Mapic 2017 news 2

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Thursday 16 November 2017

www.mapic.com

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UNIBAIL-RODAMCO

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Regeneration at the heart of Unibail-Rodamco’s next wave of projects, says COO Jean-Marie Tritant

GLOBAL RETAIL SUMMIT

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The Global Retail Partners’ Summit drew a large audience to share the latest insights on growing markets

RESOLUTION PROPERTY

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Mayte Legeay outlines her ambitions for the designer outlet sector having just joined Resoution Property

THE LARGEST MALL IN THE NETHERLANDS

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CONTENTS NEWS

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6 Unibail-Rodamco; IKEA Centres Russia; Alibaba; Hunkemoller; Turkish brands; opportunity India; Global Retail Partners’ Summit; Resolution Property; and more...

Sc

rence Confe me program P24

FEATURES

The MAPIC Newsroom is located on Riviera 7, Aisle B

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The official MAPIC daily newspaper Thursday 16 November 2017 Director of Publications Paul Zilk EDITORIAL DEPARTMENT Editor in Chief Mark Faithfull News Editor Graham Parker Sub Editors Julian Newby, Neil Churchman Proof Reader Debbie Lincoln Reporters Ben Cooper, Liz Morrell, John Ryan Editorial Management Boutique Editions Head of Graphic Studio Herve Traisnel Graphic Studio Manager Frederic Beauseigneur Graphic Designer Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographer Michel Johner PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing co-ordinator Yovana Filipovic Printer Riccobono Imprimeurs, Le Muy (France).

ADVERTISING CONTACT IN CANNES Luigia De Ianni 07 77 69 34 65 - luigia.deianni@reedmidem.com

31 INNOVATION Welcome to the smart mall

Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNEBILLANCOURT (FRANCE), VAT number FR91 662 003 557.

Contents © 2017, Reed MIDEM Market Publications. Publication registered 4th quarter 2017. Printed on FSC certified paper.

35 I NDIA Global brands have eyes on India

PROJECT NEWS 37 A selection of new and upcoming developments and redevelopments from around the world

Benefit from complementary high-speed WIFI at MAPIC this year — a great opportunity to download the #MAPIC mobile app and start networking!

BONUS: CONNECT UP TO 3 DEVICES!

Network: PalaisDesFestivals WiFi

MAPIC 2017 kicked off officially yesterday when Frank Chikli (centre), deputy mayor of Cannes was on ribboncutting duty outside the Riviera. Also in attendance for the ceremony were: Pilar Quiroga, business development director at Parques Reunidos (left); Francesco Pupillo, deputy director MAPIC markets; BS Nagesh, founder of TRRAIN; Paul Zilk, Reed MIDEM CEO; Nathalie Depetro, MAPIC director; Wang Zhibin, senior vice-president Wanda; Filippo Rean, director of Reed MIDEM’s real estate division; and Pamela Wolf, innovation director at Salesforce.

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NEWS Wealthy consumers attract Unibail-Rodamco projects leading brands to Ukraine breathe new life into cities UNIBAIL-Rodamco is in Cannes to showcase a number of major development and redevelopment projects conceived in its vision of the future of retail property.

Yesterday the French developer launched the leasing phase of a flagship scheme in Lyon, which COO Jean-Marie Tritant said would be a “gamechanger” that would transform a district close to the railway station and bring a new generation of shopping to the city.

“This will open up the shopping centre to the city. La Part Dieu will reconnect the space with Lyon,” Tritant said. “The original centre was built in the 1960s and it has become disconnected with the city.”

Unibail-Rodamco is also embarking on a redevelopment

Vitalii Boiko, CEO of NAI Ukraine

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KRAINE offers exciting opportunities for retailers and as such a number of high-profile brands — including Decathlon and Zara Home — are to debut in the country next year.

Vitalii Boiko, CEO of NAI Ukraine, said that the market was attractive thanks to a 22% rise in salaries in the nine months of 2017. “The country is still poor but salaries are growing,” he said.

Retail turnover is also increasing, up by 4% for the same period.

Boiko is the exclusive agent on a chain of mega-malls in Kiev.

Lavina Mall opened in December last year and features the largest

Zara store in Eastern Europe as well as a 20,000 sq m indoor theme park — the largest in Europe — which is also home to the world’s longest indoor roller coaster.

The first phase of the next centre, Blockbuster Mall, will open in October 2018 and will include the first Zara Home in Ukraine as well as two entertainment parks. The third centre, Ocean Mall, sees the addition of a further 100,000 sq m of space to the existing Ocean Plaza which will also include a 30,0000 sq m digital entertainment centre. A number of other centres are also in planning.

scheme in Paris which will reinvigorate mixed-use space close to Montparnasse railway station in the 14th arrondissement, south of the Seine.

The Les Ateliers Gaite mixeduse project will revive what Tritant said was a “dying shopping centre” in the capital.

“We want to create something unique,” he said. “Something that doesn’t exist in Paris.”

Tritant said that the developments represented a new model of retail space, to match evolving shopper habits and shopping trends.

“We are shifting from one world to another one,” he said. “We’ve been talking a lot about the impact of online on retail. Customers want fewer barriers between online and offline; we want to be part of their online journey.”

Unibail-Rodamco chief operating officer Jean-Marie Tritant

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HIGHLIGHTS After yesterday’s inaugural MAPIC Outlet Summit the market opened officially with a major focus on F&B The Palais opens its doors

Space invaders

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mapic

IKEA Centres Russia makes

space for Taste Boulevard

Olga Shevtsova: growing appetite for food and beverage

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KEA Centres Russia, which operates 14 Mega branded shopping centres, is expanding the roll out of its new food and beverage offer with a €50m investment in its Taste Boulevard concept.

Originally introduced in the company’s Mega Teply Stan mall in Moscow in 2016, the concept has since been introduced at Mega Khimki in September and will roll out to Mega Kazan and Mega Ekaterinburg in the coming months.

The Taste Boulevard offer doubles the GLA dedicated to food

A packed conference session

and beverage from around 4% to 8-9% and comes as Russians embrace an increasing trend towards eating out. Olga Shevtsova, head of sales and commercial development at IKEA Centres Russia, said the number of customers visiting their centres to eat out has risen by 75% in recent years, whilst 30% of all customers visiting Russian shopping centres are there to eat.

The dwell time of guests visiting food and beverage outlets has increased by 50% and food and beverage tenant sales have risen by 14% since the introduction

of the Taste Boulevard concept, said Shevtsova. “Eating out is increasing in Russia — people like to go out and meet and socialise with their friends and family,” she said.

The company has also tried food festivals within its centres this summer — something that works particularly well at providing an alternative offer while a centre is going through renovation, she said.

The company is investing €2bn in Russia in the coming years for upgrading and extending its Mega malls concept as well as building new IKEA stores.

Getting down to business at CBRE

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CBRE GLOBAL HEADS FOR €1BN SPEND THIS YEAR PAN-EUROPEAN investor CBRE Global Investors is on course to make around €1bn in shopping centre acquisitions by the end of the calendar year should the final deals in the pipeline go through, according to head of retail EMEA, Florencio Beccar.

He said that the retail market remains very attractive and that CBRE Global Investors particularly favoured assets which are in need of refreshing and repurposing, as these represented good value.

“We look for schemes where we feel we can asset-manage the centres, raise rents and re-energise the retail offer,” he said. “We feel we are well equipped to make a real difference to the shopping centres we buy, which is something that is perhaps different from some other investment companies.”

In terms of geographies, he said that CBRE Global Investors continues to be “enthusiastic about Scandinavia, having achieved good success in Sweden, and we still see strong prospects in Germany.”

Sun outside, busy market inside

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NEWS HANS IM GLUCK BURGER CHAIN SEEKS PARTNERS GERMAN gourmet burger chain Hans Im Gluck Burger Grill and Bar, which says it focuses on healthy casual dining, is expanding in Europe and is on the hunt at MAPIC for new locations and new franchise partners.

The company currently has 48 stores — all but one of which are in Germany. It also has a store in Austria where it is now looking to expand. Also, it will open its first unit in Singapore at the beginning of December and in the Swiss capital Bern next year.

“We are focusing on the European market and Asia,” said Frank Lobert, head of franchise and HR for the brand.

Hans Im Gluck is looking for units of minimum of 250 sq m in size with an outside seating area for at least 40 people. It currently has 18 franchise partners but is also seeking master franchise partners for major markets.

Frank Lobert

Ready for business

Food and leisure brands anchor ADG’s 39 new Moscow centres ADG’s Grigory Pecherskiy is at MAPIC to make deals

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USSI A N developer ADG Group is back at MAPIC a year after introducing its 39 neighbourhood centres project in Moscow to delegates in Cannes.

“We use MAPIC as the main instrument to communicate with the retail world and this year, for us, it’s the time to make deals,” ADG Group managing partner Grigory Pecherskiy said.

Construction of the first six centres began earlier this year and the tender for the next 20 has been announced. “That will give us the opportunity to open most of the locations by the end of

2019 and the first by the end of 2018,” he said.

ADG Group has signed supermarket chain Lenta, which will take stores in 36 of the centres as its main anchor. In October, it confirmed the establishment of a new joint-venture company with South Korean cinema operator CJ CGV which will develop a new cinema concept in Russia as the leisure anchor in 33 locations.

“Our project is a unique opportunity to take a big share of the Moscow market, which is the key to Russia, in one deal,” said Pecherskiy. He is now looking for a food and beverage operator as the third major anchor for

Klepierre eyes the future

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the centres, which will have an average of 50 retailers within them. Food and beverage will represent around 15 to 22% of the leasable area.

Other stores will complement the neighbourhood offer — such as pharmacies and banks. “It’s the sort of services you might need next to your home,” said Pecherskiy. Small stores for operators such as DIY and sports would also be included, supplemented by their full digital offer online, he said.

The centres are being developed in 39 obsolete cinemas purchased from the Moscow Government in December 2014.

VR gets real in Cannes

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S TSRTORN OG NG F OFO OTOFTAFLAL L D L RDI R V IEVRE R W IW TH ITH MO MROER T E HTAHNA N 1717 0 S 0 TSOTROERSE S Søstrene Søstrene Grene’s Grene’s expansion expansion strategy strategy involves involves growing growing its network its network of stores of stores at aatrapid a rapid yet yet sustainable sustainable pace. pace.

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Whenever Whenever Søstrene Søstrene Grene Grene is opening is opening a new a new store, store, nearby nearby concepts concepts will will increase increase turnover turnover of up of to up30% to 30% duedue to the to the increased increased footfall footfall thatthat Søstrene Søstrene Grene Grene is attracting. is attracting.

171 stores 171 stores across across 12 countries 12 countries and many and many moremore to come. to come.

Danish Danish homeware homeware retailer retailer Søstrene Søstrene Grene Grene is expanding is expanding heavily heavily throughout throughout Europe Europe and Japan and Japan thesethese years, years, and the andexpansion the expansion has not hasgone not gone unnoticed. unnoticed.

As so, Asthe so,organisation the organisation has just has been just been nominated nominated as Best as Best Retail Retail Global Global Expansion Expansion concept concept at MAPIC at MAPIC 20172017 as one as of one four of four finalists. finalists.

“We“We are honoured are honoured to have to have beenbeen nominated nominated for the forMAPIC the MAPIC Awards.

Awards.

I believe I believe that that the successful the successful expansion expansion of Søstrene of Søstrene Grene Grene is due is due to our to unique our unique storestore concept concept where where we strive we strive to create to create a wonderful a wonderful shopping shopping experience experience everyevery time.time.

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everchanging, everchanging, giving giving the customers the customers a new a new experience experience eacheach time.time.

A keyA aspect key aspect of the ofsuccess the success is theisunique the unique shopping shopping experience experience created created in the instores. the stores.

EveryEvery single single storestore is designed is designed to give to give customers customers a break a break fromfrom theirtheir busybusy everyday everyday lives lives as as they they search search the shelves the shelves for new, for new, wonderful wonderful finds.finds.

The store The store layouts layouts are like are labyrinths, like labyrinths, and the andcolourful the colourful products products are are neatly neatly displayed displayed in pleasant in pleasant subdued subdued lighting lighting and reachable and reachable fromfrom wooden wooden crates, crates, making making it possible it possible to feel to and feel examine and examine eacheach product product with with your your own own hands, hands, all the allwhile the while enjoying enjoying the the classical classical music music fromfrom the store the store speakers speakers and the andaromas the aromas of the of the wooden wooden crates crates and loose and loose leaf tea. leaf tea.

S T RSOTNRG ON AG N DA N RD A PI RD A PI EX DPA E XNPA SIO NS NI O N Søstrene Søstrene Grene’s Grene’s expansion expansion strategy strategy involves involves growing growing its its network network of stores of stores at a rapid at a rapid yet sustainable yet sustainable pace.pace.

Søstrene Søstrene Grene Grene expects expects to grow to grow 40 percent 40 percent in annual in annual turnover turnover in 2017. in 2017.

Market Market entries entries and expansion and expansion are conducted are conducted through through franchising franchising and joint and joint ventures. ventures.

Søstrene Søstrene Grene Grene exists exists of physical of physical stores stores only,only, located located in both in both shopping shopping centres centres and street and street locations. locations.

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A UA N IU QN UIEQSUH EOSPP H OI N PP GI N EX GPE E XRPE IEN R ICEENICSETIHSET K HE EYK E Y Søstrene Søstrene Grene Grene was founded was founded in Aarhus, in Aarhus, Denmark, Denmark, in 1973, in 1973, and and the family-owned the family-owned company company has now has now grown grown to hold to hold 171 stores 171 stores across across 12 countries, 12 countries, and two and more two more countries countries will follow will follow before before Christmas.

Christmas.

Søstrene Søstrene Grene Grene started started its expansion its expansion of stores of stores in 1989, in 1989, and in and recent in recent yearsyears the rate the rate of new of new storestore openings openings has has skyrocketed skyrocketed with with new new stores stores opening opening weekly weekly across across Europe.

Europe.

To a To large a large extent, extent, Søstrene Søstrene Grene’s Grene’s concept concept is notisadjusted not adjusted The expansion The expansion of the ofcompany the company is a result is a result of the ofpositive the positive to individual to individual markets markets or regions. or regions.

The strategy The strategy is to is create to create as as customer customer response response to the tounique the unique retailretail concept concept across across markets. markets. uniform uniform a concept a concept and shopping and shopping experience experience as possible. as possible.

When When a customer a customer visitsvisits a Søstrene a Søstrene Grene Grene storestore in Germany, in Germany, the the Søstrene Søstrene Grene Grene specialises specialises in home in home accessories, accessories, kitchenware, kitchenware, feeling feeling will be willthe besame the same as inas a store in a store in France. in France.

The customers The customers gift wrap, gift wrap, DIY articles, DIY articles, stationery stationery and small and small furniture. furniture.

The brand The brand will listen will listen to the tosame the same classical classical music, music, walk walk in the insame the same labyrinth, labyrinth, represents represents feminine, feminine, Scandinavian Scandinavian design design aesthetics aesthetics with with a a experience experience the same the same concept. concept.

The only The only market market adaption adaption made made multitude multitude of products of products for decorating for decorating the home, the home, whilewhile always always is according is according to national to national and local and local registration registration and regulations. and regulations. keeping keeping the prices the prices affordable. affordable.

The product The product selection selection is is StoreStore sizessizes vary vary according according to availability to availability in the inmarkets the markets too. too.

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NEWS

New Jersey centre will be Lines blurring between a retail ‘game-changer’ physical and online

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HE “next generation” of retail property is being marked by a greater prominence of entertainment and leisure facilities, with retail stores and mall space enriched with innovative technology, according to Don Ghermezian, president of US developer Triple Five Group.

Triple Five is currently delivering the mixed-use American Dream project in New Jersey, close to Manhattan, which Ghermezian said will be a “game-changer” in US retail property when it opens in the spring of 2019.

“We realised a long time ago that it was about more than just retail,” he said. “Experience is a huge component to our centres.

American Dream will have multiple experiential components

to it; we are really pushing the digital and challenging retailers to embrace the transformational digital experience in their stores.”

The American Dream project will include experiential features running alongside the retail offer, including an indoor ski slope, a Nickelodeon Universe theme park and a DreamWorks branded park.

The development is taking shape close to the Lincoln Tunnel, which connects New Jersey with Manhattan.

Ghermezian said that the centre is designed to capture the huge market potential of the combination of 27 million people living within two hours’ drive of the site, and the large tourist market flooding into Manhattan looking for child-friendly space and entertainment.

Alibaba France’s Sebastien Badault

ALIBABA is making “major investments in offline” and

partnering with physical retailers as part of its future growth strategy, the managing director of the e-tailer’s French division has said.

Addressing MAPIC opening session Reimagining Retail In The 21st Century!, yesterday, Sebastien Badault said that the company, which began as a purely online channel, sees a crucial role for physical stores in its own operations and for the wider retail business.

“The vast majority of people in China still shop offline,” Badault told delegates. “Just 18% of overall sales are done online.

We believe that physical retail has huge potential for growth,

Triple Five’s American Dream centre

but we also believe it needs to be reinvented and renewed.”

Citing Alibaba’s partnerships with small independent momand-pop convenience stores in China, Badault said that collaborations between physical and digital retailers, and the fading of boundaries between channels, would be key features of the evolution of shopping.

He said that innovations such as Alibaba’s use of “magic mirrors” in Chinese department stores, allowing shoppers to model clothes virtually that they had discovered while watching live-streamed fashion shows, were examples of a “physical event that becomes digital” and then “loops back” to physical stores.

Showrooming on the up as internet retail slows PURE-play online retailers are increasingly turning to physical stores as the rate of internet sales growth slows, according to new research from Colliers International.

The agent predicts that the growth rate for e-commerce sales will slow from today’s 11% to 7% by 2023.

Online retailers are reacting to this trend by ‘showrooming’ — using physical stores to reinforce customer loyalty. For example the French online fashion brand Sezane has opened physical stores in Paris and New York and now has a pop-up store on Lon-

don’s South Molton Street; and online youth fashion brand Missguided recently opened its first flagship stores in Westfield London and Bluewater, to the east of the UK capital.

At the same time a growing number of brands including Samsung, Dyson and Volkswagen, which previously sold through stockists, are now looking to go direct to the consumer through their own store networks.

Paul Souber, co-head EMEA retail at Colliers said: “The trend is also driven by cost considera-

Going physical: Missguided’s Bluewater store

tions: it’s not uncommon for 40% of online fashion orders to be returned by the customer without

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making a purchase. This is imposing a huge logistical and cost burden on the online brands.”

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NEWS FALCON DEVELOPS MILAN MEGA-MALL WORK has begun on a major retail-led scheme on the outskirts of Milan as part of an urban regeneration plan.

Developer Falcon Malls is on site in the Cascina Merlata area of the city, where the project will bring 65,000 sq m of new mixed-use space across 192 units. When the work is completed the Cascina Merlata centre will be the largest retail space in Milan, and sit within a wider redevelopment project to transform some 900,000 sq m of land to the north-west of the city. The project is close to the site of Expo Milan 2015, and up to 10 million visitors each year are expected. Falcon Malls is a subsidiary of the Fawaz Alhokair Group, which owns and operates retail centres throughout Saudi Arabia.

CITIES NEED A BUZZ FACTOR THE SUCCESS or failure of European cities as retail destinations is becoming strongly intertwined with their rankings on ‘social buzz’ factors. The 2017 City Attractiveness study by retail real estate investment manager Redevco shows that the higher the proportion of creative professionals in the population or number of tourist attractions, the better the city’s quality which in turn positively impacts rental growth. While the most attractive cities grow and outperform, there is increasing polarisation of prime and other locations.

“Retail real estate investment has become a much more specialist game to understand which retailers are likely to be successful and how you can create an environment that appeals to consumers’ thirst for enjoyment, beyond simply the retail offering,” said Redevco’s head of research and strategy, Marrit Laning.

More expansion in store for Hunkemoller’s Schonebeck

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UTCH lingerie and foundationwear retailer Hunkemoller is on the expansion trail. Marko Schonebeck, head of expansion and real estate Germany said: “We are probably one of the top two or three most rapidly expanding brands in Germany at the moment. We are currently opening 70 – 80 stores a year.”

Hun kemol ler t rades f rom 320 stores in Germany and Schonebeck said that it would like to increase this number to around 500, but that this would depend on availability: “We are actually in all of the most interesting shopping centres [in Germany] already and there are not so many new ones appearing.

The market is quite tough because rents are high and locations

are not good.”

However, Hunkemoller has its sights on ‘holiday locations’ in Germany, as it perceives this as a possible additional revenue-winner.

Schonebeck added that Hunkemoller is also in negotiations with some of the new outlet centres that are under construction and that a new format, dubbed HKMX, is being trialled in Berlin’s Mitte district. The latter is a spin-off brand, that is “a bit like Lululemon”, according to Schonebeck, aimed at the sports and athleisure market. Plans are in place for the next HKMX to open in Utrecht, although details remain to be finalised.

The retailer is also active internationally with aggressive expansion planned for Spain, Switzerland and Austria, among others.

Marko Schonebeck: in search of revenue-winners

New signings for Borough Yards REAL ESTATE investment manager Meyer Bergman has signed Everyman Cinema and flexible workspace provider The Office Group to its £300m Borough Yards project in London.

The scheme will see the mixeduse redevelopment of the Victorian railway arches near commuter station London Bridge and Borough Market.

Designed by SPPARC Architecture, the 18,400 sq m project is scheduled to open in early 2020. It involves the redevelopment of former wine-tasting venue Vinopolis and neighbouring sites, providing more than 10,700 sq m of retail and leisure space, marketing of which begins officially today at MAPIC. The regeneration of Borough has attracted billions of pounds of investment in the past five years, including western Europe’s tallest building, the Shard, and the enlargement of London Bridge Station, enabling it to handle 75 million passengers per year when

Mike Webb of JLL (left), CWM’s David Sanderson and George Walsh-Waring of Meyer Bergman

completed in 2018.

George Walsh-Waring, principal at Meyer Bergman, said: “Borough Yards will become a retail extension to this historic area woven into the fabric of the neighbouring streets. The area already attracts art lovers, food lovers and theatre-goers but there’s very lit-

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tle fashion retail in the district.

We think retailers will enjoy being exposed to this very diverse audience.” Borough Yards is an investment by Meyer Bergman European Retail Partners II, a fund advised by Meyer Bergman.

Leasing advisors for Borough Yard are CWM and JLL.

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NEWS ISLAND MALL SET TO BRING NEW INVESTMENT INTO IRAN MICA Mall, the 220,000 sq m retail and leisure resort on Kish Island in the Persian Gulf, is now 85% complete and on target to open in late 2018. And according to an international relations expert it is poised to lead a new wave of inward private investment into Iran.

Dr Seyed Sadegh Kharazi, formerly Iran’s ambassador to France, said Kish occupies a strategic position in the region, economically stable and with a growing reputation for eco-tourism. He explained that the Iranian government made a decision to attract investment by setting up the Iran Free Zone, with tax and customs concessions for inward investors. “The door is open — this is a very important investment opportunity,” he said.

Mica Mall managing director Nader Keshtkar explained that Kish already draws tourist visitors from across the region, and Mica Mall aims to meet their shopping and leisure needs.

In addition to four levels of retail and two levels of parking, the mall will house an indoor skydiving attraction, an aquarium, an indoor rain forest, an Olympic-size ice rink, a children’s entertainment centre and four cinemas.

The complex will be linked to the beach by a cable car.

Mica Mall’s Nader Keshtkar

India leads the world for retail opportunities, Summit hears

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NVEST in India, but don’t leave it too long, was the message to retailers as Pierre Alexanre Koch, partner at ATKearney, adressed a large MAPIC audience at yesterday afternoon’s Global Retail Partners’ Summit.

He was referring to The Age of Focus, ATKearney’s report that ranks countries in order of attractiveness to retailers.

“It’s called The Age of Focus because there is a real question mark over whether to step back from physical retail altogether, like Marks & Spencer has done in China,” Koch said, adding: “The window of opportunity still exists, but it will not last long as local players will soon take over and markets will become saturated for international players.”

Pierre Alexander Koch: “China is now saturated”

The ranking puts India at the top of the league, followed by China, Malaysia and Turkey, but Koch said that “China is now saturated”. India, by contrast, remains a significant opportunity for retailers, but it too won’t last too long: “If you are shy you will lose,” Koch said.

The age of global expansion may be coming to an end, or at least it will soon experience a radical slowdown, he concluded.

Indicating the shift in opportunities eastwards, six of the top 10 countries in the AT Kearney rating are Asian, two are South American, one is in the Middle East and one in Africa.

The Global Retail Partners’ Summit was held in conjunction with ATKearney, Franchise Expo Paris and Brown Rudnick and included matchmaking sessions and a networking cocktail event.

Retailers are headed to Dream Island REGIONS Group has returned to MAPIC to showcase Dream Island, its 100ha scheme that will feature the world’s largest indoor amusement park, 250 stores and around 50 food and beverage outlets. The centre is to be located on the shore of the river Moskva, a 10-minute drive from the Kremlin.

The park will immerse children and adults alike into 10 recreated fairytale worlds of famous cartoon characters and will feature 40 different amusement activities. It will also include a 3,500-capacity concert hall and a 17-screen cinema.

Regions Group is in negotiations with a number of retailers for stores in the centre and said that the response at this year’s MAPIC has been hugely positive.

“Retailers are very interested because this is a unique project for Russia,” commercial director for

Regions Group commercial director Olga Kim

Regions Group Olga Kim said.

She added that she is looking for retailers from sports stores to beauty for the park, construction of which is due to complete by the end of next year. “Every category of goods will be in this project,” she said.

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The various elements that make up the centre — as well as the sheer scale of the world’s largest indoor amusement park — should prove a huge draw, according to Kim. “The park’s unique concept will attract 50 million visitors a year,” Kim said.

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NEWS LATIN AMERICA LOOKS TO MAPIC FOR GROWTH TRADITIONAL retail is still developing across parts of Latin America. Representatives from Brazil and Peru are at MAPIC looking for ideas that can help develop certain regions where populations are underserved.

Pedro Sevilla, managing director of developer Centenario Retail in Peru, said: “We were actually supposed to have a retail exhibition in Puerto Rico recently, but it didn’t happen because of the hurricane.

“Now we are at MAPIC and we are looking to meet retailers and developers as we are currently opening what will be the most exclusive mall in Peru,” Sevilla added.

The 32,000 sq m GLA shopping centre, in Lima’s San Isidro district, will open in 2020. There will be no space for department stores, which means that all 200 units will be aspirational, “affordable luxury” boutiques and restaurants, according to Sevilla.

Catilo Candido, director at the Brazilian Shopping Centers Association (ABRASCE), said that there are just 500 malls and 11 outlet centres in a nation with more than 100 million consumers. The purpose of visiting MAPIC, therefore, is to “learn and engage with European shopping-centre groups and retailers. For us it’s really important to have new perspectives.”

Candido added that he is putting together a Brazilian delegation for 2018, to further relations with European retailers at MAPIC.

How Turkish brands are rising to the global retail challenge

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URKISH brands are hungry for expansion opportunities, according to two key trade associations represented at MAPIC. Speaking ahead of the Turkish brands conference session which takes place at 15.30 today, Volkan Atik, vice-chairman of iHKiB, the Istanbul Apparel Exporters’ Association said: “Turkey’s a young and developing market and the brands are getting stronger day by day. The quality of our retail operations is now world-class.”

The association’s 14,000 members generated $17bn of total exports in 2016, and this year is on track to show 5% growth. “Our goal is to grow exports to $50bn by the end of 2023,” Atik said.

As a reflection of this outwardlooking mindset, Atik’s own business, menswear brand Avva, already operates stores in markets as diverse as Russia, Uzbekistan, Turkmenistan, Iran, South

Sinan Oncel of the United Brands Association of Turkey, (left) and Volkan Atik, vice-chairman of the Istanbul Apparel Exporters’ Association

Africa, Morocco and Tunisia.

Sinan Oncel, chairman of the United Brands Association of Turkey, said one of the reasons Turkish brands have the financial strength to expand globally is that the domestic market is very selfcontained. “Almost all the goods sold in Turkey are domestically produced,” Oncel said, “so there’s a huge infrastructure underpinning the retail industry.”

The Turkish retail market has

seen rapid growth over the past 15 years, with 380 new malls opening. But Oncel said that now that the rate of domestic growth is slowing brands are keener to look overseas.

He said his association’s members operate 67,000 stores overall, of which 3,100 are outside Turkey. This time last year this number stood at 2,500 so the international presence is growing at 25% a year, Oncel pointed out.

Germany remains solid for investors GERMANY is still ripe for investment, in spite of uncertainty across parts of the Eurozone, according to Katharina von Schacky, head of real estate markets shopping at Commerz Real. Of Germany’s shopping-centre market, she said: “There isn’t actually that much new stuff coming, it’s about working the asset. The best retailers need to understand that.”

It was a view echoed by Ralf Bonnemann, head of leasing for Munich-based consultancy IPH, who said that prime remains prime: “We recently made a new development [in Germany] and we had the impression that it might be difficult to find good tenants. In fact, there was demand from some retailers for

bigger units, particularly pharmacies. In the bigger cities, it’s not actually so bad. If it’s secondary towns, then it can work if expectations for retailers are made clear.”

Von Schacky and Bonnemann said that relations between online and offline retailers would be much closer in the future and that tenant mix in shopping centres would be an issue. Bonnemann said that mall success would be dependent on having a tenant mix that would encourage repeat behaviour which is currently “somewhat in decline in Germany”.

Of the wider European market, Von Schacky said that London would remain important for retail, post Brexit, in spite of fears of a mass exodus.

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Commerz Real’s Katharina von Schacky

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NEWS INTU ADDS LEISURE EXTENSIONS TO LONDON MALLS INTU PROPERTIES is adding 50,000 sq m to two of its malls on the M25 London orbital motorway. Both Intu Watford and Intu Lakeside are undergoing leisure-led extensions in parallel with wider refurbishments.

At Watford, north of London, Intu is now less than a year from completing a £130m (€145m) project that will create an impressive 130,000-sq m retail and leisure destination. The development will be anchored by Debenhams, Superdry, New Look and H&M as well as introducing family friendly leisure activities including a nine-screen IMAX Cineworld cinema and a Hollywood Bowl.

“Watford has the most amazing catchment profile,” Intu’s regional director Rebecca Ryman said.

In Thurrock, east of London, work has just started on site on a new £74m (€82m) leisure development, which will create 16,213 sq m of cafes, restaurants and new leisure activities.

The first phase will house a 5,188-sq m Nickelodeon family entertainment centre to be operated partnership with The Parques Reunidos Group. In addition Hollywood Bowl, a Flip Out trampoline park and an indoor golf attraction will add variety to the leisure mix.

“We’re aiming for a mix to appeal to all ages,” Ryman said.

Intu Watford’s extension is a year from completion

Opportunities and challenges await global brands in India

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NDIA is potentially the biggest opportunity for global retail brands, a MAPIC conference session heard yesterday. BS Nagesh, founder of Indian retail association TRRAIN, said: “The country’s very young — the average age is just 35 — and GDP is growing at 7% a year. I don’t think any country in the world has such an opportunity.”

But he warned brands thinking of grabbing a slice of the $500bn Indian market: “Please don’t think of India as one country. That’s the biggest mistake new entrants make.” Nagesh pointed out that traditional retail still accounts for 90% of India’s 12 million shops. The food sector, for instance, generates sales in excess of $250bn a year but Nagesh said: “It’s heavily dominated by traditional mom and pop stores.”

Dilip Kapur, president of leather goods brand Hidesign echoed Nagesh’s comments about the scale of the opportunity India offers but he warned: “In terms of the opportunity the Indian market has exploded. The challenge for retailers is how to handle the rate of growth.”

Dilip Kapur, president of leather goods brand Hidesign

Kapur said one of the only brakes on growth is the lack of modern retail space. “To the developers in the room I say ‘I wish you’d come

to India quickly.’ We’re desperate for new malls because brands are struggling to find the right stores,” he said.

US retailers braced for deep discounts RETAILERS in the US should focus on supply chain management and customer experience to combat a general market move to greater discounting, according to Anthony Buono, chairman of the global retail executive committee advisory and transaction services for CBRE. “The most important item to note for this holiday season is the amount of deep discounting that is going on. There will be deep discounting in department stores that will impact top-line sales — which will be better than expected — but margins will be impacted,” he said.

The discounting trend is a longer term one that retailers must adapt

CBRE’s Anthony Buono

to, he added. “There is a wider acceptance of discounting in all

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kinds of sectors,” he said.

Buono advised retailers to look at logistics and supply chain optimisation to combat the discounting impact, as well as look to create a consumer experience within the four-walled environment.

The US market is also seeing a greater adoption of short-term pop-up formats, he said. “Retailers are much more motivated to do short-term, pop-up leases.

There are experiments in a lot of major cities now and we are seeing more and more of that as a way to test the brands and products. The long-term lease is more of a rare occurrence. Retailers are looking for more short-term obligations,” he said.

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NEWS AMF set to open omnichannel short-lease mall in Stockholm

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WEDISH mall owner and investor AMF is to open a new concept in Stockholm this spring aimed at bringing technology and physical real estate together. Called The Lobby, the first location will be opposite its established shopping centre MOOD and will cover 900 sq m over two levels.

However, unlike its other five malls in Sweden, The Lobby is designed with short leases of a month to a maximum of three or four months, and the company will offer to staff and operate all aspects of what in many ways is a modern take on a department store.

Already 50% leased for opening, the space will be divided into arup to 20 sq m eas from 2 sq m COMMERCIAL 144V2-EURO

The Lobby: a way for brands to experiment

and will include a restaurant and a bar/cafe area plus spaces designed for events and social networks. It will link with AMF’s

tech-building Epicenter, which houses everything from startups to global technology companies.

AMF head of business develop-

ment Annelie Gullstrom said that the project is a result of the company’s work to recognise the convergence of physical and digital retailing and to create an environment that reflects this transformation.

Gullstrom said: “The huge technology changes are clear and as a real estate company we believe it is critical to our business and for retailers but many are confused as to what augmented reality, virtual reality and artificial intelligence offer and where to put their money.”

The Lobby is conceived as a way for brands to experiment and also for smaller retailers or those operating in distant markets, such as Asia, to trial their offer in a low cost and operationally simple environment. The Lobby will also be themed, in a similar manner to the influential Story store in New York.

“This is about creating a new concept for the future and building a completely new customer experience,” she said.

Eurocommercial opens Hallarna shopping centre in Sweden following major extension and refurbishment In October 2017, Eurocommercial formally opened the refurbished, extended and rebranded Hallarna shopping centre in Halmstad, Sweden.

The revitalised centre, which was formerly known as Eurostop, has attracted a roster of well-known Scandinavian and international brands, making it a key regional shopping destination.

Tenants include H&M, KappAhl, Lindex, Willys, New Yorker, Stadium, Nilson Group (Feet First), Jack and Jones, Vero Moda, Gina Tricot, Cubus, Volt, BikBok, Carlings, MQ and Cassels. A new 15-year lease has also been signed by a hotel group which, together with an external unit to be occupied by XXL, will form the last part of the extension to be completed by summer 2018.

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At completion, the centre will have around 90 tenants and a gross lettable area of 44,000m².

The successful renovation and opening of Hallarna is wone of several recent refurbishment and extension projects for Eurocommercial, including: Grand A, Amiens (France); MoDo, Moisselles (France); and I Gigli, Tuscany (Italy). In Sweden the development of C4 Shopping in Kristianstad continues and is expected to open in Autumn 2018.

You can find Eurocommercial at MAPIC on stand R7.D17 For a full update of all our recent leasing news, please visit:

www.eurocommercialproperties.com 20

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NEWS

Legeay joins Resolution Property with mission to help push outlets expansion

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ESOLUTION Property has expanded its operations in the European retail sector, opening its first overseas office in Paris and recruiting one of Europe’s leading outlet specialists to manage further growth, as it plans for future expansion across Europe in the sector.

Mayte Legeay joined the asset management team last week, with a brief to oversee the asset management of the current portfolio of outlets under management, including Designer Outlet Soltau in Germany and Honfluer Normandy Outlet in France, as well as the leasing and eventual development of Billund Designer Outlet in Denmark.

Legeay is the former head and business development director for Neinver France and will be based in the company’s new Paris office, its first outside the UK, as the company actively seeks new retail investment opportunities across Europe, focusing on outlet centres, especially in Scandinavia and western Europe. It expects to invest up to 119_FUTURELAND_N2_PIC

€200m over the next three years, targeting assets where hands-on asset management or creative development can release additional value.

“We believe there are more opportunities across Europe, especially in France, Germany and Scandinavia,” she said. “If you look across the whole of Europe, outlets have performed very well, demonstrating great performance compared with traditional shopping centres in markets like France.”

Having worked previously for both designer outlet specialists McArthurGlen and Neinver, Legeay said that operators and investors “both want the same things but sometimes the vision of how to get there is different”.

Because of her wide experience, she hopes to bring an operational management perspective to Resolution Property and to help with the development and extension of the existing outlets — with a second phase for Honfleur Normandy being considered — as well as acquisition of further centres.

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NEWS Grosvenor’s Skarholmen Centrum helps in Stockholm’s urban revival

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ROSVENOR is pressing ahead with an ambitious project to transform a district of Stockholm with a swathe of modern, mixed-use space.

The landlord and developer is on site in the Skarholmen Centrum area of the city delivering a long-term scheme that will reinvigorate existing buildings and the surrounding streets with new restaurants, shops and public space.

The project revives streets and urban spaces first constructed as part of a masterplan dating back to the 1960s to create a new district and extend the centre of the Swedish capital.

The development was later covered over and converted into shopping-centre space, when the property was sold in the 1980s.

Grosvenor Nordics director Carl Strufve told MAPIC News that the project would “bring back the identity of the block” and reconnect the property with the city in the same vein as the company’s Liverpool One development has done.

He said: “We want to go back to the original 07_CANNES I GET_N_PIC

Grosvenor Nordics’ Carl Strufve

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plans. It needs to function as a city, a district of Stockholm. The inner core of the city is changing and growing. This development will play an important role.”

The Skarholmen Centrum project, which began in 2015, is being delivered in stages, with the first elements, new grocery retail units, opening in the coming weeks. The bulk of the work will be carried out next year, with completion of the overall scheme due by early 2020.

The revived district will benefit from new public transport, infrastructure and residential space being developed in the surrounding area, led by the City of Stockholm, including up to 1,000 new homes nearby.

Plans are also understood to be underway to extend the city’s tram network, bus and subway services to accommodate the extra population the overall redevelopment will bring.

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Innovative retail ‘can help Spain make more of tourist potential’

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HE SPANISH retail property industry has a role to play in attracting a “different type of tourist” with higher spending power to the country, a leading leisure real estate developer has said.

Speaking at an event during MAPIC yesterday which examined new trends and opportunities in the Spanish market, Alfonso Garcia, head of corporate strategy and innovation at Theleisureway, said that the retail market could be better geared to maximise the potential of the country’s huge number of tourist visitors each year.

“Investors, developers and owners need to open their minds to be really innovative in their new projects to increase the attractive-

ness of the retail market for tourists with more money to spend,” Garcia said.

Garcia was joined on stage by a host of experts in the Spanish property market, led by Asociacion Espanola de Centros y Parques Comerciales (AECC) chairman Javier Hortelano.

Also speaking on stage at the busy event, Jorge Alonso Rodríguez, business development manager in Chapman Taylor’s Madrid studio, said that the increasing popularity of leisure and F&B space in malls had altered the way developers and designers think about retail space to the extent that “the shopping centre doesn’t really exist for us any more”.

Theleisureway’s Alfonso Garcia

DIGITAL TECH CAN HELP TRAIN STAFF AND ASSIST CUSTOMERS INNOVATIONS in digital technology are enabling retailers and retail property owners to engage with customers as never before, a director of an international CRM firm has said.

Guillaume Aurine, product marketing director at Salesforce in France, said that a host of new techniques and tools were available to retailers and landlords, including in-app chatbots for training staff and geolocation-based wayfinding functions to guide shoppers around a mall.

“Retail space owners can drive traffic and create more information for the merchants inside,” Aurine said. “The big challenge is to orchestrate all of the different spaces inside.”

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CONFERENCE & EVENT PROGRAMME THURSDAY 16 NOVEMBER ROOM 1 Palais -1 Master of Ceremony CHRIS IGWE Founding Partner MORE OR LESS

9.00-10.00 AFRICA: A PROMISED LAND FOR RETAILERS? Co-org: Mall & Market

ROOM 2 Palais -1 Master of Ceremony EDOUARD DETAILLE President FCE

9.00-10.00 FOOD COURTS, EMOTIONAL SHOPPING & THE NEW LIFESTYLE Sponsors: JLL & Autogrill

10.00-11.00 INVESTING IN THE UK MARKET: NEXT OPPORTUNITIES Co-org: Revo

10.00-11.00 A NORDIC PERSPECTIVE ON GLOBAL F&B TRENDS Co-org: NCSC

11.00-12.00 SHAPING THE RETAIL REAL ESTATE SPACE TO CREATE THE BEST F&B EXPERIENCES Co-org: GH+A / Sponsors: GH+A, JLL & Autogrill

Organiser & Sponsor: Vapiano

14.00-15.30 POP-UP CASES: THE NEW RULES OF MODERN SHOPPING Co-org: BNP Paribas Real Estate Sponsors: Appear Here & BNP Paribas Real Estate

15.30-16.30 WHY IS RETAIL PROPERTY INVESTMENT STILL ONE OF THE BEST REAL ESTATE ASSETS ?

Co-org: CBRE

16.30-17.30 HIGH STREETS: LUXURY VS. MASS MARKET RETAILERS? Co-org: Cushman & Wakefield Sponsor: Move Now

17.30-18.30 CITIES: HOW TO RE-ENCHANT CITY CENTRES? Co-org: Urban Land Institute

Masters of Ceremony Eliott TISCHKER Head of Investments & Acceleration ALTAVIA COACH Colombe LEROY Manager ALTAVIA COACH

09:40-10:00 TAGGALO

Learn how visitors interact with your space

10.00-10.20 REFERO.RE

Stop looking for lease comparables. Exchange it!

11.00-12.00 BELGIAN F&B BRANDS GOING CROSSBORDER Co-org: BLSC

12.00-12.30 VAPIANO: HOW A YOUNG COMPANY GROWS INTO 33 COUNTRIES WITHOUT LOSING THE SOUL

MAPIC INNOVATION FORUM Palais -1

12.00-13.00 E-COMMERCE, BRANDS, PURE PLAYERS: HOW TO CREATE THE BEST PHYSICAL EXPERIENCES Co-org: A.T Kearney In partnership with: Fevad

13.30-14.30 FAMILY ENTERTAINMENT CENTRES: A FUN ENVIRONMENT FOR FAMILY SUCCESS Co-org: TEA Sponsors : Parques Reunidos & Mycotoo

14.30-15.30 BOOSTING THE GERMAN RETAIL REAL ESTATE MARKET: DIGITAL, F&B, REQUALIFICATION...

10.20-10.40 RETENCY

How to re-enchant the customer experience ?

10.40-11.00 IMAS

Xperio - The information and Productivity platform

11.00-11.20 CLEAR CHANNEL INTERNATIONAL Inspiring shoppers and driving sales

11.20-11.40 TRUST SYSTEMS

MallVision Powered by TrustCloud

11.40-12.00 XOVIS

Xovis- More than just people counting

12.00-12.20 QUIVIDI

DOOH: Engage and monetize your mall audience

12.20-13.00 START-UPS ON STAGE! 14.00-14.20 CONIQ

Co-org: GCSC In partnership with: Heuer Dialog

Your Database, The Biggest Asset In Your Portfolio

15.30-16.30 DISCOVER IN VOGUE TURKISH BRANDS

Keep Pushing: who really counts in your business?

Co-org & Sponsor: IHKIB & United Brands Association of Turkey

16.30-17.30 ALL INFORMATION ABOUT YOUR MARKET ENTRY INTO SWITZERLAND Co-org: SCSC

17.30-19.00 ITALY: NEW DEVELOPMENT PROJECTS Co-org: CNCC Sponsors: IGD SIIQ & CIR Food

14.20-14.40 MICROLOG 14.40-15.00 RETAILIC

Shoppers’ behavior analysis for commercial spaces

15.00-15.20 VIADIRECT

ViaDirect wayfinding solution for shopping malls

15.20-15.40 MODDO

How to do e-commerce from your mall: Case studies

15.40-16.00 HIGH STREET REAL ESTATE

Increasing retail expansion efficiency with REX

16.00-16.20 CHAINELS

Modern co-working for shopping areas

16.20-16.40 ADMEMORI

Digital&Emotion : enhance the shopping experience

16.40-17.00 TRANSACTION CONNECT

Turning Spending Data into Customer Loyalty

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

Sponsors: Klepierre, Salesforce & Clear Channel

MAPIC-prog_magnews-480x330_Jeudi.indd 1

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LEISURE ZONE Palais -1

F&B GALLERY Riviera 8

Master of Ceremony

Master of Ceremony

SAM GENNAWEY Special Projects GODDARD GROUP/GGE

OTHER LOCATIONS & NETWORKING EVENTS

ADAM GRIFFIN Director Food Service Consulting JLL

8.00-9.30 USA BREAKFAST*

(Verrière Grand Auditorium) Sponsor: Acadia Realty

10.40-11.00 HAPPYBOX

HappyBox: the new generation of playgrounds

9.00-12.30 RUSSIAN BREAKFAST*

10.00-11.00 MAPIC PRESS CONFERENCE

(Hotel Majestic) Organiser: Impress Media Publishing House

Special announcements

11.00-11.20 WALLTOPIA

The Game Changer in Retailtainment

10.30-12.00 MATINALE DE L’ECONOMIE

11.15-11.45 ALAVANCE

11.20-11.40 INTERNATIONAL PLAY COMPANY

With Alavance we’ll not leave you hungry

11.40-12.00 CONCEPT I DESIGN

Fettuccine Alfredo all over the world for everyone

Malls need family entertainment centres

Inspiring spaces, creating unique places!

12.00-12.20 VORTEX AQUATIC STRUCTURES INTERNATIONAL The wonder of water

(Verrière Grand Auditorium) Organiser: Metropole Nice Côte d’Azur

13.00-14.30 ITALIAN LUNCH*

11.45-12.30 FETTUCCINE ALFREDO

(Verrière Grand Auditorium) Sponsor: IGD SIIQ & CIR Food In partnership with: CNCC

14.00-14.30 GRUPPO ATR

A New Way To Think The Restaurant

14.30-15.15 WE LOVE PURO

16.00-17.00 BEIJING CAPITAL GRAND & CAPITAL OUTLETS

We Love Puro - Naturalmente Buono

14.00-14.20 AISOLVE

How to monetise from location based VR attractions

14.20-14.40 PARAGON CREATIVE

Creating Experiential Environments

14.40-15.00 UNO PARKS

Retailtainment: Upgrading Your Customer Experience

15.15-16.00 CAFFE PASCUCCI

(Verrière Grand Auditorium) Organiser: Capital Grand

16.00-16.45 LAURENZI CONSULTING

The very italian food experience

16.45-17.15 DELIFRANCE

15.00-15.20 TIMBERPLAY

18.00-19.30 EXCLUSIVE DIT NETWORKING EVENT

Improving retail property is childs play

15.20-15.40 KCC

(Verrière Grand Auditorium) Organiser: Department for International Trade

15.40-16.00 QUBICAAMF WORLWIDE

19.00-22.30 MAPIC AWARDS GALA DINNER*

This is Retailtainment

(Salon des Ambassadeurs - Palais 4) MAPIC 2017 Official Sponsor: Thor Equities MAPIC Awards 2017 Sponsor: Manyavar

FEC - the future of entertainment center business

23.00 MAPIC PARTY

Open to all MAPIC Delegates

(Salon des Ambassadeurs - Palais 4) Official Sponsor: Thor Equities

E

FOLLOWING THE TRENDS

SHOPPING THE WORLD

DIGITAL

LEISURE

FOOD & BEVERAGE

08/11/2017 17:16

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Discover our MAPIC events 14-16 November 2018 Cannes

MAPIC STAND

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The leading international retail real estate event 8,500 participants | 2,500 developers | 2,100 retailers

24-26 April 2018 Moscow 23-24 May 2018 Milan

23-24 May 2018 Milan

5-6 Sept. 2018 Mumbai

Summer 2018 Shanghai

November 2018 Hong Kong

mapic

NEWS National Geographic brand centre to make European debut in Italy

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EVELOPER Aedes SIIQ in partnership with iP2 Entertainment, a leading developer of indoor theme parks, is to open the first National Geographic Ultimate Explorer entertainment centre in Europe within the Caselle Open Mall, Torino, Italy.

It will include a variety of themed attractions and interactive activities inspired by the explorations made famous by the National Geographic Society in its 130 years of existence, combining the elements of theme parks, museums, gaming and role-playing.

Giuseppe Roveda, managing director of Aedes SIIQ, made the announcement, and gave details of the Caselle Open Mall at a presentation during MAPIC. GLA for the entire scheme will exceed 113,000 sq m in a project that will include more than 200 stores, a 6,000 sq m food and beverage offer and 15,000 sq m of leisure.

Kathryn Fink, managing director, FNG, Italy said that the launch of the Ultimate Explorer centre reflected the intention of

Giuseppe Roveda of Aedes SIIQ at his MAPIC briefing

the world-famous organisation to create brand centres that would encourage children to explore and learn more about the world.

National Geographic opened what it describes as an ‘immersive centre’ in Times Square, New York recently, also with iP2, its worldwide partner.

Fink said: “We are delighted to announce this opportunity to open in Italy with a centre that will attract and educate children and families and reflects our desire to open brand centres to help entertain and educate.”

Of the shopping and leisure scheme Roveda said: “The dominant format of shopping centres in Italy has seen few or minimal changes in the last 15 years, notwithstanding the massive changes in the market. The Caselle Open Mall is breaking the mould. Ten years have elapsed since we acquired the site where the Caselle Open Mall will be built; after a long research and development effort, it gives me great satisfaction to see that the time for the implementation of the project has come.”

Green roof tops Slovakian project A NEW development in Bratislava, the capital of Slovakia, will offer exciting new retail opportunities as part of a larger mixeduse scheme.

Stanica Nivy will boast 70,000 sq m of retail and will also include a fully integrated international bus station. The retail offer will include a 3,000 sq m fresh food market offer on the top floor with around 25% of the retail space in the centre dedicated to food and beverage and groceries.

A services zone will be on the ground floor while the other floors will mainly feature fashion retailers. The roof of the development will feature a green space the size of two football pitches

Peter Sluka and Martina Jamrichova of HB Reavis

that will include a 500-metre running track, and space for yoga and botanical walks for children.

“This is going to be a gamechanging project,” said Peter Sluka, retail leasing manager of HB

Reavis. “We would like to attract new retailers into the country and those that are present already we would like to have flagship stores,” he said. The scheme is due to open at the end of 2020.

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PHYSICAL STAYS RELEVANT AMID ONLINE GROWTH ONLINE shopping is set to account for 16% of total global retail spend by 2021, according to new research from TH Real Estate.

However, despite the growing popularity of online spending the best retail assets continue to enjoy near-100% occupancy, and strong sales densities, says the company.

It claims that by focusing on key consumer traits — including experience, convenience, value, wellness, connectivity and flexibility — bricks and mortar stores can continue to remain relevant to customers.

It says investments should focus on assets in these areas — with lifestyle centres that combine retail, leisure and residential development offering the best opportunity for investment over the medium term.

“The smartest investors will invest in experiential, accessible, value and lifestyle centres, making sure all types have a focus on flexibility,” said Angela Goodings, associate director of research. “The fragmented nature of the retail environment means that an asset type, its consumer traits and personality, as well as locational factors, need to be assessed to understand long-term investment value.”

The company said there was a focus for both in-store and online in tomorrow’s world and that those stakeholders who can combine both channels will thrive into the future.

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NEWS Apsys development set to revive the heart of the city of Bordeaux

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R E NC H d evelo p e r Apsys is to embark on an urban development project that will radically transform part of the city of Bordeaux, the company announced at MAPIC yesterday.

The works, unveiled during a special event attended by Apsys founder and president Maurice Bansay, will see a major stretch of the city redeveloped to create a pedestrianised connection between the Bordeaux-Saint-Jean railway station and the river Garonne, and bring in a swathe of new retail, restaurant, hotel and office space.

Apsys chief executive Fabrice Bansay told MAPIC News that the project was designed to “keep the authenticity of Bordeaux” while at the same time reviving an under-developed and underperforming part of the city.

“The main idea was to create an open stretch between the train station and the Garonne and develop and revitalise the city centre by creating a mixture of retail, residential, office and hotels,” he said. “Bordeaux is one of the trendiest cities in France,

Apsys founder and president Maurice Bansay

and now it is only two hours from Paris. The city’s architecture is very classical and beautiful, but this area is not of the best quality.”

He added:“This project will revitalise the heart of Bordeaux.”

The ambitious scheme, which is set for completion in 2022, will create 88,000 sq m of new mixed-use space in the centre of the city, adjacent to existing streets and buildings.

The proposed pedestrianised walkway created by the works will measure 600 m by 20 m and will run through a number of the new buildings lying between the river and the railway station.

Much of the newly-created property will accommodate new retail units, alongside catering, hotel and leisure space including new public land close to the river geared towards the themes of healthy-living and exercise.

Wanda invites foreign brands to China WA NDA, the world’s la rgest property company and the biggest developer of malls in China, is riding a wave of urbanisation, which is driving demand for new shopping malls. The company’s deputy president Wang Zhibin said the population of China’s cities grows by 20 million every year, and the real estate industry has reacted by opening new malls at an ever-increasing pace. In 2016 465 malls of more than 30,000 sq m opened but 2017 is expected to see 864 such projects.

Wanda’s share of this market is growing and it now has 224 Wanda Plazas t rading in locations including Beijing, Shanghai, Wujiaochang, Chengdu, Jinnui, Kinming and Zishan. Its total f loorspace grew by 35% in 2016 alone to reach 32.33 million sq m.

I ncreasingly Ch inese consumers are hungry for global brands and Wang’s message to the international industry at MAPIC is: “I’d like to invite foreign brands to China.”

Howen Jia Hao, Wanda’s general manager of leasing, said

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new entrants need to be aware of key differences between Ch i nese a nd Eu rop ea n or American malls. “For us our tenant mix is a key point of difference,” he said. “In China our malls have 35% of GLA dedicated to F&B and 20% focused on kids.”

Brands also need to be prepared to adjust their assortment to meet the needs of Chinese shoppers, he said. “In my experience, the biggest challenge for new entrants is finding the right products for the Chinese market.”

AEW RETAIL FUND TO EXPAND FURTHER ACROSS EUROPE AEW’s City Retail Fund has now invested €400m in prime high-street properties across Europe, with three more deals expected to complete before the year end.

Director of fund management Christina Ofschonka said assets now included sites in Madrid, Milan, Rome, Copenhagen, Ghent, Dublin and Paris, and the fund is keen to expand into more locations with a current war chest of €350m. “Lot sizes have ranged from €10m to €100m, but €40m to €50m is where we feel most comfortable,” she said.

“The fund targets core high-street properties and we have both luxury and massmarket occupiers,” Ofschonka said. “When we make an investment decision it’s the location that matters.”

AEW raised an initial €500m from 11 investors, with the ability to leverage that by 50%.

Ofschonka said that, as an open-ended fund, there is the option to go for further rounds of funding once the initial round has been placed in the market.

At MAPIC Ofschonka is making a point of engaging with retailers. “The fund is wellknown in the investment community but less-so with retailers,” she said.

AEW’s Christina Ofschonka

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FEATURE

Welcome to the smart mall INNOVATION

What are the most exciting examples of innovation in the retail property space, and how do landlords and retailers know what’s right for them? Ben Cooper takes a look at how tech helps retail

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HEN Apple senior executive Craig Federighi unveiled the Indoor Maps feature for iPhone in June this year, it was, he said, about getting shoppers “enhanced information for when you get there”.

Shopping centres and stores would be made more transparent; the interior, the layouts, what was on the shelves in the stores, would all be visible from the outside in.

An array of digital innovations is becoming available for shoppers. From live-streamed fashion shows to interactive digital displays to 3D digital visualisation as a means of tracking customer movement, technology is making malls smarter, more engaging, and more potentially value-added than ever.

It was late summer and the fashion world was poised as backstage the Versace models prepared to take to the catwalk. Only this year was a little different: the elite gathering of beautiful people was to be joined by a far larger, less select audience of live streamers, tuning in from all over the world.

If fashion designers can reach unprecedented audiences, then retailers, even shopping-centre owners, can do it as well. Topshop’s catwalk shows are watched each year by shoppers in and outside its Oxford Street store in London; Westfield’s huge investment in digital technology has allowed its brands to stream live content at all of its malls around the world simultaneously.

It’s a new, more tailored, form of advertising which just scratches at the surface of the potential that digital display technology has allowed, according to Damon Crowhurst, business director at Samsung Electronics Europe.

“We are doing a lot with people like Westfield and other mall owners in digital displays; they are an important part of their business,” Crowhurst says. “Large format

Westfield has invested heavily in digital technology to enhance its physical mall developments. Pictured: the extension to Westfield London, in Shepherd’s Bush

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displays are a revenue-creator for landlords but also a way to make a mall more engaging to customers.”

And digital displays aren’t the only new media available for both engaging customers and maximising the revenue potential of a mall. One of the biggest breakthroughs, according to Gary Sankary, global industry retail manager at geographic information specialist Esri, is in the level of knowledge mall owners now have about where people are in their stores.

“Centre owners are able to segment their rents based on foot traffic more accurately when they can describe real movement and dwell times,” Sankary says. “To identify how in-store sales and media are working, bricks-andmortar retailers are using indoor location technology with real data.” He adds: “The days of only having experience and intuition to make store merchandising decisions are over.”

Westfield co-CEO Steven Lowy reiterates that mall owners cannot only operate in physical space any more.

Lowy believes instead that developers need to consider their role as connectors between retailers and consumers across multiple channels.

He also feels that the traditional view of retailers retaining data and refusing to share information is outdated, calling it “yesterday’s game” as he believes that retailers needed to collaborate on data to improve the consumer experience.

Citing the recently-opened Century City mall in Los Angeles, which has been completely refurbished, he says that the scheme includes 50 retailers new to Westfield and a much larger F&B, health and wellness, and services component “within a beautiful environment”.

Lowy insists that this last part remained crucial, because shoppers want experiences and the environment plays a major part in their decision making, if they are

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FEATURE

Examples of how Esri mapping technology can aid and inform professionals

to be persuaded to choose physical shopping rather than buying online.

And looking at Westfield’s two London schemes, he points out that the projects have achieved huge sales and have delivered to a need in London, calling the malls “physical disruptors in the market”.

Lowy says that a single-channel approach is an old-fashioned way of looking at the offer and says that “web and app-based” approaches were now in the past and instead augmented reality and physical and online platforms had become the way of delivering to the consumer.

“It’s incumbent upon the industry to operate a dualstrategy,” he says.

Looking to the future, he says that the company – which has formed its own Labs business to promote and develop technologies for retail environments — is very interested in voice-recognition technology and believes that this will be a major driver of the next stage of consumer buying.

Also a thing of the past, it seems, is having only limited information about a centre before you arrive. Apple’s

Galerie Gaite, Paris: Unibail Rodamco has invested in a series of innovations for its projects

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announcement in June that its maps function was being augmented to include an inside view of retail locations, was big news. But it wasn’t unique. Indoor mapping isn’t just a handy tool for users, it has big potential for revenue generation for both retailers and landlords.

“Indoor mapping is the next big thing,” Sankary says.

“All of the capabilities that geographers and data scientists have used for years to analyse and present data about cities, counties or other geographies are just as applicable inside the four walls of a store or warehouse.”

He adds: “Knowing where things are, how people and assets interact with things indoors, provide critical insights about optimisation and engagement.”

With a new supermall opening seemingly every year in the UAE, competition between developers and between shopping centres has pushed the overall standard of innovation and digitisation beyond that of Europe and even the US. From the 54-monitor video wall at Majid Al Futtaim’s Mall of the Emirates, to the digital wayfinding systems installed at the Abu Dhabi Mall, the region is producing as standard, some of the most innovative digital features anywhere in the world.

But developers everywhere are getting up-to-speed with digitisation, driven by the rising expectations of customers and retailers. As far back as 2013, Europe’s largest investor in retail real estate, Unibail Rodamco, unveiled a series of innovations as part of its Digital Dream initiative, followed up last year with the launch of a mobile app packed with features including a smartpark system which screens users’ license plates and logs their parking space, a smart-map function for use within its malls, a digital loyalty card, and an interactive chat assistance function.

And last year one of Europe’s biggest retail property players, French developer Altarea Cogedim, upped the stakes with the creation of its own digitisation and innovation department. Aptly named AltaFuture, the setting up of the department was a clear statement of the company’s desire to invest in the digital age.

Announcing the move, Altarea Cogedim general manager of digitisation and innovation Albert Malaquin says: “The digital transformation is changing our core business and our processes, enabling us to switch into the era of collaboration and thus respond better to new uses.”

While shoppers move around a mall they leave what Sankary describes as a “digital trail” which retailers can use to “better understand who shops in their stores and where they’re coming from”.

“A GIS [geographical information system] enables visualisation of all of this data in maps,” he says. “This enables people to derive insights quickly. I think of this as visual data mining. Seeing patterns in data-based location, density and velocity are two great examples. How many people stopped in a particular spot and where are my highest sales coming from?”

If retailers and mall owners want one thing from digital technology, it is to be better informed so they are not, as Sankary says, being forced to rely on “intuition” or make decisions in the dark. If knowledge is power, retail property owners have never had more power at their fingertips than in these innovative days.

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5-6 September 2018 Mumbai, India www.indiaretailforum.in

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FEATURE INDIA

Global brands have eyes on India India has never looked more attractive to foreign retail companies. But with demand at an all-time high, the country’s retail sector now has to focus on issues relating to supply. Helen Roxburgh reports

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Fashion on display at Manyavar

HIS YEAR, India knocked China off the top spot as the most desirable retail market in the world. According to consultancy AT Kearney, India benefits from a favourable foreign investment environment, strong economic growth, and a consumption boom.

Changes to foreign investment regulations mean brands can invest directly into the market. H&M is one that has taken advantage of the new rules, entering in 2015 with 100% direct foreign ownership. The fashion retailer now has 21 stores in 11 cities, contributing to 69% annual growth in branded fashion sales across India. Other brands that have entered in the last two years include Muji, Under Armour, IKEA, Kate Spade, and Banana Republic, while rival Inditex also has stores in the country.

“There is an evident shift in lifestyle among Indian consumers,” says Sneha Jain, general manager at Indian retailer Manyavar. “This can be attributed to a number of reasons; a growing middle class, higher disposable incomes and the increasing demand for variety.

“This combined with the government’s current support towards the industry through various policies and reforms have allowed a lot of players to enter

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the market, which in turn has helped the retail sector to move to a more organised platform.”

A World Bank study pushed India up 30 places in terms of the ease of doing business, and the retail market is expected almost to double by 2020, growing to $983bn, up from $553bn in 2016.

But entering India has never been easy. Many brands have spent years circling the market; some have abandoned the country completely, for example supermarket Carrefour. Problems include a lack of suitable retail space. CBRE says Delhi’s current supply pipeline is 0.85 million sq ft (79,000 sq m), while Mumbai’s is 1.3 million sq ft (120,773 sq m) — there are only around 60 prime malls across the entire country.

“I think space is going to be a challenge, especially in the top-tier cities, because malls are all already crowded and mostly fully occupied,” says BS Nagesh, founder of TRRAIN (the Trust for Retailers and Retail Associates of India) and non-executive vice-chairman of Shoppers Stop.

“The rental in good-quality malls has also gone up substantially. So, brands that want to enter India should be able to set their eyes on the tier-two, -three, or -four cities, and should be able to work an omnichannel strategy that involves a combination of online and offline.”

There is a feeling of deja vu about India’s retail optimism; in 2007, India saw unprecedented retail investment. But after the 2008 financial crash, the market slumped.

However, investment is now regaining momentum.

This year, Singaporean sovereign wealth fund GIC invested $1.4bn with Indian retail developer DLF, and in April the Canadian Pension Plan Investment Board announced a $454m joint venture with Phoenix Mills to develop retail-led developments. Blackstone’s Indian retail fund Nexus Malls already has 418,063 sq m of retail space. JLL says real estate transaction volumes reached $2bn in India in Q3, the highest quarterly level on record.

The growing number of new retailers, together with a more favourable investment environment, growing consumer consumption and stable government, mean India looks set to keep stealing global retail attention.

“Every brand wants to enter India, but they need that long-term vision and brand — a lot of retailers that entered and left had not understood the market well,” Nagesh says. “I would say planning, partnership and patience should be the key words for any retailers entering in India. But what is clear is that it is impossible for any global brand now to ignore India.”

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PROJECT NEWS AU FIL DE L’EAU

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POLYGONE SHOPPING MALL

City: Verviers, Belgium Developer: City Mall Ideally located at the borders of Germany and the Netherlands, Au fil de l’Eau in Verviers has an important cross-border catchment area. The project has excellent accessibility.

It will animate the heart of one of the most important cities of Wallonia and the second-biggest conurbation of the province of Liege.

With an area of 28,000 sq m, it will offer a balanced commercial mix, meeting the wishes of both consumers and retailers. The food court will have a central position with a range of quality restaurants and the scheme will be served by 1,150 underground parking spaces.

Construction is due to start in 2018 with a three-year build period. On completion, the project is expected to attract 5 to 6 million visitors per year, bolstering the status of Verviers as an economic and commercial hub for the region.

City: Montpellier, France Developer: SOCRI Promotions Ideally placed between the historic city centre with its famous Place de la Comedie and the contemporary Antigone district, created by Catalan architect, Ricardo Bofill, Montpellier’s Polygone shopping mall, with its 11 million annual visitors, has been Montpellier’s commercial powerhouse for over 40 years.

Inaugurated in 1975, and then extended in 1996 with the addition of an extra level, the mall will undergo complete refurbishment, without closure, from autumn 2019. Extended and redesigned by Jean-Paul Viguier, the current mall space will be transformed into a streetscape with a dramatic glass roof, providing natural light while maintaining comfortable temperatures. It will house 110 stores in 45,000 sq m of GLA. The street, open to the sky and to the rest of the city, will make Polygone Montpellier a seamless pedestrian link between the Place de la Comedie and Antigone, significantly enhancing the commercial balance of one of Europe’s most extensive pedestrian zones.

The ambition of this €50m project goes further than the Polygone mall alone in that it forms an integral component of the action plan for the city centre implemented by the Montpellier Metropole and the City of Montpellier.

ZWEIBRUCKEN FASHION OUTLET

GRAN RENO EXTENSION

City: Zweibrucken, Germany Developer: VIA Outlets Zweibrucken Fashion Outlet, Germany’s largest outlet shopping destination welcoming 3.9 million guests annually, is located in Rhineland-Palatinate, strategically situated on the border where Germany, France and Luxembourg meet.

The Fashion Outlet is home to more than 100 stores of leading international fashion and lifestyle brands. A programme to upgrade Zweibrucken Fashion Outlet to 29,100 sq m is scheduled to take place in 2018-2019.

The upgrade will make the centre even more attractive to both local and international visitors. Already China, Kuwait and Russia together account for more than 50% of total non-EU sales, reflecting the diverse and international profiles of its guests.

City: Bologna, Italy Developer: Klepierre Gran Reno shopping centre is located in Casalecchio di Reno, the main retail and leisure destination in the region with a total retail offer of 160,000 sq m encompassing Gran Reno, Carrefour, IKEA and Leroy Merlin. It also houses the Unipol arena complex, the largest and most modern complex for sport and cultural events in Italy.

The 16,000 sq m extension will create a 55,000 sq m regional shopping centre with no comparable competitive offer in what is ranked as the wealthiest catchment in Italy. The existing gallery will be fully refurbished in line with the extension that will be designed according to the best standards, inspired by Nave de Vero shopping centre which opened in Venice in 2014.

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PROJECT NEWS SERENADA

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SALARIS SHOPPING MALL

City: Krakow, Poland Developer: Mayland Real Estate Opened in October 2017, Serenada shopping centre in Northern Krakow acts as a link between all the existing retail and entertainment facilities in a fragmented urban environment: the aqua park, Krokus shopping centre, OBI, DIY, Auchan hypermarket and the Multikino cinema. Thanks to its innovative architecture and perfect fit into the surrounding space, Serenada has become the number one choice for shopping in Krakow and the entire region with a catchment of more than 1 million people.

Mayland’s intention is to modernise the existing Krokus shopping centre and to combine it with Serenada within the existing retail zone. The enlarged Serenada, to be completed in 2020, with the adjacent facilities, will be the largest retail and leisure complex in Krakow at 106,500 sq m, with 310 stores.

City: Moscow, Russia Developer: Horus Group Horus Group operates in the retail property market of Moscow as a developer, owner and manager of shopping malls. The group’s Salaris project is now under construction as a part of the Salaryevo transport hub on Kievskoye highway in New Moscow.

A shopping mall with a total area over 310,000 sq m will become the gateway to New Moscow. Convenient access will contribute to strong footfall levels from the launch of the project with parking for 5,500 cars, as well as metro and other public transport links.

The project concept provides for a hypermarket, a multiplex cinema from a leading national network, electronics and appliance stores, a furniture hypermarket, entertainment and family leisure activities, clothing and footwear stores, restaurants and cafes across 250 units.

ZSAR OUTLET VILLAGE

City: Vaalimaa, Finland Developer: East Finland Real Estate Oy The first premium outlet village in Finland, the 20,000 sq m Zsar Outlet Village will open in 2018. The development will open with an initial phase of 12,000 sq m with 65 stores and restaurants.

Located on the EU-Russian border and halfway between St Petersburg and Helsinki, Zsar’s catchment is 8.5 million Finnish and Russian consumers within a 200km radius.

Zsar is located 300 metres from the busiest EU-Russian border checkpoint with 3-4 million annual border crossings. In addition, there are further 4-5 million crossings through three other major checkpoints an hour’s drive north of Zsar.

Over 70% of Russian tourists cite shopping as their primary reason to visit Finland. The route is also popular among the rapidly growing number of Chinese tourists who travel from Finland to Russia.

A new direct E18 motorway from Helsinki to Zsar will open in 2018, reducing driving time to approximately 75 minutes. A new motorway from St Petersburg is also under construction, scheduled to be ready in 2018-2019.

Retail analyst FSP believes the combination of high volumes of Russian tourists, under-shopped Finns and an under representation of brands across the region means that Zsar will enter the top 10 outlets in Europe.

THE MARKET — SAN MARINO OUTLET EXPERIENCE

City: San Marino Developer: The Market Propco The Market — San Marino Outlet Experience, is a new outlet concept developed and promoted by international department store operator Borletti Group, the Italian REIT Aedes, retail and outlet specialist Dea Real Estate Advisor and investment and strategic advisor VLG Capital.

The Market will be located in the Republic of San Marino, a land rich in history and tradition, at the heart of the Adriatic Riviera, a well-established tourist destination with more than 6 million visitors a year and only 15 minutes away from the Rimini Sud motorway exit and 25 minutes from Rimini Airport. San Marino will also represent a unique investment opportunity thanks to its efficient administrative and tax system.

The Market — San Marino Outlet Experience will feature contemporary and innovative architecture with the aim of becoming a highly attractive destination for leading fashion brands to create a top-tier retail mix with an original shopping experience supported by exclusive services. A food court dedicated to quality products, local and international culinary delights, and a selection of emerging brands will complete the retail offer.

The centre will be developed in two phases, with the first due to open in late 2018.

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Starfield Hanam Hanam, South Korea, 2016

Qian Tan Office Park Shanghai, China, 2017

ION Orchard Singapore, 2009

Chengdu IFS Chengdu, China, 2014

Benoy, now in its 70th year, is a global family of design specialists committed to delivering world-class solutions for the built environment. Balancing creative vision with commercial viability, we work with clients to create iconic destinations that enrich people’s lives, strengthen communities, enhance nature, and deliver lasting economic value. We specialise principally in masterplanning, architecture and interiors.

To find out more, please visit us at Stand P-1.K12 or contact amy.cartledge@benoy.com to arrange a meeting with the team benoy.com

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