January 2011
MAPIC Review Magazine
T H E
www.mapic.com
HIGHLIGHTS
RETAIL NEWS
The news, views and latest trends from Cannes
New brands and global retailers plan for 2011
Inside, page 6
Inside, page 25
O F F I C I A L
M A P I C
ALSO INSIDE ■
Asset management: Owners focus on their portfolios ■ Franchising: Working out the best formula for growth ■ E-tail and m-tail: Europe’s new consumer paradigm
M A G A Z I N E
GERMANY - Berlin, Alexanderplatz
© Valode & Pistre
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••• EDITORIAL
Dear Friends, Welcome to the MAPIC Review magazine, bringing you the highlights of the 2010 edition of the world’s retail real estate market. Nathalie Depetro
I would like to start by thanking everyone who attended MAPIC. Real estate and retail companies have faced challenging market conditions since 2008, but the good news was that there was a palpable mood of renewed optimism in Cannes last November and an attendance growth of 10%. According to research released during the show by CB Richard Ellis, “retailers intend to ramp up their expansion plans in 2011, signaling a return to confidence in the sector as an increasing number of retailers look to significantly increase their store networks next year”. This may explain why almost 200 retail companies chose to attend MAPIC for the first time. With city administrators increasingly looking at their urban development policies, MAPIC’s inaugural Retail In The City summit provided an opportunity to bring together key players from the public and private sectors to discuss the role retail can play in urban regeneration. I would like to thank everyone who took part in the summit which will be back for a second year in 2011. Retail is changing. Online shopping in France alone was valued at €25bn in 2009. This developing phenomenon is leading retailers and real estate specialists to re-examine the role and layout of traditional shops and shopping centres. The MAPIC Lab took a first look at innovative trends in the retail sector and we will expand the Lab in the years to come. Finally, I want to wish you all an excellent 2011. I hope your business grows and that we will have the chance to welcome you to Cannes in November to be part of the MAPIC 2011 community.
Nathalie Depetro Director, MAPIC
Thankyou for visiting us at MAPIC For more information contact Kingfisher : +44 (0) 20 7372 8008
www.kingfisher.com
••• CONTENTS
HIGHLIGHTS
6
A whirlwind tour of three busy days at MAPIC
NEWS
8
A round-up of the biggest news announced at MAPIC 2010 Cleopatra Mall, Egypt
NEWS: RETAILERS
13
The latest on the new and fast-growth retailers
NEWS: INVESTORS AND DEVELOPERS
15
News focus on international investment sentiment and activity MAPIC Review magazine January 2011 Director of Publications: Paul Zilk Editorial Department Editor-in-chief: Mark Faithfull • Associate Editor: Anika Michalowska • Technical Editor in Chief: Herve Traisnel • Deputy Technical Editor in Chief: Frederic Beauseigneur • Graphic Designer: Carole Peres • Sub Editor: Joanna Stephens • Proof Reader: Debbie Lincoln • Contributor: Graham Parker. Production Department Content Director: Jean-Marc Andre • Publications Production and Development Manager: Martin Screpel • Publishing Co-ordinators: Amrane Lamiri, Bruno Piauger • Production Assistants: Emilie Lambert, David Le Chapelain • Veronica Pirim • Production Assistant, Cannes Office: Eric Laurent • Printer: Riccobono Imprimeurs, Le Muy (France). Published by Reed MIDEM • BP 572 • 11, rue du Colonel Pierre Avia • 75726 Paris Cedex 15, France • Contents © 2011, Reed MIDEM Market Publications • Publication registered 1st quarter 2011
www.mapic.com
NEWS: CITIES AND REGIONS
17
Cities and regions from around the world promoted their locations at MAPIC 2010
NEW RETAILERS AT MAPIC
18
A host of new retailers exhibited and attended MAPIC this year
THE MANY FACES OF MAPIC 2010
20
EVENTS AWARDS
22
The winning line-up at the MAPIC Retail Awards 2010
CONFERENCES
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Highlights from the three 2010 keynotes, plus a review of some of MAPIC’s special sessions
SPECIAL TOPICS ASSET MANAGEMENT
26
How to optimise scheme performance as the economy recovers
GLOBAL INVESTMENT OPPORTUNITIES
27
New opportunities across Europe and beyond
NEW RETAIL TRENDS
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The retail trends at MAPIC 2010 plus the new Retail Lab
MASTER-FRANCHISES
32
Choosing the right partner for expansion in new markets is not easy but MAPIC had some advice
CITIES AND PPP
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Cities and regions were at MAPIC in force, looking for opportunities to use retail as a catalyst for regeneration Printed on 100% recycled paper
E-TAIL AND M-TAIL We look at how online retail, mobile phone-based retail and social media are shaping retail real estate
34
••• HIGHLIGHTS
The story of MAPIC 2010 VISITOR NUMBERS WERE UP 10% ON LAST YEAR AND RETAIL EXECUTIVES PASSED THE 2,000 MARK, UP BY A QUARTER, AS CONFIDENCE BEGAN TO RETURN TO THE INTERNATIONAL RETAIL-PROPERTY MARKET. MARK FAITHFULL OFFERS A WHIRLWIND TOUR OF MAPIC 2010 WEDNESDAY, NOVEMBER 17
TUESDAY, NOVEMBER 16 Lights, music, action: MAPIC 2010 officially began with the traditional Opening Night Party, in partnership with Ville de Marseille, which showcased its CentreBourse, La Capelette, Les Terrasses du Port, Stade Velodrome projects, and Gecina, Fonciere Euris, Paris Orleans and Apsys, which presented the Paris-Beaugrenelle project. The Majestic was, as ever — well, majestic, as some of the top French projects were highlighted in a year that saw France crowned Country Of Honour.
OPENING PARTY
One of the hottest debates at MAPIC 2010 was the pace of change brought about by the confluence of shifting consumer demand, technology and the prevailing economic conditions. Carrefour Property CEO Pascal Duhamel said the global grocery giant is looking at ways of transforming the shopping experience in its hypermarkets.
PAS CAL DUHAMEL
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BUSY AISLES MAPIC in numbers: 7,400 delegates (+10% compared with 2009) from 67 countries gathered in Cannes. "We have made a significant effort to attract retail brands this year,” said MAPIC director, Nathalie Depetro. “The results have been very positive, with almost 200 retail companies attending for the first time. The presence of new retailers has clearly contributed to the 10% increase in the number of companies [2,940] attending MAPIC this year."
US retailer Abercrombie & Fitch’s buffed-up male models wandered the MAPIC aisles semiclad for three days and made something of a splash, delivering a cheeky reminder of the retailer’s iconic imagery. Here they are outside A&F’s hospitality suite, erm, working.
ABERCROMBIE & FITCH
••• HIGHLIGHTS
THURSDAY, NOVEMBER 18 The Kidz are all right: innovative children’s play and educationalenvironment operator Kidzania spoke at the conference Retail Concepts: The Thrill Of The New — just one of several highly original retail and leisure concepts to be presented in Cannes.
BUSINESS LOUNG E
The French delegation was the largest at MAPIC once again — and France was also under the spotlight as County Of Honour. Altarea’s decision to allow visitors to interact with its projects through iPads proved timely, given MAPIC 2010’s sharp focus on the growing influence of technology.
KIDZANIA An even higher level of service was the mantra for this year’s gathering, where the business lounges were opened up to all delegates for the first time. Offering free wi-fi and a host of special services, the lounges succeeded in making business meetings more productive, easier and just plain more enjoyable.
ALTAREA
The Retail In The City Summit was one of the major new initiatives at this year’s MAPIC. The event brought together a host of city and urban officials and planners to discuss global best practice, ideas and projects at a thought-provoking gathering.
RETAIL IN THE CITY
FRIDAY, NOVEMBER 19 All the world’s a stage: held at the Palais des Festivals, this year’s MAPIC Awards honoured two developers, two retailers and a renowned French retail leader. After the fan fare of the awards came a commendably lively after-show party — if you can remember it all, you obviously weren’t there...
SPEED MATCH ING
France’s second city, Marseille, has been at MAPIC talking about regeneration for some years. In 2010, however, it was able to present a host of live schemes that will transform the historic port city over the next two or three years.
MAPIC AWARDS
Once again, one of the big hits of the MAPIC week was the rapidfire speed-matching sessions allowing retailers, food and beverage operators, and complementary concepts to present their ideas to developers and potential franchise partners.
ISAK HALFON
MARSEILLE Retailers were not only more numerous but more public this year, with a number of first-time stand-takers such as DIY giant Kingfisher and consumer-electronics retailer Expert. Mango’s international expansion director, Isak Halfon, was manfully running the Spanish retailer’s stand — but was able to take some time out to meet new contacts in the chairman’s club.
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••• NEWS
• COLOSSEUM SHOPPING CENTRE in Bucharest will be the only mall to be delivered in the Romanian capital in 2011. To be built in two phases by developer Nova Imobiliare, the first phase will include a 53,000 sq m retail park, which is 70% pre-let. Anchors include the first Leroy Merlin DIY store in Romania, Carrefour and the electronics retailers Altex and Flanco. • APSYS and the life-insurance subsidiary of Societe Generale, Sogecap, have agreed a 10-year partnership, which encompasses Apsys projects in France. The first project in the pipeline is Les Rives de l’Orne in Caen, for which the partners have teamed up with Credit Agricole. • HB REAVIS opened Aupark Zilina in the Slovakian city in October. At MAPIC, the Slovak property developer announced that further retail openings were scheduled for the remainder of 2010. Over 130,000 shoppers visited Aupark Zilina in the first week of the scheme’s opening.
October debut: Aupark Zilina
• CHAPMAN TAYLOR is working on Ukraine's biggest mall: the 131,000 sq m Ocean Plaza mall in the capital, Kiev. Ocean Plaza will open in 2012 ahead of the European Football Championships, which will see Kiev hosting preliminary rounds, playoffs and the final. Anchor tenants already secured include the German hypermarket chain Real and a Kino Planet IMAX cinema.
Stratford sale as Westfield plots growth WESTFIELD confirmed its agreement to sell a 50% interest in the retail component of Westfield Stratford City for €1.04bn to a new joint venture comprising APG of the Netherlands and Canada Pension Plan Investment Board (CPPIB). Through the joint venture, APG and CPPIB will each own a 25% indirect interest in Westfield Stratford City. Located adjacent to the site of the 2012 London Olympics, Stratford City is a 190,000 sq m retail and entertainment destination, due for completion in the third quarter of 2011. Approximately 75% of the retail area is either pre-leased or committed. Bill Giouroukos, director of operations at Westfield UK and Ireland, said that his company’s focus
Westfield is set to look at further UK opportunities
would widen to take in further UK opportunities. “Westfield London [White City] is currently 100% let and we are trying hard to do something special in East London, including a specialist food mar-
ket for the site, which will be located close to the entrance to Waitrose,” he said Giouroukos added that Westfield is also to reignite investment in Nottingham and Southampton.
Retailers must adapt offer for individual CEE markets INTERNATIONAL retailers looking to expand in Central Europe need different growth strategies in each country rather than a single strategy for the region a round-table co-hosted by Romanian developer RED and Europaproperty magazine concluded. For example, Barbara Somogyiova of Italian retailer List pointed out that Romanian women are “more
Italian” in their fashion preferences than, say, Hungarian or Bulgarian women. Consequently, the price differential between Italy and Romania might only be 10%, whereas in Croatia and Poland it could be 20% and in the Middle East as much as 30%. The participants, including chair Chris Igwe, head of retail, EMEA, at CB Richard Ellis, Arlyse White
of Bhs International, Michael Lemner of Tim Tam, and Sunil Nayak and Shakeel Hussain of Landmark Group, also insisted that a well-designed retail centre should focus on functionality over architecture. Clear interior sight lines, attractive shop fronts, user-friendly car parks and properly conceived service areas and food offerings were considered key.
Plaza Centers continues to feed international pipeline PLAZA Centers presented a number of international developments at MAPIC, as the company reiterated its development ambitions. “It was important we show the property and retail trade that we continue to build projects after two years of slow movement,” said Eli Mazor, managing director of Plaza Centers Poland.
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Mazor said Plaza Centers has seven projects in Romania, two in Bulgaria, one in Greece, three in Poland and five in India. “We started to work in India three years ago,” he added. “It is a very difficult but promising market.” Plaza Centers: New ambitions
specialist public relations for the retail environment
t. +44 (0) 20 7269 9360 e. victoria.wallin@fd.com w. www.fd.com
••• NEWS
• QUINTAIN ESTATES presented its London Designer Outlet Centre at MAPIC, showcasing the retail and leisure element of the Wembley City scheme, situated next to Wembley Stadium and Arena. The leasing campaign is under way for the first designer outlet in London. • DRACO was at MAPIC presenting both its three Fashion District factory outlet centres across Italy and its mixed retail, leisure and theme park Motorcity, which is an automotive-based destination. • FASHION VALLEY was presented at Cannes by Italian/Belgian developer Europ Invest and Gruppo La Castelnuovese. The shopping centre will open in spring 2011 on the A1 Rome-Florence highway. Three units comprise the first phase of the €30m scheme totalling 5,500 sq m, followed by a second 10,000 sq m phase. • SONAE SIERRA has three projects under construction and seven new projects in various phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. The Portuguese fund manager and developer said at MAPIC that it had embarked on a new phase of international development.
Carrefour and Klepierre set French agenda KLEPIERRE-Segece and Carrefour Property confirmed at MAPIC that they are jointly developing several projects, notably Grand Portet in Toulouse, Chalezeule in Besancon and Claira in Perpignan. The 24,500 sq m GLA Grand Portet is being extended and refurbished. Klepierre will develop an additional 8,000 sq m GLA, scheduled for delivery in the first quarter of 2014. The extension will add 28 small stores, two mid-sized units and three restaurants. Carrefour Property is creating a 6,000 sq m Le Patio retail floor area in the space that will be freed up when the floor area of the existing hypermarket is reduced. Le Patio, scheduled to open in mid2011, will feature 10 small stores and one mid-sized retail unit covering 3,300 sq m and dedicated to culture.
Carrefour is partnering to deliver a series of schemes
Klepierre-Segece will also build a retail park on the Bois de Chalezeule site. Covering 24,000 sq m by 2014, the scheme will be expanded to 34,000 sq m GLA by 2019. At the same time, Carrefour Property will create a 10,000 sq m GLA extension to the mall that adjoins its 10,000 sq m hypermarket,
which is scheduled to open in 2014. Claira in Perpignan will be entirely renovated and expanded between now and September 2012, bringing its total floor area to 8,200 sq m GLA. In all, 40 small stores will be added. Carrefour Property is also creating a 22,000 sq m retail park next to the site.
Belarus back on the map for international retailers BELARUS is back on the radar for Eastern and Southern European retailers, according to development agency Mall Expertise & Consulting, which is working on the Grand Canyon development by SPM-Spedsprodmash. “During MAPIC, we witnessed
strong interest from Polish, Turkish, Russian and global retailers in Belarus and the Grand Canyon shopping centre, which is designed especially for international brands,” said Maria Gurova, director general of Mall Expertise & Consulting.
The 120,000 sq m retail and entertainment centre, which is located on the Minsk ring road, is scheduled to open in 2012. Several international retailers are showing interest in the Belarus market, including Auchan, New Yorker and H&M.
New projects help drive Neinver’s European expansion Sonae Sierra: New growth
• COLLIERS leased more than 90% of the 28,500 sqm Mirage shopping centre in Zilina, Slovakia prior to opening. Anchor tenant is a 2,000 sqm Marks & Spencer, while tenants include Yamamay, Carpisa, Coincasa, Intersport, Billa, Koton and Adidas.
SPANISH outlet centre developer Neinver confirmed its European expansion plans at MAPIC with two French projects — Roppenheim The Style Outlets and Honfleur The Style Outlets — both in partnership with MAB. Neinver also has five new retail schemes under way in its main markets of Spain, Poland and Portu- Poland: A major front for Neinver
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gal. Factory Coruna (2011) will be the company’s fifth outlet centre in Spain, while Algarve The Style Outlets (2012) will be its second outlet in Portugal. Factory Krakow, Factory Warsaw Annopol and the rebuilding of the Katowice train station, where a major shopping and office complex will be built, will also be delivered across 2011 and 2012.
••• NEWS
• EMILIA ROMAGNA used MAPIC to outline the Italian region’s retail growth strategy and to showcase the Ferrari Museum and facilities created to celebrate the famous cars. Italy’s cities and regions were once again heavily represented in Cannes, with a number of locations promoting regeneration through retail expansion. Mr Maurizio Melucci, counselor for Tourism & Retail for EmiliaRomagnia region
• GAZIT-GLOBE subsidiary Gazit Brazil has opened the group’s first development project in Brazil — the 14,500 sq m San Pelegrino shopping mall. “This marks an important step in our operation in Brazil, as we continue to establish a strong presence in the country,” said Gazit-Globe’s president, Roni Soffer. • MILLIGAN has opened its Retail Planet project at Barreiro, south of Lisbon in Portugal. The 35,000 sq m hybrid scheme, which incorporates a mall and a retail park, consists of 80 stores and restaurants, 13 retail-park outlets and 1,750 car-park spaces. The anchors are Jumbo, Radio Popular, AKI and Decathlon. • GLOBE TRADE CENTRE (GTC) opened its first retail and entertainment centre in Bulgaria in November. The 25,000 sq m Galleria Stara Zagora offers 130 shops, a supermarket, and a food court and leisure area featuring a sevenscreen multiplex cinema. Galleria Stara Zagora is one of four GTC retail projects in Bulgaria.
GTC: CEE expansion
Bursa Anatolium boosts Corio Turkish presence NETHERLANDS-based Corio has extended its Turkish portfolio by purchasing the Bursa Anatolium Shopping Center for €176m. IKEA, Carrefour, Leroy Merlin and Media Markt are among the retailers in the 84,000 sq m GLA centre, which opened at the start of November. Bursa is Turkey’s fourth largest city, with a 2.3 million population. It is also one of the country’s most important centres for the automotive, food and textile industries. Corio Turkey’s CEO, Koray Ozgul, said: “Anatolium Shopping Center will be a dominant player not only in Bursa but also in the Marmara region thanks to its very strong anchors, original and cozy atmosphere and its sheer size.”
Corio entered the Turkish market by purchasing 46.92% of Akmerkez in 2006. It owns 100% of the Ada, 365 and Tekira shopping centres and 51% of Teras Park Outlet, all of which are managed by Corio. Also
managed by Corio. Also included in its portfolio are the Malatya and Tarsu shopping centres. Ozgul said the company will continue to expand domestically, opening and acquiring more malls.
IKEA, Carrefour and Leroy Merlin have opened at Bursa Anatolium
Hinton Partners showcases Abatan Brussels project Hinton Partners was at MAPIC to promote the integration of its international network – which includes Latin America, the US, Vietnam and Eastern Europe - into partnerships. This allows the business to respond to all aspects of retail, planning and communication on an international scale. The company was also showcasing its work with developer Abatan to regenerate a 17ha site in the centre of Brussels. Hinton Partners has been involved at all stages of a retail, residential, com-
mercial and cultural concept which will see innovative retailers
Innovative scheme for 2013
join the project. Phase one will deliver a food hall in 2013, with the project’s completion due by 2020. Hinton Partners offers a broad range of services including retail and franchise development strategies, new concept and retailer research and merchant plans for shopping centre owners and cities. Founder Lara Hinton stressed: “I believe global management with one central coordinator is the most effective and efficient way to initiate and manage complex retail projects.”
Trinity Walk intensifies leasing drive in run-up to launch AS THE first of only three major shopping centre schemes scheduled to open in the UK in 2011, Trinity Walk in Wakefield was at MAPIC to continue its leasing programme ahead of its spring launch. Max La Frenais, leasing director at Sovereign Land — the joint devel-
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oper and development manager of Trinity Walk — said: “We are well on the way to delivering a highquality development with the great tenant mix that we always believed would be attracted to this scheme. In the 10 months since we got back on track, we have already signed over 75% of the centre. Game and
Costa have now joined our tenant mix and we are looking forward to the successful opening of the UK's first post-recession retail scheme in spring 2011.” Among the raft of retailers already signed up are Debenhams, Sainsbury’s, Topshop/Topman, H&M, River Island and Peacocks.
••• NEWS: RETAILERS
Stability key to French retail market WITH a 2009 turnover of around €400bn, France is one of Europe’s largest retail markets, stressed Dr Eberhard Stegner, managing director of GfK GeoMarketing, in his opening remarks at the MAPIC conference, Retail In France: A Key Market With Remarkable Prospects. The panel pointed to France’s economic stability and the positive outlook and opportunities for retail in the country. “The lowering of CDEC [planning] approvals makes things easier,” said Benoit Dantec, country manager at VastNed Management France. Cyril Lemoine, expansion manager France, retail/wholesale, for Esprit de Corp, added: “Raising the need for approval to 1,000 sq m makes it
Talking shop: French retail highlighted at MAPIC
quite comfortable for many retailers.” The importance of location was also underscored. “Retailers need to have flagship stores to show they exist,” said Henrike Waldburg, head of shopping-centre acquisitions and sales at Union
Investment Real Estate. However, France’s position as a stable market for retailers does not mean the country is without challenges, which include public debt and strong competition among retailers.
• DEICHMANN GROUP continues its growth in both sales and store numbers on the back of the most ambitious expansion programme in its history, which has resulted in the opening of 282 new stores in Europe and the US. “Despite the financial crisis, we have even exceeded our targets,” said the German footwear retailer’s chairman, Heinrich Deichmann. • KINGFISHER’S Castorama has launched a new augmented reality imaging iPhone application. The app allows customers of the DIY chain to superimpose virtual objects from Castorama’s range on to images of the user’s home. Kingfisher exhibited at MAPIC for the first time in 2010.
Palm Hills promises to ‘break mould’ in Egypt EGYPTIAN property company Palm Hills Developments, which has a landbank of 47 million sq m, is aiming to “break the mould of mall development in Egypt” with its latest project — the 32,000 sq m Palm Galleria, now under construction in New Cairo. The first mall in Egypt to feature
a retractable roof, the three-level shopping centre is due to open in October 2011. Senior leasing manager Amgad Abdallah said: “This is the next generation of Egyptian shopping centres. We are trying to raise the bar.” Funded through a joint venture with Pradera, Palm Galleria has
already attracted brands such as Adidas and Apple to sign pre-lettings alongside its twin anchors: a 2,000 sq m Metro supermarket and a six-screen Renaissance cinema. Abdallah reported that negotiations are now under way with a mix of international fashion retailers.
Expert seeks franchise partners for MENA expansion CONSUMER electronics retailer Expert was looking for franchise
partners to help the Swiss-based business expand into the Middle
Swiss retailer Expert was looking for global opportunities
East, North Africa and Eastern Europe. Managing director Chris Buecker said that the company was “openminded” about which new markets it would move in to. He also stressed that finding the “right fit” for a partner was the most important element. Expert’s European sales exceeded €10bn last year and it now has more than 3,000 European stores. “We typically operate from 1,200-1,500 sq m, but we can also operate from larger stores,” Buecker said. “Our success is based on a single format, a single name and a wide range of solutions for the customer.”
Castorama: New mobile app
• FRESSNAPF reported that it opened 19 stores across Europe — 11 of them in Germany — between July and September 2010, bringing the total to 1,114 stores. The speciality pet-food and accessories chain was at MAPIC to discuss further expansion opportunities across Europe. • CASINO announced during MAPIC week that its Asian subsidiary Big C had bought Carrefour’s Thai business. “The transaction allows Casino to strengthen significantly its market position in one of its key countries,” said Jean-Charles Naouri, chairman and CEO of Casino. In addition to its €1bn asset-disposal programme, Casino is to dispose of €700m of assets in 2011.
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••• NEWS: RETAILERS
• ABERCROMBIE & FITCH is to open a Hollister store in Irish capital Dublin. It also opened a store for its sister brand, Gilly Hicks, at Westfield London in late November. The US retailer made a splash at MAPIC with its trademark semi-clothed male models, who wandered the aisles of the exhibition area. • RETAIL PROFILE RUSSIA is to sponsor the International Council of Shopping Centres’ (ICSC) two Russian summer schools, to be held in June and September 2011. Anthony Hayes, executive director of Retail Profile Russia, said the schools reflect the growing professionalism of the Russian retail market.
MAPIC Lab showcases retail innovation TO ILLUSTRATE how to meet new shopper expectations, four innovative French retail-store and communication concepts were showcased in the MAPIC Lab, which made its debut this year in Cannes. Department store retailer Galeries Lafayette explained how it used social media to promote its fashion image. Customers were invited to participate and be featured in what became “the world’s largest fashion show”, dubbed “Operation Fashion is you”. The Merci store in Paris presented its philanthropic concept, dedicated to fashion and the home. All the profits go to help deprived children in Madagascar and its success has attracted other hip boutiques to open in a previously unfashionable retail area of Paris.
Didier Ludot’s La Petite Robe Noire outlined its concept store, which offers customer unique black dresses. The retailer can either operate on its own or as a concession. The Monnaie de Paris, or mint, is one of the oldest French institutions, having been established in 864. At MAPIC, it unveiled its urban regeneration programme, MetaLmorphoses, directed by Jacques
Leon with Philippe Prost as lead architect. The project includes diversifying the retail offer by introducing a concept store and several other shops, well as creating two new restaurants. These last will be under the direction of renowned chef Guy Savoy, who will move his right-bank Paris flagship restaurant to the Monnaie de Paris for March 2012.
Idea exchange: Innovation presented by four French retailers
• LIDL was awarded a silver certificate of quality by the German Association for Sustainable Construction (DGNB) for its new concept branch store, which has recorded over a year’s worth of energy-usage data. The engineering concept was developed for the German hard discounter with Dress & Sommer. • ING REAL ESTATE came to MAPIC shortly after selling its €44m, three-level shopping centre on Vorosmarty Square in Budapest, Hungary. The scheme includes Zara, H&M, New Yorker and Pull & Bear in a deal brokered by Salans.
ING sold Vorosmarty Square
All change as Land Securities boosts development addition, we have lined up some great names, such as Hollister, Coast, River Island and an extension to Marks & Spencer.” Akers also said that trading was going well at the City of Londonlocated One New Change — an area of the UK capital in which trading is usually restricted to the working week. “Retailers have started opening earlier to capture the City morning spend,” he said. “The shopping and circulation patterns have been very good too.”
RETAIL growth and increasing retail interest in prime projects has helped to boost Land Securities — and meant that the UK REIT went to MAPIC with strong stories on its two current projects, the recently completed One New Change in London and Trinity Leeds, which is currently under development. Of the latter, retail managing director Richard Akers said that reaching 40% pre-lets was what triggered a commitment to deliver the project, which had previously been deferred. Akers added: “In
Akers: Strong performance
Cirque du Soleil seeks malls with showbiz ambitions MONTREAL-based entertainment operator Cirque du Soleil was at MAPIC looking for shopping-centre locations in Europe at which it could locate its big top for extended periods. The circus operator was testing the idea of partnering with mall managers in Europe. “It’s a great
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opportunity to create place-making for a shopping centre,” said development agent, Johanne Thibodeau. “Ideally we would like to find 20 cities in Western Europe where we could locate our event for about two months every 18 months to two years.”
Big top plans for Europe
••• NEWS: INVESTORS AND DEVELOPERS
Hammerson pushes Anglo-French deals ANGLO-French developer Hammerson has seen its schemes boosted by strong occupier demand across its retail portfolio, with its UK shopping centres generating 5.3% like-for-like sales growth in its third quarter and its French assets accounting for 6.2%. At MAPIC, Hammerson was fo-
cusing on the construction of its Les Terrasses du Port retail scheme in Marseille, France, which is already over 50% let. Group retail leasing director Sheila King reported that Apple has agreed to take a top-level store in the centre. “The Genius Bar will overlook the water and has a stun-
Les Terrasses du Port will include a top floor Apple store
ning view,” she said. Elsewhere, Hammerson has planning permissions in place to extend its Brent Cross Shopping Centre in north London and its Silverburn mall in Glasgow, Scotland. Moreover, the company arrived at MAPIC just days after US retailer Forever 21 had made its longawaited European debut at its Bullring centre in Birmingham. “We are working with retailers much earlier in schemes, including their input and views on what they really want on the design and circulation,” King said. She added that Hammerson was working with both Forever 21 and Abercrombie & Fitch to help the retailers with their expansion plans in the UK and France.
First Slovakian retail outlet ushers in new era THE €75m One Fashion Outlet in Voderady near Trnava, which lies 47km to the north-east of Bratislava, Slovakia, was unveiled by property development specialist Realiz and retail factory-outlet specialist Rioja Developments at MAPIC. To be developed over 21 ha, One Fashion Outlet is designed with architect Holder Mathias in conjunction with consultants Rohleder Lumby and SJ International. The scheme will consist of over 100 retail and restaurant units across 36,000 sq m, a leisure area with a lake, a children’s playground and a 3,000-vehicle car park. The development will take place over three phases, with phase one
creating 60 to 70 retail units across 15,800-plus sq m. Vladimir Kozar, project manager for One Fashion Outlet, said that he believes Slovakia needs a high-quality outlet centre to promote the concept. “The idea for One Fashion Outlet came from the desire to create a
convenient shopping environment that Slovaks didn’t need to travel abroad to enjoy,” he added. Construction should start in early 2011, with phase one launched in late 2011. Kozar said the scheme was attracting strong international retail interest.
• GARANT-Invest Group was at MAPIC to promote its Moskvorechie shopping and entertainment centre at Kashirskaya metro station in Moscow. The three-storey building will house a total of 110 shops, 10 restaurants and cafes, and an eight-screen cinema. • TRIGRANIT opened the €350m Arena Centar, Zagreb in the runup to MAPIC. "We are very proud of our first shopping-centre project in Croatia, which has been realised in difficult times,” said TriGranit’s CEO, Arpad Torok. Interspar, Bata, Esprit, G-star and Mango will be joined in 2011 by C&A, H&M, Gap, Marks & Spencer, Sephora, Zara and several leisure offers.
Zagreb’s Arena Centar
One Fashion Outlet, bringing convenient shopping to Slovakia
UK’s secondary centres still a cause for concern THE UK’s primary retail centres, and larger towns and cities can be “quietly confident” about the coming year, according to Cushman & Wakefield’s global head of retail, John Strachan. However, he
• CITYCON OYI reported that its development projects were continuing to enhance its Scandinavian and Baltic portfolio. CEO Petri Olkinuora said: "Citycon’s seven ongoing major projects will further enhance the competitiveness and attractiveness of its shopping centres.” Work will temporarily reduce the leasable area by approximately 35,000 sq m.
stressed that big questions remain about the country’s secondary centres, many of which are seeing plummeting demand from retailers. “With very little supply and virtu-
ally no development pipeline, primary locations are seeing solid demand,” Strachan said, citing expanding overseas retailers such as Jack Wolfskin. “But there is a big worry about secondary towns.”
• AL-FUTTAIM is to develop a 250,000 sq m retail and leisure scheme in Doha, Qatar. The Dubai-based developer is also examining opportunities for development and franchising in Singapore, Malaysia and other Asian markets, according to director of retail leasing Phil Evans, who is also looking at Indonesia, Vietnam and Thailand and spearheading Cairo Festival City.
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••• NEWS: INVESTORS AND DEVELOPERS
• EUROCOMMERCIAL reported that the refurbishment of its Il Castello in Ferrara, Italy and Les Atlantes schemes in Tours, France is currently under way. Plans are also progressing for the refurbishment of Passage du Havre in Paris, Centr’Azur in Hyeres, I Gigli in Firenze and Mellby Center in Laholm, all of which are expected to commence within the next 12 months. • OUTLETS China and Freeport announced at MAPIC that they have started construction on their first three outlet centres in China, located in Beijing, Foshan and Huzhou. The first three of 30-plus planned outlets, the centres will provide over 100,000 sq m GLA and offer a mix of outlet retail, leisure, and food and beverage units under the brand The Palette. • VIKTOR & Co, which specialises in development in the Volga region, presented a number of projects at MAPIC. Among the new schemes is Novo-Vokzalnaya in Samara, Russia, which will mix retail and leisure across an 80,000 sq m GLA on three levels. • ECE and Strabag Real Estate’s Forum Mittelrhein shopping centre at the Zentralplatz square in Koblenz is to be purchased by RREEF Investment, which will take a 94.9% share in the project company for the open real-estate fund Grundbesitz Europa. The 20,000 sq m Forum Mittelrhein will open in autumn 2012.
Cleopatra Mall raises profile at MAPIC WITH 120,000 sq m of retail space, 300 stores on three levels, 50,000 sq m of hotels, 50,000 sq m of office space and a $350m investment, Cleopatra Mall is set to be one of the largest projects in Egypt. Funded by Egyptian entrepreneur-
ial company Cleopatra Group, the proposed mega-project was unveiled at MAPIC with plenty of razzmatazz. Cleopatra Mall will focus on its leisure offer, fine dining, entertainment, gourmet markets and fashion. It will also feature
Cleopatra Group gets down to business at MAPIC
Egypt’s first dedicated luxury mall inside a shopping centre, with its own valet parking, VIP lounge, spa and press office. Cleopatra Mall, which is scheduled to open in late 2012, will include a 5,000 sq m lake with water features and an iconic canopy covering the central area, described by architect Davide Padoa of Design International as a “wave in the desert”. Padoa added: “Cleopatra Mall will represent the largest retail multimedia display in Egypt.” The mall is located in 6th October City, a relatively new district created in the west of Egyptian capital Cairo and leasing agent is DI Leasing, owned by Italian agent Svicom. Marketing manager Valentina Farinola said: “We have signed up Harvey Nichols, Dior, Zegna and Stefano Ricci, and we are 30% pre-let.”
Pradera cashes in on demand for North Africa UK-BASED fund manager Pradera has a strong track record when it comes to pioneering new markets, being one of the first investors to enter Greece and Turkey. The company is now targeting North Africa, according to group property director John Glassett. Pradera has already launched a joint venture with Palm Hills Developments in Egypt, with the aim of owning two malls by autumn 2011. It plans to grow to six malls eventually, which could create a fund of up to €800m. Other North African markets are also on the agenda. “Our investors
are still keen on Europe, but North Africa will provide a kicker to any fund's performance,” Glassett
said. “And importantly, retailer demand is as strong as investor interest.”
Pradera believes Egypt and North Africa have great potential
Fashion House launches one-stop outlet package
ECE has tied up PREEF deal
OUTLET specialist Fashion House has launched what it describes as an industry first for the European outlet sector — Fashion House Franchise, a one-stop package providing all the operational requirements for investors and developers.
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Brendon O’Reilly, managing director of Fashion House Group, said: “As a successful outlet-centre developer with a recognised consumer brand and a tried-andtested concept, we saw the potential to develop a new offer. We
can provide the whole outlet package, with all the experience and expertise that any new outlet-sector entrant could want, at a low risk and an affordable price — and all at realistic market rates, with royalty fees and profit share.”
••• NEWS: CITIES AND REGIONS
Lyon promotes top retail concepts FOR THE seventh consecutive year, the French city of Lyon and the Lyon chamber of commerce and industry (CCI Lyon) invited seven local retailers to MAPIC to showcase concepts considered particularly promising for national and international development. “Our mission is to support our retailers’ development,” said Marc David, who is responsible for business development at CCI Lyon. From the class of 2010, three of the
L’Epicerie Equitable began online
Team Lyon: Bringing promising concepts to Cannes
concepts were positioned on sustainability. Origeen is an environmentally friendly men’s fashion store. L’Epicerie Equitable, which began online, now has two physical stores and plans to develop more in the Alpes-Maritimes, Alsace, Ile-de-France and Loire regions. Pop-up format Chronostock, meanwhile, was looking for a master franchise to help drive its international development.
Three other concepts were positioned on health and wellbeing: the convenience store Cerise et Potiron, which sells fresh produce; Skin&Sense, an urban day spa; and Lady Fitness, which comprises a network of fitness and slimming clubs for women. The final new concept, Aviva, specialises in high quality, low-cost kitchens and is mainly interested in expansion in its domestic market.
Doughty Hanson moves into France and Spain FUND manager Doughty Hanson was at MAPIC to exhibit several schemes, notably plans to finance and develop a new shopping mall adjacent to the Velodrome stadium in the southern French port city of Marseille. The 30,000 sq m Prado shopping centre is located centrally in Marseille and is scheduled for completion in 2014. “Prado has very good transport links and is in an area that is presently lacking good quality retail,” said Doughty Hanson analyst Nabil Mabed. “As
investor and developer, we are very committed to this project. We believe that, with an affluent catchment within easy reach of the centre, Prado will help to regenerate this area of the city.” The company was also awarded the development of the Valdebebas site in Madrid, Spain, earlier in 2010, after launching a €113m offer to acquire the land. The transaction — the largest land deal recorded in Spain since the beginning of the financial crisis — will be developed with Netherlands-based Multi. The
• SOCHI Grand Marina has been unveiled ahead of the Winter Olympic Games, which will take place in Sochi for 2014. The port of Sochi Grand Marina is a mixed-use waterfront development project covering 7 ha and featuring a marina, a 250-room hotel, 10,000 sq m of office space and 10,000 sq m of retail space. Sochi exhibited at MAPIC for the first time this year. • INDIA took a stand at MAPIC 2010 to promote the burgeoning retail and franchise opportunities in the country. A recent BMI India Retail Report forecasts that total retail sales will grow from $353bn in 2010 to $543.2bn by 2014. With an expanding middleand upper-class consumer base, there will also be opportunities in India's second- and third-tier cities. • TITHEBARN, the BDP-designed £700m shopping-centre scheme in Preston, UK, has been given the green light by communities and local government secretary Eric Pickles. Tithebarn includes the revitalised Preston Markets, a new cinema, cafes and bars. A new John Lewis and Marks & Spencer are the anchor stores.
Prado: Scheduled for 2014
site will house over 180,000 sq m of retail and office space, including the country's largest shopping centre. Preston, UK’s Tithebarn
West End offers ‘great investment opportunities’ INVESTING in London’s central retail districts is a “no brainer”, according to New West End Company CEO Richard Dickinson. Speaking at a breakfast briefing at MAPIC, Dickinson said: “With
£26bn of infrastructure spend committed, it is a great place to invest or to trade in as a retailer.” David Shaw, head of the Regent Street portfolio for The Crown Es-
tate, added that, with low bond yields, investment in property in London’s West End is not about “buying trophy assets” but about taking advantage of “great investment opportunities”.
• EURASIA Red attended MAPIC for the fifth time in 2010. It used the occasion to present its ongoing retail-development projects at Aport mall Raimbek and Aport mall Kulja in Kazakhstan.
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••• NEW RETAILERS AT MAPIC
MAPIC 2010: Some new faces BELGIUM ■ McGregor Retail
Sportswear for men, women and children, with partnership with Williams F1 team. Present in Greece, France, Belgium, Netherlands, Luxembourg, Spain and Switzerland. www.mcgregor-fashion.com
USA ■ Chipotle Mexican Grill
Fast food chain specialising in Mexican dishes, famous for its DIY burritos. It has nearly 1,000 restaurants in the US and Canada and in 2010 opened in the UK. www.chipotle.com
■ ZEB (Wamo BVBA)
Multi-brand, trendy clothing. The group distributes more than 30 brands and has 21 stores located on the outskirts of cities. www.zebweb.be
■ Lego Brand Retail
Present in over 130 countries, Lego plans to open Legoland parks in Florida in 2011 and in Malaysia in 2012. www.lego.com
FRANCE ■ Carre des Halles
Market combining freshness and authenticity. www.carredeshalles.fr ■ D-Kay Karine Arabian
MAPIC 2010 WELCOMED ALMOST 200 NEW RETAIL COMPANIES FOR THE FIRST TIME AND OVER 2,000 RETAIL PROFESSIONALS ATTENDED THE EVENT. HERE IS A SELECTION OF JUST A FEW NEW GLOBAL BRANDS
Founded in 2000, fans of this designer include Isabelle Adjani, Vanessa Paradis, Madonna, and Scarlett Johansson. Export sales now target Russia, ahead of Italy and Germany. www.karinearabian.com ■ Garden Ice Cafe
Franchise concept of cosy, upscale bar-restaurants, designed to tap into emerging market trends. www.gardenicecafe.com ■ Lewinger
Womenswear retailer targets women aged 45 and over with collections suited to larger sizes via a network of over 65 shops. www.lewinger.fr ■ Manhattan Hot Dog
US-inspired concept, selling throughout France and in some other European countries. www.manhattanhotdog.com ■ Neogusti
Fast food and gourmet eating concept offering a new take on Italian cuisine. www.neogusti.com ■ Origeen
Trendy, environmentallyfriendly clothes and accessories for men. www.origeen.fr
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••• NEW RETAILERS AT MAPIC
+ 30%
UK
SWEDEN
POLAND
■ Oliver Sweeney
■ Indiska Magasinet
■ Diva
Footwear retailer with unique designs resulting from years of intensive research. www.oliversweeney.com
Fashion retailer Indiska has 87 stores in Sweden, Norway and Finland, with an Indian influence. www.indiska.com
Jewellery brand created in Australia and operating in Asia, Africa and America. In 2006, Diva opened its first store in Russia and now has over 150 stores there with plans to open 200 by the end of 2010.
■ Rut M FL
Latest fashion trends at attractive prices for young women aged 18 to 30, with over 250 stores in Scandinavia, Switzerland, Estonia, Denmark, UK and Finland. www.rutmfl.se
*
retailers
www.divarussia.ru
CHINA GREECE
■ B&Q China
■ Mabo Shop
The company has developed the concept of a two-storey store containing everything people need to fit out their houses. www.bnq.com.cn
Fashion accessories, bags, scarves, gloves, shoes, jewellery, etc. www.42dgr.com ■ Marasil
SWITZERLAND
Ready-to-wear clothing for children aged 1-14, operates in Italy, Germany, Spain, the Netherlands, Egypt, Russia, Cyprus, Saudi Arabia, UAE and Lebanon. www.marasil.gr
■ Gaydoul Group
Owner of Swiss luxury brands such as Jet Set, Fogal, and Navyboot, it sells via department stores such as Globus, Jelmoli KaDeWe (Berlin), Harrods and Fenwick (London), Le Bon Marche (Paris) and TSUM (Moscow). www.gaydoul-group.ch
ITALY ■ Alcott
Ready-to-wear brand for men, women and children is known for its trendy, young and dynamic style. Alcott has over 150 stores in Italy, plus Spain, France, India, Jordan and Russia. www.alcott.it ■ Gutteridge
Neapolitan brand specialises in menswear made from natural materials such as cashmere, cotton and linen. www.gutteridge.it
GERMANY ■ Aran Bread & Coffee
Gourmet products such as homemade cakes and ices in a convivial, family setting. Also present in Dubai and Kuwait. www.aran.coop ■ Frank Walder
German textile brand which operates in Germany and also exports to China, Lithuania, the Netherlands, Russia and Ukraine. www.frankwalder.com ■ Scotch & Soda
Ready-made clothes offering vintage styles across 31 countries via an extensive distribution network plus its own stores in the Netherlands, France, Belgium and Italy. www.scotch-soda.com
AUSTRIA ■ Baumax
DIY chain is well-established in Austria (70 stores) and is extending the DIY concept to Central Europe where it now operates in the Czech Republic, Hungary, Slovakia, Slovenia, Croatia, and Bulgaria and Turkey. www.baumax.com
TURKEY ■ Cilek
Easy to assemble and carry practical and high quality rooms for babies, kids and teenagers. Cilek has 444 sales points including the US, Italy, Switzerland, the UK, Austria, Russia, Japan and Germany. cilek.com.tr ■ Colin’s
Dynamic, urban fashion brand offering “fair value for conscious, caring and free minded people”. www.colins.com.tr ■ Cross Jeans
Trendy jeans with a touch of luxury, mainly targeting young people, present in Austria, Czech Republic, Belgium, Germany, Italy, Luxembourg, Poland and Switzerland. www.crossjeans.com ■ Sarar Group
Elegant clothing for men and women, with offices in New York and Dusseldorf to keep abreast of the latest trends. www.sarar.com ■ Smyk Cocuk Giyim Oyuncak
Children’s toys, school accessories, books, clothing, etc and its own Smiki brand of babies’ toys. It has over 60 stores in Poland, Russia, Ukraine, Germany and Turkey. www.smyk.com ■ Zen Diamond
Jewellery firm specialising in diamond jewellery, aiming for 1,000 stores in the next 25 years. www.zendiamond.com
* 30% increase of the number of retailers at MAPIC 2010 vs previous year
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The many faces
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of MAPIC 2010
MAPIC REVIEW MAGAZINE 2010 /
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••• AWARDS
Best in show FOUR MAJOR EUROPEAN RETAIL MARKETS TOOK HONOURS IN CANNES AS THE 2010 MAPIC AWARDS RECOGNISED THE BEST OF THE BEST ACROSS THE CONTINENT
T
HURSDAY night is awards night at MAPIC — and 2010 did not disappoint, with four of Europe’s most important retail markets represented among a diverse and leading-edge group of winners. Jack Wolfskin and Lego won the top retail awards, France’s Odysseum was recognised as the best shopping centre and Belgian capital Brussels took the honours for city improvements.
Frederic Lefebvre, France’s secretary of state at the economy, finance and industry ministry, gave an impassioned speech and the MAPIC 2010 Personality Of The Year award to Jean-Paul Freret, director of expansion and real estate and member of the executive committee at the Vivarte group. Recognition for Freret topped a year in which France was celebrated as MAPIC Country Of Honour.
THE STORY OF THE 2010 AWARDS AN EXCEPTIONAL YEAR THE 2010 awards were distinguished by a “fantastic number of entries and some exceptional retailers and projects”, according to jury president John Stra- French secretary of state Frederic chan, head of global retail Lefebvre: Talking shop at the Palais des Festivals, venue for the 2010 Awards night at Cushman & Wakefield. He added that not only were there entries from outside Europe — notably Korea and China, but that the schemes in contention were of consistently high quality. “Odysseum was a great winner but, on another year, others could justifiably have won,” he said. Paying tribute to the “very strong list” of top international retailers and brands from which the judges had to deliberate, Strachan said of the two winners: “Jack Wolfskin is in a very interesting niche and the judges were very impressed by its international expansion, while Lego remains a kids’ favourite and has a great store concept and roll-out programme.” Of the city award, Strachan added: “Again, there were some very interesting projects but with Brussels, we felt there had been a great deal of thought and a very intellectual approach had been taken.”
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2010 MAPIC Awards winners Best International Retailer Jack Wolfskin (Germany)
Best New Retail Concept Lego (Denmark)
Best Shopping Centre Odysseum (France)
Best Improved City Attractiveness Brussels (Belgium)
Personality Of The Year Jean-Paul Freret, director of expansion and real estate and member of the executive committee, Vivarte group
8 -11 March 2011 Palais des Festivals Cannes - France
WHERE REAL ESTATE MEET CAPITAL Over 3,500 investors looking for new opportunities.
COME MEET THEM REGISTER ONLINE AND PREPARE YOUR SHOW ON WWW.MIPIM.COM 1/ Register online 2/ Plan your agenda with the Online Community • identify and connect to the people you want to meet • schedule meetings in advance • select the conferences and networking events you want to attend 3/ Boost your visibility • create and share your company profile • advertise within our print and online channels • organize your own private event
www.mipim.com
••• CONFERENCES 2010
You heard it here first MAPIC’S COMPREHENSIVE CONFERENCE PROGRAMME HAD A STRONG RETAILER FEEL TO IT THIS YEAR, WITH DEBENHAMS AND PRIMARK AMONG THOSE PACKING IN THE DELEGATES
KEYNOTE: DAY ONE JOHN SCOTT, HEAD OF INTERNATIONAL BUSINESS DEVELOPMENT, DEBENHAMS
RETAILERS are increasingly seeking new territories as the mature markets seem stuck in a rut of low growth. The UK-based department store chain Debenhams is more adventurous than most — it has already opened in Iran and this year will open its first store in Iraq. Head of international business development John Scott said the company had opened in 12 countries since the market downturn began in 2008. It now trades from 227 stores in 26 countries across Europe, the Middle East and Asia. Central Asia has been a strong focal point, with stores opening recently in Armenia, Azerbaijan and Kazakhstan. “Department stores are not easy to take international,” Scott said. “That's why there are very few global chains.” But he believes Debenhams has two key advantages that allow it to overcome the barriers to cross-border expansion: “Our biggest asset is our portfolio of 92 private labels. That gives us exclusivity in any market we choose to enter, and we don't have to worry about existing distribution agreements.” For example, 75% of the floor space in the 10,000 sq m flagship store in Westfield London is dedicated to privatelabel stock. The second advantage is the flexibility of the Debenhams format, which allows it to trade from units as small as 1,500 sq m to as large as 15,000 sq m.
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THE NEED FOR SPEED: SPEED MATCHING @ MAPIC ONCE again MAPIC featured a series of Speed Matching sessions, during which retailers presented concepts in a rapid-fire format designed to introduce a broad spectrum of innovative ideas to owners, developers and potential franchise partners. To ensure top quality operations are presented, all the projects and retail concepts are selected by an international panel, chaired by Michael Green, chief executive of BCSC, plus Leo Civelli, CEO of REAG European operations, Eric Costa, real estate director of Galeries Lafayette and Frederic Fontaine, managing director of Corio France. Canadian quick-service concept Teriyaki Experience was one of those to take advantage of the opportunity. “We have been very well received in Italy and MAPIC gave us a great
opportunity to get our message out, with the UK and France particularly attractive for us,” said the company’s vice-president of development, Nik Jurkovic. Teriyaki Experience’s meals are prepared in front of customers and consist only of fresh ingredients that can be cooked in Asian sauce or, as a healthy option, water.
The MAPIC 2010 conference sessions are available on video www.mapic.com (programme section)
••• CONFERENCES 2010
KEYNOTE: DAY TWO THOMAS MEAGER, DIRECTOR OF PROPERTY, PRIMARK
CITY FOCUS: RETAIL IN THE CITY SUMMIT
MAPIC 2010 saw the launch of a new initiative, the Retail In The City Summit. The event, which brought together senior executives from the public and private sectors from countries including France, the UK, Italy, Belgium, the Netherlands and PRIMARK's director of property, Thomas Meager, stressed the value fashion retailer’s plans to continue growing in mainland Europe, maintaining there are still “huge opportunities” in countries such as Germany and Spain. The latter was Primark’s first entry point into Europe and is its largest market outside the UK and Ireland. Meager said that the retailer “continued to perform strongly” in Spain, despite the territory’s macro-economic issues. He added that, with Primark’s proposition closely aligned with Spanish consumers, he foresaw further expansion in the country. Meager also believed that the company was well placed for growth in Germany.
Quizzed on why Primark had not moved into Europe earlier, he said that it was simply a matter of priorities, but joked: “It has gone so well I wish we had gone in earlier”. Meager explained that, because the model operates by discounting steadily until product sells from the store, Primark had not required warehousing in Europe to support its outlets. Now, however, a 20,000 sq m distribution centre has opened in Torija, Spain to service southern Europe. Meager also outlined the strategy behind Primark’s Oxford Street, London flagship and confirmed that the company continues to push forward with its proposed second store at the eastern end of Oxford Street.
Canada, examined ways of achieving sustainable urban retail and how retail interacts with the city. During two hours, the seven experts at each round-table exchanged views, swapped new ideas and shared best practice on the key issues influencing the future of cities. The major themes included how to finance infrastructure; the retail mix’s pivotal role in terms of a city’s attractiveness; social sustainability and retail; legal constraints; urban regeneration; leg-
KEYNOTE: DAY THREE CHRIS IGWE, HEAD OF RETAIL, SENIOR DIRECTOR OF EUROPEAN RETAIL LEASING, EMEA, CB RICHARD ELLIS (FRANCE) WITH the retail market in more durable shape after two torrid years, CB Richard Ellis’ (CBRE) Chris Igwe described 2011 as a “time of real opportunity” in his wrap-up keynote address. He also stressed that “the consumer is back” and that “emerging markets have recovered their attraction”. Given the unenviable task of summarising MAPIC in a little over 20 minutes, Igwe picked out supermarket retailers, food and beverage operators, and the mid-fashion market as the key retail sectors acting with more confidence. He highlighted Turkey, Germany, Poland and France as the top performing markets, while also mentioning Spain, the UK, Russia and the Czech Republic. “What we are noting is that retailers seem to be focusing on opening their own stores rather than franchising,” Igwe added.
islation, retail and the environment; and cities as a retail destination. “A consensus was drawn from the many contributors on the need for a long-term vision,” said Bertrand Boulle, moderator of the Retail In The City Summit and CEO of Mall & Market. Sharon Fernandez-Cavada King, moderator and director of ERV Consulting, summarised the many advantages of encouraging the development of town-centre managers. All participants agreed that a city should not only be attractive for citizens and business, but that it should also be ‘seductive’.
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••• FEATURE
Managing the prize asset THE DEVELOPMENT PIPELINE MAY BE BUILDING AGAIN, BUT THERE WILL BE AN INEVITABLE LAG BETWEEN CONSTRUCTION AND DELIVERY. MARK FAITHFULL AND GRAHAM PARKER LOOK AT THE CONSEQUENT FOCUS ON ASSET MANAGEMENT
T
HE LACK of supply is already having an impact on rental prices in key European markets. At the start of MAPIC, agent Colliers International published a retail-rents map providing prime rents, yields and expected shopping-centre completions across Europe. Paris topped the list with the most expensive prime retail rents. The cities of Kiev and Moscow have seen sharp increases in prime rental levels in the past six months, up 30% and 25% respectively. They are expected to see a further upswing over the next 12 months. Maxim Gasiev, chief operating office of Colliers International Russia, said: “In Moscow, the vacancy rate has fallen from 15% in mid-2009 to around 5%8% now, as retailers have begun to seek space in the city once more.” Like Russia, Romania has had to whether the impact of the downturn and Antonio Di Berardino, CEO of Italian SIIQ IGD’s Romanian shopping centre operation Win Magazin, stressed the strong emphasis on prime across Europe: “Romania is not experiencing just the effects of the crisis, but the rewind of ten years of economic
“
In Moscow, the
vacancy rate has
fallen from 15% in mid-2009 to around 5%-8%
”
Maxim Gasiev
growth. In these hard times, the certainties are more absolute than usual. In our business, the main certainty is the location and we have the top ones.” Meanwhile, Henderson Global Investors' Herald fund, set up to invest in shopping centres and retail parks across Europe, currently has €160m of new acquisitions in the pipeline, according to head of asset management Paul Nicholls. The new spate of deals will mean the fund, which currently has just under €800m invested in 19 assets across eight countries, is virtually fully invested. “We are focusing on the core EU markets of Germany, France, Spain and Italy,” Nicholls said, explaining that the portfolio currently breaks down to 55% retail parks and 45% shopping centres. “The fund was launched in 2005 with a 10-year lifespan, so now is a critical time,” he added. “We have a lot of refurbishments and extensions planned for the next 18 months.” Altarea Cogedim also used MAPIC to share its strategy as it steps up the development of its asset-management business. The French developer, which moved into asset management in 2009, said that it has always been committed to enhancing the value of its 66-retail-property portfolio. Bringing properties into line with environmental standards established as a result of the Grenelle de l’Environnement debate in France has opened up new development opportunities, the company claimed. A GLA of around 90,000 sq m is to be developed by Altarea Cogedim, including Jas de Bouffan in Aix-en-Provence and Espace Gramont in Toulouse.
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Henderson continues to invest in retail property across Europe
Alterea: Committed to enhancing the value of its 66-retail-property portfolio
EUROPE’S MOST EXPENSIVE PRIME RETAIL RENTS RANKING
CITY
RENTS €/SQUARE METRE/MONTH
1
Paris
€833
2
London
€807 (Zone A)
3
Zurich
€627
4
Milan
€583
5
Geneva
€470 Source: Colliers
••• FEATURE
Dealing with the times INVESTMENT STRATEGIES TOOK CENTRE STAGE AT MAPIC 2010 AS NEW FINANCING STRATEGIES AND GEOGRAPHICAL PRIORITIES CAME TO THE FORE. MARK FAITHFULL AND ANIKA MICHALOWSKA REPORT
A
NUMBER of deals and new investments were announced at MAPIC, with the nature of the transactions pointing to the internationalisation of expansion and funding across the European continent and beyond. Echo Investment, one of Warsaw’s largest investment and development companies, signed retail-space lease agreements at MAPIC with Tesco for Galeria Olimpia in Belchatow, which will cover an area of 7,800 sq m; and Galeria Veneda in Lomze, covering 7,350 sq m. “Acquiring an operator for our hypermarkets has been of crucial importance for both malls,” said Marcin Materny, Echo Investment’s head of shopping-centre department. “Signing agreements with Tesco has allowed us to make a big step forward in the commercialisation of these centres”. Echo Investment also signed a lease agreement with Helios for over 2,300 sq m in Outlet Park Szczecin, to be occupied by a six-screen cinema. Set to open at the end of 2011, Outlet Park Szczecin is the first outlet centre in the West Pomeranian province.
Meanwhile, Detski Mir, the Sistemaowned Russian retail chain selling goods for children and teens, will open new stores in Ukraine, Belarus and Kazakhstan in 2012/2013, followed in 2015 by Poland, Bulgaria and the Czech Republic. Vladimir Aleksandrovskiy, Detski Mir’s real-estate director, said: “We wanted to show the world market our ambitions for local and international development after a halt in 2009.” Redevco said that its focus had turned to Asia, with the first Redevco shopping centre in China set to open in 2013. “Our ambition is to develop Asia as our
“
A lot of the world
is relying on low
interest rates as a funding narcotic Peter Todd
”
Sign of the times: Echo Investment and Tesco put pen to paper at MAPIC
INVESTMENT: “BACK TO THE FUNDAMENTALS” AGENT CB Richard Ellis hosted a round-table on investment during MAPIC 2010. CBRE’s head of European retail investment, John Welham, starting the session by acknowledging that investment volumes are up, “but not as much as everyone hoped”, sitting at 2005/2006 levels. However, Peter Todd, director at Resolution Property, said that for him the boom years had been “an aberration”. He added: “The market is back to the fundamentals, with the focus on occupiers.” Todd also observed that every market is a series of mini-markets with, for example, northern Spain performing better than Spain as a whole. He also said: “More secondary properties could be in line for further falls. A lot of the world is relying on low interest rates as a funding narcotic.” Ian Playford, group property director at European DIY giant Kingfisher, added: “Often the retailers and developers who need financing can’t access it. At Kingfisher we have been fortunate in being able to finance our own capital expenditure. Without that, the lack of development funding would have made store growth difficult in some countries.” Michel Riaskoff, chairman of Netherlands-based Foruminvest, said that he believed funding mechanisms would have to change. “With finance only available for 55%-60% of schemes, bank money and mezzanine financing doesn’t work any more,” he pointed out. “I believe forward funding direct with the investor will be the way forward, with pre-lets of 35%40% required and an anchor in place. For prime and core, investors will also step in at a much earlier point.”
Foruminvest: Investment model will change because of lower finance levels
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“
The south of
France and southern Spain are of great
”
interest to us Gary Bond
second home market. We are building a retail portfolio in larger metropolitan areas, particularly in China,” said Jean-Christophe Bretxa, managing director of Redevco France. Meanwhile, an Italian-Canadian joint venture is converting a former airport terminal at Mirabel, 35km north of Montreal, into a new retail destination. Branded Grand Prix One, the project will include a kart track and a car test track. The lower level of the three-storey complex is being dedicated to motor dealerships; while the middle level will become a showcase for international food manufacturers. The upper level will become a high-
McArthurGlen’s €100m Athens Designer Outlet is a 21,200 sq m GLA two-level scheme, scheduled to open in 2011
end outlet mall. Outlet centre specialist McArthurGlen Group underlined its investment programme with an update on its Athens project and the launch of a new French scheme. The site for the €100m
Athens Designer Outlet — a 21,200 sq m GLA two-level scheme to open in 2011 — was selected for its proximity to both the city and airport. Gary Bond, CEO McArthurGlen European Development, said the scheme is currently 40% pre-let and added: “We want to be at about 70%-80% by opening.” The McArthurGlen Group will open more than 100,000 sq m of retail space in 2011 and 2012 in locations ranging
from Athens to Neumunster near Hamburg. The company also plans to open a third designer outlet village in France in 2014, having reached agreement with La Compagnie Agricole de la Crau and the Miramas local authorities in Bouches-du-Rhone. Bond added: "The south of France and southern Spain are of great interest to us. We still feel there are holes in those markets and the brands are pushing us for opportunities."
INVESTORS STILL SEEKING ‘RIGHT OPPORTUNITIES’ IN SPAIN THE GENERAL view among MAPIC attendees was that a combination of right pricing and location-based opportunities have kept Spain on the retail radar. Moreover, Spanish retailers have embarked on aggressive pricing strategies, which have contributed to a stabilisation in rents, according to agent Savills. Manuel Martin, head of property portfolio management, Iberia, for Henderson Global Investors, said that the sharp correction in the Spanish market had attracted investor interest. John Welham, head of European retail investment at agent CB Richard Ellis, added: “Rents bottomed out very suddenly in the UK. Investors don’t want to miss out on Spain if the same thing happens.” Madrid-based Fernando San Juan, associate at fund manager Doughty Hanson, which is working on the huge Valdebas project outside Madrid with developer Multi, said: “Shopping is very integrated into the culture of Spain and we believe in its long-term potential.”
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The transformation generation IT WAS IN WITH THE NEW, OUT WITH THE OLD AS RETAILERS ATTENDING MAPIC 2010 JUGGLED WITH THE CHALLENGES OF A RESHAPED INDUSTRY AND THE POTENTIAL CHANGES TO THEIR RETAIL PROPERTY PORTFOLIOS
W
ITH the dramatic slowdown in the development pipeline now impacting on the space available for retailers, some of the fastest growing operators from Europe and beyond made the trip to MAPIC 2010. The economic downturn has shaken up the old order and created new opportunities for retailers — and the first conference session, The Future Of Retail Real Estate, set out the new scenario. “It has changed the way consumers shop and the way brands communicate with them,” said Deloitte global retail leader Richard Lloyd-Owen.
“
Above all the
downturn has
changed attitudes to
”
value
Richard Lloyd-Owen
“Above all the downturn has changed attitudes to value. We are seeing a new frugality in some markets.” Giving the US perspective, Retail Vision's principal, Jody Israelsky, said that, with consumers becoming more demanding than ever, ethical shopping could be a strategy to encourage what she called “guilt-free spending”. For instance, Gap recently encouraged customers to trade in their old jeans. Over 270,000 pairs were redeemed and the denim used to make home insulation, with shoppers receiving a voucher for 30% off their next purchase. Pascal Duhamel,CEO of Carrefour Property, said the global grocery giant is also looking at ways of transforming the shopping experience in its hypermarkets. But Duhamel warned that traditional property relationships were one of the biggest barriers to innovation. “There is no question that retailers need more flexibility,” he said. “But landlords still need certainty. We need to see new ideas emerging.” Few delegates could have missed the presence of Abercrombie & Fitch, which used its trademark muscled
Carrefour Property’s Pascal Duhamel: Traditional property relationships one of the biggest barriers to innovation
models to announce its presence at MAPIC. The US retailer’s promotional strategy serves as an illustration of the reshaped world of retail. “Abercrombie & Fitch doesn’t do any formal marketing,” said senior director Richard Collyer. “We use media such as Facebook. Our shoppers have grown up with social media.” Canadian footwear retailer Aldo also said that online is a growing part of its business, although Norman Jaskolka, vice-president of Aldo Group InterMango’s Isak Halfon (on phone) was busy making deals and meeting new contacts at MAPIC
national, also stressed the importance of new store openings. “We tend to operate an own-store policy in Canada, the US and the UK and then franchise in other countries in order to conserve capital expenditure,” he said. Retailers also used their stands to help spread their message this year. Isak Halfon, executive director of international expansion at the Spanish fashion giant Mango, said: “It’s an opportunity to meet people and to learn about shopping centres and markets you are not familiar with.” Ian Playford, group property director of Kingfisher, said the European DIY giant was using MAPIC as an opportunity to bring all the elements of its business together. “We have spent the past three years working through our estate, downsizing and ridding ourselves of stores that were not performing,” he added. “Next year, we are looking at two new store openings. That may not sound like a huge amount, but it represents the start of a move forward.” Stephen Springham, retail research partner at agent King Sturge, warned
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Turkish Minister of State Zafer Caglayan at Turkish pavilion
B&Q has re-evaluated its portfolio and is beginning to expand again
that retailers also need to rethink their flagship store strategies. Although the economic downturn has forced retailers across Europe to re-appraise what constitutes an affordable rent, new market entrants continue to have an unhealthy preoccupation with “expensive trophy locations”, he said. In European Retail Property 2011 Bumpy Landings?, launched at
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We need to see new ideas
”
emerging
Pascal Duhamel
TURKISH RETAILERS JOIN FIRST PAVILION A GROUP of Turkish retailers hosted the first Turkish retail pavilion at MAPIC this year, which was visited by Turkish Minister of State Zafer Caglayan. The initiative reflected the growth of retail in the country and expansion across Europe and Asia. Retailers in attendance included Arzu Kaprol, Beeline, Boydak Holding, Colin’s, Cross Jeans, Damat & Tween, Koctas, Machka, Sarar Group, Smyk Cocuk Giyim Oyuncak, Sun Holding Company, Tema magazacilik hir Tic and Zen Diamond. MAPIC, Springham said: “Trophy locations can be a distraction in retailer cross-border expansion programmes. The huge rent paid can undermine the profitability of these locations, curtailing future expansion.” He added: “Our message to retailers is:
would you rather make a statement in a prestige location or put money in the right location? Surely there is more value in developing a network of 100 stores across a country than paying a very high rent to open a flagship store in the most expensive location in the capital?”
MAPIC Lab: the innovation generation IN LINE with retailers’ drive for innovation, Reed MIDEM launched the Retail Lab at this year’s event, conceived to explore the latest trends and influences on the shopping experience. “Changes in consumer behaviour tend to inspire retailers to think about new models that come closer to consumer expectations. In this context, MAPIC Lab’s goal was to give a taste of major market trends,” said Nathalie Depetro, MAPIC director. During the three days of the event, visitors to the MAPIC Lab booth were able to study a map showing prospective retail trends based on four French retailers: Galeries Lafayette, La Petite Robe Noire, Merci and Monnaie De Paris. Proximity, exclusivity, interactivity, sustainability and mixing were among the major new trends represented. MAPIC partnered with online magazine INfluencia, created by Isabelle
Musnik, to publish the first MAPIC Lab magazine, an interactive publication featuring articles, videos, special features and expert views on retail trends (www.influenciatendance.net/mapic). Retailers Galeries Lafayette, La Petite Robe Noire, Merci and Monnaie De Paris were available at MAPIC Lab to discuss their concepts and the wider issue of retail innovation.
MAPIC Lab trend-setters THE LAB FOUR: FOUR FRENCH RETAILERS REPRESENTED DIFFERENT ELEMENTS OF INNOVATION
Trend 1: From customer to custom-actor. Galeries Lafayette used the “You are Fashion” event to maximise its role in self-expression and cleverly linked it to connect online with individuals.
Trend 2: A unique, tailor-made, luxury experience... made accessible.
Trend 3: When acts of passion and authenticity add soul to sales ambitions, it attracts all publics, erasing existing borders.
On September 30, 2010, the Galeries Lafayette started Paris Fashion Week by organising the world’s biggest Fashion Show throughout France and Berlin. In total, 4,000 participants were recruited online to walk a catwalk over two km long. The Guinness Book of Records listed it as the world’s biggest fashion show. Established in 1895, the Galeries Lafayette has always been at the forefront of trends with many brands, ranging from accessible to very high end.
Didier Ludot is a fashion collector who opened his Parisian vintage boutiques in 1976, with a private collection of over 5,000 haute-couture pieces. In 1999, he dedicated an entire boutique to the little black dress, creating 13 exclusive pieces with the help of stylist Felix Farrington. Following a decade of success, La Petite Robe Noire is now challenging traditional commercial settings with corners in luxury hotels and ephemeral stores to satisfy the needs of an upscale feminine clientele.
MERCI is a shop like no other which opened in March 2009 in Paris. On 1500 sq m, it combines contemporary design with fashion brands, vintage pieces as well as home furniture, and more. All their profits go to help deprived children in Madagascar which indeed inspired the name of the store: MERCI (Thank you!). MERCI owners took on the challenge of opening their store on Boulevard Beaumarchais, helping transform the neighbourhood in less than two years.
www.galerieslafayette.com
www.didierludot.fr
www.merci-merci.com
Trend 4: From heritage to branding, an example of urban regeneration into a landmark.
is set to regenerate Monnaie de Paris in its premises over 2011/2012. The project includes opening the building to 6 entrances, offering workshops, diversifying the retail offer, creating two new restaurants and highlighting a strong cultural programme.
The Monnaie de Paris is one of the oldest French institutions, located in the ‘Hotel de la Monnaie’ building; it holds the monopoly of manufacturing coins for the French Republic. The MetaLmorphoses project, launched in 2007,
www.monnaiedeparis.fr
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In search of standard bearers FINDING THE RIGHT PARTNER WITH WHOM TO ENTER NEW MARKETS IS A GROWING CONCERN FOR RETAILERS. ANIKA MICHALOWSKA AND MARK FAITHFULL LOOK AT THE ISSUES SURROUNDING THE DIFFERENT STRATEGIES FOR EXPANSION
D
IFFERENT routes to expansion were one of the key topics debated at MAPIC, with retailers adopting a wide range of strategies and a strong focus on master franchises. A conference co-organised by the French Federation of Franchise and Franchise Expo Paris explained why master franchising is often the best strategy for breaking into emerging markets. Laurent Breyne, legal manager, competition, at French sports retailer Decathlon, and Dominique Munier, general director of the rapidly expanding French florist Groupe Monceau Fleurs, described their international experiences. Both advised following certain rules, such as proceeding step-by-step after having thoroughly researched the new market in question. Monceau Fleurs, which continues to expand across its current as well as new markets, has implemented an innovative approach, whereby it signs a
joint venture with its master franchisee. “The advantage of such a set-up is that the relationship with your master franchisee is not only financial, but you are also in a real partnership with them, so development is much quicker,” Munier said.
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The Middle East
is a good example of the best and
”
worst
Phil Evans
"We are pleased with this year's MAPIC," said Landmark Group, which is already present in 15 Middle Eastern countries. In Cannes, it was focusing on managing and growing the group's portfolio of brands via an ambitious strategy of expanding first
Landmark Group: A Middle Eastern franchise operator heading west
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in the Middle East, North Africa and India, followed by a second phase into Russia and Poland. However, a franchise partner must be chosen very carefully, added Phil Evans, director of retail leasing at Al Futtaim Group Real Estate, which both develops retail centres and operates as a franchise partner. "The Middle East is a good example of the best and worst," Evans said. "A number of the local franchise partners do not fully appreciate the brand representation and they do not do their retailer partners justice. I think it will become a growing issue."
said. "Instead of negotiating on rental levels, we are discussing a fit-out contribution. This helps with capital issues for the franchisee and then the funding is paid back through the rent level."
TIPS FROM THE TOP WHAT are the eight steps to a successful franchise agreement? According to Jean-Michel Illien, chairman of Franchise Management, they are: 1. Identify the concept 2. Formalise it
Andrew Hardy, international director of the Romanian-focused retail developer RED Management, noted that, in Central and Eastern Europe, there are also issues about finding franchise partners with sufficient finance to back expansion. In response, RED is talking to retailers and local partners about fit-out finance deals. "For us it’s a logical extension," Hardy
3. Standardise 4. Experiment 5. Identify the potential 6. Promote the business 7. Ensure after sale service 8. Innovate
India: At MAPIC to promote franchise opportunities
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Powered by retail RETAILING REMAINS AT THE HEART OF MANY CITY REGENERATION PROJECTS. ANIKA MICHALOWSKA CONSIDERS A SELECTION OF THE EUROPEAN SCHEMES THAT ARE REIGNITING THE CONTINENT’S URBAN RETAIL OFFER
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HE HIGH number of mayors and top-level city and regional representatives in Cannes underscored MAPIC’s increasingly valuable role as a showcase for urban retail-development schemes. In addition to long-time exhibitors such as Lyon, Dunkirk, Mulhouse, Marseille, Lille, Nantes, St Nazaire and Calais, MAPIC 2010 welcomed several newcomers, including Reims and Poitiers. Belgian, Italian and UK cities were among the other European local authorities well represented. Paris continues to attract major retail investment. On the outskirts of the capital, in Aubervilliers, the 56,000 sq m Le Millenaire shopping centre (developed by Klepierre/Icade) will open next year. In metropolitan Paris, in the 15th district, the rebuilt Beaugrenelle shopping centre will open in 2013 and is probably the leading real-estate project in Paris. The partners in the scheme — Gecina, Apsys, Fonciere
Euris/Rallye and Paris Orleans — also partnered with MAPIC for the Opening Night Party. The Retail In The City Summit — a new event for 2010 — underlined the importance of retail players as main partners in city strategies. Binche and Kortrijk, both in Belgium, were highlighted as examples of this approach, while a public-private partnership between local government and the Russian company Sovcomflot enabled the development of Grand Marina Sochi. Indeed, as a catalyst for town centre management, Belgium’s Association du Management de Centre-Ville (AMCV), emphasised for success the importance of using a “neutral player” such as itself, whether at regional or federal level. TCM Italia also stressed that its plan is a long-term programme that provides “small improvements but constant growth” and said: “We
Paris Beaugrenelle, the biggest retail project under way in the French capital
Grand Marina Sochi: PPP acted as catalyst
pledge to stand by towns in this challenge, guaranteeing the necessary neutrality, essential in creating a partnership.” Among the notable renovation programmes presented during MAPIC was the Mulhouse Grand Centre project. Jean Rottner, mayor of Mulhouse, explained that the city and its partners are investing €30m over the next six years in a vast urban-renovation programme in order to create a new image for the city centre. Marseille exhibited its extensive renovation project for the Stade Velodrome and the 24,000 sq m Prado shopping centre. Reims, meanwhile, has partnered with Vinci Immobilier on the ambitious Pont-de-Vesle renovation project, which encompasses the whole Reims conurbation. Bernard Cazeneuve, deputy mayor of
Cherbourg, stressed the importance of the Les Eleis shopping centre, which is being developed with Carrefour Property and Financiere Duval. “Cherbourg has invested €200m in urban renovation and the Les Eleis shopping centre is the leading element of this project,” Cazeneuve said. In addition, Romilly-sur-Seine presented Romilly’s Gates, which includes the conversion of an airfield into large multi-sector schemes, while Poitiers showcased its projects to develop the heart of the city.
“
Cherbourg has
invested €200m in urban renovation Bernard Cazeneuve
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The age of transparency THE ROLE OF ONLINE AND DIGITAL TECHNOLOGY CAPTURED ATTENTION AT AN UNPRECEDENTED LEVEL AT MAPIC 2010. MARK FAITHFULL REPORTS
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T THIS year’s MAPIC, online retail, the role of mobile phone-based buying, iPhone apps and social media were discussed as never before. The shape of retail space is likely to be changed by the advancements, a panel of experts concluded at Jones Lang LaSalle’s interactive session, which used JLL’s 2020 Vision report as the basis for a debate about future retailing. A panel comprising Scott Abbey (Footlocker Europe), Richard Collyer (Abercrombie & Fitch), Josip Kardun (ECE), John van Haaren (Corio Nederland) and Marcus Wild (ICSC European advisory board and SES Spar European Shopping Centres)
“
Retailers will have
to really be on top of
”
customer service Scott Abbey
stressed that technology will demand that retail becomes increasingly transparent, putting more power in consumers’ hands. The panel debated the speed at which technological advances will be rolled out to capture the growing number of ‘digital natives’. To better understand this growing consumer group, Corio CEO Van Haaren noted that his company now provides iPhones to all staff members with instructions to download and interact with all the services available. On the social-media front, Abbey, who is vice-president of Footlocker Europe, also warned that retailers will need to become “very transparent” in everything they do in a world where bad customer experiences can be disseminated to millions through social media. “Retailers will have to really be on top of customer service and social media will create a different relationship,” Abbey added. Elsewhere at MAPIC, Foruminvest chairman Michel Riaskoff described his company’s community engagement efforts with in-mall TV, social media
The iPhone has revolutionised mobile applications for consumers
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Stepping up community engagement: Foruminvest has teamed up with a local dance class to bring mob dancing to its Kortrijk centre in Belgium
and mob dancing, while the UK photographic retailer Jessops said it is using e-commerce to drive customers to its stores. Jessops’ executive chairman, David Adams, reported that online sales only account for 20% of his company's
business — but, significantly, 70% of those online customers choose to collect their purchases in-store. “The customer for specialist products still likes to be able to talk to someone,” Adams said. “Plus it's an opportunity for us to up-sell.”
FIVE KEY E-TAIL TRENDS 1. Mobile internet traffic is set to multiply by 40 times over the next five years. 2. There will be a decline in the volume of consumers and their spending power, as baby boomers retire and the number of young adults falls. 3. Fulfilment of online purchases will need to be extraordinary going forward and home delivery will need to become cheaper and more rapid. 4. Retailers will have to adjust to how they use their physical space, incorporating more showroom formats and establishing shops that are integrated into distribution networks. 5. Digital natives are willing to engage with retailers and shopping centres through social media if it is relevant. Landlords, however, have remained relatively quiet so far.
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