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MORE+ Vision n°4
                                                                                    January 2012



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every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up




What’s in store
  for 2012

NEW YEAR                                              What 2012
 EXCLUSIVE                                            has in store
   EDITION                                           for the retail
                                                      real estate
                                                       industry
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WELCOME TO AN
EXCLUSIVE EDITION OF
MORE VISION BY MAPIC

WHAT’S IN STORE
   FOR 2012
Dear readers, users, viewers, of More Vision
“ We are extremely happy to introduce our very special January edition
of MORE Vision, featuring more news, more exclusive content, more
videos, and more in-depth analysis and commentary from our invited
guests, special contributors and our research and web searches. This
new year edition is also the perfect occasion for us to thank you all for
your interest in the bi-monthly More Vision, which has seen a steady rise
in sharing, commenting and ‘liking’ with each edition. All the team here
at MAPIC, MIPIM Asia and MIPIM thank you for your interaction and
feedback, and we would like to take this opportunity to wish you a very
happy, productive and successful 2012.”
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INSIDE THIS ISSUE:
7 MAJOR TRENDS TO WATCH OUT FOR IN 2012
10 editor-in-chiefs show you their vision of the                                              P. 4
industry’s future


TREND REPORT: RETAIL RENAISSANCE
Why customers enjoy shopping for your products                                                P. 8
and services in the ‘real world’ more than ever
FIND EXCLUSIVE INTERVIEWS FROM:
• Barbara Turf, Crate & Barrel's CEO
• Richard Akers, Managing Director, Retail, Land Securities
• Kate Ancketill, GDR Creative Intelligence's CEO



FUTURE RETAIL & BONUS
1. Video: “New generation of shopping malls:                                                  P. 14
   what’s next?”
  Laure Colliex hosts a round table at MAPIC with Isaac Kalisvaart, Philippe Journo and
  Marc Blum

2. Video: Kate Ancketill’s keynote at MAPIC:
   “Science Fact: Future Retail”

3. PDF: Kate Ancketill keynote at MAPIC:
   “Science Fact: Future Retail”
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7 MAJOR TRENDS TO
WATCH OUT FOR IN 2012
We asked 10 specialist real estate editors-in-chief to define the
most important issues for the retail real estate industry in 2012.
We identified 7 major trends.




     Centros Comerciales       Commercial Real
     Nuevo modelo de retail    Estate                     Estate Gazette            Eurobuild                  Immobilien Zeitung
     en un momento de                                     Economy is the threat     The retail market in
                               New Cities, New                                                                 Der Laden um die Ecke
     cambio                                               but digital remains the   Poland has not
                               Formats, New Brands                                                             kann die Keimzelle eines
                                                          challenge                 overheated
 *   New retail model in a
     time of change
                                                                                                               Weltkonzerns sein
                                                                                                               Today’s corner shop
                                                                                                           *   could be tomorrow’s
                                                                                                               global retail giant




                               Property Investor          Property EU                                          Sites Commerciaux
     Magaza Dergisi            Europe                     Run on retail continues   Retail Property            La ville est très
     2012’ de Perakende        MAPIC 2011 flouts                                     Analyst                    importante ; la périphérie
     Dünyasi                   Cannes echos of dramatic                                                        l’est aussi
                                                                                    Wish you were here?
*    The retail world in
     2012
                               euro, economic events                                Postcards from the
                                                                                                           *   City centres are
                                                                                    abyss                      extremely important;
                                                                                                               the suburbs are too
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                                                                                                        To read
                                                                                                     full articles,
                                                  Awful year for high streets in the UK. Vacancy        please

                 1
   Adapt to the new                      “        rates in some streets are approaching 30%”
                                                  Estate Gazette



                                                      Jones Lang LaSalle predicts that by 2020, more
                                                                                                     click here




                                         “
  economic situation:                                 than 50% of all non-food retail transactions will
                                                      be digitally influenced in mature markets”
 The rise in online sales                             Property EU
 and vacancy levels on
    the high street


                                         “
                                                    A lack of funding has been steadily worsening
                                                    since the beginning of the economic crisis”
                                                    Centros Comerciales




                                                                                            2
                       Shopping Centres must see this new




 “                     distribution channel as something positive and
                       try to redirect their business strategies to use
                       the internet to their best advantage”
                       Centros Comerciales
                                                                                      Multichannel
                                                                                Multichannel: “Retailing



“
             Retail operators are keen on the development
             of new formats […] IKEA contemplates the                           strategies that combine
             opening of stand-alone stores”
             CRe
                                                                                internet marketing with
                                                                                  physical store sales”




  “
                                 The impact of digital, the single biggest
                                 medium-term influence”
                                 Estate Gazette




                                                     Customers are increasingly more demanding and, as a

                 3
                                         “
                                                     result of the economic crisis, consumer habits have
                                                     changed. It is therefore vital that business people and store
                                                     owners adapt their strategies to new consumer needs”
        Regeneration and                             Centros Comerciales
        new store formats
     Regeneration: “How to revitalise
   existing premises […] bringing them




                                         “
                                                         Retail operators are keen on the development of
    into line with modern enticements                    new formats […] IKEA contemplates the opening
   that turns the shopping experience                    of stand-alone stores”
      into a social & entertainement                     CRe
            event for the family”
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                                                                                                           To read
                                                                                                        full articles,
                                                  Shopping centres feel an acute need for




                                 “
                                                                                                           please

                4
                                                  unique and unsaturated brands that have never
                                                  been represented in the Russian market”
                                                                                                        click here
                                                  CRe



   Growing middle-class in



                                   “
                                                           (In Russia) the low 13% income tax rate and
   fast growing countries                                  buoyant economic base have generated a rich &
        and need for                                       growing middle class, around 10m-strong with
    international retailers                                rapidly growing income and consumption needs”
                                                           CRe




                                 “
                                              (In Poland) the retail sector […] is still unsaturated,
                                              both in terms of the number of projects and the
                                              presence of international retail chains
                                              Eurobuild




           The Russian retail real estate market keeps growing mainly




“          due to regional expansion. The most important trend […] is
           keener interest in the cities with half a million-plus cities.”
           CRe
                                                                                             5
                                                                               Regional development:
                                                                                     Focus on



 “
                  More and more investors are showing an
                  interest in smaller towns. […] 2012 will be the                 secondary cities
                  year of ‘convenience stores’ which have areas
                  not exceeding 5,000 sq m.”
                  Eurobuild




                                 “
                                               The love the French have for their town centres doesn’t run that
                                               deep. [...] The city centre is a sentimental, historical concept to
                                               be sure, but one that is irrevocably limited.”
                                               Sites Commerciaux
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                                                                                                      To read
                                                                                                   full articles,
                                                       A major driver […] is no longer capital




                                  “
                                                                                                      please

                      6
                                                       growth but capital preservation.”
                                                       PropertyEU                                  click here




              Focus on existing




                                   “
              customers’ needs                                That will be a year for cost-effective
                                                              generation, not grand redesigns”
                                                              Retail Property Analyst




                                 “
                                             Today, securing deals is extremely important,
                                             more than implementing new projects that, in
                                             the end, never see the light of the day”
                                             Magaza Dingasi




           2012 looks to be an outstanding year for the retail
                                                                                        7
“          sector. Substantial demand from investment funds and
           the launches of new, major projects are raising hope
           that Poland will stand out proudly on the European real
           estate market map
           Eurobuild
                                                                           New investors and new
                                                                          investment opportunities




 “
                  Institutional heavyweights including sovereign
                  wealth funds are also entering the arena and global
                  players from outside Europe are getting into the act
                  as well. […] Increasingly, (pension funds) are
                  deploying capital directly or coinvesting through
                  joint ventures with specialist operating partners
                  Property EU
MORE+ Vision n°4
                                                                                         January 2012



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every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up




                   Retail
                   Renaissance
While traditional retail is facing a raft of serious and sometimes deserved
challenges such as bland chains, the growth of e-commerce, sustainability
issues, the financial crisis, demographics and anti-consumerism, most
                                                                                  Inside
people do, and will continue to, enjoy going shopping in the real world. From     • The trend briefing
Oxford Street to Nanjing Road, rather than witnessing a decline in physical       • Interviews:
retailing, a retail renaissance is in the making:                                  Crate & Barrel
Some of the world’s sharpest retailers are defying the general doom and            Land Securities
gloom scenarios, as they realise that shopping in the real world will forever      GDR
satisfy consumers’ deep-rooted needs for human contact, for instant
gratification, for the promise of (shared) experiences and for telling stories.
Hence there is a flurry of new formats, technologies, capabilities, and
products that now are delighting retail customers around the world.
We’ve talked to four of you who shared with ‘MORE Vision’ their view in
exclusive interviews - Together with key data, useful links and must-see
video, it makes the fourth issue of MORE Vision.




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                 The trend briefing
                  Where does the trend come from ?*
                  Over the last decade physical retail has come under attack from e-commerce, with wild
                  speculation about the downfall of traditional retailing as consumers switch their
                  purchasing online. But as e-commerce matures and multi-channel retail comes to the
                  fore, the physical world and the virtual world have come together and the new
                  opportunities provided by technology have created a new dimension for stores.
                  Many retailers and retail developments are evolving rapidly to encourage consumers to
                  visit, shop, hang out, eat and drink and connect with others and the shopping
                  environment has proved that it still provides a unique role in people’s lives.
                  But this is not simply about putting a store down on a location and expecting shoppers
                  to flood in. Instead stores, high streets and malls have had to develop increasingly
                  complex strategies to ensure that they retain customers through excitement,
                  engagement, convenience and trust.




                  We’ve chosen four drivers behind RETAIL RENAISSANCE:
                  1. OFF=ON: How the benefits of shopping online can now be had off-line by
                     consumers too
                  2. RETAIL SAFARI: How experiences still rule
                  3. INSTANT STATUS FIX: How shopping in the real world delivers instant status
                     gratification in a way that online (still) can’t
                  4. CITYSUMERS: The future of consumerism is urban, and urban culture is retail
                     culture




*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights
and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
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                                                           Selected links
Opportunity 1:                                             In February 2011, US department store group JC
                                                                                                                   Selected video
                                                                                                                   DDR
                                                           Penney rolled out its findmore service to 120
OFF=ON                                                     stores across the US. In-store, 42-inch touch-
Where OFF=ON gets most interesting is that a               screens allow shoppers to view the retailer’s full
                                                           online catalogue, check availability in local stores,
whole new set of business practices and processes,         share products with friends and scan product bar
not to mention client involvement and marketing            codes to receive extra information.
techniques, have emerged online. The online world          In August 2011, shopping centre developer
is now completely accessible even when ‘offline’ and       Westfield added Google Commerce search
for retailers this means a world where not only have       functionality to its in-mall mobile app to save
consumer expectations been set by a decade of              shoppers’ time in its malls. Shoppers can search
shopping online, but one where consumers can ac-           and compare prices across retailers in their local
                                                           Westfield shopping centre, and call the local
                                                                                                                             How do you see it?
cess all the things they love about e-commerce –                                                                            Share your view and join in
                                                           retailers to check availability with one click.
convenience, the ability to hear other consumers’ ex-                                                                       the discussion!
periences, total price transparency, and virtually en-     UK grocer Tesco will roll out its free Wi-Fi service
                                                           to all of its Tesco Extra stores across the UK,
dless choice – out in the ‘real world’ too. Doing this
                                                           powered by UK broadband and mobile operator             What could you bring from the online
will increase sales and improve customer satisfaction      O2. Visitors to Tesco Extra stores will get free,              world into your store or mall
by reassuring shoppers that they are purchasing the        unlimited access to the in-store wireless Internet                             environment?
best of the best, at the cheapest possible price.          service simply by signing up with their Clubcard
                                                           number. For those without a Clubcard, the               What will convenience look like next
                                                           service will be free for 15 minutes every 24 hours.                   year, and in five years?

                                                           Singapore-based mobile operator SingTel                         Post your answer
                                                           launched its flagship store in Singapore’s                               4here
                                                           Comcentre in July 2011. The store’s exterior
                                                           glass walls have embedded, interactive digital
                                                           touchscreens in them, meaning that the store is
                                                           effectively open 24/7.
                                                           4More links on trendwatching


                                                           Selected links                                 check-in to stores to win prizes. Every
Opportunity 2:                                             In January 2011, Kraft and Intel
                                                                                                          88th person to check-in wins a free
                                                                                                          movie ticket, every 88,888th person to
Retail safari                                              partnered to launch The Next
                                                           Generation Meal Planning Solution,
                                                                                                          check-in wins a ticket for a zero gravity
                                                                                                          experience, while the 888,888th
                                                           a kiosk that provides users with
                                                                                                          person to check-in will win the grand
                                                           customised recipes and offers to help
                                                                                                          prize of a sub-orbital space trip.
                                                           them plan meals, with directions to
                                                           relevant in-store products.                    4More links on trendwatching
                                                           In July 2011, American Express launched
                                                           two social commerce initiatives for both         Selected video
                                                           consumers and businesses: Link-Like-             Shopkick
                                                           Love, an app that gives users
                                                           personalised discounts based on
                                                           Facebook ‘Likes’ and check-ins, and Go
                                                           Social a tool that enables retailers to
Shopping moments are now ubiquitous: in the real
                                                           offer customers offers integrated with
world nearly everything now has a retail                   Foursquare and Facebook.
component, which means that over the last few
                                                           Shopkick, is a location-based gaming
years, smart retailers have looked hard at what            app that dispenses ‘kickbuck’ reward
would make them unique and desirable. The ones             points to consumers for checking-in to
who have been relentlessly reinventing themselves          stores, via sensors that automatically
                                                                                                                     How do you see it?
understood that while ON=OFF brings extra                  recognise when shoppers enter the                         Share your view and join in
                                                           store. Retailers such as Macy’s and                       the discussion!
transparency and information into stores, shopping
                                                           Best Buy signed up in 2010, and in                  Does your retail environment provide
isn’t purely functional. For a large number of                                                                              anything unique to you?
                                                           June 2011 the company announced
consumers around the world, ‘going shopping’ is a
                                                           that it was extending the programme                Is there some part of your offer which
leisure activity: a way of relaxing, a source of           to 1,000 smaller, local stores in a
entertainment or a chance to meet up with friends                                                           could be customised to an individual or
                                                           partnership with Citi.
                                                                                                                         become location specific?
and share experiences. Indeed, when consumers go           7-Eleven has partnered with
shopping in person, they increasingly expect to feel       Paramount and Foursquare in a                                   Post your answer
or experience something that they can’t get online.        campaign that encourages users to                                        4here

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights
and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
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                                                                                                                    Selected video
Opportunity 3:                                                 Selected links
                                                               Cook & Book is a retail space dedicated to           Boxpark, London
Instant status fix                                             books and food in central Brussels. Divided into
                                                               nine themed areas, each has a distinctive
                                                               decorative style and dining space. Visitors can
                                                               savour tea and scones in the English room, or
                                                               enjoy a glass of wine while perusing books in
                                                               the Art or Music rooms. There is also a children’s
                                                               area and regular special events such as an
                                                               outdoor cinema programme held in July.
                                                               Japanese beauty retailer Shiseido launched its
                                                               flagship in Ginza, Tokyo in May 2011. The three-
                                                               storey store offers virtual make-up simulator
                                                               kiosks, which allow customers to try many                     How do you see it?
                                                               different products without putting them on,                  Share your view and join in
                                                               while the upper floors are devoted to                        the discussion!
                                                               experiencing the products, with a photo studio,         Does your retail offer or location
                                                               luxury consultation and treatment suites.                 make customers feel special?
Whether it’s the sensory impact of walking around a            Italian lingerie retailer Angelique Devil offers a      Interaction, mood, technology –
store, flaunting the bags, being served by caring shop         number of experiences, including ‘Sensual              worthwhile investments or costs?
personnel or just purchasing items in an environment           Fashion Set’. Customers receive a consultation
                                                                                                                            Post your answer
with other people looking on, a shopping experience            with a make-up artist and stylist, before a photo-
                                                               shoot with a professional fashion photographer.                       4here
in the real world delivers instant status gratification in a
                                                               After the session, a private screening is held and
way that online (still) can’t.                                 the customer receives a DVD and five photos.
That can also be achieved by forgoing chain-wide rol-          Gomus is a Brazil-based music branding company
louts or borderless e-commerce and would appeal to             which provides a distinctive retail environment
consumers wanting the excitement of having to physi-           using sound. Gomus embeds RFID tags in
cally go and buy something. Selling something in just          clothing, and when a customer tries on items in
one, or limited (geographical) locations will trigger en-      the changing room, they are played a song
thusiasm, PR, status stories and premium prices.               chosen to match the feel or mood of the clothing.
                                                               4More links on trendwatching


Opportunity 4:                                                 Selected links                                       Selected video
                                                               US drugstore Duane Reade opened a flagship           House of Fraser, Liverpool ONE
Citysumers                                                     store on Wall Street in July 2011. As well as a
                                                               pharmacy and onsite doctor, the store
The trend towards Retail renaissance fits directly with our    contains hair and nail salons, virtual makeover
MORE Vision 2 trend briefing, Citysumers and the               kiosks, secure cell phone charging stations for
unrelenting urbanisation and the expansion of consumer         customers while they shop, and a shoe shine
culture. Urban dwellers have more disposable income,           service (the latter's proceeds going to charity).
more leisure time and virtually limitless opportunities to     Radar Hair and Records in Seattle offers
spend it. While this is obviously true in urbanised mature     hairstyling services in addition to a selection of
                                                               vintage clothes, accessories and vinyl,
markets, the real story is in emerging markets. Consider:
                                                               meaning that consumers can browse the
Chinese retail sales in July 2011 rose 17.2% (Source:          store while they enjoy a cut or color. The                     How do you see it?
National Bureau of Statistics, August 2011); between           store-salon also hosts evening events, such as                Share your view and join in
2001 and 2010, retail sales in developing markets went         concerts, art exhibitions and fashion shows.                  the discussion!
from 35% of the global total to 42% (Source: AT Kearney,       In April 2011, to celebrate the launch of its            Should urban stores or malls
June 2011); Asian retail sales are forecast to grow from       boutique on Via Condotti in Rome, Christian          reposition their offer to maximise
$5.4 trillion in 2010 to $8.5 trillion in 2014 (Source: PWC    Dior re-issued a handful of its iconic French                            their location?
& Economist Intelligence Unit, January 2011).                  Lady Dior bags that could only be purchased
                                                               from the store. Each bag contained a special             Is it retail, leisure or services
                                                               label: ‘Christian Dior Paris – Made in Italy –                        which best provide
                                                               Rome Limited Edition’.                                                     differentiation?
                                                               L’Imprimerie is a footwear exhibition and retail             Post your answer
                                                               space in Paris which renews the goods it sells
                                                                                                                                     4here
                                                               each month. When the permanent pop-up
                                                               store offers a new collection, the boutique is
                                                               relaunched with a party and exhibition.
                                                               4More links on trendwatching


*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights
and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
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Retailer:                           How can you bring more of the online               case the whole range. When we come to Eu-
Barbara Turf, CEO, Crate &          world into your environments?                      rope we will maintain that approach, which
Barrel                              We have a plan to become one of the top            is critical to what we do. I think we’ll be in
                                    three most recognised homewares retailers          London in the next three to four years and I
                                    in the world and to achieve that we obviously      expect the first stores to be in malls.
                                    need global expansion. We spent a lot of
                                    time making sure that the website reflected        How do you make your stores specific to
                                    what we try and achieve with our stores and        their location?
                                    we ship to over 90 countries. But the stores       Firstly, location is very important, which is
                                    are integral to Crate & Barrel and always have     one of the reasons why we haven’t opened
                                    been.                                              in Europe yet. In the past year I have been to
                                                                                       London four times and taken a look at both
                                    What now makes a good shopping expe-               Westfield shopping centres, Bluewater and
                                    rience and how do you see that changing?           central London. But high rents, high opera-
                                    We spend a lot on our stores and that does         tional costs and availability have stopped us
                                    make establishing a new store expensive,           making a move. Every store we open is ar-
                                    but we have always believed that the archi-        chitecturally and merchandise specific to its
                                    tecture is an integral part of the Crate & Bar-    location. One of the challenges for us is that
                                    rel offer. That approach does lend itself more     we have to be sure any franchising partner
                                    to high street stores but we also operate          understands our ethos. We’ve been fortu-
                                    from malls and as such we need 2,000 sq m          nate to work in the Middle East with Al Tayer
       @ CrateandBarrel             as we do not want to downsize our format.          and they have really done it well and we’ll be
                                    So units have to be large enough to show-          exploring more opportunities with them.




Developer:                          How can you bring more of the online               gure space. That keeps the centres fresh and
Richard Akers, managing             world into your environments?                      dynamic for shoppers and in fact helps retai-
director, retail, Land Securities   The basis of our digital strategy is how we        lers to move out of under-performing stores,
                                    can produce a better customer experience           but of course that loss of control is tough for
                                    for our shoppers. For that we have a wide          retailers to accept, although they have adap-
                                    range of programmes, including the introduc-       ted very well in the designer outlet model.
                                    tion of free Wi-Fi into our centres, social        As an example, at our Gunwharf Quays des-
                                    media activity to promote student lock-in          igner outlet we change around 15-20% of the
                                    events, fashion events and community enga-         stores and food offer every year.
                                    gement through Facebook, Twitter, Fours-
                                    quare and so on. But we have also taken the        How do you make your stores specific to
                                    decision to go only with proven technology.        their location?
                                    We have also tied up with Amazon to test           As part of our objective to operate stand-out
                                    click-and-collect collection points and we will    shopping centres, in all of our projects we try
                                    be doing more to facilitate click-and-collect in   to make our scheme the centre of its com-
                                    our centres.                                       munity, which means using the facilities to
                                                                                       offer training, advertising jobs in the centre,
                                    What now makes a good shopping expe-               further education and helping to raise money
                                    rience and how do you see that changing?           for local charities. At Trinity Leeds, which
                                    I’ve long put forward the hypothesis that          opens next year, we have run a movie making
       @landsecurities              landlords need the sort of control that we         competition in conjunction with the cinema
                                    have with our factory outlet centres, enabling     operator Everyman, which has engaged with
                                    us to move retailers in and out and reconfi-       Leeds’ more fashionable youngsters.
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Guest:                           How can you bring more of the online              a stop. This time round big corporations rea-
                                 world into your environments?                     lise this is the way we are going to live for
Kate Ancketill, GDR
                                 The digital revolution is ongoing and it tends    some time and we just have to carry on and
                                 to throw up a lot of the most exciting things     constant innovation is part of that.
                                 we are seeing and if anything we have to
                                 hold back because not everyone wants to be        How do you make your stores specific to
                                 swept away when they are still concentrating      their location?
                                 on their physical stores. We are finding a lot    One major challenge for retailers and brands
                                 of interest in the convergence of digital and     is how to connect with new customers and
                                 retail. Most retailers are looking to combine     we continue to see a lot of work being done
                                 technology with their store estate and espe-      with pop-up stores. These temporary outlets
                                 cially mobile, because of the potential of a      are ideal, creating a ‘be there or be square’
                                 hand-held device interacting in-store. As part    event and driving a lot of dynamism into re-
                                 of that we are seeing brands versus peer          tail locations. They also allow brands and re-
                                 group reviews, and even super peer-groups,        tailers to connect with new locations. Procter
                                 where customers source views from inde-           & Gamble recently ran an e-store pop-up in
                                 pendent experts on products.                      Prague where QR codes were used for pur-
                                                                                   chasing and home delivery and more such
                                 What now makes a good shopping expe-              concepts may pop-up all over the place! It re-
                                 rience and how do you see that changing?          mains ideal as a vehicle for brands to test
                                 Despite the current downturn I think we are       concepts and reach out to consumer groups
      @gdruk                     in a different market from the last crisis, in    that they are not normally comfortable with
                                 2008, where innovation pretty much came to        and that they do not normally target.




Polarisation: Boutique           The need to create a sense of place and expe-     AMF deliberately did not start by leasing
or big centres?                  rience appears to be polarising the market yet    the shops, instead the first pre-lettings
Mark Faithfull, editor, Retail   further, with a clear trend towards boutique,     were to three of Stockholm's top restau-
Property Analyst                 targeted centres or mega schemes like West-       rants. The food and retail offers are mixed
                                 field in London or Eurofunds’ upcoming Puerto     together and Forsling adds: “The project
                                 Venecia. A joint venture between British Land     forms a key link between the surrounding
                                 and Orion Capital Managers, investor Ian Stan-    business district and the main retail areas
                                 ford believes that future developments will       of Stockholm, describing the mall as "Fifth
                                                                                                  ”
                                 have to mix “lots of activities, which means      Avenue meets the Meatpacking District".
                                 people will say ‘let’s go to Puerto Venecia and   As part of the offer there will be two circa
                                 decide what we do once we get there’.   ”         250 sq m open-air gardens at first floor
                                 But he adds: “It’s not just about being big,      level, interactive artworks and rentable
                                 you need lots of different leisure and retail     tree-house meeting rooms.
                                 and it needs to be in the right environment,      The approach at MOOD echoes that of
                                 not simply inside a big box.  ”                   Land Securities’ One New Change, adja-
                                 Swedish institutional investor AMF Fasti-         cent to St Paul’s Cathedral in London. With
                                 gheter has put the emphasis on place-ma-          an extensive, upper end restaurant offer it
                                 king and sustainability for its inner city        has been designed specifically to meet the
                                 MOOD development in Stockholm. Head of            needs of office workers during the week,
                                 retail Karolin Forsling believes the secret is    while still appealing to tourists at the week-
                                 that the scheme is less a mall, “more a           end in an area that traditionally did not offer
                                 place – a city within the city.”                  weekend retailing.
      @markfaithfull1
Vision by                                        Follow us on


every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up




FUTURE RETAIL & BONUS
WHAT’S NEXT FOR THE RETAIL REAL ESTATE INDUSTRY
2012 as seen by retail real estate specialists at MAPIC 2011




MAPIC 2011 – New generation                         MAPIC 2011 – “Science Fact:
of shopping malls: what’s next?                     Future Retail”
                                                    In five years the retail landscape will look vastly dif-
MAPIC 2011 speaker Laure Colliex hosts a round      ferent. Our futurist keynote speaker Kate Ancketill
table discussion on the Darwinian evolution of      discusses "science fact" at MAPIC 2011
modern retail spaces with Marc BLUM,
Partner/Regional Director Europe/MENA, The          MAPIC 2011 keynote speaker Kate Ancketill dis-
Jerde Partnership, LCC (USA), Philippe JOURNO,      cusses concepts you haven’t heard of, but will soon:
Founder & CEO, Compagnie de Phalsbourg, and         longevity stores, reputation clean-up stations, gene-
Isaac KALISVAART, CEO, MAB Development              tic testing spas… this isn’t science fiction, it’s less
(The Netherlands)                                   than 5 years away. Ancketill unveils the high street
                                                    of the mid-term future, based on technology
                                                    changes and anticipated consumer demands.


                                                                                     MAPIC 2011 –
                                                                                     Science Fact:
                                                                                     Future Retail
                                                                                     Discover this PDF used
                                                                                     by Kate Ancketill, GDR
                                                                                     CEO, during her
                                                                                     keynote at MAPIC 2011
Today’s intelligence
                                                                                                                           for tomorrow’s business
                                                                                                                           is a new initiative by MAPIC, The international market for retail real estate
                                                                                                                           14 – 16 November 2012, Palais des Festivals, Cannes, France.


                                                                                                                                                 Vision
                                                                                                                                                                                                                       mipimworldblog
                                                                                                                           Every two months, MORE+ Vision introduces a new
                                                                                                                           trend that is influencing retail property strategy.

                                                                                                                           In the next edition of MORE+ Vision we will be examining:
                                                                                                                           • The convergence of transport hubs and retail centres and
                                                                                                                             how the two are increasingly working together
                                                                                                                           • The unique opportunities and challenges of retailing in a
MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2012




                                                                                                                             high footfall, transit location

                                                                                                                           For regular updates, questions, comments …
                                                                                                                                        Join us on

                                                                                                                                                     Nov.                                             Mar.             New on the MIPIMWorld blog: weekly updates on the topics and
                                                                                                                                                     2011                                             2012             trends explored in MORE Vision.
                                                                                                                           Previous MORE+ Vision:            Next MORE+ Vision:
                                                                                                                           Culture, leisure:                 transport hubs, transit                                   Would you like to contribute to the MIPIMWorld blog - with
                                                                                                                           traffic generator?                location                                                  an article, a podcast or a video? Or maybe you have
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                                                                                                                                                                                                                       views and ideas!




                                                                                                                            Contacts                                                               Credits
                                                                                                                                                                                                   Contributors: Mark Faithfull • Joanne Archibald • Jean-Marc André
                                                                                                                            Any questions on MORE+ Vision,                                         Acknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participation
                                                                                                                            please contact Editor: jean-marc.andre@reedmidem.com                   Design: Frédéric Beauseigneur
                                                                                                                            Want to advertise in MORE+ Vision,                                     Sources: “trendwatching.com, a London-based, independent trend firm, scans the globe for the most
                                                                                                                                                                                                   promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Brie-
                                                                                                                            please contact iris.terre@reedmidem.com                                fings get sent to more than 160,000 business professionals in 180+ countries”; MAPIC News; GDR

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MORE Vision by MAPIC: 4 - Retail renaissance

  • 1. MORE+ Vision n°4 January 2012 Vision by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up What’s in store for 2012 NEW YEAR What 2012 EXCLUSIVE has in store EDITION for the retail real estate industry
  • 2. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up WELCOME TO AN EXCLUSIVE EDITION OF MORE VISION BY MAPIC WHAT’S IN STORE FOR 2012 Dear readers, users, viewers, of More Vision “ We are extremely happy to introduce our very special January edition of MORE Vision, featuring more news, more exclusive content, more videos, and more in-depth analysis and commentary from our invited guests, special contributors and our research and web searches. This new year edition is also the perfect occasion for us to thank you all for your interest in the bi-monthly More Vision, which has seen a steady rise in sharing, commenting and ‘liking’ with each edition. All the team here at MAPIC, MIPIM Asia and MIPIM thank you for your interaction and feedback, and we would like to take this opportunity to wish you a very happy, productive and successful 2012.”
  • 3. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up INSIDE THIS ISSUE: 7 MAJOR TRENDS TO WATCH OUT FOR IN 2012 10 editor-in-chiefs show you their vision of the P. 4 industry’s future TREND REPORT: RETAIL RENAISSANCE Why customers enjoy shopping for your products P. 8 and services in the ‘real world’ more than ever FIND EXCLUSIVE INTERVIEWS FROM: • Barbara Turf, Crate & Barrel's CEO • Richard Akers, Managing Director, Retail, Land Securities • Kate Ancketill, GDR Creative Intelligence's CEO FUTURE RETAIL & BONUS 1. Video: “New generation of shopping malls: P. 14 what’s next?” Laure Colliex hosts a round table at MAPIC with Isaac Kalisvaart, Philippe Journo and Marc Blum 2. Video: Kate Ancketill’s keynote at MAPIC: “Science Fact: Future Retail” 3. PDF: Kate Ancketill keynote at MAPIC: “Science Fact: Future Retail”
  • 4. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up 7 MAJOR TRENDS TO WATCH OUT FOR IN 2012 We asked 10 specialist real estate editors-in-chief to define the most important issues for the retail real estate industry in 2012. We identified 7 major trends. Centros Comerciales Commercial Real Nuevo modelo de retail Estate Estate Gazette Eurobuild Immobilien Zeitung en un momento de Economy is the threat The retail market in New Cities, New Der Laden um die Ecke cambio but digital remains the Poland has not Formats, New Brands kann die Keimzelle eines challenge overheated * New retail model in a time of change Weltkonzerns sein Today’s corner shop * could be tomorrow’s global retail giant Property Investor Property EU Sites Commerciaux Magaza Dergisi Europe Run on retail continues Retail Property La ville est très 2012’ de Perakende MAPIC 2011 flouts Analyst importante ; la périphérie Dünyasi Cannes echos of dramatic l’est aussi Wish you were here? * The retail world in 2012 euro, economic events Postcards from the * City centres are abyss extremely important; the suburbs are too
  • 5. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up To read full articles, Awful year for high streets in the UK. Vacancy please 1 Adapt to the new “ rates in some streets are approaching 30%” Estate Gazette Jones Lang LaSalle predicts that by 2020, more click here “ economic situation: than 50% of all non-food retail transactions will be digitally influenced in mature markets” The rise in online sales Property EU and vacancy levels on the high street “ A lack of funding has been steadily worsening since the beginning of the economic crisis” Centros Comerciales 2 Shopping Centres must see this new “ distribution channel as something positive and try to redirect their business strategies to use the internet to their best advantage” Centros Comerciales Multichannel Multichannel: “Retailing “ Retail operators are keen on the development of new formats […] IKEA contemplates the strategies that combine opening of stand-alone stores” CRe internet marketing with physical store sales” “ The impact of digital, the single biggest medium-term influence” Estate Gazette Customers are increasingly more demanding and, as a 3 “ result of the economic crisis, consumer habits have changed. It is therefore vital that business people and store owners adapt their strategies to new consumer needs” Regeneration and Centros Comerciales new store formats Regeneration: “How to revitalise existing premises […] bringing them “ Retail operators are keen on the development of into line with modern enticements new formats […] IKEA contemplates the opening that turns the shopping experience of stand-alone stores” into a social & entertainement CRe event for the family”
  • 6. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up To read full articles, Shopping centres feel an acute need for “ please 4 unique and unsaturated brands that have never been represented in the Russian market” click here CRe Growing middle-class in “ (In Russia) the low 13% income tax rate and fast growing countries buoyant economic base have generated a rich & and need for growing middle class, around 10m-strong with international retailers rapidly growing income and consumption needs” CRe “ (In Poland) the retail sector […] is still unsaturated, both in terms of the number of projects and the presence of international retail chains Eurobuild The Russian retail real estate market keeps growing mainly “ due to regional expansion. The most important trend […] is keener interest in the cities with half a million-plus cities.” CRe 5 Regional development: Focus on “ More and more investors are showing an interest in smaller towns. […] 2012 will be the secondary cities year of ‘convenience stores’ which have areas not exceeding 5,000 sq m.” Eurobuild “ The love the French have for their town centres doesn’t run that deep. [...] The city centre is a sentimental, historical concept to be sure, but one that is irrevocably limited.” Sites Commerciaux
  • 7. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up To read full articles, A major driver […] is no longer capital “ please 6 growth but capital preservation.” PropertyEU click here Focus on existing “ customers’ needs That will be a year for cost-effective generation, not grand redesigns” Retail Property Analyst “ Today, securing deals is extremely important, more than implementing new projects that, in the end, never see the light of the day” Magaza Dingasi 2012 looks to be an outstanding year for the retail 7 “ sector. Substantial demand from investment funds and the launches of new, major projects are raising hope that Poland will stand out proudly on the European real estate market map Eurobuild New investors and new investment opportunities “ Institutional heavyweights including sovereign wealth funds are also entering the arena and global players from outside Europe are getting into the act as well. […] Increasingly, (pension funds) are deploying capital directly or coinvesting through joint ventures with specialist operating partners Property EU
  • 8. MORE+ Vision n°4 January 2012 Vision by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Retail Renaissance While traditional retail is facing a raft of serious and sometimes deserved challenges such as bland chains, the growth of e-commerce, sustainability issues, the financial crisis, demographics and anti-consumerism, most Inside people do, and will continue to, enjoy going shopping in the real world. From • The trend briefing Oxford Street to Nanjing Road, rather than witnessing a decline in physical • Interviews: retailing, a retail renaissance is in the making: Crate & Barrel Some of the world’s sharpest retailers are defying the general doom and Land Securities gloom scenarios, as they realise that shopping in the real world will forever GDR satisfy consumers’ deep-rooted needs for human contact, for instant gratification, for the promise of (shared) experiences and for telling stories. Hence there is a flurry of new formats, technologies, capabilities, and products that now are delighting retail customers around the world. We’ve talked to four of you who shared with ‘MORE Vision’ their view in exclusive interviews - Together with key data, useful links and must-see video, it makes the fourth issue of MORE Vision. Follow us on
  • 9. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up The trend briefing Where does the trend come from ?* Over the last decade physical retail has come under attack from e-commerce, with wild speculation about the downfall of traditional retailing as consumers switch their purchasing online. But as e-commerce matures and multi-channel retail comes to the fore, the physical world and the virtual world have come together and the new opportunities provided by technology have created a new dimension for stores. Many retailers and retail developments are evolving rapidly to encourage consumers to visit, shop, hang out, eat and drink and connect with others and the shopping environment has proved that it still provides a unique role in people’s lives. But this is not simply about putting a store down on a location and expecting shoppers to flood in. Instead stores, high streets and malls have had to develop increasingly complex strategies to ensure that they retain customers through excitement, engagement, convenience and trust. We’ve chosen four drivers behind RETAIL RENAISSANCE: 1. OFF=ON: How the benefits of shopping online can now be had off-line by consumers too 2. RETAIL SAFARI: How experiences still rule 3. INSTANT STATUS FIX: How shopping in the real world delivers instant status gratification in a way that online (still) can’t 4. CITYSUMERS: The future of consumerism is urban, and urban culture is retail culture *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
  • 10. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Selected links Opportunity 1: In February 2011, US department store group JC Selected video DDR Penney rolled out its findmore service to 120 OFF=ON stores across the US. In-store, 42-inch touch- Where OFF=ON gets most interesting is that a screens allow shoppers to view the retailer’s full online catalogue, check availability in local stores, whole new set of business practices and processes, share products with friends and scan product bar not to mention client involvement and marketing codes to receive extra information. techniques, have emerged online. The online world In August 2011, shopping centre developer is now completely accessible even when ‘offline’ and Westfield added Google Commerce search for retailers this means a world where not only have functionality to its in-mall mobile app to save consumer expectations been set by a decade of shoppers’ time in its malls. Shoppers can search shopping online, but one where consumers can ac- and compare prices across retailers in their local Westfield shopping centre, and call the local How do you see it? cess all the things they love about e-commerce – Share your view and join in retailers to check availability with one click. convenience, the ability to hear other consumers’ ex- the discussion! periences, total price transparency, and virtually en- UK grocer Tesco will roll out its free Wi-Fi service to all of its Tesco Extra stores across the UK, dless choice – out in the ‘real world’ too. Doing this powered by UK broadband and mobile operator What could you bring from the online will increase sales and improve customer satisfaction O2. Visitors to Tesco Extra stores will get free, world into your store or mall by reassuring shoppers that they are purchasing the unlimited access to the in-store wireless Internet environment? best of the best, at the cheapest possible price. service simply by signing up with their Clubcard number. For those without a Clubcard, the What will convenience look like next service will be free for 15 minutes every 24 hours. year, and in five years? Singapore-based mobile operator SingTel Post your answer launched its flagship store in Singapore’s 4here Comcentre in July 2011. The store’s exterior glass walls have embedded, interactive digital touchscreens in them, meaning that the store is effectively open 24/7. 4More links on trendwatching Selected links check-in to stores to win prizes. Every Opportunity 2: In January 2011, Kraft and Intel 88th person to check-in wins a free movie ticket, every 88,888th person to Retail safari partnered to launch The Next Generation Meal Planning Solution, check-in wins a ticket for a zero gravity experience, while the 888,888th a kiosk that provides users with person to check-in will win the grand customised recipes and offers to help prize of a sub-orbital space trip. them plan meals, with directions to relevant in-store products. 4More links on trendwatching In July 2011, American Express launched two social commerce initiatives for both Selected video consumers and businesses: Link-Like- Shopkick Love, an app that gives users personalised discounts based on Facebook ‘Likes’ and check-ins, and Go Social a tool that enables retailers to Shopping moments are now ubiquitous: in the real offer customers offers integrated with world nearly everything now has a retail Foursquare and Facebook. component, which means that over the last few Shopkick, is a location-based gaming years, smart retailers have looked hard at what app that dispenses ‘kickbuck’ reward would make them unique and desirable. The ones points to consumers for checking-in to who have been relentlessly reinventing themselves stores, via sensors that automatically How do you see it? understood that while ON=OFF brings extra recognise when shoppers enter the Share your view and join in store. Retailers such as Macy’s and the discussion! transparency and information into stores, shopping Best Buy signed up in 2010, and in Does your retail environment provide isn’t purely functional. For a large number of anything unique to you? June 2011 the company announced consumers around the world, ‘going shopping’ is a that it was extending the programme Is there some part of your offer which leisure activity: a way of relaxing, a source of to 1,000 smaller, local stores in a entertainment or a chance to meet up with friends could be customised to an individual or partnership with Citi. become location specific? and share experiences. Indeed, when consumers go 7-Eleven has partnered with shopping in person, they increasingly expect to feel Paramount and Foursquare in a Post your answer or experience something that they can’t get online. campaign that encourages users to 4here *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
  • 11. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Selected video Opportunity 3: Selected links Cook & Book is a retail space dedicated to Boxpark, London Instant status fix books and food in central Brussels. Divided into nine themed areas, each has a distinctive decorative style and dining space. Visitors can savour tea and scones in the English room, or enjoy a glass of wine while perusing books in the Art or Music rooms. There is also a children’s area and regular special events such as an outdoor cinema programme held in July. Japanese beauty retailer Shiseido launched its flagship in Ginza, Tokyo in May 2011. The three- storey store offers virtual make-up simulator kiosks, which allow customers to try many How do you see it? different products without putting them on, Share your view and join in while the upper floors are devoted to the discussion! experiencing the products, with a photo studio, Does your retail offer or location luxury consultation and treatment suites. make customers feel special? Whether it’s the sensory impact of walking around a Italian lingerie retailer Angelique Devil offers a Interaction, mood, technology – store, flaunting the bags, being served by caring shop number of experiences, including ‘Sensual worthwhile investments or costs? personnel or just purchasing items in an environment Fashion Set’. Customers receive a consultation Post your answer with other people looking on, a shopping experience with a make-up artist and stylist, before a photo- shoot with a professional fashion photographer. 4here in the real world delivers instant status gratification in a After the session, a private screening is held and way that online (still) can’t. the customer receives a DVD and five photos. That can also be achieved by forgoing chain-wide rol- Gomus is a Brazil-based music branding company louts or borderless e-commerce and would appeal to which provides a distinctive retail environment consumers wanting the excitement of having to physi- using sound. Gomus embeds RFID tags in cally go and buy something. Selling something in just clothing, and when a customer tries on items in one, or limited (geographical) locations will trigger en- the changing room, they are played a song thusiasm, PR, status stories and premium prices. chosen to match the feel or mood of the clothing. 4More links on trendwatching Opportunity 4: Selected links Selected video US drugstore Duane Reade opened a flagship House of Fraser, Liverpool ONE Citysumers store on Wall Street in July 2011. As well as a pharmacy and onsite doctor, the store The trend towards Retail renaissance fits directly with our contains hair and nail salons, virtual makeover MORE Vision 2 trend briefing, Citysumers and the kiosks, secure cell phone charging stations for unrelenting urbanisation and the expansion of consumer customers while they shop, and a shoe shine culture. Urban dwellers have more disposable income, service (the latter's proceeds going to charity). more leisure time and virtually limitless opportunities to Radar Hair and Records in Seattle offers spend it. While this is obviously true in urbanised mature hairstyling services in addition to a selection of vintage clothes, accessories and vinyl, markets, the real story is in emerging markets. Consider: meaning that consumers can browse the Chinese retail sales in July 2011 rose 17.2% (Source: store while they enjoy a cut or color. The How do you see it? National Bureau of Statistics, August 2011); between store-salon also hosts evening events, such as Share your view and join in 2001 and 2010, retail sales in developing markets went concerts, art exhibitions and fashion shows. the discussion! from 35% of the global total to 42% (Source: AT Kearney, In April 2011, to celebrate the launch of its Should urban stores or malls June 2011); Asian retail sales are forecast to grow from boutique on Via Condotti in Rome, Christian reposition their offer to maximise $5.4 trillion in 2010 to $8.5 trillion in 2014 (Source: PWC Dior re-issued a handful of its iconic French their location? & Economist Intelligence Unit, January 2011). Lady Dior bags that could only be purchased from the store. Each bag contained a special Is it retail, leisure or services label: ‘Christian Dior Paris – Made in Italy – which best provide Rome Limited Edition’. differentiation? L’Imprimerie is a footwear exhibition and retail Post your answer space in Paris which renews the goods it sells 4here each month. When the permanent pop-up store offers a new collection, the boutique is relaunched with a party and exhibition. 4More links on trendwatching *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
  • 12. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Retailer: How can you bring more of the online case the whole range. When we come to Eu- Barbara Turf, CEO, Crate & world into your environments? rope we will maintain that approach, which Barrel We have a plan to become one of the top is critical to what we do. I think we’ll be in three most recognised homewares retailers London in the next three to four years and I in the world and to achieve that we obviously expect the first stores to be in malls. need global expansion. We spent a lot of time making sure that the website reflected How do you make your stores specific to what we try and achieve with our stores and their location? we ship to over 90 countries. But the stores Firstly, location is very important, which is are integral to Crate & Barrel and always have one of the reasons why we haven’t opened been. in Europe yet. In the past year I have been to London four times and taken a look at both What now makes a good shopping expe- Westfield shopping centres, Bluewater and rience and how do you see that changing? central London. But high rents, high opera- We spend a lot on our stores and that does tional costs and availability have stopped us make establishing a new store expensive, making a move. Every store we open is ar- but we have always believed that the archi- chitecturally and merchandise specific to its tecture is an integral part of the Crate & Bar- location. One of the challenges for us is that rel offer. That approach does lend itself more we have to be sure any franchising partner to high street stores but we also operate understands our ethos. We’ve been fortu- from malls and as such we need 2,000 sq m nate to work in the Middle East with Al Tayer @ CrateandBarrel as we do not want to downsize our format. and they have really done it well and we’ll be So units have to be large enough to show- exploring more opportunities with them. Developer: How can you bring more of the online gure space. That keeps the centres fresh and Richard Akers, managing world into your environments? dynamic for shoppers and in fact helps retai- director, retail, Land Securities The basis of our digital strategy is how we lers to move out of under-performing stores, can produce a better customer experience but of course that loss of control is tough for for our shoppers. For that we have a wide retailers to accept, although they have adap- range of programmes, including the introduc- ted very well in the designer outlet model. tion of free Wi-Fi into our centres, social As an example, at our Gunwharf Quays des- media activity to promote student lock-in igner outlet we change around 15-20% of the events, fashion events and community enga- stores and food offer every year. gement through Facebook, Twitter, Fours- quare and so on. But we have also taken the How do you make your stores specific to decision to go only with proven technology. their location? We have also tied up with Amazon to test As part of our objective to operate stand-out click-and-collect collection points and we will shopping centres, in all of our projects we try be doing more to facilitate click-and-collect in to make our scheme the centre of its com- our centres. munity, which means using the facilities to offer training, advertising jobs in the centre, What now makes a good shopping expe- further education and helping to raise money rience and how do you see that changing? for local charities. At Trinity Leeds, which I’ve long put forward the hypothesis that opens next year, we have run a movie making @landsecurities landlords need the sort of control that we competition in conjunction with the cinema have with our factory outlet centres, enabling operator Everyman, which has engaged with us to move retailers in and out and reconfi- Leeds’ more fashionable youngsters.
  • 13. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Guest: How can you bring more of the online a stop. This time round big corporations rea- world into your environments? lise this is the way we are going to live for Kate Ancketill, GDR The digital revolution is ongoing and it tends some time and we just have to carry on and to throw up a lot of the most exciting things constant innovation is part of that. we are seeing and if anything we have to hold back because not everyone wants to be How do you make your stores specific to swept away when they are still concentrating their location? on their physical stores. We are finding a lot One major challenge for retailers and brands of interest in the convergence of digital and is how to connect with new customers and retail. Most retailers are looking to combine we continue to see a lot of work being done technology with their store estate and espe- with pop-up stores. These temporary outlets cially mobile, because of the potential of a are ideal, creating a ‘be there or be square’ hand-held device interacting in-store. As part event and driving a lot of dynamism into re- of that we are seeing brands versus peer tail locations. They also allow brands and re- group reviews, and even super peer-groups, tailers to connect with new locations. Procter where customers source views from inde- & Gamble recently ran an e-store pop-up in pendent experts on products. Prague where QR codes were used for pur- chasing and home delivery and more such What now makes a good shopping expe- concepts may pop-up all over the place! It re- rience and how do you see that changing? mains ideal as a vehicle for brands to test Despite the current downturn I think we are concepts and reach out to consumer groups @gdruk in a different market from the last crisis, in that they are not normally comfortable with 2008, where innovation pretty much came to and that they do not normally target. Polarisation: Boutique The need to create a sense of place and expe- AMF deliberately did not start by leasing or big centres? rience appears to be polarising the market yet the shops, instead the first pre-lettings Mark Faithfull, editor, Retail further, with a clear trend towards boutique, were to three of Stockholm's top restau- Property Analyst targeted centres or mega schemes like West- rants. The food and retail offers are mixed field in London or Eurofunds’ upcoming Puerto together and Forsling adds: “The project Venecia. A joint venture between British Land forms a key link between the surrounding and Orion Capital Managers, investor Ian Stan- business district and the main retail areas ford believes that future developments will of Stockholm, describing the mall as "Fifth ” have to mix “lots of activities, which means Avenue meets the Meatpacking District". people will say ‘let’s go to Puerto Venecia and As part of the offer there will be two circa decide what we do once we get there’. ” 250 sq m open-air gardens at first floor But he adds: “It’s not just about being big, level, interactive artworks and rentable you need lots of different leisure and retail tree-house meeting rooms. and it needs to be in the right environment, The approach at MOOD echoes that of not simply inside a big box. ” Land Securities’ One New Change, adja- Swedish institutional investor AMF Fasti- cent to St Paul’s Cathedral in London. With gheter has put the emphasis on place-ma- an extensive, upper end restaurant offer it king and sustainability for its inner city has been designed specifically to meet the MOOD development in Stockholm. Head of needs of office workers during the week, retail Karolin Forsling believes the secret is while still appealing to tourists at the week- that the scheme is less a mall, “more a end in an area that traditionally did not offer place – a city within the city.” weekend retailing. @markfaithfull1
  • 14. Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up FUTURE RETAIL & BONUS WHAT’S NEXT FOR THE RETAIL REAL ESTATE INDUSTRY 2012 as seen by retail real estate specialists at MAPIC 2011 MAPIC 2011 – New generation MAPIC 2011 – “Science Fact: of shopping malls: what’s next? Future Retail” In five years the retail landscape will look vastly dif- MAPIC 2011 speaker Laure Colliex hosts a round ferent. Our futurist keynote speaker Kate Ancketill table discussion on the Darwinian evolution of discusses "science fact" at MAPIC 2011 modern retail spaces with Marc BLUM, Partner/Regional Director Europe/MENA, The MAPIC 2011 keynote speaker Kate Ancketill dis- Jerde Partnership, LCC (USA), Philippe JOURNO, cusses concepts you haven’t heard of, but will soon: Founder & CEO, Compagnie de Phalsbourg, and longevity stores, reputation clean-up stations, gene- Isaac KALISVAART, CEO, MAB Development tic testing spas… this isn’t science fiction, it’s less (The Netherlands) than 5 years away. Ancketill unveils the high street of the mid-term future, based on technology changes and anticipated consumer demands. MAPIC 2011 – Science Fact: Future Retail Discover this PDF used by Kate Ancketill, GDR CEO, during her keynote at MAPIC 2011
  • 15. Today’s intelligence for tomorrow’s business is a new initiative by MAPIC, The international market for retail real estate 14 – 16 November 2012, Palais des Festivals, Cannes, France. Vision mipimworldblog Every two months, MORE+ Vision introduces a new trend that is influencing retail property strategy. In the next edition of MORE+ Vision we will be examining: • The convergence of transport hubs and retail centres and how the two are increasingly working together • The unique opportunities and challenges of retailing in a MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2012 high footfall, transit location For regular updates, questions, comments … Join us on Nov. Mar. New on the MIPIMWorld blog: weekly updates on the topics and 2011 2012 trends explored in MORE Vision. Previous MORE+ Vision: Next MORE+ Vision: Culture, leisure: transport hubs, transit Would you like to contribute to the MIPIMWorld blog - with traffic generator? location an article, a podcast or a video? Or maybe you have suggestions for themes you'd like us to discuss? Contact us Register here via Twitter, LinkedIn, Facebook or by email to share your Read it here if you wish to be notified views and ideas! Contacts Credits Contributors: Mark Faithfull • Joanne Archibald • Jean-Marc André Any questions on MORE+ Vision, Acknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participation please contact Editor: jean-marc.andre@reedmidem.com Design: Frédéric Beauseigneur Want to advertise in MORE+ Vision, Sources: “trendwatching.com, a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Brie- please contact iris.terre@reedmidem.com fings get sent to more than 160,000 business professionals in 180+ countries”; MAPIC News; GDR