Retail People Magazine – Issue 8

ISSUE 08 AUG/SEP 2016

THE WOW FACTOR

of a shopping centre

FOOD

CIRCUL ATED I N 45 COUNTRIES

The future in retail

MECSC

Deal making sessions

GATE AVENUE AT DIFC

A first of its kind urban lifestyle destination

Specialty Retail FEATURING:

EVENTS

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NETWORKING

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BUSINESS DEVELOPMENT

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E D U C AT I O N

CONTENTS WELCOME

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DIFC GROWS AS URBAN LIFESTYLE DESTINATION WITH UNVEILING OF “GATE AVENUE AT DIFC”

8 Middle East Council of Shopping Centres 803, BurJuman Business Tower PO Box 43972, Dubai, UAE Tel: +971 4 359 7909 Fax: +971 4 355 8818 www.mecsc.org

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SPECIALTY STORES – THE MUTUALLY BENEFICIAL VALUE THAT THEY DELIVER TO MAJID AL FUTTAIM'S MALL AROUND THE REGION

A GLIMPSE OF 5 DAYS TRAINING AT JTR GLOBAL SCHOOL OF RETAIL REAL ESTATE PROFESSIONALS

24 PUBLIC ACCESS DEFIBRILLATION IN THE MIDDLE EAST 26 NEXT GENERATION NETWORKING RECEPTION EVENT – DUBAI

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DIGITALIZED ENVIRONMENT

28 SPECIALTY RETAIL… AND ITS GROWING IMPORTANCE

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RETAILERS CHALLENGES...

MARKETING & ADVERTISING MADE EASIER

30 DESIRE FOR SOMETHING SPECIAL

CHIEF EXECUTIVE OFFICER DAVID@MECSC.ORG

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SPECIALTY LEASING – THE WOW FACTOR

Lea Venezuela

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FOOD IS THE FUTURE

David Macadam

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MEASURING UP

34 STUNNING RAMADAN DECORATIONS INCREASED FOOTFALL AND SALES!

DIRECTOR LEA@MECSC.ORG

Mariz Matocdo MARKETING OFFICER CUSTOMERCARE@MECSC.ORG

Khaye Comanda ACCOUNTING SUPPORT EXECUTIVE ACCOUNTS@MECSC.ORG

Reymond Lagmay PUBLISHING COORDINATOR/ ACCOUNTING SUPPORT EXECUTIVE PUBLISHING@MECSC.ORG

Christian Baldonanza MEMBERSHIP/DATABASE ACCOUNTING EXECUTIVE MEMBERSHIP@MECSC.ORG

WELCOME A special thank you to the sponsors, advertisers and contributing authors and you, who all make the September Retail People Magazine another great success.

The Retail People Magazine is the voice and face of the MECSC organization. Every quarter we publish the magazine where we strive to make the content relevant to our members and all retail professionals in the MENA region and beyond.

As the final set of eyes viewing the content each quarter, I am truly impressed and amazed with the high caliber of content in each Retail People Magazine. Also, I am truly pleased that we now have a lineup of budding authors who willingly contribute to the retail industry with their particular point of view who are penning articles for our team.

For the September issue, our theme of the Retail People Magazine is Specialty Retail.

Media One Tower Dubai Media City PO Box 2331, Dubai, UAE T: +971 4 427 3000 F: +971 4 428 2261 motivatepublishing.com connect@motivate.ae Chris Capstick PUBLISHER

Ingrid Valles PROJECTS MANAGER

Rouf Majid SENIOR DESIGNER

This quarter’s theme covers many interesting perspectives in the direction of retail for Food & Beverage, the latest Specialty Retail Shops, the new vision for DIFC retail, Ramadan Decorations, Defibrillation access in the UAE, RICS, Digital Marketing and the latest App called Mallzapp which may change the way we approach shopping centre marketing.

Majid Al Futtaim has provided an insightful article on Specialty Stores penned by Kim McInnes, CEO Majid Al

Futtaim Properties, Shopping Centre Division. Dubai International Financial Centre (DIFC) announces in this issue of Retail People the strategy and theming of the upcoming delivery of 660,000 square feet of new retail and specialty retail in an amazing setting, in line with their Vision 2024.

Thank you again to all our sponsors, contributors and to our most capable team at the MECSC who keep these great sources of communication coming to our members.

Enjoy this September edition of the Retail People Magazine and we look forward to bringing you the November issue which is our biggest ever for our RECon Conference.

Please give us your feedback. We appreciate your comments.

Thank you

David Macadam CEO MECSC

Shane Eldstrom, CRX, CSM, CLS, CDP COO, Al Farwaniya Property Developments LLC MECSC Board President

Sunil Kumar GENERAL MANAGER - PRODUCTION PRINTED BY IPP

Disclaimer: The viewpoints, articles and opinions contained in the Retail People Magazine are not necessarily those of the MECSC or ICSC. Retail People | 3

Opinion

Dubai international Financial centre Grows as urban liFestyle Destination with unveilinG oF “Gate avenue at DiFc”

A

n integrated worldclass environment and financial district, Dubai International Financial Centre (DIFC) is amongst the most exciting and thriving areas in Dubai and the Middle East, Africa and South Asia (MEASA) region. We operate within a competitive ecosystem for financial services firms, retail and leisure venues, cafes and restaurants and art galleries.

In turn, we offer residents and visitors access to a flourishing art scene and a mix of premium F&B outlets and high-end retail offerings, with 110 retail stores – making it the destination of choice for unique lifestyle and cultural experiences, changing the shape of regional, integrated metropolitan development in the process.

Building on our success story as a distinctive business, retail and lifestyle destination, we have recently unveiled the much-anticipated development project, Gate Avenue at DIFC, a first-of-its kind urban retail community space in the region. Once complete, our new cosmopolitan project will offer a curated mix of worldclass retail and leisure amenities along with premium dining and lifestyle offerings and urban park options for the Centre’s diverse community of professionals, residents and visitors.

4 | Retail People

We have made a significant step towards accomplishing the Centre’s 2024 growth strategy, which will see it triple in size over ten years. Gate Avenue at DIFC will complement the Centre’s status as one of the most sought-after global lifestyle destinations – not only for our residents and professional community but also for visitors and tourists. With the unveiling of an integrated urban area, we are continually reinforcing our commitment to enhancing and evolving the experience of the district’s global and regional community. By offering such a range

Opinion

of offerings under one roof, we will also increase DIFC’s attractiveness on the international stage as not just a place to work but also a place to collaborate and innovate within the ecosystem whilst providing the amenities a diverse and fast-paced workforce demand.

With its location in the heart of Dubai, the new development will be the Centre’s main pedestrian pathway seamlessly connecting all 3rd party building podiums within the district.

Gate Avenue at DIFC will be offering over 150 new retail experiences, featuring niche international and newto-market brands of various categories including fashion, accessories, jewelry, beauty and lifestyle. An exclusive cultural experience, the integrated development will house the region’s premium retail, luxury and most coveted dining establishments as well as entertainment options. In line with Dubai’s spirit of innovation, Gate Avenue at DIFC will also feature a sleek modern architectural design connected by well-appointed outdoor spaces featuring an urban park in order to accommodate the concentrated clientele of over 20,000 strong workforce.

Our new cosmopolitan project will offer a curated mix of worldclass retail and leisure amenities along with premium dining and lifestyle offerings and urban park options for the Centre’s diverse community of professionals, residents and visitors.

GATE AVENUE AT DIFC PROPOSITION & FEATURE Gate Avenue at DIFC will bring the financial centre’s lifestyle offerings to the next level, with a distinctive aesthetic appeal, connecting a network of hotels, residential and commercial buildings across the 110-acre financial district incorporating all elements of our DIFC Master Plan including its three integrated zones.

The retail mix will be specifically tailored to each zone. The North Zone, the Central Zone and the South Zone. Each zone will feature inimitable elements connected by beautifully landscaped open-air pathway.

The North Zone will extend from DIFC’s popular Marble Walk at Gate Building and serve as a meeting point for professionals within the district, featuring exclusive retail offerings, high end stores and luxury outlets.

Transitioning from the North Zone, the Central Zone will be home to a new community of culinary excellence, combining beautiful indoor restaurants and sumptuous al-fresco eateries. With easy connections to the Financial Centre metro station, the Central Zone will also comprise high-street retail, fashion and beauty brands along with convenience stores.

Primarily tailored to our residents of the financial district, the South Zone will focus on the community within DIFC and feature family amenities that help foster the community-living experience. Visitors can benefit from the zone’s various kids’ ‘edutainment’ (educational entertainment) options along with family-friendly reactional activities and specially designed convivial dining areas.

Bridging the premium and sophisticated vibe of the North Zone to the social setting of the Central Zone, through to the high-tempo, family-friendly environment of the South Zone, the one kilometre open-air urban park Promenade Level serves as an ideal location for leisurely strolls. Adorned by lush greenery and set against the backdrop of niche retail outlets, the Promenade will deliver a luxurious hub for the Centre’s energetic community and house an emblematic mosque designed to host a total of 500 worshippers daily.

Furthermore, due to its central location in Dubai, Gate Avenue at DIFC will offer excellent connectivity to public transport and we will be adding over 1,100 parking bays to the already existing 4,200 bays available to ensure smooth flow of incoming traffic and ample parking spaces.

Retail People | 5

Opinion

AN ENRICHED EXPERIENCE With its dynamic vibe, Dubai is the embodiment of innovation and modernity. Home to over two million residents and attracting millions of visitors every year, the emirate is at the centre of the prosperous Arab world and the gateway to the wider Middle East, Africa and South Asian region – quickly emerging as a vibrant cultural and social hub. Committed to advancing Dubai’s position as a centre for artistic endeavours and exciting lifestyle experiences, we are home to a diverse and multicultural community while convening leading retail brands, culinary concepts and art events.

Towards this objective, the destination will provide a retail environment that complements the commercial activity of our DIFC Master Plan and features brands that add to Dubai’s success story, fostering social and professional exchanges and engaging the greater community. We are currently in talks with both local and international retail companies as well as novel home-grown concepts that are interested in leveraging the various advantages of leasing property at Gate Avenue at DIFC. Creating a uniquely curated mix of experiences, Gate Avenue at DIFC will additionally host a series of art and design installations, live music performances,

visual activations and festivals – ensuring a whole new experience at every visit and adding its part to the cultural scene in Dubai.

KEY FACTS • Unique shopping and lifestyle destination • 660,000 sq. ft. BUA • 150 dining, shopping and cultural experiences • Family entertainment & leisure activities • Outdoor urban park • Children’s edutainment • Family dining, Food markets & International cooking schools • Basement and surface parking facilities • Metro Connection Leasing has commenced on Gate Avenue at DIFC and for further enquiries and information please contact the DIFC Retail Leasing Division on retail@difc.ae.

CustomeR Custome tomeR tomeR & iinnovation nnovation ation the

DeaL maKing sessions wHat is iCsC/meCsC DeaL maKing?

ICSC/MECSC Deal Making is a platform that provides networking and right connection for decision makers in the Shopping Center Industry to make and nail those important deals. It is a gathering under one roof of developers, owners, leasing agents, retailers, franchise operators and product and service providers to do a year’s worth of work in just 2 days of deal making activities. wHo attenDs tHe iCsC/meCsC DeaL maKing?

Shopping Center Owners, Developers, Leasing Agents, Retailers, Franchise Operators, Product and Service Providers. wHen anD wHeRe wiLL Be tHe event?

It will be held in conjunction with RECon MENA, on 31 Oct - 01 Nov, 2016 at the Ritz Carlton-DIFC, Dubai, UAE.

How wiLL You BeneFit FRom tHis event?

We, at the MECSC, will be the bridge to connect you or help you get the right connection to get those deals done!!

As a Developer/Shopping Mall Owner, it is important that you already have a list of potential Retailers and Franchise Operators that you would like to meet at the event. Concurrently, as a Retailer/ Franchise operator, a planned meeting with a Developer/Mall Owner should already be in placed prior to the event.

Let the MECSC team know who you want to connect with and we will introduce you to the proper person.

How to RegisteR? You can register by filling out the registration form via our website, www.mecsc.org or you can email dealmaking@mecsc.org and connect@mecsc.org. Confirmation of registration will be sent upon completion of registration form and payment of applicable fees.

MAJID AL FUTTAIM PROPERTIES, DUBAI INTERNATIONAL FINANCIAL CENTRE, UNIFIED REAL ESTATE, ASWAQ MANAGEMENT AND SERVICES, RED SEA MALL, LINE INVESTMENT AND PROPERTy LLC, BRANDS INTERNATIONAL, MATALAN, ALDAR PROPERTIES, yARDI, MAJZOUB INTERNATIONAL, AL FAISALIAH MALL AND KINGSMEN MIDDLE EAST LLC are already on board. Can you afford to miss out?

RegisteR now!!!

Opinion

SPECIALTY STORES –

THE MUTUALLY BENEFICIAL VALUE THAT THEY DELIVER TO MAJID AL FUTTAIM’S MALLS AROUND THE REGION

A Kim McInnes CEO, Majid Al Futtaim Properties – Shopping Malls 8 | Retail People

s Majid Al Futtaim further increases its investment in the Middle East’s retail sector, including an additional AED 30 billion in the United Arab Emirates by 2026, one of the key drivers of the company’s growth is the continued demand for specialty retail space.

With this region consistently ranking in the top ten retail destinations according to analysts including AT Kearney (www.atkearney.com/consumer-productsretail/global-retail-development-index), brands are keen to collaborate with Majid Al Futtaim’s malls as a launch platform. As part of the opening of Mall of the Emirates new third level in September 2015, brands including lululemon athletica and Seafolly made their UAE debut in the expanded mall space. In addition, both AllSaints and Abercrombie & Fitch first stores in the region houses the brands’ first ever non-apparel specialty sections.

City Centre Bahrain

Opinion

Majid Al Futtaim’s vision to deliver great moments for everyone, everyday, is delivered in part through unique and unparalleled customer experiences, and those can frequently be found in specialty stores. One of Majid Al Futtaim’s other growth pillars is in partnering with brands to launch new specialty stores in the UAE and other key growth markets in the region. The company has contributed significantly to the retail landscape in the region by delivering the region’s first certified LEGO store, while launching fashion brands such as Hollister, as well as Abercrombie & Fitch and AllSaints which both feature brand’s first ever non-apparel specialty stores.

What does specialty retail offer that differentiates it from multi-brand destinations?

AUTHENTIC, BRAND-SPECIFIC ENVIRONMENT – whether it’s a visit to the region’s first and largest dedicated Apple store or the luxurious Fendi flagship in Mall of the Emirates, the aesthetics of specialty stores immediately envelop the shopper within the brand’s authentic look and feel, and personal connection to the consumer. At the launch of the

Majid Al Futtaim further increases its investment in the Middle East’s retail sector, including an additional AED 30 billion in the UAE by 2026.

Burberry flagship earlier this year, designer Christopher Bailey commented that the Dubai interiors were directly inspired by the Regent Street headquarters in London.

SUPERIOR LEVELS OF EXPERTISE AND SERVICE – many specialty retailers have intensive training programmes as well as longstanding retention of key staff, a strategy which enables them to deliver high-quality service while developing deeper relationships with valued customers.

DEPTH AND AVAILABILITY OF PRODUCT – with exclusive supplier relationships and an efficient supply chain, specialty retailers can frequently deliver a wider, more comprehensive range of products.

One of the trends seen in this region is the creation of limited editions especially for the Middle East, whether in luxury watches,

womenswear, or footwear – these are primarily found in specialty outlets.

Specialty stores, especially those which combine the region’s passions of family and fashion, are setting regional and international sales records. Designer Tommy Hilfiger noted on the sidelines of the recent World Retail Congress in Dubai that “Tommy Hilfiger in Mall of the Emirates is our number one store for childrenswear worldwide.” (www.thenational.ae/ arts-life/fashion/tommy-hilfigertalks-fashion-legacy-and-creativity) While there is certainly a place for multibrand boutiques and anchor stores, specialty retailers are contributing significantly to the growth and dynamism of the Middle East’s retail landscape, and are set to continue doing so.

City Centre Mirdif

Retail People | 9

Opinion

DigitalizeD environment

M Bill Fordyce Chief Operating Officer, Hypermedia 10 | Retail People

alls in the UAE are undergoing an evolution in terms of advertising, from static branding such as hanging banners and escalator branding to digital media. Mall-based digital advertising tends to be more affordable and targeted for advertisers, making it an efficient media for tactical and engagement campaigns. HyperMedia estimates that digital advertising in malls is now more than 50% of the total mall advertising market for the first time, and expects it to climb above 66% by the end of year 2017 as Nakheel Retail opens many new malls with large digital networks.

But despite this growth in digital advertising, an ongoing challenge is for agencies and clients to develop creative executions that engage with the shoppers. In addition, clients are often making the mistake of duplicating existing content on mall digital platforms that they use for traditional out-of-home and print campaigns.

Clients often don’t take advantage of the ability to target mall shoppers by demographics and by time of day.

The major challenge we see today is to make sure that consumers are engaging with clever advertising, whilst the mall environment provides a uniquely captive audience for which advertisers need to target with smart creative.

Another opportunity with digital signage which is just starting in the UAE is integration between social media and mall media. The digital signage networks that are now installed in many malls allow shoppers to interact with social media while they are in malls. Evidence is mounting from around the world that activations and campaigns should be mixed between offline and online to achieve maximum success. And with the rollout of advance wifi-systems through du or by the malls themselves, new opportunities are opening up to boost mall media as shoppers can now make that link from digital signs to their mobile phones.

UAE malls are in a unique position in the world to start leveraging “big data� and integration with digital signs. As the mall industry becomes increasingly competitive. With the launch of newer, larger and more advance malls being built by developers like Nakheel, Gulf Related (Al Maryah Central), MAF malls, Aldar (Yas Mall) and Meraas malls can build advance wifi systems, beacons and digital signage that make that jump from Out-Of-Home (OOH) to mobile.

Unlike other OOH advertising mediums, mall media can be more targeted and quite scientific in its approach to crafting and monitoring campaigns.

Although, advertisers, clients, malls and OOH companies must continue to drive innovation to take advantage of this.

OUR COMMITMENT IS TO BE RETAIL DESTINATION, EMPLOYER AND PARTNER OF CHOICE IN THE MIDDLE EAST OUR PEOPLE

OUR STRENGTHS

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- Our most valuable asset is our loyal and dedicated team of over 1800 employees

- Our passion for retail is evident in everything we do

- Proud partners with the world’s premier brands

- We are continually building a creative and inclusive community with a culture aspiring towards excellence and innovation

- We are a regional fashion retail leader, enriching customers’ lives with reliable services delivered honestly and without compromise

- World-class portfolio of over 60 high-end fashion, footwear and accessories brands

- Creative ideas, ambition and dynamic drive are at our core

Alyasra

- Our outstanding retail environment offers unique brands and a premium customer journey

AlyasraFashion

AlyasraFashion

- Our network encompasses over 250 stores, with operations in eight markets

www.alyasra.com

Opinion

RETAILERS CHALLENGES‌ MARKETING & ADVERTISING MADE EASIER ADVERTISING IS A CRITICAL MARKETING PROCESS FOR RETAILERS! Effective advertising helps establish your brand image, drive customer traffic and maintain top-of-mind awareness in the marketplace.

The retail communication industry highlights a number of tools used for advertising, and each of these methods has distinct advantages and disadvantages. An obvious drawback of conventional advertising is the outrageous fees, costing up to hundreds of thousands.

As you know, personal communications through word of mouth contributes significantly to market perception.

Communication is one method of reaching consumers, however, using direct marketing, salespeople and other forms of interactive communication, you receive immediate, ongoing and responsive feedback. This can be achieved using MallzApp for business.

MANY MALLS AND FEWER OPTIONS There are numerous shopping malls and expansive leasing spaces, though it is not possible to have your brand available in every mall; it is all about competition and availability, this creates a significant problem to properly highlight and introduce your brand in each mall.

Ashraf B. Abuljebain Founder and CEO Integral Applications, MallzApp 12 | Retail People

MallzApp – THE SOLUTION! Here comes MallzApp! A solution for every problem you may experience and an answer for every question your prospects may ask.

The first and only solution combines more than 20 different tools and services that can be utilized for advertising and marketing, a mall directory with a powerful search engine for malls and brands.

WHY MallzApp? Every mall and brand would like the luxury of having their own mobile application or website, however, this would include additional running expenses for updates, upgrades and maintenance as well as follow-ups. A more convenient alternative is MallzApp! This application delivers many important benefits

MallzApp is covering more than 150 Malls in Saudi Arabia and will be covering GCC countries in the coming few weeks.

Opinion

compared to any other marketing & communications method involving the development of separate applications.

One major benefit of MallzApp, is that you control your advertisements, timing, delivery method and contents; it also gives the opportunity to directly interact with your clients and increase the amount of new loyal prospects on daily basis.

MANY APPLICATIONS MAY CONTAIN SOME SERVICES IN MallzApp! Users may find many applications for promotions and deals that may or may not include your brand. This is what makes MallzApp unique. It is specialized solely to shopping malls.

Moreover; MallzApp users are indeed real buyers since they already have the application installed in their devices. This means that users with this application are real prospects and potential buyers, so the retailer would be targeting the right consumers — not random people.

ONE SUBSCRIPTION WITH MANY TOOLS Every subscriber will have one access to MallzApp backend that enables him to daily update Deal, Promotions, Items they are selling with images and many details for each item, Contact details, Statistics, Store locations, they also can have a direct connection with their clients and new prospects.

Furthermore, each mall will have its own page including its details, working hours, floor map, services, utilities and much more information.

The application is covering more than 150 Malls in Saudi Arabia and will be covering GCC countries in the coming few weeks. We will be expanding to cover many more countries soon.

C h a n n e l

Opinion

SPECIALTY LEASING – THE WOW FACTOR

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raditionally, the goal of Specialty Leasing is to generate additional revenue from the short-term leasing of common area units, in-line spaces, storage and various other forms of revenue generating space i.e. ATMs, service centres, promotional spaces, as well as digital space such as digital signboards.

As with all aspects of retail, Specialty Leasing is evolving. An integrated approach goes beyond the physical space to create individual and collective participatory experiences linking events, sponsorships, social media buzz, placemaking, engaging the community and supporting local charities. Increasingly the lines are blurring between traditional retailing, specialty leasing and mall marketing. Some global trends and case studies of this evolution are: PROTAIL SHOWROOMING Kiosks become a demo-platform to trial goods in person and then buy them online or vice-versa (order on-line and pick-up in the mall). The traditional rental model of linking rents to store turnover becomes less relevant, since the actual point of sale may be virtual. A retailer with an online store and a showroom in the mall is driving additional shoppers from the Internet into the mall. "Protail" (promo + retail) necessitates a new approach to rent-setting, taking footfall into account.

Priya Chellani ACMA, CGMA Associate Property & Asset Management JLL MENA 14 | Retail People

FROM GLOBAL TO LOCAL Aspirational shoppers are looking for more individuality in a relatively homogeneous tenant mix favoured by ‘playing it safe’ mall owners. trendwatching. com highlighted the importance of infusing a standard tenant mix with retailers who offer more unique and localised product line: "Consumers like

Opinion

to buy things that are made in their own countries, and that's going to be a large part of appeal for brands that make this choice" Designer Alexander Konasov created t-shirts with a Russian ethos and sensibility, launching a T-shirt pop-up store in the Fifth Avenue Mall, Moscow.

Months after the successful trial, the brand had rapidly expanded with 27 more kiosks.

Kiosks, with the benefit of low- risk and relatively low-investment for entrepreneurs, provide opportunities for the commercialisation of fresh ideas, taking their first retail steps, creating a win-win situation for landlord and tenant. They are a unique tool that gives mall owners a first-hand sense of upcoming trends in the retail business.

IntegratIng events, sponsorshIps, communIty partIcIpatIon and socIal responsIbIlIty Events, sponsorships and community events done right can carve out a distinctive identity for a new mall, re-invigorate an existing mall, while also supporting retailers to achieve commercial success.

Incredible Edible Gingerbread House To raise awareness of a central London shopping centre in a highly competitive retail market, where media is expensive, people are time poor and press coverage is difficult to achieve, an extra-ordinary event was needed. JLL’s BeWonder conceived the world’s first life-size edible gingerbread house complete with meringue clouds, cupcake gardens and popcorn puffing chimneys. The event in aid of Great Ormond Street Hospital, took families on a

magical story telling journey to the house, where they were able to make and take home their own gingerbread.

Big Art Biscuit Festival The Dolphin Shopping Centre in the U.K. hosted a two-day Biscuit Festival that saw families and more than 500 children take part in a range of activities with a gigantic ‘Art Attack’ style mural constructed from a variety of biscuits, creating a tasty masterpiece.

Hosted in association with Dorset Tea, participants of all ages took part in a biscuit dunking challenge, cookie-themed crazy golf and decorated their very own big cookie to take home, with Dorset Tea mugs and free tea handed out. The centre’s charity of the year, Margaret Green, also had a fund-raising stand at the event.

Well-conceived and executed events gather valuable press and extensive social media coverage, attract revenue generating sponsorship, drive footfall and sales while raising funds for deserving charities. Whether a shopping mall is looking to increase footfall and revenue or to get the best out of the available footfall and shoppers' spending power, today’s increasingly competitive retail environment demands fresh specialty leasing ideas to attract and retain loyal shoppers who repay the mall’s efforts by their increased dwell time and frequent visits to see what’s new.

Retail People | 15

30 oCt - 1 nov

Keynote SpeAKer

2016 ConferenCe, exhibition & iCSC MenA AwArdS

ritz Carlton hotel difC, dubai, UAe DR. tommy weiR

oRganiseD by the LaRgest RetaiL inDustRy assoCiations

We will learn how to succeed in the Retail Business in MENA through lessons Dr Tommy has garnered in his successful career spanning many years in the region.

CustomeR Custome tomeR & innovation nnovation ation T ThE

expert SpeAKerS inClUding:

parag Khanna Managing Partner hybrid reality

Michael hirschfeld

Executive Vice President, National Retail Tenant Services Jll

derek barker Managing Director haskoll

ludmila yamalova

tom Mcgee

Founder and Managing Partner hpl yamalova & plewka legal Consultants

President & CEO iCSC

richard dean

elizabeth holland

for further information: visit www.reconmena.com to register contact register@mecsc.org or call +971 (0)4 359 7909

Radio Anchor dubai eye

Chairman iCSC

AwArds cAtegories

KEY BEnEFITS oF attenDing

tr aditional Marketing u Advertising u Cause Related Marketing u New! Customer Service experience and/or engagement u Grand Opening, Expansion & Renovation u Public Relations u Sales Promotion and Events

• network with key players in the retail sector from the GCC and Internationally at the only event of its kind in the region

New Media u Social Media u Emerging Technology u Integrated Digital Campaigns design and development u Renovations/Expansions u New Developments u Retail Store Design u Sustainable Design

• Learn about the latest retailers and what is new in the market, what is trending

Noi enhancement u Leasing u Marketing/Sponsorship u Operations/Overall Team retail excellence u Fashion u Children’s Wear u Gold, Jewellery, and Watches u Footwear and Accessories u Sportswear and Goods u Pharmacy, Health and Beauty u Home and Office Furnishing u Kiosks u Entertainment, Music and Leisure u Bank and Financial Services u Fast Food u Restaurants u Luxury

• Discover the latest technologies and solutions for the retail industry • understand the importance of customer service in driving your retail business from great to legendary. how to do it.

New! Best MeNA retail Br and retail Professional of the Year

eLigiBLe dAtes

• gain Knowledge on important upcoming mall projects in the Middle East

Marketing, New Media and Noi categories: 1 August 2015 to 31 August 2016 design/development: 1 August 2014 to 31 July 2016 retailer excellence: 1 August 2015 to 31 July 2016

2015 attenDee PRoFiLe

795+

DELEGATES

25

42%

rETAILErS

15%

36%

COunTrIES

SErvICE PrOvIDErS

ShOPPInG CEnTrE MAnAGEMEnT

7%

OThEr

PLatinum sPonsoRs

HORIZONTAL

goLD sPonsoRs

Building retail excellence

Building retail excellence

Building retail excellence

siLveR sPonsoRs

bRonze sPonsoRs

ORIGINAL LOGO

exCLusive gaLa DinneR sPonsoR

WWW.AZDEF.COM

oFFiCiaL aiRLine PaRtneR

oFFiCiaL exhibition ContRaCtoR

oFFiCiaL teChnoLogy

meDia PaRtneRs

suPPoRt PaRtneR

SO LUT I O NS

Opinion

FOOD IS THE FUTURE: SHOPPING MALL DEVELOPERS ARE COURTING FOOD AS THE FUTURE FOR ASSET GROWTH AND ESTABLISHING AN USP

Emporium Melbourne

S Francis Loughran Managing Director, Future Food 18 | Retail People

hopping malls are growing in both size and number around the globe as developers thrive for bigger, more dynamic centres that service the evolving customer’s wants and needs. This article will look into how food and beverage precincts play an integral role in centre development and securing centre sustainability, standing as an anchor to the growth of GLA and MAT as carefully curated offerings lift the centre to “destination” status. The need for strategic master planning is now more critical than ever to ensure there is enough diversity and quality dining products that attract both shoppers and non-shoppers to spend their money within shopping centres. When it comes to shopping mall development, ‘food is the future’ for growth in GLA and overall centre success.

Today’s shopping malls, retail centres and european style food markets are increasingly acting as tourist and community social hubs and are engines of urban renewal in many countries across the globe. The shopping mall of the future will continue to play an important role in delivering a “place to go to”, a community hub, where locals and visitors can gather to shop, eat, be entertained, learn, social and feel connected. This translates to the shopping mall of the future being judged by its potential customers on its ability to deliver a customercentric mix of food and hospitality product and services; which when curated uniquely; offer that point of difference for the mall or retail centre.

THE CUSTOMER IS KEY In developing a hospitality-strategy, first principles must be applied and that is “who is our customer and what they want”. This customer-centric approach allows for a clustering of products, experiences and spend results in a range of

FOOD IS THE FUTURE

F&B CATEGORY:

PRICE POINT:

FINE DINING

HIGH

FULL / FAMILY DINING DELUXE / ALL DAY CAFÉ SMART CASUAL

Shopping centres globally are enjoying MAT growth in retail food & hospitality.

CAFÉ FAST CASUAL QSR / GRAB AND GO IMPULSE / KIOSKS

LOW

© 2016 Future Food’s Positioning Pyramid

Food is the future when it comes to MAT growth in retail food and hospitality in our shopping centres. One size does not fit all when planning tomorrow’s retail food.

WHO’S PLANNING YOUR CENTRE’S RETAIL FOOD AND HOSPITALITY?

Talk to the team at Future Food to find out how we can align our specialised skills with your vision to develop world’s best practice food destinations aimed at maximising asset value and customer experiences.

Contact Francis Loughran to arrange a meeting.

Phone: +61 418 586 149 | 050 879 2331 Email: floughran@futurefood.com.au LinkedIn: linkedin.com/in/francisloughran www.futurefood.com.au

Opinion

new hospitality products including chef-driven products, fine dining outlets, roof top terraces and food truck parks. Canary Wharf in London is a good example of this with its offering being centred around the 112,000 people who work in the area but also provides hospitality to visitors who claim the space as a regional destination from late-night jazz bars, popular chef concepts like Tom’s Kitchen and ‘grab and go’ outlets all in the mix. It is about capturing all customer types and meeting each of their needs to ensure they utilise the options and frequent the area consistently.

If retail centres, shopping malls and mixed-use developments are to maximize their financial, social and environmental potential they must reflect the progressive change in consumer behaviours, needs, wants and spending patterns.

in developing a hospitality-strategy, first principles must be applied and that is “who is our customer and what they want.” food and beverage precincts that are customer-centric and refined to stimulate sales, increase rental value and improve asset growth.

Global projects such as DIFC Dubai, previously mentioned Hudson Yards New York, Westfield’s Century City Los Angeles and the World Trade Centre New York are all redeveloping as a strategic move to increase footfall and increase customer satisfaction.

Eating will BEcomE thE nEw Shopping

plan for thE futurE

Food is now a recognised key ingredient in encouraging dwell time in shopping malls. Figures show that customers who eat during shopping mall trips spend on average 27 minutes longer across the shopping mall and 18 percent more in overall transactions.

For this reason, developers are making space for bigger and better

As developers around the globe have recognised: food is now the tool used to generate growth in MAT, asset value and create a point-of-difference for their shopping mall. A true Unique Selling Point (USP) is made up of many disciplines, all interrelated so that end product is greater than it’s parts. The end product

The Galleria Abu Dhabi

20 | Retail People

the customer and their positive experience that can be repeated time and time again. To ensure that food is the success point of a shopping mall however, developers and centre management must be able to adapt and improve the food and beverage offers as the landscape of food and beverage continues to expand and update.

Shopping cEntrES offEr cuStomErS morE than rEtail (icSc EuropEan confErEncE) To facilitate the mall’s social aspects, food-and-beverage is playing an increasingly large role in today’s centers, speakers noted.

“I believe that soon 50 percent of people going to a shopping center will be going there only to eat,” predicted Gianmario Tondato Da Ruos, group CEO of restaurant concept Autogrill.

“Restaurants have become critical to the success of every center,” said David Zoba, chairman of JLL’s Global Retail Leasing Board and a former senior vice president of global real estate and store development at Gap Inc. “I’m not sure it can be more than 15 percent of the tenant mix], but that’s a lot.”

The big question remains – Who is Masterplanning your center’s 2020 vision for Food & Beverage?

JOHN T. RIORDAN GLOBAL SCHOOL OF RETAIL REAL ESTATE PROFESSIONAL 2016 Dubai 17th – 21st April 2016, Shangri-La Hotel, Dubai

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avid Macadam, CEO of Middle East Council of Shopping Centres, welcome the students of John T. Riordan Global School of Retail Real Estate Professional 2016 at the Shangri-La Hotel Dubai commencing from April 17–21, 2016. This is the 22nd year MECSC hosted this program in the Middle East. From 2013–2016, there is a remarkable growth of students attending the 5-day course. MECSC started a handful of students 20 years ago, but this year around 125 students came from all around the Middle East and North Africa to take this course, learn, network and meet new people from shopping center and retail industry.

Next year, MECSC will be hosting the same event on April 16-20, 2017. Mark your calendar and grab the opportunity to gain the finest learning experience and

an unmatched exchange of industry experts and executives from around the region. To view the 2016 JTR photos, please visit http://bit.ly/29pzieJ.

JTR 2016 Students Level 1

JTR 2016 Students Level 2

Retail People | 21

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Opinion

PUBLIC ACCESS DEFIBRILLATION IN THE MIDDLE EAST

S Dr Paul Dardel MD, MBA Founder and CEO, AEDMAP International 24 | Retail People

udden cardiac arrest (SCA) is a leading cause of premature death, but with immediate treatment many lives can be saved. SCA occurs because the electrical rhythm that controls the heart is replaced by an abnormal electrical rhythm called Ventricular Fibrillation.

With each passing minute, the probability of survival declines by up to 10% and the ambulance service is unlikely to arrive quickly enough to resuscitate most victims. However, solutions exist: Automated External Defibrillators (AED) are easy to use medical devices which restore the normal electrical rhythm.

In 70% of these cases of cardiac arrest, many witnesses are present and could act. In Seattle, where the installation of AEDs is widespread, the survival rate is estimated between 30 and 40% while it is below 10% in the Middle East.

Many SCA victims can be saved if persons nearby recognise what has happened, call the ambulance service with the minimum of delay, perform basic cardiopulmonary resuscitation (CPR) and use a defibrillator to provide an electric shock to restore the heart’s normal rhythm. Each of these stages is a link in a chain of events that provide the best chance of success, but the critical factor is the speed the shock is given.

Opinion

“Thousands of lives could be saved through public access to automated external defibrillators”.

Monitored AED Kiosk (front & rear views)

Thus it is key to map the AEDs and to share their locations with the General Public through a free smart App like Staying Alive (www.stayingalive.org), which maps AEDs worldwide and is available in 17 languages including Arabic.

AEDs are easy to use: They are designed to be used by bystanders; the machines guide the operator through the process by verbal instructions. They are safe and will not allow a shock to be given unless the heart’s rhythm requires it. They are designed to be stored for long periods without use and require regular maintenance.

Defibrillators should be tracked and monitored to ensure their proper functioning. AEDMAP (www.aedmap. org), the company behind Staying Alive, has linked mapping services and monitoring solutions which helps to provide reliable maps to both the general public and the emergency dispatch centres.

AED Monitored Cabinet

Examples of Public Access Defibrillators

AEDs have been installed in many public places (metro stations), workplaces, or other areas where the public have access (hotels, schools, fitness centres). The intention is to use the machines to restart the heart as soon as possible. This strategy of placing AEDs in locations where they are used by bystanders, is known as public access defibrillation (PAD).

AEDs have been used successfully by untrained persons, and lack of training should not be a deterrent to their use.

But there is still a long way to go.

In many public places like malls or high rise buildings defibrillators are too few in number, difficult to find and sometimes poorly maintained.

AEDs should be placed or stored where they are most likely to be needed; they must be accessible with the minimum of delay. All persons working at the site need to be aware of their purpose and location, and the steps to be taken in case of emergency. This will include calling the ambulance service and activating the organisation’s emergency response plan to get the AED and those best trained to use it.

Sudden Cardiac Arrest is not a fate to which we must simply resign ourselves. It’s key to include all the stakeholders involved: ambulances, police, hotels, shopping centres and land developers, to support Public Access Defibrillation, change the numbers and make Dubai the safest and happiest city.

Retail People | 25

Networking

NEXT GENERATION NETWORKING RECEPTION EVENT NextGen – Dubai 19th April 2016, Shangri-La Hotel, Dubai

T

he NextGen Networking Event brings retail industry professionals together in an environment to facilitate business development, knowledge-sharing and networking. Middle East Council of Shopping Centres’ (MECSC) primary goal was to bring together regional leaders and professionals under one roof to network with key players in the retail sector and enable to meet and build relationships.

26 | Retail People

MECSC hosted the NextGen Dubai Networking Event at the Shangri-La Hotel Dubai on 19th of April 2016. It was a big success! A “Big Thank You” to all our sponsors for their continued support to make this thing happen and also to all our guests who participated on this event.

If you wish to view photos from the event please visit: http://bit.ly/295NFEZ. The next NEXTGEN Event will take place in Muscat, Oman on 28th September 2016 and in Jeddah, Saudi Arabia on 10th October 2016.

We hope to see you there!

Opinion

Specialty Retail‌

and itS gRowing impoRtance

W Leanne Hamilton CMD Head – Marketing & Events Meraas Retail 28 | Retail People

ith the ever increasing competition amongst retail destinations in the Middle East how do we differentiate ourselves? How do we stay on top of emerging trends and customer demands without impacting our bottom line?

Specialty Retail provides us with this opportunity to add value within the retail mix and retail offering, in order to create a new dimension that attracts new customers on an ongoing basis.

Specialty Retail has also evolved from just filling spaces with kiosks and pop up stores and has become the ideal incubator for new brands that are trying to break into a highly competitive market or for home grown concepts looking to take the next step.

This approach allows us to differentiate from standard retail offerings by adding new concepts and businesses that are in their infancy, observing their development until they are established enough to be considered becoming a permanent tenant of the asset if successful; or not, if the concept does not achieve the results the operator or landlord had hoped for.

This is the benefit of specialty retail and how it should be considered.

Additionally, creative thinking about specialty retail allows retail assets to be adventurous with operators; new and exciting concepts can become a draw card for the asset and a marketable attribute, driving even more traction and footfall from an income- generating activity.

Another practical application of the incubation approach

by Meraas is Last Exit, a first-of-its-kind gourmet food truck park that opened in late July 2016.

Opinion

Meraas has recently translated this belief at THE BEACH, whereby the main piazza was turned into a carnival by an appointed operator. This concept was a marketable event that was able to add to the offering of the destination and increase dwell time in an area of the asset that normally only hosted passing footfall. The attractions became a point of difference during the four months of operations and ultimately a reason to visit.

Another practical application of the incubation approach by Meraas is Last Exit, a first-of-its-kind gourmet food truck park that opened in late July 2016.

We created an asset that allows food concepts to be repurposed to offer signature street food from their menus in a truck park concept. These concepts are not faced with heavy overheads of fitting out a permanent unit and they are offered the opportunity to assess their concept within the market (if they are not in the region) on a smaller scale and limited investments.

Last Exit is acting as an incubator for food concepts that may prove to be

successful which in turn can be converted into a permanent tenancy at one of our current or upcoming destinations backed up with confidence from both the landlord and tenant that the concepts have the ability to attract footfall and drive sales.

Last Exit is Meraas’s fourth concept in the region. The Dubai-based holding company with operations and assets across the UAE has also brought to the region innovative lifestyle destinations – CITY WALK, THE BEACH and BOXPARK. Meraas is cementing its commitment to creating unique experiences in Dubai and bringing new dimensions and possibilities at all its destinations.

Retail People | 29

Opinion

Desire for something special

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he term 'Specialty Retail' can denote different meanings to different individuals – temporary kiosk at a neighbourhood mall selling antique jewellery, store selling men's leather accessories or one exclusively specializing in infants' clothes, or a website selling coconut cookies that are nowhere else to be found – all can constitute Specialty Retail, and there isn't a standard definition of the same.

As a retail consultant, I believe a retail business, irrespective of the channel it assumes, needs to have an element of 'specialty', for it to be categorized as Specialty Retail. Such specialty typically takes the form of a niche offering that is, by definition, not ubiquitous, and serves as an alternative to the commonly available products in that category.

Jones the Grocer, Magnolia Bakery and Wolfi’s are examples of Specialty Retail in the country. These brands have either extended existing retail products, or have modified the mode of delivery, making them distinct. However, such concepts are in their nascent stage in the UAE, which has a plethora of shopping malls that are invariably leased to conventional brands – the same set of stores are available in all prominent malls.

'More of the same' is the trend industry incumbents seem to be living by. While it is a plausible arrangement between

Rahul Rathi Manager Retail, Leisure & Hospitality GRMC 30 | Retail People

developers, franchise holders and leasing agents currently, the amount of upcoming retail stock (equal to seven times that of Dubai Mall's leasable area) warrants a differentiated approach.

Specialty Retail could be the dark horse in such a scenario. While the nature of the category and the underlying pent-up demand renders it challenging to size the market precisely, the current estimated market size for Specialty Retail is AED 1.2 billion. Going forward, Specialty Retail is poised to grow at a CAGR of 20 – 25% p.a. and double over the next four years, compared to overall retail growth in the range of around 9% p.a. Demand is evident and reflects in multiple surveys conducted by grmc. Over 75% of the respondents in a consumer retail preference study (comprising 1,065 participants with monthly household incomes above AED10,000) cited propensity to visit a mall more frequently if there were innovative, unique brands available in the mall. Propensity to spend close to 24% more on 'experiential retail' i.e., an option to experience the product / service real time, was recorded in another similar study.

Specialty retailers, by their very nature, will never be amalgamated into the mainstream – they will never be omni-present, and will remain an add-on to regular, conventional brands. To some extent, the onus of bringing and nurturing such brands lies with developers and franchisors who often enjoy disproportionate influence because of concentration of assets among a few business houses.

As a consumption driven economy, the UAE is poised to witness a steady growth phase across its retail categories. And Specialty Retail is one area which offers potential for 'turbo growth', where sales can double over a period of three years, registering growth rates of 25% p.a.

Opinion

Measuring up

A

s the Middle East has developed it has attracted major international retailers looking to ‘set up shop’ in the large number of malls and shopping centres.

These malls are not only supplied by a growing number of local and international developers, but also built and managed by a diverse and international supply chain.

In the absence of clear local standards, and with designs and surveys being carried out by the largely expatriate population using their ‘preferred’ measurement standards, it has led to inconsistency and lack of clarity in the market with regards to floor space or retail letting agreements pertaining to floor space. With so many different methods of measurement in use, it makes it difficult for property users, investors, occupiers and developers to accurately compare space.

Robert Jackson Regional Director, RICS Middle East & North Africa

The ReSulT? Up to 24% variance in size depending on the standard used, and inefficiency, confusion and disputes across the region relating to space measurements.

The International Property Measurement Standards Coalition (IPMSC) is an international group of professional and not-for-profit organisations, including the Royal Institution of Chartered Surveyors, working together to develop and embed a single property measurement standard. In an interconnected global marketplace, inconsistency leads to confusion and risk for all property owners, occupiers and investors, especially operating across borders. Fundamentally it makes analysing property portfolios incredibly difficult. In a bid to attract foreign investment, confidence needs to be high in the market and that can only happen when transparency and

DIFC has also recently announced that IPMS will be incorporated into their tenancy agreements for all their occupiers.

Retail People | 31

Opinion

clear standards and regulations are adopted. “International Standards are absolutely critical to the development of the market in the Middle East. This has become a complete game changer and a catalyst for developing internationally competitive real estate markets in this region.� Robert Jackson, Regional Director MENA. The coalition is promoting the use of International Property Measurement Standards (IPMS) across all building types. IPMS for Offices is now compulsory for all RICS members, the Residential standard is due to launch this summer and the consultations for Retail and Industrial specific standards launch in Q4.

The region is leading the way in terms of IPMS adoption with the Middle East Council for Shopping Centres (MECSC) recently pledging their support to the standard, by becoming a coalition member.

32 | Retail People

Their input and insight into the evolving retail standard will be highly beneficial.

The Dubai International Financial Centre (DIFC) has also recently announced that IPMS will be incorporated into their tenancy agree-ments for all their occupiers, many of which are high profile global corporates, including international professional services firms and financial institutions. With its use on the iconic Burj 2020, the tallest commercial tower in the world, and a number of projects linked to the World Expo in Dubai in 2020, the IPMS standards are gaining momentum across all sectors.

The consultation for the Retail specific standard launches in the second half of the year and we would urge you to contribute. Can you afford not to be involved?

For more information visit: www.rics.org/ipms

Advertorial

STUNNING RAMADAN DECORATIONS INCREASED FOOTFALL AND SALES!

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ustomers of the Mall of the Emirates in Dubai, Al Nakheel Mall and Kingdom Center in Riyadh, Mall of Arabia in Jeddah and City Center Bahrain have just been thrilled by the amazing Ramadan decoration in these malls. They all were created by world class designer Dr. Kersten Rosenau, who both owns Europe’s leading company “First Christmas” and since July 1st, “Retail Emotions” based in Dubai. Retail Emotions

Dr. Kersten Rosenau CEO Retail Emotions 34 | Retail People

Al Nakheel Mall, Riyadh

Mall of the Emirates, Dubai

has been established to serve the GCC market more directly, not only for Ramadan, but as well for National Day, Festive and many other occasions.

Dr. Rosenau said: "We are proud to say that we do not sell standard goods: we approach every project individually, and we always make sure each client’s branding is used as the foundation of our work.

The intimate understanding of a client’s marketing objectives is a basic requirement for made-to-measure design, thus enabling the achievement of these goals.

Decorations by retail emotions take into account the visual appearance of each property, the architecture, the interior design, materials, colours and shapes – thus totally adapted to the property and it’s branding. This creates design icons that increase sales significantly.

We see ourselves as full-service providers. From the design to the delivery of the decorations; from their installation to their dismantlement as well as, if need be, taking care of storage and maintenance, retail emotions is your partner.

To lift our client's spirits... to raise "Ahs!" and "Oohs!" as well as "Wows!"...to amaze people... to enchant them... to distract them from their daily worries - that´s what we stand for. And that opens people's purses and wallets. Customers stay longer. Buy more. Return often and tell others. This leads to higher footfall, longer stays, more turnover and consequently a faster return on investment." www.retailemotions.ae, kr@retailemotions.ae

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