RLI - Retail & Leisure International

Page 1

CHELSEA LEISURE & SPA, CHELSEA FOOTBALL CLUB

CONTENTS JULY/AUGUST 2010 26

THE INNER CUSTOMER RETAIL INSIGHT - PROLOGIC

32

LEISURE INSIGHT - DLA PIPER

28

THE RLI MIX

27

DESIGN WEB GALLERY

42

EVENT REVIEW

29

FIT-OUT WEB GALLERY

33

GLOBAL SERVICES WEB GALLERY

ICSC RECon, Las Vegas

18

Andrew Climance, Editor

TALKING SHOP John Lewis has emerged strongly from the economic downturn and LV ÀUPO\ IRFXVHG RQ H[SDQGLQJ LWV UK presence.

18

WHERE DREAMS COME ALIVE Dubai-based Apparel Group has enjoyed tremendous success with a growing portfolio of brands throughout 14 countries.

20

UNIQUE AROUND THE WORLD Offering a truly unique hospitality experience, Relais & Chateaux takes great pride in its high standards.

24

GLAMOUR AND EXCITEMENT Make Up Store is taking full advantage of the opportunities presented by global recession to accelerate its strategy for growth.

34

RETAIL IN STADIA Play ball? The potential (and pitfalls) of stadium- and arena-based mixeduse design and development.

44

VOYAGER - AFRICA On the golden retail ride. Whilst Africa has certainly suffered the effects of recession, it remains a tempting proposition.

EVENTS PAGE

As the RLI team recovers from another hugely successful Global RLI Awards, we do so with an immense feeling of satisfaction, but now it’s back to the job at hand and we have, as ever, some great articles for you this month. Our Voyager focuses on Africa and we have an in-depth analysis of this exciting DQG GLYHUVH PDUNHW IURP $GDP %UDYR &KLHI ([HFXWLYH 2IÀFHU RI 5HWDLO/DE RQ page 44. We also take a close look at stadium- and arena-based mixed-use design and development on Page 34, as well as a number of illuminating interviews with retail and leisure operators from across the globe. So please, sit back and enjoy the read.

FEATURES 16

50

EDITOR’S FOREWORD

22 INTERNATIONAL FACE OF FIT-OUT Despite tough market conditions, the ISG group has continued to diversify, maintaining its growth internationally. UK NEWS INTERNATIONAL NEWS AMERICAS NEWS MIDDLE EAST NEWS ASIA NEWS

RLI PROPERTY Latest news from the BCSC and ICSC

30

COVER STORY

6 8 10 12 14

39

34

22 20

44

24 PUBLISHER’S COMMENT RLI’s spring diary of international travel has ended with my return from RECon /DV 9HJDV 0D\ DQG , DP QRZ ORRNLQJ IRUZDUG WR FDWFKLQJ XS LQ WKH RIĂ€FH over the next couple of weeks and, more importantly, to two weeks in the sun with my family! 2I FRXUVH -XQH VDZ XV KRVWLQJ WKH Ă€IWK HGLWLRQ RI WKH *OREDO 5/, $ZDUGV at the Natural History Museum in London and I have been delighted with the overwhelmingly positive response - people really do seem to love the venue! I am sure that everyone will enjoy reading this year’s Winners Brochure, and those of you who couldn’t make it on the night can see what you were missing! I would like to once again thank everyone involved in this year’s Awards evening Sponsors, Judges and the RLI team - for making it such a runaway success. I am delighted to announce that the Global RLI Awards will once again return to the Natural History Museum on 9 June 2011. Happy Holidays... until the September issue. Jayne Rafter, Publisher Š Paramount Publications Ltd. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, without the consent of the publisher. While every effort is made to ensure accuracy, the publishers do not accept liability for error, printing or otherwise, appearing within this publication. The views expressed are not necessarily those of the editor or publisher.

Help Retail Trust Win the World Truck... (and one for yourself) worth £5,000 Get everything you need to celebrate World Cup fever with a brilliant competition from Argos to Win the World Truck, packed with £5,000 worth of goodies...one for yourself and one for Retail Trust (we hope). All goodies are guaranteed to make watching, entertaining and playing the World Cup a blast. Prizes include two HD ready TVs, a sofa, X-Box, Wii, cameras, barbeque, patio set, football table, Bud fridge, digital projector, iPod and speaker doc, laptop plus loads of football goodies and many many more…unbelievable! Enter the competition to win the goodies for yourself, then nominate Retail Trust to win another truck of goods that we can then use as prizes at our various events.

Visit www.worldtruck.co.uk for more details. The charity with the most votes wins, so please take time out to enter and then nominate Retail Trust by 13 July.

www.worldtruck.co.uk

Are you our next st

close tions a c i l p Ap th Sept 10

ar?

in a g a n o h is c r a e s The

ta t s o m il’s ’ a t e R r o f

l

www.retailtrustsearchforastar.com

r... e g n i s ented

The international market for retail real estate - 16th edition

91%

of MAPIC particpants told us MAPIC provides an efficient way to make new quality contacts*

MAPIC is a registered trademark of Reed Midem. All rights reserved.

*(Source MAPIC 2009 post-marker satisfaction survey)

Register by August 31, 2010 and save up to

400

www.mapic.com

Headquarters (Paris) Tel: +33 (0) 1 41 90 45 20

17-19 NOVEMBER 2010 France, Cannes, Palais des Festivals

Â? London Tel: +44 (0) 20 7528 0086 Â? New York Tel: +1 (212) 284 5141

Or contact our worldwide sales representatives by visiting www.mapic.com (contact us section)

UKNEWS

FROM NEW YORK TO LONDON, TOPSHOP’S NEW STORE DESIGN WOWS UK CROWDS After the success of Topshop New York in 2009, the natural progression was to bring the design home to the UK and showcase it in Topshop’s 2[IRUG &LUFXV ÁDJVKLS 7KLV VWRUH DOUHDG\ D shopping destination for Londoners and tourists DOLNH LV VSUHDG RYHU WKUHH ÁRRUV DQG VT P 7KH QHZ GHVLJQ E\ 'DO]LHO 3RZ KDV EHHQ VORZO\ introduced with a phased plan, never closing more WKDQ D FRUQHU RI WKH VWRUH DW DQ\ RQH WLPH WR UHPDLQ WUDGLQJ ZLWK PLQLPDO GLVUXSWLRQ WR FXVWRPHUV 7RSVKRS 2[IRUG &LUFXV LV PXFK ODUJHU LQ VTXDUH IRRWDJH WKDQ WKH 1HZ <RUN VWRUH ,W LV VSUHDG RYHU IHZHU ÁRRUV ZLWK ORZHU FHLOLQJV ZKLFK UHTXLUHG WKH GHVLJQ WR EH PRGLÀHG WR VXLW WKH GLIIHUHQW SURSRUWLRQV 7KH ODUJHU VTXDUH IRRWDJH LQ /RQGRQ allowed for credible permanent departments for DQFKRU RIIHUV DV ZHOO D ÁH[LEOH VSDFH IRU WKH UHVW RI WKH IDVKLRQ RIIHU

IN AN UNPRECEDENTED MOVE, KITBAG HAS OPENED EUROPE’S FIRST AND ONLY DEDICATED WORLD CUP STORE IN MANCHESTER CITY CENTRE. OPEN UNTIL 31 JULY TO CELEBRATE THE WORLD’S GREATEST FOOTBALL TOURNAMENT, THE STORE IS PROVIDING A COMPLETELY DIFFERENT WORLD CUP OFFERING TO EVERY OTHER SPORTS RETAILER.

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6 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

INBRIEF FAULKNER RETIRES FROM M&P PRIMARK LODGES OFFICIAL PRINCES STREET STORE PLANS )DVKLRQ UHWDLOHU 3ULPDUN KDV UHDFKHG D FUXFLDO PLOHVWRQH LQ LWV SODQV WR FUHDWH D ÁDJVKLS VWRUH RQ 6FRWODQG·V PRVW IDPRXV VKRSSLQJ VWUHHW $ detailed planning application has now been VXEPLWWHG WR WKH &LW\ RI (GLQEXUJK &RXQFLO IRU D QHZ ÁDJVKLS VWRUH RQ 3ULQFHV 6WUHHW 7KH SODQV KDYH EHHQ LQÁXHQFHG E\ comments and feedback gathered during an extensive three month public consultation H[HUFLVH 7KH UHWDLOHU LV DSSO\LQJ WR RSHQ D VT ft outlet on the site of the former Marks & 6SHQFHU EXLOGLQJ DW 3ULQFHV 6WUHHW ² ZKLFK ZRXOG SURYLGH WKH FRPSDQ\ ZLWK LWV WK VWRUH LQ 6FRWODQG FUHDWLQJ KXQGUHGV RI FRQVWUXFWLRQ DQG UHWDLO MREV &RXQFLOORU 7RP %XFKDQDQ &RQYHQHU IRU (FRQRPLF 'HYHORSPHQW VDLG ´:LWK SODQQLQJ

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JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 7

INTERNATIONALNEWS

INDITEX’S NET SALES REACH €2,665M IN THE FIRST QUARTER OF 2010 Inditex has reported net sales totalled ½ 0 LQ WKH ÀUVW TXDUWHU )HEUXDU\ WR $SULO RI LWV ÀVFDO \HDU SHU FHQW KLJKHU WKDQ WKH VDPH SHULRG D \HDU HDUOLHU 1HW LQFRPH DPRXQWHG WR ½ 0 DQ LQFUHDVH RI SHU FHQW IURP WKH VDPH SHULRG LQ 7KH FRPSDQ\·V JURVV SURÀW URVH E\ SHU FHQW WR ½ 0 OHDYLQJ WKH JURVV PDUJLQ DW SHU FHQW RI VDOHV ,QGLWH[ RSHQHG VWRUHV LQ FRXQWULHV LQ WKH ÀUVW TXDUWHU RI EULQJLQJ LWV WRWDO WR LQ FRXQWULHV DV RI $SULO ,WV ZRUNIRUFH JUHZ IURP HPSOR\HHV LQ WKH ÀUVW TXDUWHU RI WR WKH FXUUHQW HPSOR\HHV )ROORZLQJ WKH HQG RI WKH ÀUVW TXDUWHU RI ,QGLWH[ HQWHUHG LQ ,QGLD EULQJLQJ WR WKH QXPEHU RI FRXQWULHV LQ ZKLFK WKH *URXS LV SUHVHQW

DEVELOPED BY MULTI DEVELOPMENT SPAIN, ESPACIO CORUÑA HAS JUST BEEN AWARDED THE DEFINITIVE BREEAM CERTIFICATE,WITH A ‘VERY GOOD’ RANKING. THE MALL IS THE FIRST COMPLETED SHOPPING CENTRE IN SPAIN TO RECEIVE THIS PRESTIGIOUS CERTIFICATION WHICH IS ALSO THE ICSC’S STANDARD CRITERIUM TO EVALUATE THE IMPACT OF CONSTRUCTION OF BUILDINGS ON THEIR SURROUNDING AREA.

SONAE SIGNS RETAIL LOGISTICS SALE

UTELL SIGNS CASTADIVA ON LAKE COMO

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8 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

INTERNATIONALNEWS

INDITEX’S NET SALES REACH €2,665M IN THE FIRST QUARTER OF 2010 Inditex has reported net sales totalled ½ 0 LQ WKH ÀUVW TXDUWHU )HEUXDU\ WR $SULO RI LWV ÀVFDO \HDU SHU FHQW KLJKHU WKDQ WKH VDPH SHULRG D \HDU HDUOLHU 1HW LQFRPH DPRXQWHG WR ½ 0 DQ LQFUHDVH RI SHU FHQW IURP WKH VDPH SHULRG LQ 7KH FRPSDQ\·V JURVV SURÀW URVH E\ SHU FHQW WR ½ 0 OHDYLQJ WKH JURVV PDUJLQ DW SHU FHQW RI VDOHV ,QGLWH[ RSHQHG VWRUHV LQ FRXQWULHV LQ WKH ÀUVW TXDUWHU RI EULQJLQJ LWV WRWDO WR LQ FRXQWULHV DV RI $SULO ,WV ZRUNIRUFH JUHZ IURP HPSOR\HHV LQ WKH ÀUVW TXDUWHU RI WR WKH FXUUHQW HPSOR\HHV )ROORZLQJ WKH HQG RI WKH ÀUVW TXDUWHU RI ,QGLWH[ HQWHUHG LQ ,QGLD EULQJLQJ WR WKH QXPEHU RI FRXQWULHV LQ ZKLFK WKH *URXS LV SUHVHQW

DEVELOPED BY MULTI DEVELOPMENT SPAIN, ESPACIO CORUÑA HAS JUST BEEN AWARDED THE DEFINITIVE BREEAM CERTIFICATE,WITH A ‘VERY GOOD’ RANKING. THE MALL IS THE FIRST COMPLETED SHOPPING CENTRE IN SPAIN TO RECEIVE THIS PRESTIGIOUS CERTIFICATION WHICH IS ALSO THE ICSC’S STANDARD CRITERIUM TO EVALUATE THE IMPACT OF CONSTRUCTION OF BUILDINGS ON THEIR SURROUNDING AREA.

SONAE SIGNS RETAIL LOGISTICS SALE

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8 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

AMERICASNEWS

THIS YEAR’S GLOBAL DEPARTMENT STORE SUMMIT 2010 IS A GREAT SUCCESS The 2nd Global Department Store Summit was held in New York on 1011 June 2010, co-organised by Intercontinental Group of Department Stores (IGDS) and Saks Fifth Avenue. The event was a great success, and over 300 delegates from 36 countries – including 54 CEOs from WKH GHSDUWPHQW VWRUH LQGXVWU\ ² EHQHĂ€WHG D ORW IURP WKH SUHVHQWDWLRQV and the dynamic panel discussions. This year’s summit carried the theme of ‘Winning in a New Retail Environment’, with 14 speakers presenting their company’s stories of success and strategies. The programme was divided into four sessions, with themes including how department stores can win with their products, people, technology and their store as a stage. Welcome speeches by Steve Sadove, Chairman and CEO of Saks Fifth Avenue (pictured), and Bienvenido V Tantoco II, President of IGDS and President of Rustan’s Supercenters, commenced the summit with introductions of the day’s events. 'XULQJ WKH 2IĂ€FLDO 'LQQHU WKH 'HSDUWPHQW 6WRUH $ZDUG &HUHPRQ\ celebrated Selfridges as the winner of the prestigious ‘Department Store of the Year’ Award over world famous contenders Bloomingdale’s and Lane Crawford.

INTERCONTINENTAL HOTELS GROUP HAS ANNOUNCED THE RELAUNCH OF ITS 2,500TH HOLIDAY INN HOTEL, THE HOLIDAY INN POZA RICA AEROPUERTO, IN POZA RICA, VERACRUZ, MEXICO. HOLIDAY INN IS UNDERGOING THE BIGGEST RELAUNCH IN THE HOSPITALITY INDUSTRY WITH A ÂŁ650M INVESTMENT ACROSS MORE THAN 3,300 HOTELS AND 430,000 ROOMS WORLDWIDE.

JUNE SALES TAKE A DIP SAYS ICSC After sales at the beginning of June increased, retailers VDZ Ă€JXUHV GLS DV FRQVXPHUV WRRN D VOLJKW EUHDN IURP shopping in the second week. As a result, for the week ending 12 June, weekly sales declined by 0.7 per cent, according to the ICSC-Goldman Sachs weekly sales index. On a year-over-year basis sales grew by 2.9 per cent, which was a marginally slower pace than during the prior week. “Sales dipped in the second week of June from the prior week, though the year-over-year momentum continued only slightly under the prior week’s pace,â€? said Michael Niemira, ICSC Director of Research and Chief Economist. “The weekly pace appears to be a bit more volatile than in recent weeks, but, the month’s easy comparisons will lift the year-over-year pace throughout the month. Overall for the month of June, ICSC Research expects sales will increase by 3-4 per cent,â€? Niemira added.

10 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

TARGET SEEKS TO DRIVE LOYALTY Commencing later this year, Target is to launch a new LQLWLDWLYH WKDW ZLOO VHH LWV FXVWRPHUV UHFHLYH D Ă€YH SHU FHQW discount when they use a REDcard at any Target store or on Target.com. Target’s REDcards include the Target Credit Card, Target Visa Credit Card and Target Check Card debit product. Commenting on the plans, Gregg Steinhafel, Chairman, 3UHVLGHQW DQG &KLHI ([HFXWLYH 2IĂ€FHU RI 7DUJHW VDLG “We’re excited to offer this outstanding value to our REDcard holders across the country. We believe guests will appreciate the simplicity and compelling value of this program, which will lead them to choose to shop more often at Target. “As a result, we expect this new program to drive SURĂ€WDEOH LQFUHPHQWDO VDOHV ZKLFK ZLOO PRUH WKDQ RIIVHW the cost of providing this everyday discount to our cardholders.â€?

INBRIEF NEW LABEL FOR WALMART BRAZIL CANADIAN RETAIL DROP SUGGESTS WEAKNESS AHEAD A deeper-than-expected drop in retail sales threatens weakness in consumer spending in the months ahead as over-indebted Canadians retrench in the face of rising rates, according to a report in Canada’s Financial Post. Retail sales fell two per cent in April 2010, giving back all the gains from the previous months, when sales notched their biggest JDLQ LQ Ă€YH \HDUV DW DQ XSZDUGO\ UHYLVHG rate of 2.2 per cent. April’s sharp decline came as a surprise to economists, who had been calling for sales to edge down 0.4 per cent, riding on the heels of a strong, post-downturn recovery that extended through 2009 and into 2010. “There have been recent rumblings that Canada’s previously impressive domestic

spending revival was losing steam, and the sharp drop in April retail sales is the loudest warning shot yet,� said BMO Capital Markets Deputy Chief Economist, Douglas Porter. “While the setback appears to be a simple case of a reversal RI WKH ZHDWKHU UHODWHG MXPS LQ WKH SULRU month, the fact is that the days of easy gains are over for spending.� Worst hit were new car dealers and clothing retailers. The only sub-sector to gain was electronics and appliance stores. April marked only the second decline in 15 months. Yet economists were reluctant to suggest the data suggested a reversal of fortune for the sector and its contribution to the economy.

NEXT GENERATION WALMART TO ACCELERATE EXPANSION Walmart Stores President & CEO Mike Duke laid out four strategies for building the Next Generation Walmart at the annual shareholders meeting in June. He said Walmart is poised to deliver on Sam Walton’s vision of giving “the world an opportunity to see what it’s like to save and have a better OLIH Âľ 7KH VWUDWHJLHV DUH WR ‡ Become a truly global company; ‡ Understand the challenges that retailers will face and solve them; ‡ Play an even bigger leadership role on social issues; ‡ Keep its culture strong everywhere. “Our results demonstrate the underlying strength of our business and our strategies

of growth, leverage and returns,â€? said Duke. “But as proud as we are of our recent performance, future success is never guaranteed. I want all of you to be able to say that at this moment Walmart committed to being a truly global company and began building the Next Generation Walmart.â€? Duke discussed the need to serve customers as a local store, share best practices and leverage Walmart’s global supply chain. He also stressed the LPSRUWDQFH RI WDOHQW ´-XVW RYHU WKH QH[W Ă€YH \HDUV ZH¡OO FUHDWH MREV DURXQG WKH world. We need to recruit and identify the best talent. Then we need to develop leaders and help them become global citizens.â€?

Walmart Brazil has launched a new private label range, Bom Preço, which will replace existing ranges in Bompreço, BIG, Mercadorama and Nacional format stores. Commenting, Julia 3HWWLQL 'LUHFWRU RI %UDQG :DOPDUW %UD]LO VDLG 7KLV LV D VWUDWHJ\ WKDW EHQHĂ€WV WKH HQWLUH FKDLQ and offers a unique brand with quality approved.â€?

HMV CANADA PLANS TO DIVERSIFY

HMV Canada is rolling out a loyalty card, clothing line and digital downloading website. Humphrey Kadaner, President of HMV Canada, said the retailer is leveraging its brand name to diversify into new categories that are less vulnerable and will focus on existing customers.

COMERCIAL MEXICANA DEBTS EASE

Comercial Mexicana has received shareholder approval on its plan to restructure its debt. Comerci, as the retailer is known by analysts, defaulted on its debts after it suffered losses on its derivatives bets. It recently reached an agreement with creditors to repay about $1.5bn rather than the $2bn-plus that creditors had originally demanded.

TIDE IS TURNING FOR TALBOTS

After 11 straight quarters of year-on-year sales declines, Talbots has turned the corner. The chain’s total sales grew 4.7 per cent in the second quarter on the strength of a 2.4 per cent rise in same-store sales and a 27 per cent vault in catalogue and Internet sales. Full-price sales climbed 21 per cent year on year for the quarter.

ICSC PAST CHAIRMAN AUER DIES

Sadly, Albert J Auer, an ICSC past Chairman and trustee, died in June. He was 85. As the Council’s 18th Chairman he served the 1977-78 term and was a trustee from 1972-76. He began his retail real estate career with The Irvine Co and later founded Albert J Auer & Associates to develop UHWDLO DQG RIÀFH SURMHFWV LQ 6RXWKHUQ &DOLIRUQLD

WALMEX IDENTIFIES NEW CITIES

Scot Rank, CEO of Walmart de Mexico, said WKH UHWDLOHU KDV LGHQWLĂ€HG KXQGUHGV RI FLWLHV in Mexico and Central America where the company could establish a presence. He UHLWHUDWHG :DOPH[¡V SODQ WR H[SDQG Ă RRU space this year by 3.5% in Central America and 11% in Mexico.

TREMBLAY ON A NEW VENTURE

RenĂŠ Tremblay, the ICSC’s Chairman in 2007, has announced that he will leave Caisse de depot et placement du QuĂŠbec, where he was Executive Vice President of Real Estate, and 3UHVLGHQW RI WKH Ă€UP¡V UHDO HVWDWH JURXS WR pursue new business ventures. He has some 30 years’ experience in real estate in Canada.

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 11

MIDDLEEASTNEWS

BENOY CELEBRATES AS FERRARI WORLD ABU DHABI SCOOPS CITYSCAPE AWARD The Benoy-designed Ferrari World Abu Dhabi, delivered on behalf of Aldar Properties, has ZRQ WKH Âś%HVW &RPPHUFLDO 2IĂ€FH 5HWDLO )XWXUH Development’ Award at the Cityscape Abu Dhabi 2010 Awards. The Award recognises design excellence in the Middle East and North Africa. The unique design of Ferrari World Abu Dhabi is inspired by the double curve of the classic Ferrari SURĂ€OH DQG GHOLYHUV DQ DUFKLWHFWXUDO LQWHUSUHWDWLRQ of one of the world’s true design icons. The ambition, location and scale of the project, combined to present enormous architectural challenges that required Benoy to deliver a revolutionary design solution. Benoy’s Chairman, Graham Cartledge CBE commented: “We are delighted that Ferrari World Abu Dhabi has won this esteemed award and we are extremely proud to have delivered a project of such national importance to Abu Dhabi.â€?

COLOURFUL CLOTHING BRAND DESIGUAL IS TO LAUNCH IN DOHA, QATAR AND ABU DHABI. RETAIL GROUP ALSHAMSI HOLDINGS WHICH OWNS THE FRANCHISE RIGHTS FOR THE MIDDLE EAST, HAS AMBITIOUS PLANS FOR THE SUCCESSFUL LABEL THAT HAS BECOME A WELL KNOWN FASHION HOTSPOT IN DUBAI.

SUPERDRY ROLLS OUT ACROSS UAE

LANCASTER FIRM FULL OF PROMISE

Leading international youth fashion brand Superdry will roll out 13 stores across the UAE over the next three years, as part of massive expansion plans across different markets in the world. The UAE plans were revealed at the franchise signing agreement between SuperGroup Plc, owner of the Superdry brand, one of the fastest growing international retailers and wholesalers of youth fashion, and Al Khayyat Investments LLC, a leading Dubai holding company that represents more than 150 top international brands across the Middle East. The UAE plans are an indication that the youth fashion retail industry offers huge potential. The rollout of stores ZLOO WDNH SODFH RYHU WKH QH[W WKUHH \HDUV ZLWK WKH ÀUVW VWRUH due to open in Deira City Centre in July 2010. Two more stores are scheduled to open before the end of the year in Mirdif City Centre and Mall of the Emirates. Superdry, established six years ago, is a global brand patronised by many leading celebrities.

Lancaster-based recycling firm ShP Ltd has signed a multi-million pound deal to offer the first ever mobile phone recycling service to the Middle East. The company, whose consumer brand Mopay.co.uk is the UK’s original mobile phone recycling business, is partnering with the fastest growing electrical retail chain in the Middle East, Emax, to launch ‘Cash for Mobiles’. Emax is the electronics arm of the USD3.2bn Landmark Group retail chain and ‘Cash for Mobiles’ is available at all Emax ‘big box’ electronics stores serving the UAE, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar and Bahrain. Customers can bring an old phone into the store to be instantly assessed and exchanged for cash. The phones are then recycled by ShP Ltd with working phones refurbished and sent to developing nations. Non-working phones are recycled in line with the Weee Directive which sets environmental recycling standards for electrical items.

12 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

INBRIEF PARTNERSHIP GROOMS BAHRAINIS FOR FINANCIAL INDUSTRY Edexcel, a leading provider of internationally recognized academic and professional TXDOLĂ€FDWLRQV KDV KDLOHG %DKUDLQ¡V VXFFHVV in creating a large pool of local expertise in WKH Ă€QDQFLDO LQGXVWU\ 4XRWLQJ RIĂ€FLDO VWDWLVWLFV (GH[FHO VDLG that of the 14,000 people employed in WKH Ă€QDQFLDO LQGXVWU\ SHU FHQW DUH %DKUDLQLV ZLWK KLJK OHYHOV RI Ă€QDQFLDO VNLOOV and expertise. 0DUN $QGUHZV (GH[FHO¡V 0(1$ 5HJLRQDO 'LUHFWRU VDLG Ă€QDQFLDO VHUYLFHV FXUUHQWO\ PDNH XS SHU FHQW RI %DKUDLQ¡V *'3 DQG WKHUH DUH RYHU OLFHQVHG Ă€QDQFLDO institutions in the Kingdom. “There is an urgent need to sharpen the skills of the Bahraini workforce by exposing them to global best practices and equip them with the necessary tools to manage

this rapidly growing industry that has a room for growth, as Bahrain has built a VWURQJ UHSXWDWLRQ DV WKH UHJLRQ¡V Ă€QDQFLDO capital for more than 40 years.â€? The remarks came at the signing of an agreement between the Bahrain Institute of Banking and Finance (BIBF) and Edexcel to provide learners with an accredited %XVLQHVV (QJOLVK TXDOLĂ€FDWLRQ Speaking at the event, Andrews added: “The partnership with BIBF is one of our most prestigious in the region. The institute is recognised as a leader in WKH EDQNLQJ DQG Ă€QDQFH VHFWRU DQG E\ having their Business English Program accredited by a globally recognised awarding body they are giving their graduates a competitive added advantage at the workplace.â€?

LIVE FASHION SHOWS BOOST RETAIL AND CLOTHES BUSINESS Live fashion shows at Bawadi Mall have boosted the retail and clothes business in Al Ain City. The shows, held twice a week, have resulted in sales spurt at most tenants in the mall, including international, regional and local brands. Bawadi Mall, in association with selected international and local brands, has conducted the fashion show, where latest ranges of fashion were being displayed. Khalid Shraim, Marketing Manager, Bawadi Mall said: “We held the live fashion shows on the sidelines of our ‘Shop & Win’ campaign. We have been showcasing the latest range of fashion from Zara, Mango, H&M, Marks & Spencer, BHS, Splash, New Look, Next, Hanayen, 1DXWLFD 5,9$ + )OR 3URPRG Gant and Kashkha along with fashion clothes targeting children like Adams, Mothercare, Baby Shop, Ladybird and For You.â€? Fashion shows are a new concept in the region. The move UHĂ HFWV WKH PDOO¡V SODQV WR ERRVW sales through innovative ideas. Bawadi Mall announced that until the issue of this press release, the mall attracted 1,100,000 visitors during this campaign. The fashion shows are part of the 51 day ‘Shop & Win’ campaign that ended on 4 June 2010. Shraim added: “In addition to the fashion show, ‘Shop & Win’ featured a series of entertainment

and shopping offers targeting the diversity of customers. The visitors were enticed by the attractive promotions given by the RXWOHWV 7KH FDPSDLJQ KDG GDLO\ UDIà HV WKDW let visitors win coupons with thousands of dirhams provided by Bawadi Mall along ZLWK WKH VWRUHV $ UDIà H ZDV PDGH HYHU\ GD\ to pick three winners.�

METRO GROUP OPENS IN EGYPT

Germany-based retailer, Metro Group has XQYHLOHG SODQV WR RSHQ LWV ÀUVW ZKROHVDOH VWRUH LQ Egypt this summer and said it may add about 20 PRUH $V 5/, ZHQW WR SULQW WKH ÀUP VDLG LWV ÀUVW new facility in the Cairo area would open on 30 June. A further two stores, also under the Makro brand, are planned to open this year, it said.

NEW MALL FOR SAUDI ARABIA

6DXGL EDVHG UHDO HVWDWH PDQDJHPHQW ÀUP Aqari Investment Holding has unveiled plans to EXLOG D 65 0 VKRSSLQJ PDOO LQ 7DLI $UDE 1HZV has reported. The mall, which will cover a total area of almost 120,000sq m, and comprise VKRSV LV VFKHGXOHG IRU FRPSOHWLRQ ZLWKLQ two years.

LULU EXPANDS FURTHER IN OMAN

Lulu Hypermarket has opened a new outlet in Oman’s Wadi Kabir, bringing the number of K\SHUPDUNHWV LQ 2PDQ WR VHYHQ 7KH ÀUP VDLG hypermarkets in Khaborah, Khasab, Salalah and Nizwa will be operational this year, taking the total count up to 11. It claims Oman is its biggest market outside of the UAE.

KUWAIT AND SAUDI RATED HIGH

Kuwait and Saudi Arabia rank among the most promising retail hotspots in the world, according to a new report by AT Kearney. Kuwait was ranked the second most promising market for retailers in the management consultancy’s ODWHVW *OREDO 5HWDLO 'HYHORSPHQW ,QGH[ EHKLQG China but ahead of India.

PEPSICO AGREES FERRARI DEAL

PepsiCo has announced the signing of a longterm supply and sponsorship agreement with $OGDU 8QGHU WKH WHUPV RI WKH ÀYH \HDU GHDO LW ZLOO become the exclusive supplier of beverages and snacks for Ferrari World Abu Dhabi, the world’s largest indoor theme park, which will open to the public on October 28, 2010.

BARNEYS HOPES EXCEEDED

The results so far this year of Barneys New York, owned by Dubai World unit Istithmar, have exceeded its own projections, helped by revived luxury spending, though its debt load remains a GUDJ UHSRUWV 5HXWHUV %DUQH\V H[SHFWV (ELWGD WR rise by as much as $40M in 2010. The current IRUHFDVW LV JUHDWHU WKDQ WKH RULJLQDO

JOLLIBEE TO OPEN IN QATAR

Philippines-based fast food chain, Jollibee has XQYHLOHG SODQV WR RSHQ LWV ÀUVW VWRUH DW WKH $O Meera Consumer Goods Mall in Doha, Qatar. The new Jollibee store in Qatar is franchised by Sunrise Trading and Food Stuff. The store has expanded ZLWK RYHU EUDQFKHV DFURVV WKH 3KLOLSSLQHV 86 Hong Kong, Saudi Arabia, Brunei and Vietnam.

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL13

LAS VEGAS SANDS CHAIRMAN SHELDON G ADELSON OPENS SANDS SKYPARK /DV 9HJDV 6DQGV &KDLUPDQ &KLHI ([HFXWLYH 2IÀFHU Sheldon G Adelson and his wife, Dr Miriam Adelson, RIÀFLDOO\ RSHQHG 6DQGV 6N\3DUN RQ -XQH 6LQJDSRUH·V PXFK DQWLFLSDWHG DQG PRVW H[FLWLQJ QHZ DWWUDFWLRQ LV UHDG\ WR ZHOFRPH YLVLWRUV IURP DURXQG WKH ZRUOG WR HQMR\ VSHFWDFXODU YLHZV IURP RQH RI WKH ODUJHVW SXEOLF REVHUYDWLRQ GHFNV ´7KH RSHQLQJ RI WKH 6DQGV 6N\3DUN VLJQLÀHV DQ LPSRUWDQW PLOHVWRQH IRU 0DULQD %D\ 6DQGV 7KLV KDV EHHQ WKH VLQJOH PRVW FKDOOHQJLQJ HQJLQHHULQJ FRPSRQHQW RI WKLV XQLTXH LQWHJUDWHG UHVRUW DQG WR VHH LW PDWHULDOLVH LV DQ LQFUHGLEO\ SURXG PRPHQW IRU XV 0DULQD %D\ 6DQGV DORQJ ZLWK LWV VLJQDWXUH 6DQGV 6N\3DUN ZLOO EH D WUXO\ LPSUHVVLYH LFRQ DQG ZH DUH H[FLWHG WR SUHVHQW WKLV EROG DUFKLWHFWXUH WR QRW RQO\ 6LQJDSRUH EXW WR WKH UHVW RI WKH ZRUOG µ VDLG $GHOVRQ .H\ KLJKOLJKWV RI WKH 6DQGV 6N\3DUN LQFOXGH WKH P LQÀQLW\ VZLPPLQJ SRRO WKH ZRUOG·V ODUJHVW RXWGRRU SRRO DW WKDW KHLJKW RSHQ RQO\ WR KRWHO JXHVWV

GAP TO LAUNCH STORES IN CHINA

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14 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

INBRIEF MUMBAI BECOMES A MAGNET FOR NEW MALL DEVELOPMENT %H\RQG 6TXDUHIHHW $GYLVRU\ 3YW /WG KDV EHHQ DSSRLQWHG E\ 1HSWXQH *URXS WR DGYLVH RQ DOO DVSHFWV RI LWV XSFRPLQJ 1HSWXQH 0DJQHW 0DOO RQ /%6 0DUJ /RZHU 3RZDL LQ 0XPEDL 1HSWXQH 0DJQHW 0DOO KDV D IURQWDJH RI IW DQG D WRWDO VL]H RI VT IW 8SRQ RSHQLQJ WKLV ZLOO EH WKH ODUJHVW PDOO LQ 0XPEDL LW ZLOO ERDVW WKH FLWLHV ODUJHVW PXOWLSOH[ WHQ VFUHHQV DQG IDPLO\ HQWHUWDLQPHQW RIIHULQJ D WZR OHYHO IRRG FRXUW D VXEVWDQWLDO JURFHU\ RIIHULQJ VHYHUDO ODUJH DQFKRUV DQG WKH SHUIHFW PL[ RI VKRSSLQJ IRRG HQWHUWDLQPHQW PRYLHV DQG VHUYLFHV :KLOH LW FDWHUV WR WKH SULPDU\ FDWFKPHQW LW ZLOO SXOO FXVWRPHUV IURP ZHOO EH\RQG WKH DUHD EHFDXVH RI LWV XQLTXH UHWDLO PL[ DQG VKHHU VL]H *URZWK LQ 0XPEDL KDV RFFXUUHG PRVWO\

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JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 15

ONE OF THE UK’S BEST-KNOWN RETAILERS, JOHN LEWIS HAS EMERGED STRONGLY FROM THE ECONOMIC DOWNTURN AND IS FIRMLY FOCUSED ON EXPANDING ITS UK PRESENCE WHILST EVOLVING ITS PRODUCT OFFERING. RLI TALKS TO NAT WAKELY, DIRECTOR OF SELLING OPERATIONS.

Talking shop

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One of the UK’s most popular and best-loved retail stalwarts, the John Lewis currently operates 28 full line department stores across the UK and one ‘at home’ shop in Poole. The brand has emerged powerfully from the recession and as a result now has many opportunities to stretch its leadership of the department store sector. Its performance has been driven by a commitment to quality, service and value. This has been combined with rapid innovation to deliver a market-beating performance which saw John Lewis win market share in all areas of its business. The company’s Cardiff shop opened in September 2009 and is the largest department store in Wales and the largest John Lewis branch outside of London. John Lewis at home opened in Poole in October 2009 and is a trial of a new format, stocking the KRPH DVVRUWPHQW PLQXV ÁRRU FRYHULQJV DQG ÀWWHG NLWFKHQV SOXV an Electricals and Home Technology assortment. The shop also features a cafe, home design service, a collection point for online orders and the opportunity to purchase from an existing Gift List. Further John Lewis at home shops are planned to open this year:

in Croydon in late summer and Swindon and Tunbridge Wells in the Autumn. A full line department store will open at the Olympic site in Stratford in 2011. What then are the company’s plans for the future; will we perhaps see growth internationally? RLI caught up with Nat Wakely, Director of Selling Operations to ask the question. “We are always looking at new opportunities for expansion and growth,â€? he says. “We have no news on international development plans, RWKHU WKDQ WR FRQĂ€UP WKDW ZH DUH looking at international delivery from www.johnlewis.com. We are currently focusing on expanding our UK presence so that we can respond to customer feedback that says too many people are further than a 40-minute drive from a John Lewis.â€? Are there any areas in the UK then that the brand has not yet successful penetrated? “We remain committed to seeking UHSUHVHQWDWLRQ DW 6SUXFHĂ€HOG LQ 1RUWKHUQ ,UHODQG ZLWK :HVWĂ€HOG DQG WR Dublin Central with Chartered Land,â€? says Wakely. “We continue to look

at other strategic locations for new department stores, in particular Leeds and the Home Counties.â€? Of course, John Lewis has been DSSRLQWHG WKH 2IĂ€FLDO 'HSDUWPHQW 6WRUH Provider to London 2012; what impact will this have upon the company and what is it that John Lewis brings to the table at the 2012 Games? “We were the only retailer to back the original bid for London to get the Games and were very keen to continue our support. As part of our partnership with LOCOG, we will offer staff (known DV 3DUWQHUV WKH RSSRUWXQLW\ WR ZRUN with LOCOG in the build-up to the Games, help to furnish lounge and reception areas at Games-time venues, and provide warehouse space,â€? he says. In addition, John Lewis Oxford Street and a forthcoming store adjacent to the Olympic Park at Stratford (due to RSHQ LQ DUH VHW WR EHFRPH key retail outlets for Games-related merchandise, and will give back all QHW SURĂ€W WR /RQGRQ RQ 2O\PSLF merchandise sold. “Our reputation for quality, value

and service, has served us well over the past year as consumers have turned to retailers they trust during a period of economic turbulence,â€? says Wakely. “We have strengthened our pricing policy by reinforcing the Never Knowingly Undersold commitment, and we have broadened customer appeal with a choice of products which is second to none, from value to luxury.â€? Highlights have included the introduction of a value range, collaboration with British designers in Fashion and Home, and the introduction of exclusive Designer collections. Furthermore, the extension of own-brand John Lewis products has continued apace and this focus on product has been complemented by work on the selling environment itself, with a new women’s fashion concept being extended to three shops before Oxford Street later this year. Geographic expansion has also made John Lewis more accessible to many more customers. The success of the ‘John Lewis at home’ in Poole, which achieved its sales target for the year three weeks ahead of schedule, means that other ‘at home’ shops have EHHQ FRQĂ€UPHG DQG GHPRQVWUDWHV WKH potential for further expansion. Gross sales were up 2.8 per cent Â… 0 DW Â… EQ DQG RQ D ZHHN basis, sales were 4.3 per cent higher. Like-for-like sales were up 2.3 per cent during the year. “Expansion and development of our multichannel and online operations has been a key area of success,â€? continues Wakely, “supported by our new distribution operation at Magna Park which has had an excellent Ă€UVW \HDU Âľ Sales were up ÂŁ60.6M, 18.2 per cent, in John Lewis Direct within which fashion sales have increased by 78 per cent since September, boosted by an investment in a new online fashion concept which now offers 60,000 lines from basics to premium brands. This year will see further expansion as the online offer has already passed the 100,000 level. The company is focussed on delivering excellent service, quality, value and an inspiring assortment and constantly seek ways to innovate, he says. Its ownership model is a key point of difference in supporting our commitment to service “We will continue to see economic uncertainty throughout this year and any pressure on consumer spending will make trading conditions tough. However, we will continue to strive to deliver what our customers want to ensure that we are in the best possible place to continue to gain market share.â€?

alive

Where dreams

young at heart and fashion conscious. “As I always say, nobody comes to our store to buy footwear or apparel but he/she comes for an ultimate shopping experience. We strive to provide for lifetime experience to every customer we have in our store,” he says. It is clear that customer attitudes towards shopping have changed and today’s consumer is looking for value deals or bargains. It is no surprise then that Apparel has seen a tremendous response at its stores during sales or promotions. At the same time, it has also observed a drop in the number of tourists in general, who constitute a large percentage of shoppers at its stores. The global retail sector is of course facing a number of challenges, so how does Ved feel that the market, and Apparel in particular, are performing at the moment in the face of this? “The year 2009 was challenging,” he says. “However, our proactive and aggressive strategies and focus on the customer brought strong positive results for the group. We have expanded during this phase and opened 28 stores at the Dubai Mall, 19 at the Arabian Centre and 13 at the Bawadi Mall Al Ain.”

come

Although the group’s business model has changed (it undertook more sales or promotion periods in 2009, which undoubtedly had an impact on its gross margins) it ended up with a positive doubledigit growth in sales in the year 2009. 2010 has seen a better start with a greater amount of stability and positive sentiments being recorded in the market as a whole, and Ved says that he expects the trend to be the same for the remainder of the year. What then lies behind the company’s continued success? “I would say without question it is our people and their team spirit, the aggressive and proactive measures adopted by the management team and the support from the brand principals, all of which helped us to achieve what we have. Our ethos is simple: service and speed,” he explains. “The growth and success of Apparel has been very exhilarating. At the same time, the challenge we face is to repeat the successes we have enjoyed in the UAE, Gulf, India and Russia, where we are already seeing some Á\LQJ UHVXOWV µ

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 19

Dubai-based fashion retailer Apparel Group has enjoyed tremendous success with a growing portfolio of brands represented throughout 14 countries. Chairman Nilesh Ved talks about the group’s success in the face of challenging conditions and its plans for continued expansion.

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ubai-based Apparel Group currently represents 46 international fashion brands from the US, Canada, Europe, Australia and the Far East through its portfolio of 562 stores, spread across 14 countries, including the UAE, State of Kuwait, State of Qatar, Kingdom of Bahrain, Sultanate of Oman, Kingdom of Saudi Arabia, India, Poland, Russia, Singapore, Jordan, Thailand, Indonesia and Malaysia. The group also has a clear strategy in place to enter emerging markets such as the Czech Republic, Hungary and Pakistan. The past 12 months have been both challenging and at the same time exciting in terms of the group’s achievements; it signed a deal for the franchise rights of Freedom Furniture, Motivi, Aeropostale, MBT and Garage, whilst diversifying its portfolio into both in the food sector with Cold Stone Creamery and the furniture division with Freedom. At the same time, Apparel has expanded its network in the State of Qatar and India, which have proven to be growing and promising markets during the downturn. The group has also been recognised

with industry awards such as the Dubai Quality Appreciation Award 2009 and the Superbrands Awards 2010, for its brands Nine West, Aldo, Bally and Booksplus. Prominent openings during 2010-11 include 14 store openings at Mirdiff City Center and the scheduled opening of 49 stores in India. Longer term, Apparel will be focussing its expansion network and aims to achieve its mission of opening 1,000 stores by 2012. It will also be exploring various acquisition opportunities which will further strengthen the group portfolio. “We do not intend to expand into new territories at this time, though we are looking at strong expansion in existing markets such as Russia, the Kingdom of Saudi Arabia and India,â€? says Nilesh Ved, Chairman of Apparel Group. “There are enormous opportunities in these markets and we would like to tap those markets fully before venturing into any new territory.â€? To better present its brands, the group seeks out locations that are on the ground Ă RRU LQ WKH PDLQ ZDONZD\V RI D PDOO ZLWK large footfall and good adjacent tenants, as

18 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

close as possible to main entrances of the car park areas. “In terms of sales per square feet or the bottom line, I regard Aldo, Mall of the (PLUDWHV DV WKH JURXS¡V Ă DJVKLS VWRUH ,W LV also rated Number 1 in Aldo International Ranking Worldwide. However in terms of size, Freedom Furniture Bahrain City Centre would EH WKH JURXS¡V Ă DJVKLS VWRUH Âľ H[SODLQV 9HG Apparel’s portfolio contains strong, recognisable brands, how does the group ensure that its offer remains fresh and relevant? “Inventory is the key in our business and we always try to strike an optimum balance between our inventory carry and inventory liquidation,â€? explains Ved. “The idea is to have freshness throughout the season by launching new styles, new collections and simultaneously achieving a higher in-season liquidation to keep our OTBs open for future orders. The focus is also to have ‘Just In’ time so that more stress is on the re-orders and at the same time not to block future MPBs due to bigger inventory carryovers.â€? Apparel targets its offer at everyone who is

unique

around the world Offering a truly unique hospitality experience,

Relais & Chateaux takes great pride in its high VWDQGDUGV 3UHVLGHQW -DXPH 7DSLHV WDONV WR 5/, about the company’s plans for growth and its FRPPLWPHQW WR FRQWLQXHG JXHVW VDWLVIDFWLRQ ROCHEGUDE, FRANCE SAN PIETO, ITALY

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20 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

stablished in France in 1954, Relais & Châteaux is an exclusive collection of RI WKH Ă€QHVW KRWHOV DQG gourmet restaurants in 58 countries DQG DFURVV Ă€YH FRQWLQHQWV ,WV mission is to spread a unique ‘art de vivre’ across the globe by selecting outstanding properties with a truly unique character, sharing a passion for and a personal commitment to ensuring that guests are privy to PRPHQWV RI H[FHSWLRQDO KDUPRQ\ France and that country currently represents one-third of the company’s portfolio, the rest of Europe representing the second third and the remainder across the rest of WKH ZRUOG All Relais & Chateaux properties are completely different, according to WKHLU ORFDWLRQ ,Q ,QGLD IRU H[DPSOH it has recently incorporated a beautiful new property that is developing very well in terms of growth, and so very distant in terms of style and experience from the FRPSDQ\¡V RULJLQV Of course the company also has numerous properties in its more traditional countries, such as France where it has incorporated four properties in the Cote D’Azur

CLIFF HOUSE, UK.

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´,Q WHUPV RI GHYHORSPHQW opportunities, we are very focused on locations such as Mexico and Chile in the Americas and more remote GHVWLQDWLRQV VXFK DV WKRVH LQ ,QGLD and South East Asia, and of course &KLQD $OO RI WKHVH ORFDWLRQV KROG JUHDW SRWHQWLDO IRU XV Âľ VD\V 7DSLHV ´,W PD\ EH D VORZ SURFHVV EXW ZH DUH more than happy with our progress and are developing extremely well in WKHVH FRXQWULHV Âľ 7KH FRPSDQ\ LV DOVR ZDWFKLQJ D QXPEHU RI PDJQLĂ€FHQW SDODFHV DQG castles throughout Europe, many undergoing renovation that will be FRPSOHWHG TXLWH VRRQ “Above all, for us to consider zany new location it has to be a place that has character, charm and calm; somewhere where you can experience the luxury, something that ZLOO HQULFK \RX Âľ Relais & Chateaux really is the antithesis of the standardised hotel format; every property is different and offers the visitor a unique sense RI SODFH .H\ WR WKH EUDQG¡V VXFFHVV he says, is quality assurance; when a hotel or restaurant appears in its brochure or online, there is an explicit promise that standards of service and experience will be the very

KLJKHVW SRVVLEOH Whilst much of the hospitality industry has suffered badly during the economic downturn, Relais & Chateaux has enjoyed something of D FRPHEDFN WKLV \HDU +DYLQJ VHHQ a drop from 2008, an excellent year for the company, to 2009 of seven per cent worldwide, and a fairly weak performance in key markets such as the UK and US, it has since witnessed an extraordinary turnaround and the company is currently a staggering 49 SHU FHQW XS RQ ODVW \HDU An important factor in this is the unusual growth in last-minute bookings – 56 per cent of bookings this year have been registered six ZHHNV EHIRUH DUULYDO “With the advent of the slowdown we very quickly developed our VWUDWHJ\ UHFRQĂ€JXULQJ RXU UHVHUYDWLRQ system, which has proven to be a JUHDW VXFFHVV Âľ VD\V 7DSLHV ´:H have also invested heavily in reconcentrating the training of our VWDII :KDW ZH PXVW QRZ GR is to continue to successfully motivate and train our staff in order to ensure the very best welcome for our guests; this is more important than ever and we are deeply committed on GHOLYHULQJ RQ RXU SURPLVHV Âľ

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 21

COVER STORY RLI DESPITE TOUGH MARKET CONDITIONS ISG HAS CONTINUED TO DIVERSIFY, MAINTAINING ITS GROWTH INTERNATIONALLY. MANAGING DIRECTOR OF ISG’S UK FIT-OUT OPERATION DARREN HILL AND JOHN MAWHINNEY, BUSINESS DEVELOPMENT & MARKETING DIRECTOR, TALK ABOUT THEIR COMMITMENT TO QUALITY AND THE GROUP’S PLANS FOR CONTINUED SUCCESS.

DARREN HILL

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JOHN MAWHINNEY

eadquartered in the UK, ISG delivers award-winning FRQVWUXFWLRQ ÀW RXW DQG management services throughout the UK, Europe the Middle East and Asia. Working throughout a range of sectors, its portfolio encompasses small bespoke works through to major projects worth over £100M. ISG was established in 1989 and has been quoted on the AIM since 1998. Today the Group employs over 2,000 staff and has 27 RIÀFHV ZRUOGZLGH 5HWDLO KDV EHFRPH D VLJQLÀFDQW part of ISG’s business accounting for approximately 20 per cent of the Group’s turnover, equating to circa £210M in the UK. 8. UHWDLO ÀW RXW SURMHFWV DUH VKDUHG across the group, with ISG Europe and ISG Asia providing international retail project delivery. RLI met with UK Fit-Out Managing Director Darren Hill and Business Development & Marketing Director, John Mawhinney to discuss the group’s recent development, the growth of its portfolio and of course its plans for the future; perhaps the biggest step in ISG’s evolution is that the recent listing RI WKH WUDGLWLRQDO VKRSÀWWLQJ VLGH

face of fit-out

of the business. “With the way the market has been performing of late, and we have seen that the number of clients looking at contractor-led solutions, ie: a single end-to-end service provider, has JURZQ VLJQLĂ€FDQWO\ Âľ H[SODLQV +LOO “To address this, we have upskilled LQ FHUWDLQ DUHDV VSHFLĂ€FDOO\ LQ terms of the client-facing side of the business, to better develop our client relationships as well as delivering top quality projects. “As a company, we specialise and work extremely well with concept designers and architects, together creating truly innovative new UHWDLO VSDFH Âľ “Within the Group, ISG Cathedral is viewed very much as a traditional VKRSĂ€WWHU :LWK WKH EHQHĂ€W RI EHLQJ SDUW RI D 3OF JURXS DQG WKH Ă€QDQFLDO security that we have behind us, we offer an assured service that clients NQRZ WKH\ FDQ GHSHQG XSRQ Âľ adds Mawhinney. ISG has been very active in high street fashion over the past 18 months – Primark is a wellestablished client for whom the company has carried out a number of important projects – whilst internationally, it has undertaken a lot of work with Nike in France, as well as numerous projects throughout Europe for Footlocker. “High street fashion has been IDLUO\ ORZ NH\ LQ WHUPV RI VKRSĂ€WWLQJ DFWLYLW\ EXW WKDW SLFWXUH LV LPSURYLQJ Âľ says Hill. “An interesting factor is the amount of international retailers that are targeting the UK market; we are in discussion with retailers from both the US and Spain who view this as the LGHDO WLPH IRU DQ HQWU\ LQWR WKH 8. Âľ $ VLJQLĂ€FDQW SDUW RI WKH FRPSDQ\¡V current core workload is retail banking and it has undertaken a number of Ă DJVKLS GHYHORSPHQWV LQ WKDW VHFWRU as well as recently completing two hotels in the high-end and boutique market. In addition, it is currently on site with a ÂŁ4M project at the ladies’ shoe department in Selfridges, which will take in a host of international brands. “We also have a fantastic relationship with retailers such as Monsoon, which is enjoying a period RI VLJQLĂ€FDQW JURZWK DQG ORRNLQJ DW IXUWKHU LQWHUQDWLRQDO RSSRUWXQLWLHV Âľ says Mawhinney. “Everything we do is built around relationships, which is key to our VXFFHVV :H DUH FRQĂ€GHQW WKDW KDYLQJ built strong relationships, we can GHOLYHU RQ FOLHQWV¡ H[SHFWDWLRQV Âľ In January, ISG set up a dedicated UHWDLO Ă€W RXW VHUYLFH IRU FOLHQWV across Europe, focusing on four key countries, France, Germany, Italy and Switzerland, providing the same quality of service for which it is renowned in the UK. “The international side is a key IRFXV IRU XV DW WKH PRPHQW Âľ H[SODLQV Hill. “and we have to learn to be as good in other markets as we are in the UK; we are doing exceedingly well in Asia and the Middle East and are now

communicating this to our clients, letting them know that we are capable of a much broader offer. ´:H KDYH IRXU RIĂ€FHV LQ &KLQD for example, and have carried out a number of fantastic projects, such as WKH $SSOH Ă DJVKLS VWRUH LQ %HMLQJ Âľ he says. “The company is focused on relationship management and we strive to understand the client’s business and what they are trying to DFKLHYH Âľ DGGV 0DZKLQQH\ Of course, the market has suffered at the hands of the global economic slowdown and RLI asked Hill what effect this has had on ISG; has the industry received a severe blow from which it will be hard to recover? “As I said earlier, the high street has been slow but is gaining in pace with the increase in competition. Yes, margins have been tight but we now RIIHU D EURDGHU VHUYLFH SURSRVLWLRQ Âľ he says. “All of the knowledge and expertise of working with long-term clients is fed back into the process and we work with these clients to Ă€QG ZD\V RI GRLQJ WKLQJV IDVWHU DQG PRUH HIĂ€FLHQWO\ ,I \RX DUH RSHQ WR innovation then you come to the table with an open mind you are going to get a lot more achieved which in turn DGGV YDOXH EDFN WR FOLHQWV Âľ “It is well worth pointing out too that the majority of our projects are handed over snag-free – an achievement that we are clearly very SURXG RI LQGHHG Âľ DGGV 0DZKLQQH\

“As well as the fact that, so far this year, we have worked six million man hours and not had a single UHSRUWDEOH DFFLGHQW Âľ Ultimately though, it all boils down to the people that you have working for you: “The mindset of our people is FUXFLDO Âľ VD\V +LOO ´)URP WKH RQ VLWH labourer to management, every single person is an ambassador for ISG and we invest heavily in them providing, amongst other things, with year-onyear training and our people have taken comfort in the fact that, even in these trying times, we have been able to diversify and move with WKH PDUNHW Âľ All in all, both Hill and Mawhinney DUH ORRNLQJ IRUZDUG ZLWK FRQĂ€GHQFH WR dealing with the challenges ahead in what is still very much a competitive and changing market.

Glamour and

MIKA LIIAS

WITH ITS ROOTS IN SCANDINAVIA, MAKE UP STORE IS TAKING FULL ADVANTAGE OF THE OPPORTUNITIES PRESENTED BY GLOBAL RECESSION TO ACCELERATE ITS STRATEGY FOR GROWTH. RLI TALKS TO CEO AND OWNER MIKA LIIAS TO FIND OUT MORE AND TO LEARN ABOUT THE BRAND’S PHILOSOPHY OF KNOWLEDGE AND CREATIVITY.

Excitement E

stablished in 1996 and based in Sweden, Make Up Store is a leading cosmetics brand, founded by CEO and sole owner Mika Liias. As the creative energy behind the brand, his journey to the top has been incredibly fast; less than a decade ago he VWDUWHG KLV ÀUVW HYHU 0DNH 8S 6WRUH LQ RQH RI WKH high streets of Stockholm. The aim was to create ‘a world of colours’, this created a unique concept that had not been seen on the market before. Today, Make Up Store is one of the fastestgrowing companies in Scandinavia, offering a full range of colour cosmetics and assorted and complementary products. As a young, creative and dynamic company, Make Up Store is always on the frontier of developing innovative products and launching new trends. Within its product line there is a large spectrum RI DGMXVWDEOH FRORXUV WR ÀW HYHU\RQH 7KH SURGXFWV contain rich pigmentation and are produced solely from top quality ingredients. The products have not been tested on animals, neither does the colour cosmetics contain any perfume, which makes the whole range allergy-friendly. The company currently has 175 points of sale, predominantly in Sweden, Denmark, Norway and

Finland, but it also operates in the US, the UK, the Netherlands, Australia, Singapore, Vietnam, Thailand, Costa Rica, Lithuania, Estonia and Poland, with 2-4 new stores opening every month somewhere around the world. Its outlets include concessions and shop-in-shops in department stores, and franchises. Around 80 per cent of Make Up Store outlets are operated as corporate own-stores. “We do plan to open a further 30 points of sale this year,â€? says Liias, “many of which will be concession arrangements with large department stores, including 20 in Scandinavia alone.â€? The company is also opening a new outlet in Denver, Colorado in the US and is looking very closely at opportunities in New York City and California; there are new stores planned in Thailand, Poland and Lithuania, and a number of counters scheduled to open within the Australian department store, Myer. “Of course, the US is very a exciting prospect,â€? continues Liias. “It is obviously a very strong cosmetics market highly competitive, whilst Asia remains full of opportunity for our brand. Europe too is very exciting at the moment and we are very close to opening new stores in both Germany and Spain.â€? Whilst it is true that the global economy has made trading in the retail HQYLURQPHQW D OLWWOH PRUH GLIĂ€FXOW Make Up Store has found itself in a very fortunate position. “We have found that the weaker the economy, the more opportunities present themselves,â€? Liias explains. “There have been many more properties available at more competitive prices, so our expansion has in fact remained the same during the recession!â€? So the company is in fact performing very well in the face of the global economic slowdown? “Yes, you could certainly say that; there were a few tough months towards the end of 2008, but since that time things have improved and we really haven’t been too badly affected. If anything, it has provided us with the RSSRUWXQLW\ WR Ă€QG QHZ VWRUHV DQG QHZ locations, and to move fast to increase our market share,â€? he adds. The brand’s growth has been most noticeable in markets in which the brand already has a strong local presence, such as Denmark, though expansion is also on a roll in the UK, where the company is planning on rolling out more franchises and own stores in some of the bigger cities.

“The UK is a very exciting market and it has been a wonderful opportunity for us to work in London, one of the truly ‘global’ cities,â€? says Liias. “Carnaby Street is of course a fantastic location, with the area’s history and heritage, and the store is in a prime, high-visibility corner situation – just perfect. The Heiligeweg store in Amsterdam is also very special for us; this is such an amazing and innovative market, and there is a lot of interest, lots of tourists and fantastic exposure.â€? Of course the company is, to a certain extent, opportunity-led: “When ZH Ă€QG D JRRG SURVSHFW ZH FDQ usually move quite fast to take things forward – we are certainly not afraid to take chances,â€? he says. Make Up Store’s core customers are women between 20-35 years, but in recent years it has seen a growth in its male footfall, perhaps not purchasing cosmetics but a lot more interested in grooming and skin care products. 7KHUH KDV DOVR EHHQ D VLJQLĂ€FDQW ULVH in teenage customers, especially in Scandinavia, who are very fond of the brand, which is perceived as very cool, fun and up-and-coming. “Our strongest point, and our key value, has always been the product of course, but we have also accumulated a lot of knowledge,â€? says Liias. “We are really very fussy about our staff being well trained, taking good care of our customers and sharing their knowledge. “Every time that you come into a Make Up Store, we want it to be an experience and for us it is very important that every customer gets just that; we have a different campaign every month [recent themes include vampires (‘Whisper’), weddings (‘I Do’) and air stewardesses (‘Stewardess’)] and we focus on achieving a new look, re-dressing the store each time, highlighting new products and giving a fresh feel every time the customer visits, and above all to instil a sense of fun, innovation and creativity!â€?

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 25

The Inner Customer Sean Kelly, MD of PR company PR4Property, has been a longtime observer of the retail property market and has also written about travel, media and customer service sectors. In his column for RLI he spotlights global places, people, events, shops, items and activities that amaze, amuse, inspire and inflame his ‘inner customer’.

Surrey and Hampshire, England, Uppal has an ethos that puts customer relations and service at the forefront of his thinking. APNAC? It stands for ‘A Pleasure Never A Chore’. I love it.

One survey you don’t want to top: Prof -RVKXD %DPÀHOG 'LUHFWRU DW WKH &HQWUH for Retail Research, and his team are just starting to crunch the numbers for the 2010 Global Retail Theft Barometer which is due out in mid-October. The 2009 charttopper was India with a shrinkage rate as a percentage of retail sails of 3.2 per cent, Morocco in second with a 1.79 per cent rate and Mexico in third with 1.75 per cent. Of the 41 countries surveyed Taiwan had the lowest rate of only 0.89 per cent.

Michael Green and his BCSC team pulled off another great Purple Apples marketing awards night in London during May. They have the event location (The Brewery, London) and the awards format (no victory speeches and a promised (and delivered) Ă€QLVK WLPH DQG SUHVHQWHU ² WKH KLJKO\ FDSDEOH &ODXGLD :LQNOHPDQ ² SHUIHFWHG

Get to know Sanj Uppal. He’s the go-getting ERVV RI %ULWLVK EDVHG $31$& ² D FRPSDQ\ that certainly makes my Top-10 Best Named companies list. A franchisee for Pizza Hut with several delivery-restaurants around

While most of us would book a plane or train to Paris not, it seems, Richard Cable. The Head of UK Projects for Lend Lease is riding his bike. Thankfully it’s not some bizarre corporate austerity travel measure. Cable and his son, Jack, will be two-wheeling the circa-320 mile journey as a fundraiser for Macmillan Cancer Support. Good luck Cable guys.

BTW ² XQOLNH P\ KHIW\ VHOI WKH GLHW FRQVFLRXV Green will not be leaving potholes on London’s streets when he pounds 10k of them for charity in July. Go Michael! ‘Save Tonight’ the catchy song by Eagle-Eye Cherry (left, brother of Neneh) was recorded in 1997 but it remains high on the hit list in my head. The still-clever accompanying video (check YouTube) was Ă€OPHG RQ D VKRSSLQJ VWUHHW of SkĂĽnegatan by Nytorget Square in central Stockholm. “A lot of the shops still exist, but the little food shop which is featured in the video isn’t there any longer, Ingrid Rudefors, Film Commissioner for Stockholm tells me. “And there are several new bars and restaurants right there. This is a neighbourhood that has become very hot during the 2000s and it is actually called SoFo after ‘South of Folkungagatan’.â€? A new American invasion Forever 21 expanding from its European invasion beachhead at Bullring, Birmingham and is heading next to Jervis Street, Dublin. US Electrical retailing giant Best Buy has also plugged into the UK with it

26 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

Ă€UVW VWRUH QRZ RSHQ DW /DNHVLGH ZLWK WKUHH more stores planned). And now Taco Bell is also coming to Lakeside. How soon before the likes of Gap’s Old Navy and WilliamsSonoma’s Bed & Bath and other big name retailers and food operators rock up? I’ve got my eye on -- Smashburger. 7KH 86 FRPSDQ\ XVHV )UHVK ² QHYHU )UR]HQ - angus beef. They are expanding in the US and have apparently targeted 1,6002,200sq ft locations with a minimum of 16 car park spaces for an average $8 customer VSHQG ,W¡V VPDVK HYHU\WKLQJ ² VPDVKIULHV smashchicken, etc. Smashburger is opening units from San Diego to New Jersey and is looking to come overseas. The management team (HQ is Denver, Colorado), has a bit of industry pedigree with founder Tom Ryan, formerly Chief Marketing 2IĂ€FHU DQG %UDQGLQJ 2IĂ€FHU DW 4XL]QRV DQG DOVR :RUOGZLGH &KLHI &RQFHSW RIĂ€FHU IRU McDonalds. Given that my beloved In-n-Out Burger doesn’t seem to want to move beyond its West Coast territory, I’m holding out hopes. And I’ll have a side order: One of the advisors to Smashburger is cable TV operator Liberty Global’s President & CEO Mike Fries. I’ll drink to that Dart’s Farm is the increasingly popular West Country upmarket farm shop near Exeter in Devon with a butcher’s shop that everyone should see. Darts could have just held the normal ‘pub crawl’ to the Otter Brewery for the members of its popular Food Club. But they are an upmarket trader so it was an ‘Ale Safari’. That sounds so much more exciting! Total Loyalty Does Apple really have a security force named the Worldwide Loyalty Team? Mac users - how soon will they be showing up at your door because you dared to even glance at a Dell computer? Am adoring the M&S Gift cards. The Dressing Table Gift Card (pictured) is very cool and tactile. Interestingly, M&S have come out with a very American-ish ‘Thank You Teacher’ gift card. How many teachers are getting those?

Welcome to the RLI designers’ web guide, where the very best design specialists take the opportunity to present their on-line services to retailers and leisure operators, both nationally and internationally Aedas is an international architectural practice fusing global design quality with local delivery. We provide architectural, design, property and surveying services for infrastructure, sports, cultural, mixed-use, residential, commercial, retail, masterplanning and educational facilities throughout Asia, the Middle East, Europe and the Americas.

www.aedas.com

www.architecturehq.com

Broadway Malyan is an international practice of architects, urbanists and designers. Founded in 1958, we have WKLUWHHQ RIĂ€FHV WKURXJKRXW WKH UK, Europe, the Middle East and Asia. Our geographical spread allows us to serve our clients with international standards of skill and experience combined with proven local knowledge.

International award-winning Architects, Designers and Masterplanners, Benoy builds on the philosophy that creativity and viability are not mutually exclusive, and are acknowledged for combining contemporary design with consistency and deliverability.

www.benoy.com

www.broadwaymalyan.com Design International is a globally-based boutique GHVLJQ ÀUP 2XU RIÀFHV LQ London, Milan, Cairo, Abu Dhabi, Mumbai,Jakarta and 7RURQWR DUH LQWHUQDWLRQDOO\ recognized for their award winning Architectural designs of mixed-use, retail and hospitality developments.

Development Design Group Inc. is an internationally renowned planning, architecture, graphics and design company unique in its ability to deliver dynamic, extraordinary solutions to place-making in cities, towns and suburbs around the world.

www.ddg-usa.com Haskoll are London based award winning and leading international design-led architects specialising in shopping centre, mixed use, leisure and urban design. 7KH FUHDWLYH DQG H[SHULHQFHG team of architects and designers deliver a comprehensive and viable design and consultancy service to a wide range of premier clients across many European countries.

Architecture HQ is a multidisciplined architectural practice, we aim to deliver our clients excellence in design, pride of place and building that creates solutions, optimises long term value and DFKLHYHV ÀQDQFLDO VXFFHVV 7KLV comprehensive approach allows Architecture HQ to create the best possible solutions for our FOLHQW DQG WKH FOLHQW EHQHÀWV IURP the shared knowledge across disciplines, across markets and across oceans.

www.haskoll.co.uk

Established in the UK in 1894 L&H have an enviable record for designed excellence in the retail and leisure markets. We work across the world on master-planning, mixeduse shopping centres, hotels and individual retail brands. We design award winning projects....we deliver them.

www.designinternational.com One of the foremost retail and leisure architects and interior designers in the UK – we are an award-winning practice with international expertise. Currently working on Europe’s largest shopping centre and over 40 hotels. We specialise in regeneration and delivery of new build schemes, as well as refurbishment, modernisation and roll out programmes.

www.lrw.co.uk

Zachary Design are UK-based leading international retail designers who master-plan, design DQG EUDQG PDOOV VWRUHV DQG RIĂ€FH buildings in Europe, Asia and the Middle East.

www.lewishickey.com

www.zacharydesign.com

RLI MIXES THINGS UP AGAIN AS THE EVER-POPULAR NETWORKING EVENT ADDS SPICE TO THE RETAIL AND LEISURE SECTOR. May’s edition of the RLI Mix was a spicy affair, held at Monty’s Tandoori Restaurant on Ealing Broadway in London. Guests enjoyed the full Ă DYRXU RI WKH VXE FRQWLQHQW DV WKH\ PLQJOHG DQG QHWZRUNHG DPRQJVW ROG IULHQGV LQGXVWU\ FROOHDJXHV DQG QHZ DFTXDLQWDQFHV DPLGVW WKH 5/, 0L[¡V QRZ IDPRXV LQIRUPDO DWPRVSKHUH 6SRQVRUHG E\ 0RQW\¡V 7DQGRRUL 5HVWDXUDQW WKH UHWDLO DQG OHLVXUH LQGXVWU\¡V SUHPLHU EL PRQWKO\ QHWZRUNLQJ HYHQW SURYHG \HW DJDLQ WR EH D KXJH GUDZ DWWUDFWLQJ RYHU DWWHQGHHV ² DOO HQMR\LQJ WKH ZRQGHUIXO DPELHQFH Ă€QH IRRG DQG EHYHUDJHV ´, DP GHOLJKWHG WR KRVW WKLV PRQWK¡V RLI Mix,â€? said Monty Shrestha of Monty’s Tandoori Restaurant. “It is wonderful to ZHOFRPH VR PDQ\ SHRSOH IURP RXU LQGXVWU\ and what a fantastic opportunity to network LQ DQ LQIRUPDO DQG HDV\ PDQQHU Âľ “Once again, it is heartening to see so

PDQ\ IDFHV KHUH WRGD\ Âľ FRPPHQWHG -D\QH 5DIWHU 3XEOLVKHU RI 5/, ´:LWK FRQĂ€GHQFH UHWXUQLQJ WR WKH PDUNHWSODFH DQG QHZ RSSRUWXQLWLHV SUHVHQWLQJ WKHPVHOYHV ERWK LQ WKH 8. DQG WKH ZLGHU LQWHUQDWLRQDO PDUNHW LV PRUH LPSRUWDQW WKDQ HYHU WR PDNH WKH right connections, discuss and GHEDWH DQG WR get those deals RQ WKH WDEOH 7KH RLI Mix is the SHUIHFW IRUXP WR facilitate those connections.â€? The RLI Mix, which is hosted E\ -D\QH 5DIWHU and The Mix, a PXOWL GLVFLSOLQDU\ consultancy led E\ $XGUD /DPRRQ 7HUU\ &ROH DQG 6WHYH Edge, would like to sincerely thank its Sponsor, Monty’s Tandoori Restaurant, for its hospitality and support. The next RLI Mix will be sponsored by Design Clarity and held on 30th September in London – venue to be announced.

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FIT-OUT WEB GALLERY Welcome to the RLI shopfitters’ web guide, where the very best fit-out specialists take the opportunity to present their on-line services to retailers and leisure operators, both nationally and internationally

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RETAIL

Channelling success Multi-channel retailing demands end-to-end integration says Sam Jackson, Chief Executive of fashion business systems provider, Prologic

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ulti-channel retailing is increasing dramatically but far too many organisations are constrained by a lack of channel integration throughout the supply chain. Ring-fencing goods for each channel within the warehouse QRW RQO\ DGGV FRVW DQG UHGXFHV HIĂ€FLHQF\ EXW is also creating massive delays in reallocating stock between channels to maximise sales. The result is actually more wasted goods and mark-downs than in the past. As high street sales begin to decline, many organisations are looking to expand their investments in e-commerce, wholesale and international markets. As this model gains maturity, there is growing recognition that a successful multi-channel business demands an integrated approach. Retailers are making

great strides in delivering a consistent, coherent service across every channel, allowing customers to buy online and collect or return in store and collecting customer information across every interaction. However, retailers are still struggling to maximise cross-business sales due to inadequate warehouse processes and a lack of stock visibility across the business. The majority of organisations are, today, forced to physically ring-fence stock in the warehouse for each channel due to the constraints of their warehouse management and stock replenishment systems. This is adding complexity, demanding additional ZDUHKRXVH VSDFH DQG VLJQLĂ€FDQWO\ LQFUHDVLQJ the time and resources required to undertake a stock-check. Far more critically, by creating separate stock holdings for each channel, retailers are effectively running several separate businesses: they are failing to gain the HFRQRPLHV RI VFDOH DQG HIĂ€FLHQF\ WKDW should be delivered by multi-channel retailing and they are unable to reallocate stock to another channel to maximise sales. With the increasing economic pressure, retailers need to grasp every sales opportunity. And that means responding to the clear differences in sales activity across each channel. If sales of certain lines are higher via the e-commerce channel than in the high street, it is essential to reallocate stock to that channel as fast as possible to capitalise on demand. This inability to maximise stock is at odds with retailer strategies to improve warehouse processes to drive far more HIĂ€FLHQW UHSOHQLVKPHQW SURFHVVHV DQG reduce operational costs. Investments in Automated Data Capture (ADC) technology integrated with the core replenishment V\VWHP KDYH HQDEOHG D VLJQLĂ€FDQW UHGXFWLRQ in picking time, reduced costs and provided a TXDQWLĂ€DEOH LPSURYHPHQW LQ VWRFN DYDLODELOLW\ Furthermore, some retailers are also offering suppliers access to a ‘supplier portal’ where they can update the retailer on the state of an order and its delivery status. This real time information enables the warehouse to be prepared for any new deliveries, thus minimising the shrinkage problems and additional overtime costs that often result from multiple, unexpected deliveries. A successful multi-channel strategy requires integrated business processes at every part of the supply chain. Using a system that is based on one central source of information, stock can be held centrally in

30 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

the warehouse and still be nominated for a VSHFLÀF FKDQQHO Taking this approach, there is no need for separate stock holdings in the warehouse. The result is better warehouse management, removing the multi-channel problem of multiple, half-full bins of the same product OLQH ,QVWHDG VWRUDJH HIÀFLHQF\ ZLOO EH increased and organisations will be able to reduce the amount of warehouse space required. For those still looking to expand their multi-channel strategies, this consolidated approach will enable cost effective business expansion without UHTXLULQJ VLJQLÀFDQW DGGLWLRQDO VSDFH or overhead. Critically, stock can be reallocated in real time between channels to meet demand. In addition to maximising sales, retailers FDQ JDLQ FOHDU ÀQDQFLDO EHQHÀWV IURP improved visibility of stock information and slicker warehouse processes. With fewer bins, the daily stock check activity is VLJQLÀFDQWO\ UHGXFHG SURYLGLQJ D NQRFN RQ HIIHFW RQ FRVWV DQG VWDIÀQJ UHTXLUHPHQWV With a single integrated approach and with all the information coming from one central source, merchandisers can get visibility of stock by channel from a very early stage in the delivery process and can ensure these stock levels can be managed prior to any stock arriving at the warehouse. This will allow stock to be available for sale to the correct channel immediately the stock is booked in. Putting the customer experience at the heart of the multi-channel strategy is obviously an essential strategy for any retailer. But failing to back up that policy with effective, real time supply chain processes will not only add untenable cost in the current market but will also undermine the quality of that customer experience. Allowing stock and warehouse management systems to constrain the à H[LELOLW\ RI UHSOHQLVKPHQW VWUDWHJLHV across every channel will have a seriously detrimental effect on business success. By leveraging a single source of stock information to improve warehouse processes, retailers can achieve a far PRUH HIÀFLHQW XVH RI VWRFN UHVSRQG immediately to trends in demand across each channel and, critically, reduce the volume of goods that are marked-down at the end of the season. It is only by addressing business processes throughout the supply chain, from supplier through to customer purchase that UHWDLOHUV ZLOO JDLQ WKH ÀQDQFLDO EHQHÀWV RI fully integrated multi-channel retailing.

Welcome to the Global Services Gallery, where the very best international & retail leisure specialists take the opportunity to present their on-line services to retailers and leisure operators around the globe. DEVELOPER

ARCHITECT

ALDAR Properties PJSC: operating at the forefront of the real estate, development and investment industry in the UAE and the region, developing and constructing a portfolio of unique, impressive, spectacular and prestigious developments.

With around 420 employees, ATP Architects and Engineers is one of the largest LQWHJUDWHG GHVLJQ RIÀFHV LQ Europe, located in Innsbruck, Vienna, Munich, Frankfurt, Budapest, Zagreb and Zurich. The company specialises in complex building projects LQ WKH ÀHOGV RI UHWDLO RIÀFHV tourism, health, production and logistics.

www.aldar.com DEVELOPER

www.atp.ag

PROPERTY

Capital Shopping Centres (CSC) is the leading company in the United Kingdom specialising in the ownership, management and development of shopping centres. The company has a ÂŁ4.4 billion portfolio of fourteen high quality shopping centres, totalling over 12.9 million sq ft.

www.capital-shopping-centres.co.uk

Drawing upon extensive industry experience, GPL Retail Development Solutions offers a comprehensive outsource solution for managing retail store expansion, providing seamless support to management and serving as a liaison with all constituents involved in the process.

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FESTIVE LIGHTING

DEVELOPER

MK Illumination designs, manufactures and markets festive and decorative LED lighting concepts for shopping centres. We are a local company on a global scale operating from seventeen national markets – this makes us reactive and quick as well as proactive and visionary.

Old Mutual Investment Group: Property Investments’ main business is to provide innovative real estate investment products that deliver reliable, predictable and growing income streams. These products provide investors with access to the most prestigious commercial properties in South Africa either directly, via market linked policies RI LQVXUDQFH RU YLD VSHFLÀF ÀQDQFLDO instruments.

www.mk-shoppingcenter.com RMUs

DEVELOPER

sddRETAIL design, develop and manufacture innovative retail solutions using the latest technology and insights. Our unrivalled expertise in this arena since 1990 has seen us create award-winning installations that have made outstanding impacts in shopping locations around the world.

Sonae Sierra is the international shopping centre specialist. We own and manage numerous shopping centres in Europe and Brazil. We also have a number of new centres in development, with more in the pipeline. This strategy allowed us to develop a recognized unique know-how which we use for our shopping centres, as well as third-parties projects and operating shopping centres.

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FESTIVE LIGHTING

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First Christmas, produce and market festive and decorative lighting, creating Christmas Worlds for shopping centres, retail outlets, airports, railway stations, hotels, advertising groups and municipalities. We generate tailored solutions to meet our clients needs on a global scale - no standard concepts or run-of-themill decorations.

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JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 33

LEISURE

Room for improvement After Dubai’s dramatic start to 2010, what does the future hold for the hotel industry in the Middle East and North Africa? David Sanson, Partner, Hospitality & Leisure Group at DLA Piper, takes a look at the marketplace.

T

he 2010 Arabian Hotel Investment Conference held in Dubai in May was packed with seemingly optimistic Middle East and North Africa’s hospitality industry leaders. When asked, most were extremely bullish about the coming year and the opportunities it held for them. In a report into the Middle Eastern and North African hotel sector commissioned by international legal practice DLA Piper, which was released at the conference in Dubai, it has been revealed that, in the wake of the

global recession, the majority of the region’s hoteliers were seeking wider investment and development opportunities including joint YHQWXUH RSSRUWXQLWLHV 7KLV IROORZV D GLIÀFXOW year, when average room rates in the region were discounted by up to 60 per cent. Tourism has acted as a driver for economic growth in the region over the last decade. This gave rise to an initial resilience in the region to the global economic downturn, although there was clear evidence of its impact in 2009 with room rates having EHHQ KLW KDUGHVW E\ WKH ÀQDQFLDO FULVLV Statistics now show that discounts during 2009 were as much as between 40-60 per FHQW 7KLV FOHDUO\ KDG D VLJQLÀFDQW LPSDFW on the sector. However, commentators have suggested that the downturn in the region is likely to be relatively short lived, particularly as a result of continued investment by governments and private investors in the region. Other fundamentals that could have a positive impact on the Middle East market over those of European countries and the US could be linked to the region’s geographical positioning. Its location between Europe and Asia gives it a competitive advantage when it comes to attracting travellers, appealing to a wide variety of visitors – both holiday makers and business travellers. Looking forward to the next three years hospitality industry leaders across the MENA region are overwhelmingly positive, particularly in terms of increased investment opportunities. While it is anticipated that the European hospitality sector will look towards China and India as areas for growth, the MENA hotel sector is looking at the Middle East itself, the UK, North Africa, Southern Africa, Germany and France as real hotspots for business growth.

32 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

In a survey of the region’s hoteliers 91 per cent predicted that large hotel chains would increase their market share in 2010, with 63 per cent asserting that the budget and mid-market sectors represented the most attractive opportunity for investors. Although the sector is seemingly optimistic about its recovery the majority of those in the sector are predicting that sustained recovery is unlikely before the end of 2012. It is extremely interesting that, as the MENA hospitality sector enters the early stages of an upturn, there is a keen and strong interest in exploring the opportunities on offer through potential joint ventures. Opportunistic investors will be keen to capitalise on the variety of growth options that joint ventures pose; access to greater capital, capacity, expertise and general reach. They are also a way of sharing risks with a venture partner, which a cautious investor will appreciate which is potentially sensible given the likely delay in full recovery. When looking to the future there is another interesting element highlighted in the survey and report. The economy DQG PLG PDUNHW VHFWRUV ZHUH LGHQWLÀHG DV representing the most attractive opportunity for investors. As a result of the recent downturn the Middle East and North African tourism industry has recognised that in order to attract more tourists to the regions, hotel operators in particular will need to diversify their offerings to appeal to a wider type of traveller. The United Arab Emirates has set an ambitious target of attracting 15 million tourists a year by 2015 but many fear that PDLQWDLQLQJ VXFK ÀJXUHV LQ WKLV FOLPDWH will be increasingly hard unless further consideration is given to offerings in the budget and mid-market sectors. This will certainly be quite a change in approach especially as Dubai in particular has been very well known and a high end, glamorous holiday destination with numerous luxury ÀYH VWDU KRWHOV RQ RIIHU One thing is apparent for the sector and the region - the road ahead will remain bumpy for the short to medium term and there are likely to be further changes to the hospitality landscape in the region. Continuous assessment of business plans should remain a top priority for hoteliers in order to identify and capitalise on potential opportunities that the current market has to offer. Surviving, adapting and overcoming WKH GLIÀFXOWLHV SUHVHQWHG E\ WKH JOREDO recession are key watchwords for 2010.

Roy Higgs, Chief Executive Officer of Development Design Group, and Senior Partners Jim Baeck, Jim Andreone and Guillermo Lopez discuss the potential (and pitfalls) of stadium- and arena-based mixed-use design and development.

SOCCER CITY, JOHANNESBURG, SOUTH AFRICA

THE IMAGES USED WITHIN THIS ARTICLE DO NOT SOLELY REPRESENT THE PORTFOLIO OF DDG BUT ILLUSTRATE THE FINE WORK BEING CARRIED OUT BY MANY COMPANIES ACROSS THE SECTOR.

A

s increasingly elaborate sports and entertainment components continue to make inroads into innovative mixed-use design, perhaps the most recognizable sports icons — grand stadiums and arenas — have so far been noticeably underrepresented. Two of the most successful and recognizable stadiums in the world are the O2 Arena in London and the O2 World in Berlin, and while both venues feature larger dining and entertainment components, true retail is conspicuously DEVHQW 7KH VDPH LV WUXH IRU RWKHU KLJK SURÀOH arenas such as the Staples Center in Los Angeles, where the recently-completed LA Live entertainment complex brings a wide range of restaurant, hospitality and entertainment options, but again no retail. Things are beginning to change, however. While stadiums and arenas have traditionally not been a central part of true mixed-use development, some of the leading developers and design architects in the world are beginning to make headway successfully integrating these spectacular venues into

award-winning mixed-use designs. Pioneering projects are coming online — with still more in the pipeline — that combine very strong retail along with hospitality, entertainment and food and beverage components that are not only adjacent to stadiums and arenas, but functionally and thematically connected in a way that elevates all elements of the projects. When executed skilfully, such projects can unlock the untapped potential of this format and promise to make stadium- and arena-centred mixed-use design a compelling development model in the very near future.

Exciting potential

Developers and design architects who are successfully integrating arenas and specialized sports facilities into mixeduse design do so because they recognize and embrace the central place of sports, games and recreation in our culture, and understand their ability to create and animate

34 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

PHOTOS REPRODUCED COURTESY OF CHRIS GASCOIGNE

great spaces. Stadium- and arena-centred developments have the potential to exert a profound and transformative effect on not just a project, but a region. This is particularly true in the US, considering the numerous minor league venues and college stadiums. By thinking big and reimagining the intersection of sports, retail and entertainment, it possible to create a place that transcends its individual components to become something more: a social, cultural, business, sports and entertainment landmark. Alpella Youth City, featuring the Ülker Arena, is a $250M effort that is both a state-of-theDUW VSRUWV DQG OHLVXUH IDFLOLW\ DQG D GHÀQLQJ new retail and entertainment destination

for the city of Istanbul, Turkey. Developed by the Istanbul-based Ăœlker Group, the project simultaneously provides a new home for a popular local professional Fenerbahçe sports club and basketball team while offering up an exciting new interpretation of a communityfocused retail and mixed-use destination. The centre overlooks a dynamic open-air events plaza, a grand oval-shaped space that can accommodate game-day crowds as well as function as a stand-alone dining and entertainment attraction. Terraced dining and cafĂŠs overlook the plaza, which is complimented and animated by large-scale interactive media elements that stream a mix of live game video, advertising and branding opportunities. All told, the Alpella Youth City design includes more than 25,000sq m of leasable retail and entertainment space, an 8,500sq m, 240-key branded hotel and a VWRU\ VT P RIĂ€FHU WRZHU As traditional notions of design and development give way to new and exhilarating ideas about what constitutes leisure, fresh and engaging sports-oriented attractions KDYH WKH SRWHQWLDO WR UHGHĂ€QH RXU SXEOLF spaces. More and more elegant, dynamic and innovative sports- and arena-based designs recognize and acknowledge that fun is not merely a venue — it is an experience. The spontaneous energy and thrilling real-time drama of the sports arena contributes vital and transformative ingredients to the public arena. Sporting events are, by their very nature, interactive, communal and celebratory.

ALPELLA YOUTH CITY, ISTANBUL,TURKEY

Together with great retail and dining options, arenas and inspired sports-andactivity-themed development constitutes a true mixed-use landscape that allows fans and visitors to shape their experiences in memorable ways. And when visitors are making memories, retail and mixed-use tenants are making money.

Significant challenges

For all of its potential, factoring grand sports and entertainment venues into the mixeduse equation is not easy. Incorporating viable retail, dining and entertainment options into an arena-based project involves resolving a host of demanding

complexities, unique challenges and thorny contradictions. An arena brings a number of new and sometimes formidable planning, design, architectural, programming and functionality considerations that must be taken into account if the project is to be executed successfully. First and foremost, stadiums and arenas require space. Space for masses of people who will be arriving at the same time; and space for the sophisticated road network, abundant parking facilities and expanded infrastructure that a stadium or arena requires to operate successfully. The inherent contradiction between the intimacy and human-scale elements of street-side mixeduse design and the grand structures and spaces of stadiums and arenas presents just one stumbling block. Madison Square Garden in New York City provides one hint as to how this contradiction might be reconciled. While not every arena has the luxury of being located atop New York City’s famous metro

AVIVA STADIUM, DUBLIN, EIRE PHOTO REPRODUCED COURTESY OF CHRIS GASCOIGNE

WESTFIELD STRATFORD CITY

LONDON’S 2012 OLYMPIC PARK, STRATFORD, UK

NELSON MANDELA BAY STADIUM, PORT ELIZABETH, SOUTH AFRICA

components, not only exudes a contemporary energy and vitality that complements a stadium, but also provides the kind of retail, GLQLQJ DQG KRVSLWDOLW\ RSWLRQV WKDW GULYH WUDIĂ€F and extend visits. From state-of-art facilities, appealing retail destinations, and alluring dining options, to dynamic open-air events plazas that can comfortably accommodate game-day and concert-day crowds, the best of these developments feature large-scale interactive media elements and provide

PHOTO REPRODUCED COURTESY OF POPULOUS

in New York — designed to capture the same energetic motion of a vibrant commercial and entertainment hub. While the town centre, NHL arena, NFL stadium and Events Plaza constitute the initial phase of development, future plans incorporate hotels, town homes, RIĂ€FH DQG UHVLGHQWLDO ORIWV D UHJLRQDO destination retail centre, and over 186,000sq P RI &ODVV $ PLG ULVH RIĂ€FH VSDFH PDNLQJ Westgate a true ‘city within a city’.

Design with a purpose As all of these projects demonstrate so clearly, sports and entertainment DUHQDV FDQ FRQWULEXWH D GHÀQLQJ portion of a project’s energy and identity. In return, a thoughtfully and elegantly designed high-density mixed-use district, complete with spectacular signage, dramatic lighting and bold architectural media

TARGET FIELD, MINNEAPOLIS, US

PHOTO REPRODUCED COURTESY OF CHRISTINE RADECIC

abundant opportunities for advertising and branding opportunities. The promotional aspect of stadium and arena uses integrated into mixed-use SURMHFWV LV H[WUHPHO\ VLJQLÀFDQW &RRUGLQDWHG advertising and branding opportunities DUH SRWHQWLDOO\ HQRUPRXV DQG ÀQDQFLDOO\ successful arena projects should work closely with arena management to take full advantage of the marketing and promotional synergies available both for the stadium and for the surrounding retail and mixed-use. When done right, stadium- and arenabased mixed-use projects can bring together a diverse blend of uses and create an entirely new category of development: a destination that is both a state-of-the-art sports and OHLVXUH IDFLOLW\ DQG D GHÀQLQJ QHZ UHWDLO DQG entertainment destination. The result is sports and entertainment and mixed-use development synergy at its best.

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 37

system, locating parking decks and garages below stadiums and arena is an idea whose time has come. While linking open entertainment plazas and shopping districts with pedestrian corridors is one way to balance New Urbanist ideals with grand and spectacular arena environments, striking a balance between accessibility and intimacy requires more than just some architectural acumen and urban planning sleight of hand. The best new stadium- and arena-based mixed-use SURMHFWV ZLOO ORRN WR EXLOG à H[LEOH YHQXHV capable of hosting a wide variety of events. Big games and headline music concerts are huge revenue generators, but what happens when big events are not on the schedule? Venues capable of adapting to comfortably KRVW GLIIHUHQW VL]HG FURZGV DUH D JRRG ÀW IRU mixed-use projects. Separate upper and lower bowls and arenas designed to be cordoned RII RU UHFRQÀJXUHG WR KRVW VPDOOHU PXVLF performances or other unique events are among the design solutions. In addition to DFFRPPRGDWLQJ FUHDWLYH DQG à H[LEOH VHDWLQJ

DUBAI SPORTS CITY, UAE

DURBAN STADIUM, SOUTH AFRICA

arrangements and stage locations, some stadium designers and mixed-use developers may choose to build a smaller adjacent ‘practice’ arena to help increase bookings and SURYLGH PD[LPXP VFKHGXOLQJ Ă H[LELOLW\ The result of this newfound attention to VFKHGXOLQJ GHWDLO DQG XVDJH Ă H[LELOLW\ LV WKDW operators at some of the more successful new stadium projects are setting – and reaching – ambitious new goals for facility usage; upwards of 300 days out of the year in some cases. 7RGD\ HQHUJ\ HIĂ€FLHQF\ PXVW DOVR EH factored into the equation. Balancing spectacular sound and lighting with energy HIĂ€FLHQF\ VWDQGDUGV DQG HQYLURQPHQWDOO\ friendly ideas is not always easy, and compromises and creative solutions are oftentimes a prerequisite to successful implementation. Even the world’s most ambitious projects are joining the green movement. As the recent economic slowdown has demonstrated all too clearly, projects that can present a robust and resilient mix of uses are positioned to maintain a high level RI FRPPXQLW\ LQWHUHVW DQG GULYH WUDIĂ€F HYHQ when consumer spending lags. The arena as an anchor component of a project functions

DV DQ H[WUD GUDZ DQG SURYLGHV D GHĂ€QLQJ value-added appeal. The Lighthouse at Long Island, an ambitious 511,000sq m project that promises to revitalize the existing 150acre Nassau Veterans Memorial Coliseum site in New York, is one American project with an arena component that has the potential to be THE LIGHTHOUSE AT LONG ISLAND, NEW YORK, US

36 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

exactly that kind of difference-maker. Scheduled to come online in late 2011, The Lighthouse combines an infusion of contemporary energy and vitality with the resources and 24/7 ambience of a fullyrealised mixed-use suburban centre. Just as with Alpella Youth City, the centre of the project is a sports anchor — a revitalized arena for the New York Islanders and New York Dragons. The arena will be surrounded by a vibrant mix of sports, retail, entertainment, residential, hospitality and lifestyle options that includes fully-realised residential neighbourhoods, abundant retail and entertainment venues, a 3,200-seat cinema, a wide range of dining options, a new sports technology centre, a multi-purpose athletic complex, one million square feet of new FODVV $ RIÀFH VSDFH VT P RI VWDWH of-the-art conference and exhibition facilities, DQG WKH ÀUVW ÀYH VWDU KRWHO RQ /RQJ ,VODQG 7KH high-density masterplan envisions the core of the central arena district as a vertically integrated, energized environment with spectacular signage, dramatic lighting and bold, almost architectural media components. Westgate Town Center in Glendale, Arizona is another example of the convergence of stadia and mixed-use. The project prominently features an Events Plaza, an open space linking the NHL hockey arena and home to the Phoenix Coyotes to a stretch of outdoor restaurants, entertainment and retail, as well as the adjacent Cardinals Stadium, home of the NFL’s Arizona Cardinals. The Events Plaza is in many ways reminiscent of Times Square

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BCSC CONFERENCE & EXHIBITION 2010 MANCHESTER CENTRAL 01- 03 NOVEMBER

BCSC urges Government to support retail property development pipeline

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ollowing June’s Budget announcement, the BCSC has urged the Government to ‘seize the moment’ and work decisively with the development industry to deliver mutually EHQHĂ€FLDO UHWDLO OHG VFKHPHV EHIRUH SODQQLQJ and CPO consents expire. Edward Cooke, Executive Director at BCSC (pictured) comments: “We welcome the *RYHUQPHQW¡V FRPPLWPHQW WR KHOS NLFN start development through the proposed FUHDWLRQ RI 5HJLRQDO *URZWK )XQGV D VLPSOLĂ€HG SODQQLQJ FRQVHQWV SURFHVV DQG D FRPPLWPHQW WR HVWDEOLVK D IUDPHZRUN RI IXUWKHU LQFHQWLYHV IRU ORFDO DXWKRULWLHV WR support economic growth. ´:H Ă€UPO\ EHOLHYH WKDW D VSHFLĂ€F 7D[ Increment Finance variant – known as the /RFDO 7D[ 5H LQYHVWPHQW 3URJUDPPH ² VKRXOG be introduced urgently. Unlike other tax increment proposals, such as Accelerated Development Zones (ADZs), we do not believe WKDW WKH LQWURGXFWLRQ RI /75,3 ZRXOG QRW require primary legislation. “Major town centre regeneration schemes VXFK DV WKH 6HYHQVWRQH LQ 6KHIĂ€HOG 7LWKHEDUQ LQ 3UHVWRQ DQG &UDZOH\¡V 7RZQ Centre North have taken years and cost millions to get to where they are in the development and community planning SURFHVV 7KHUH LV D UHDO RSSRUWXQLW\ IRU Government to seize the moment and work with the development industry to deliver on /75,3 DQG FRQVHTXHQWO\ DOO WKH HFRQRPLF DQG FRPPXQLW\ EHQHĂ€WV WKDW WKHVH VFKHPHV ZLOO inevitably bring.â€? Measures such as these are vital to LPSURYLQJ WKH HFRQRPLF KHDOWK RI WKH UHWDLO property industry, which employs over seven million people across the UK. Since the HFRQRPLF GRZQWXUQ WKH LQGXVWU\ KDV VXIIHUHG FRQVLGHUDEO\ IURP WKH ODFN RI DYDLODEOH FUHGLW WR IXQG GHYHORSPHQW 7KH VKRSSLQJ

centre pipeline currently stands at its lowest HEE IRU PDQ\ \HDUV ZLWK RQO\ WKUHH UHWDLO developments due to open next year, and no developments currently due to open in 2012. ,W LV FULWLFDO IRU WKH JURZWK RI WKH UHWDLO VHFWRU that the hiatus in development is addressed.â€? Alistair Parker, Partner, Development and 3ODQQLQJ DW &XVKPDQ :DNHĂ€HOG DGGV ´7,) LV D VLPSOH REYLRXV DQG ZRUNDEOH solution to the pressing renewal need in PDQ\ RI RXU WRZQ DQG FLW\ FHQWUHV 7KH /75,3 IRUPDW UHTXLUHV QR QHZ WD[ GRHV QRW GLVSODFH any existing tax revenue and doesn’t involve RII EDODQFH SXEOLF JXDUDQWHHV *LYHQ KRZ VXFFHVVIXOO\ LW KDV EHHQ XVHG LQ WKH 86$ surely now is the time to trial it in the UK.â€? Cooke concludes: “As well as measures to boost investment and development, we would have liked Government to take DFWLRQ WR DGGUHVV WKH LPSDFW RI WKH SUHYLRXV DGPLQLVWUDWLRQ¡V WD[ RQ HPSW\ SURSHUW\ 7KLV policy was publically lambasted by senior Liberal Democrat and Conservative politicians whilst in opposition and we will continue to XUJH DFWLRQ WR UH LQWURGXFH HPSW\ SURSHUW\ UDWH UHOLHI IRU DOO UHWDLO SURSHUWLHV Âľ

Government must not ignore stalling retail development warns BCSC

7KH UHWDLO SURSHUW\ LQGXVWU\ ZHOFRPHG the legislative programme set out in the Queen’s speech in May, but warned the new coalition Government that work needs to be GRQH WR VDIHJXDUG WKH EHQHĂ€WV RI UHWDLO OHG regeneration in towns and cities. (GZDUG &RRNH ([HFXWLYH 'LUHFWRU RI WKH %&6& FRPPHQWV ´:H UHPDLQ VXSSRUWLYH RI

00 RETAIL & LEISURE INTERNATIONAL MAY 2010

WKH SULQFLSOH RI HPSRZHULQJ ORFDO GHFLVLRQ makers to develop planning solutions appropriate to local needs. Our industry is committed to working with Government to ensure that any amendments to the planning regime are well thought through and do not VHUYH WR XQGHUPLQH WKH IXWXUH UHJHQHUDWLRQ RI RXU FRPPXQLWLHV ´7KHUH LV D ULVN WKDW SURSRVDOV VXFK DV WKLUG SDUW\ ULJKWV RI DSSHDO DQG encouraging immediate neighbours to seek UHFRPSHQVH IURP GHYHORSHUV PD\ HQDEOH XQUHSUHVHQWDWLYH JURXSV IURP SUHYHQWLQJ RU DW OHDVW GHOD\LQJ DQ RWKHUZLVH EHQHĂ€FLDO GHYHORSPHQW WKDW GHOLYHUV VLJQLĂ€FDQW LQYHVWPHQW DQG HQKDQFHV WKH YLWDOLW\ RI D local community. ´$W D WLPH ZKHQ PDQ\ UHWDLO OHG development projects are struggling to bridge the viability gap and plans are having to be revisited, the last thing developers need is additional costs and bureaucracy.â€? 7KH %&6& DOVR UHLWHUDWHG WKH QHHG IRU action on business rates to alleviate the cost EXUGHQ RQ RFFXSLHUV ² ZKLFK LV VWLĂ LQJ WKH UHFRYHU\ LQ PDQ\ DUHDV RI UHWDLO SURSHUW\ ´7KH UHWDLO VHFWRU FRQWULEXWHV DURXQG Â… EQ DQQXDOO\ WRZDUGV WKH 7UHDVXU\¡V WRWDO rate receipts – more than any other sector,â€? continues Cooke. “In a weak consumer PDUNHW WKLV FRVW ZLOO DIIHFW UHWDLOHUV¡ expansion plans and consequently their capacity to employ local people. “Increases in occupancy costs, coupled ZLWK UHGXFHG PDUJLQV KDYH DIIHFWHG DQG ZLOO FRQWLQXH WR DIIHFW DQ RZQHUV¡ DELOLW\ WR VHFXUH D IDLU UHQW 8OWLPDWHO\ IDOOLQJ RU VWDJQDQW UHQWV ZLOO KDYH DQ LPSDFW RQ WKH DWWUDFWLYHQHVV RI retail property as an asset class, which could lead to less investment in areas desperately LQ QHHG RI UHJHQHUDWLRQ ´:H WKHUHIRUH ZRXOG VXSSRUW FDOOV IRU D mandatory business vote on all proposals ZKHUH DQ HOHPHQW RI LWV IXQGLQJ FRPHV IURP D %XVLQHVV 5DWH 6XSSOHPHQW ´:H DOVR EHOLHYH WKDW DSSO\LQJ IXOO UDWHV WR empty retail property is no more than a tax on IDLOXUH DQG ZRXOG OLNH WR VHH WKLV Ă DZHG SROLF\ reviewed, and ultimately revoked. At the very least we would like the exemption IRU SURSHUWLHV ZLWK D UDWHDEOH YDOXH RI OHVV WKDQ Â… H[WHQGHG IRU WKH GXUDWLRQ RI this Parliament.â€? Cooke concludes: “We continue to engage with the Government’s sustainability agenda, DQG VWURQJO\ VXSSRUW WKH XVH RI EXLOGLQJ regulations to deliver energy improvements to commercial buildings. We are particularly NHHQ WR VHH WKH *RYHUQPHQW FRPPLW IXUWKHU IXQGLQJ WR WKH =HUR &DUERQ +XE WR HQVXUH WKDW LW LV DEOH WR H[WHQG LWV UHPLW WR QRQ domestic property as we move towards *RYHUQPHQW¡V WDUJHWV IRU ]HUR FDUERQ commercial buildings.â€?

at the

success centre of

2010 ICSC Solal Marketing Awards announced

Winners of the 2010 International Council of Shopping Centers European Solal Marketing Awards were announced at a special awards ceremony in Lisbon last month – part of the ICSC’s Marketing Conference. The ICSC Solal Marketing Awards showcase the best of retail marketing across Europe, recognising best practice and rewarding those with the most effective campaigns. A record 152 entries were received from shopping centres in 18 countries across Europe - more than ever before. Seven Gold Awards, 22 Silver Awards and one Special Distinction for Innovation were awarded. ICSC Jury Award Chair, Frank PĂśstges, Managing Director of CentrO Oberhausen in Germany said: “Shopping centre marketing teams have ULVHQ PDJQLĂ€FHQWO\ WR WKH FKDOOHQJH RI GHOLYHULQJ FUHDWLYH DQG HIIHFWLYH marketing campaigns within tough budgets.â€? 7KLV \HDU IRU WKH Ă€UVW WLPH WKH ,&6& 6RODO 0DUNHWLQJ $ZDUGV LQFOXGHG nine entries from shopping centres in South Africa, where developers and shopping centre management, recognising the growing prestige of these European Awards and the lack of a similar Awards programme in their country, asked to be a part of ICSC’s European Awards. In the Cause Related Marketing category, Gold Awards went to Manufaktura in Lodz, Poland, for its ‘Double Reason to Celebrate’ campaign, and 16 Steen & Strøm Centres in Denmark for their joint campaign ‘Mr Green’; Silver Awards went to Bluewater in the UK, St. Enoch Centre in Glasgow, Scotland, and SĂŠgĂŠcĂŠ Shopping Centres in Hungary. In the Public Relations category, Gold Awards went to BeylikdĂźzĂź Shopping Center in Istanbul, Turkey, for its ‘10 Days 10 Nights Underwater’ campaign; Bluewater in the UK for its ‘Bluewater Virgin Media SpeedWeek50/Jenson Button’ campaign; and La Corte Lombarda in Bellinzago Lombardo, Italy, for its ‘Fiction a Corte’ campaign. Silver Awards also went to ArmazĂŠns do Chiado in Lisbon, Portugal; Forum Istanbul in Turkey and Silesia City Center in Katowice, Poland. %UXXQ¡V *DOOHUL Ĺ°UFKXV & LQ 'HQPDUN WRRN D *ROG $ZDUG LQ WKH Consumer and Trade Advertising category, whilst Portugal’s Forum Barreiro and Meadowhall in the UK won Silver, and CascaiShopping and ArrabidaShopping in Portugal were singled out for a Special Distinction for Innovation. In the Sales Promotion category, Umlazi Mega City in South Africa was

40 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

awarded Silver for its ‘Spetheosaziwayo’ celebrity shopper campaign. Silver Awards alsom went to Antares Shopping Centre in Ankara, Turkey, for its ‘Antares Card’ campaign; Cavendish Square Shopping Centre in Cape Town, South Africa, for its ‘Celebrating the Fabulous’ campaign; and Family Shopping Center MEGA Kazan in Kazan, Russian Federation, for the camaign: ‘Alive Shop Models 2009’. In the category Grand Opening, Anniversary, Refurbishment or Extension categury, Silver Awards went to Solaris Center in Opole, Poland, for its ‘Hot Solar Opening’ campaign; Steen & Strøm Magasin in Oslo, Norway, for its ‘Next Level 7 New Floors’ campaign; Dolce Vita Tejo in Amadora, Portugal, for its Grand Opening; and Parque Comercial Parquesur in LeganĂŠs, Spain, for the ‘Parquesur 20th Anniversary Plan’. Gold Award in the Business to Business category went to Bluewater’s ‘No Comparison’ campaign, whilst Siver was awarded to ‘Under the Cloud’ from Poland’s Forum Gliwice and ‘Scherzi alle Piramidi’ from Le Piramidi in Italy. Austria’s Sillpark took Gold in the Alternative Revenue category with its ‘Kind & Co’ camaign, whilst Silver Awards went to Colombo in Lisboa, Portugal, for its ‘Aldeia da Paz’ and the Steen & Strom portfolio in Denmark, Norway and Sweden, for its Joint Centre Campaign, Mall Income. Kanyon in Istanbul, Turkey scooped a Gold Award in the New Media Category with the campaign ‘Panther Hunt@Kanyon’.

Energy is ‘third rent’ says retailer

Retail property owners and investors are ramping up asset management VWUDWHJLHV WR PDLQWDLQ VKRSSLQJ FHQWUHV SHUIRUPDQFH LQ D GLIĂ€FXOW HFRQRPLF environment across Europe, but costs continue to be a big concern for centre management and their tenants. Rent and service charges have always been an issue between landlord and tenant but managing director of retailer Douglas, Hubert Stech, now says that in some cases the high cost of energy constitute a ‘third rent’. 6SHDNLQJ DW WKH ,&6&¡V Ă€UVW 5HWDLO $VVHW 0DQDJHPHQW &RQIHUHQFH held in conjunction with the Polish Council of Shopping Centres (PRCH) in Warsaw last week, he said: “The cost of energy will dictate whether or not older, less sustainable centres, will continue to attract high calibre tenants. For us, paying for energy is like a third rent [with the service charge being the second]. We will not go into older centres where the landlord has failed to improve the centre’s sustainability and reduce energy costs – it just doesn’t make sense for us.â€? Douglas now trades in 23 countries across Europe. In Germany 37 per cent of its shops are in shopping centres, in other countries 55 per cent are in shopping centres. Also speaking at the conference Hermann Cengiz, Head of Retail Real Estate Asset Management at Commerz Real AG, who is also on the ICSC Retail Asset Management Committee, announced that ICSC is about

to undertake a service charge survey amongst European developers during the summer. “Across Europe there is no consistency in what service charges cover,â€? he said. “The survey analysing service charges across Europe is long overdue and I look forward to being able to report back in October this year.â€? Whilst asset managers acknowledge that the soaring costs of energy are increasingly burdening them and their retailers, they are looking to improve every aspect of their centre. *RQWUDQ 7KĆşULQJ ([HFXWLYH 9LFH 3UHVLGHQW RI $VVHW 0DQDJHPHQW DW SĂŠgĂŠcĂŠ, who spoke at the conference, said: “We are looking at the identity, image and positioning of all our retail assets. Where we think these are out of step, we’re changing them to attract new retailers. Nothing is sacred and we will change the sizes of the units – introducing double decker units for fashion retailers where appropriate, resize food courts – anything that research tells us will boost the appeal and footfall of a centre.â€? Patrick Delcol, country head of DTZ (Poland), Conference Chairman and President of the PRCH said: “The shopping centres which will thrive are those where there is good communication between management and tenants. Too often in the past they have been on different sides of WKH IHQFH EXW GLIĂ€FXOW WLPHV QHHG VWURQJ ZRUNLQJ UHODWLRQVKLSV DQG , XUJH retailers and shopping centre management to put aside old arguments and work together for the common good.â€? The ICSC/PRCH Retail Asset Management Conference brought together asset managers from across Europe to discuss pressing industry issues, including commercialisation, tenant mix, leases, service charges and GULYLQJ HIĂ€FLHQF\ 5HSUHVHQWDWLYH IURP GHYHORSHUV VXFK DV 7UL*UiQLW ,1* Real Estate, SĂŠgĂŠcĂŠ, Ivanhoe Cambridge and ECE Projektmanagement, UHWDLOHUV VXFK DV 'RXJODV DQG OHJDO Ă€UP /LQNODWHUV DOO VSRNH DW WKH HYHQW chaired by Patrick Delcol, who is also a Member of the ICSC European Advisory Board.

Forum briefed on environmental exchange

European retail property company Redevco, a member of ICSC, briefed the (XURSHDQ &RPPLVVLRQ DQG WKH LQà XHQWLDO 5HWDLO )RUXP LQ %UXVVHOV RQ June on sustainability initiatives currently being implemented by Redevco and retailer C&A within the European retail development sector. The Retail Forum is a multi-stakeholder platform set up in 2009 to exchange best practice on sustainability within the European retail sector. 5HWDLOHUV DUH LQ D XQLTXH SRVLWLRQ WR LQà XHQFH DQG HQFRXUDJH ERWK VXSSOLHUV and customers to adopt more sustainable practices. As the 60,000-strong global trade association of the shopping centre industry, ICSC enables its members to present the industry’s issues clearly within the European Union. The organisation also provides unique access to retail organisations and intelligence from across the world. Derk Welling – Manager Sustainability, Energy & Environment at Redevco and member of the ICSC Sustainability Working Group briefed the European &RPPLVVLRQ DQG WKH 5HWDLO )RUXP RQ WKH VLJQLÀFDQW DFKLHYHPHQWV RI WKH retail property industry over the last four years in setting and implementing new sustainability standards across Europe.

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 41

SRLVHG IRU SURJUHVV

With a sentiment of renewed optimism permeating the conference, RECon 2010, hosted by the International Council of Shopping Centers, was truly a success. From 23-25 May, the conference brought together nearly 30,000 shopping centre professionals in Las Vegas for three days of networking, deal making and educational sessions.

R

ECon is the global convention for the shopping centre industry. It provides networking, deal making and educational opportunities for retail real estate professionals from around the world. With nearly 30,000 attendees and 1,000 exhibitors it is the largest industry convention. The RECon brand now spans four regions: North America, Asia, Middle East and Latin America. “We are very pleased with conference and the turnout this year,â€? said Michel P Kercheval, President and CEO of the ICSC. “All in all, the key decision makers and industry personnel were there DQG GHDO PDNLQJ VDZ D VLJQLĂ€FDQW increase over last year. While RECon will always be the largest DQG PRVW VLJQLĂ€FDQW QHWZRUNLQJ and deal making event for industry professionals, we wanted to place an extra emphasis this year on the educational component,â€? he noted. “Therefore, at RECon 2010 we increased the number of educational sessions to ensure that attendees were well prepared to capitalize on opportunities as they present

themselves in the near future.â€? The ICSC welcomed over 150 Ă€UVW WLPH H[KLELWRUV $GGLWLRQDOO\ over 100 retailers and nearly 100 municipalities exhibited in 2010. The trade show format was changed slightly this year, merging it with the leasing mall to create a highly functional integrated show across the different halls. Additionally, the leasing mall was consolidated from three halls into two, increasing HIĂ€FLHQF\ DQG GHDO PDNLQJ opportunities through easier access and exposure. “Overall, the new show format was very well received,â€? said Tim McGuinness, Vice President of global trade expositions for ICSC. “In fact, according to a survey conducted on WKH VKRZ Ă RRU E\ &OHYD 7HFKQRORJLHV on behalf of the ICSC, the integration ZDV SHUFHLYHG DV PRUH HIĂ€FLHQW IRU deal making, networking and vendor activity by roughly 70 per cent of exhibitors and attendees,â€? he added. There were 50 educational sessions this year, including the very well received Special Interest Group (SIG) sessions that were offered GXULQJ D QRQ FRPSHWH WLPH VORW ZLWK

42 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

the leasing mall on Sunday morning. Among the sessions was the Women in Real Estate Special Interest Group, which had over 125 attendees and IHDWXUHG URXQG WDEOH GLVFXVVLRQV lead by some of the most successful women in the industry. Additionally, the three keynote speakers, Virginia Postrel, Robert Reich and Sarah Palin, drew crowds of attendees, WKH ODWWHU Ă€OOLQJ WKH 1 KDOO ZLWK RYHU 4,500 people. Myriad awards were also presented at RECon, including the Hot Retailer Awards, which recognize innovative retail concepts that are driving consumers into shopping centres around the world. The 2010 recipients were Edible Arrangements, Flip Flop Shops, Charming Charlie, 6XQĂ RZHU )DUPHUV 0DUNHWV 7RR Hotties and Best Buy Express. Also SUHVHQWHG ZHUH WKH %HVW RI WKH %HVW Awards, which recognize the most outstanding examples of shopping centre design and development, marketing, sustainability, and community service worldwide. This year’s winners were Shopping Square Meydan, Istanbul, Turkey for Sustainability; CentralWorld, Bangkok, Thailand for Design and Development; SunEdison, Developers 'LYHUVLĂ€HG 5HDOW\ &OHYHODQG 2KLR for Marketing; and The Source 0HDGRZKDOO &HQWUH 6KHIĂ€HOG 8. IRU community service. Backed by its success at last year’s show, ICSC brought back the Future Image Award competition, challenging industry visionaries to conjure the shopping centre of the future. The theme this year was ‘thinking outside WKH ELJ ER[¡ ZKLFK DVNHG HQWUDQWV to create innovative new uses for the big box structure. The 2010 award recipients were CommArts for ‘reBox’ in the category of General Brilliance & Innovation; MulvannyG2 for ‘Restart, Reconnect, Revive...’ in the Green category; Roto Labs for ‘Big Box Transprogramming’ in the 5H (QYLVLRQHG 6KRSSLQJ (QYLURQPHQW category; and Nicolette Mastrangelo for ‘Big Box Mega Project’ in the

5H (QYLVLRQHG 0L[HG 8VH FDWHJRU\ Additionally, an honourable mention LQ WKH 5H HQYLVLRQHG 6KRSSLQJ Environment category was given to RTKL for its entry ‘The CIB: Community Interaction Box’. Each year at RECon, the ICSC celebrates the Trustees Distinguished Service Award Winners, which are presented to ICSC members who have made special contributions to the industry and distinguished themselves as leaders within the organization. Four members were awarded this year, they are: G Lamont Blackstone, Founder and Principal, G Lamont Blackstone and Associates, Mount Vernon, NY; Richard E Hearn, Director of Leasing, Vestar Development Co, Phoenix, Arizona; Avi Alkas, International Director and &KDLUPDQ -RQHV /DQJ /D 6DOOH /HYHQW ,VWDQEXO 7XUNH\ DQG $UWKXU / Pearlman, Chairman, Arthur Pearlman Corporation, Santa Monica, California. Last, but not least, the ICSC Foundation was proud to award its latest group of scholarship and fellowship recipients. New this year was the Mary Lou Fiala Fellowship, which will annually recognize an outstanding professional under the age of 30 who demonstrates a commitment to retail real estate and has the potential to make a lasting contribution to the industry. The inaugural award was presented to Carren Ballenger of Dallas, Texas. Also awarded were the Charles Grossman Graduate Scholarships, which provide recipients with a $10,000 academic scholarship and the opportunity to attend RECon, all travel expenses paid. This year, two scholarships were awarded to Alexander Finigan from Columbia 8QLYHUVLW\ DQG 7DWLMDQD 6WDIHWV IURP 7KH 8QLYHUVLW\ RI &KLFDJR Lastly, the Schurgin Family Scholarship, which provides tuition assistance to undergraduate students who are currently studying retail UHDO HVWDWH RU D UHODWHG Ă€HOG ZDV presented to Alexander Saks from the 8QLYHUVLW\ RI 6RXWKHUQ &DOLIRUQLD

JULY/AUGUST 2010 RETAIL & LEISURE INTERNATIONAL 43

VOYAGER

On the golden

retail ride SANDTON CITY, JOHANNESBURG, SOUTH AFRICA

WHILST AFRICA HAS, LIKE SO MANY OTHERS, SUFFERED THE EFFECTS OF RECESSION, THE CONTINENT REMAINS A TEMPTING PROPOSITION. ADAM BRAVO, CHIEF EXECUTIVE OFFICER OF RETAILLAB PROPERTY ADVISORS EXAMINES THE CURRENT CONDITION OF THE RETAIL AND LEISURE MARKETS OF AFRICA, THE IMPACT OF THE WORLD CUP AND ITS LONGER-TERM LEGACY. CANAL WALK, CAPE TOWN, SOUTH AFRICA

44 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

A

s in the rest of the world, the global recession had an adverse impact on the African retail and leisure sector; retailers and property owners felt the impact of a sharp reduction in consumer expenditure, which forced many to rethink their business strategies, service offerings and associated costs. In some instances, retail space rental costs were decreased or remained the same in an attempt to ensure that retailers remained in business. Governments GLG WKHLU EHVW WR LQà XHQFH FRQVXPHU spend by decreasing interest rates in an attempt to boost FRQVXPHU FRQÀGHQFH DQG UHMXYHQDWH consumer spending. 7KH 5 EQ ÀUVW SKDVH RI WKH Sandton City redevelopment will bring an additional 30,000sq m of high-end retail space on-stream as well as refreshing the mall with features and ÀQLVKHV LQVSLUHG E\ H[FLWLQJ WUHQGV LQ leading international design. Sandton City’s entire retail

space, including the extension, will total 150,000sq m on completion of this phase, set to open in late 2011. This will take the complex, ZKLFK LQFOXGHV WKH KRWHO DQG RIÀFH component, to a massive 215,000sq m. Once complete, the expansion and refurbishment will not only offer a variety of exciting local and international brands but furthermore a refreshed, bright and contemporary space, with the overall aesthetic of WKH PDOOV VXEWO\ UHà HFWLQJ WKH GLYHUVH geographical regions of South Africa. The completed construction of Eastgate Shopping Centre, the new lifestyle component will increase the landmark centre’s gross lettable area by 12,000sq m to 121,000sq m. Limpopo will soon have its own iconic 75,000sq m regional shopping centre superbly situated in a prime location in the province’s capital city Polokwane, is set to open in WKH ÀUVW TXDUWHU RI ZKLOVW WKH Mall of the North will act as an icon for Polokwane, as it boasts superb

GATEWAY CENTRE, DURBAN, SOUTH AFRICA

PROTEA COURT, SOUTH AFRICA

visibility and physical size. Mall of the North will be built to the most modern international standards and ZLOO FRPSDUH IDYRXUDEO\ ZLWK PDMRU regional malls as experienced around the world, providing parking for approximately 4,500 cars. Outstanding performers in the African market include MassMart, which has utilized sustainable practices as a business approach to create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environment, and social developments. The Shoprite brand is one of the leaders in South African food retailing and is, according to independent market research, the brand of choice for the highest percentage of South Africans consumers. Shoprite’s winning philosophy is to offer customers a convenient shopping experience in clean stores where customers can be sure to pay the lowest prices on their basic food and household requirements. Results of the latest MasterCard ‘Worldwide Index of Consumer &RQĂ€GHQFH¡ UHYHDOHG LQ -XQH WKDW WKH 6RXWK $IULFDQ FRQVXPHU FRQĂ€GHQFH continued its downward trend. The survey recorded an overall decrease from 67.3 a year ago, to 59.8 six months ago to a current score of 58.6. This is the lowest score UHFRUGHG VLQFH WKH VXUYH\ ZDV Ă€UVW conducted in 2004, and is below South Africa’s historical average of 81.4 over the past three years. It is clear that heightened sociopolitical tension in the country, most notably through labour unrest, FRPELQHG ZLWK VLJQLĂ€FDQW MRE ORVVHV over the past two years, continue to place a dampener on consumer FRQĂ€GHQFH +RZHYHU WKH LQGH[ KDV not deviated by much over the past six months and remains in positive WHUULWRU\ ZKLFK LV D UHĂ HFWLRQ RI the return to a new economic growth phase that is rapidly gathering momentum.

The evolution of African retail

Will the development of Middle East Supermalls will catch on in Africa? It’s GLIÀFXOW WR VD\ ZKDW ZH FDQ VWDWH LV that, in key economic regions on the African continent that draw in regional consumers (such as South Africa and Kenya), larger malls may be developed to accommodate large scale purchasing. Similarly, economies that do particularly well will naturally see an increase in consumer expenditure ZKLFK PD\ IXUWKHU LQà XHQFH WKH development of new, larger malls or the refurbishment and extension of

existing malls to facilitate growing consumer markets. Whether the malls will ever reach the size of such Middle Eastern malls as the Mall of Dubai is highly doubtful. A new model – the push-pull peerto-peer model – is now being used and social media planners understand very well what is going out there in the social world. Customer relationship management should now start to engage and involve, deliver value, listen and modify, be relevant and be customer-centric. With over 350 million subscribers to Facebook, 6.2 billion videos watched every single month on YouTube and

46 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

MOROCCO MALL, CASABLANCA, MOROCCO

close to 300 million Internet users in China, some say the world has become an interconnected ‘scary’ social planet where brands must quickly adapt to the current realities or ‘die’. What is certain is that the country’s dual role as regional hub and continental entry point, the blurring of boundaries between old (white) wealth and new (black) bling, combined with a global shift back to the basics of craft and authenticity, will only further the chances of Africa’s largest economy becoming a serious player on the luxury stage within the next 10-15 years.

MOROCCO MALL, CASABLANCA, MOROCCO

CAIRO FESTIVAL CITY, EGYPT

potential for growth

There is currently more than a million square metres of retail space at different planning stages. The most critical aspect regarding retail development at the moment is to make sure that there are VXIÀFLHQW KRXVLQJ XQLWV LQ WKH immediate vicinity to warrant this new development. Most of the new developments are based on WKH QHZ JURZWK SURMHFWHG IRU WKH different areas. It is therefore of utmost importance that retail should always ‘follow the roofs’, meaning WKDW VXIÀFLHQW KRXVLQJ XQLWV PXVW EH available before retail development FDQ EH ÀQDQFLDOO\ YLDEOH At this point in time, the timing of retail development is more important than the other key success factors of retail development. Location will always remain very important, but at the moment the planning of a new development must carefully consider the residential growth in a particular area. In some cases the retail potential will be ready in 3-5 years, in others 5-8 years and even 10-15 years. It is especially the retailers that must take cognisance of the tempo of residential development in VSHFLÀF DUHDV A second very important NELSON MANDELA SQUARE, JOHANNESBURG, SOUTH AFRICA

component in the development of a large number of neighbourhood and convenience centres is the location, the anchor tenant and the availability of parking. Neighbourhood shopping centres are currently anchored by two grocery outlets, eg Woolworths together with Pick ‘n Pay, Checkers or Spar. This offers a much stronger centre and a wider catchment area.

a proposition

The African continent continues to present a tempting proposition, representing a huge untapped consumer base for international brands that have yet to enter. The developing economies and the wealth created within these stimulate globalization and with it consumers develop a like for international, western brands. South Africa, Angola, Kenya and Nigeria are countries that present good examples where international brands have entered and captured consumer spend. Africa can no longer be viewed only as a destination for development aid – the continent is open for business, 6RXWK $IULFDQ 3UHVLGHQW -DFRE =XPD told global business leaders in Toronto on the eve of the G8 and G20 Summits. We must position the country to PD[LPLVH WKH EHQHÀWV RI WKH :RUOG

Cup beyond the actual tournament. Tourists only have a few weeks here, but the event is a phenomenal marketing opportunity for the country. It is crucial to take the opportunity South Africa has created during its global focus to ensure that more international brands are entrenched within the retail market and the accessibility is made easier and import policies are relaxed to allow for lower price points at sustainable margins in line with international levels and standards. In South Africa, the 2010 FIFA™ Football World Cup proved to be of JUHDW EHQHÀW WR DUHDV WKDW ZRXOG KRVW PDWFKHV 0DMRU GHYHORSPHQWV VXFK as the highly anticipated Gautrain would bring local and international consumers directly to the doorstep of RQH RI 6RXWK $IULFD·V PRVW SURÀWDEOH shopping malls – Sandton City. The ÀUVW OHJ RI WKH GHYHORSPHQW WKH OLQH between South Africa’s largest airport OR Tambo International and Sandton City) was completed within days of the opening of the World Cup. Further extensions will see the Gautrain have VWDWLRQV DW IXUWKHU KLJK WUDIÀF UHWDLO areas which will boost consumer spend in these areas. A surge in sales within the central business nodes of South Africa,

MENLYN PARK, PRETORIA, SOUTH AFRICA

SULPDULO\ GXH WR WKH LQĂ X[ RI WRXULVWV DQG VWURQJHU FRQVXPHU FRQĂ€GHQFH and excitement is a welcome occurrence to ailing retailers who KDYH IDFHG GLIĂ€FXOW WLPHV This is especially true for retailers within new or premium developments and locations that have not been able to realize the full return on their investment.

The surge in retail activity is a ZHOFRPH LQMHFWLRQ LQWR DUHDV VXFK DV Melrose Arch and Nelson Mandela Square, as many retailers in these spaces have faced less-than-expected sales in the run up to the opening ceremony and games. Many retailers have been planning for the expected increase in sales due to the World Cup, and may have

CLEOPATRA MALL, CAIRO, EGYPT

LQFUHDVHG H[LVWLQJ Ă RRUVSDFH RU opened new branches in centres where consumers, both local and LQWHUQDWLRQDO DUH H[SHFWHG WR Ă RFN during the six week period of the games. Similarly, retailer property owners and management companies have also taken advantage of the expected sales, either keeping high costs constant or through increasing the cost of the retail space, or through the provision of temporary trading spaces in unoccupied areas such as open squares or mall aisles. The week before the World Cup opening saw dramatic increase in activity in the centres as tourists Ă RFNHG WR WKH UHWDLO FHQWUHV 7KH Gautrain development further stimulated consumer activity in the Sandton business node leading to higher transactions in both Nelson Mandela Square and Sandton City. On a national level, both Visa International and MasterCard reported a surge in transactions most notably the day before the opening match, providing insight into expected consumer behaviour during this period. Here at RetailLab, we would express caution to retailers. While activity will continue to be stimulated DV WUDQVSRUW GHYHORSPHQWV LQMHFW IHHW into business centres, and due to a KLJKHU FRQVXPHU FRQĂ€GHQFH EURXJKW on by World Cup fever, retailers must expect that this golden retail ride will be short lived and that other retail centres will go back to their usual state of business after the World Cup. This golden retail ride will eventually end and retailers will be back in the same situation as before, or worse. Property owners and management companies have capitalised on the excitement of the World Cup stating that retail space costs are in line with accepted standards and that the expected surge and continued activity postWorld Cup will ease the impact for retailers. This is not the case though, and retailers may be faced with retail space rental costs that are not only unrealistic, but completely unmanageable and unsustainable.

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The giant awakes. As you’d expect, in the Year of the Tiger, Asia is on the move again. So if you’re seeking value and growth in this new real estate market there’s still only one venue you must attend. MIPIM Asia 2010. Here you will see the evidence of recovery in this crucial market and how best to take advantage of it. Only at MIPIM Asia 2010 will you find the best solutions to press forward in these difficult times. Only here will you meet high-level real estate professionals face to face and fashion new strategies today for a better tomorrow. Be sure to be there – as the giant awakes and grows. For further information, please visit www.mipimasia.com

10-12 November 2010 Hong Kong Convention and Exhibition Centre, Hong Kong SAR

www.mipimasia.com

eventscolumn

9th June 2011 BCSC NEW GENERATION 18 August Home House, 20 Portman Square, London www.bcsc.org.uk

ICSC EUROPEAN OUTLET CONFERENCE 13-14 October Milan, Italy www.icsc.org

FLORIDA CONFERENCE

WORLD RETAIL CONGRESS 2010

22-24 August Gaylord Palms Resort & Convention Center, Kissimmee, Florida, US www.icsc.org

25-27 October InterContinental Berlin, Germany www.worldretailcongress.com

MEXICO RETAIL CONFERENCE

BCSC ANNUAL CONFERENCE & EXHIBITION

GLOBAL RLI AWARDS www.rli.uk.com RECON ASIA CONFERENCE 7-9 November Beijing International Hotel & Convention Center, Beijing www.icsc.org

MIPIM ASIA 10-12 November Hong Kong Convention & Exhibition Centre www.mipimasia.com

MAPIC 7 September Mexico City, Mexico www.icsc.org

BRC ANNUAL RETAIL INDUSTRY DINNER 2010 22 September The Grosvenor House Hotel, London www.retaildinner.co.uk

INDIA RETAIL FORUM 28-29 September Renaissance Hotel, Mumbai, India www.indiaretailforum.in

1-3 November Manchester Central, Manchester www.bcsc.org.uk/ conference

BRC PARLIAMENTARY RECEPTION 2010

17-19 November Palais des Festivals, Cannes, France www.mapic.com

THE RLI MIX 25 November 9HQXH WR EH FRQĂ€UPHG /RQGRQ www.rli.uk.com 6SRQVRU WR EH FRQĂ€UPHG

2 November House of Commons Terrace Pavilion, London www.brc.org.uk

THE RLI MIX 30 Sept 9HQXH WR EH FRQĂ€UPHG /RQGRQ www.rli.uk.com Sponsor: Design Clarity

EXPO REAL 2010 4-6 October New Munich Trade Fair Centre, Germany www.exporeal.net

PUBLISHER: Jayne rafter jayne.rafter@rli.uk.com EDITOR: Andrew Climance

andrew.climance@rli.uk.com DESIGN MANAGER: Corinne Delargy corinne.delargy@rli.uk.com CIRUCLATION MANAGER: Des Fox

des.fox@rli.uk.com

50 RETAIL & LEISURE INTERNATIONAL JULY/AUGUST 2010

PRINTED BY WPG LTD.

SUBSCRIPTIONS:

Paramount Publications Ltd, Hardmans Business Centre, New Hall Hey Road, Rawtenstall, Rossendale BB4 6HH, United Kingdom

For circulation or subscription queries or amendments,

t: +44 (0)1706 212 200 f: +44 (0)1706 211 782 e: info@rli.uk.com w: www.rli.uk.com

t: + 44 (0) 1706 212 200. Single copy: UK ÂŁ4, Europe ÂŁ6, Rest of World ÂŁ8.

ANNUAL SUBSCRIPTION RATES: Europe ÂŁ60, Rest of World ÂŁ80. RLI is published 11 times a year by Paramount Publications Ltd.

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Creating great space

Our portfolio includes many leading brands in retail, hospitality and leisure across the UK, Europe, the Middle East and Asia. Achieving the quality that our clients demand is a challenge ISG enjoys.Testimony to this is the volume of repeat projects we perform each year, from frameworks and multi-location roll outs to bespoke flagship appointments. Contact John Mawhinney for more information t:+44 (0) 20 7392 4968

e: email@isgplc.com

w: isgplc.com

Fit Out • Refurbishment • Concepts • Commercial Offices • Joinery • Logistics • Design Development • Retail Outlets • Shopfitting

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