Retail People Magazine – Issue 1

retail ISSUE 01 OCT 2014

Effective Mall Practices

The GCC leads the way for best retail management

Don’t believe the hype E-commerce

Red Sea Mall’s CEO

inside

rld: the Wo Mall of ega next m Dubai’s S U L P ; project ors to it is v n o 15 milli 14 h in 20 Makka

Mohammad Alawi talks about his ambitious expansion plans

EVENTS

|

NETWORKING

|

CONFERENCES

|

E D U C AT I O N

C I R C U LAT E D I N 4 5 CO U NTRIES

R E T A I L

C O M M E R C I A L

H O S P I T A L I T Y

R E S I D E N T I A L

Specialized in offering interior design solutions, project management, fit-out, refurbishment and furnishing solutions for retail, commercial, hospitality and residential projects.

Neocasa Interiors L.L.C. P. O. Box 30393, Dubai, U.A.E

Tel: +971 4 334 9295 Fax: +971 4 357 3232

www.neocasa.ae info@neocasa.ae

Contents Middle East Council of Shopping Centres 803, BurJuman Business Tower PO Box 43972, Dubai, UAE Tel: +971 4 3597909 Fax: +971 4 3558818

David Macadam Chief exeCutive OffiCer

Veena Desa

5

26

Foreword by David Macadam

E-commerce update in the USA

7

27

Interview with Mohammed Alawi, CEO of Red Sea Mall

NextGen Qatar 2014

12 JTR 2014

viCe President

Juri Daendler team suPPOrt exeCutive

Mariz Matocdo team suPPOrt exeCutive

18 Mall of the World

22

28 NextGen Jordan 2014

30 NextGen Dubai 2014

32 UAE Career Fair

RECON 2013 (with Phil McArthur’s ‘Best Mall Practices’)

34

Mall of the World, Dubai

Makkah

Iran Retail Conference

A Motivate Connect Publication Media 1 Tower, Dubai Media City PO Box 2331, Dubai, UAE T: +971 4 4273000 F: +971 4 42802261 motivatepublishing.com connect@motivate.ae John Deykin General manaGer

Rami Rahman rami@motivate.ae reGiOnal manaGer

Ingrid Valles seniOr assiGnments editOr

Sunil Kumar head Of PrOduCtiOn

Victor Mingovits seniOr art direCtOr

Noel de la Pena seniOr desiGner

PRINTED By RAShID PRINTERS

M c A RT H U R +C O M PA N Y S H O P P I N G

C E N T R E

S P E C I A L I S T S

Welcome Message Welcome to the first edition of Retail People Magazine!

David Macadam

‘‘

Our new magazine will fill a vital gap and provide a channel of communication to all our members

’’

We are very excited at having this opportunity to reach out to members of the MECSC in a new way.

Set for circulation in 45 countries worldwide, Retail People is for all members of the retail world. Our team began with the MECSC Directory in 2014, expanding its reach to include retailers, recruitment companies, fit-out firms, architectural firms, advisors, consultants, brokers, leasing entities, property managers and more. Our new magazine will include all of these industry groups, as well as construction companies and construction supply firms. Retailers across the MENA region in particular have been enthusiastic about making a forum within the MECSC for their involvement in the organization.

The MECSC wants Retail People to be the foremost source of knowledge and information for the retail industry, where our members can have an active voice in the activities of our organization. Our new magazine will fill a vital gap and provide a channel of communication to all our members.

We want Retail People to be a catalyst for new members to join our organization.

We and the team at Motivate Publishing have opened our minds to a new way of communication. Our first issue is of a ‘yearbook’ format, highlighting our achievement as an organization during our first year as a new team leading the MECSC. Retail People is a highly valuable benefit for a member. Set for publication every quarter beginning January 2015, the magazine will be an enduring communication vehicle where our advertisers will have a select market to target.

To ensure the financial viability of the magazine, the sales team at Motivate will be selling advertising space. Our team in the MECSC office will also be busy selling advertising.

Marketing your company successfully is generally a long-term proposition.

The consistency of your message is vital to the success of your marketing strategy. We want to thank our patron sponsors who made the first issue of Retail People a reality. The Red Sea Mall and Marina Home are the first two organizations who have made our magazine possible. We thank you for your support and vision in helping launch this magazine.

Red Sea Mall’s CEO on the mall’s future Mohammad Alawi talks about Red Sea Mall’s current expansion project Mohammad Alawi CEO, Red Sea Mall

WHY IS RED SEA MALL CONSIDERING THE EXPANSION? WHAT ARE THE GOALS?

further strengthen its position in the market.

The Red Sea Mall expansion plan is part of our continuous development strategy. We remain committed to offering our customers the best shopping and leisure experience, by upgrading our existing facilities and ensuring a diverse and premium merchandise mix.

The goal of the expansion is to elevate the standard of the mall and

WHEN WILL CONSTRUCTION START ON THE EXPANSION? HOW LONG WILL IT TAKE TO FINISH? Construction is set to begin by the end of January 2015. If everything goes according to plan, the multiphase expansion should be completed within eighteen months to two years. In-depth preparation for the expansion, such as market retailpeople | 7

studies, structure layouts, and current tenant impact analysis, has been going on for the past year to ensure that the expansion process is smooth.

What is the size of the extension? hoW many neW shops should Rsm visitoRs expect?

The extension is approximately 35,000 square metres GLA (gross leasable area). This encompasses 30,000 – 35,000 square metres GLA of retail space plus food and beverage, and a new array of neverseen-before concepts in KSA. As well as new outlets inside the mall, the expansion features will transform the mall into a 145,000 GLA square metre outdoor plaza with restaurants and international brand stores. The expansion will also include a new parking structure housing approximately 1,200 additional parking spaces.

What is the cost of investment foR the expansion?

The cost is approximately SR 200 million.

Will Rsm close duRing constRuction? if yes, hoW Will it cope?

It will be business as usual at the Red Sea Mall. We have methodically planned this expansion in such a way as to create minimal disturbance to our tenants and visitors.

WheRe Will the expansion be located?

The phased expansion will begin with the restructuring of the area previously known as ‘Andalusia’ at the first level, thus reformatting approximately 3,000 square metres of GLA. Civil works of this phase has already begun.

We will then commence ‘Gate 1 Expansion’, adding between 8 | retailpeople

30,000 – 35,000 GLA square metres. The Gate 1 Expansion includes two levels with the top floor having a collection of fine dining and fast food restaurants, and the lower floor offering a mix of casual and premium retail brands.

The third phase includes ‘Gate 9 Expansion’, and comprises an outdoor plaza of 3,000 – 4,000 square metres in size, offering a mix of retail stores and cafes.

Will the expansion affect a visitoR’s expeRience at the mall?

We have created a plan to ensure that a visit to RSM will remain an enjoyable experience for our guests, even during the expansion. This includes a detailed traffic management plan to reroute traffic, while we work on the said gates expansion. All the gates have parking areas and easy access to the mall.

What message Will Rsm send to its visitoRs foR the inconvenience of the constRuction?

The message we would like to send to our visitors is that this expansion is for you. We have gathered feedback on the latest brands, restaurants and entertainment options that our customers want — and we are undertaking this expansion in order to meet those needs, and hopefully exceed customer expectations.

is Rsm consideRing opening a neW bRanch?

A future new branch for the Red Sea Mall is a real possibility. However, our primary focus is the successful completion of this expansion project. Once we have completed the project, we may consider taking the concept and tailoring it to suit another market. rp

Creating Value Through Experience Retail advisoRy development ConsultanCy / management seRviCes leasing management seRviCes asset management seRviCes

For further information please contact us on:

+971 (4) 379 0379, or email: info@msquared.ae www.msquared.ae

‫مراحل عدة‪ .‬لقد أمضينا العام الماضي في اإلعداد‬ ‫الدقيق لعملية التوسع‪ ،‬شملت دراسات السوق‪،‬‬ ‫وتخطيطات الهيكل‪ ،‬وتحليل أثر التوسعة على‬ ‫المستأجرين الحاليين‪ ،‬وذلك من أجل ضمان نجاح‬ ‫التوسعة وسالسة تنفيذها‪.‬‬ ‫وفي الوقت الحالي‪ ،‬نحن بانتظار الموافقات‬ ‫النهائية من الجهات البلدية والحكومية ذات‬ ‫العالقة على مشروع التوسعة‪.‬‬

‫وما حجم التوسعة المراد تنفيذها خالل‬ ‫العام القادم؟ وما عدد المتاجر التي‬ ‫سيتم استحداثها؟‬

‫ستبلغ مساحة التوسعة الجديدة نحو ‪ 145‬ألف‬ ‫متر مربع‪ ،‬حيث ستضيف ‪ 30‬ألف إلى ‪ 35‬ألف متر‬ ‫مربع من المساحات التي ستخصص للمتاجر‪.‬‬ ‫كذلك‪ ،‬سنقدم عروض ًا جديدة داخل المول‪،‬‬ ‫وسنستحدث مساحات مفتوحة في الهواء الطلق‬ ‫تصل إلى ‪ 20‬ألف متر مربع‪ ،‬تضم مطاعم ومتاجر‬ ‫لعالمات تجارية عالمية‪ .‬كما ستعمل التوسعة‬ ‫الجديدة على تعزيز راحة العمالء من خالل مواقف‬ ‫متعددة األدوار‪ ،‬تستقبل نحو ‪ 1200‬سيارة إضافية‪.‬‬

‫وما القيمة اإلجمالية لهذه التوسعة؟‬

‫ستبلغ تكلفة اإلنشاءات نحو ‪ 200‬مليون‬ ‫ريال سعودي‪.‬‬

‫هل سيتم إغالق المول خالل أعمال‬ ‫اإلنشاء؟ وكيف ستؤثر هذه األعمال في‬ ‫عمل المول في حال لم يتم إغالقه؟‬

‫سيستمر الـ «رد سي مول» في العمل كالمعتاد‪،‬‬ ‫وقد وضعنا اإلجراءات التي تكفل خفض تأثير أعمال‬ ‫التوسعة على المتسوقين أو أصحاب المحال‬ ‫التجارية إلى حده األدنى‪ ،‬إضافة لتوفير جميع‬ ‫اجراءات األمن والسالمة للعمل اليومي بشكل‬ ‫كامل للزوار‪.‬‬

‫وإلى أي حد ستمتد توسعة المول؟‬

‫التوسع الذي سيتم على مراحل عدة سيبدأ بإعادة‬ ‫تنظيم منطقة «أندلسية» وإضافة ‪ 3‬آالف متر‬ ‫مربع من المساحة‪ .‬وقد بدأت المرحلة األولى‬ ‫بالفعل‪ ،‬وبدأ المقاول العمل بالموقع وسوف يتم‬ ‫افتتاحها مطلع شهر يناير ‪.2015‬‬ ‫وسنقوم بعد ذلك بتنفيذ مرحلة «توسعة‬ ‫البوابة األولى» إلضافة ما بين ‪ 30‬ألف إلى ‪ 35‬ألف‬ ‫متر مربع من المساحة للتسوق‪ .‬وستتضمن‬ ‫هذه المرحلة طابقين‪ ،‬العلوي سيضم مجموعة‬ ‫من المطاعم الراقية ومطاعم خاصة بالوجبات‬ ‫السريعة‪ ،‬أما الطابق السفلي فسيضم مجموعة‬ ‫من محال العالمات التجارية الرسمية والتقليدية‪.‬‬ ‫أما المرحلة الثالثة‪ ،‬فستشهد «توسعة‬ ‫البوابة التاسعة»‪ ،‬وتتضمن إضافة مساحات‬ ‫خارجية بمساحة تتراوح بين ‪ 3‬آالف إلى ‪ 4‬آالف‬

‫متر مربع‪ ،‬وستضم عدداً من المتاجر والمقاهي‬ ‫والمطاعم الراقية‪.‬‬

‫ً‬ ‫عائقا أمام‬ ‫هل ستشكل التوسعة الجديدة‬ ‫المتسوقين في المول؟‬

‫لقد وضعنا ضمن استراتيجيتنا للتوسع خطة‬ ‫لضمان حصول ضيوفنا على تجربة تسوق ممتعة‬ ‫وخالية من المتاعب خالل زيارتهم للمول‪ .‬وقد‬ ‫تطلب ذلك وضع خطة مفصلة إلدارة حركة المرور‬ ‫لتحويل مسارها إلى ٍأي من البوابات التسع عشرة‬ ‫األخرى للمول‪ ،‬عند العمل على توسعة البوابات‬ ‫األخرى‪ .‬ونطمئن زوارنا‪ ،‬بأن جميع البوابات أمامها‬ ‫مواقف سيارات كافية‪ ،‬ويمكن الوصول إلى أي‬ ‫بوابة منها‪.‬‬ ‫مكان في المول بسهولة عبر أي‬ ‫ٍ‬ ‫ٍ‬ ‫أيض ًا‪ ،‬وللتسهيل على الزوار قمنا بتصميم حملة‬ ‫متكاملة ستطلعهم على المداخل البديلة وتضمن‬ ‫الحد األدنى من اإلزعاج‪.‬‬

‫ما الرسالة التي توجهونها لزوار المول‬ ‫بخصوص اإلزعاج الذي قد يصاحب أعمال‬ ‫التوسعة الجديدة؟‬

‫رسالتنا تتلخص في أن العمل على التوسعة الجديدة‬ ‫جاء لتلبية رغباتكم‪ ،‬خصوص ًا بعد أن جمعنا آراءهم‬ ‫بخصوص العالمات التجارية والمطاعم والخيارات‬ ‫الترفيهية التي يتطلعون إليها‪ .‬وكلنا ثقة بأننا‬ ‫سنكون عند حسن ظنهم بنا‪.‬‬ ‫كذلك‪ ،‬نقول لهم إن إدارة المول تعكف على‬ ‫تعزيز مكانة المول ومضاعفة إمكاناته ليكون‬ ‫قادراً على استقبال ‪ 15‬مليون زائر سنوي ًا فور‬ ‫تدشين التوسعة الجديدة‪ ،‬وسيكون بإمكان جميع‬ ‫زوارنا االستمتاع بتجربة التسوق الفريدة التي يوفرها‬ ‫الـ «رد سي مول»‪.‬‬

‫ً‬ ‫أخيرا‪ ،‬هل تفكرون بافتتاح فرع جديد‬ ‫لـ «رد سي مول»؟‬

‫ٌ‬ ‫احتمال قائم‪.‬‬ ‫افتتاح فرع جديد لـ «رد سي مول»‬ ‫لكن‪ ،‬علينا أو ًال التركيز على استكمال مشروع‬ ‫التوسعة الحالي بنجاح‪ .‬وفور اكتمال أعمال اإلنشاء‬ ‫فرع جديد لتلبية الطلب في‬ ‫سندرس إمكانية فتح ٍ‬ ‫في أسواق أخرى‪.‬‬ ‫نحن نملك زمام المبادرة‪ ،‬وعلينا إكمال هذا‬ ‫المشروع وتوظيفه كمثال يحتذى به في صناعة‬ ‫مراكز التسوق والترفيه‪ .‬فنحن ال نريد استنساخ‬ ‫موقع‬ ‫مكان آخر‪ ،‬بل نقل قصة نجاحه إلى‬ ‫المول في‬ ‫ٍ‬ ‫ٍ‬ ‫آخر‪ .‬وبطبيعة الحال‪ ،‬ال يمكنك اتخاذ المكان ذاته‬ ‫والهيكل وتكرار التجربة نفسها‪ ،‬وذلك ألن لكل‬ ‫سوق خصائصه‪ .‬سنأخذ قصة النجاح وننفذها في‬ ‫مكان آخر بعد هذا المشروع‪ .‬ونحن ماضون في‬ ‫دراسة العروض والمقترحات‪ .‬وخالل األشهر القليلة‬ ‫المقبلة‪ ،‬ستصدر موافقة وتوجيهات مجلس إدارة‬ ‫شركة أسواق البحر األحمر‪ ،‬وسنقوم باإلعالن عن‬ ‫توسعات أخرى في المملكة‪rp .‬‬

‫‪rp‬‬

‫ﺣﻮﻝ ﻣﺴﺘﻘﺒﻞ ﻣﺮﺍﻛﺰ‬ ‫ﺍﻟﺘﺴﻮﻕ‬

‫ﻣﺤﻤﺪ ﻋﻼﻭﻱ‪ ،‬ﺍﻟﺮﺋﻴﺲ ﺍﻟﺘﻨﻔﻴﺬﻱ ﻟـ »ﺭﺩ ﺳﻲ ﻣﻮﻝ« ﻓﻲ ﺣﻮﺍﺭ ﺻﺤﺎﻓﻲ‬ ‫ﻳﺘﺤﺪﺙ ﻓﻴﻪ ﻋﻦ ﻣﺸﺮﻭﻉ ﺍﻟﺘﻮﺳﻌﺔ ﺍﻟﺤﺎﻟﻲ‬ ‫ﻣﺤﻤﺪ ﻋﻼوي‬ ‫اﻟﺮﺋﻴﺲ اﻟﺘﻨﻔﻴﺬي ﻟـ »رد ﺳﻲ ﻣﻮل«‬

‫ﻣﺎ ﺍﻟﺴﺒﺐ ﺍﻟﺬﻱ ﻳﺪﻋﻮ ﺍﻟـ »ﺭﺩ ﺳﻲ ﻣﻮﻝ«‬ ‫ﻹﺟﺮﺍﺀ ﺗﻮﺳﻌﺔ ﻟﻤﺒﺎﻧﻴﻪ؟ ﻭﻣﺎ ﺍﻟﻬﺪﻑ ﻣﻦ‬ ‫ﻫﺬه ﺍﻟﺨﻄﻮﺓ؟‬

‫اﻟﺨﻄﺔ اﻟﺘﻮﺳﻌﻴﺔ اﻟﺘﻲ ﻳﻌﺘﺰم اﻟـ »رد ﺳﻲ ﻣﻮل«‬ ‫ﺗﻨﻔﻴﺬﻫﺎ ﺟﺰء ﻣﻦ اﺳﺘﺮاﺗﻴﺠﻴﺘﻨﺎ اﻟﻤﺴﺘﺪاﻣﺔ اﻟﺮاﻣﻴﺔ‬ ‫إﻟﻰ ﺗﺤﺴﻴﻦ اﻟﺨﺪﻣﺎت اﻟﻤﻘﺪﻣﺔ ﻟﺰوارﻧﺎ ﻋﻠﻰ اﻟﺪوام‪،‬‬ ‫ﺣﻴﺚ إﻧﻨﺎ ﻣﻠﺘﺰﻣﻮن ﺑﻤﻨﺤﻬﻢ أﻓﻀﻞ ﺗﺠﺮﺑﺔ ﻟﻠﺘﺴﻮق‪.‬‬ ‫وﻧﺤﻦ ﻣﺎ ﻧﺰال ﻧﺄﺧﺬ ﻋﻠﻰ ﻋﺎﺗﻘﻨﺎ ﻣﻮاﺻﻠﺔ اﺳﺘﻘﻄﺎب‬ ‫اﻟﺰوار إﻟﻰ اﻟﻤﻮل وﺗﺰوﻳﺪ أﺻﺤﺎب اﻟﻤﺤﺎل اﻟﺘﺠﺎرﻳﺔ‬ ‫ﺑﺄﻓﻀﻞ اﻟﺨﺪﻣﺎت وأرﻗﻰ اﻟﺒﻨﻰ اﻟﺘﺤﺘﻴﺔ وأﻛﺜﺮﻫﺎ‬ ‫ﺗﻨﻮﻋ ًﺎ‪ .‬ﻛﺬﻟﻚ‪ ،‬ﻗﻤﻨﺎ ﺑﺈﺟﺮاء دراﺳﺔ ﻣﺴﺘﻔﻴﻀﺔ‬ ‫ﻟﻠﺴﻮق وﺗﺤﻠﻴﻞ اﻟﻤﻨﺎﻓﺴﺔ‪ ،‬وﻗﺪ ﺗﺒﻴﻦ ﻣﻦ ﺧﻼﻟﻬﺎ‬

‫أن ﻫﻨﺎﻟﻚ اﻟﻌﺪﻳﺪ ﻣﻦ اﻟﻔﺮص اﻟﺘﻲ ﻳﻤﻜﻦ اﻏﺘﻨﺎﻣﻬﺎ‬ ‫ﻋﺒﺮ ﺗﻮﺳﻌﺔ اﻟﻤﻮل‪.‬‬ ‫إن اﻟﻬﺪف ﻣﻦ ﺧﻄﺔ اﻟﺘﻮﺳﻊ ﻫﻮ رﻓﻊ اﻟﻤﻌﺎﻳﻴﺮ‬ ‫اﻟﻤﻌﺘﻤﺪة ﻟﺪى اﻟﻤﻮل وزﻳﺎدة ﻋﻤﺮه اﻻﻓﺘﺮاﺿﻲ‪،‬‬ ‫وﺗﺮﺳﻴﺦ ﻣﻜﺎﻧﺘﻪ اﻟﺮاﺋﺪة ﻓﻲ اﻟﺴﻮق‪.‬‬

‫ً‬ ‫ﺇﺫﺍ‪ ،‬ﻣﺘﻰ ﺳﻴﺒﺪﺃ ﺗﻨﻔﻴﺬ ﺍﻟﺘﻮﺳﻌﺔ؟ ﻭﻣﺘﻰ‬ ‫ﺗﺘﻮﻗﻌﻮﻥ ﺍﻻﻧﺘﻬﺎﺀ ﻣﻨﻬﺎ؟‬ ‫إﻧﻨﺎ ﻧﺘﻄﻠﻊ إﻟﻰ ﺑﺪء ا‪¹‬ﻋﻤﺎل ا¸ﻧﺸﺎﺋﻴﺔ ﺑﻨﻬﺎﻳﺔ ﺷﻬﺮ‬ ‫ﻳﻨﺎﻳﺮ ‪ .2015‬وﻓﻲ ﺣﺎل ﺳﺎر ﻛﻞ ﺷﻲء وﻓﻖ ﻣﺎ‬ ‫ﻫﻮ ﻣﺨﻄﻂ ﻟﻪ‪ ،‬ﻓﻨﺤﻦ ﻧﺘﻮﻗﻊ اﻻﻧﺘﻬﺎء ﻣﻦ ﺧﻄﺔ‬ ‫اﻟﺘﻮﺳﻌﺔ ﺧﻼل ‪ 18‬ﺷﻬﺮاً إﻟﻰ ﻋﺎﻣﻴﻦ‪ ،‬وذﻟﻚ ﻋﻠﻰ‬

JTR 2014 CeRTifiCaTe ReCiPieNTS

12 | retailpeople

JTR 2014

retailpeople | 13

JTR 2014

14 | retailpeople

JTR 2014

retailpeople | 15

JTR 2014

16 | retailpeople

JTR 2014

retailpeople | 17

THE CONTINUED GROWTH OF

Super Regional Retail Centres

Dubai

in

Illustration: Mall of the World 18 | retailpeople

A Sound Strategy for the UAE and the Region Dubai is known for a great many things. The ‘can-do’ attitude is perhaps the best and most exciting attribute and is linked to the positive energy surrounding Dubai.

The world-class infrastructure of Dubai is ranked globally in the Mercer International Quality of Living Index. Dubai’s livability is ranked in the top third of all cities worldwide.

The infrastructure index by Mercer places Dubai much higher, in the top 20 per cent of all cities globally and the highest in the MENA region.

The three terminals at Dubai International Airport currently handle over 65 million passengers

annually. From these, approximately 10 million passengers entered Dubai in 2013.

Shopping centres are a key ingredient to the success of Dubai.

With over 400 international brands in Dubai, London is the only city reported to have more. Next year, Dubai is set to take this top position.

Tourism in the city is estimated to contribute 30 per cent to 40 per cent of overall sales. Dubai benefits greatly as one of the choice spots for vacationing and shopping in the MENA region. The city enjoys an advantageous location, within proximity of 30 per cent of the world’s population. As a result of this, more tourists will come to Dubai.

In only six years, the Emirates Airline fleet will have expanded dramatically and the number of hotels in Dubai will have greatly increased.

By 2020 it is estimated that the city will host 20+ million visitors annually. It is very clear that a largescale increase of the retail area is necessary.

The Mall of the World, with its streetscapes and massive airconditioned environment, is a great opportunity for Dubai to showcase the next generation of super regional shopping centres on the world stage. It will be another example of Dubai leading the way for innovation, retail, leisure and edutainment.

Located on Sheikh Zayed Road near the Metro line and close to the new Maktoum International Airport, Mall of the World is indeed necessary for Dubai. With Dubai hosting the World Expo in 2020, Mall of the World will be a welcome addition to the city’s thriving retail environment.

retailpeople | 19

rp

Recon

2013

DAY 1

20 | retailpeople

Photos of the delegates

DAY 2

retailpeople | 21

DAY 3

Best s practice g for doin he s in t busines ast E Middle h rt and No Africa The Middle East and North Africa region (MENA) comprises 22 countries with a combined population of over 381 million people. It runs from West Africa to the Arabian Peninsula. It was in the mid-1990s that this economic powerhouse witnessed the arrival of the modern shopping centre.

The Gulf Cooperation Council countries (GCC) — Oman, United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Kuwait — lead the region in shopping centre development, followed by Egypt, 22 | retailpeople

Phil McArthur Lebanon and Morocco. These ten countries now have some of the most successful shopping centres in the world. The Dubai Mall attracts 75 million customers a year. Mall of the Emirates boasts revenue exceeding USD 1,800 per square foot and is also home to the Middle East’s first indoor ski resort.

International practices in development, management, leasing and marketing are a hallmark of the region’s top developers. Dubai is unquestionably the leader in the MENA retail scene.

With the arrival of the Middle East Council of Shopping Centres (MECSC) in 1994 and its subsequent close affiliation with the ICSC, educational programs have rapidly influenced the direction of the region’s developers.

Thousands of industry professionals have completed shopping centre-focused courses and workshops. The result of this training has lead to a dramatic improvement in development, management and marketing practices throughout the region.

Ramesh Viswan MECSC’s official photographer

Malls in the region serve as centres for socializing. Marketing budgets in many malls far exceed those of the west. It is not uncommon to find mall promotions giving away six BMWs or a kilogram of gold.

Cities such as Dubai, Abu Dhabi and Doha are all experiencing a burgeoning tourism market. Many malls offer customer service and brochures in multiple languages including English, Arabic, Mandarin, Russian and German.

It is important to note that designing and leasing malls in the

region requires familiarization with local culture. Mall developers maintain an offering of traditional Arabic shops such as men’s tailors, women’s abaya shops and Arabic perfumes, alongside stunning international fashion and jewellery retailers.

Given the economic strength and retail maturity in the MENA region, mall development is booming. Malls are improving every year as more international brands expand in the region. This expansion bodes well for the continued development of international best practices. rp retailpeople | 23

SAUDI IS EXPECTING 15,000,000 VISITORS THIS YEAR

Makkah 2014

Makkah 1870’s

24 | retailpeople

SAUDI VISIt

Graciously hosted by Mohammad Alawi from the Red Sea Mall, introductions were made to the Jeddah Chamber of Commerce, King Abdullah Economic City and to the many retailers in Jeddah.

A networking dinner was hosted in the evening by Red Sea Mall

retailpeople | 25

Don’t Believe the Hype...

17%

E-COMMERCE

ON THE SURFACE...

E-commerce growth outpaced in-store growth, nearly 5 to 1.

3.5% IN-STORE

$38 Billion

BUT IF YOU LOOK DEEPER...

Dramatic growth rates are easier to achieve when calculated off a small base. 17% growth for e-commerce only accounts for $38 billion, while in-store growth of 3.5% equals $144 billion.

SOURCE: US RETAIL STATISTICS

$144 Billion

NEXTGEN NETWORKING

OATAR 2014

The MECSC/ICSC NextGen Networking event and gala dinner was held in March 2014. Ehab Kamel, Mohammad Alawi and David Macadam spoke to the crowd. Everyone enjoyed the first ever networking evening event in Qatar.

retailpeople | 27

NEXTGEN NETWORKING

JORDAN 2014

April 28, 2014 saw the inaugural edition of the MECSC/ICSC’s NextGen Networking Event at The Boulevard in Abdali, Amman.

28 | retailpeople

NEXTGEN NETWORKING

DUBAI 2014

30 | retailpeople

On June 11, 2014, the MECSC/ICSC organized a NextGen Networking Event for its members at the Shangri-La hotel in Dubai. It brought retail industry professionals together for an evening of networking and relationship building

retailpeople | 31

UAE CAREER FAIR 2014

The UAE Career Fair, under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, offered great exposure to the MECSC

32 | retailpeople

The 4th Iran Retail Conference featured David Macadam as a key speaker and brought together a distinguished audience of entrepreneurs, investors and real estate developers from around the world in Tehran

IRAN RETAIL

CONFERENCE

34 | retailpeople

ACTION SPORTS

LIFESTYLE

BIKE SPORTS

Pushing all limits.

DDE is home to some of the biggest brands in the Action Sports, Lifestyle and Bicycle Sports industries.

Established in 2001, DDE has grown to become a leader in the market and has recently capped this off, by being ranked 4th in the Top 100 SME companies of Dubai as part of the Dubai SME 100.

Not only are we an established industry leader in distribution, but with our unique concepts such as Rage, Ride Bike Shop and Bikini World, we are also a leader in retail.

Dubai Desert Extreme L.L.C. | P.O.Box 125239 | Dubai, U.A.E. | Tel. +971 4 336 9007 | www.dde-me.com