, Turkey

671 PARTICIPANTS • 221 LEADERS OF REAL ESTATE SECTOR • 209 SUPPLIERS • 93 PUBLIC REPRESENTATIVES • 29 ACADEMIES & ASSOCIATIONS • 43 FINANCIAL CORPORATIONS • 76 MEDIA REPRESENTATIVES

We proudly announce that the world’s leading property market is strategic partner of Some of our speakers

Kumsal Bayazıt

Hui Min Chan

ent, Europe, Regional Presid ns Reed Exhibitio

Jeremy Kelly

earch JLL, Global Res Director

DP Architects, ember of ULI Director of DPA, M

İbrahim İbrahim

Professor Dr. ş Özgür Demirta

Portland or Managing Direct

See You at RE360

Finance Chair Professor of rsity at Sabanci Unive

STRATEGIC PARTNER

MAIN SPONSOR

KEYNOTE SPONSOR

LANYARD SPONSOR

RESEARCH SPONSOR

For detailed information and sponsorship Merve Arslan • merve@alkas.com.tr • Tel: 0212 284 86 50

SPONSOR

VENUE SPONSOR

MEDIA SPONSORS

SOCIAL MEDIA AGENCY

re360.com.tr

MAPIC AROUND THE WORLD: LONDON ROADSHOW

London calling: food and innovation Unplugged networking events took the MAPIC roadshow to London twice this year to unpack the latest news, views and insights from the UK retail and F&B sectors. Mark Faithfull reports on the discussions and debate

HE CHANGING face of F&B and the rise of authentic, independent chains were two of the key topics at a breakfast briefing in London in March, during which James Hacon, managing director of Think Hospitality, examined “the trend towards brand inversion” that is spawning a proliferation of mini sub-brands. “There has been a focus on consistency over individuality,” he said. “But now, many smaller brands have achieved consistency while retaining individuality.” This would be reﬂected in a definite split between “food for fuel and food for experience”, Hacon added. Eric Partaker, co-founder and CEO of Mexican chain Chilango, focused on the increasing importance of food delivery. He said Chilango had maintained its profit margins by optimising its relationship with

delivery services. Depending on the site, delivery now accounted for up to 35% of Chilango’s sales. “Although there is some cannibalisation, mostly it’s extending the radius of our customer base,” he added. “One of the biggest logistical issues has been how to organise the kitchen around delivery and in-restaurant dining, and how the space is divided for pick-up riders coming in.” Hacon added that a number of F&B operators were now looking at separate entrances for pick-ups and dining, as consumers became “channel agnostic” about how they order and eat. Innovation, the current plight of the UK retailer market, ﬂexible leasing and technology were all on the agenda at a MAPIC Meet-Up in London last July, which was held in Hammerson’s headquarters. In the age of digital, much has been made of developer ‘labs’, set up to drive retail innovation.

James Hacon, Think Hospitality:

“There has been a focus on consistency over individuality. But now, many smaller brands have achieved consistency while retaining individuality”

F&B brieﬁng: James Hacon (left) and Eric Partaker talked F&B evolution

Karen Harris, managing director of intuDigital at UK/Spanish landlord intu Properties, said that intu’s innovation arm — which has retained its own identity — focuses on delivering ideas quickly and on pragmatic budgets. New concepts are tested live, enabling Harris’ team to ascertain what’s successful, what’s not and which products or services should be refined and retrialled. “That speed of process and delivery involves collaboration across teams and has really helped deliver a culture shift within the business as a whole,” Harris added.

MAPIC PREVIEW • 35 • October 2018

In terms of determining investment, Sophie Ross, integration director at UK REIT Hammerson, said the company starts by identifying customer needs and wants, and then searches for the technology and potential partners to implement them. Despite some initial resistance to rolling out concepts in a relatively untried state, she said this approach is now well established and accepted.

CONFERENCES & EVENTS AT MAPIC F&B RETAIL MARKET: OVERVIEW & UPCOMING TRENDS (By invitation only) Wednesday 14 November - 18.30-20.00 Salon La Côte - Carlton Hotel

MAPIC AROUND THE WORLD: INDIA

MAPIC India highlights small-town opportunities Both physical and online retail are set for growth in India. But those attending MAPIC India were advised that retailers need to target expansion outside the country’s metropolitan centres, writes Nupur Chakraborty

NDIA’s evolution as a digital economy, plus millennial purchase behaviours, are hastening consolidation in the Indian retail real estate sector. Given the popularity of online shopping, especially among India’s vast millennial population — 70% of the country’s citizens are under the age of 40 — shopping centres are increasingly recalibrating their tenant mixes in favour of food and beverage (F&B), and entertainment. These were among the many insights to emerge from MAPIC India, which was held at the Renaissance Mumbai in early September. Three parallel conference tracks — Retail 2.0, Retail Real Estate and Retail Technology — explored each of the verticals through a series of panel discussions and keynotes. “The Indian consumer of today

is constantly looking for experiential shopping,” said Ramesh Nair, CEO and country head of JLL India. “Mall developers have also taken cognisance of this and are continuously working towards adding experiential value to every touch point in the shopper journey.” Ashutosh Limaye, director and head of consulting services at Anarock Property Consultants, added: “With the advent of online shopping, F&B and entertainment now account for up to 40% for mall space, compared to 15%-17% a few years ago.” India’s current mall space stock of 77 million sq ft (7.2 million sq m) is expected to rise to 100 million sq ft in ﬁve years’ time, the growth largely driven by rationalisation. Superior quality malls are expected to account for 64% of the total supply by

MAPIC India took place in Mumbai in September.

2018-2022, compared with 46% in 2008-2012. Concurrent stories of change are characterising Indian retail in the digital age. The rise of banking digitisation and smartphone penetration — expected to rise from 299 million users in 2017 to 442 million by 2022 — are directly inﬂuencing Indian retail, as the vast majority of traditional cash-only retailers switch to digital payments to retain customers. Large retailers such as Big Bazaar, McDonald’s, Benetton and Max are countering the e-commerce challenge with experiential store formats Big Bazaar Gen Nxt, McDonald’s McCafe and Max Millennial, respectively. Many experts, however, believe that physical stores will continue to dominate India’s retail eco-system. “By 2020, mobile commerce will drive the majority of all sales, but 90%-plus of these will still occur in stores,” said Prateek Sinha, industry manager of retail and e-commerce at Facebook India. Presenting the big-picture outlook on Indian retail, Kishore Biyani, group CEO of Future Group and widely regarded as the country’s retail doyen, pointed out that, as India’s overall economy rises to $5 trillion by 2030, it will trigger the consumption

MAPIC PREVIEW • 36 • October 2018

Prateek Sinha Facebook India:

“By 2020, mobile commerce will drive the majority of all sales, but 90%-plus of these will still occur in stores economy to $2 trillion. The projected per capita consumption of $2,000 will be a turning point for the country, he predicted. Warning foreign investors and retailers against simplistic strategies, Biyani added: “The numbers don’t explain — you will never understand [India] unless you get your hands dirty.” While online and ofﬂine stores will continue to co-exist, e-commerce currently has an edge over physical retail in Tier II and III cities, according to Anarock Retail’s report, Rebirth Of Retail Malls: New, Improved And Revitalised, which was released at the event. “A signiﬁcant portion of Indian retailers’ target clientele lives in non-metro cities. Considering the rising purchasing power in these cities, the slow deployment of physical retail there is worrisome,” added Anuj Kejriwal, managing director and CEO of Anarock Retail.

CONFERENCES & EVENTS AT MAPIC DESTINATION: ASIA Special focus on India Thursday 15 November - 14.00-15.30 Conference Room 2 - Palais -1

MAPIC AROUND THE WORLD: INDIA

INTERNATIONAL DELEGATION GETS A TASTE OF INDIA Jayne Rafter is publisher of Retail & Leisure International THE FUTURE of retail is already here. Are you ready? This was the question posed by MAPIC India, which attracted an international delegation including Helen Barnish of Entertaining Retail; Carlos Morano, Marwa; Damian Hopkins, Matalan; Anabel Soares, Camaieu; Alex Coombe, BoConcept; Ajay Talwar, C House Cafe; Edouard Falguieres, Guinot and Hun Yee Er, Swarovski. The delegation enjoyed guided tours of the show and introductions to key regional franchise partners and developers, including a Franchise Summit on day one, giving them an opportunity 024_VAPIANO_PV_PIC

to showcase their brands. The second day saw The International Retailers Panel, which I moderated. We started with a brief overview of the market by Vivek Kaul, head of Asia, CBRE, followed by experts Tushar Ved, president of Major Brands, and Rajesh Jain, managing director and CEO, India for Lacoste, who explained how to find the right local partner and explored the best strategies to enter India. Two of the country’s major developers, Rajneesh, Mahajan, CEO, Inorbit Malls and Pankaj Renjhen, CEO, Virtuous Retail, showcased their projects, followed by a detailed session from the international retailers. Matalan gave a snapshot of the

The retail conference session at MAPIC India.

brand, its target customer and how the core profile has evolved. Camaieu provided a brief insight into the brand and how the offer translates across borders, while BoConcept explained how it has developed new products and initiatives to stay at the cutting edge. Helen Barnish concluded by sharing her exper-

MAPIC PREVIEW • 37 • October 2018

tise in bringing international brands like Nokia, Body Shop, Hamleys and Merlin Entertainment to the market over the past 11 years and some lessons learnt along the way. An International Retailer Tour followed, including trips to Seawoods Grand Central, High Street Phoenix, Palladium Mall and Oberoi Mall.

047_RM MAPIC FAMILY_PV_PIC

Discover the world of retail real estate events MAPIC THE INTERNATIONAL RETAIL REAL ESTATE EVENT

13-15 November 2019 Cannes

16-18 April 2019 Moscow 8-9 May 2019 Milan

Retail Forum 26-27 Nov. 2019 Hong Kong 8-9 May 2019 Milan September 2019 Mumbai

regions: WESTERN EUROPE

A giant Leap

into the future

St James, Edinburgh reﬂects the new multi-functional approach to development

The biggest news for Western Europe’s retail sector is less about new development or UK retail administrations and more about how tech giant-backed innovation could reshape the industry, says Ben Cooper

T THE beginning of August, the tech world received the news it had been waiting for: after three years of hype and anticipation, the Magic Leap augmented-reality (AR) headset had finally hit the market. It wasn’t the first of its kind and doubtless there will be more to come. But with the backing of no less than Alibaba and Google, Magic Leap is not just another gadget. It could be a giant leap down the long, intertwining roads of technology and retailing.

Picture a future retail store where shoppers can flip on a headset and watch a virtual model stroll around the shop wearing the exact outfit they are thinking of choosing. Or imagine the shopper at home, placing virtual lamps, plant pots and cushions

on to a 3D virtual simulation of their own living room. It isn’t a question of whether these innovations will happen but when, says Karen Harris, managing director of intuDigital, the technology wing of the international shopping-centre

Karen Harris, intuDigital:

“Over the next few years, we’re going to see technologies that will totally disrupt the shopping-centre industry. Artiﬁcial intelligence and mixed reality will change things massively” MAPIC PREVIEW • 39 • October 2018

owner. “Over the next few years, we’re going to see key technologies that will totally disrupt the shopping-centre industry,” she says. “Artificial intelligence [AI] and mixed reality [MR] will change things massively. AR headsets will bring the digital experience to the physical. There will be a race over the next three years between all the major tech platforms. You’ll be able to do visual searches using AI and make instant purchases using new payment technologies.” The role of the technology giants in rewriting the rules of engage-

regions: WESTERN EUROPE ment can already be seen in the collaboration between Carrefour and Google in France, and between the French grocer and UK supermarket leader Tesco to optimise supply chains. But technological leaps often raise as many questions as they answer. And for the retail property industry, there are some profound questions to be addressed. Is the sector ready for this radical change? How can new technologies be harnessed to improve the customer experience: And how can online be embraced without making physical space redundant? These fundamental issues are particularly apparent in the key, high internet-penetration markets of the UK, France, Germany and the Benelux region of Europe. “We have changed the way we shop,” says Jerome Le Grelle, executive director of retail at CBRE France. “This is the challenge for retailers. They have to be close to their customers at any time of the day or night.” Keeping this close link with shoppers in the modern era is simultaneously remarkably easy and exceptionally complicated. But retailers are getting the hang of it: wherever you look in Europe, every year e-commerce takes a higher share of overall retail sales. However, Sian Doyle, head of UK business development at CBRE’s retail advisory and transaction division, says that, while the convergence of physical retailing with e-commerce is the new big challenge, the store is still at the core of the retail business. “Retail is changing faster than it ever has,” she adds. “Consumers don’t really differentiate between channels; the convergence is consumer-led. But 91% of all transactions are still happening with contact with a store. And there is a direct link between online sales and physical stores. You close a store and online penetration in the surrounding area goes down.”

Tesco is to collaborate with Carrefour over supply chain optimisation.

Sian Doyle, CBRE:

“There is still a direct link between online sales and physical stores. You close a store and online penetration in the surrounding area goes down” To see how this has this panned out, you need to look to the European market with the most mature online shopping sector — the UK. Such is the scale of penetration in the UK e-commerce market that there are calls for what chancellor Philip Hammond describes as an “Amazon tax” on e-tailers. But James Cons, managing director at retail-specialist architect Leslie Jones, says that, while e-commerce has brought its problems for the high street, especially in the weaker locations, there is still hope for bricksand-mortar: “It’s a case of trying to get a level playing field for physical over digital in the tax system. The operating costs of physical stores are so high, with rent and rates on retailers. We

could sleepwalk into creating dormant towns with no character if we are not careful. But I think we are at a unique point. Amazon is moving into physical stores. They see that this is the future. The UK is more mature than many locations in mainland Europe, but they can see this is coming their way as well.” But a mature e-commerce market is by no means the only paradigm shift in the UK. There is the little matter of Brexit to deal with. Stephen Springham, partner in the research team at agency Knight Frank, says the UK’s withdrawal from the EU is likely contributing to something of a wait-and-see attitude in a quiet retail market: “Cross-border activity has definitely slowed over the last 12 to 18 months. There are also retailers repositioning in the UK and looking to close doors where previously they have been very active. It’s slow, but it hasn’t completely dried up. People are just being a lot more careful with their expansion plans. People may be waiting to see what happens once we are out of Europe and how things end up post-Brexit.” Spingham adds: “It’s the small

MAPIC PREVIEW • 40 • October 2018

operators that are still driving demand and looking for space. It’s not the big-box operators. We’re just not seeing the same demand for stores of above 3,500 sq ft [325 sq m] as there was two or three years ago.” Add this to some alarming, high-profile retail administrations — not least shopping-centre anchor brand and department store group House of Fraser in August — and the inevitable conclusion is that anyone building new space had better be sure they are getting it right. In short, they need to make their centres about more than just shopping. As CBRE’s Doyle says: “Everyone is looking at their shopping centre and thinking, how can it be more relevant? And how can it continue to be at the centre of a city? People are thinking of new ways to get people in and to create experiences.” This is precisely the attitude driving the developer of one the major schemes currently underway in Scotland. When TH Real Estate began work on the Edinburgh St James (ESJ) shopping centre in 2015, it knew it had to deliver something special in a city famous for its shopping,

A giant Leap for retail?

regions: WESTERN EUROPE culture and tourism. In a £1bn partnership with APG Asset Management, the firm set about creating a space that would match the high hopes, and high esteem, of Edinburgh itself. “We set about creating something that would be out of the top drawer of retail assets,” says Martin Perry, TH Real Estate’s director of development. “ESJ departs a long way from the traditional shopping-centre approach. It’s a project that is truly integrated with the city. It’s fully connected to the surrounding streets; it’s open 24 hours a day. We are connecting it up with existing cycle routes, pedestrian routes and public transport.” But Perry isn’t just talking about ESJ being physically connected to the city: the team is working to make the centre a part of what, intangibly, makes Edinburgh unique. “This is a city that 010_MAX_PV_PIC has 12 festivals a year, which are

a huge part of the life of the city,” Perry adds. “We want to have a relationship with Edinburgh and that means being more than just a shopping centre. We are using the experience of the city to drive the experience of the shopping centre, but also creating experiences and adding to the city.” Experiential space-making has always been important in shopping-centre development. Now, however, it is a golden rule — an essential, bare-minimum requirement. In fact, the term ‘shopping centre’ might rapidly be approaching retirement, given that there are already schemes being developed where retail makes up a minority of the floorspace. Recognising this shift, in June French retail property giant Immochan completed a two-year rebrand and rename — to Ceetrus — declaring it had moved

Fresh, a French concept offering 100% fresh products

on from being purely a retail property developer to a company that was thinking in terms of mixed-use schemes. And through its property investment arm, Carrefour is taking its own steps into the future of retail. As a “third-generation owner of commercial property”, its prop-

erty division, Carmila, is being geared directly to cater for millennial shoppers, with new offers and spaces that reach “beyond the in-mall experience”, the company says. A quick look at the plans that developer Apsys is working on in Saint-Etienne reveal how the

Franchise opportunities MAX Premium Burgers are expanding ”Most profitable restaurant in Sweden outperforming both McDonald’s and Burger King.”

Reasons to invest • Family owned and profitable since 1968 • High average turnover: 3 million euros/restaurant • Recognized as the best tasting burger in country after country For more information, please contact johan.stahl@max.se and visit www.maxburgers.com. At MAPIC, visit us in booth R8.D20. 198x123_annons_MAPIC_2018.indd 1

2018-09-11 10:59:43

MAPIC PREVIEW • 41 • October 2018

050_RM PAVILION_PV_PIC

VISIT OUR LOCAL PAVILIONS NEW

A pavilion gathering business POD, networking and pitching area. Highstreet owners, brokers, shopping mall owners & developers, retailers will showcase their projects, expertise and concepts.

...

RIVIERA 8

Get an insight of the italian market and connect with key italian Retail property players, investors and retailers and discover some of the key upcoming retail development projects.

...

PALAIS -1

Meet dynamic key French cities which are looking for retailers to make a new home in their city centres.

...

PALAIS -1

Discover the latest news from the retail landscape in America.

... PALAIS -1

The meeting point for key retail property players, investors, master franchises and retailers, looking to develop their business in this vibrant market.

...

PALAIS -1

LIC OF TU E RK

IHKIB, the Istanbul Appareil Exportersâ&#x20AC;&#x2122; Association will gather under the Turkish pavilion a dozen of the key Turkish retailers looking for expanding their brand worldwide.

RE P

NEW

T RY

R OF T

REPUBLIC OF TURKEY MINISTRY OF TRADE

... RIVIERA 7

regions: WESTERN EUROPE

Marques Avenue’s Saint Denis development, beneﬁtting from a refurbishment programme

next generation of experiential projects is unfolding. When the Steel scheme opens next year, shopping might not even be on the agenda for many of its visitors, who may be drawn instead by its 5,000 sq m indoor entertainment complex or multiple sporting facilities. Similarly, Apsys’ Bordeaux Saint-Jean scheme will give life to a new urban ideal, close to the railway station of the same name: a multi-faceted quarter that will combine a range of functions — living, working, sharing, spending, shopping — and blend harmoniously into the urban fabric. The project architecture, described as being both bold and respectful, will create new spaces for living and shar-

ing. It will also link the station and the Garonne river, extending the dock experience with numerous small squares. Marques Avenue is celebrating its 25th anniversary under the leadership of Zakari Leriche, who was promoted to managing director in July. The group is working on a general strategy to re-enchant the customer experience via the implementation of refurbishment, new design and new services for customers. Some centres are under refurbishment: Marques Avenue Ile Saint Denis; Marques Avenue Franconville; and Marques Avenue Talange. These centres will be redesigned to enhance the customer experience and the comfort of shopping.

In Bordeaux Apsys is developing an ambitious integrated urban scheme.

French city Mulhouse has succeeded in attracting new retailers

James Cons, Leslie Jones Architects:

“I think we are at a unique point. Amazon is moving into physical stores. They see that this is the future” Marques Avenue Romans has already been extended this year and will be further extended in 2019, while the company is introducing a new service in all centres called Kid’s Place. It is a free nursery place with workshops organised for kids on Saturdays so that parents can shop quietly while the kids are cared for and entertained for free. Just as in the UK, this level of experiential design is now the norm in France. And it needs to be, says CBRE’s Le Grelle, because French retail is going through its own tough times. “We are still facing big difficulties in the French market,” he adds. “The textiles sector in particular is still very difficult and is suffering. We have seen insolvencies and administration, and retailers are having to restruc-

MAPIC PREVIEW • 43 • October 2018

ture and adapt their activities to new trends. There are challenges for investors about how to reposition shopping centres.” Many regions and towns are working hard to reimagine their retail offer. For example, the French town of Mulhouse, close to both the Swiss and German borders, has been recognised with an award for its success at attracting new retailers, with over 440 new stores opening since 2011, more than double the number that have closed. New formats are also being promoted. One such is Fresh, a 500 sq m local store format offering a wide range of 100% fresh products, says Christelle Madeleine, development director at Fresh. Its concept is located in the outskirts of large and medium-sized French towns, on sites between 4,000 and 6,000 sq m and with provision for 70 to 100 parking spaces. The company’s range comprises five product families — fruit and vegetables, seafood, dairy, meat and poultry and cold cuts; and a delicatessen offering a broad choice of ready-to-eat products. Faced with this combination of changing trends and economic challenges, every sector of retail property is being rethought. The designer-outlet sector, for example, has not traditionally entailed much by the way of

005_RM HEBERGEMENT_PV_PIC

Need help with your accommodation for the next shows? Our dedicated team can provide you with • The best rates and conditions in Cannes or nearby

• Secured bookings and centralised payment

Book your next stay with our online booking platform: mapic.b-network.com mipim.b-network.com

regions: WESTERN EUROPE experiential features, because its hook was simply good fashion brands at discount prices. But Adrian Nelson, group leasing director at international outlet developer and owner McArthurGlen, says this is no longer the case. Across the company’s portfolio, from its outlet in Provence in France — where it recently held an exhibition of Rodin and Maillol sculptures — to its gastronomic offering at Roermond in the Netherlands, McArthurGlen is adapting and bringing in experiences to draw in shoppers. “Historically, the outlet industry solved the problem of leftover stock,” Nelson says. “That’s still an important part of our role, and never more so than in to-

using innovative ways to deliver the most memorable day out.”

Adrian Nelson,

McArthurGlen: “The

outlet industry has evolved to become a valuable retail channel in luxury’s multichannel world and a compelling route into luxury shopping for the younger generation”

ECE is to introduce new concepts and enhanced F&B in Leipzig.

day’s world of fast fashion. But we have evolved to become a valuable retail channel in luxury’s multichannel world and a compelling route into luxury shopping for the younger generation, who demand a much broader and more compelling experience when they are shopping. That means we must offer an extremely distinctive experience in all aspects of shopping, from finding the most desirable product to enjoying food, witnessing spectacular entertainment and

It is a sign of the times that even designer outlets are having to work so hard for customers’ attention. Yet another sign is the poor start to the year experienced by the powerhouse of Europe, Germany, where retail investment transactions took a dramatic and unexpected fall in the first half of 2018, to the alarm of observers both inside the country and outside. The worst-hit sector was shopping centres which, according to research from JLL, had their worst

start to the year on record — a remarkable 63% year-on-year fall from the first half of 2017. And of all the retail deals in the period, only one transaction worth more than €100m succeeded in getting over the line. “People are much more risk adverse now,” says Anke Kaukers, head of shopping-centre services at JLL in Germany. “When it comes to leasing, people are less confident. The market has been difficult, but I think it’s adjusting itself. Prices have found a new level. In Germany, people have different rental-growth expectations and different pricing levels. But I can see things picking up in the second half of the year.”

Anke Kaukers, JLL:

“The German market has been diﬃcult, but I think it’s adjusting itself. Prices have found a new level. I can see things picking up in the second half of the year”

How this plays out over the coming months will be a test of Germany’s resilience — itself a big indicator of the wider health of northern Europe. Expect a lot of the talk at this year’s MAPIC to be about the health of the EU’s largest economy. In the meantime, projects continue. ECE’s Promenaden shopping centre at Leipzig’s central station, for example, is set to be extensively modernised, refurbished and upgraded. For this, ECE will introduce a new architectural con-

MAPIC PREVIEW • 45 • October 2018

cept that it says will offer travellers, visitors and locals a new shopping experience. The centre’s three levels will be themed according to the most important shopping needs of its customers, with 70 new and refurbished shops and food service areas. Besides bringing in a large number of new concepts, many of the existing stores will be upgraded. The owner of the shopping centre, a DWS-managed fund and ECE/the Otto family, as well as the tenants will invest a total of approximately €30m in the revamp. Also expect a lot of talk at MAPIC of retailer expansion — and leasing activity. Things might be tricky in Germany, but JLL’s Kaukers says there is still plenty of acquisition going on, not least by some of Europe’s giant retail names, such as Inditex and H&M. As Knight Frank’s Springham observes: “There are always retailers at MAPIC who are particularly acquisitive. It will be interesting to see what this year brings.” There are those that remain confident of physical store expansion. “To open a new country every year” is the message that KiK CEO Patrick Zahn wants to get across with regard to retailer KiK’s expansionist activities. Founded in 1994, fashion retailer KiK is headquartered in the German city of Boenen (Northrhine-Westfalia) and with a record revenue of more than €2 billion in 2017, KiK ranks fifth among German fashion companies. To date, KiK has 3,634 stores in 10 European countries: Germany, Austria, Czech Republic, Slovenia, Hungary, Slovak Republic, Croatia, Poland, The Netherlands, and Italy, of which 2,579 stores are in Germany. Expansion across Europe remains a top priority for KiK, which aims to open 200 stores every year. This autumn, KiK will open its first stores in Ro-

014_INNESCO_PV_PIC

Specialist. Thoughtful. Expert. We help clients across the real estate sector to strengthen and articulate their brand and build valuable reputation in the marketplace – helping them to achieve competitive advantage, negotiate better, accelerate deal-ﬂow, and ultimately protect and grow asset values. We call it ‘doing better business’. www.innesco.co.uk | @INN_Tweets

Proud partners of MAPIC

regions: WESTERN EUROPE

German fashion store KiK, a brand with expansion plans across Europe

mania and in 2019 and 2020, KiK will also enter the French and Bulgarian market with approximately 10 new stores each initially. Italy, which KiK entered in 2017, remains an important country for future expansion activities, with plans to open 25 new stores each year. Continuing to service store expansions and celebrating its 150th year, umdasch The Store Makers is one of the leading shopfitting concerns in Europe and is a new exhibitor to MAPIC. Austrian-based, with 20 branch locations in Europe and the Middle East, its four divisions — Lifestyle Retail, Food Retail, Premium Retail and Digital Retail — realise over 7,000 shopfitting and 100 general contracting projects every year. The company combines traditional shopfitting with dig-

ital components and customers include luxury department stores Harrods and Selfridges, flagship stores for Ferrari and LK Bennett, as well as rollouts for Rewe, Spar, Audi, Khaadi and many more across 70 countries. Another brand that has captured the attention of the international market is Dutch fashion label Rituals, which has made it very clear that it is on the acquisition trail, with 110 new stores due worldwide by the end of the year and a similar number in 2019. In a welcome sign of confidence the company has pinpointed France and Germany as key target markets. It may not be a coincidence that one of the most rapidly expanding retail brands in Europe comes from the Netherlands. Of all the markets in Europe, the

London’s iconic Harrods is revamping its food halls with umdasch.

Antwerp: Redevco is one of those investing in the Belgian market.

Netherlands is demonstrably in good shape, with the latest CBRE Real Estate Market Outlook showing consumer confidence at a 17-year high, retail sales for the year estimated at 4% higher than in 2017 and a healthy level of acquisition activity by both domestic and international retailers. But this is caveated by a warning. The report says: “Despite the positive signals from the prime high streets in the large cities, a conservative perception persists in respect of the secondary segments of the retail real estate market.” In neighbourhood shopping centres, in particular, CBRE says there is a “striking” vacancy growth. In Belgium, too, there is something of a mixed picture. The rapid growth in retail sales of last year has not been repeated so far in 2018 — and yet consumer confidence is higher than at any point during the past 10 years. On Belgian high streets and in the country’s shopping centres, vacancy rates are still high, at around 10%. But the development pipeline remains strong, with some major new projects, including Redevco’s The Leaf retail park in Ternat, due for

MAPIC PREVIEW • 47 • October 2018

completion in the second half of this year, and further projects set for completion early in 2019. Indeed, the whole of Europe seems rich with complexities in 2018. A time of great change — of AR and digital innovations both front of house and behind the scenes, and whole new experiences and modes of thinking in shopping-centre design — it is also an era of uncertainty, in which seemingly any retail chain, even the anchors, could soon be in the administrators’ hands. With this in mind, and the tech race well under way, retailers and retail property owners should prepare for more change before things are likely to settle.

CONFERENCES & EVENTS AT MAPIC

DESTINATION: UNITED KINGDOM Thursday 15 November - 10.00-11.00 Conference Room 2 - Palais -1 DESTINATION: FRANCE Thursday 15 November - 11.00-13.00 Conference Room 2 - Palais -1 DESTINATION: GERMANY Thursday 15 November - 15.30-17.30 Verrière Grand Auditorium - Palais 1 MAPIC OUTLET SUMMIT (By invitation only) Tuesday 13 November - 14.00-18.00 TRANSFORMING REALITY: PHYSICAL IN THE AGE OF DIGITAL - Official Keynote Wednesday 14 November - 12:00-13:00 Room 1 - Palais 1

018_CNCC_PV_PIC

regions: MEDITERRANEAN EUROPE

Sunny outlook for experienceloving South Lower internet penetration and a slower transition to e-commerce have helped support physical retail sales in Southern Europe in recent years. But as online sales accelerate, Isobel Lee asks whether retail assets in Italy, Spain and Portugal might lose their shine.

ESPITE Southern Europe’s reputation for a relaxed pace of change, the digital revolution has finally arrived. While internet penetration in Italy is still only at about 63% of the European average, according to e-commerce expert PostNord, things are changing fast. The number of new online consumers increased by 44% between 2014 and 2017, and further surges are expected. Spain’s online users grew by 28% to 78% in the same period, and that figure is set to increase rapidly in the coming years. However, despite the trends, Southern Europe remains a sunny spot for physical retail. “The Italian retail market has been pretty fortunate so far in terms of e-commerce,” says Massimo Moretti, president of Italy’s shopping-centre association CNCC. “Only 4% of transactions take place online

Massimo Moretti, CNCC: “Italian customers

are diﬀerent when they shop. They’re social, focused on experience; more tactile and physical in their approach”

— a figure forecast to reach 7% in five years — so there’s a real resiliency compared to Northern Europe and the US. It’s not just about internet penetration: Italian customers are different when they shop. They’re social, focused on experience; more tactile and physical in their approach. This aspect should be noted and appreciated by investors.” The country with a world-famous reputation for food and fashion also has plenty of tricks up its sleeve, embracing innovation in the food and beverage (F&B) space and the evolution of its couture heritage. “We’ve seen a lot of resiliency in the luxury market,” says Andrea Piperno, chief executive of Rome-headquartered specialist broker Piperno Immobiliare. “We work a lot with Italian and international luxury brands, helping them to find the right store space in Rome and Milan’s high-end shopping streets. Demand is unwavering, from international labels too, as customers still prefer to go to luxury stores in person to touch and try the products, as well as discuss what they’re going to buy.”

New formats: Scalo Milano combines 130 discounted luxury fashion units with full-price stores.

MAPIC PREVIEW • 49 • October 2018

regions: MEDITERRANEAN EUROPE Andrea Piperno:

“We’ve seen a lot of resiliency in the luxury market. Customers still prefer to go to luxury stores in person to touch and try the products” It’s a trend that has boosted the development industry in recent years, driving the creation and success of projects such as Scalo Milano, a 130-unit designer outlet that mixes discounted luxury fashion with stores offering fullprice products. Scalo Milano recently rebranded as an ‘Outlet & More’, underlining not only its range of price points, but also its 14-unit-strong dining offer, designed to keep customers around for longer. “Consumers now clearly know what to expect from our offer and we have already witnessed an upsurge in visitors,” says Davide Lardera, CEO of Scalo Milano. “We expect a further 40% rise in the number of people coming to Scalo Milano, alongside a 30% increase in turnover.” For GVA Redilco’s CEO Giuseppe Amitrano, now is a key moment for Italian retail: “We’re at a turning point thanks to two factors: the entry of top international brands into Italy and the transformation of the traditional sales models, driven by the need to create experiences.” The shopping-centre space assigned to F&B and leisure is also growing exponentially, says Roberto Bramati, president of Spazio Futuro, a retail consultancy that specialises in shopping-centre layouts and store interiors. “We’re planning

Pasta restaurant Bottega Portici, looking to expand across Europe next year

more and more food courts and restaurants in centres where the specific mix of food types and service types are driven by quality, location and choice,” he adds. “We’ve also just set up a working group with architect Design International and Italian groups Dedem, Costa and Acqua to study innovation in F&B at every level and we’re making some exciting progress.” Some would say that the Italians have a natural competitive advantage when it comes to F&B. Moreover, the dining revolution has inspired the birth of some compelling new concepts. Bologna-based Bottega Portici is a new fresh-pasta street-food restaurant and sales point that has quality in its DNA — its first street-food concept was born as a side project to the group’s Michelin-starred restaurant and high-end hotel in downtown Bologna. It was so well received that another outlet opened in the city, and 2018 has seen further launches in Reggio Emilia and Rome. “We’re contributing

high-quality casual food that meets today’s lifestyle needs,” says development and franchising manager Giuseppe Petrignani. “We’ll have about 10 new stores in Italy next year and will open the first stores in Europe by the end of 2019.” These ambitions are being aided by the Italian Trade Agency (ICE), and Confimprese which support the business development of Italian companies abroad and promote foreign investment in Italy. In partnership with Italy’s Ministry for Economic Development, ICE’s presence at events such as MAPIC, plus Franchise Expo Paris and the International Franchise Expo in New York is helping Italian businesses. Meanwhile, two key trends are shaping the retail sector in Spain, according to Gonzalo Senra, director of retail investment at CBRE Spain. Sustained economic growth — with GDP climbing above 3% annually — and the digital revolution have injected new life into the industry, even

MAPIC PREVIEW • 50 • October 2018

if e-commerce take-up has been slow at 4.5% of total sales. While this is increasing at around 25% annually, the Spanish consumer’s appreciation for experiential and thus physical shopping bodes well for the long term. Nowhere is this better underlined that in the F&B sector — a traditional winner in the country. “Even 20 years ago, F&B represented 7%-8% of shopping-centre GLA,” Senra says. “And it’s now climbing further.” Mall operators and owners have been quick to respond with new projects or ambitious refurbishments of dining areas, stand-out examples including Platea and Mercado de San Miguel in Madrid (acquired by Belgian-based Redevco last year), Puerta Cinegia Gastronomica in Zaragoza and s’Escorxador in Palma de Mallorca. Unibail-Rodamco-Westfield has invested heavily in F&B and introduced its Dining Experience concept to many of its Spanish centres, including Glories in Barcelona and Bonaire in Valencia. Other shopping centres,

regions: MEDITERRANEAN EUROPE such as Diagonal Mar in Barcelona, have carried out successful refurbishments of their F&B areas.

Gonzalo Senra,

CBRE Spain: “Even

20 years ago, F&B represented 7%-8% of shopping-centre GLA in Spain. And it’s now climbing further”

Unibail-Rodamco-Westfield introduced its Dining Experience to Glories, Barcelona.

“Another important indicator of the growth of the F&B sector is the number of foreign brands that have entered Spain lately — Vapiano, Wagamama, Tim Hortons, Five Guys, Carl’s Jr, 022_NORDIC_PV_PIC Blue Frog and NBA Cafe have

all opened their first restaurant in Spain in the past two years,” Senra adds. There are clear parallels with neighbouring Portugal, where developers are investing in deep remodelling, especially in food-

court areas, according to advisor Savills Aguirre Newman. Shopping centres in Portugal are now centred on experience, with more leisure facilities and improved food courts, plus areas for children and events. An

increase of facilities and services to bolster footfall, such as health clinics, convenience shops and gymnasiums, have been seen in both the Centro Colombo and Amoreiras Shopping Centre, where new food-

The Nordics – a buzzling market of innovation & development Scandinavians are early adopters and given a fast-growing market we think it is only fair to say that any trend you can think of is now evolving fast in the Nordics. So if you are looking to expand your business, attract new retailers, get inspired by Nordic design or connect with the Nordic retail property industry at large, please join us at the NORDIC PAVILION. For eight years in a row we have gathered the best of the Nordics under one roof and it has become a natural hot spot for anyone looking to enter the market. This year we have also invited Handelstrender to join us, a digital publication with focus on retail trends. The editors will share daily reports from Mapic, where visitors to the NORDIC PAVILION are invited to read exclusive content, otherwise only available for members. Expect reports on interesting panel talks, the exhibitions, speeches and feel free to talk to them about your future projects.

The Nordic Pavilion is designed by renowned architect firm Studio Stockholm.

Further insights of the Nordic market will be presented during the Nordic seminar session (Thursday 15/11, 9:00-10:00), where retailers and property experts will share their local knowledge and discuss how to penetrate the market and spot the best locations. They will also share what brands and concept they think will be in highest demands in 2019. Represented in the Nordic Pavilion 2018: AMF / Business Region Göteborg / Invest in Skåne / Invest Stockholm / Mall of Tripla (YIT) / Ramböll / Shopping Center Redi / Shopping Center AINOA / Sponda / Tam Retail / Thon Eiendom / Thon Property / Vasakronan / Westner+Elsner

NORDIC PAVILION by Nordic Council of Shopping Centers

VISIT US AT MAPIC: STAND R7.C18 Slöjdgatan 9, SE-111 57 Stockholm, Sweden - info@ncscnordic.org - Phone: +46 (0)8 611 11 42

MAPIC PREVIEW • 51 • October 2018

035_BUSINESS IMMO_PV_PIC

made for real estate

We donâ&#x20AC;&#x2122;t inform only on retail

businessimmo.com

regions: MEDITERRANEAN EUROPE court areas with garden and leisure areas have recently been rolled out. For European outlets operator Neinver, headquartered in Madrid, the only way is forward. “Over the past few years, we have set up a digital-business department focused on implementing innovative technologies at our centres and integrating all the channels into an omni-channel platform, with the first such platform in the outlet sector,” says Sergio Jimenez, Neinver’s digital business and IT director. “This tool gives the brands highly valuable information about visitors’ shopping habits and tastes, while allowing us to improve areas such as leasing, management and marketing.” Major retail REIT Lar Espana is also demonstrating an appetite for evolution. The first Spanish REIT to list on the Spanish stock exchange, in the first half of 2018 Lar Espana posted a recurring EBITDA growth of 12%, while rental income improved by 6%. Lar Espana’s flagship assets include the 100,000 sq m shopping and leisure centre Palmas Altas in the heart of Seville, and VidaNova Park in Sagunto, Valencia, which has a GLA of 45,000 sq m. Albacenter in

Walther-Park in Bolzano, a scheme that will transform an old bus station into a mixed-use development

Albacete is Lar Espana’s most recent refurbishment project. Throughout Southern Europe, development is focused on mixed-use, future-proof spaces. A prime example is Westfield Milano, which will become the first Westfield branded centre in Italy when it opens in 2019. Situated in Segrate, with easy access to Linate airport, the 170,000 sq m scheme will house approximately 380 stores, a luxury village, leisure, entertainment and dining precincts, and

10,000 parking spaces, as well as the latest in digital technology, personalised shopping and tourism services. Meanwhile, Merlata Mall, located near the Expo 2015 site in the north-west of Milan, will deliver 65,000 sq m of shopping in the middle of a park that is part of a wider brownfield redevelopment dubbed Cascina Merlata. With an expected footfall of around 10 million per year, the mall aims to become a central attraction for this new area of

Milan when it opens in 2019. Regional cities are also driving change, with the Alto Adige city of Bolzano attracting the UK’s David Chipperfield Architects for a downtown scheme that will transform an old bus station into a dynamic mixed-use development called WaltherPark. With a shopping centre at its heart, the scheme will feature high-quality residential, a hotel and F&B provision. Meanwhile, plans to significantly extend Bologna’s Gran Reno centre will

Compagnie de Phalsbourg’s Open Sky Shopping Center, launching next year in the Torrejon de Ardoz area of the Spanish capital

MAPIC PREVIEW • 53 • October 2018

019_IZ_PV_PIC

WE KNOW IT.

Request your

free trial

www.iz-research.de

On 10 January 2018, a consortium of the medical pension funds of Lower Saxony, SaxonyAnhalt and Mecklenburg-Western Pomerania, the veterinary pension fund of Lower Saxony and the tax consultant pension fund of Lower Saxony purchased the Axel Springer House for EUR 400 million. You can find the facts (e. g. sellers, tenants, intermediaries, purchase prices, values) to 72 office property deals in the Hamburg area from the last 24 months in IZ Comparables.*

IZ COMPARABLES ANALYTICAL TOOL FOR COMMERCIAL REAL ESTATE AND INVESTMENT PROPERTIES Access to 20,800+ real estate properties in Germany, including 12,600+ properties with transaction data and 2,500+ properties with purchase and/or rental prices. Request free trial access immediately.

* Query in IZ Comparables on 26/1/18 with the filters ’Hamburg’, radius ’15 km’ and period ’2/16–1/18’.

211_Hamburg_230x285+5mm_E2.indd 1

The tool for professionals www.iz-research.de

21.09.18 16:26

regions: MEDITERRANEAN EUROPE transform the retail offering in the northern Italy city. Elsewhere in Italy, investor-developer Aedes is working on its Caselle Torinese development scheme. The hugely ambitious open-air mall near Turin consists of more than 250 stores across 120,000 sq m of GLA, 15% of which will be focused on leisure. Major schemes already under way in Spain include Compagnie de Phalsbourg’s Open Sky Shopping Center, which will bring 91,600 sq m GLA and 100 shops to the Torrejon de Ardoz area of the Spanish capital on its launch in early 2019. It will be flanked by The Village, a 22,000 sq m outlet designed by Philippe Starck. Key Spanish regional shopping-centre developments include the Torrecardenas mall from developer Bogaris. Designed by architect Chapman Taylor, the 60,000 sq m scheme in Almeria is set to open in 2019. Retailers such as Primark, Leroy Merlin, Media Markt and the complete offer from the Inditex group, including Zara, Pull&Bear, Massimo Dutti, Bershka and Stradivarius, have committed to take space. Torrecardenas’ 150 commercial units are complemented by a mul-

Malaga will be one of five Spanish locations for McArthurGlen’s designer outlets.

ti-screen cinema, the first food court in Andalucia and an infant multi-adventure area. Spanish retailers continue to expand. Inditex, the world’s largest clothing retailer and owner of the Zara chain, has announced it will sell products from all its brands online globally by 2020, including in markets where it does not have any stores. Chief executive Pablo Isla says that a system whereby online customer orders could be covered with store inventory would be extended to all 96 countries where

Zara plans to link store and online inventory globally.

it has physical stores. “We want to make our fashion collections available to all our customers, wherever they are in the world,” he says. “Even in those markets which do not currently have our bricks-and-mortar stores.” In September Zara re-opened its Corso Vittorio Emanuelle store in Mian with a new global flagship concept based on its online/offline strategy. Isla says: “It is a unique store as it presents an exceptional architectural design within a singular framework, while incorporating the latest technology for both satisfying new customer shopping experiences as well as strengthening our firm commitment to the environment. It is undoubtedly a model for our characteristic online and instore integration concept.” Earlier this year Spanish fashion company Grupo Cortefiel changed its name to Tendam as part of its two-year revamp of the 140-year-old retailer. Chief executive Jaume Miquel said the company developed the name with brand agency Interbrand and tested it in different countries and different languages like English and Japanese. The company is to keep the names of its

MAPIC PREVIEW • 55 • October 2018

fashion label Cortefiel, upmarket label Pedro del Hierro, underwear chain Women’secret, menswear chain Springfield and Fifty. The outlet trend is also driving development across Spain. Earlier this year, McArthurGlen announced it was planning five outlets in the country. In collaboration with Sonae Sierra, it is already well under way with its first scheme in Malaga, which will consist of 30,000 sq m of space. The project’s first phase is scheduled to open in 2019, with the second phase arriving in 2020. In Greece, meanwhile, Sonae Sierra is set to open its first outlet in Thessaly this autumn. Fashion City Outlet, developed in partnership with investment management firm Bluehouse Capital, will feature 70 stores across 20,000 sq m.

CONFERENCES & EVENTS AT MAPIC DESTINATION: ITALY Thursday 15 November - 17.30-19.00 Conference Room 2 - Palais -1 DESTINATION: SPAIN Wednesday 14 November - 16.30-17.30 Conference Room 2 - Palais -1 F&B PLAYERS RECIPES: SUCCESSFULLY DEVELOP YOUR CONCEPT WITH A PRIVATE EQUITY PARTNER Thursday 15 November - 09.00-10.00 Conference Room 1 - Palais -1

012_LES EDITIONS DU SITE_PV_PIC 021_EDITIONS_PV_PIC

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

Publicité : France Bodiou f.bodiou@enseigne-et-sites.com / + 33 (0)1 40 34 92 55 Abonnement : Frédéric Gruau abonnements@enseigne-et-sites.com / + 33 (0)1 40 34 51 21

REGIONS: SCANDINAVIA

Power trends

in the North

Stockholm remains Scandinavia’s gateway market

Years of strong retail growth have resulted in a race for space in Scandinavia. But with competition and online penetration beginning to make their mark, the region is going through a period of realignment, writes John Ryan

OUCHING down at Stockholm’s Arlanda airport, one of the first things the visitor is likely to see is ‘Welcome to Stockholm, Capital of Scandinavia’. It’s a big claim and one that has, from time to time, caused a certain amount of quibbling among the countries and cities that comprise the region. Yet there is some merit in the statement. With just shy of 10 million inhabitants, Sweden’s

population is close to twice the size of that of either Denmark or Norway. Its area is also somewhat larger than any of the other countries — if Greenland is discounted from the Danish equation — and the combination means an economy that is almost 40% larger than that of Norway, its nearest rival. There is a tendency to confuse the Nordic region — Norway, Sweden, Denmark, Finland and Iceland — with Scandinavia, which consists only of Norway,

Sweden and Denmark. Culturally, linguistically and economically, the similarities between the Scandinavian countries are greater than the differences, whereas Finland is a thing apart. In spite of these similarities, when it comes to retail and retail-property development, growth rates differ and the effect of issues such as online retail and population growth vary from country to country. Jens Linderstam, head of retail services, Sweden, at Cushman & Wakefield, says that, in the largest Scandinavian market, things are somewhat uncertain: “You could say that we have had a long period of growth. To a large extent, this is due to the increase in the number of inhabitants and tourism in the bigger cities, particularly Stockholm, although also in the cities towards the border with Nor-

MAPIC PREVIEW • 57 • October 2018

way.” He reports that, over the last two decades, this has translated into a steady demand for “increased square metres”, but that currently this appears to be slowing. The reason, Linderstam says, is the growth of e-commerce in Sweden and across the region. “It has a market share of 10% and, within five to seven years, this could be as high as 25%,” he adds.

Jens Linderstam, Cushman & Wakeﬁeld:

“E-commerce has a market share of 10% and, within five to seven years, this could be as high as 25%”

REGIONS: SCANDINAVIA This is coupled with the phenomenon of retailers and developers moving out to the edge of cities, as Sweden’s tight planning climate makes building higher or extending existing assets in central locations problematic. That said, the oldest and perhaps the most central mall in central Stockholm, AMF’s Gallerian, is nearing the end of a refurbishment programme that started in 2014 and is due for completion in 2019. It will add a further 8,000 sq m to the existing structure with a mix of retail and leisure. Mentions should also be made of Unibail-Rodamco-Westfield’s Mall of Scandinavia which, with a GLA of just over 100,000 sq m, is reputed to have put a strain on central Stockholm retail since it opened at the end of 2015. There is, however, no straightforward correlation 041_IKEA_PV_PIC between its arrival and any slow-

Urban outfitters: AMF is substantially through refurbishment of Gallerian, Stockholm.

down in the city centre. Lindestam believes that the down trend is as much to do with the predation of the internet and a less benign economic climate as

additional retail space appearing on the city’s periphery. All of which means that, while there is still growth to be had in Sweden, it is for the most

MAPIC PREVIEW • 58 • October 2018

part a period of consolidation. The best locations in which to trade and to consider new developments or refurbishments are Stockholm and the cities

025_FRANCHISE_PV_PIC

REGIONS: SCANDINAVIA Remi Olsen, Akershus Eiendom: “The location

[of Bispevika] is probably one of the most beautiful places on earth. You may find more beautiful places, but they’re not downtown”

to the south of the capital. All is far from lost in Swedish retail, Lindestam stresses: “Traditional retail will be the bulk of activity in this country for a long time.” To the west of Sweden, Norway is substantially better off than its eastern neighbour in terms of per-capita income. But, like Sweden, the real action is in the capital city, Oslo, which accounts for roughly 40% of the population and is currently marketed as the fastest growing city in Europe. Curiously, the largest mall in Norway is in the extreme south of the country, about 13 km from the small city of Kristiansand. Called Sorlandssenteret, it was last refurbished in 2013 and continues to thrive. But the biggest mall in terms of turnover — although it is roughly half the size of Sorlandssenteret — and also the most frequented is Strommen Storsenter, just outside Oslo. At 65,000 sq m, this is a mega-mall and is reputed to have had, over the years, a similar effect on Oslo’s retail scene as the Mall of Scandinavia on Stockholm’s. Yet central Oslo’s physical retail looks buoyant. The city is also the location of a major development called Bispevika. Located on Oslo’s waterfront, this is mixed-use scheme combining office, residential and retail, as well as a number of cultural elements. Remi Olsen, senior retail advisor for Bispevika at Akershus Eiendom, is not given to understatement when talking about the project: “The location is

probably one of the most beautiful places on earth. You may find more beautiful places, but they’re not downtown.” Work on Bispevika started in 2001 and it is now 50% complete, with the phased opening of the remainder taking place between 2020 and 2024. Increasingly, Oslo, like Stockholm, is a tourist destination — albeit considerably more expensive — and Olsen says that he anticipates many of the scheme’s visitors coming from beyond Oslo. Bispevika’s retail provision will span 14,000 sq m, with a total of 30,000 sq m when the dining and leisure elements are included. Maria Rognerud, Bispevika’s retail development director, says: “It’s important for us to keep cars away from the streets. We want there to be fewer cars and for it to be a good place to live in.” As might be pictured in the land of fjords and majestic landscapes, the green agenda plays large in Norway — and Bispevika is attuned to this. It is also testimony to the power of the Norwegian capital that, while much of the country’s retail activity is mall-based, the latest and highest profile development is a series of modern urban high streets — indicating perhaps that the move back into town is one of the key trends in this part of the world, e-commerce notwithstanding. And so to Denmark, the smallest Scandinavian country by area — it is only a little over 10% of the size of Norway, when Greenland is excluded — but

MAPIC PREVIEW • 59 • October 2018

016_METROPOLIS_PV_PIC

PW_5523 PW Subs MAPIC FP Ad 230mm x 285mm Ad.P.ART.indd 1

12/09/2018 15:57

REGIONS: SCANDINAVIA with a capital city whose population is very close to that of Oslo. Kristian Vinggaard, partner at Cushman & Wakefield RED, says that, despite the inroads made by e-commerce and m-commerce (mobile commerce), “Copenhagen and Denmark are still doing great” in terms of physical retail. Vinggaard admits that the picture is mixed, however. He adds that, while prime areas, such as the neighbourhood that includes Copenhagen’s Illum department store, are still in demand, there are other parts of the capital where demand is ﬂagging and where leasing is problematical in streets “less than 200 metres off pitch”. He also observes that it is the high-end that is where most of the new demand is coming from, with Prada extending and Chanel opening in Copenhagen, for instance. For the mid-market, the story is the same as in many other countries and regions, with players such as H&M seeking to scale

up their stores in the best locations and to get rid of those in secondary areas. Beyond Copenhagen, in cities such as Aarhus, Odense and Aalborg, the pattern pertains. Scandinavia is a large region with a relatively small population. If there is one observation that might be made, it is that it so far seems to have avoided much of the malaise that has hit large parts of continental Europe. The online threat looms, but for moment, at least, ‘hygge’ seems to remain.

CONFERENCES & EVENTS AT MAPIC DESTINATION: THE NORDICS Thursday 15 November - 09.00-10.00 Conference Room 2 - Palais -1 NEW OPERATING MODELS: INNOVATIVE SOLUTIONS TO REINFORCE SHOPPING CENTRE EFFICIENCY Thursday 15 November - 17.30-18.30 Room 1 - Palais 1 RE-INVESTING IN HIGH STREETS INTERNATIONAL VIBES! Thursday 15 November - 15.30-16.30 Conference Room 1 - Palais -1

Monki do: H&M is expanding formats across Scandinavia.

Bispevika, a major development on Oslo’s waterfront

MAPIC PREVIEW • 61 • October 2018

004_IMMOBILIEN_PV_PIC

immobilienmanager: better than the best espresso

immobilienmanager www.immobilienmanager.de

im_mapic_230x285.indd 1

the decider's magazine

30.08.18 15:24

regions: RUSSIA AND CEE

ADG is introducing 39 community schemes to Moscow, with Angara the medium-size format.

Russia increases appetite for F&B Many of Russia’s retail centres are enjoying fresh impetus, thanks to the rapid rise of F&B. Liz Morrell looks at how food and leisure experiences are helping to drive growth in Russia — and why Poland is embracing digital

USSIA’s downturn in retail turnover is on the rise once more, thanks to a growing appetite for food and beverage (F&B), and leisure experiences. Indeed, in Moscow’s shopping centres, such experiences are becoming the main weapon in the battle to increase dwell times, according to Oksana Kopylova, head of retail and warehouse research at JLL, Russia and CIS. “On average, cafes and restaurants occupy about 5% of GLA and 3% of GBA of

Moscow shopping centres,” she says. “This increased by 1 percentage point in 2017. The importance of food operators is particularly evident in prime malls, where the F&B share is at about 9% of GLA. Developers are also allocating a growing share to dining areas in projects under construction. The F&B share in new projects is already above the average level of 5% at the planning stage.” “The growth of the F&B sector in Russia is the most discussed topic at the moment,” adds Marina Malakhatko, director

and head of Moscow retail at CBRE. In 2017, around 90,000 F&B concepts were present in Russia, with 11,000 in Moscow. The food-market concept is a key trend and the food-hall concept is also actively expanding in the biggest Russian cities. Entertainment operators are also becoming more important than ever and now occupy around 12% of the GLA of Moscow shopping centres, according to Kopylova. The drive for entertainment is being driven by shifts in consumer behaviour, Malakhatko adds: “Millennials and Gen Zeds are pushing retail developers to construct more convenient and multi-functional space, attracting more and more entertainment concepts in malls.” “In recent years, retail real estate has changed a lot, and digital and entertainment have a strong influence,” says Oxana Fedulova, marketing and sales

MAPIC PREVIEW • 63 • October 2018

director at Russian developer Fortgroup. “Shopping malls are becoming more and more like the third living area for consumers — home and work and shopping mall.” Russian consumers no longer visit malls simply for shopping, she adds. They have also become leisure destinations, where people come to visit restaurants, cinemas, food courts, family entertainment centres and fitness clubs. “Today, the big shopping concepts try to satisfy the demand of consumers as much as possible,” she says. Entertainment and leisure concepts have traditionally included offers such as cinemas, trampoline parks and edutainment centres. However, the last two years have seen newcomers such as virtual-reality (VR) parks and cyber sports clubs enter the market, as well as culinary and wine schools, hobby centres and art galleries.

027_PROPERTY EU_PV_PIC

Real insights, real intelligence Daily, Weekly, Monthly Deals, people, statistical analysis, opinions and future trends from across the Pan European real estate landscape. Delivered in the format and at the frequency that suits you. Stay informed, secure your subscription today!

SPECIAL

OFFER

MAPIC

20% DISCOU

Mapic special oﬀer

For more information

Subscribe today using the bonus code: MAPIC2018 at webshop.propertyeu.info, or subscribe@propertyeu.info *Offer ends November 30

Dean Ireland Subscriptions Manager T +31 88 77 67 352 ireland@propertyeu.info

regions: RUSSIA AND CEE An embracer of this more experience-based trend — and the company responsible for delivering a significant share of 2019/2020’s planned retail space in Moscow — is ADG Group. The company’s neighbourhood shopping-centre project, which has been showcased at MAPIC in recent years, is transforming 39 former cinemas into a new community mall concept. The project will see the debut of CJ CGV, the fifth largest cinema operator in the world, into Russia. ADG says it has moved away from the traditional business model of a shopping centre to something that delivers a superior customer experience and satisfies the interests of local communities. At this year’s MAPIC, it will be exhibiting the proof of concept for its three different-sized centres: small with Angara, medium with Budapest and large with Sofia. For these, leisure and entertainment will account for 40% of GLA, with half apportioned to the

feel the brand through furniture design, the way they are treated at the concierge desk and the tone of voice of our marketing communications. We believe that only by moving systematically will we succeed in delivering the proper customer experience and building long-term relationships.”

Grigory Pecherskiy, ADG Group:

Russian shoppers continue to favour stores over online.

cinema and half to the F&B component. Grigory Pecherskiy, managing partner of ADG Group, says that research showed there was also potential for an edutainment offering within the neighbourhood centres. Accordingly, this will be introduced in the Angara scheme, which is due to open in March 2019. Although the space will cover less than 400 sq m GLA, the offering and rotation of the activities within

it, which range from a VR room to Lego Education and climbing walls, will be a new concept for shopping centres, Pecherskiy says. “We see customer experience as the continuation and an inseparable part of the neighbourhood-centres branding,” he adds. “Our complex projects have three dimensions — physical, human and digital — and we want our brand to influence each of these parts. Literally, we want a person to

Fortgroup is transforming from retail to incorporate leisure and entertainment.

MAPIC PREVIEW • 65 • October 2018

“Our complex projects have three dimensions — physical, human and digital — and we want our brand to inﬂuence each of these parts” When it comes to digital, the opportunity is huge. E-commerce accounted for only 4% of the total Russia retail market turnover in 2017, according to JLL. And with less than a third of the population having shopped online via any digital channel — compared to 60%-70% in more advanced markets — the potential for growth is huge. How quickly Russia will fulfil that potential remains to be seen, however. “In all, 24 million Russians are making online purchases and this number is growing rapidly every year,” CBRE’s Malakhatko says. But she believes that physical retail will remain strong: “We still feel that physical stores will be expanding as, according to statistics, three out of four customers want to try a product before they buy it.”

regions: RUSSIA AND CEE Marina Malakhatko,

CBRE: “We still feel

that physical stores will be expanding — according to statistics, three out of four Russian customers want to try a product before they buy it” Indeed, even digital retailers are following the physical path, according to Malakhatko: “The online stores are going offline. Bricks-and-mortar stores have been opened by I Am Studio, Marchelas and KupiVIP during

the past years. One of the biggest online fashion retailers in Russia — Lamoda — is going to open its first offline store by the end of 2018.” Fortgroup’s Fedulova, meanwhile, identifies a number of emerging trends, from the growth of online services for goods delivery to developing digital communications with customers. The company is working hard to embrace these new trends and, at MAPIC this year, will be presenting its Moscow projects, acquired by the company in December 2017. These include five malls with a total GLA of around 500,000 sq m: Europolis Rostokino (previously called Zolotoy Vavilon Rostokino), Fort Otradnoe (previously Zolotoy Vavilon Otradnoe), Fort Yasenevo (previous-

ly Zolotoy Vavilon Yasenevo), Fort Kashirskoe (previously Goodzone) and Fort Shchkino (previously 5th Avenue). The company is also working on a new mall in Podolsk. “Now we are working on their re-conception, including renaming, changes in design and planning solutions, tenant mix and marketing,” Fedulova says. Russia may have suffered in recent years but, by adopting emerging trends and increasing the focus on food and leisure, it seems the tide is starting to turn. Poland, meanwhile, has been embracing digital with enthusiasm. While Russians may be slow to realise the benefits of digital, in Poland there has been a rush to embrace online retail. This is reinventing traditional shopping-centre

Wrocklavia, Warsaw has increased its leisure offer.

MAPIC PREVIEW • 66 • October 2018

RUSSIAN BREAKFAST THE 29th Russian Breakfast, organised by Impress Media, will be on November 15, at the Salon Diane in the Majestic hotel. The Russian Breakfast at MAPIC is a traditional venue for meeting and interacting with over 150 leaders within the retail real estate market in Russia. This year the main theme is new technologies and the related changes in the market and in the retail segment. For registration contact: Daria Chechel on + 7 499 490 04 79 or d.chechel@impressmedia.ru

regions: RUSSIA AND CEE development in the country, according to Monika Janczewska-Leja, head of retail advisory and transactions at Savills Poland. “The expansion of e-commerce has transformed the shopping basket of customers in Poland,” she says. “Today, many consumers choose to buy groceries, household items and clothing online, while a visit to a shopping centre is being increasingly associated with things to do, services, dining, sports and entertainment.” This means one of the biggest challenges for the evolution of Polish shopping centres is to develop a range of unique offers that can compete with the services and features provided by online channels. “Offering experiences that have no direct online equivalents is a competitive advantage of traditional re-

tail channels,” Janczewska-Leja says. “These may include combining a product with a service — for example, the services of a make-up artist when buying beauty products.”

Monika Janczewska-

Leja, Savills: “Offering

experiences that have no direct online equivalents is a competitive advantage of traditional retail channels”

Poland’s retail real estate owners are well aware of this, Janczewska-Leja adds, pointing to the recent changes

Savills Poland’s Monika Janczewska-Leja

MAPIC PREVIEW • 67 • October 2018

033V2_LLC_PV_PIC

regions: RUSSIA AND CEE that Unibail-Rodamco-Westfield has made to its retail schemes in Poland, including Warsaw’s Arkadia and Galeria Mokotow. At both shopping centres, the proportion of space taken up by F&B, entertainment and leisure operators has been increased at the expense of retail floor space. “This helps to extend dwell times by offering customers

attractive leisure opportunities, ultimately boosting retail sales,” she adds. This trend is evident in new openings, too. At Echo Investment’s Galeria Libero in Katowice, the entertainment and F&B zones now occupy 6,500 sq m and 3,000 sq m respectively, accounting for 15% and 7% of the shopping centre’s GLA. Meanwhile, at Unibail-Rodam-

co’s Wroclavia in Warsaw, the Grand Kitchen concept and entertainment zone, which includes Cinema City, occupies 18% of the scheme’s total area. “Poland’s 18 largest cities with more than 150,000 inhabitants have approximately 400 shopping centres, with over 765 F&B tenants, operating nearly 2,100 outlets, in both regular islands and standalone build-

ings. There are also approximately 210 leisure operators with more than 400 outlets,” Janczewska-Leja adds.

CONFERENCES & EVENTS AT MAPIC DESTINATION: RUSSIA Wednesday 14 November - 09.00-10.00 Conference Room 2 - Palais -1 DESTINATION: POLAND Wednesday 14 November - 12.00-13.00 Conference Room 2 - Palais -1

INGKA CENTRES EXPANDS LEISURE AND F&B ACROSS RUSSIAN PORTFOLIO INGKA Centres (formerly IKEA Centres) is unveiling major new parks and outdoor spaces across its portfolio of Russian malls, marking a key milestone in its vision to transform its 14 MEGA-branded Russian retail destinations. A new MEGA Park has just opened at MEGA Rostov-on-Don, following the opening of a

MEGA Park at MEGA Dybenko last year, with more scheduled to open in the coming months, including at the 100,000 sq m MEGA Ekaterinburg and at MEGA Khimki this autumn. These are part of a €2bn upgrade investment programme, with MEGA Parks designed to be family friendly community destinations, fea-

turing large areas devoted to playing sports, work out zones and children’s playgrounds. Milen Gentchev, CEO of Ingka Centres Russia, says: “Anticipating guest expectations and constantly surprising them is fundamental to the long term development of our business in a more omni-channel world.

Park life: MEGA Dybenko opened mid-2017

MAPIC PREVIEW • 69 • October 2018

We believe in this vision, which is why we are upgrading our shopping centres to become meeting places for recreation, leisure and entertainment. As well as parks we are incorporating new F&B, cinemas, open air cafes, kids play areas, flexible workspace, and are extending malls to further improve our tenant mix.”

043_RM CONNECTED BY_PV_PIC

PREPARE YOUR BUSINESS MEETINGS

regions: MENA AND TURKEY

Dubai: onwards and outwards

Dubai-Square, at Dubai Creek Harbour

The UAE’s mega-developers are keeping up the pace in Dubai, while also investing in ambitious projects throughout the Gulf and North Africa. Meanwhile, beyond Dubai, leisure is opening up new opportunities, writes Graham Parker

ULTURAL and economic forces mean that the retail sector in the Gulf region has been at the forefront of innovation, embracing mixed use and incorporating leisure into schemes ahead of other, more developed markets. Emaar’s Dubai Mall attracts 70 million shoppers annually and Mall of the Emirates in Dubai, developed and owned by Majid Al Futtaim (MAF) Properties, is not far behind at

50 million annual visitors, all from the United Arab Emirate’s (UAE) nine million-resident population and eight million tourists. Clearly, these are major elements of the region’s infrastructure. To put these in context, Craig Plumb, JLL’s head of research for MENA, says Dubai is undoubtedly the leading retail location within the region. The emirate has 3.39 million sq m of retail malls, which puts it ahead of other major cities, such as Abu Dhabi

MAPIC PREVIEW • 71 • October 2018

(2.62 million sq m), Jeddah (1.21 million sq m) and Riyadh (1.17million sq m). “On an international scale, Dubai has approximately twice as much retail space per capita as London, indicating its reputation as a major international retail hub,” Plumb says.

Craig Plumb, JLL:

“Dubai has approximately twice as much retail space per capita as London, indicating its reputation as a major international retail hub”

regions: MENA AND TURKEY Dubai-based Nick Maclean, managing director of CBRE’s Middle East office, explains why Emiratis have taken the mall experience to heart: “Retail plays a much bigger social function in this region: because of the weather, malls are places where people go to spend a whole day. Shopping in itself is a leisure pursuit.”

Nick Maclean, CBRE:

“Retail plays a much bigger social function in this region: because of the weather, malls are places where people go to spend a whole day. Shopping in itself is a leisure pursuit” And that applies not just to residents but to tourists too, with up to 10% of all shopping in the region’s malls being duty free. “Because of the time spent in the malls, F&B [food and beverage] is much more prominent,” Maclean adds. “And malls have been forced to innovate to stand out in a competitive market.” He cites Dubai Mall as an example, where owner Emaar has introduced a zoo, an ice rink and an aquarium to satisfy shoppers’ thirst for novelty. And he predicts that the new Meydan One Mall will take this to an even higher level: “The retail element is relatively small, but a larger proportion of the footprint will be given over to entertainment,” he says. Meydan One Mall broke ground in March 2017 and, reflecting its importance to the Dubai economy, the event was hosted by

Meydan One’s development reflects a new focus on leisure within Dubai malls.

the emirate’s ruler, Sheikh Mohammed bin Rashid Al Maktoum. On opening in 2020, the scheme promises to redefine shopping, leisure and entertainment destinations with 620 retail units, including two major department stores and a 12,000 sq m hypermarket. The mall will also feature more than 100 F&B outlets, a 21-screen cinema and a food court hosting an additional 20 outlets. Meydan chairman Saeed Humaid Al Tayer says: “In our vision for Meydan One, we have brought together all the wonders of a retail and leisure experience into one space, making this the number-one destination for the UAE and, indeed, the Middle East. With construction now under way, Meydan One Mall is scheduled to be completed by 2020, in line with phase one of the Meydan One mega-development.” High-end luxury brands will have a specially designated shopping strip in the mall’s 400-metre long Central Canyon. Meanwhile, a retractable skylight measuring 160 metres by 100 metres will set Meydan One Mall apart from other retail des-

tinations, offering al fresco dining and shopping to its visitors. The largest dancing-water fountain in the world — measuring 380 metres in length — will be just one of Meydan One’s attractions. Another highlight will be a one-kilometre indoor ski slope, which will ensure the mall becomes a popular destination for the region’s skiing and snowboarding enthusiasts. In addition, a 23,500 sq m multi-purpose sports facility will host indoor events from football and cricket to basketball and tennis. This will be complemented by outdoor sports, including football pitches, mountain biking, walking and running trails, a skateboard park and a BMX park. CBRE’s Maclean believes retail standards in Dubai are among the highest in the world. “Dubai’s residents and expats are among the most travelled people globally,” he says. “Their expectations are high, so mall owners have to give them a reason to stay and spend.” With this in mind, Emaar has just opened a new phase at its Dubai Mall. The 100,000 sq m Fashion Avenue extension will add 150

MAPIC PREVIEW • 72 • October 2018

new brands to the offer. Maclean believes the high-end tenant mix of Fashion Avenue will help Emaar achieve its goal of welcoming more than 100 million visitors to Dubai Mall in the next three to four years. “Retail has been very profitable in the region, but performance has declined over recent years and it’s reverting to the global norm,” he adds. “As a result, landlords are having to make their malls glitzier and offer added facilities.” For its next project, Emaar has joined forces with Dubai Holding to develop Dubai Square, a 2.6 million sq m retail, hospitality and residential district at Dubai Creek Harbour. And the developers of Dubai Square are promising to integrate physical and online retail, allowing shoppers to interact with the mall’s brands via desktop, mobile or in store. Emaar Properties chairman Mohamed Alabbar says: “Dubai Square disrupts the traditional mall and retail experience. We are delivering a new destination experience where technology meets the human touch, and retail meets next-generation en-

regions: MENA AND TURKEY tertainment. With its omnichannel offering, it not only drives in-store retail, but also the online engagement of brands with customers.”

Dubai Mall’s Fashion Avenue

Mohamed Alabbar, Emaar Properties:

“We are delivering a new destination experience where technology meets the human touch, and retail meets next-generation entertainment” Although Dubai brands itself as the region’s shopping capital, it does not have a monopoly on new development. In Oman, Al Raid Group is about to complete Al Araimi Boulevard, a new integrated retail and leisure scheme in the coastal suburb of Al Khoud. Providing 147,200 sq m on two levels, the mall will house the biggest food court and the largest glass atrium in Oman. Al Raid chief executive Sheikh Fahad Abdullah Al Araimi says that leisure is as important as retail to the scheme’s success. “This world-class shopping and entertainment destination has been carefully designed to completely revolutionise the shopping and leisure experience for the entire family,” he says. “We strongly believe that spending quality time with family and friends is one of life’s great pleasures and, with this philosophy in mind, we have created Al Araimi Boulevard as an exceptional lifestyle destination to bring people together in enjoyment.” Dubai-based MAF, whose activities span shopping malls, retail and leisure, says overall revenue

Sheikh Fahad Abdullah Al Araimi, Al Raid:

“We believe that spending quality time with family and friends is one of life’s great pleasures. With this philosophy in mind, we have created Al Araimi Boulevard” MAPIC PREVIEW • 73 • October 2018

rose by 13% in the first half of 2018, largely driven by its expansion and diversification efforts. “Our financial results in the first half of the year demonstrate continued growth in the midst of challenging market conditions,” said Alain Bejjani, CEO of MAF Holding, of the results. “Our resilience is strengthened by strategic investments that will future-proof our business and people for the changing world around us.” During the first half of 2018, MAF inaugurated its first Vox Cinemas multiplex theatre in Saudi Arabia following the lifting of a 35-year ban on cinemas in the Kingdom. The move is part of the group’s plan to open 600 screens in the Kingdom over the coming five years. MAF also opened its first cinema in Kuwait. New leisure and entertainment locations were added, including three Magic Planet outlets, and the introduction of American Girl to Bahrain and Little Explorers to Saudi Arabia. The MAF Retail division, meanwhile, added 12 stores, growing its presence to 243 outlets across the Middle East, Africa and Asia. Carrefour signed an agreement with the Egyptian Ministry of International Cooperation and Investment to open up to 100 Carrefour stores in the country. In addition, Carrefour opened its largest distribution centre in the region, which acts as a central receiving and quality-control point, offering customers access to a wider range of products. The company’s portfolio of malls across the region grew to 23 destinations with the opening of two new shopping centres, My City Centre Al Dhait in the UAE and My City Centre Sur in Oman. Meanwhile, UAE developers are also looking for opportunities in North Africa. Dubai-based con-

008_FEDEX_PV_PIC

At MAPIC your packages make a star entrance Let FedEx take you to the MAPIC show in style. Guaranteed (1) door-to-door express delivery to Cannes from more than 220 countries and territories. A Very Important Package service will give your shipments the star treatment! We will ship your packages back in style from Cannes, as well. Call FedEx today!

Au MAPIC, vos colis viennent en star... Destination Cannes, FedEx vous accompagne au MAPIC au départ de plus de 220 pays et territoires. Comptez sur une livraison express porte à porte à délais garantis (2) avec une attention toute particulière réservée aux Very Important Packages. FedEx prend aussi soin de vos colis pour le retour de Cannes après le salon. 0820 123 800

0,12 € / min

fedex.com/fr

(1) Transit times may vary according to place of collection, delivery location and nature of goods carried. (2) Les délais peuvent varier en fonction des lieux exacts d’enlèvement et de livraison et de la nature des marchandises expédiées. Photo : Getty Images, FedEx — FedEx 2018.

+33 1 40 85 38 00

FedEx_MAPIC_2018_230x285_HD.indd 1

03/09/2018 09:32:36

regions: MENA AND TURKEY glomerate Al-Futtaim Group last year signed a joint-venture agreement to develop the largest mall in Morocco and one of the biggest in North Africa. The shopping centre is the fourth to be announced by Al-Futtaim in recent years, with all of them to be anchored by Swedish furniture giant IKEA. The others are in Egypt, Oman and Qatar. The joint venture also includes Marjane Holding, a leading Moroccan retail developer, and Portuguese company Sonae Sierra. The Moroccan mall will cover 120,000 sq m of retail space across two levels, including a 26,000 sq m IKEA store, an 8,350 sq m Marjane hypermarket, a 10,000 sq m leisure and fun zone, and a 3,400 sq m cinema. It will be built within the new Zenata Eco-City, a government project on the eastern border of Casablanca. Al-Futtaim Group vice-chairman Omar Al-Futtaim describes it as “a major milestone for Al-Futtaim Group”, adding: “With roughly 15% of the country’s total population concentrated in

the immediate catchment area of this development, our investment promises to yield the right returns.” Also in Morocco, Casa Anfa is taking shape. The Anfa Urbanisation and Development Agency (AUDA) is now developing the new city’s “urban living heart” at the location of the former terminal and the first control tower of the old airport of Anfa. The scheme will feature a number of components dedicated to leisure — including a cinema, bowling alley, ice rink and fitness facilities — as well as a 5,000 sq m hypermarket and basement parking with a minimum capacity of 800 places. Meanwhile, Turkey’s ongoing currency crisis is casting doubt on the viability of new mall development in what has been one of Europe and Asia’s most expansionist markets, with much of the country’s construction programme financed through dollar- and euro-denominated loans that have suddenly become much more expensive. Research from Colliers International found that, at the mid-

MAF is to open a series of VOX Cinemas in Saudi Arabia.

point of 2018, Turkey’s stock of shopping-centre space had grown to 12,331,925 sq m across 396 schemes. This represents a 5% rise in just six months. Colliers calculates another 660,000 sq m of leasable space will be added to the current stock by the end of 2018. And with 65 new shopping centres set to open in 30 provinces by the end of 2020, the total leasable area will reach 14,372,000 sq m. However, against this backdrop of increasing supply, Colliers notes that pedestrian traffic is

declining, partly reflecting the increased penetration of online retail and partly as a result of the impact of inflation on shoppers’ spending power. At the same time, a number of global brands, faced with the crippling cost of importing their stock, have withdrawn from the Turkish market. Colliers cites foreign brands such as C&A, Debenhams, Douglas, Esse, GNC, La Senza, River Island and Top Shop as examples. Colliers forecasts that Turkish developers will react by upping their exposure to F&B and leisure to counter reduced retailer demand and to provide new reasons for shoppers to visit their malls. Both the United Brand Association of Turkey and Istanbul Apparel Exporters’ Association will be at MAPIC promoting both opportunities within Turkey and Turkish exports.

CONFERENCES & EVENTS AT MAPIC DESTINATION: MIDDLE EAST Wednesday 14 November - 14.30-15.30 Conference Room 2 - Palais -1 DESTINATION: AFRICA Thursday 15 November - 15.30-16.30 Conference Room 2 - Palais -1 DESTINATION: TURKEY Thursday 15 November - 16.30-17.30 Conference Room 2 - Palais -1

The leisure-led Al Araimi Boulevard will open in Oman.

MAPIC PREVIEW • 75 • October 2018

051_RM PAVILION US _PV_PIC

VISIT USA PAVILION

MAPIC invites you to discover the latest news from the retail landscape in the USA. Join us to meet the leading American developers, architects, lawyers, brokers and retailers at the US Pavilion.

DEDICATED CONFERENCE & EVENTS open to all

USA CONFERENCE Wednesday 14 November – from 11.00 to 13.00 Verrière Grand Auditorium, Palais des Festivals Gold sponsor

Silver sponsor

USA COCKTAIL Panel session followed by networking cocktail, 13.00 Verrière Grand Auditorium, Palais des Festivals

US HAPPY HOUR Wednesday 14 November – 16.30pm US pavilion

MEET THEM ALL AT THE US PAVILION Stand number P-1.D80

regions: NORTH AMERICA

US remains a brand of opportunity

Dallas development Grandscape is creating ‘100 reasons to visit’.

The North American retail real estate transformation continues, as once-venerated brands such as Toys ‘R’ Us disappear from the landscape, making room for retailers and experiences that are more relevant to today’s consumers. Debra Hazel reports

OW PAST the initial shocks of the revolution, North America’s retailers and their high-street and shopping-centre landlords are adjusting to the new market reality, adding new experiences — especially food and beverage (F&B) — going local, and using technology to maximise efficiency. Their goal: to go where the shoppers are and give them what they want, even if it means taking some financial risks on entrepreneurial tenants. “People are bored,” says Melina Cordero, head of retail research, the Americas, at CBRE. “It’s now a matter of ‘credit versus cool’.”

Melina Cordero, CBRE Americas:

“People are bored. It’s now a matter of ‘credit versus cool’” North America’s physical and digital retailers are following what’s happening out in the world — with some surprising results, says Bryce Turner, chairman of DDG BCT Architects in Baltimore. Many believed the tech revolution would give people more leisure time. Instead, the ability to work from anywhere means that more

and more people work nearly all of the time. To draw their attention, experience increasingly is key: dining out, fitness, high tech, experiencing internet brands in person and customising merchandise for those who “want it their way”. “The great spaces have been focused on retail, and food and beverage,” Turner adds. “Think of the laptop/coffee-shop phenomenon. People want to see and be seen.” Shopping-centre owners are also rethinking their strategies, becoming more diverse and experiential to draw an audience. This includes a growing focus on F&B, with some

MAPIC PREVIEW • 77 • October 2018

properties looking to devote as much as 30% of their space to dining — up dramatically from the 10%-15% that had been the industry norm. “Food and beverage is the new anchor,” CBRE’s Cordero adds. Food and entertainment will be a major component of Grandscape, a mixed-use complex in The Colony, north of Dallas, Texas, according to Jeff Lind, Grandscape president. The first phase, the Nebraska Furniture Mart, opened in May 2015, with an additional 700,000 sq ft (65,032 sq m) of retail, entertainment, restaurants and office space to open in two phases in mid-2019 and March 2020.

031_PARAMOUNT_PV_PIC

The World’s Only Global Retail & Leisure Property Deal-Making Forum

The Industry’s 14th Awards Ceremony

3 April 2019, Universal Studios Hollywood Los Angeles, US

1-2 April 2019, Rose Bowl Stadium Los Angeles, US

www.rli.uk.com/awards In Association With

Headline Sponsor

Connecting the World of Retail & Leisure Global Partner

Mapic Ad - V2.indd 1

26/09/2018 17:00:11

regions: NORTH AMERICA “Our vision has always included a strong F&B component with many first-in-market choices for visitors,” Lind says. “Because of this, we are bringing in top restaurant operators, Michelin-star concepts, and famed author/chefs and restauranteurs to showcase the importance of not only F&B, but the overall experience within Grandscape. In addition, we have placed emphasis on leisure concepts as another large part of what makes Grandscape different. Our goal is to create over 100 reasons for visitors to come to Grandscape, experience something new and leave knowing it was time well spent.”

Jeﬀ Lind, Grandscape:

“Our goal is to create over 100 reasons for visitors to come to Grandscape, experience something new and leave knowing it was time well spent”

Eugene, Oregon is one of the breakout retail locations.

Innovation is taking place as landlords look for smaller retailers and restaurants, especially if they are unique. Landlords continue to target local entrepreneurs, as well as e-commerce players looking for physical stores. “We are actively seeking firstto-market players,” Lind says. “Whether those are clicks-tobricks, first in Texas or first in the United States, we are focused on bringing new to Grandscape. We are focused on mixing in the best of retail from around the world and giving them the opportunity to showcase their brand in what we believe will be one of the finest centres in the US.” Also positioning for change, in Canada Ivanhoe Cambridge will open the first Cirque du Soleil

Cirque du Soleil’s Creactive will open at Vaughan Mills in 2019.

family entertainment centre, Creactive, at Vaughan Mills in 2019. The 24,000 sq ft space will include acrobatic, artistic and other Cirque du Soleil-inspired activities, including bungee jumping, wires, trampolines and juggling. “This partnership speaks to the transformation of our shopping centres into holistic experience destinations for the benefit of our customers,” said Claude Sirois, president of retail at Ivanhoe Cambridge, in the July announcement. The result will create projects that evolve in an organic way, especially in older, industrial cities that are engaging in adaptive reuse.

Claude Sirois, Ivanhoe Cambridge:

“Creactive speaks to the transformation of our shopping centres into holistic experience destinations” “We lost touch with the idea of the agora as we started doing centrally planned developments,” DDG BCT’s Turner says. He adds that this new movement is happening outside the gate-

MAPIC PREVIEW • 79 • October 2018

way cities, where rents are not so high: “There is a lot of innovation in Austin, Baltimore, Nashville and Eugene, Oregon.” Perhaps the greatest adjustment landlords are making is reaching out to local tenants — a huge shift from relying on creditworthy national names. “It’s risky,” CBRE’s Cordero acknowledges. “But companies that have the ability to take that risk capital wise can mitigate that risk.” She adds that some landlords are taking equity stakes in retailers. With store closures in the thousands last year and continuing into this year, landlords now have the opportunity to experiment, and retailers, restaurants and other users can enter markets they might not have considered before. “There is no decline in interest in gateway cities, even if they are expensive,” says Gary Sankary, retail industry manager of Esri, based in Redlands, California. “If you get it right, New York is a great proposition.” Indeed, the sky-high rents in the major thoroughfares of gateway cities such as New York are moderating from their stratospheric highs. “In certain pockets, rents grew faster than retailers could handle, and there is a slight correction,” says Lee Block, executive vice-president and partner of Winick Realty Group, a New York-based retail brokerage. Meanwhile, both retailers and real estate owners are open to experimentation. Larger tenants are opening short-term boutiques in interesting spaces — and landlords are accommodating them. “We’ve seen many national and international companies take on opportunities, both for short-term and longterm leases,” Block adds. “In certain markets with more availabilities and that have softened, we are seeing landlords offering reduced rents for shorter terms to activate spaces and invigorate neighbourhoods.”

011_SIXT_PV_COM 030_SIXT_PV_TV

Up to 10% discount for visitors and exhibitors (sixt - official car rental supplier of Reed Midem) Call +33 (00)1 44 38 55 55 and state the promotion code 9963828

regions: NORTH AMERICA This particularly appeals to those retailers turning from clicks to bricks, which can now take advantage of softening in markets such as SoHo. Block points out that Galvan London recently debuted at 355 West Broadway after the landlord gut-renovated the boutique building to attract a credible, fashionable retailer. “Galvan understood the work the landlord did, and we hope to continue our relationship with

them into the future,” he adds. But despite the expense, gateway cities remain appealing. “People still focus on gateway cities, including Los Angeles, San Francisco and New York,” CBRE’s Cordero says. “But also, they’re looking at Boston, Washington, DC, Austin, Texas and Seattle.” The same is true in Canada. CBRE’s 2018 Canadian Real Estate Market Outlook notes that prime locations in major mar-

kets have been repurposed and re-leased for higher rental rates, while tertiary malls remain challenged. “Retail, which is viewed as the commercial property type most at risk from technological innovation, is a sought-after property type by investors. Retail investment volumes grew again in 2017 and the push to reinvent malls and intensify transit-oriented retail properties is expected to ramp up in 2018,” the report says.

Technology is still having an effect. Many retailers are choosing to open fewer, more experiential prototypes in these cities. Fewer luxury retailers are seeing the need for expensive flagships that served as advertising vehicles as much as stores. “With the internet, you can reach as many people with a tweet,” Cordero points out. “Does it make sense to have one loss leader? It’s now more quality over quantity for

F&B AND LEISURE DEFINE NEW AMERICAN MALL THE EXPERIENTIAL evolution of North American shopping centres dovetails with the timing of the most extravagant new blend of retail, dining and entertainment, American Dream Meadowlands in East Rutherford, New Jersey, which is now scheduled for a spring 2019 opening, with some entertainment elements to debut in autumn 2019. The development, originally known as Meadowlands Xanadu, struggled for years to be completed. Edmonton, Alberta, Canada-based Triple Five Group, the owner of Mall of America and West Edmonton Mall, took over the mostly completed centre in 2010, re-leasing and adding entertainment components including a Nickelodeon Universe theme park, DreamWorks Water Park, Sealife Aquarium, Legoland Discovery Centre, skating rink, Kidzania, CMX Luxury cinema, as well as the existing indoor ski slope. These join traditional and luxury retail including H&M, Zara, Hermes, Primark and a significant dining collection. The lease plan of 55% food and entertainment/45% retail remains intact, reports

Lincoln Palsgrove, vice-president of communications for American Dream. “Globally, food is very much a trend,” Palsgrove says. “People want to know how a dish has been made, where the ingredients have been sourced.” In August, American Dream announced that it would open the world’s first Munchies Food Hall, a partnership with the food and culture site from Vice. The 38,000-sq ft hall will house 18 vendors that will take leases of varying lengths. The site also will include space to film various vendors, product demonstra-

tions and more. The project also will include a Kosher food hall. “Munchies will be home to some of the most unique experiences in the country,” Palsgrove says. “What it also will do is provide small businesses with the opportunity to come into the project — it’s plug and play. This model will break a lot of moulds.” He adds that a sister project, American Dream Miami, is progressing through the approval process in Florida. “It’s the answer to the way consumers behave today.” The trend towards a greater percentage of dining and entertainment has even ex-

American Dream aims to “break a lot of moulds” with its F&B.

MAPIC PREVIEW • 81 • October 2018

tended to the outlet sector, says Lisa Quier Wagner, a principal at The Outlet Resource Group, Chicago. “This is being driven by a desire to offer customers a broader mix of activities at the centre to complement the shopping. As time is the most valuable commodity that any of us have, centre owners are seeking to give customers the most complete experience they can in exchange for their having dedicated time to visit the centre,” Wagner says. “Thus, if we can offer quality dining options, which is in line with what the demographics of our customer base desires, that extends dwell time and ‘rewards’ the visitor.” She adds: “Entertainment can be a draw unto its own or an added attraction, and we certainly see cases of a group or family dividing up and some partaking of the entertainment offer while others shop. Outlets are the only form of retail that consumers consistently tell us remains fun — so it still is entertainment of a sort, but not every consumer loves to shop, so the excitement of outlet shopping may be lost on the unenlightened!”

012_AZUR_PV_TV 012_AZUR_PV_TV

Your helicopter transfer NICE - CANNES

160e/pers SAINT-TROPEZ

MONACO

Your helicopter flight between Nice and Cannes 7min

Car service in Cannes

Handling Service at Nice airport

1 cabin bag (Extra luggage : +50â&#x201A;¬/bag)

CANNES

NICE

LY O N

COURCHEVEL

BOOK YOUR FLIGHT +33 (0)4 93 90 40 70 & info@azurhelico.com

www.azurhelico.com

regions: NORTH AMERICA retailers as they rethink their store strategies.” Meanwhile, Esri’s Sankary reports that value retailers, including dollar stores and Aldi, continue to expand rapidly and are looking outside the traditional towns and cities. And these stores are relying on technology to help them determine their sites. “That’s what’s been so interesting to watch,” Sankary adds. “For example, an auto-parts reseller likes to be in the same centre as Kohl’s and Chick-fil-A. There’s a halo effect. They’re becoming very sophisticated.” Even stores are diversifying, adding new experiences to entice visitors. As with shopping centres, many stores now offer some sort of cafe. “There are a lot of interesting things going on,” DDG BCT’s Turner says. “Small local ventures [want to] offer a new experience — and putting food in your store creates that experience.” Meanwhile, the e-commerce brands must eventually decide whether they are consumer goods or logistics companies. “All companies are different, but they are all leveraging digital data to help inform their brick-and-mortar strategy,” CBRE’s Cordero says. “We have more data than ever before about where the customers are. I advocate a strategy

Coach makes it personal.

based on what customers do and who they are.” Increasingly, those customers want personalised merchandise — and retailers are rising to the challenge. Coach, for example, has developed Coach Create, which allows shoppers to customise their bags. “Particularly exciting is the way this personalisation resonates with millennial customers,” says Coach president and CEO Joshua Schulman. He adds that, in many stores globally, this customisation is performed on site by a Coach craftsman while the customer shops — “a point of differentiation from other brands that offer personalisation”. Coach is also continuing to expand its monogramming service, which is now available at more than 50% of its global direct-retail fleets, immersive craftsmanship bars and monogramming stations.

Data research is leading Aldi’s expansion strategy.

Landlord renovation at 355 West Broadway enticed Galvan London.

Such innovations represent a shift to ensure the company remains connected with its consumers. Victor Luis, CEO of Coach parent company Tapestry, says the company is now a true “house of brands” after last year’s acquisition of Kate Spade: “We announced several important business-development initiatives during the year, which allow each of our brands to assume greater direct control over their international distribution and, in keeping with our strategic priority, maximise the opportunity with Chinese consumers globally across our portfolio.” Tapestry has entered into purchase agreements to acquire Kate Spade’s operations in Singapore, Malaysia and Australia, as well as the Stuart Weitzman business in Southern China. Luis adds: “Fiscal 2019 will be a pivotal year at Kate Spade. We will focus on global expansion, notably in China, where the brand is nascent and we see boundless opportunity.”

MAPIC PREVIEW • 83 • October 2018

Esri’s Sankary concludes: “Even the most aggressive forecasters believe that in-store sales will be at least 80% of total sales. But customers who can access goods on all channels are three to four times more likely to buy. I like the term ‘unified commerce’ over omni-channel. The space race here is to get to the customer. The retailer is realising that the customer is more valuable if you engage in multiple channels. Studies have shown that customers who engage across multiple channels are three times more valuable than single-channel customers.”

CONFERENCES & EVENTS AT MAPIC

DESTINATION: USA Wednesday 14 November - 11.00-13.00 Verrière Grand Auditorium - Palais 1 ARE CULTURE & EDUCATION THE FUTURE OF SHOPPING CENTRES? Thursday 15 November - 10.00-11.00 Conference Room 1 - Palais -1 ALL YOU NEED IS LOGISTICS! Thursday 15 November -14.30-15.30 Conference Room 1 - Palais -1

029_AEROPORT_PV_COM 010_AEROPORT_PV_TV

TREAT YOURSELF Indulge a little shopping IN ONE OF THE MANY AIRPORT SHOPS

10 %

Present your delegate badge to benefit from a discount in the Nice airport stores featuring the worldâ&#x20AC;&#x2122;s most prestigious brands.

#AEROPORTNICE

351 MPIM 230x285.indd 1

www.nice.aeroport.fr

24/01/2018 01:56

regions: ASIA

China delivers tomorrow’s retail today

Unstaﬀed stores, mobile payments, drone delivery, robotics — in Asia, the future of retail is already a reality. A growing middle class, rapid take-up of online commerce and mobile shopping, plus an insatiable appetite for innovation are making this region the retail sector’s playground, writes Helen Roxburgh

HINA remains the dominant market in Asia, with retail sales in 2017 hitting $5,781bn, of which more than 19% was from online shopping. But other markets are seeing impressive growth: India’s retail market is predicted to reach $1tn — growing over 60% — by 2020, according to ASSOCHAM and MRRSIndia.com, while a report by Google predicts that the internet economy of Thailand, Indonesia, Malaysia, Singapore, Vietnam and the Philippines will hit $200bn by 2025. “Strong economic growth over the years has led to a large and fast-growing retail market in Asia,” says Wilson Tan, CEO of CapitaLand Retail. “A substantial proportion of Asian consumers are millennials with an experiential mindset that is

highly receptive to retail innovation. Adding to the retail buzz in the region is the rise of a key emerging market, China, which has a booming middle class that is fuelling the expansion of shopping malls, and a tech-savvy population that is big on online shopping and mobile-based transactions.

Wilson Tan, CapitaLand:

“A substantial proportion of Asian consumers are millennials with an experiential mindset that is highly receptive to retail innovation”

Tan adds: “To better cater to the evolving lifestyles of Asian consumers who are increasingly shopping both in stores and online, mall operators and retailers are enhancing their store experience, online presence and back-end data metrics to obtain a 360-degree customer view that aggregates data from various touch points.” Retail experts are talking about Asia’s ‘New Retail’ — a fully integrated, data-heavy retail offer that puts the consumer at its centre, both on- and offline. “Omni-channel is simply the seamless combination of online and offline — ‘New Retail’ takes it one step further and brings the consumer into the picture as well,” says James Hawkey, head of retail for China at JLL. “The idea is that the consumer, and all that feedback from the consumer, will play

MAPIC PREVIEW • 85 • October 2018

a bigger and bigger part in retail, through all types of feedback, both online and offline. So shops stock stuff because they know people like it, people have asked for it, viewed it and shared it, so you can impact on the production process as a consumer.”

James Hawkey, JLL:

“Omni-channel is simply the seamless combination of online and oﬄine — ‘New Retail’ takes it one step further and brings the consumer into the picture as well”

009_CHABE_PV_PIC

UPGRADE YOUR MAPIC EXPERIENCE WITH OUR CHAUFFEURED-CAR SERVICE

Airport transfer Nice Airport – Cannes: €120* (Sedan) or €140* (Van–7 Pax)

Evening offer: €340* 4-hour bespoke service

Personalized pick-up at Nice airport

Ask our bilingual and experienced chauffeurs for any transportation need you might have during your stay

Sedan : Mercedes E Class or equivalent, Van : Mercedes V-Class

*10% VAT included – Subject to conditions

RESERVATION call +33 4 93 43 90 91 | cannes@chabe.fr Chabé Cannes Office: 11-13 rue Latour-Maubourg - 06400 CANNES - Open 24/7

www.chabe.fr Paris • Geneva • Lyon • Marseille • Cannes • Courchevel • Toulouse • Biarritz • Bordeaux

regions: ASIA Alibaba, which has the largest marketplace in the world, and Beijing-based online retailer JD.com are the pioneers in this sector. Alibaba recently struck a delivery partnership with Starbucks and is investing in its network of 60 Hema stores [See box], which double as e-commerce distribution hubs. Consumers can also pick out fresh groceries and have in-house chefs cook food for them. JD, meanwhile, is aggressively pursuing futuristic stores — including smart cars to drive consumers to relevant aisles — and building a sophisticated distribution system that includes drone deliveries and high-tech warehouses. China’s unmanned retail sector is expected to triple in size to £7.5bn by 2020, according to iResearch. Alibaba, JD and WeChat parent Tencent have all opened automated stores over the past year. Meanwhile, quick food service retailer KFC has introduced sophisticated facial-recognition technology that lets customers order using only their faces. In China, much of this technology is facilitated by extremely convenient and efficient mobile-payment systems, namely Alipay and WeChat Wallet. China is still the leader in mobile-payment adoption with more than 60% of the worldwide user base in 2018, according to eMarketer. Retail developers are also innovating. CapitaLand, which has 70 malls in Singapore, China, Malaysia and Japan, has created its own e-commerce payment system called StarPay. The developer’s new Funan shopping mall in Singapore is its first ‘online-and-offline shopping mall’, with smart-car parking, a cinema, theatre, workshops and a 24-hour click-and-collect drivethrough, with a robotic arm that

Funan, Singapore is CapitaLand’s ﬁrst ‘online-and-offline’ mall, with robot-serviced click-and-collect.

vices such as free prescription lenses that are inclusive of the frame price. Your eyes can be tested in the store and your personalised glasses made within 30 minutes.”

Vivek Kaul, CBRE:

Alibaba founder Jack Ma at the opening of a Hema store.

collects parcels using a QR code. “With the benefit of being a new development, Funan’s hardware and software has been wired differently, so that it is ready to plug into the ‘phygital’ [physical plus digital] world of today’s consumers when it opens next year,” Tan says. To draw online savvy consumers back to physical shopping requires motivation in the form of better in-store service and more unique experiences. “A lot of retailers are offering customisation

and DIY components within their stores and restaurants,” says Vivek Kaul, head of retail, advisory and transaction services, Asia, at CBRE. “Furthermore, adopting technology to increase productivity — using self-ordering kiosks in fast-food restaurants, robots to fry, and online and social media interactions to increase customer satisfaction — is also improving the customer experience. In the optical industry, for example, Japanese brands JINS and Owndays provide ser-

MAPIC PREVIEW • 87 • October 2018

“Using self-ordering kiosks in fast-food restaurants, robots to fry, and online and social-media interactions to increase customer satisfaction is also improving the customer experience” Longfor, founded in 1993, has built a nationwide presence in China, and was one of the first mall developers in China. Longfor has been developing and operating commercial properties for over 18 years

regions: ASIA

CHINA’S TECH TITANS CALL THE CHANGES IN SUPERMARKETS IN CHINA mobile phones play a central role, writes John Ryan. The smartphone is ubiquitous in most countries these days, but its omnipresence in the world’s most populous nation it still remarkable. And in retail there are two major players that are making most of the running as far as both m-commerce and its physical manifestation in the cities are concerned: Alibaba and JD.com. The former is headquartered in Huangzhou and, as well as being the operator of proprietary mobile-phone payment system Alipay, it is rapidly making inroads into the supermarket sector with its Hema format. This is a supermarket that is as much an eating destination as a place to buy groceries — and the key to almost all of its operations is the mobile phone. Used to gain entry to the store, to order food to eat

and has developed three major brands, namely Paradise Walk, serving as regional retail facilities in rural/suburban centres or transportation hubs, Starry Street as community malls providing daily shopping needs for residents nearby and MOCO for mid- and high-end household and lifestyle shopping. To date, it has opened 28 malls with a total area of more than 2.8 million sq m and housing over 4,000 brands including about 200 strategic co-operation brands. In 2016 Longfor launched a new strategy, “We in, We fun” and “Space as a Service”, for its overall commercial portfolio, delivering a message that every Paradise Walk and Starry Street in the future will be positioned as a 24-

in one of a branch’s several eating areas via a scanned RFID code and to checkout (although more conventional payment methods are available), this is homage to the power of digital. Shoppers can even watch online order bags being conveyed around the store using an overhead conveyor-belt, prior to being despatched and delivered in under 30 minutes within a 3km radius of the store. Yet while this is a commercial proposition that takes digital as a starting point, the interior of a Hema store is about leisure and entertainment, with close to 50% of store revenue coming from those who dine within — a sharp contrast to the West. Currently, there are close to 50 Hema stores, and they are all large, across China, from a standing start in 2017. The same preoccupation with the phone occupies the

JD.com 7Fresh supermarket in Beijing. Shoppers can select exotic fruits from a display and see information about them appear on a mirror above the tiered table or simply sit down and use their phone to play a game at one of the kiosks dotted around the store. Like Hema, payment via smartphone and facial recognition is commonplace — and once

hour entertainment experience. Going forwards the company aims to locate new malls at major transit hubs, positioning for each project as a digital orient-

ed operation and with 10 to 15 malls opening annually. Founded in 1997 in Shanghai, Icicle is a high-end and eco-friendly fashion brand with

Digital revolution: JD.com’s 7Fresh format.

Longfor’s Paradise Walk, positioned as a 24-hour entertainment experience.

MAPIC PREVIEW • 88 • October 2018

again, it is the in-store restaurant that is the star. While technology is put to good use, retail technology that works with old-fashioned visual merchandising and human interaction is key to making both 7Fresh and Hema work. And this looks like a revolutionary model that has the potential to expand beyond China.

a philosophy in search of the harmony between human and nature. Icicle products are made of pure and natural materials, including organic cotton, linen,

regions: ASIA

silk, wool, cashmere and the brand has increased its market shares strongly in China, with store numbers rising to 249 and plans to develop the brand in France, the UK, Italy, Germany, Switzerland, the US and Japan. In the summer of 2019, Icicle will open its first overseas store on George V Avenue in Paris. Malt Lab, a brewing brand that operates two bars in Shanghai, is looking to pioneer a new experiential solution for craft drinks in high-end food courts. Part of the appeal of its bars is the unique experience and the ability to see the drinks being made,

as well as regular brewery tours and events. “When you’re sitting at the bar, you can see the beer is directly in front of you, and the beer is coming directly from the tank to the tap. We have no keg between the tank and the tap, so it’s very fresh and we can brew very quickly,” says Chloe Berndt, Malt Lab director. She adds: “In China, consumers want to learn — they like to learn new things.” In developed retail markets such as Singapore and China, F&B has moved from a traditional 20% of the trade mix to as high as 50%. Many international en-

tertainment operators are also taking retail space, such as Merlin Entertainments with its Legoland Discovery Centre, along with an enormous array of other 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. “Given that purchases of goods can now be made with a few clicks on a mobile, shopping malls need to evolve from being mere collections of stores and products to become lifestyle destinations that deliver unique experiences to con-

sumers,” CapitaLand’s Tan says. Physical stores are also still expanding across Asia. This year saw a landmark in India with the first 400,000 sq ft (37,161 sq m) IKEA store opening in Hyderabad, 12 years after the homewares brand first started looking at the Indian market. IKEA says it is expecting six million visitors in its first year of opening. It is offering Indian shoppers some 7,500 products, along with plenty of local customisation to reflect cultural sensitivities, such as chicken meatballs in the cafe, rather than the classic Swedish beef meatballs. By 2022, sales of homewares

COUNTRY FOCUS: THE INDIAN PAVILION THE INDIAN Pavilion at MAPIC will host a number of Indian developers and brands, keen to share their projects and formats, and has been organised by government body the Federation of Indian Export Organisations, Ministry of Commerce. Among the exhibitors is Infiniti Mall, which will be showcasing Infiniti Mall Malad and Infiniti Mall, Andheri, both in Mumbai. Malad has around 200 retailers, seven restaurants and a revamped family entertainment centre called Funcity and a PVR Cinemax. Andheri has 65 retailers and four restaurants and also has a revamped Funcity and PVR Icon cinema. DLF CyberHub integrates F&B and entertainment.

Meanwhile, exhibitor Raymond is a diversified group with majority business interests in fashion and FMCG. The company says that it produces “the finest fabric in the world”, with over 1,100 stores spread across 380 cities and a network of over 20,000 pointsof-sale in India. It will be promoting its branded fashion portfolio, primarily in mens clothing and consisting of various brands - Raymond, Park Avenue, Parx, Color Plus, Next Look and Ethnix. Located in Bengaluru, India, Bhartiya City integrates homes, work spaces, shopping spaces, a hospital, school, parks and bike paths and City Centre scheme will provide a strong mix of

F&B, entertainment, education centres, services for families and event spaces — in addition to around 150 stores. City Centre features a shopping centre, high street, Ramblas indoor/outdoor concept, a convention centre, cinema, Celebration Square and Leela hotel. DLF will be featuring a number of its developments, including DLF CyberHub, India’s first integrated F&B and entertainment destination. It houses over 75 food brands under one roof and has an average daily footfall of 30,000, catering to the working professional in the Cyber City office complex and vicinity on weekdays and families at the weekend.

Bhartiya City will include a Ramblas concept.

MAPIC PREVIEW • 89 • October 2018

regions: ASIA in India are expected to reach $15.3bn, according to Euromonitor International. More IKEA stores are reportedly set to open across India, as well as in the Philippines, Vietnam and Thailand. A host of factors have come together to make now the right time for international retailers in India, including a shift towards organised retail, improved business models, changing demographics and rising incomes. India’s e-commerce sales are also forecast to climb 31% by the end of 2018 to reach $32.7bn, according to eMarketer, which would put the country in third place in Asia-Pacific, behind China and Indonesia. Luxury car brands are seeing new areas of growth in Asia. China alone accounts for almost 32% of the overall global value of luxury-car sales. “Interestingly, it’s more and more acceptable

Chinese fashion retailer Icicle will start its European expansion in Paris.

for a shopping mall to have cars as a component,” says JLL’s Hawkey, using the example of the new Tesla and NIO showrooms in the Taikoo Hui development in central Shanghai. “I think about 10 years ago, people looked down on that. But now, cars have essentially got more interesting — and the way people do car showrooms has become quite a lot more interesting.” Grocery brands are also enjoying a boom. In August, Kroger announced it was partnering with Alibaba to sell products in China, venturing outside the US for the first time. Meanwhile, US grocery giant Walmart has partnered with JD to host a hightech store where customers can buy Walmart products using a virtual store and smartphones. The two companies invested $500m in August in online de-

042_MOVE NOW_PV_PIC

Guiding clients with tailored transaction and advisory services Having successfully brokered transactions on more than one million square meters of retail space, between luxury retailers and their landlords in fifteen different cultures and on three continents, we have learned from the very best in the business. It has enabled us to establish a unique expertise in all aspects of luxury retail space and commercial retail real estate. Discover the benefits of working with a firm, unlike any other in the industry, which has two decades of experience in the market, working in real estate for luxury brands across three different continents. Our strategic advice, market insight and intelligence enables you to always be one step ahead. Comme visit our booth P-1.J50

www.movenow.com

MAPIC PREVIEW • 90 • October 2018

regions: ASIA

Shirley Zhu, IGD:

“South Korea, China and Japan are leading the way in online grocery shopping. Logistics and payment will be the key barriers to overcome for India and most South-East Asian countries” livery firm Dada-JD Daojia. Major players have been investing in India’s grocery market, too. Amazon sells groceries via Amazon Pantry, while Walmart also recently bought 77% of Flipkart, the country’s leading marketplace, with plans to

Online meets offline with Walmart’s plans for Flipkart.

strengthen its grocery offering. And Alibaba has invested in Indian online grocer bigbasket. Asia’s online grocery channel is set to grow by $176bn — a huge 194% increase — by 2022, according to international research organisation IGD, making it the

fastest growing retail channel in the region. “The penetration, size and growth of online grocery varies greatly by country,” says Shirley Zhu, programme director at IGD. “South Korea, China and Japan are leading the way in online grocery shopping and will

see the highest sales contribution from grocery e-commerce, while continuing to lead the development in the region. Logistics and payment will be the key barriers to overcome for India and most South-East Asian countries. Although these markets are expected to have the fastest growth, the market share of online grocery will remain small.” Asia’s retail markets are witnessing a key time of growth, fuelled by enthusiastic, young populations who do not see any difference between online and offline shopping and are keen to experiment with new technology. “We are very soon going to be in a position where making a distinction between e-commerce and physical commerce is ridiculous,” concludes JLL’s Hawkey, “because already it doesn’t describe the world we live in.”

CONFERENCES & EVENTS AT MAPIC DESTINATION: ASIA Thursday 15 November - 14.00-15.30 Conference Room 2 - Palais -1

Ice skating in one of the many leisure offers at Suzhou Centre Mall.

MAPIC PREVIEW • 91 • October 2018

RESHAPING RETAIL WITH A NEW CONNECTED CONSUMPTION EXPERIENCE Wednesday 14 November - 15.30-16.30 Room 1 - Palais 1

MAPIC AWARDS 2018

THE JURY President of the jury

Innovation showcased

at MAPIC Awards

Tom MEAGER Group Director of Property Primark United Kingdom

Alain BOUTIGNY Editor-in-Chief Sites Commerciaux France

Thomas DEVONSHIRE -GRIFFIN Managing Director, Russia and CIS JLL Russia

Edoardo FAVRO CEO Ceetrus Italy SpA Italy

Barry Spencer HUGHES Design Director Benoy USA

Laurence KARSENTI Head of European Leasing Thor Equities USA / Europe

Mayte LEGEAY Senior Asset Management Europe - Head of the Outlet Platform Resolution Property United Kingdom

John STRACHAN Chairman Intu properties United Kingdom

Klaus STRIEBICH CEO RaRE-Advise Germany

Wilson TAN CEO CapitaLand Retail Singapore

Justin TAYLOR Head of EMEA Retail Cushman & Wakeﬁeld LLP United Kingdom

Franck VERSCHELLE CEO Advantail France

This year’s MAPIC Awards have been broadened to reﬂect the growing diversity of retail real estate and the new players inﬂuencing the future of the sector

HE MAPIC Awards will be presented at a gala ceremony on Thursday November 15, at the Salon des Ambassadeurs, Palais des Festivals, in Cannes — this year in 13 categories. A hugely experienced awards jury — headed once again by Primark group director of property, Tom Meager — and drawn from all areas of the retail world and all corners of the globe, made the ﬁnal decision for the best in class of 2018. The new category for 2018 is Best Shopping Centre Innovation, reﬂecting that as shopping becomes more connected and as digital continues to radically change the customer journey, shopping-centre developers are increasingly looking for innovative ways to attract new customers to their projects. This Award will honour the most outstanding examples of innovative tech solutions in shopping centres. This category is open to startups, service providers and shopping-centre developers and two dedicated Jury members will add their views on this category.

The 13 other categories for this year are: • Retailer Of The Year • Best Retail Global Expansion • Best New Retail Concept • Best Retail Store Design • Best Leisure Concept In A Retail Space • Best O2O Strategy • Best Pop-Up Shop • Best New Shopping Centre • Best Redeveloped Shopping Centre • Best Outlet Centre • Best Retail Urban Project • Best Futura Shopping Centre • Best Shopping Centre Innovation The growing reach of the Awards was reﬂected last year in winners which included Nike, Flying Tiger Copenhagen, Rapha, Adidas, iFly World, Digital Mall, Imad’s Syrian Kitchen, Nespresso, Victoria Gate, Chadstone Shopping Centre, Hoog Catharijne, Prado and Wanda. Aeon Mall is the MAPIC Awards 2018 Global Sponsor and the ceremony will be attended by over 300 of the most inﬂuential retail real estate professionals. For ticket information please contact MAPIC Awards co-ordinator Laurene Dureault at mapic.awards@reedmidem.com

MAPIC Awards 2018 Global Sponsor

MAPIC PREVIEW • 92 • October 2018

BEST SHOPPING CENTRE INNOVATION

DEDICATED JURY

Isabelle HERVOUET Group Director of Digital Unibail-RodamcoWestﬁeld France

Karen HARRIS Managing Director intuDigital United Kingdom

TRANSFORMING REALITY: PHYSICAL IN THE AGE OF DIGITAL

©Julien Lutt

200+ INTERNATIONAL EXPERTS WILL SPEAK AT MAPIC

Ronan Bole Director of Operations France AMAZON

Philippe Chainieux CEO MADE.COM

Fabien Stutz Sr. Director RE & Construction NIKE EMEA

Eddie Kemsley CEO KIDZANIA

Ronald Menzel Founder & Chief Strategy Officer DREAMSCAPE IMMERSIVE

Grigory Pecherskiy Managing partner ADG GROUP

Antoine Frey President, CNCC Chairman, FREY

Francoise Dechesne Managing Director Netherlands/Belgium MULTI

Christian Dubois Head of Retail France CUSHMAN & WAKEFIELD

Mélanie Guilldou EVP Foodservice Global LAGARDERE TRAVEL RETAIL

Raimund Paetzmann VP Corporate Real Estate ZALANDO

Thomas Kouck Managing Director VENTE-PRIVÉE ENTERTAINEMENT

Kajsa Hernell General Manager NORDIC COUNCIL OF SHOPPING CENTERS

Jamie Taylor Retail, Property & Wholesale Director L’OCCITANE EN PROVENCE

Edward Cooke Massimo Moretti CEO President, CNCC ITALY General Manager, CDS HOLDING REVO

Isabella Lazzini Marketing & Retail director, CBG HUAWEI ITALY

Wilson Tan CEO CAPITALAND RETAIL

Gloria Siu Leasing General Management K11 CONCEPTS

Richard Flint International Director HEMA

Bulat Shakirov President, RCSC CEO, PRAKTIKA

Matteo Perino Chief Operations Officier EUROPACITY

Stephane Perrin Bpifrance Hub Startup Manager BPIFRANCE

Erdem Tavas CEO GALATAPORT ISTANBUL

Sandrine Guichard Home & Decoration and B2B Retail Director LA REDOUTE

Riad Makdessi CEO TRIMOO

David Terrien Development Director MAISONS DU MONDE

Alessandro Caruso Philippe Journo Vice President International CEO COMPAGNIE DE PHALSBOURG LA VIE EN ROSE

3pages_prog_conf.indd 1

Maddalena Panu Head of Research SAVILLS

01/10/2018 10:04

CONFERENCE & EVENT PROGRAMME

TRANSFORMING REALITY: PHYSICAL IN THE AGE OF DIGITAL TUESDAY 13 NOVEMBER 14.00-18.00 - OUTLET SUMMIT* [Verrière Grand Auditorium - Palais 1] Sponsors: Art Software Group, Coniq, Fashion House Group, Magdus, Neinver, Resolution Property, Scalo Milano Outlet & More, TORG 14.00-18.00 - LEISURE SUMMIT* [Salon Croisette - Palais 3] Sponsors: Arena Space, EuropaCity, Funtopia, Imax, MyCotoo, We Arena Entertainment 19.30 - WELCOME RECEPTION [Carlton Hotel] - Open to all delegates

WEDNESDAY 14 NOVEMBER CONFERENCE ROOM 1

CONFERENCE ROOM 2

RETAIL CONVERGENCE

SHOPPING THE WORLD

09.00-10.00

RETAIL TRANSFORMATION: THE NEW DEAL WITH O2O Keynote followed by panel session

DESTINATION: RUSSIA Co-org: RBC Official partner: RCSC Sponsor: ADG Group

10.00-11.00

OMNICHANNEL: REINVENTING PHYSICAL! Keynote followed by panel session Co-org: Retail Board Advisors 11.00-12.00

ECOMMERCE ENERGISING PHYSICAL Keynote followed by panel session Co-org: WWD Partner: FEVAD 12.00-13.00

TRANSFORMING REALITY: PHYSICAL IN THE AGE OF DIGITAL Opening Keynote

MAPIC INNOVATION FORUM, PALAIS -1

OTHER LOCATIONS & NETWORKING EVENTS 08.30-10.00

RETAIL IN THE CAPITAL OF SCANDINAVIA FOLLOWED BY BREAKFAST Organiser: Invest Stockholm

INNOVATION & TRANSFORMATION

10.00-11.00

DESTINATION: THE NETHERLANDS Co-org: NRW

FROM DATA TO BUSINESS VALUE Masterclass

11.00-12.00

NEW IN 2018

DESTINATION: BELGIUM Co-org: BLSC

LEISURE ZONE, PALAIS -1

PRIVATE GUIDED TOUR** By registration only

[Verrière Grand Auditorium - Palais 1]

NEW IN 2018

PRIVATE GUIDED TOUR** By registration only

CUSTOMER EXPERIENCE

SHOPPING THE WORLD

11.00-12.00

11.00-13.00

LEISURE TALKS Find the best technologies & solutions to entertain your customers

DESTINATION: USA FOLLOWED BY COCKTAIL Co-org: JLL Sponsors: Brown Rudnick & JLL

12.00-13.00

[Verrière Grand Auditorium - Palais 1]

DESTINATION: POLAND Co-org: PRCH Official partner: Eurobuild

15.00-16.30 14.00-16.00

14.30-15.30

14.30 - 15.30

14.30-16.00

ALL YOU NEED IS LOGISTICS! Keynote followed by panel session

DESTINATION: MIDDLE EAST Co-org: Images RetailME

INNOVATION TALKS

Discover the latest innovations in shopping centres 3.0

TEA PRESENTS: MASTERING LEISURE & RETAIL Co-org: Themed Entertainment Association

INNOVATION & TRANSFORMATION

VERVIERS: THE BEST OPPORTUNITY FOR A DOWNTOWN SHOPPING CENTER IN WALLONIA! FOLLOWED BY COFFEE BREAK Organiser: City Mall [Salon Croisette, Palais 3] 16.30-17.30

US HAPPY HOUR

15.30-16.30

RESHAPING RETAIL WITH A NEW CONNECTED CONSUMPTION EXPERIENCE Keynote followed by panel session

DESTINATION: ITALY (PART 1) Co-org: CNCC Sponsor: IGD SIIQ

16.30-17.30

SHARING ECONOMY & NEW USAGES: HOW LANDLORDS & RETAILERS SHOULD KEEP UP!

DESTINATION: SPAIN Co-org: AECC

17.30-18.30

NEW OPERATING MODELS: INNOVATIVE SOLUTIONS TO REINFORCE SHOPPING CENTRE EFFICIENCY

DESTINATION: LATIN AMERICA Co-org: Lizan Retail Advisors

(Stand P-1.D80 / P1.E81) 16.30-18.00

NEW IN 2018

PRIVATE GUIDED TOUR** By registration only

18.00

INNOVATION HAPPY HOUR

16.00-17.00

IS THERE A FUTURE FOR A EUROPEAN ART OF RETAILTAINMENT? Co-org: REAL (Retail Entertainment Activation - Leisure)

NEW IN 2018

PRIVATE GUIDED TOUR** By registration only

MAPIC GLOBAL RETAIL PARTNER SUMMIT* Official Media Partner: Retail & Leisure International In partnership with: Franchise Expo Sponsor: Brown Rudnick [Verrière Grand Auditorium - Palais 1] 18.30-20.00

FOOD PREMIERE* MAPIC wine tasting [Verrière Grand Auditorium - Palais 1]

* By invitation only. ** Book your private visit of the Mapic Innovation Forum to network with digital & innovation experts: eugenia.irvine@gmail.com Book your private visit of the Leisure Zone to network with leisure & entertainment experts: eugenia.irvine@gmail.com 3pages_prog_conf.indd 2

01/10/2018 10:04

Conference programme sponsors

E U R O PA C I T Y Conference sessions sponsors

THURSDAY 15 NOVEMBER CONFERENCE ROOM 1

CONFERENCE ROOM 2

CUSTOMER EXPERIENCE

SHOPPING THE WORLD

09.00-10.00

F&B PLAYERS RECIPES: SUCCESSFULLY DEVELOP YOUR CONCEPT WITH A PRIVATE EQUITY PARTNER Co-org: Mourre Participations

DESTINATION: THE NORDICS Co-org: NCSC

10.00-11.00

ARE CULTURE & EDUCATION THE FUTURE OF SHOPPING CENTRES?

DESTINATION: UNITED KINGDOM Co-org: REVO

11.00-12.00

CREATING PHYSICAL EXPERIENCES & EMOTIONS IN A DIGITAL WORLD Co-org: Innesco

DESTINATION: FRANCE (PART 1) Co-org: CNCC

12.00-13.00

BEST INNOVATIVE BEAUTY & WELLNESS SERVICES TO CREATE CUSTOMER VALUE Sponsor: Guinot

DESTINATION: FRANCE (PART 2) Co-org: Elgam Conseil

RETAIL PROPERTY OUTLOOK 14.30-15.30

TRANSIT ZONES: STRATEGIC PHYSICAL LOCATIONS TO SERVE CONNECTED USERS Co-org: Retail&Food Sponsor: Ceetrus

OTHER LOCATIONS & NETWORKING EVENTS 08.30-12.00

RUSSIAN BREAKFAST* Organiser: Impress Media

PRIVATE GUIDED TOUR** By registration only

[Majestic Hotel] 10.30-12.00

10.00-11.00

ARTIFICIAL INTELLIGENCE: THE FUTURE OF RETAIL Masterclass

NEW IN 2018

PRIVATE GUIDED TOUR** By registration only

LA MATINALE DE L’ECO Organiser: Métropole Nice Côte d’Azur [Verrière Grand Auditorium - Palais 1] 11.00-12.30

CUSTOMER EXPERIENCE

11.00-12.00

INNOVATION WORKSHOP

LEISURE TALKS Find the best technologies & solutions to entertain your customers

WHY SHOULD YOU OPEN YOUR FLAGSHIP STORE IN BRUSSELS? Organiser: Entreprendre.Brucity [Salon Croisette, Palais 3] 13.00-14.30

MEETALY LUNCH* Sponsor: IGD SIIQ In partnership with: CNCC Italy Promoted by ITA [Verrière Grand Auditorium - Palais 1] 14.00-15.00

EUROPEAN RETAIL INVESTMENT: OUTLOOK 2019 Organiser: PropertyEU 14.00-15.30

14.00-16.00

DESTINATION: ASIA FOCUS ON INDIA Co-org: CBRE FOCUS ON ASIA-PACIFIC Co-org: JLL 15.30-16.30

RE-INVESTING IN HIGH STREETS INTERNATIONAL VIBES!

DESTINATION: TURKEY Co-org: IHKIB & United Brands Association of Turkey

16.30-17.30

RETAIL, A BOOSTER FOR TOURISM! Co-org: stephanekeulian.com

DESTINATION: AFRICA Co-org: Retail Management Consultants (RMC)

17.30-18.30

17.30-19.00

SPECIALTY LEASING: WILL POP-UP RETAIL LAST FOREVER? Co-org: Fitch

DESTINATION: ITALY (Part 2) Co-org: CNCC Sponsor: IGD SIIQ

3pages_prog_conf.indd 3

LEISURE ZONE, PALAIS -1

NEW IN 2018

INNOVATION & TRANSFORMATION

15.30-16.30

As of 28 September 2018, subject to change.

MAPIC INNOVATION FORUM, PALAIS -1

14.30-16.00

INNOVATION TALKS

Discover the latest innovations in shopping centres 3.0

TEA PRESENTS: MASTERING LEISURE & RETAIL Co-org: Themed Entertainment Association

(Salon Croisette, Palais 3)

SHOPPING THE WORLD 15.30-17.30

DESTINATION: GERMANY FOLLOWED BY COCKTAIL Co-org: Heuer Dialog Official partner: GCSC [Verrière Grand Auditorium - Palais 1] 16.00-17.00

NEW IN 2018

PRIVATE GUIDED TOUR** By registration only

16.00-17.00

LEISURE WORKSHOP

LIVING RETAIL - CONSUMER AND RETAIL TRENDS DRIVING THE MARKET Organiser: PropertyEU (Salon Croisette, Palais 3)

NEW IN 2018

PRIVATE GUIDED TOUR** By registration only 18.00

INNOVATION HAPPY HOUR

19.00-22.30

MAPIC AWARDS GALA DINNER* Sponsor: Aeon Mall [Salon des Ambassadeurs - Palais 4] 23.00

MAPIC PARTY Open to all MAPIC delegates [Salon des Ambassadeurs - Palais 4]

01/10/2018 10:04

your mapic experience

14-16 NOVEMBER 2018 Palais des Festivals, Cannes, France

OPENING TIMES MAPIC 2018 Opening hours 14-15 November: 8.30* - 19.00 16 November: 8.30* - 17.00 * Access from 08.00 for exhibitors

13 November 2018: Welcome Reception 19.30 InterContinental Carlton

MAPIC 2018 Registration hours 13 November: 9.00 - 20.00 14-15 November: 8.00 - 19.00 16 November: 8.30 - 15.00

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

Prepare for MAPIC in advance Visit the MAPIC website to organise your travel • Book your transportation & accommodation with our partners to get the best deals

Book your business meetings in one click • Download the Mobile App – Plan your agenda (conferences, events) – Find your way and exact booth locations – Connect with participants, exhibitors and speakers – Get your e-ticket directly on the App

Your badge: your key to getting into MAPIC Did you receive it by post? Don’t forget to put it in your luggage. You have only your confirmation email? Pick up your badge at the registration area.

• Log into the Online database to – Fill out your profile and promote yourself – Start to browse participants and send direct messages – Organise your business meetings

Palais1 Be sure to check the registration hours above. Save time with the e-ticket Print it out to collect your badge at a selfservice delivery point or download the Mobile App and connect to your account. Please carry it all times, and be ready to show it at entry points around the area. Your badge is strictly personal and non-transferable.

Fill out the matchmaking form directly on your account and receive tailored business recommendations!

Attend our networking events and meet decision makers Welcome Reception

MAPIC Awards Gala Dinner

Tuesday 13 November, 19.30 InterContinental Carlton Open to all

Thursday, 15 November, 19.30 Salon des Ambassadeurs Palais des Festivals - Palais 4

Don’t forget to take your badge to access the event!

Book a seat/a table: laurene.dureault@reedmidem.com MAPIC Awards 2018 Global Sponsor

Networking events* Expand your universe through our exclusive networking opportunities *more information online and on the Mobile App

3 DAYS OF CONFERENCES & NETWORKING EVENTS

MAPIC Party Thursday, 15 November, 23.00 Salon des Ambassadeurs Palais des Festivals - Palais 4 Open to all

See the programme p.93 and plan your journey

MAPIC PREVIEW • 96 • October 2018

your mapic experience

General map of MAPIC Palais -1

MAPIC Zone 1

MAPIC Innovation Forum is the only global gathering of innovation leaders in retail real estate industry. It helps key industry players to find solutions through innovation & technology. Exhibition, conference & pitching sessions.

Sea

Riviera 8 Beach

Riviera 7

Unibail Rodamco C17

Palais -1

Entrance & exit to MAPIC

Get inspired by innovative leisure concepts and learn from entertainment experts. Zoom on innovative locationbased attraction, family entertainment, traditional playgrounds, creative pop-ups, wellness, beauty & fitness. Exhibition, summit, conference & pitching sessions.

MAPIC Security Checkpoints

1 5

Organisers’ Ofﬁce

Palais -1 to 4

Decorators’ Registration

La Croisette Harbour

10min InterContinental Carlton

Majestic Hotel

YOUR BADGE 4

Train Station

Registration & Protocol Entrance Press Registration

MAPIC free hotel shuttle

La Croisette

Transact What rooms can you use for your meetings? Visitors’ lounge (Palais -1)

Media Hub (Riviera 7)

• Intended for participants without a stand

• Dedicated to journalists and influenceurs

• Includes a meeting area, hostesses to help organise your meetings and free coffee

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

• For meetings of a maximum length of one hour

Chairman’s club (Palais 1)

Gold club (Riviera 7)

• Exclusive club reserved for chairmen, by invitation only

• Intended for gold members of our Customer Recognition Programme

• Includes refreshments and a dedicated staff

• Includes a private lounge area, international press, PC & Internet access

See you in Cannes! FOR FURTHER INFORMATION: WWW.MAPIC.COM • HELP DESK: +33 (0)1 79 71 99 99 MAPIC PREVIEW • 97 • October 2018

PREVIEW October 2018 www.mipcom.com

// DIRECTOR OF PUBLICATIONS // Paul Zilk

// MARKETING DIRECTOR // Mathieu Regnault

/ EDITORIAL DEPARTMENT / Editor in Chief Mark Faithfull Contributors Nupur Chakraborty, Ben Cooper, Debra Hazel, Isobel Lee, Liz Morrell, Graham Parker, Helen Roxburgh, John Ryan Sub Editor Joanna Stephens Proof reader Debbie Lincoln Editorial Management Boutique Editions Head of Graphic Studio Herve Traisnel Graphic Studio Manager Frederic Beauseigneur Graphic Designer Carole Peres

/ GRAPHIC DESIGN AND LAYOUT /

– Graphic S tudio

/ PRODUCTION DEPARTMENT / Publishing Director Martin Screpel Printed Communication Manager Emilie Lambert Printer Riccobono Imprimeurs, Le Muy (France). Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2018, Reed MIDEM Market Publications. Publication registered 4th quarter 2018. ISSN 1961-022X. Printed on PEFC certified paper.

R E Q U IR E D

A A A

023_FIVE GUYS_PV_PIC

S IT E S

Richard Collier Property Director E: richard.collier@fiveguys.co.uk M: +44 7827 445 404

Neville Maling Head of Property UK/Spain E: neville.maling@fiveguys.co.uk M: +44 7855 275 672

Daniel Sprenger Head of Property Germany E: daniel.sprenger@fiveguys.de M: +49 1741 458 190

Philippe CĂŠbral Head of Property France E: philippe.cebral@fiveguys.fr M: +33 763 267 662

Ignacio GalĂ Head of Property Spain E: ignacio.gali@fiveguys.es M: +34 678 010 682

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

028_ECE_PV_PIC

Visit us at MAPIC, stand R7.G14

180926_191-1386_ECE_AZ Preview_MAPIC_230x285_V01.indd 1

26.09.18 17:06