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OCTOBER 2016

mapic

www.mapic.com The official Mapic magazine

®

PREVIEW

Trends Hub

11

Retail expansion

25

Around the world

39

Also inside: • MAPIC Awards • Retail investment • New mall openings • Development pipeline

Highlighting specialty leasing, 012_FOTODIASTASI_PV_PIC startups, digital and retailtainment

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New markets, new retailers and a new world order for real estate

MAPIC expands its brand with events in Italy, Russia and China

• Europe • Asia • Americas • MENA

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Where do you go everyday to:

Meet Friends? Have fun? Relax? Entertain kids? Eat out? Keep Fit? Watch Movies? Shop? Together @

MAPIC Stand R7.E38 mapic.shopandmeet.com


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Editorial WELCOME to the MAPIC 2016 Preview magazine. This will be the 22nd edition of the international retail property market and we will welcome over 8,000 delegates including some 2,000+ retailers and 2,300 developers to an event which continues to grow in both its global coverage and the diversity of themes it embraces. Reflecting that increasing scope, O2O (online-tooffline) will be this year’s central topic and will be represented specifically at our new Trends Hub, which brings together in a 1,000 sq m zone the areas of specialty leasing, digital and retailtainment in one dynamic space. Innovative exhibitors and participants will also be supported by a wide range of conferences, pitching sessions and presentations. It means that alongside our many long-term participants we will also see such names as Google, Clear Channel, Salesforce, iP2Entertainment, Paris&Co, Seedcamp, Kodisoft, Kiabi and Pro Urba, to name just a few, appear at this year’s event. We will also introduce more food & beverage to MAPIC, with food trucks outside the Palais des Festivals representing new and exciting names in catering, as we continue to focus on the trends shaping retail and translate these concepts through exemplar projects, companies and thought leaders. With at least 74 countries represented at MAPIC, the event continues in its role as the international retail property markets’ annual reference point and we are delighted to welcome more companies from beyond Europe to Cannes this year, including those from China, North Africa, the US and Japan. But this has also been an historic year for MAPIC, as we launched our debut MAPIC Italy event in Milan, ran our second MAPIC China Summit in Shanghai and welcomed Russian retail real estate event REX to the MAPIC family for the first time. Truly, MAPIC has become the global platform to connect a global retail real estate industry. So, this November promises to bring a more exciting and fascinating edition of MAPIC than ever before, culminating in the MAPIC Awards, where we celebrate the best of this vibrant and ever-changing industry. I look forward to welcoming you all to Cannes. Until then, I hope you find this MAPIC Preview a stimulating and thoughtprovoking introduction to what is in store for participants. Nathalie Depetro: Director of MAPIC

preview magazine I October 2016 I www.mapic.com

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Contents Your MAPIC experience

MAPIC Awards

How to get here • Your badge and registration • Must-attend events • Must-visit areas • Meetings and Map

The 2016 MAPIC Awards include several new categories, introduced to reflect the breadth of innovation in an evolving retail world

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SPECIAL SECTION

Trends Hub To the trends of the earth For the first time at MAPIC, specialty leasing, pop-ups, digital and retailtainment have been brought together in one place

Retail Retail overview

11

Countries 25 & Regions 39 25

Around the world

39

CONFERENCES & EVENTS PROGRAMME

43 Benelux

61

It’s been a bumper year for the Benelux, with retail recovering strongly

Nordics

65

In a globalised consumer market, retailers are increasingly reaching out into new territories and creating international store networks

Reflecting the industry it serves, MAPIC has expanded its platform with events held in Italy, Russia and China this year

With Swedish capital Stockholm as the gateway, the northern-most territories of Europe are enjoying unprecedented interest

New markets

France

Russia & CEE

28

As Western Europe and the US mature as retail markets, the search is on for those locations offering the most enticing risk to return rewards

Showcase

32

MAPIC will once again host a wide selection of new and growing retailers, keen to make their mark and to shake up the status quo

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67

The French retail market remains robust, with a number of major new real estate schemes set to open in the coming months

The Polish powerhouse is being joined by other CEE countries, while Russia adjusts to a maturing development market

Germany & Austria

Turkey & MENA

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73

Dependably dependable, Europe’s largest market continues to offer retailers, developers and investors a stable proposition for growth

At this year’s MAPIC, North African retail developments will join Turkish and Gulf operators to showcase their opportunities

UK

Americas

53

79

Post-Brexit vote, the UK has defied gloomy predictions and has continued to push forward with a strong development pipeline

The US will have a major presence again this year, while neighbouring Canada and Latin America attract capital inflows

Southern Europe

Asia

57

Italy, Spain and Portugal have bounced back from the financial crisis to become some of Europe’s hottest retail destinations

86

China’s huge consumer base may rightly capture the headlines but Asia’s retail potential stretches across the whole continent

preview magazine I October 2016 I www.mapic.com

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New York SoHo NoHo Tribeca Union Square Upper East Side Madison Avenue Brooklyn The Bowery Midtown Connecticut Greenwich Westport Chicago The Gold Coast The Loop West Loop Magnificent Mile Lincoln Park Lakeview Wicker Park Washington D.C. Georgetown Dupont Circle Boston Cambridge Georgia Savannah Broughton Street San Francisco Union Square Pacific Heights

Retail Leasing Contact: Meghan Kruger mkruger@acadiarealty.com 212.324.1255 330 Madison Avenue | Suite 3105 | New York, NY 10017

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Your MAPIC Experience 16-18 NOVEMBER 2016 Palais des Festivals, Cannes, France

15 November: Welcome Reception 19.30, Majestic Hotel

OPENING TIMES MAPIC 2016 Opening hours 16-17 November: 08.30*-19.00 18 November: 08.30*-17.00 * Access from 08.00 for exhibitors

MAPIC 2016 Registration hours 15 November: 09.00-20.00 16-17 November: 08.00-19.00 18 November: 08.30-15.00

We look forward to welcoming you in Cannes, but first here are some tips to prepare your Journey to MAPIC

Prepare for the Trade show in 3 steps Visit MAPIC website to organise your travel • Book your transportation & accommodation with our partners to get the best deals • Check the Conference programme & Pitching sessions

Plan your agenda and connect to partners in one click

Your badge: your key to getting into MAPIC

• Download the Mobile App – Synchronised with the database and your email box – Interact live during sessions

Did you receive it by post? Don’t forget to put it in your luggage.

New !

You have only your confirmation email? Pick up your badge at the registration area. New location: Palais1 Be sure to check the registration hours above.

– More networking features & services to meet business partners! – Locate yourself and the stands on the 3D map • Log into the Online database to – Fill out your profile and personalise your agenda – Organise business meetings – Browse participants and attending companies

Save time with the e-ticket Print it out to collect your badge at a self-service delivery point or download the Mobile App and connect to your account. Please carry it all times, and be ready to show it at entry points around the area. Your badge is strictly personal and non-transferable.

Onsite meet decision makers and get an overview of the market trends Connect, learn, share

MAPIC Awards Gala Dinner Thursday, 17 November, 19.30 Salon des Ambassadeurs Palais des Festivals

Welcome Reception Tuesday, 15 November, 19.30 Majestic Hotel

Book a seat/a table: laurene.dureault@reedmidem.com

Open to all

MAPIC Awards 2016 Official Sponsor

MAPIC Official Sponsor

Networking events* inside the Palais des Festivals • Speed Matching • Mix & Match * more information online and on the Mobile App

3 DAYS OF CONFERENCES & NETWORKING EVENTS

MAPIC Official Sponsor

MAPIC Party Thursday, 17 November, 22.00 Palais des Festivals - level 4 Open to all

MAPIC Official Sponsor

See the programme p.43 and plan your journey preview magazine I October 2016 I www.mapic.com

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Your MAPIC Experience New this year:

General map of MAPIC

a unique 1,000 m2 zone!

The 400m2 Innovation forum will host innovative solutions and technologies. Exhibition and Pitching sessions.

The power of pop-up business. Over 30 brands will be exhibiting for a half a day each.

The 600m2 retailtainment pavilion will feature international exhibitors with a pitching area for them to present their concept in 30-minute sessions.

Startups with solutions for shopping centres and points of sales will be pitching and showcasing their services & technologies. Exhibiting time: 1 day per Startup.

Food court A specific zone dedicated to Food & Beverage retailers between the beach and the Riviera hall. Discover and taste pioneering new consumer trends and the latest F&B concepts.

KIABI Surprising Store For the first time, this zone of 600m2 comes alive with the pop-up Kiabi. Discover the newest technologies to build a seamless shopping experience.

Transact What rooms can you use for your meetings? Visitors’ lounge (Palais -1)

Press club (Riviera 7)

• Intended for participants without a stand • Includes a meeting area, hostesses to help organise your meetings and free coffee • For meetings of a maximum length of one hour

• Dedicated to journalists • Includes computers, Internet connection, printers and the assistance of a permanent staff member

Chairman’s club (Palais 1)

Gold club (Palais -1)

Sponsored by

• Exclusive club reserved for chairmen, by invitation only • Includes refreshments and a dedicated staff

• Intended for gold members of our Customer Recognition Programme • Includes a private lounge area, international press, PC & Internet access

See you in Cannes!

Book your Hospitality suite (Palais -1) • Meet your client in a smart private meeting room • A 15-sq m private space available for each of 3 days (lounge area, work meeting area, coffee, soft drinks) Deadline: 19 October 2016 Contact: daniela.jakovljevic@reedmidem.com

For further information: www.mapic.com • Help desk: +33 (0)1 79 71 99 99

mapic PREVIEW The offi cial MAPIC magazine October 2016. Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor-in-chief Mark Faithfull Technical editor-in-chief Herve Traisnel Deputy technical editor-in-chief Frederic Beauseigneur Graphic designer Carole Peres Contributors Ben Cooper, Aurore Dewas, Debra Hazel, Isobel Lee, Liz Morrell, Helen Roxburgh, John Ryan Sub-editor Joanna Stephens Proof reader Debbie Lincoln PRODUCTION DEPARTMENT Publishing director Martin Screpel Publishing manager Amrane Lamiri Publishing co-ordinators Emilie Lambert, Yovana Filipovic, Veronica Pirim Printer Riccobono Imprimeurs, Le Muy (France) Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2016, Reed MIDEM Market Publications. Publication registered 4th quarter 2016. ISSN 1961-022X. Printed on PEFC certified paper. ®

preview magazine I October 2016 I www.mapic.com

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Awards

The Jury

New categories in expanded MAPIC Awards for 2016 This year’s MAPIC Awards have been broadened to reflect the growing diversity of the retail real estate sector and the new players influencing the future of the industry

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HE MAPIC Awards will be presented at a gala ceremony on Thursday November 17 at the Salon des Ambassadeurs, Palais des Festivals, in Cannes, with this year’s expansion to 12 categories reflecting and recognising the diversity of the global retail real estate sector. A hugely experienced awards jury — headed by Primark group director of property, Thomas Meager — and drawn from all areas of the retail world and all corners of the globe made the final decision for the best in class of 2016. The 12 categories are: Retailer Of The Year (new for 2016), Best Retail Global Expansion, Best New Retail Concept, Best Retail Store Design (new for 2016), Best O2O Strategy, Best Pop-Up Shop, Best Retailtainment Concept (new for 2016), Best New Shopping Centre, Best Redeveloped Shopping Centre, Best Outlet Centre, Best Retail Urban Project and Best Futura Shopping Centre (new for 2016).

The growing reach of the Awards was reflected last year in winners which included Five Guys from the US, La Rue Hopshop (France), Time Warner Center — The Shops at Columbus Circus (US), Primark (Ireland), Tanya Heath (France), Vapiano (Germany), Magnum Pleasure Store (UK), Milaneo (Germany) and Allegro Setubal (Portugal). The awards are sponsored by Cushman & Wakefield alongside main MAPIC sponsor Thor Equities and the ceremony will be attended by 250 of the most influential retail real estate professionals. FOR TICKET INFORMATION Please contact Laurene Dureault – MAPIC Awards coordinator, at mapic.awards@reedmidem.com MAPIC Awards 2016 Official Sponsor

President Alain of the jury Thomas MEAGER BOUTIGNY

Group Director of Property Editor in Chief Sites Commerciaux Primark France United Kingdom

Edoardo FAVRO

CEO Gallerie Commerciali Italia Italy

Mayte LEGEAY

Country Head Neinver France & Business Development Director Neinver — France

Managing Director, Russia and CIS JLL — Russia

Barry HUGHES

Frédéric LALOUM

Sam POLESE

John SCOTT

Senior Vice President HOK United Kingdom

General Manager Leasing & Member of the Executive Board Altarea Commerce — France

Executive Vice President Director of international Thor Equities business development USA Debenhams United Kingdom

Klaus STRIEBICH Justin TAYLOR

Managing Director Leasing ECE Projektmanagement Germany

Thomas DEVONSHIRE -GRIFFIN

Head of EMEA Retail Cushman & Wakefield LLP United Kingdom

Franck VERSCHELLE

President & CEO Advantail France

MAPIC 2016 Official Sponsor

preview magazine I October 2016 I www.mapic.com

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IT’S NOT TOO LATE

TO PLAN YOUR VISIBILITY FOR MAPIC 2016. MAKE SURE THE WHOLE MAPIC COMMUNITY KNOWS YOU!

ONLINE

Reach MAPIC’s digital community wherever they are.

PRINT

Discover our print tools, MAPIC mapic read by all the participants: N° dossier : 20141493E • The News Date : 07/08/2015 • My MAPIC GuideAC/DC validation : • The Directory Client validation : • The Floorplan

PROMOTE PROMOTE your company, your brand and your projects 10

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SPECIAL PACKAGE FOR THIS YEAR!

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THE VISIBILITY BOOSTER Offering you a mix of online, print and onsite visibility for only

€250 Contact adriana.filip@reedmidem.com for an advertising strategy that meets your needs.


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Trends Hub

To the trends of the earth New to MAPIC is the Trends Hub, which brings the specialty leasing, digital and retailtainment themes together, reflecting their growing importance. In this special report, Mark Faithfull outlines what to expect, starting with a special infographic on online-to-offline (O2O)

NEW THIS YEAR!

A unique 1,000 m² Hub dedicated to solutions to add value to your business

Palais des Festivals Hall -1

Access to Riviera 7 & 8

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For the first time at MAPIC, an official track dedicated to O2O & Innovation has been created. Attend our five conference sessions focusing on phygital, data, pop-up stores, millennials, seamless experience. 40+EXCLUSIVE CASE STUDIES Learn from international experts and discover retail concepts: • Specialty Leasing and pop-up stores • Innovative digital solutions • Startups pitching

preview magazine I October 2016 I www.mapic.com

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Trends Hub AN INCREASINGLY OMNICHANNEL CUSTOMER JOURNEY

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APIC 2016 provides an overview of an emerging key trend: the constant interconnection between online and offline business. Two major changes are taking place: first, internet pure players are opening boutiques, and second, consumers are adopting a hybrid client journey, combining websites and physical sales outlets. This new global phenomenon offers opportunities for business development.

70%

68%

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1

of consumers search for products online before buying them in stores

of consumers search for products in stores before buying them online

WEBROOMING

SHOWROOMING

TOP 3 REASONS TO BUY… …ONLINE1

1 Lower prices 56%

…OFFLINE1

2

3

24/7 shopping

No need to go to a store 40%

46%

1

2

3

Being able to see, touch and try goods

Getting products immediately

Ensuring that products are suitable

60%

WHY USE A MOBILE PHONE WHEN SHOPPING IN STORES?

53%

33%

WHAT DO THEY LOOK FOR? Top reason: to compare prices2 The top five countries where consumers say they regularly compare store prices on their mobile phones:

90% of Chinese smartphone users have already used their phones to search for information at the point of sale2.

South Korea 59%

China 54%

Turkey 53%

Brazil 47%

Mexico 44%

LEARN MORE ABOUT THIS GLOBAL TREND AT MAPIC 2016 ¹ PWC 2015 - Total Retail: Retailers and the Age of Disruption -

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DigitasLBi – Connected Commerce 2015

preview magazine I October 2016 I www.mapic.com

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MAP

Trends Hub

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WHAT ARE THE ADVANTAGES TO SET UP OFFLINE STRATEGIES?

FOR RETAILERS, BRANDS, E-PLATFORMS AND CONCEPTS STORES Increased brand recall

New metrics (client journey, stock management, customer flow management, ...)

Higher visibility

FOR THE CUSTOMER Local services

Omnichannel strategy

Personalized services

A memorable experience

(e.g. available online and offline)

(practical, informative, fun, etc.)

(e.g. click and collect)

HOW TO IMPLEMENT THEM? ...PHYGITAL3

…EXPERIENTIAL

to offer exclusive services to shoppers

to offer differentiating experiences

(self-service tablets, devices, special offers, orders and payment without going to the check-out, etc.)

(shop-in-shops, pop-up stores, showrooms, kiosks, concept stores, etc.)

...LONG-TERM to create consistency and boost loyalty

For over 20 years, Mapic has been the place for retailers to shop for their new store locations. Today, it is also transforming into a destination for innovative retail concepts, partners and digital solutions. It’s an ideal place for Salesforce and our Shopper Success Platform, which empowers retailers to connect with their customers in a whole new way and is at the crossroad in connecting all parts of this dynamic retail ecosystem. We’re excited to partner with Mapic! Pamela Wolf Director Strategic Innovation at Salesforce

Nowadays, the frontier between online & offline gets blurry: for instance, consumers search online before buying in store or compare prices with their mobile in physical stores. Google is closely collaborating with retailers and partners around the globe to develop online to store and omnichannel retailing solutions. Together with Mapic, we share the common objective to promote a seamless shopping experience for customers in an omnichannel world. Cyril Grira Industry Head Retail at Google

Emmanuel Begerem Head of Channel Partnerships at Google

6 EXAMPLES OF PURE PLAYERS MOVING FROM ONLINE TO OFFLINE

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AMAZON

CAPITAL ONE 360

EBAY4

Hundreds of Amazon Lockers set up since 2011 in the United States and the United Kingdom since 2015 in France and Germany

11 boutiques created since February 2014 in the United States

First pop-up store launched 1-5 December 2013 In London

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KARL LAGERFELD

LDLC

SÉZANE

1 digital concept store created March 2013 Paris

15 boutiques created since 2013 in France

1st showroom, L’Appartement Sézane, launched October 2015 Paris

physical + digital, the digitization of points of sale - 4 https://www.ebayinc.com/stories/news/ebayuk-pop-up-shop/

preview magazine I October 2016 I www.mapic.com

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Trends Hub

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HIS year at MAPIC, 1,000 sq m of space will be dedicated to a new Trends Hub, which clusters a series of zones focused on innovation, speciality leasing/pop-ups, retailtainment, leisure, digital, and food and beverage (F&B). The initiative not only reflects the growing importance and influence of each of these topics on retail real estate, but also their growing inter-dependence and inter-relationships. To create the Trends Hub, MAPIC has designed a dynamic programme that includes pop-up exhibition space, pitching sessions, demonstrations and an associated food area outside the Palais, with trucks operated by

“MAPIC is reflecting the huge importance that consumer engagement now plays in the retail experience” Nathalie Depetro, Director of MAPIC

>>

EXPERT INSIGHTS How do you see/picture tomorrow’s retail? I strongly believe that the key differentiator for retailers will be data; how well they analyse clients’ data, how they manage that data and how smart they are with that data. It is very important to realise that the data revolution is not just about marketing: data is impacting the whole value chain and creating new opportunities to improve Google’s Francois Loviton business models. Consumers have more and more power. They want retailers to work for them. They want personalised, smart, seamless shopping experiences and mastering data is the best way to deliver this — both online and offline. What has changed? What are your main challenges? Mobile has become the heart of the shopper revolution, with 36 million smartphone users in France alone and more than three million smartphones sold for Christmas in France. It gives more power to the shoppers: they have become omniscient with a smartphone in their hands at anytime! An average consumer has 150 interactions per day with his/her smartphone, some related to shopping and looking for inspiration, a nearby address, booking or buying online. We recently passed what we called the ‘Mobile Moment’ on Google Search, at worldwide level. We see now more queries from mobile devices than desktop or tablet. Our main challenge is to convince our retail clients of the full value of mobile, which is bringing a huge amount of new signals to be captured, resulting in both on-andoffline data to leverage. How do you deal with those changes? We help and support our retail clients with their ‘test and learn’ approach regarding mobile. First, we work with them on insights on shopper behaviour and journey: which device do they use? What is the mobile period? Where are they influenced? Where do they buy? Second, they need to make sure their digital services and assets are in line with these behaviours: are their websites easily and quickly accessible from mobile and desktop? Are their offline stores present online? Do they need to extend their presence to other platforms. Third, retail digitisation enables retailers to continuously measure reliable results based on large samples of data. Francois Loviton, director retail France, Google

ON THE STARTUP LINE AT MAPIC 2016, a number of Paris&Co startup companies will be presenting their services and products. “It’s such a great opportunity for them, as MAPIC is one of the largest showrooms for retail,” says Lea Galice, project manager at Paris&Co, which is the economic development and innovation agency for Paris. In addition to fostering Parisian innovation through the incubation of startups, Paris&Co promotes the attractiveness of the French capital abroad, and organises events and co-operation between startups and global players. “And we run the Club Open Innovation, which includes 70 members from the largest French companies,” Galice adds. Similarly, Seedcamp — a leading European early-stage investor — puts capital into pre-seed and seed-stage startups, providing up to €200,000 and a lifelong platform of learning, networking and capital. Seedcamp, which has also been working with MAPIC, has built up a portfolio of more than 200 companies since its formation in 2007, including TransferWise and Property Partner. “With a deep ‘prop tech’ portfolio, Seedcamp is excited to help MAPIC attendees see what’s coming down the line,” says Seedcamp’s ‘entrepreneur in residence’, Taylor Wescoatt. Among those heading to MAPIC are: Voyage Control, created to address inefficiencies in delivery logistics by optimising freight arrival and pick-up times at loading docks; Trail App, which helps multi-branch brands to centrally manage staff operations by digitally distributing tasks to local teams; and online booking and reservation platform BookingBug, which has a significant footprint globally and on the UK high street. Also coming to Cannes are Poq, billed as a new breed of mobile app promising to deliver e-commerce and in-store loyalty features at a fraction of the time and cost of other development options, and Rialto, which provides landlords, developers and agents with a real-time view on leasing activities, viewings and asset performance.

preview magazine I October 2016 I www.mapic.com

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NEW YORK

LOS ANGELES

REAL ESTATE LEADER ALONG LUXURY RETAIL CORRIDORS IN GLOBAL GATEWAY CITIES ACROSS PARIS

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Trends Hub >>

innovative and new food brands between the beach and the Riviera Hall. “Not only is MAPIC reflecting the huge importance that these aspects of consumer engagement now play in the retail experience, but we are also bringing these different elements together in a way that matches the dynamism of new retail,” says MAPIC director Nathalie Depetro. “The food area will showcase the huge popularity of street-food vending, pop-up brands will be showcased within pop-up exhibition spaces and rotated throughout the event, startups will be given short sessions to pitch their ideas, and

THE LEISURE PRINCIPLE PRO URBA was born from the merger of two companies in 2011. Pro Urba, founded in 1977, is one of the leaders in the playground market thanks to its pioneering vision. Its merger partner, Divers Cite, has worked with municipalities for more than 25 years to help them to manage their public spaces. Today, Pro Urba has 48 full-time professionals offering a comprehensive solution to private and public companies for their indoor and outdoor areas. Pro Urba assists its clients through the conception, realisation and maintenance of their public spaces, turning ordinary places into attractive leisure destinations and fun playgrounds.

>>

OUT ON THE DIGITAL FRONT

SPECIALTY LEASING LOUNGE: INTRODUCING THE POP-UP BRANDS Within the Trends Hub, MAPIC will be introducing a total of 32 carefully curated retail brands at a dedicated Speciality Leasing Lounge. This is a first at the event and in keeping with the popup nature of the companies being showcased, each will occupy one of eight special booths for just half a day during MAPIC. The brands were sourced in partnership with ten specialist temporary leasing agencies from around Europe, which were charged with bringing in highly innovative and quirky operators. Reflecting the pan-European nature of this initiative, participants include names such as Dock Four (Netherlands); Legami (Italy); Odette Lunettes (Belgium); Ejder (UK); Elikya Beauty, Iceroll (France); Augustina, Olend and Polka Shoes (Spain).

AMONG the many innovations on show at MAPIC 2016 will be Kodisoft, which claims to be the only technology company that makes interactive tables capable of surviving the rigours of cafe, restaurant and food-court environments. Kodisoft has started a project called Interactive Mall Technology, focused primarily on food courts within malls. “We expect to change the entire mall dynamic by replacing standard tables on food courts with interactive ones. Such an installation will become a new communication channel for the shopping mall itself and for its tenants as well,” says the company’s CEO, Dmytro Kostyk. Kodisoft’s IRT Table is, in essence, a very large tablet that doubles as a robust table that can withstand “almost anything you can throw at it”. The internet-connected table can help customers to order food — and do a lot more besides — while waiting for their food to be served. Durable and resilient, the IRT Table’s glass surface is sensitive to human touch and allows customers to pay via contactless payment technology.

Kodisoft’s connected tables

preview magazine I October 2016 I www.mapic.com

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REACHING FOR THE ZSARS The countdown for construction start of Zsar Outlet Village is on. Zsar will be the first premium Outlet village in Finland, and reach the TOP 10 of Outlets in Europe with a sales density of â‚Ź7,800/sqm*.

Opening in spring 2018. Better join us now. *FSP Retail Business Consultants

www.zsar.fi


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Trends Hub >>

NEW CHANNELS FOR BRANDS MALLS are a great location to reach consumers — but only for brands that understand how to engage today’s shoppers. “What brands need to understand is that this is not simply about digital billboards — this is a new medium,” says Clear Channel France’s managing director, Emmanuel Clear Channel France’s Emmanuel Pottier Pottier. “The shopping centre provides an audience open to advertising, but they must be engaged with the right content.” Clear Channel began to develop its mall strategy in 2012. Pottier admits that, at first, it was not easy to persuade a “conservative market that does not always like change”. But, he says, having established a network of over 2,000 digital screens with the likes of Unibail-Rodamco, Klepierre, Altarea Cogedim, Hammerson and, latterly, Carrefour real estate giant Carmila, the programme has moved on to how best to exploit the opportunities. The contract with Carmila began this year and covers 420 sites, including a first phase of 107 centres in France, with 17% of screen time dedicated to Carrefour. “Over 80% of our assets are now within malls,” Pottier says, citing the evolution of the market. “We are handling the delivery and content for Cap3000 and we are starting to sell our consultancy services in other countries. For example, one of our biggest customers is Netflix — not a product but a brand. This is the story we want to tell at MAPIC.”

entertainment and innovation specialists will be able to demonstrate what they can bring to the retail environment.” Within the main space, the Innovation Forum will occupy 400 sq m, and feature 40 stands and 35 conference sessions. It will host innovative solutions and technologies, designed to make retail properties more engaging and boost their value. O2O — online-to-offline — is MAPIC’s central theme for 2016. Also new to MAPIC is the Startup Lounge, where 22 startup companies will show their products and pitch their ideas across four sessions.

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THE BIG ISSUE: F&B MEETS DIGITAL INNOVATION FAST-food operator McDonald’s has been using social media for some time. It is now rolling out Samsung Galaxy tablets across its UK restaurants as part of its Experience of The Future initiative, following successful trials with enterprise mobility management specialist SOTI last year. The tablets enable people to play games, use social media or browse the web in the restaurants. Doug Baker, head of IT restaurant solutions and service at McDonald’s UK, says: “Having listened to our customers, we know that technology plays a big part in all walks of life and being able to access sites when out and about is something they look for. As a result of this, we have installed tablets in over 450 of our restaurants. Customer user experience has been extremely positive. We know this is responsible for driving repeat visits, as the digital transformations are enhancing our customer journey, offering greater choice, comfort and service.” Tablets have been installed in more than 450 McDonald’s restaurants

Around 80% of Clear Channel’s assets are now within malls

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Trends Hub >>

Put together with the help of expert partners, the Startup Lounge will offer a carefully curated set of entrepreneurial propositions. The new Specialty Leasing focus, meanwhile, will see 36 brands and eight demonstration stations rotated on a half-day basis, reinforcing the pop-up approach to bringing fresh ideas to retail arenas. The largest section of the Trends Hub is the 600 sq m retailtainment area. Focusing on leisure concepts and entertainment operators, this will feature 30 stands and 30 conference sessions. n

EXPERT INSIGHTS How do you see/picture tomorrow’s retail? We believe that retail will change dramatically in the future to meet shifts in population, demand and technology. Large cities will continue to grow in population and commerce. A mix of online commerce, other new technologies and consumer interest in buying experiences over products will chip away at traditional shopping. Competition between large retail shopping The iP2Entertainment team centres will increase and will require differentiation to survive. There will be a mix of large, resort-style retail centres and smaller, boutique shopping alternatives. Retail operators will create new anchor partnerships with entertainment brands and these attractions will act like a magnet. These new entertainment-driven anchor partners will also act as the marketing motor of the mall. They will allow operators to increase consumer time and spend at retailers, generate additional revenue from off-peak traffic and special events, attract new tenants, and increase the overall value of the property. What has changed? What are your main challenges? Shopping mall operators will need to become much more proactive marketers. They will need to communicate with their community and other target audiences through their website, email, mobile and social platforms, and organise ongoing events to keep consumers coming back. They should be in touch pre- and post-event and continue to stay engaged with their audience. This will require ongoing community building, planning and lifestyle campaigns. Entertainment attractions are an important component of that marketing effort and part of the important process of converting the mall into an entertainment destination. How do you deal with those changes? At iP2Entertainment, we only believe in high-end, branded experiences to be, and stay, unique. Some of the anchor retail brands are now in multiple malls in each large city, which brings less value to each individual mall. Mall operators may be tempted to copy what they see elsewhere, but there is far greater upside in generating new experiences that consumers, tenants, press and corporate partners won’t find anywhere else. Roger Houben, CEO, iP2Entertainment

THE BIG ISSUE: VR AND GAMIFICATION THE OUT-of-home virtual reality (VR) experience will be at the heart of AR/VR specialist AiSolve’s MAPIC mission, according to CEO Devi Kolli. The company will be demonstrating the pre-launch of a new VR experience aimed at malls and leisure attractions. “We will have an interactive, multi-player demonstration zone, which will really show the difference between the free hand-out-type technology — which has its place — and the much higher quality of these types of installation, which is what people demand.” AiSolve is in advance discussions in the Middle East and the UK for future retail installations. Kolli believes that VR will become a much more prominent part of retail destinations: “We can see the divide between convenience online shopping and the experience of going out. Shopping centres provide that social element and these modular systems give visitors something engaging and interesting. Our demonstration will focus on the teenage market with an alien combat experience, but it could be developed into a catwalk experience, for example, to complement a retailer’s offer.” Kolli is in no doubt that the adoption of VR will become widespread. She says that the modules people have seen to date, “while exciting because they are new, have actually been quite boring in content”.The latest generation of content and technology — wireless and making use of physical/virtual props and motion — will be far more engaging, she predicts. Meanwhile, French fashion brand Kiabi will be bringing its humanoid robot ‘Pepper’ to the Harbour Station just outside the Palais with a technology-packed pop-up store. Pepper debuted in September at Val d’Europe following trials, and further appearances are planned in other stores. Programmed to interact with consumers, Pepper encourages customers to take photos and then share them on social networks. The initiative reflects a collaborative approach from Kiabi, which launched an internal digital platform for employees to propose ideas and innovative products. By the end of the year Kiabi will be testing interactive showcases that allow passersby to view the collection as holograms and this will also feature at MAPIC.

AiSolve will demonstrate its high-quality VR installations at MAPIC

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Trends Hub THE BIG ISSUE: LEISURE LEISURE has not only become more popular — it has become bigger. Mexican-derived KidZania provides ‘edutainment’ on a massive scale and the concept is now present in London, Lisbon and Istanbul, and under construction in Moscow. Meanwhile, KidBurg was opened by the Association of Interactive Museums in St Petersburg in 2011 and launched in Moscow last year. Targeted at children and teenagers, KidBurg offers role-playing activities focusing on professions. Similarly, KCC has been working on several projects closely related or integrated within a retail environment, says Reinhart Viane, business development director, who cites the five entertainment facilities within Doha Festival City Mall, Qatar as benchmark schemes. “In Angry Birds World both the games and the movie are represented in an indoor and outdoor theme park, while Snow Dunes is a unique and fun indoor snow and ice playground with a unique Qatarii storyline. Juniverse is a space-themed edutainment

park and Virtuocity, a gaming related theme park,” he says. KCC has also been working on the design of a 35,000 sq m indoor theme park for Wanda Mall in Nanjing. Besides several unique attractions, such as an interactive rollercoaster, each attraction has a theme that refers to Nanjing culture. “Although a lot of developers and owners still approach entertainment as ‘another tenant’ — with the related income — we are seeing greater understanding of the true added value of entertainment,” says Viane. “Early adopters are already looking more and more to entertainment all over the mall and not just in a dedicated area. Experience shops such as Bass Pro and Hello Kitty, plus themed restaurants, are initial examples of this. We see this especially in Asia and the Middle East, where competition is fierce and malls are being developed at a very fast pace. We believe that Europe is also heading in that direction.”

KCC’s project in Nanjing

EXPERT INSIGHTS How do you see/picture tomorrow’s retail? Retail tomorrow is about ‘Me-to-Brand’ putting the customer completely in the driver’s seat on where, how and when they want to shop. We’ve seen this coming over the past few years but it was more innovation driven vs customer user need. We’re now at a point where most consumers are spontaneously looking for ‘Always On’ service from their retail experience, matching up with retailers who want to provide it. Many of these retailers are using the Salesforce Shopper Success Platform because it enables them to personalise every customer’s journey, it empowers employees to best represent the brand while delivering a layer of agility to drive continuous innovation and differentiation. What has changed? What are your main challenges? One of the changes we see is that retailers are now stepping up their game and moving from a multi-channel strategy to an omni-channel view of the

customer, aimed ultimately at providing a personalised shopper journey. We’re working with retailers like Macy’s, Burberry and Laduree to help make this shift. How do you deal with those changes? We are constantly innovating to meet our customer’s needs. Innovation happens on our existing platform with new products and Salesforce’s Pamela Wolf solutions as well as via our growing ecosystem of partner companies. And it also happens via acquisitions, like the recent acquisition of Demandware, a global leader in ecommerce solutions. Pamela Wolf, director strategic innovation, Salesforce

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Primark arrived with a big splash in the US last year

Retail overview

Shopping all over the world Global retail strategies, enlarging sectors and a new world of consumers are opening up opportunities for retailers in new and mature markets, writes Ben Cooper

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ITH every year that passes, the global retail property market opens up a little bit more. The world is better connected than ever, previously inaccessible markets are gaining in strength and attractiveness, and retailers are travelling the globe with increasing confidence. That said, it will not come as a surprise that London once again topped JLL’s Destination Retail report this year. The UK capital has long been considered the gateway to Europe and a key bridge between the Eurozone and the rest of the world. But the fact that the Middle East and Asia-Pacific regions are emerging as among the most attractive places for cross-border activity might take some by surprise.

Five of the top 15 most active markets in terms of international retailers taking space this year were in the Middle East, the JLL study found. Of these, Dubai ranked the highest, followed by Kuwait City, Abu Dhabi, Jeddah and Riyadh. But even more remarkable is that Asia-Pacific had the strongest showing of any region on the

“Retailers no longer want to focus on one country … the more each one of us understands about global retail, the better” James Ebel, Harper Dennis Hobbs

planet, accounting for 18 out of the top 50 most international cities in the world. Compare this with US cities, where only one — New York — made it into the top 15. As confidence returns, albeit it in varying degrees globally, retailers are increasingly looking to branch out beyond their own boundaries. James Ebel, director of London-based agency Harper Dennis Hobbs, which has brought a number of US brands to Europe, says that retailers are increasingly looking to build global strategies from their home markets. In response, he says, modern consultancies need to be made up of “advisors who understand all markets”. Ebel adds: “Retailers no longer want to focus on one country. In fact, what I’m seeing from many of our clients is a strong desire to have us advise them on locations across the globe. We are seeing

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Retail overview further polarisation towards global advice, which drives our recruitment policy towards those with experience in a number of markets. We won’t limit our exposure — the more each one of us understands about global retail, the better.” With every emerging market and new opportunity, the world of retail property becomes more diverse. For investors, this is plainly good news — but Raphael Brault, head of separate accounts and funds, and head of France at AEW Europe, says that, within these new options, there are risky bets and safe bets: “Investors need to be very careful and selective, and should generally seek the assistance of experts with local market knowledge. Asian investors, for example, are very cautious and assess risks carefully to make sure they are not making any wrong move. These investors are generally more risk adverse compared to other investors, such as US players who, when investing in Europe, are often willing to take more risk.” Of all the big news stories to have broken since MAPIC 2015 — and certainly one of the most significant — came in June with the referendum decision of the British elector039_IP2_PV_PIC ate to withdraw from the European Union.

“Investors need to be very careful and selective, and should seek the assistance of experts with local market knowledge” Raphael Brault, AEW Europe Defying almost all predictions, the decision sent shockwaves through both the EU and the world, followed by stark predictions about the future of the whole European project, and even gloomier forecasts regarding economic activity in the UK and beyond. But are these fears justified? The simple answer is that it is far too early to tell. But HDH’s Ebel says there have already been indicators — some more encouraging than others, as to the impact of Brexit. “It is of course very early days to obtain a true barometer,” he adds. “Some retailers have decided to put expansion on hold; some have doubled efforts as they see it as an opportunity. And we think that is where the opportunity lies. There will be landlords who might be willing to

secure a lease and won’t be so concerned about getting the perfect rent. Similarly, there have been some landlords and funds that have decided they need to sell, so there is an opportunity to buy real estate below the market level.” But with confidence such a vital factor in crossborder activity, both for retailers and investors, Brault says the next few years will be an important time: “It will really depend on how the negotiations with the EU go. The UK remains a very significant trading partner for many European countries and, hopefully, politicians will find a good middle ground to ensure stability and future economic growth in the region. Nevertheless, I think, in the long term, the UK’s economic growth might be less dynamic than if there had been a ‘Remain’ vote.” n SPECIAL CLIENT SESSION THE CONQUEST OF NEW MARKETS: FROM AMBITION TO REALISATION Sephora will discuss its expansion from and into France respectively at a special session organised on Wednesday, November 16 at 12.30 in J20-K21, Palais level 1. Organised by Procos and Eurelia (Federation of International Retailers), the session aims to help retailers develop in France and beyond. The presentation will be followed by a networking cocktail at 13.15 To register contact barbara.garbowski@eurelia.com

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Posnania from Apsys opens in Poznan on 19 October

New markets

World in motion: a new retail order The mature markets of the EU and the US are still rich with opportunities for retailers and brands. But economic advances throughout EMEA, South East Asia and South America mean few retailers or investors are allowing themselves to be constrained by old habits, writes Ben Cooper

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O GO by global investment activity across all real estate sectors, not just retail, the US is still the hottest overall market. In the top 25 markets, the US took by far the lion’s share with some $500bn of investment, according to Cushman & Wakefield’s (C&W) 2015 International Investment Atlas, with both international and domestic investors attracted across a range of sectors. This was followed by China in second place and the UK in third. For retailers and investors looking for the next hot markets, however, there are plenty of options. For example, while European investment was dominated last year by the UK and Germany, the biggest growth was to

be found in the Nordic region, the Benelux countries and isolated CEE markets. Of these, Raphael Brault, head of separate accounts and funds, and head of France at AEW Europe, believes that changing economic tides mean that CEE is an emerging interest for retailers and investors. “In Central and Eastern Europe, focus remains mainly on Poland and the Czech Republic,” Brault says. “While the office sector in those markets requires a cautious approach, the retail market, on the other hand, is pretty healthy and proves attractive. The CEE markets offer higher returns, which explains investors’ appetite to invest there.” In Western Europe, along with the prime

centres of Paris, Barcelona and Madrid, Lisbon is proving to be a big hit with investors. Buoyed by a major spike in investment activity across Portugal in 2015 — when shopping centre transaction volumes rose nearly tenfold to €700m, compared with €74m in 2014 — Lisbon is becoming an increasingly exciting place to do business. The Benelux region is another European success story. Ending 2015 with a phenomenal 194% year-on-year growth in the second half, the upward trend has continued this year, driven largely by Belgium. Next year, Belgian developer Uplace will go on site on one of the most ambitious projects the region has seen for a long time. The Uplace Brussels

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New markets Uniqlo in Shanghai, looking to expand in a rapidly growing market

“The CEE markets offer higher returns, which explains investors’ appetite to invest there” Raphael Brault, AEW Europe

scheme is set to be a major addition to the capital and offers what Uplace’s former chief operating officer, Bram Thomas, says is a step forward into the future: “It will be an allin-one experience destination. Retailers are more cautious now. They want fewer stores but better stores and they’re very conscious of the value of a store to boost online sales.” While investment volumes tell one story, global development activity tells yet another. And while the US ranks first in investment activity, it does not even appear in the top 30 in the AT Kearney Global Retail Development Index for 2016. This league,

Indian promise: Zara in Mumbai

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New markets

The Limited’s lingerie brand Victoria’s Secret is expanding globally unsurprisingly, is led by China and India which, with a combined population of 2.68 billion and retail sales of just over $4bn, offer a wealth of new markets and opportunities too numerous to mention. But retailers and investors will want to pay close attention to some of the runners-up in the AT Keaney report: Malaysia, Indonesia, the UAE, Vietnam, Peru, Morocco and the Philippines all feature in the top 20. In Europe alone, 9.1million sq m of new shopping-centre space is due by the end of next year, according to C&W, representing a marked acceleration from last year. And retailers looking for emerging opportunities will be pleased to note that this is widely spread throughout the region across both primary and secondary locations. By the end of 2016, Europe will be home to some notable new shopping centres, from the Parque Nevada in Granada, Spain, to the 92,000 sq m Il Centro shopping centre in Arese, Milan and the 100,000 sq m Posnania

centre in Poznan, Poland. And even further afield, improving economic conditions in the Baltic region mean that key markets, including capitals Vilnius in Lithuania, Tallinn in Estonia and Riga in Latvia, could well join the larger Eastern European cities as major opportunities for retailers and investors. Unsurprisingly, Savills’ Global Retail Destination Index 2016 names the seven most attractive cities for retailers globally as New York City, London, Hong Kong, Dubai, Singapore, Paris and Milan. With prestigious shopping streets and huge visitor numbers, New York City and London still retain the X factor that retailers seek. But, the report also revealed, in terms of perception, London was beaten into fifth place by Dubai, Hong Kong and Singapore. Staying in Asia, investors have been watching developments in the Vietnamese market for some time. The news last year that the government had legislated to open up its property market to foreign buyers will undoubtedly

have kick-started plenty of plans. Vietnam may be a long-term play, and activity is likely to be confined to the more Western-looking Ho Chi Minh City at first, but the potential offered by an emerging market with a population of over 92 million is huge. Too often overlooked but no less rich in opportunity is North Africa. One of the key developers in the region, Group AKSAL, has an ambitious pipeline of developments under way in Morocco and beyond, and has already brought several well-known names, including Bershka, Zara and Pull & Bear, to the region.n

CONFERENCES & EVENTS AT MAPIC INVESTMENT Shopping malls, factory outlets, high streets: Which is the best place to invest?

Wednesday 16 November – 17.30 -18.30 Room 1 - Palais -1

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Showcase

Retailer spotlight: ones to watch Plenty of established, new and new-toMAPIC retailers will be in Cannes this November. Ben Cooper highlights a few that are preparing to make their mark at this year’s event

AU FUT ET A MESURE

BEVERLY HILLS POLO CLUB This prestigious name is already familiar with European shoppers thanks to its clothing being stocked in certain stores, but now the US retailer has bigger plans in mind. Established in 1982 as a clothing label for elite young people and aspirational middleclass shoppers, the company is exhibiting at MAPIC for the first time as it searches for sites around Europe to open standalone stores.

The beer bar with a twist — customers order from touch pads on their tables — is attracting a great deal of attention in its native France and now the owners are hoping to extend their reach. The chain, which has already been rolled out into 15 locations in France via a franchise model, will be in Cannes to meet with potential partners interested in helping to move the brand to the next level.

CABAIA Pop-up stores have proven the ideal medium for idiosyncratic French hat brand Cabaia, providing a very strong national and international visibility, very quickly. In addition, the company’s model is based on its community engagement and pop-up stores have allowed it to be “immediately present in the heart of our target and have efficient feedback”, says Bastien Valensi, sales director at Cabaia.

EXPERT INSIGHTS How do you see/picture tomorrow’s retail? We are convinced that the future of retail is a more dynamic distribution network, more events, and a strong strategy built round a community. This is why, more than a simple hat brand, we wanted to build a real concept, a state of mind, by staging our own points of sale. Pop-up seemed to be the ideal way to test the concept, and to share it with a large audience, in very little time. Cross channel is also essential, in order to perpetuate the client experience online after having visited one of our pop-up stores. Our acquisition strategy is based on our being closer to our clients and allowing them to take part in our marketing campaigns. What has changed? What are your main challenges? The power of the consumer over a brand or a product has considerably evolved. Clients are more informed, more demanding, which is why customer care has a much more important role in the retail process. The Cabaia community is very eclectic. We have deliberately chosen to offer a very warm and welcoming

concept, in order not to be caught up by fast changes in fashion. Our customers expect a different positioning than that of big names of the fashion industry, through original and quirky advertising campaigns. They expect from us that we give them importance. How do you deal with those changes? We have developed our strategy around events and Cabaia’s Bastien Valensi the community angle. We put a lot of effort into offering impeccable customer care, and make sure we surprise our customers with an evolving universe. Our community management is deliberately very hands on with the customer, with a fun, friendly and original tone. Cabaia represents a state of mind, and all our actions follow this principle. Bastien Valensi, sales director, Cabaia

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Showcase DUNE LONDON Dune has grown from a 20 sq m concession in a fashion store in Oxford Street, London, in 1992, to a group with 40 UK standalone stores, 175 concessions in the major department stores such as Topshop, House of Fraser, John Lewis and Selfridges, and 64 franchised stores and concessions in 10 countries. With multiple shipping options to over 130 different countries — in over 70 currencies — and with German-, French- and Spanish-language websites, the Dune London brand has become a global proposition.

DUNKIN’ DONUTS A ubiquitous presence throughout the US, Dunkin’ Donuts is exhibiting at MAPIC for the first time as part of its plans to increase its international reach. The chain took its first steps into Europe towards the end of 2014, since when it has rolled out well over 250 stores via its franchise model. The company laid out plans to open 1,000 stores when it arrived in Europe.

THE ENTERTAINER The fastest growing high street multichannel toy retailer in the UK enjoyed a strong year with The Entertainer’s ‘click and collect’ service rising 29.3% year on year. Gary Grant, founder and managing director of The Entertainer, says: “2015 was a great year, marking the opening of our 100th store at the beginning of the year, ending with a total of 18 new store openings, our first ever venture into TV advertising and the relocation of our distribution centre, all designed to underpin our future growth aspirations.”

GROUPE DYNAMITE Montreal-based Groupe Dynamite operates under two brands: Dynamite and Garage. The retailer traces its roots back to the 1970s, since when it has grown into an international chain with some 380 stores in nine countries. The Dynamite brand is aimed at young women, while Garage is geared towards teenage girls. Both brands have been rolled out overseas. The company is at MAPIC to reach out to international markets and find new sites for openings around the world.

FIVE GUYS The US burger chain has caused a huge stir wherever it has opened — and with its first French store now up and running, it has made a bold statement about its long-term plans in Europe. Five Guys has been in Europe since 2013, starting with the UK, where its first London store opening led to queues around the block. The opening of its Paris restaurant in August marks the start of a European roll-out.

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Showcase JOHN LEWIS Hammerson’s Victoria Gate in Leeds — with anchor tenant John Lewis — will open on October 20 and is set to transform the city’s aspirational retail, dining and leisure offer. James Prince, head of branch at John Lewis Leeds, says: “It’s our most service- and experiential-led shop to date, as we continue to offer more for customers that can’t be replicated online.” Before that John Lewis opened on September 29 in Chelmsford as the anchor shop at the new Bond Street development, with a new cafe concept from Benugo.

MARS RETAIL GROUP The retail arm of the Mars FMCG brand is licensing more M&M stores, trialling pop-up stores and with Ethel M Chocolates recently unveiled plans for a complete redesign of its Henderson, Nevada factory store. The $2m project will “elevate the factory store experience,” says Oren Young, general manager of Ethel M Chocolates. “We’re introducing an interactive and open design that will allow guests to explore our process, products and engage with our chocolatiers.”

NATIONAL GEOGRAPHIC National Geographic and iP2Entertainment are to develop a series of indoor, interactive exploration centres worldwide, with content and attractions geared towards families with children aged five to 12. The partners have teamed up with K11 for the first location, a 4,013 sq m space in the Shenyang K11 Art Mall, opening in summer 2017. A second Chinese centre is also in development on the island of Hengqin. “The centres will provide parents and their children with a fun and interactive way to learn about animals, science and exploration,” says Andy Reif, EVP, consumer products, licensing & global experiences for National Geographic Partners.

TESCO One of the world’s largest grocery chains and the biggest retailer in the UK, Tesco is a major new presence at MAPIC. The chain has made ambitious moves overseas, in particular in Asia, where it operates stores in China, India and Malaysia, as well as in Eastern Europe. Now present in 10 international markets, the retailer operates a number of models, combining 100% Tesco-run stores with partnerships with local retailers and groups.

MAX BURGERS Another burger brand with big plans beyond its borders is Swedish chain Max Burgers, which has been a hit with domestic diners. The company, whose story started in 1969 with the opening of a restaurant in Gallivare in Lapland, is coming to MAPIC to make contact with potential franchise partners and plot the next chapter in its history — its international growth story.

CONFERENCES & EVENTS AT MAPIC MIDDLE EAST How tall is retail?

UNITED KINGDOM Good morning retail!

Wednesday 16 November – 16.30 -17.30 Room 1 - Palais -1

Thursday 17 November – 09.00 -10.00 Room 1 - Palais -1

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Around the world

From Cannes to Milan, Moscow and Shanghai... M

APIC spread its wings this year, with a debut event in Milan building on the first Chinese event last year. In addition, MAPIC parent company Reed Exhibitions acquired Russian retail real estate show REX. The debut edition of MAPIC Italy, held on May 24-25 at Milan’s Superstudio Piu venue, attracted some 1,400 delegates — including operators, brands and investors — from more than 35 countries. This was the first time a regional version of MAPIC had been held in Europe, but the choice of Italy proved a resounding success, with attendance figures almost double those expected. “Italy was lacking a major property show,” said Marco Pellizzari, general manager of developments for Italy at Sonae Sierra. “Retail real estate is probably Italy’s most dynamic property sector, so MAPIC has done well to step into the breach.”

One of the main purposes of MAPIC Italy was to find potential tenants for the country’s myriad retail schemes. The 454 domestic and international retail executives present at the event witnessed five-minute, speed date-style opportunities as around 10 retailers pitched their plans during the conference sessions. Filippo Rean, director of Reed MIDEM’s real estate division, said: “The enthusiasm

In an historic year, April saw the first REX since the Moscow-based trade show was acquired by Reed Exhibitions Russia to become part of the MAPIC family, MAPIC Italy launched in May and the second Chinese event powered by MAPIC opened its doors in June. Our contributors report from Milan, Shanghai and Moscow

that was generated around MAPIC Italy was beyond our expectations. Thanks to the support of the Italian market and of the CNCC [Italian Council of Shopping Centres], we were able to bring together major players in the retail sector and create a platform for meetings with national and international retailers and investors. The presence of the leading Italian retailers underlines the

“Retail real estate is probably Italy’s most dynamic property sector, so MAPIC has done well to step into the breach” Marco Pellizzari, Sonae Sierra

MAPIC Italy was attended by some 1,400 delegates preview magazine I October 2016 I www.mapic.com

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40 16-17 May 2017, Milan

Around the world

TALKING UP ITALY Messages from MAPIC Italy 2016 Oscar Farinetti, founder, Eataly: “Italy offers immense business opportunities, both to foreign groups and the Italians themselves. We must invest in our core values: beauty, goodness and creativity. We need to develop the right format for Italy, which is a great investment market. I believe big changes begin from the bottom up, starting with the little things.”

Fabrizio Barale, expansion manager, Tiger Italia: “We have 70 owned stores and, by 2017, we want to reach 100 stores. We’re also taking a big step with e-commerce.”

Marco Almeida, senior international expansion manager, Parfois: “Italy is a magic but difficult market. We currently have a mix of stores, including 12 designer outlet stores. We see huge potential for tourism in Italy and we’re looking for locations that captivate the tourists.”

Alessandro Mazzanti, CEO, CBRE Italia: “We have seen a recovery since 2013 and now we’re back to pre-recession levels, with improved sentiment within the investment market over the past five years — and it’s mostly international investors who have believed in Italy, especially in retail. Our one concern is legislation, which is holding real estate back. Really, Italy’s property market should be analogous to the UK’s.”

Edoardo Favro, managing director, Gallerie Commerciali Italia: “Some believe there is nothing below Rome, but this is simply not true. There are excellent opportunities in the south.” CONFERENCES & EVENTS AT MAPIC ITALY New development projects

Thursday 17 November – 17.30 -19.00 Room 1 - Palais -1

MAPIC Italy brought together major players in the retail real estate industry renewed dynamism of the Italian market and is a clear sign of its potential.” For Massimo Moretti, president of the CNCC, MAPIC Italy was “an extraordinary opportunity to highlight our excellence”. He added: “Italian brands, especially in the field of fashion and food, are desired all over the world. We have finally created a very strong focus on our national retail real estate portfolio, both for existing projects and those in the pipeline. MAPIC Italy was an exceptional showcase to investors already present in Italy and to the many who would like to invest.” Marco Dellapiana, general manager of Swiss fashion retailer Tally Weijl, which aims to expand from around 200 Italian stores to some 400 by 2020, believes the Italian market holds great potential and remains largely untapped. “There is still a strong opportunity

for growth and development, both with standalone sales points and also through working with partners,” he said. Paulo Sarmento, principal of European real estate investment and fund management company Meyer Bergman, was a member of the panel discussion Invest In Italy: Vibrant Assets For Foreign Investments. Sarmento, too, expressed enthusiasm for investment. “I believe the Italian real estate market is one of the most interesting in Europe at the moment,” he said. “It is misunderstood by a significant number of investors but, if you know the market and surround yourself by good local operating partners, you can make good risk-adjusted returns. It’s still a small market, but the potential for growth is very significant.”n Reporting: Mark Faithfull and Isobel Lee

MILAN’S MEGA-MALL HAVING opened Il Centro shortly before MAPIC Italy opened its doors, Francesco Ioppi, real estate manager of Gruppo Finiper, was understandably upbeat about Italian prospects. He believes the 120,000 sq m mega-mall in Arese will act as a catalyst for the former industrial area. “This is a very valuable asset because we want to reclaim this area as an affluent suburb,” he says. “When we were leasing, it was a difficult time to get international retailers to believe in Italy, but we also wanted to persuade local brands this was a great place to reach the Italian consumer. On top of that, some people believe you can’t open a large mall in an e-commerce world.” Notching up one million visitors within its first 17 days of trading, Il Centro looks set to prove the naysayers wrong. “We have created a good feel at the centre, and an experience that suits families,” Ioppi added.

preview magazine I October 2016 I www.mapic.com

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Around the world Shanghai’s RREM, powered by MAPIC CHINA’s retail industry gathered in Shanghai on June 15-16 for the second Retail Real Estate Market (RREM) event, which returned for a second successful conference at the Tomorrow Square tower in Shanghai’s People’s Square. Building on this success, in 2017 the event will be rebranded as MAPIC China Summit. This year, more than 300 retail and real estate professionals attended the two-day event. Expert speakers included Chinese developers Dalian Wanda and SCPG, occupiers such as Etam Group, pub chain O’Leary’s,

entertainment group Bounce and investor L Real Estate. At RREM, the conference sessions focused on the changing face of retail in China. Although both the country’s GDP and retail growth have been slowing in recent years, retail growth was still an impressive 10.7% last year, leaving plenty of room for opportunity. Vice-president of Dalian Wanda Commercial Properties, Zhibin Wang, demonstrated the staggering growth in China’s retail market by announcing plans to open 60 new shopping

malls in 2016 alone — on top of the developer’s existing 133 locations. “By the end of 2017, we will be opening 50 new plazas a year,” he said. CBRE head of research China, Sam Xie, gave a picture of the average Chinese shopper, who he said increasingly blurred the lines between shopping on their mobile devices and in-store. His research suggests that, while many consumers browse on smartphones, a high number still make the final purchase in-store. However, RREM delegates also heard that shoppers like their malls to be full of new experiences, with as much as 50% of the space dedicated to places to eat and be entertained. Bowling provider QubicaAMF Worldwide

“By the end of 2017, we will be opening 50 new plazas a year” Zhibin Wang, Dalian Wanda

RREM in Shanghai welcomed more than 300 retail and real estate professionals

said it is seeing opportunities in China. “We see there is a big demand for entertainment at this moment. For us, the main challenge is finding the right operator,” said Gian Anestis Avraam, the company’s vice-president of international sales and business development. Meanwhile, others consider that shopping malls must evolve and adapt to attract consumers. This year’s RREM featured speakers from several retail technology groups that provide in-mall tech, who argued that online-to-offline tools (O2O) are the future of China’s retail industry. Yibing He, founder and CEO of Dface Network and Technology, said his platform, Lianlian, offers games and in-mall deals. “We have to translate your fans into becoming consumers and spenders. We believe O2O is the only solution,” he said. Others focused on the need for more longterm security for occupiers, with CEO of Bounce, Simon McNamara, saying that, if they commit millions to renovating space, tenants need landlords to guarantee longer than a three-year lease. Short leases are still very common in China, delegates were told. n Reporting: Helen Roxburgh

CONFERENCES & EVENTS AT MAPIC CHINA, JAPAN, SOUTH EAST ASIA… The best of Asia

Wednesday 16 November – 14.15 -15.15 Room 2 - Palais -1

Sessions focused on the changing face of retail in China preview magazine I October 2016 I www.mapic.com

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42 25-27 April 2017, Moscow

Around the world

Reflecting on REX RUSSIA’s retail community gathered on April 20-22 in Moscow for REX (Real Estate eXhibition) — the first edition of the long-standing retail real estate event since its acquisition by Reed Exhibitions Russia. This year, REX, which is supported by the Russian Council of Shopping Centers, attracted 110 exhibitors, including 34 new companies. Among the exhibitors were Capital Partners (behind the Metropolis extension), CBRE, Colliers International, Cushman & Wakefield, DARS Development, Fashion House Group, IK EA Centres Russia, Immochan Russia, Immofinanz Russia, JLL, Kidburg, Knight Frank, SRV Group, Watcom Group, X5 Retail, Billa and Rivera. In all, 80% of the event’s 4,486 visitors hailed from Moscow and St Petersburg. REX, which was launched in 2004, and its satellite event Arenda, are professional trade shows dedicated to Russian retail property. Gregory Zaraisky, managing director of Reed Exhibitions Russia, said: “We plan to not only solidify REX’s leading position in Russia, but also develop REX to the level of the internationally-renowned MIPIM and MAPIC.”

Plans are to develop REX to the level of MIPIM and MAPIC, according to Reed Exhibitions Russia’s Gregory Zaraisky Filippo Rean, director of Reed MIDEM’s real estate division, added: “We have been organising the world’s leading retail real estate event, MAPIC, since 1995, launched the concept in Shanghai last year and opened MAPIC Italy in May. Combining Reed MIDEM’s international experience with the expertise of Reed Exhibitions Russia and the REX team will help develop a platform

for international retailers and investors to source opportunities and locations in the dynamic Russian retail real estate sector.” n Reporting: Aurore Dewas CONFERENCES & EVENTS AT MAPIC RUSSIAN FEDERATION Expanding your business in Russia

Wednesday 16 November – 11.00 -12.00 Room 1 - Palais -1

Visitors to REX in Moscow numbered close to 4,500 preview magazine I October 2016 I www.mapic.com

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MAPIC CONFERENCE PROGRAMME DISCOVER, SHARE, NETWORK! 200+ INTERNATIONAL SPEAKERS • 40+ EXCLUSIVE CASE STUDIES • 25+ CONFERENCE SESSIONS

MAPIC’S LATEST ANNOUNCED HEADLINERS

Andrea AIELLO Editor-in-chief RETAIL&FOOD EDIFIS SPA

Sébastien BISMUTH CEO UNDIZ

Christophe CHAUVARD General Manager France, Switzerland & Africa QUBICAAMF

David CHINES CEO & Creative Director COPIOUS ROW

Steven COHEN CEO BLUE INC

Jeremy COLLINS Property Director JOHN LEWIS

Giovanni DOLCI Vice President, Theatre Development IMAX CORPORATION

Fiona HAMILTON Global Head of Retail for International Brands BNP PARIBAS REAL ESTATE

Karen HARRIS Managing Director intuDigital INTU

Ben JOBLING International Director THE DUNE GROUP

Marcel KOKKEEL CEO CITYCON

Alexandre LIOT Director of BHV GALERIES LAFAYETTE

François LOVITON Director Retail France GOOGLE

Patrick MCINTYRE Director of Global Retail MARS

Brendon O’REILLY Managing Director FASHION HOUSE GROUP

Régis PENNEL President L’EXCEPTION

Andrew PHIPPS Head of Retail Research CBRE

Andy REIF Executive Vice President, Consumer Products, Licensing and Global Experiences NATIONAL GEOGRAPHIC PARTNERS

Joshua STRAUSS Executive Vice President RKF

Jace TYRRELL Chief Executive NEW WEST END COMPANY

Franck VERSCHELLE CEO ADVANTAIL

Reinhart VIANE Business Development Director KCC ENTERTAINMENT DESIGN

Joshua WEXLER Chief Executive of Fun iP2ENTERTAINMENT

Darren WILLIAMS Country Director T2 TEA

SPONSORS Conference programme sponsor:

Mapic Innovation Forum sponsors:


Shopping malls, factory outlets, high streets: Which is the best place to invest? Co-org: Property Investor Europe

INVESTMENT

17.30-18.30

How tall is retail? Sponsor & co-org: Arabian Centres

MIDDLE EAST

16.30-17.30

Sea, Shopping & Sun: Enjoy a new type of holiday! Sponsor & co-org: RKF

RETAIL TOURISM

15.30-16.30

Focus on the next development projects in Morocco, Algeria, Egypt & Tunisia Sponsor: Groupe Aksal

NORTH AFRICA

17.30-18.30

How to offer a unified customer experience with Salesforce Client session

SALESFORCE

16.45-17.30

Southern Italy: the new golden nugget - Client session

CNCC ITALY

16.00-16.45

Retail market overview & expansion opportunities in Japan Client session

AEON MALL

15.15-16.00

The best of Asia

CHINA, JAPAN, SOUTH EAST ASIA…

LEISURE & SHOPPING

Retail in wonderland! Sponsor & co-org: Theleisureway

14.15-15.15

BREAK

Savouring new italian F&B experiences Co-org: retail&food

FOOD & BEVERAGE POWERED BY MAPIC ITALY

12.30-13.30

Shopping malls & retailers, the new power couple? Co-org: Salesforce

DATA

11.30-12.30

Leveraging the three layers of in-store shopper behaviour Client session

SHOPPERTRAK

Malls & Media: a new era Client session 10.45-11.30

CLEAR CHANNEL

10.00-10.45

14.30-15.30

USA retail: Strategies for successfully bringing your brand to the states - Client session

GOULSTON & STORRS, MILLMAN SEARCH GROUP & WS DEVELOPMENT

13.00-13.45

Click to bricks & innovative retail: be connected to the new American dream! Sponsor & co-org: JLL

USA

12.00-13.00

Expanding your business in Russia Sponsor: FASHION HOUSE Group Co-org: Impress Media

RUSSIAN FEDERATION

11.00-12.00

Welcome to my phygital world Co-org: Google

THE O2O EXPERIENCE

10.00-11.00

The Nordic art of retailing Co-org: NCSC

THE NORDICS

Best international luxury experiences Co-org: Women’s Wear Daily

9.00-10.00

ROOM 2

LUXURY & PRESTIGE RETAIL

CONFERENCE ROOMS

9.00-10.00

ROOM 1

WEDNESDAY 16 NOVEMBER

Drive your retail performance with advanced analytics

INNORANGE OY

17.00-17.30

Overcoming the challenges of large scale, global deployment with Samsung Smart Signage

SAMSUNG ELECTRONICS

16.30-17.00

Startup sessions

SEEDCAMP

16.00-16.30

development for shopping centres

JOSDEVRIES THE RETAIL COMPANY - Brand & multi-format

15.30-16.00

CONIQ

15.00-15.30

DATA - Unlocking shopping centre & outlet potential

RETAIL ADVANTAGE

14.30-15.00

Retail analytics: How innovative technologies assist you in understanding your customers

DILAX

14.00-14.30

Startup sessions

L’ÉCHANGEUR BY BNP PARIBAS

12.30-13.00

Next-generation video intelligence for shopping malls & chain stores

RETAILIC

11.30-12.00

Deep renovation of shopping centres

COMMONENERGY

11.00-11.30

French company specialising in the design and manufacture of themed playground equipment for children

HUSSON

17.00-17.30

Activate your space with global entertainment

iP2ENTERTAINMENT

16.30-17.00

GLOBAL ATTRACTIONS

16.00-16.30

15.30-16.00 VORTEX - The wonder of water

Converging sectors: how experiential design & build is becoming an essential part of retail

PARAGON CREATIVE

15.00-15.30

Unique retail entertainment offerings to entice your guests

IPLAYCO

14.30-15.00

Light is our link: Xmas decoration concept & architectural lighting

BLACHERE ILLUMINATION

14.00-14.30

Virtual & Mixed Reality - do’s & don’ts for retailers, mall owners & leisure operators

AISOLVE

12.30-13.00

World leader in adventure & trampoline parks

FREEDOME BY SKY ZONE

12.00-12.30

Embracing entertainment in mixed use design

FORREC

11.30-12.00

Leading global brand in indoor trampolining & active entertainment

BOUNCE

(USA Pavilion - Palais -1)

USA HAPPY HOUR

17.30-18.30

Influencing the retail Real Estate Industry (Verrière Grand Auditorium)

WOMEN NETWORKING COCKTAIL*

16.00-17.00

SCPG Cocktail Lunch (Verrière Grand Auditorium) Sponsor: SCPG

CHINA’S RETAIL OPPORTUNITY*

13.00-14.30

(Verrière Grand Auditorium) Co-org: ELGAM Conseil

CONFÉRENCE DES TERRITOIRES URBAINS*

10.30-12.00

SPECIFIC LOCATIONS & NETWORKING EVENTS

Programme as of 28 September 2016, may be subject to change.

*by invitation only

STOREFRONT

16.30-17.00

The first online community to find the best spaces in the city for temporary shops & events

BREAK

WHAT A SPACE

15.30-16.00

POP PLACES

14.45-15.15

BOXPARK

14.00-14.30

BEMYPOP

11.15-11.45

NOOKS

Christmas success – Driving footfall & customer engagement through atmosphere & emotion

10.30-11.00

SPECIALTY LEASING LOUNGE

MK ILLUMINATION

11.00-11.30

RETAILTAINMENT AREA

TRENDS HUB (PITCHINGS)

10.30-11.00

MAPIC INNOVATION FORUM

19.30 - WELCOME RECEPTION - Majestic Hotel - MAPIC 2016 Official Sponsor: Thor Equities

TUESDAY 15 NOVEMBER

2016 - CONFERENCE & EVENT PROGRAMME

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New development projects Sponsors: IGD, Multi, Svicom Co-org: CNCC Italy

ITALY

17.30-19.00

Re-enchanting the cityscape Sponsor: Thor Equities Co-org: Kiki Lab - Ebeltoft Italy

HIGH STREETS

16.30-17.30

Specialty leasing for success!

POP UP STORES

15.30-16.30

A new retail Real Estate landscape Co-org: FashionMag

FRANCE

14.30-15.30

Trends & business opportunities - strong, stronger, Germany! Co-org: Heuer Dialog

GERMANY

13.00-14.00

The evolution of outlet centres to urban & mixed use settings Sponsor & co-org: The Outlet Resource Group

OUTLET

12.00-13.00

How to create a magic & seamless experience? Sponsor & co-org: GH+A

DESIGN & INNOVATION

11.00-12.00

FOLLOWING THE TRENDS

Welcome shopping kings! Co-org: Melty

MILLENNIALS

17.30-18.30

How to leverage online marketing solutions to drive foot traffic & revenue? Client session

GOOGLE

16.45-17.30

Activate your space through entertainment with Mattel Client session

iP2ENTERTAINMENT

SHOPPING THE WORLD

IoT & innovative connected objects will revolution point of sales

CLUSTER SCS

17.30-18.00

Indoor navigation map on Mobile, Web & Kiosks

O2O & INNOVATION

Make Play Pay!

KOMPAN COMMERCIAL SYSTEMS

16.00-16.30

VISIOGLOBE

16.30-17.00

How to make your public spaces become a destination of leisure & pleasure

PRO URBA

15.30-16.00

BPI LE HUB - Startup sessions

16.00-16.30

Reliable dwell time analysis to optimise your marketing activities

HELLA AGLAIA

15.30-16.00

Retailtainment: from start to grand opening

KCC ENTERTAINMENT DESIGN

KODISOFT - Table is a new TV

16.00-16.45

Bringing active entertainment to your facility

WALLTOPIA ADVENTURE

14.30-15.00

ROUGE COBALT

14.00-14.30

15.00-15.30

All property systems are not the same

MRI SOFTWARE

14.30-15.00

Xovis person tracking technology

XOVIS

14.00-14.30

UNIVERSCIENCE

15.00-15.30

BREAK

PARIS & CO - Startup sessions

12.30-13.00

Humanoid robots in the retail industry

12.00-12.30

Why family entertainment centres/bowling are a sustainable & growing business

Bridging Europe & Asia: Turkey is the new hub for the retail industry!

TURKEY

Energising retail! Co-org: SCSC 15.00-16.00

SWITZERLAND

14.00-15.00

Spain at the heart of Europe Co-org: AECC

SPAIN

12.30-13.30

SOFTBANK ROBOTICS EUROPE

12.00-12.30

How can open innovation increase customer satisfaction?

BELGIUM & LUXEMBOURG Retail in major Belux cities: more than chocolate and waffles! Co-org: BLSC

SYMAG

11.30-12.30

Big data & retail intelligence to increase the profitability of your business

11.00-11.30 TC GROUP SOLUTIONS

QUBICAAMF

11.00-11.30

ESRI Are Indoor Mapping & the use of location technology inevitable?

RETAILTAINMENT

Programme as of 28 September 2016, may be subject to change.

*by invitation only

MAPIC PARTY

Open to all MAPIC Delegates (Salon des Ambassadeurs) MAPIC 2016 Official Sponsor: Thor Equities

23.00

POP PLACES

(Salon des Ambassadeurs) MAPIC Awards 2016 Official Sponsor: Cushman & Wakefield MAPIC 2016 Official Sponsor: Thor Equities

MAPIC AWARDS GALA DINNER*

19.30-22.30

Re-enchant in-store customer experiences to address and anticipate new shopping behaviours (Verrière Grand Auditorium) Client session

RETENCY

15.30-16.30

«Meetaly» (Verrière Grand Auditorium) Sponsors: IGD, MULTI, SVICOM Co-org: CNCC Italy

ITALIAN LUNCH*

13.00-14.30

(Verrière Grand Auditorium) Organiser: Nice Métropole

NICE METROPOLE*

10.30-12.00

(Verrière Grand Auditorium) Sponsor: Acadia Realty Co-org: Abrams Global

USA BREAKFAST*

8.00-9.30

17.15-17.45

RETAIL IS DETAIL

14.45-15.15

BREAK

MY POP UP STORE

11.15-11.45

APPEAR HERE

10.30-11.00

10.30-11.00

PLAYTIME

RUSSIAN BREAKFAST* (Majestic Hotel) Organiser: Impress Media

8.00-11.30

POP MEDIA

SPECIFIC LOCATIONS & NETWORKING EVENTS

10.00-10.30

SPECIALTY LEASING LOUNGE

10.30-11.00

RETAILTAINMENT AREA

TRENDS HUB (PITCHINGS)

Delivering an authentic play area experience to shopping centres

Online marketing management solutions for franchise networks

11.30-12.00

Bricks vs. Clicks: What is the new normal? Client session

NEWMARK GRUBB KNIGHT FRANK

10.45-11.30

Establishing a US retail footprint Client session

RKF

10.00-10.45

The 6th continent for retailers? Sponsor & co-org: BNP Paribas Real Estate

TRAVEL RETAIL

10.00-11.00

GOOGLE

10.00-10.30

PFM FOOTFALL INTELLIGENCE

What must new schemes do to win the market, and old assets to survive? Co-org: Poland Today

9.30-10.00

MAPIC INNOVATION FORUM

POLAND

ROOM 2 9.00-10.00

CONFERENCE ROOMS

Good morning retail! Co-org: Portas

UNITED KINGDOM

9.00-10.00

ROOM 1

THURSDAY 17 NOVEMBER

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Forum des Halles in Paris

France

The French connection At the heart of the EU and a major draw for the world’s retailers, shoppers and investors, France is as much a driver of European economic conditions as it is a product of them, says Ben Cooper

A

FTER a turbulent summer of economic and political uncertainty in Europe, combined with domestic tragedy in the form of a string of terrorist attacks, it is not hard to see why France’s retail market is currently showing a mixed picture. But there are positive signs. GDP is still growing, if modestly, as are consumer prices and household consumption, while unemployment is working its way down. BNP Paribas has forecast overall growth in retail sales of 2.2% year-on-year from 2015, to €463bn of sales by the time the year is out, or 24% of total Eurozone sales. Total property investment in the first half of 2016 reached €9.7bn, says BNP Paribas Real Estate, and the property advisor predicts that while the amount invested in France in 2016 is unlikely to reach last year’s €32bn record, it should nevertheless exceed €26bn. Retail is the second largest investment category after offices, representing 22% of volumes (€2.2bn).

Marina Lavrov, senior retail consultant at CBRE France, says: “Generally speaking, we are still seeing a lot of new interest in France, Paris in particular. Paris is still one of the most-visited cities in the world and France one of the most popular tourist destinations. People still want to be here. It has a great image and that makes it an attractive place for retailers to be.” The French market is showing promising indicators — not least with new brands such as Lululemon, New Balance, Spanish clothing brand Scalpers, and a number of smaller labels from the make-up and beauty sectors, opening their first stores. Lavrov says that much of the activity can be explained by a trend that has been developing for years, and is increasingly manifesting itself in a cross-sector shift. “There’s a big trend in France towards healthy living,” she says. “Diets are becoming healthier and sports brands are increasing their store openings. It’s the beauty brands and the sports brands that are expanding the most rapidly at

the moment, and there are new brands coming in.” Things are also changing in the grocery market, she adds, which is seeing a move away from the discount stores: “We’re seeing more organic supermarkets and smaller food stores opening.” With the bulk of both development and new retail activity focused around Paris, it follows that this is where the most rental growth has been seen. The Champs-Elysees still tops the charts — both in France and Europe — with rents at €20,000/sq m per year last year, followed by a number of major streets around the capital registering around €7,000/sq m per year. Secondary and provincial locations still fall well behind the capital, however, and rental values outside Paris remain broadly flat.

“Paris is still one of the most-visited cities in the world and France one of the most popular tourist destinations. That makes it an attractive place for retailers to be” Marina Lavrov, CBRE

preview magazine I October 2016 I www.mapic.com

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France Since MAPIC last year a number of key shopping-centre openings have taken place. Of these, Altarea Cogedim’s L’Avenue83 in Toulon counts as one of the most prestigious, opening its doors in April with 70 new stores and 20 restaurant units. The company has also completed the renovation of Cap3000 and Gilles Boissonnet, chairman of the Altarea Commerce Management Board, says: “We will be highlighting our expertise in travel retail for train stations and our ability to imagine small city areas that match the needs and expectations of our customers, as well as regions.” In Paris, the biggest news comes in the form of the long-awaited revitalisation and expansion of Unibail-Rodamco’s Forum des Halles mixed-use scheme, located above a major transport hub in the heart of the city. With some 6,300 sq m of retail space, as well as redesigned concourse space beneath and access to the streets, the centre is one element of a far-reaching grand plan for the capital over the next decade. “Unibail-Rodamco has the largest and most 034V2_CHAUSSEA_PV_PIC ambitious development pipeline in Europe,

Unibail-Rodamco’s Carre Senart, south east of Paris reaching a value of €7.9bn. This pipeline will generate 30% additional floor space,” says Christophe Cuvillier, CEO and chairman of the management board, Unibail-Rodamco, of an ambitious expansion programme for France and Continental Europe. Among the deliveries due in 2017, Cuvillier

points out a key scheme, Wroclawia in Poland, a 79,163 sq m development in Wrocklaw opening next year. “This is our first project in the country located outside Warsaw, it’s major,” he says. “We will also extend Centrum Chodov in Prague, adding around 40% more space. The

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France extension of Carre Senart includes a new key anchor, a 9,500 sq m Galeries Lafayette department store. It will undoubtedly be the best shopping destination south of Paris when it is completed by the end of 2017.” Finally, the full refurbishment of the Glories shopping centre will make it the heart of the revitalised ‘22@’ district of Barcelona. Also in Paris, developer Apsys is back on

track with the major Vill’Up project, which was delayed by a fire last autumn. The development opens on November 30 and is part of wider plans for the east of the city, which is home to the Parc de la Villette and the Cite des Sciences et de l’industrie. Meanwhile, Carrefour property division Carmila has plans to develop 40 projects by 2020, with the first openings in November at

Klepierre’s Prado scheme for Marseille

Bourges, a 2,000 sq m shopping arcade with 18 stores, which will be transformed by an additional 5,500 sq m of retail space and 45 extra stores. “Carmila continues to develop at a steady pace and the first results demonstrate the relevance of its business model. An ambitious programme of investment and a major renovation plan has doubled the value of our assets since its inception,” says Jacques Ehrmann, Carmila general chief executive. Finally, Klepierre will be showcasing Prado at MAPIC, its high street shopping development in Marseille. This will include a 9,400 sq m Galeries Lafayette department store, 50 stores, a food hall, six restaurants with green roofs, relaxation areas and a “spectacular design” by Benoy and Rogeon, says the company. Under an immense glass canopy, this 23,000 sq m scheme will open in October 2017 and is located near the Prado roundabout, the Velodrome stadium and the Parc des Expositions. n

CONFERENCES & EVENTS AT MAPIC FRANCE A new Retail Real Estate landscape

Thursday 17 November – 14.30 -15.30 Room 1 - Palais -1

EXPERT INSIGHTS How do you picture tomorrow’s retail landscape? “I see the future of retail as a sort of triangle, with e-commerce, convenience shopping and experience shopping at each angle, representing the three main growth areas. Internet sales will of course continue to grow at a very fast pace, although slower than before. But even if it reaches 20% of the global retail market, physical retail will still represent 80%. The internet will never be able to deliver the experience provided by physical retail, leisure, culture, retail, services, emotion and entertainment in a single space. And human contact! This is why the best brands are increasing the size of their stores in premium locations, while also investing massively on the internet.

Finally, we believe in innovation to understand and anticipate customer expectations. Thanks to our innovation department, we have tested and rolledout several new concepts such as the Dining Experience and Fresh!, dedicated to differentiating food concepts, unique gastronomy events and services. We have also launched The Designer Unibail-Rodamco’s Gallery, a new destination aimed at celebrating Christophe Cuvillier fashion, offering trendy and exclusive brands in a dedicated location of the mall, with special design and service.

What has changed? What are your main challenges? Facing a challenging market, the consistent execution of our three-pillar strategy concentration, differentiation and innovation - is key to our success. We are leading the industry by focusing on large, high-quality shopping centres in major European cities with densely populated and attractive catchment areas: we own seven of the top 10 shopping centres in the European countries in which we operate, and 15 of the top 30. We focus on differentiating our malls through outstanding 4-star services, memorable events and the most exciting retail offer. In order to offer our customers the best retail mix, we target a rotation rate of at least 10% for each shopping centre.

How are you dealing with these changes? At the end of 2012, the group created UR Lab in order to support the differentiation strategy of its shopping centres. The role of UR Lab is to define an innovative vision which will strengthen our leadership in terms of customer experience and digital services, but also in terms of sustainability and reduction of the carbon footprint of the group, our new frontier! We also created UR Link, a business accelerator for start-ups, with which we team up to develop new concepts and build tomorrow’s retail landscape. Christophe Cuvillier, CEO and chairman of the management board, Unibail-Rodamco

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IN JULY, the citizens of Singen voted in favour of the construction of the planned ECE downtown shopping centre, after a majority of the city council had already decided in favour of the scheme. ECE’s plans comprise a 16,000 sq m centre with 80 shops and dining options on three levels. Completion of the €140m project, which will be located by the train station and pedestrian zone, is scheduled for autumn 2018. The shopping centre’s architecture and design will pay homage to the volcanic heritage of the region and the industrial tradition of Singen. For example, it will feature soft shapes and warm colours that suggest geological structures and a ceiling designed to resemble superimposed layers

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Germany & Austria

Ready, willing and stable The German retail market is changing in response to an increasingly fickle consumer market. Yet in a world of instability, the dependable Teutonic markets of Germany and Austria maintain their appeal to domestic and international players, says John Ryan

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N THE face of it, things are good in Germany if you’re a retailer. Earlier this year, the German Federal Statistical Office reported that mid-March saw the strongest growth in private consumer spending since 2000. This provides a sharp contrast with other parts of Europe and the casual observer might imagine this would translate into an equally robust investment climate, in which cranes and metal-bashers would be busy turning raw steel and suchlike into shiny new shops and shopping centres. Yet when it comes to property investment in the retail sector, the forward-looking tend to examine what’s coming up, rather than what is. The question, therefore, is whether new developments are being pushed into the pipeline to cope with demand in the latter years of the decade. The first and perhaps most counter-intuitive fact that has to be considered when looking at Germany is that, according to research by

Cushman & Wakefield, the bulk of new space in 2016 is coming from secondary towns and cities, rather than the largest population centres. Joerg Krechky, director and head of retail investment at Savills Germany, says this is partly related to the fact that yields from retail assets in the biggest cities have actually fallen over the last couple of years, with the result that attention has shifted to locations where higher yields and risk are available.

“Big box has a future, but not in its current shape” Boris Planer, Planet Retail The Cushman report also notes that Germany has one of the lowest shoppingcentre GLAs per capita in Europe, with only Greece and Belgium having less space per 1,000 inhabitants.

Plenty of room for expansion, therefore, and it would be reasonable to suppose that it’s a case of full development throttle across the country and, to an extent, in neighbouring Austria. Yet retail markets and the consumers they contain are notoriously fickle and shopping patterns are changing in Germany as much as anywhere else, according to Boris Planer, Frankfurt-based chief economist at consultancy Planet Retail. “Big box has a future, but not in its current shape,” he says. “There is a move away from hypermarkets that stock 80,000 SKUs [stock keeping units] to smaller, more local, stores that allow shoppers to walk to the shops.” Planer believes the future will be about smaller retail units, with German consumer sentiment looking set to remain strong, unemployment at a record low since reunification, exports strong and interest rates low. To an extent, it is a pattern that is exemplified by French sports retailer Decathlon (traditionally an operator of very big-box formats), which opted to trial small

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Germany & Austria city-centre formats in Munich and Stuttgart, opening 220 sq m and 50 sq m stores respectively. These outlets are about lifestyle and making things available in a way that will fit in with shoppers’ daily regimes, rather than requiring them to travel in order to shop. If this trend continues, then pressure may be felt in the longer term in retail parks. Planer also says that low interest rates mean there is little or no incentive for savers — something that has always been a feature of the thrifty German market — and therefore consumption remains set fair for continued growth. There is also the fact that Germany is a country where, Berlin notwithstanding, no city has a particular dominance over any other. This means that, particularly in the west, retail assets tend to be fairly evenly spread, rather than concentrated in one location, as is the case, for instance, in the UK. That said, there are cities that command a premium as far as rents are concerned, with Munich heading the pack, followed by Frankfurt, Hamburg and Berlin. And as well as the home-grown economic factors, external influences are likely to be more keenly felt postBrexit, according to Colliers. The commercial property specialist says Germany’s investment climate is likely to attract those looking for stability at a time when matters are looking a little fraught elsewhere across the continent. This is perhaps borne out by the fact, noted by Colliers, that during H1 UK investors were the “strongest foreign investor group” — something that would appear unlikely to alter in the near future. It also means that German retail assets are in demand, with

Decathlon in Stuttgart: the sports retailer is traditionally an operator of big-box formats

“The biggest challenge for every retailer is the consumer, because they are changing too” Joerg Krechky, Savills supply not readily meeting the requirements of those seeking to increase their holdings in the country. This then is a country — and in almost every way the trends are mirrored in neighbouring

Austria — that looks primed for retail growth, where stability is the watchword and which is likely to remain a key target for domestic and foreign investors looking for predictable yields. Savills’ Krechky says: “It is a very, very interesting time to be a retailer [in Germany], because the entire landscape is changing and this is particularly due to the online sector. Retailers that don’t have a multichannel strategy in place will suffer over the next few years. But the biggest challenge for every retailer is the consumer, because they are changing too. It becomes more and more difficult for retailers to identify who they are.” That said, the future looks fair for this market — at least in the short and probably medium term. “My current feeling is that we’ll have another good year in 2017,” Krechky says. “I have colleagues who say there has to be a downturn because things have been good for so long, but I can’t see any reason for this to happen.” Given the strength of the economy and the relatively large amount of money per capita that is available in Germany and Austria, it would seem difficult to disagree with his analysis. As Krechky puts it: “If you are a retailer, you should invest in Germany because of the stability of the market.” n

CONFERENCES & EVENTS AT MAPIC GERMANY Trends & business opportunities - strong, stronger, Germany!

Thursday 17 November – 13.00 -14.00 Room 1 - Palais -1

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UK

Brexit, the stage left The UK’s decision to leave the EU this summer was hailed as a potential economic disaster. But many commentators are now backtracking on their predictions for the UK economy and its residents’ spending power, writes Liz Morrell

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ESPITE dire warnings for the UK, in its half-yearly results in July developer/landlord intu reported that it had signed 27 new lettings since the outcome of the EU referendum vote. Similarly, developer Hammerson revealed strong leasing activity post-referendum, with 20 leases across its UK shopping centres and retail parks. “Notwithstanding the market uncertainty, we have been reassured by the level of leasing and investment activity post the EU referendum, both in our portfolio and across the wider property market,” says Robin Dobson, director of retail development at Hammerson. Nick Hart, head of UK and European shopping-centre investment at Savills, says things have been slow post-Brexit, but believes the UK was hitting the top of an investment cycle.

“Twenty-nine shopping centres completed this year with a value of £1.723bn,” he says. “Twenty-one were done in the first half, but people were beginning to sit on their hands. Post-Brexit, it’s been pretty slow, with not too many centres on the market that are actively for sale and lots that have been withdrawn.” This is partly because people do not need to sell. Instead, Hart believes investment will pick up towards the end of 2017. “That’s when we will start to see some interesting activity,” he says. For development, Hart predicts that the focus will continue to be on extensions. “As a general rule, it’s very difficult to make these developments stack financially, which is why we will see more scheme extensions, where you have existing income streams to support the development,” he says. Certainly, a number of extensions are

Open for business: NWEC will be promoting London to international investors and retailers

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UK currently under way. Hammerson’s £165m, 35,400 sq m development Victoria Gate, Leeds opens 20 October, anchored by department store John Lewis. At 74% let, tenants include Aspinal of London, Russell & Bromley, Gant and restaurant group D&D. The centre is part of the 53,400 sq m Victoria Estate shopping district, which also includes Hammerson’s luxury destination Victoria Quarter. It will comprise more than 30 retailers and restaurants in two covered arcades. In Southampton, Hammerson’s £85m, 17,000 sq m dining and leisure development WestQuay Watermark is due to open in early 2017 next to the company’s jointly owned WestQuay shopping centre. With a 10-screen Showcase Cinema de Lux and more than 20 new restaurants, cafes and bars, the centre is nearly fully let, with recent lettings including The Diner, TGI Friday’s and All Bar One’s first bar in Southampton. Both schemes will be showcased at MAPIC. The company is also working with jointventure partners on three London developments: an extension to Brent Cross, in conjunction with Standard Life; Bishopsgate Goodsyard; and, in Croydon, redevelopment of the Whitgift Centre and refurbishment of the Centrale shopping centre in conjunction with Westfield. The £1.4bn joint-venture in Croydon comprises more than 139,354 sq m and would re-establish the area as a premier shopping destination for South London. Work is expected to begin in the next two years. Westfield is also working on plans to introduce a second phase to its Westfield London development with a £600m expansion that will add 61,780 sq m of retail, residential and mixed-use space anchored by John Lewis and the only Imax cinema outside of central London. At the company’s half-year results presentation in August, it said the project was progressing well, with anticipated completion in the second half of 2018. Major extensions are also under way or planned for intu, which has a £600m development pipeline over the next three years. This year has already seen the completion and fully-let opening of new catering developments at intu Metrocentre and intu Bromley, and 20 new restaurants will open at intu Eldon Square this autumn, with only one left to let. The group has also completed the demolition work and begun the main contract for the £178m extension of intu Watford, which will bring a range of new brands, including

Hammerson’s WestQuay Watermark is due to open in early 2017

Debenhams and Cineworld, to the town. At intu Lakeside, a new leisure extension will be anchored by a 4,500 sq m Nickelodeon indoor family entertainment centre — the first in the UK — which is expected to open in 2018. The company is also into the detailed design phase of its redevelopment of intu Broadmarsh in Nottingham. Intu development director, Martin Breeden, says that recent lettings show the demand for such development is there. “Sentiment remains positive,” he adds. “We’re seeing retailers continue to expand and upsize in our retail destinations, and we recently worked with the likes of Smiggle, Tiger and Kiko to support their entry into the UK market.” At British Land, extensions are also a key focus, with a near-time pipeline that includes 15,600 sq m of leisure extensions at Drake

“Sentiment remains positive. We’re seeing retailers continue to expand and upsize in our retail destinations” Martin Breeden, intu Circus shopping centre in Plymouth and New Mersey Shopping Park in Speke. Medium-term plans include the mixed-use redevelopment of Eden Walk, Kingston and a significant leisure extension at Meadowhall, Sheffield. The company is also working on development plans for Canada Water, London with an outline planning application to be submitted next year. London itself remains a buoyant market,

Lakeside shopping centre

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UK according to New West End Company, which says the capital enjoyed a good summer and autumn, with a double layer of spend. “Londoners came back to the West End after the uncertainty created prior to the

referendum,” says Jace Tyrrell, chief executive of the New West End Company. “There has also been a significant rise in the number of foreign visitors attracted by the weaker pound, with some retailers attracting more

than a 30% increase in sales compared to the same period last year.” Meanwhile, £11m public-realm works are due to start in Bond Street in January. The Elizabeth line, the cross-city rail link currently being constructed by Crossrail, is expected to boost retail sales to £11.25bn annually — a further attraction for developers and investors looking to see how the UK is faring post-Brexit. n

“Londoners came back to the West End after the uncertainty created prior to the referendum” Jace Tyrrell, New West End Company

CONFERENCES & EVENTS AT MAPIC UNITED KINGDOM Good morning retail!

Thursday 17 November – 09.00 -10.00 Room 1 - Palais -1

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The planned intu Costa del Sol project

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Southern Europe

Southern Europe’s moment in the sun The success of MAPIC Italy in May demonstrated that Italian retail is back on investors’ shopping lists and development schemes are proliferating. Can the same be said for Spain and Portugal? Isobel Lee reports

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OMPETITION for prime assets in core European markets has been increasingly driving investors to Spain, Italy and Portugal, where impressive growth dynamics and quality assets have managed to impress. But as Brexit instability and supply-side issues summon the clouds, can the momentum be maintained? “Development — which stalled during the recession — is back in a big way in Italy,” says Massimo Moretti, chairman of the Italian Council of Shopping Centres (CNCC). “This year alone, with the launch of Arese, IKEA Brescia-Roncadelle and Scalo Milano, half a million square metres of new projects will

have opened by year end. And that’s just the beginning.” Next year will also have its share of openings, including the CityLife Shopping District, the

“Development is back in a big way in Italy. Half a million sq m of new projects will have opened by year end. And that’s just the beginning” Massimo Moretti, CNCC

retail component of the iconic central Milan scheme that features three towers designed by the late Zaha Hadid, Arata Isosaki and Daniel Libeskind. Spread over 32,000 sq m, it is destined to become the largest urban shopping district in the country, with a catchment area of 700,000 inhabitants for its 100 retail units, cinema and health club. CEO Fernando Oliveira of Sonae Sierra, mall manager of the scheme, reports that interest is high from potential tenants in the early stages of the leasing phase. “We’ve received numerous requests from national and international retailers and local operators and we’re currently evaluating the different proposals,” he says.

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Next year will see the opening of CityLife, the retail component of this central Milan scheme “What we can say is that the tenant mix will be positioned on a premium level, but affordable, in line with the target of people working in the offices and living in the residences of CityLife.” Meanwhile, Westfield Milan will break ground next year, with the Australian developer’s massive 185,000 sq m scheme set to launch at Christmas 2019. Already pencilled in are 300 stores, a luxury village, more than 50 restaurants, and leisure, entertainment and events facilities, as well as game-changing digital and tourism services. What makes the current renaissance interesting, CNCC’s Moretti says, is that it also involves regional centres and southern Italy. Svicom, a major Italian mall manager with more than 30 retail parks and shopping centres under management, is currently promoting two new projects in the Apulia region alone. Corrado Di Paolo, Svicom’s head of leasing, says: “The end of November will see the launch of GrandApulia, a 40,000 sq m scheme with over 100 stores near the city of Foggia. It will be the region’s most significant project in years and includes the Inditex stable of brands, H&M and Mediaworld. We’re also commercialising a project in the centre of Brindisi, a city which currently has no downtown malls and no retail parks.” Moretti adds: “We’re organising a session at MAPIC focusing on southern Italy’s appeal. It will be a data-heavy event illustrated by recent success stories — we’re going to let the numbers do the talking.” Other major Italian operators, including Immobiliare Grande Distribuzione SIIQ (IGD), also contribute to a picture of overall health for their country’s retail sector. “Our recent results marked our 10th consecutive quarter of growth for our centres,” says IGD CEO Claudio Albertini. “The Grosseto shopping centre in Tuscany will open at the end of October, and then we’ll be focusing on our huge mixed-use urban regeneration scheme in Livorno and the extension to our Ravenna mall.” Albertini adds: “We’re moderately positive for the end-of-year results, preview magazine I October 2016 I www.mapic.com

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Southern Europe Svicom’s GrandApulia scheme near the city of Foggia

while aware that we are in a tricky macro-economic environment. Variations are inevitable due to recent unseen events, from acts of terrorism to Brexit, which are bound to have an effect on Europe as a whole.” Figures from CBRE show that investment in Italian retail real estate rose this year, reaching around €700m for H1 2016, up 20% year on year. In Spain, meanwhile, some €1.34bn of retail assets were purchased in the first six months — a 30% drop on 2015. Both sentiment and supply are having an effect, suggests Knight Frank’s Spain managing director, Humphrey White, although the outlook is positive. Speaking in the wake of the country’s recent general elections, he says: “If Spain is capable of forming a stable government — which it looks like it will do — Madrid could be one of the most interesting capital cities in Europe.

“In Spain’s retail scene, both footfall and rents have now been rising for eight successive quarters. That’s sustainable growth, not a boom” Humphrey White, Knight Frank In the retail scene, both footfall and rents have now been rising for eight successive quarters. That’s sustainable growth, not a boom.” International development and investment has been encouraged, not least the UK’s intu, which took its first steps onto foreign soil in Spain. “intu Asturias and Puerto Venecia are

both performing strongly, reflecting the improvements we’ve made to their retail and leisure mix, with exciting new retailers including Samsung and Futbol Emotion and occupancy at nearly 100% at both centres,” says Martin Breeden, development director at intu. “We’re also just about to start on site on intu Costa del Sol, where our plans are to build a 175,000 sq m resort which will target the three million residents and 10 million annual tourists to the region. This is a worldclass project, which draws together the very best in retail, place making and leisure. “What we’ve already achieved is giving retailers confidence in our investment in Spain, which is translating into growing interest in our development pipeline at Vigo, Palma and Valencia. Around 80% of Spain’s retail expenditure comes from 10 key catchments

IGD’s Grosseto shopping centre in Tuscany will open at the end of October

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Southern Europe

IGD’s mixed-use urban regeneration scheme planned for Livorno and we aim to be the leading owner, developer and manager of regionally pre-eminent shopping centre destinations for a significant number of those areas.” Data from real estate consultant Aguirre Newman — debuting as an exhibitor at MAPIC this year — confirms the trend. “This year looks set to be the best year in terms of retail investment levels in Spain since 2007,” says Javier Revenga, Aguirre Newman’s director of shopping-centre management. “There are a number of shopping centre transactions currently in progress, which are expected to complete prior to year-end. If this is the case, 2016 will likely exceed 2014 in terms of transaction volumes and be the highest recorded year for almost a decade.” Revenga adds: “At MAPIC, we’ll be showcasing The Outlet Stores Alicante and La Noria Outlet Shopping in Murcia — great examples of how we have advised on the successful repositioning of retail schemes. We are also focusing on urban shopping centres, such as Moda Shopping in the financial district of Madrid, and ABC Serrano, also in the capital. And we will present our complete shopping-centre portfolio under management.” Outlet shopping is still a key trend in Spain and McArthurGlen, in collaboration with Sonae Sierra, will break ground on a brand new scheme for Malaga in 2017.

“Representing an investment of €115m, including the two phases, this is a one-of-akind project in the Costa del Sol; firstly, because there are no other designer outlets in Southern Spain and, secondly, because it involves the entry of the McArthurGlen Group into the Spanish market,” Sonae Sierra’s Oliveira says. The 30,000 sq m project’s first phase is scheduled to open in the summer of 2018, with the second phase arriving in 2020. Sonae Sierra also continues to dominate the scene in Portugal, where the shopping-centre specialist remains market leader, owning 21 centres across the country and managing more than 900,000 sq m of GLA. It is currently building one new scheme and extending another four. Oliver Fraser-Looen, director at Savills Global Retail Investment, says: “Assets from companies like Sonae Sierra really helped Portugal to come back to life after the downturn — even faster than Italy — and continue to attract attention. The main issue for investors is a shortage of product. The good stuff will always change hands; secondary stock less so.” Other major schemes in Portugal include IKEA Centres and ROS Retail Outlet Shopping’s Designer Outlet Algarve, set to open late summer 2017 with 110 shops just five minutes from Faro Airport.

“Most investors go to Italy, Spain and Portugal because they can’t get value in Germany, France and Benelux” Oliver Fraser-Looen, Savills

So will the latest economic and political shocks reverse this progress? Not necessarily, Fraser-Looen says: “Most investors go to Italy, Spain and Portugal because they can’t get value in Germany, France and Benelux. That’s likely to continue.” He adds: “Brexit isn’t necessarily bad news for real estate. Let’s not forget, property usually becomes more popular when the outlook for bonds and banks is unclear. As ever, quality is key.” n CONFERENCES & EVENTS AT MAPIC SPAIN Spain at the heart of Europe

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Benelux

Belgium enjoys ‘exceptional year’ Belgium is proving a huge draw for the Benelux region as several major projects near conclusion. Liz Morrell reports

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AST year was dubbed by JLL “the year of retail” for Belgium and “an exceptional year” for investment into the sector. And 2016 is expected to be similarly buoyant. According to JLL, the market saw an investment volume of just under €2.1bn on a total volume for all asset classes of €4.4bn, making retail the largest asset class of the year. JLL’s Pulse Retail report, published earlier this year, says that retail newcomers into the country included the likes of Apple, Prada and Bimba y Lola. Meanwhile, deals including a new 8,000 sq m store let by Primark in Mons and 6,700 sq m let by Inditex for its portfolio of brands in Docks Bruxsel have driven demand, with prime rents rising in high streets as a result.

The Docks Bruxsel project is one of two large schemes that are due to be delivered in Belgium this year. Located on the banks of the Brussels Canal, the centre’s signedup retailers include Media Markt, H&M and Inditex, as well as luxury brand Michael Kors. In May, it was announced that a new indoor leisure-park concept from France,

“We believe, in the Dutch retail market, there is unmet demand in both the premium department store and off-price segments” Jerry Storch, Hudson’s Bay Company

Koezio, will make its Belgium debut at the centre on its opening in October. The other large retail scheme is Rive Gauche in Charleroi, which is also due to open in the third quarter of 2016. Part of an urban regeneration project, the 85-store, 35,000 sq mGLA centre will mainly focus on personal goods and services. The next few years will also see the opening of Uplace inside the Brussels Ring, as well as the Mall of Europe, to the north of Belgium’s capital. Uplace, which will be at MAPIC again this year, will deliver 75,000 sq m of retail space comprising 270 stores as part of a mixed urban-use project that will also include offices, hotel and leisure. Nearly 60% of the GLA has now been let and the company is geared up for a February 2017 start on construction, with the scheme’s opening planned for April/May 2019. In July, Redevco acquired the Hydrion retail park in Arlon, capital of the southern Belgian province of Luxembourg, on behalf

Klepierre acquired the Hoog Catharijne centre in the Netherlands last year

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Benelux “In the Netherlands, demand for prime retail properties also remains strong” of one of its clients. The property, with a value of around €60m and a sub 6.0% yield, was acquired from Herald, a pan-European fund managed by TH Real Estate. Hydrion will be in the top three of Redevco’s largest retail parks by GLA in Belgium, where roughly a quarter of its €6.8bn European property portfolio is located. Suzy Denys, director of investments at Redevco Belgium, says: “Hydrion is the dominant retail park in the region and has a wide consumer catchment area due to its location close to the Arlon junction of the main highway linking Belgium to the nearby Grand Duchy of Luxembourg. There are a number of opportunities to add value to this property through active asset management. This transaction will strengthen our position as a retail specialist.” In the Netherlands, demand for prime retail properties also remains strong. Klepierre acquired the 100,000 sq m Hoog Catharijne last year and is expanding the scheme and has brought its latest digital offering to the mall, while Hudson’s Bay Company (HBC) is expanding its European presence with plans for up to 20 new stores in the Netherlands over the next 24 months. The company is now in the process of finalising long-term leases for “select, sought-after” locations. The first stores are expected to launch in summer 2017 and operate under the Hudson’s Bay brand, as well as the Saks OFF 5TH banner. Jerry Storch, HBC’s CEO, says: “We believe, in the Dutch retail market, there is unmet demand in both the premium department store and off-price segments.” In June, Multi’s Mosveld convenience shopping centre in Amsterdam-Noord was officially opened. The new centre, which is situated at the heart of Amsterdam-Noord, includes 7,000 sq m of retail and hospitality outlets, 53 private rental apartments, and 140 parking spaces. n

The Uplace retail scheme in Brussels

Redevco’s Hydrion centre close to Arlon

CONFERENCES & EVENTS AT MAPIC BELGIUM & LUXEMBOURG Retail in major Benelux cities: more than chocolate & waffles!

The Docks Bruxsel project is one of two large scheme that are due to be delivered in Belgium this year

Thursday 17 November – 11.30 -12.30 Room 2 - Palais -1

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Nordics

Europe’s northern stars

Urban Escape, AMF’s mixed-used scheme in Stockholm

The Nordic territories continue to draw in international retailers, developers and investors alike. Liz Morrell explains why their appeal is enduring

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HE KEY Nordic retail markets are proving an increasingly attractive destination for retailers looking to expand into the less obvious regions of Europe. A number of international retailers have debuted in the region in the last couple of years. Transaction volumes in the Nordic property market reached a record €18.6bn in the first half of this year, according to Pangea Property Partners, which says that 20% of this total was accounted for by the retail sector and included the purchase of Helsinki’s Forum shopping centre by Sponda.

International retailer expansion is expected to accelerate across the Nordics over the next couple of years, mainly as a result of the relatively low levels of competition between international brands. Indeed, according to JLL, more than half of the 250 international retailers it analysed have yet to open a standalone store in any of the key Nordic retail markets. Stockholm remains the springboard into the region, according to JLL’s first Destination Nordics report, largely due to its affluent, fashion-orientated consumer base. It has the highest presence of international

retailers — dominated by UK brand names — followed by Copenhagen, Oslo, Malmo, Gothenburg and Helsinki. In November, Unibail-Rodamco opened Sweden’s largest shopping centre and the biggest centre to open in Europe last year: Mall of Scandinavia, on the outskirts of Stockholm. The €640m development brought in 224 retailers, including Nordic market firsts for the likes of Nike, JD Sports and Oakley. “Since opening, the Mall of Scandinavia has performed very well, both in terms of footfall and sales, and in July, less than nine months after opening,

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Nordics “In July, less than nine months after opening, Mall of Scandinavia welcomed its 10 millionth visitor”

STOCKHOLM REGENERATION GROWS WITH CITY

Louise Bergqvist, Unibail-Rodamco

The Iso Omena centre in Matinkyla, near Helsinki it welcomed its 10 millionth visitor,” says Louise Bergqvist, shopping centre manager for Mall of Scandinavia. Although Copenhagen commands the highest rents for international and luxury retailers, it is Stockholm that is forecast to see the highest rental growth until 2017, according to JLL. It says, however, that Helsinki is currently the most untapped market for international retailers. A number of major out-of-town shopping centres are currently under development in the Finnish capital. The development of the Mall of Tripla will also see the largest shopping centre in Finland open in Helsinki. With a leasable floor area of 85,000 sq m, it will have a total of 250 retailers. The fashion space within the scheme is already 50% let and the grocery space more than 80% let, according to Pirjo Aalto, commercial development director for the Mall of Tripla. “Rental has proceeded superbly according to our plans,” she adds. A joint-venture financing agreement was signed earlier this summer and the centre’s opening is planned for the third quarter of 2019. Meanwhile, the first phase of the extension of the Iso Omena shopping centre in Matinkyla, located in the Helsinki area,

AMF Fastigheter is reshaping a large section of Stockholm, with a retail-led series of developments linked by offices, hotels, a small residential component, public spaces and innovative technology hubs leveraging the city’s growing reputation as a base for creative startups. At its heart is the 130,000 sq m mixed use Urban Escape Stockholm (UES) development anchored by Sweden’s busiest shopping mall Gallerian, plus 62,000 sq m of offices and two lifestyle hotels incorporating retail and restaurants. It is linked by four streets, surrounded by two public squares and connected at sky level with 3,500 sq m of public roof gardens, inside and outside space. The developments follow a 6,000 sq m extension to Gallerian which, when complete, will create 15-20 new units, with pre-lets already secured for Superdry and Nike. Meanwhile, Epicenter opened in January and comprises 5,000 sq m of co-working space for the digital and innovation sectors, with members including Microsoft, Tictail, Splay and Star Stable. Google for Entrepreneurs is technology partner and a second branch opened in Mood Stockholm this year. AMF Fastigheter has also signed the biggest hotel contract in Stockholm’s history with Nordic Choice Hotels, with 540 rooms and 10 bars, cafes and restaurants including a two-storey rooftop restaurant. “We recognise that a single development or building is only one element of the larger urban picture. To maximise value we need to maximise the value and vibrancy of the neighbourhoods in which they sit,” says Mats Hederos, CEO of AMF Fastigheter. “To put it simply, if the city thrives, our properties will thrive.” “Interesting retail spaces that interact with the surrounding offices and streetscapes is key to this,” Hederos says. “In bringing forward Urban Escape and extending the Mood concept we are ensuring our new neighbourhoods remain vibrant in the long term.”

Unibail-Rodamco’s Mall of Scandinavia opened in August. The new area adds 27,000 sq m of new GLA to the centre. The opening of the second phase, which consists of an additional 13,000 sq m of GLA, is scheduled for April 2017. n

CONFERENCES & EVENTS AT MAPIC THE NORDICS The Nordic art of retailing

Wednesday 16 November – 09.00 -10.00 Room 2 - Palais -1

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Russia & CEE Sonae Sierra’s ParkLake scheme in the Czech Republic

New dynamics recast Russia and the CEE Retail investment and activity continue apace in both the CEE and Russia. But it is the opportunities within the less obvious destinations that are driving some of the strongest growth, reports Liz Morrell

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HE RETAIL sector has driven investment volume in the CEE, according to CBRE, which says that investment into the CEE countries, excluding Russia, rose by 59% to hit nearly €5bn in the first half of this year compared with the same period last year. This is largely thanks to the closing of a number of prime, or close to prime, deals, mostly in regional cities in the CEE. Earlier this year, CBRE revealed that a record 185 new retail brands had entered five CEE countries, opening 550 stores in 2014 and 2015, with 75 more planned this year. Romania, Slovakia, the Czech Republic and Poland were all popular destinations. However, it was Romania that attracted the highest number of new brands during this period, with the Czech Republic proving the most popular for luxury tenants. Sonae Sierra’s €180m joint venture retail and leisure scheme ParkLake opened in September, developed in conjunction with Caelum Development and bringing the first Forever 21 to Romania.

In Slovakia, international demand is growing, according to Richard Urvay, director of asset and property management at Eurovea. At MAPIC last year, the company presented the planned extension of its centre. This year, it will be presenting specific floor plans for the new development.

“Investors are beginning to explore opportunities in new markets such as Romania and the former Yugoslavian countries” Walter Woelfler, CBRE Urvay says that the country is attractive for investors and retailers alike. “It is a secure country for retail investment, with long-term stable yields. It enjoys positive economic growth, which gives the opportunity for the expansion of new brands that are considering

entering the local retail market or enlarging their portfolio of brands,” he says. With investors having long looked to acquire properties in the core CEE countries of Poland, the Czech Republic and Slovakia, interest is now turning to other areas, according to Walter Woelfler, head of retail, Austria & CEE, for CBRE. “Investors are beginning to explore opportunities in new markets, such as Romania and the former Yugoslavian countries,” he says. Woelfler believes the fundamentals are attractive across the board in the region — not least because, when compared to Western Europe, most of the growth is taking place in-store rather than online. However, with a limited pipeline for new development, the attention will be on existing centres. “We will see a focus on the refurbishment and extension of existing schemes,” he says. Meanwhile, Hungary is also seeing strong growth, according to Tibor Tatar, CEO of Futureal, which currently has 12 projects under development in Budapest. Futureal will be showcasing its latest retail project — the

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Russia & CEE 53,000 sq m Etele Plaza scheme, which is now leasing — at MAPIC. The centre, which will focus on affordable fashion, is due to open in the fourth quarter of 2019. “Hungarian purchasing power has increased exponentially thanks to continuous GDP growth and the greatly improved performance of the economy,” Tatar says. “Retailers have recorded double-digit turnover growth in the past three years and, as a result, tenants are really enthusiastic about new schemes.” In Russia, things have slowed somewhat. In March, CBRE reported that retail premises delivery will be almost 30% lower than in 2015 — which itself was 13% lower than the year before. In total, developers have announced more than 3.2 million sq m of new construction for Russia for 2016-2017, some 2 million sq m of which is due this year. But according to CBRE, only around 60% of the new supply will be delivered in this period. Moscow retains its pull, however. CBRE’s first-half summary of the Moscow retail market reports that shopping centres in the region have seen footfall increases, although conversion rates remain low. Six new shopping centres are expected to open in Moscow by the end of the year, mostly in the third quarter. These include second phases by Capital Partners for Metropolis (leased by Cushman & Wakefield and Knight Frank) and Fashion House Outlet, as well as Oceania, Khorosho! and Butovo Mall.

The Etele Plaza project in Hungary

“Hungarian purchasing power has increased exponentially thanks to continuous GDP growth and the greatly improved performance of the economy” Tibor Tatar, Futureal

Moscow’s Fashion House outlet centre

RUSSIAN BREAKFAST

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THE RUSSIAN Breakfast at MAPIC is a traditional event, which aims to analyse the main trends, challenges and their possible influences on the retail market. This year the key topic is the needs and wishes of contemporary customers. Speakers will discuss how to manage customer expectations for discounting and to adapt business to a new consumer model, as well as new formats for food courts and multifunctional centres in shopping centres.

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The Russian Breakfast will take place on November 17, from 08.00-11.30.

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Russia & CEE Sandrine Moreau, marketing director of Capital Partners, says: “Metropolis has been a resounding success and this extension continues to build on this legacy. In its distinct atmosphere and striking design, it will host more world-class fashion, lifestyle and home brands.” Consisting of around 300,000 sq m of space, these new openings are expected to increase average vacancy rates from 9.3% to 11.1% by the end of the year, according to CBRE, which says the new retail projects will typically open with 40%-50% vacancy. Around 20 new retail chains entered the Moscow market in the first half of 2016, twothirds of which opened their first stores in shopping centres. Fashion retailers dominate the line-up, ranging from middle-plus to premium brands. Another 18 brands, including Walt Disney and Cortefiel, have also announced plans to open. Although higher-end fashion may dominate the retailer debuts in Moscow, it is the massmarket and economy retailers that are dominating store openings in the rest of the coun031_FREEDOME try, accounting for nearly two thirds of all

Apsys’ Posnania centre in Poznan, Poland

openings in 2015, according to CBRE. The FMCG sector is seeing the biggest growth, with more than 2 million sq m, or 2,479 stores, planned. These include stores from market leaders Magnit and X5 Retail Group.

USA Retail:

Strategies for Successfully Bringing Your Brand to the States

Are you considering expanding to the States? Come and meet a diverse panel of experts with decades of experience in counseling retailers on their USA expansion plans. ■ ■ ■ ■ ■

SRV opened its new shopping and entertainment centre, the 140,000 sq m Ohta Mall, in St Petersburg on 27 August. The largest new retail project in the city, it includes Ohta LAB — the first cultural and educational

Where should you locate? High Street or the Malls? Where is your customer? Will your brand translate easily or must you adapt? How do you find top talent?

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Mark MILLMAN, Millman Executive Search (USA) Mark ROBERTS, WS Development (USA)

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Russia & CEE

Moscow’s Metropolis project space in a shopping centre in Russia, which will showcase the outstanding projects in the fields of education, art, science and business. VTB Arena Park, the mixed-use development of Dynamo football stadium and its environs, has “huge social importance for our city and for our country”, says Andrey

Peregoudov, general director of MC Dynamo Co, the development company controlled by VTB. VTB was originally providing debt financing to the Dynamo Sports Society, which planned to build the facility. In 2010, VTB took control and set up a management

POSNANIA OPENS IN POZNAN AMONG the latest signatories to the Apsys scheme Posnania, in Polish city Poznan, is US fashion brand Forever 21, which has reached 95% leasable area. Posnania became the largest commercial and lifestyle project in the Wielkopolska region when it opened on October 19. Fashion brands represent the largest group of Posnania’s new tenants, including Caterina, Patrizia Aryton, Lee Wrangler, Orsay, Tatuum and Esprit. Male collections will be available from Prochnik, Vistula, Bytom, and Pierre Cardin, while Bartek, Smyk, and Toys’R’Us will offer children’s fashion and toys. New premium brands include US Polo, Guess by Marciano, Trussardi, Tous and a fashion boutique Bizuu. Lifestyle offers will take up 25,000 sq m, a quarter of Posnania’s available floor space. “I am glad that the globally known US fashion brand Forever 21 will make its debut in Poznan. Posnania’s tenants, including Carrefour, Leroy Merlin and Inditex Group, have already started works on the arrangement of their stores,” says Marek Bledowski, commercial director at Apsys Polska.

company named MC Dynamo to develop it. Also mixing leisure, culture and retail is ADG Group, which won a Moscow government auction in December 2014 to acquire 39 cinemas. The aim is to return them to their former function as focal points for local residents, while ensuring their commercial viability. In addition to cinemas, the new centres will include cafes, restaurants, cultural and recreational facilities, and shops. The percentage of cultural and educational facilities for each project will not be less than 30%. Further afield, Galleria Tblisi is due to open in 2017. Leased by Colliers International, Co-Investment Fund’s executive director, Giorgi Bachiashvili, says that the $77m investment will see Moshe Tzur Architects create a 22,000 sq m mall across five floors, plus a food zone, with restaurants and cafes integrated in a single space. n

CONFERENCES & EVENTS AT MAPIC RUSSIAN FEDERATION Expanding your business in Russia

Wednesday 16 November – 11.00 -12.00 Room 1 - Palais -1

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Voronezh region

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Architectural projects ready for realization in Voronezh and Voronezh Region that are published in our magazine

The regional specialized title Paradnyj kvartal has been a media partner of MAPIC for four years. Our mission is to represent Voronezh region and the city Voronezh – the capital of Central Chernozem Region – as an actively developing administrative unit with interesting projects and investment sites in stock.

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Turkey & MENA

The magnetic east Abu Dhabi’s Al Maryah Central is on schedule to open in 2018

Stretching from the western Mediterranean to the deserts of North Africa, the MENA region is diverse, powerful and sometimes perplexing. But it is also rich with opportunities for retailers, developers and investors, writes Ben Cooper

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ITH every year that passes and every new generation that emerges, the countries of North Africa and the Middle East (MENA) are playing a bigger role at MAPIC. For most Western retailers, the Middle East is synonymous with the UAE. Dubai, Abu Dhabi and Qatar have exerted a magnetic effect on international brands and businesses for years — and retailers too many to name have seized the opportunity. European and US shoppers walking around a mall in Dubai might wonder whether they have left home at all. Inditex, H&M, Carrefour, Harvey Nichols, Bloomingdales, M&S — all are present and thriving. In the last year, a string of new openings has got shoppers excited, not least by Apple, which has launched its first two UAE stores in Dubai and Abu Dhabi.

“Retailers see the Middle East as connecting their brands to a very fashionsavvy population with a spend per capita that is among the highest globally” Stuart Gissing, Colliers International

Stuart Gissing, regional director for the Middle East at Colliers International, says that openings like these, and the expansion of other retailers’ presence, are a sign of growing confidence in the UAE and an affirmation of the country’s status in the region. “These continue to widen the retail offering

that visitors and residents of the Middle East see when they travel,” he adds. “Retailers see the Middle East as connecting their brands to a very fashion-savvy population with spend per capita among the highest globally. Dubai continues to be a main staging destination for global brand and franchise entry and expansion, and it remains one of the highest brand penetration locations worldwide.” With so much demand and confidence, inevitably retail property development activity is moving at a phenomenal rate throughout the UAE. Research from CBRE puts the current development pipeline between Abu Dhabi and Dubai at well over 600,000 sq m — an 11% increase from 2015. Dubai accounts for just over half of this, with major projects including the Nakheel Mall and The Pointe under way. Meanwhile, in Abu Dhabi the largest mall project in the pipeline — the 146,000

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Turkey & MENA sq m Al Maryah Central — is on course for a 2018 opening. However, the highest volume of development activity in the MENA region is to be found in Turkey, which added the second highest amount of new space of any country in Europe at the end of last year — some 430,000 sq m in just six months. And in the first half of 2016, CBRE put the development figure at well over 2 million sq m, second only to Russia in the European ranking. By the end of last year, the combined leasable area of retail space in Istanbul alone had reached 3.9 million sq m, according to JLL. This is set to increase yet further with another 881,000 sq m due by the end of 2017 — the largest pipeline of new shopping centres of any city in Europe. Across Turkey, a similarly ambitious growth story is being told. By the end of next year there are predicted to be more than 450 malls in Turkey, compared to 361 at the end of 2015. While Istanbul will be home to the most growth and development, 10 centres are in the pipeline for the capital Ankara, while dozens of smaller provincial malls and outlets are taking shape throughout the country. Among the many projects in the pipeline there are some notable examples. In Belgrade Forest outside Maslak on the outskirts of Istanbul, a joint venture between Artas Construction, Aydinli Group and Invest Construction is busy on a major 424,000 sq m mixed-use scheme that typifies the new generation of retail space. The Vadistanbul Buylvar project will bring with it just over 100,000 sq m of mall space and 1,900 flats, as well as office space, hotels and leisure. By the end of this year, the second

Park Mall opened in Algiers in February this year

The Cleopatra Mall in Cairo, Egypt, is under construction phase of Vadistanbul will be complete, with the third phase, which includes the bulk of the retail space, due by the end of 2017. A decade ago the shopping mall was almost unheard of in Algeria. Today it is a very different story. The big game-changer came in 2009 with the country’s first major shopping centre, the Bab Ezzouar mall, a project led by owner Societe des Centres Commerciaux d’Algerie (SCCA). That development opened the doors for more retail property activity. The most recent addition to the market was the Park Mall in Setif, 250 km east of Algiers, which opened in February this year. Owner Prombati has delivered 45,000 sq m of mixed-use space, including 82 retail units, a Marriot hotel, a wide range of food and entertainment, and

even an indoor ice-skating rink. Park Mall was a major step forward. However, it is now only the fourth-largest mall in Algeria — and there are more on the way. This kind of development is changing Algerian retail, which has traditionally been dominated by small independent businesses and a few huge grocery conglomerates. It is also making the whole market a more attractive and sought-after destination for international retailers. The SCCA has big plans to take this even further by opening Algeria up to the world. The next big development will take place in the city of Oran, where the construction of the EsSenia mall is well under way, with a scheduled completion of spring 2017. The group is also planning longer-term construction projects in Algiers, Setif and Constantine. Whereas Algeria is still developing — albeit impressively — into a modern retail market, Morocco is well on the way to maturity. One of the key players in the development market, Group AKSAL, has changed the face of Moroccan retailing and is set to continue on this mission. One of the company’s crowning achievements, the Morocco Mall in Casablanca, which opened in 2011, was a significant moment in both the country and Africa’s history — it is still the largest mall anywhere on the continent. Now AKSAL is building another landmark centre in Rabat, which the company says will emulate and improve on the success of the Morocco Mall. AKSAL is transforming a 6 ha site into a major mixed-use space, with 200 retail and catering units, a hotel and a multiplex cinema.

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Turkey & MENA Interest in Morocco continues to grow, especially from fashion retailers. To date, AKSAL has ushered in a number of brands to the country, including Gucci, Massimo Dutti, Zara and Ralph Lauren. It will be looking to continue the trend in Rabat. Throughout Morocco, malls are thriving, from Carre Eden and Almazar in Marrakech to the Borj Fez in Fes. Planning for the

future, the Moroccan Department of Trade and Industry is delivering the Vision 2020 Rawaj masterplan to boost retail and general trading activity. This far-reaching strategy presents numerous opportunities to retailers, investors and developers — from new malls, outlets, supermarkets and hypermarkets, Morocco offers an abundance of new development and retail space.

After the turbulence of recent years, Egypt is stabilising both politically and economically. This stability has brought with it a new wave of retailer property development and foreign investment. Last year’s game-changing opening — the 162,000 sq m Mall of Egypt in Cairo — precedes a number of significant schemes now under construction. Notable among these is Cairo’s 115,000 sq m Cleopatra Mall, with an iconic musical fountain as a centrepiece, which will feature some 300 retail stores, food markets and leisure facilities. n CONFERENCES & EVENTS AT MAPIC MIDDLE EAST How tall is retail?

Wednesday 16 November – 16.30 -17.30 Room 1 - Palais -1 NORTH AFRICA Focus on the next development projects in Morocco, Algeria, Egypt & Tunisia

Wednesday 16 November – 17.30 -18.30 Room 2 - Palais -1 TURKEY Bridging Europe & Asia: Turkey is the new hub for the retail industry!

By033_RM year-end the AUTOPROMO_PV_PIC second phase of Turkey’s Vadistanbul scheme will be complete, with the third phase due by the end of 2017

Wednesday 16 November – 15.00 -16.00 Room 2 - Palais -1

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The American Market is today pioneering new concepts on dining, entertainment experiences and more broadly on Retail. MAPIC invites you to visit the USA Pavilion to discover the current retail landscape in America.

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The Grandscape mixed-use scheme in The Colony, north of Dallas, Texas

The US

In search of the urban experience Being both over-stored yet under-developed, the US remains a retail dichotomy as an increasingly urban population demands retail, dining and entertainment experiences close to home. Debra Hazel reports

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EVELOPERS are learning to build in the US’ gateway cities. And if their project isn’t located in one, they are recreating the experience in close-in suburbs and boroughs. From Brooklyn to Texas and beyond, developers are renovating, expanding and finding the occasional opportunity to create something completely new. The US also remains especially popular among global investors. “It’s still the safest haven. We’re all still seeing strong demand,” says Scott Kempton, managing director at TIAA-CREF, New York. But investors insist on quality, adds colleague John Ragland, TIAA-CREF’s senior director of global real estate. “There is strong investor demand for grocery-anchored centres and for urbanisation,” he adds. New projects include multiple uses and focus on experiences to attract baby boomers who already have enough material goods, and the debt-laden millennials, who have very different expectations for their lives and needs. Existing properties must contend with continuing consolidation among their traditional department-store anchors. “We’re seeing urbanisation everywhere,”

“We’re seeing urbanisation everywhere” Grant Benson, Dunkin’ Brands

says Grant Benson, vice-president of global franchising and business development at Dunkin’ Brands, the Canton, Massachusettsbased operator of more than 8,500 Dunkin‘ Donuts and Baskin Robbins stores in the US. In fact, urbanisation is so strong that retailers are now looking beyond major cities to create the experience, with a key component being food. While centres in recent years have allocated more space to dining, leasing executives are now looking for even more unique experiences, including chef-driven restaurants, farmto-table events and European-style food halls. City Point, now opening in phases in downtown Brooklyn, New York will boast both the DeKalb Food Market, featuring local produce and gourmet food vendors, and a Trader Joe’s market to serve both daytime office workers and the growing residential population in a rapidly transforming urban district, says developer Acadia Realty Trust.

“Food essentially is a fourth anchor,” says Christopher Conlon, executive vice-president and chief operating officer of Rye, New York-based Acadia, which has shifted its strategy to urban and high-street retail. City Point features 700,000 sq ft (65,032 sq m) of retail on six levels, including general merchandiser Target and locally renowned upscale off-price retailer Century 21, with the Alamo Drafthouse Cinema creating an entertainment core. The anchors will be joined by small shop retail, attracted by City Point’s proximity but affordability compared to nearby Manhattan, where retail rents can soar to thousands of dollars per square foot. “In boardrooms around the world, Brooklyn is being discussed,” Conlon says. “It’s a relatively low-cost entry for an urban play.” Also promoting affordable proximity to a top US urban market is Grandscape, where developer Nebraska Furniture Mart (owned by renowned billionaire investor Warren Buffet’s Berkshire Hathaway) is creating a 433-acre (175.2 ha) community with retail, dining, multi-family housing and a limited-service hotel in The Colony, north of Dallas, Texas. Now open, Nebraska Furniture Mart offers 1.3 million square feet of electronics, home

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The US furnishings and more, in both selling and distribution space. The retailer — which also has locations in Omaha (Nebraska), Kansas City (Kansas) and Des Moines (Iowa) — draws from such a wide radius that creating an experience was critical, explains Jeff Lind, president of Grandscape, Charlotte, North Carolina. The next phase, to open in 2019/2020, will include retail and dining around an artificial lake, anchored by a 300,000 sq ft Scheels All Sport superstore (the largest all-sports store in the world), joined by 55,000 sq ft of dining. “We want to be able to create a one-of-a-kind experience,” says Lind, who adds that the key to international leasing is to show the strength of both the project and the Dallas market. “We began with the Nebraska Furniture Mart, and now are looking at the best tenants in the country and the world. You can come to the fourth largest media market in the US, without paying Fifth Avenue prices.” Creating experiences is also key to getting people out of the house, notes Scott Forbes, founder and president of International Play Company, based in Langley, British Columbia, Canada, which creates play areas in 60 countries. “People are looking for the next thing,” he says. “The family business is different — if you do a good job, the kids will come back as they get older.” But the spaces must adapt, says Virginie Guilbeault, vice-president of business development for Europe and the Middle East at Vortex Aquatic Structures International, based in Pointe-Claire, Quebec, Canada, which operates water-based play areas. “Our solutions have always brought traffic into spaces,” Guilbeault says. “For retail centres, we’ve had to be very conscious of space and layout, as well as water usage. The US centres

Vortex Aquatic Structures operates water-based play areas

Acadia’s City Point scheme in Brooklyn, New York

“It’s still the safest haven. We’re all still seeing strong demand” Scott Kempton, TIAA-CREF

we’ve been talking to see an opportunity to offer something that online retail cannot — a family entertainment experience. And they’re looking for ways to do that to increase their demographic and keep people onsite longer.” Traditional regional mall developers, meanwhile, are contending with anchor closings. Macy’s recently announced plans to shutter 100 department stores around the US, mostly in 2017. Walmart, which generally operates in community centres and in freestanding locations, is shuttering 154 US stores. This leaves their former landlords with the quandary of how to fill the space — with some finding the challenge easier than others. “It’s really a tale of two cities,” TIAACREF’s Ragland says. “With a top-quality mall, a lost anchor is looked at as an opportunity. We had a centre in Florida that lost a Saks and a Nordstrom. We got a Crayola and Dick’s Sporting Goods.” Some developers are looking to alternative

uses, including fitness centres and medical facilities. Chicago-based Starwood Retail Partners is replacing a vacated Lord & Taylor at Fairlane Town Center in Dearborn, Michigan with office space for Ford Motor Corporation. Another new challenge is how to deal with the college debt-burdened, unmaterialistic, tech-oriented millennial generation. “Our marketing targets millennials — those who are very social-network oriented,” says Eli Haddad, founder and managing director of New York-based Beverly Hills Polo Club, which had been bringing the fashion brand to emerging markets, but is now focusing more on Western Europe, where trends bear distinct similarities to those in the US. “Our offering of affordable luxury is now rather timely for developed markets,” Haddad adds. “This is a great time for a market entry if you have a brand that appeals to middleclass consumers. They want quality and crave the ability to make a personal statement.” n CONFERENCES & EVENTS AT MAPIC USA Click to bricks & innovative retail: be connected to the new American dream!

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Canada

International retailers target expansion across Canada Nordstrom is renovating its Toronto Easton Centre store

As a mature global retail market, Canada is seeing many of the same development and trends as the US. The focus is on urbanisation and renovation, while the outlet sector continues to expand, writes Debra Hazel

A

CCORDING to CBRE’s latest Canadian Market Outlook, foreign retailers will view Canada as “a worthy destination” in 2016, but are likely to be more selective in terms of location and roll out more gradually. The report adds: “Canada’s appeal stems from store productivity and less competition for new entrants than some other hotly targeted destinations.” Much as with other major markets worldwide, retailers already on high streets will expand to established luxury malls, such as Yorkdale Shopping Centre in Toronto and CF Pacific Centre in Vancouver, the report says. “Retailers are looking at opportunities more globally,” says Nidae Abbas, vice-president of global retail and business development at Ivanhoe Cambridge, Montreal.

The international retailers that are expanding in Canada include aspirational luxury brands such as Ted Baker, The Kooples and AllSaints, as well as the fast fashion-oriented Primark and the Inditex brands. Meanwhile, mixed-use continues to expand, including Cadillac Fairview’s addition of condominiums to CF Shops at Don Mills in Toronto. Refurbishments are also a focus, with examples including CF Sherway Gardens and CF Toronto Eaton Centre in Toronto, CF Rideau Centre in Ottawa, and CF Masonville Place in London, Ontario. But major development is taking place in the value sector: the 1.2 million sq ft, C$600m Twawwassen Mills in Twawwassen, British Columbia, opened in early October with an international roster of tenants including Bass Pro, Nike, Saks OFF 5TH, Marshalls, Eddie

Bauer, Lucky Brands, Zumiez, The Outlet by Harry Rosen and Lululemon. “In the last few years, we’ve seen a lot of growth in the Mills and outlet properties, and it will [continue] for the foreseeable future,” says Sean Walters, senior vice-president of leasing, Mills and Outlets, retail, at Ivanhoe Cambridge. The company’s redevelopments include Oshawa Centre outside Toronto, Carrefour de l’Estrie in Sherbrooke and Place Ste Foy in Quebec City. The company is also expanding the percentage of food offerings at its properties, with a goal of 25% of the mix. “Canada is five to 10 years behind the UK in food and beverage offerings,” Walters adds. Also look for more technology to be integrated into centres, reports Tracy Smith, vicepresident of digital marketing and solutions at Ivanhoe Cambridge. “People start shopping from their homes and that pushes into the mall itself,” Smith says. “We’re working with beacon technology and wayfinding technology to help find parking spaces.” Other technology will help centres know their customers better and understand traffic flow — information that can be invaluable to retailers. n

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Latin America

Development continues to grow despite the tough challenges Unlike its neighbours in North America, Latin America remains a region of new retail development, with international players looking to cities for growth. Debra Hazel reports

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ATIN America continues to attract, despite tough economic times. “Global retail brands from Europe and North America keep entering Latin America, from luxury fashion to fast fashion, casual dining, entertainment, accessories and specialty retail,” says Jorge Lizan, founder and managing director of Lizan Retail Advisors, a New York Citybased international retail consultancy. Six new projects are expected to open this year in Peru, attracting retailers including Forever 21 and H&M. Uniqlo, Charlotte Russ and Topshop are also eyeing the country, says AT Kearney report The 2016 Global Retail Development Index: Global Retail Expansion at a Crossroads. While urban areas remain the most desired, secondary cities and emerging neighbourhoods in Lima also are attracting interest.

While sales declined 20% last year in the more mature Colombia, luxury retailers including Le Creuset and Jimmy Choo, and fashion retailers such as Havaianas have entered the country. Nearly two dozen new retail projects are expected to debut around Colombia this year. Despite political instability in Brazil and declining retail sales overall, the luxury sector continues to grow, as affluent locals stay at home to shop. Carrefour Property is developing the five-level, 110,000 sq m Jardim Pamplona, located in Jardins, an upscale neighbourhood in the heart of São Paulo. The French developer says that its ambition for the scheme — which is due to open next year and which will have 80 stores including Brazil’s first Carrefour flagship hypermarket, Renner and KaLunga, plus a ‘gourmet terrace’ and gym — is to be a meeting point that

combines the best aspects of the region, including the traditional atmosphere of Jardim Paulista with the modernity of Faria Lima; the tranquility of Jardins with the lively pace of the cultural hub of Pinheiros; and the diversity of Bela Vista with the familiar environment of Jardim Paulista. Also keep an eye on emerging Paraguay, which is making an effort to attract foreign investment. Recently opened Paseo La Galeria in Asuncion, for example, has attracted international retailers including Aldo, Cinemark, Calvin Klein and Zara. Overall, however, occupancy rates in the region are high, with top properties boasting long waiting lists. “The real trend in Latin America is the expansions and adaptation to accommodate fast-fashion retailers and larger format tenants,” Lizan says. “It is a developers’ world in Latin America.” n

Carrefour Property’s Jardim Pamplona in Sao Paulo

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Asia Opening in 2018, Aeon Mall’s Onahama centre is conceived as a “new type of mall”

All change in China China’s love story with shopping, especially high-end, branded luxury goods, has started to cool after a decade of heady growth. Increasingly discerning Chinese consumers are looking for fresh experiences, says Helen Roxburgh

C

HINA’s retail sales more than tripled from RMB 6.7 trillion in 2005 to RMB 27 trillion in 2014. But a slowing economy and a stringent anti-corruption drive have hit many brands hard and, as more Chinese travel abroad, they are increasingly choosing to purchase goods in other locations, often much cheaper than those subjected to heavy import taxes in China. This has created challenges at home. Just as many brands slow their rapid expansion, a flood of new retail space is coming to market. CBRE figures suggest that China holds nine spots among the top 10 most active cities for shopping centre construction globally. Shanghai has 4.1 million sq m under construction, while Shenzhen and Chengdu both have more than 20 projects in the pipeline. JLL estimates that only 10%-15% of China’s retail space is at international standard. “There are many good malls in China, but there are many, many that are struggling,” says Harry Tan, head of research for AsiaPacific at TH Real Estate. “It is about

location, but it is also about the operator and building relationships with the brands.” Professional mall management is a new but growing field in China, and repositioning projects is also a growing opportunity. One of Gaw Capital’s funds acquired Pacific Century Place in Beijing for $928m in 2014. Previously a department store with serviced apartments, the new project has been repurposed to fit Beijing’s more discerning consumers, with ‘mini blocks’ of retail and increased dining space. President and managing principal Kenneth Gaw says the capital value of the retail has already increased several times over.

“There are many good malls in China, but there are many, many that are struggling” Harry Tan, TH Real Estate

HOW TO CRACK KOREA SOUTH Korea’s retail market took a knock from the spread of the MERS virus last year, with many visiting shoppers scared away, especially from China. The country has proved to be a difficult market to crack for a number of Western-focused multinationals. Walmart and Carrefour are two international brands that have struggled to cater to local tastes and have withdrawn from the market. However, other brands are still keen to expand there, with UK pharmacy brand Boots looking to roll out stores this year. South Korea accounts for around 5% of the global market for personal luxury goods, with 75% of this spending concentrated in its capital Seoul, which has grown two times faster than the country’s GDP. However, South Korea’s retail market still saw growth overall last year. According to figures from Euromonitor International, beauty-specialist retailers, home-furnishing stores and sportsgoods stores posted particularly strong performances.

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Asia And new branded development continues. Vice-president of Dalian Wanda, Wang Zhibin, outlined plans to open 60 new malls in 2016 at the Retail Real Estate Market (MAPIC China Summit) 2016 conference in Shanghai, on top of the developer’s existing 133 locations. “By the end of 2017, we will be opening 50 new plazas a year,” he said. The other challenge in China is retail space in the wrong locations. “Retailers do need to be more educated as to how they determine their expansion plan and select shopping malls, seeking those developments that are more creative in the positioning and tenant mix, with good locations, design and transportation links,” says Joel Stephen, senior director and head of retailer representation in Asia for CBRE. However, there are still many brands that see opportunities in China. “We are seeing a shift in the types of retailers entering the market,” Stephen adds. “Previously, fashion dominated. However, cosmetics, food and beverage

“We are seeing a shift in the types of retailers entering the market. Cosmetics, food and beverage, lifestyle and entertainment now make up over 60% of new entrants” Joel Stephen, CBRE

[F&B], lifestyle and entertainment are now making up over 60% of new entrants.” One new brand in China is UK toy retailer Hamley’s, which has plans to launch its 5,000 sq m debut store in Nanjing this year. Lingerie chain Victoria’s Secret also made its first foray into the market last year. Sports giant Adidas, meanwhile, has plans for 3,000 new stores in China, and US coffee brand Starbucks will build on its huge China base with 500 new stores every year for the next five years. “The market penetration of high-quality shopping centres throughout China is still relatively low. We see tremendous potential for one-stop shopping malls that offer the full-service retail experience customised to local consumer preferences,” says May Huang, deputy general manager of strategic planning department, SCPG. SCPG has been building malls in the Yangtze River Delta area, the Pearl River Delta area and the Bohai Rim Region, which have witnessed rapid economic growth and the fastest growth rate of middle-income households in China. Working with partners including Simon Properties and CapitaLand, recent developments include the acquisition of Xi’an VivoCity shopping mall from Singapore’s Mapletree Group, SCPG’s second acquisition in the past two years, plus the buy-back of Carlyle’s shares of In-City Malls in Suzhou and Hangzhou (Gudun Road). Fion Hui, SCPG chief commercial officer, adds: “With rising private consumption, Chinese consumers are increasingly demanding a ‘one-stop’ experiential shopping

Dongguan Dongcheng Wanda Plaza

CapitaLand’s Raffles City development in Changning

SLOWER IN SINGAPORE SINGAPORE’s retail market has also been feeling the impact of the Chinese slowdown and growing competition from local markets. Investors have poured S$10bn into retail developments over the last five years, boosting commercial space and leaving a substantial development pipeline. More than 185,806 sq m of new retail space will come to market in Singapore by the end of 2017, including 14 major new projects. However, these come at a time when many shops are downsizing or delaying openings. A slowing local economy and a drop in spending by tourists is causing a chill in the country’s retail sector. Many of the Asian tourists who used to head to Singapore from Indonesia, Malaysia and Thailand can now access cheaper versions of the same products at home. As retailers have struggled and space expanded, vacancy rates in Singapore have risen to 7.3% — and industry analysts expect them to keep rising. However, most developers and landlords in Singapore are relatively well protected as they have spread investments across other markets and sectors. And Singapore is still drawing new tenants, with Apple reportedly planning its first retail store in the city-state.

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Asia experience. The other key success factor is technology. Leveraging our ‘e-Incity’ platform, our shopping centres are able to link consumers to third party service providers such as Dianping (consumer reviews) and Alipay (online payment) to connect online and offline.” Indeed, malls in China are allocating room not only to F&B and cinemas, but ice rinks, language schools, doctors, theme parks, museums, spas and more. The K11 art malls are popular examples of malls as entertainment centres — the brand hosts big-name art exhibitions such as Monet and Dali, and inmall experiences such as the K11 Garden. However, retailers say landlords need to adjust their thinking to sign key experience tenants, including offering longer leases. “The shopping developers here are still in the phase where they own the space, and the retailers are going to ask for the space,” says Gian Anestis Avraam, vice-president of international sales and business development at QubicaAMF Worldwide, which operates bowling alleys. “Location is very important here. But on the other hand, the malls are

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Asia becoming much bigger. And the more square metres you have, the more you need to fill them up. Entertainment is the way.” He adds: “Landlords in China need to understand that, when you do an entertainment centre, the tenant will look at investing $2m$4m and you can’t invest that much with only a three-year lease agreement. You need to have an open mind to new deals.” Also benefiting from the changing Chinese market are luxury outlet malls. The level of international graded outlet-mall space in China is less than one hundredth of the space in the US, and investors see a huge opportunity. TH Real Estate announced plans this year to launch a China Outlet Mall Fund, which will be seeded with two existing assets in Jingjing and Shanghai, and grow the portfolio to $2bn in five years. European luxury outlet chain Value Retail, the developer behind the UK’s Bicester Village,

“The more square metres you have, the more you need to fill them up. Entertainment is the way” Gian Anestis Avraam, QubicaAMF Worldwide also opened a huge development consisting of 100 stores in Suzhou in May. A second outlet mall also opened in May on the outskirts of the Shanghai Disney Resort development. “Luxury outlet malls that offer significant discounts for price-conscious Chinese customers become a destination in themselves,” TH Real Estate’s Tan says. “In our experience, it is a very attractive shopping environment for Chinese shoppers. It becomes like

a day out, with nice food, nice architecture and the opportunity to buy designer goods at a 50%-60% discount.” Other new retail frontiers in China include tie-ups between developers like China Vanke and technology giant Baidu. Focusing on new ‘O2O’ (online-to-offline) concepts, these deals are heralding a new generation of ‘smart malls’ incorporating mobile payments, digital offers and personalised content, helping to drive China’s digital shoppers back to bricks and mortar. n

SCPG’s Hangzhou InCity Mall

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NEW HORIZONS IN JAPAN AEON operates 147 shopping malls in Japan, 12 malls in China, four malls in Vietnam and one mall in each of Indonesia and Cambodia currently. Moreover, the company is expanding development in Asia. In Japan, there are five new projects scheduled for 2017, plus five more in 2018. The company is planning 44 mall refurbishments. The 93,100 sq m Onahama project is opening in Q3 2018. The mall, which will have a GLA of 50,200 sq m, is located in the Tohoku area of Japan and has been conceived as a new type of shopping centre, taking advantage of the ocean view and part of the concept includes a new ‘market-style’ approach so customers can take advantage of the rich natural environment (there is a fish market in front) and will be integrated with local industries. It will also be built with disaster prevention in mind. Aeon says it would like to continue to expand various brands and cultures from overseas and encourage expanding businesses into the Japanese market, with marketing support for those brands.

Gaw Capital’s Pacific Century Place in Beijing

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Mapic 2016 preview magazine  

MAPIC 2016 preview magazine; retail real estate; retail; retail trends; Mapic awards; trade show; cannes; conferences; networking