2015 Trends and Predictions
As the year comes to a close, the Innesco team is excitedly looking forward to what 2015 has to offer! It’s vital for us to recognise and monitor trends. Here is our list of the most intriguing forecasted trends to look out for in 2015. We have included various predictions from retail experiences and technology advances to housing and office real estate.More
Does “Black Friday” Have Competition in the UK?
I am not sure if you agree, but the buzz terms and jargon now floating around the media in relation to peak Christmas sales periods is becoming ever so slightly tedious. Having read the headlines this morning regarding Christmas Day online sales forecasts to go through the roof, I thought I’d just shed a little light on the matter for those who don’t know their Manic from Panic days…
Firstly, Black Friday marks the official start of the sales period taking place on last Friday in November and the day after Thanksgiving in the USA. This has been creeping back in the calendar and industry experts believe that by 2020 Black Friday will be in October!
Cyber Monday is the first Monday after Black Friday in the USA, it was created as a marketing tool to push online purchasing in the run up to the Festive period.
Manic Monday is the second Monday in December in the build up to Christmas Day.
Panic Saturday is the last Saturday before Christmas Day.
Christmas Day & Boxing Day are self-explanatory in their definition. However, now more than ever, these two days play a key role in online sales throughout the Festive period making up almost 30% of all Christmas sales from online purchasing.
Less than five years ago, online shopping at the Christmas lunch table would not have been considered and, if it was, it would have most certainly been seen as taboo behaviour. But thanks to the adoption of tablets and smartphones, it seems like nearly half of the family members around at the dinner table (from toddler to silver surfer), will be jumping online this Christmas Day.
Reports from Amazon and the IMRG (the online retail association) both agree that this Christmas will see the record-breaking levels of shopping with sales to peak at 12.26pm, just when the sprouts are brought to the boil.
Growth in M-commerce
In 2013, IMRG stated that M-commerce (mobile commerce) was largely responsible for driving sales growth, “Sales via smartphones and tablets grew by 138% in 2013, compared to the previous year. Some 27% of all online sales, worth £3bn, were placed on a mobile device. Of those mobile sales, 82% were from tablet computers. The figure was up by 131% on the same time last year. Meanwhile, sales from a smartphone rose by 186%”.
According to Amazon, Christmas Day sales have increased fivefold over the last five years and IMRG forecasts online sales on the 25th December will increase 36 per cent on 2013 figures. The reason for the surge in Christmas Day shopping online starts with the wider adoption of mobile devices coupled with giving the gift of a tablet or smartphone.
With Society’s desire for instant gratification now rife throughout almost all generations, this Christmas, new recipients of online device gifts and seasoned users alike will be using their devices to immediately surf/shop online for steadily released bargains.
It’s unclear what products will be the biggest sellers, but here at Innesco, we predict the downloading of games, ebooks and films for an immediate online fix, in addition to the trawling for big ticket items with the best offers as online retailers launch the biggest discounts yet in winter sales campaigns. It will be interesting to see if there is a national dropout of connectivity!
Sales estimates and figures can be confusing and the actual net sales need to be cross-referenced with returns to get the most transparent picture. It should be noted that logistically, online shopping is causing some issues as shoppers buy online and return items to stores.
According to a One Poll survey, 42 per cent of UK consumers are shopping online this year, which equates to 21.2million people with 17 per cent (3.6million) returning gifts before Christmas – a returns value estimated value of goods of £813.4million.
This poses the greatest challenge to retailers who don’t take the till sale in the physical store yet have to provide resource for a busy returns department assisting customers who bought online but return to store.
All this digital and mobile device activity puts even more pressure on retailers to get their omni-channel marketing campaigns in order. There is also the requirement for shopping centres to ensure they are integral in the “shoppers’ journey” whether it be online or in the physical centre. For many consumers, they expect free wifi, seamless click-n-collect operations with leading retailers, and shopping centres have a part to play in this.
The shoppers’ journey of browsing the product starts at home but carries on through smartphones in the shoppers’ pockets and mobile devices on the bus or train before arriving at a store to experience the touchy-feely nature of the item and check the product out.
The average shopper doesn’t realise it, but the pace at which retail marketing techniques and tactics are evolving is frightening, as new technology continues to outpace most industries. The retail sector must strive to keep up with the tech evolution curve to ensure we don’t see future tech challenges that compound existing issues of business rates and vacancies.
With Black Friday resulting in £810 million in sales, it’s hard to imagine that there are any products left to sell, but the various and, frankly alarmingly named, sales that followed have proved we like a good sale and we like them often.
Panic Saturday, the Saturday before Christmas resulted in higher sales, £1.2billion, than Black Friday’s staggering figures. However, it is easy to see why so much purchasing occurs – shopping is easier than ever thanks to online. Black Friday was originally about getting up before the sun to arrive at the bricks-and-mortar retailer, cup of coffee in hand, to scout out the best deals. However, while news footage assured us that countless customers’ flocked to physical stores, more of us are utilising online and mobile shopping sites from our computers, smartphones and tablets. Before you know it, that Christmas bonus has gone to Black Friday, Cyber Monday, Manic Monday, Panic Saturday, Christmas and Boxing Day.
As the whirlwind of adjective-laden sales leaves our wallets feeling a little (or a lot) lighter, it seems obvious that Black Friday has some serious contenders.
Euan Blake, Account Director
Last minute Christmas shopping
With Christmas shops in Selfridges and Harrods opened since July, it’s hard to believe that some of us have not completed our Christmas shopping list by now.
Yet, we have all experienced the dread that pours over us a handful of days before the big event as we realize we’ve forgotten the side dish Granny insists on having, sellotape for wrapping, or as we eagerly await the delivery service’s knock for the gift you ordered just minutes too late on December 19.
I’m confident I’m not the only one who has rushed to the shops for those forgotten last minute essentials because the Saturday before Christmas is now known as ‘Panic Saturday’. This year, UK shoppers are estimated to spend £1.2 billion on this single, frenzied day. On the same day in France, customers spent 2m€ every minute.
Helping to make our lives easier, and hopefully spread some Christmas cheer, retailers have prepared for last minute shopping by pulling out all the stops to make sure customers are getting their perfect gifts delivered on time for December 25th.
Amazon in London is offering same-day delivery on Christmas Eve for orders placed before 10am within the M25. Even better, in New York, Amazon is rolling-out a one-hour delivery service.
Asos isoffering next day delivery on any product ordered before 23:59 on December 23.
The click-and-collect service at Argos ensures that customers can order by 5pm on Christmas Eve and collect the same day in one of 700 Argos stores around the UK.
In Paris, the majority of Parisian department stores are ‘exceptionally’ open every Sunday in December before Christmas to make sure every Christmas need is filled.
Selfridges Oxford Street is providing an exclusive experience for customers that spend over £350 on or before Christmas Eve with a free ride in one-of-five new Selfridges-branded Mini Coopers.
So, latecomers, beware! Retailers have assured there is absolutely no excuse for foregoing that last minute gift or Christmas necessity. However, let’s assume that everyone has finished the Christmas shopping chaos and is simply treating him or herself by now anyway. Don’t forget, with the shopping completed and wrapping done, it’s time to celebrate with loved ones… that is, of course, if the right gift is nicely tucked up under your tree.
Christmas around the world
As Christmas is only a few sleeps away, we are all wrapped up (literally and figuratively) in the holiday spirit! Twinkling lights, Christmas decorations, mince pies, mulled cider, and jolly tunes surround us throughout the UK. Europe and America are just as immersed in the merriment with their own traditions from enjoying Panettone in Italy, decorating the tree on Christmas Eve in Germany, placing shoes by the fireplace for Pere Noel in France, or switching on the twinkling lights on houses in America. Although Christmas in Russia is celebrated on the 7th of January, we can’t help but wonder how their festive season will withstand their economic crisis. In mid-November, FOM pollster reported
that 45 per cent of Russians say the weak rouble has significantly impacted their lives. More people are affected as the survey was conducted when the rouble was 32 to the dollar, but it currently stands at 52 to the dollar. Disposable incomes, which are utilized during the holiday season, fell by 9.1% in October. The Wall Street Journal reports that holiday booking by Russian citizens are down by more than half as people are forced to cancel travel plans due to the weak rouble. Alas, there is positive news! In true Christmas spirit, there is hope for Russia in respect to the falling ruble. As a result, Moscow is quickly becoming a popular tourist destination for foreign travellers as one of the most affordable European cities. During the 2008 financial crisis, many European nations benefitted from cheaper tourism costs. For example, Argentina successfully reorganized its economy based on inbound tourism. Head of Moscow’s Committee on Tourism and Hospitality, Sergei Shpilko, notes that Southeast Asia, Middle East and Latin America are tough competitors, but Christmas package tours to Russia would be advertised in London at consumer-friendly prices. The highest amount of foreign tourists to Russia is from China with nearly 920,000 Chinese tourists from January to September 2014, a 6 per cent on last year. Japanese tourism to Russia increased by 4 per cent, while South Korean visitors to Russia skyrocketed to an astounding 57 per cent. Regarding the Asian countries, while a large part of the world is spending during this holiday season, how does the Asian market compare during this time of year? Christmas is not an official holiday in China and Japan, but due to commercialisation, Christmas is more widely celebrated in Asian cultures. Bloomberg reports, “Christmas retail displays are becoming increasingly common in China and other parts of the world that don’t traditionally observe the holiday […] aiming to get shoppers in Asia and the Middle East to catch the Christmas spirit — and open their wallets”. American retailers and department stores, such as Macy’s, Aeropostale and Saks Fifth Avenue are partnering with e-commerce companies Borderfree and Alipay to offer their Christmas specials to Chinese consumers. As for Western retailers located in China, such as Tesco and Carrefour, they are equally promoting the Christmas sales. The world’s largest listed jeweller, Chow Tai Fook, operates more than 2,000 outlets in China and is held its first Christmas promotions this year. However, the influx of online shopping of China means shopping centres are experiencing fewer visitors. Hong Kong-based Kerry Properties had a novel idea to raise footfall. Last year, they trailed a Christmas market at one of their malls, which was very popular. Hin Lui, Creative Services and Production Manager for Kerry Parkside in Shanghai, said, ““There is a big push for retail malls to innovate, and how to bring people in to spend money is to create an experience for them”. This is especially true this holiday season. Kerry Properties expanded their Christmas bazaars to two malls and to last the entire month of December. This year, the bazaars are more festive with traditional log-cabin-style stalls, weekend events, and classes on gingerbread baking, ornament decorating and wreath making. Live choirs and bands will entertain guests on Christmas Eve and Christmas Day. Tom Gaffney, Head of Retail at Jones Lang LaSalle in Hong Kong, predicts a 5 to 10 per cent increase in sales due to newly introduced the Christmas shopping period in China As we gather with loved ones, admire the twinkling lights, indulge on mince pies, wrap (or more likely unwrap) presents, and sing jolly Christmas tunes it’s easy to see why the spirit of the Holiday season is catching on in countries that don’t traditionally observe this period for more reasons than potential economic growth.
Real Estate Branding
Jeff Bezos, the CEO of Amazon, believes, “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well”. Therefore, one can reason that a company earns a respectable brand by succeeding in great tasks. However, while product quality is important, companies must use unique marketing strategies to masterfully construct a recognisable brand. Imagine walking down the cereal aisle at the grocery store. Sainsbury’s Basic Cornflakes are priced at £0.45 while Kellogg’s Corn Flakes are £2.00. The cereals contain identical ingredients, but the Kellogg’s Corn Flakes are priced 1.65 more than Sainsbury’s option because the consumer is purchasing the Kellogg’s brand. Purchasing the brand includes paying for their unique tactics, such as marketing, advertising and packaging. Branding is increasingly vital for a company’s survival in the marketplace as the influx of competing products of equal quality rises and global products are easily accessible. Simon Clift, the former Chief Marketing Officer of Unilever, says that a brand is a series of contracts between a company and its consumers. Furthermore, branding is not exclusively tools to boost large corporations, but is useful for small businesses too. A business’s brand is its promise of what consumers can expect from the business’s products and services, differentiating this business from its competitors. Entrepreneur states, “Your brand is derived from who you are, who you want to be and who people perceive you to be”. Social media has altered how consumers perceive brands. Oreo is known for creative social marketing and branding. When the brand turned 100 years old, they utilised their Facebook page to release 100 new Oreo designs for the next 100 days – the first design was a seven-layer rainbow cookie in support of gay pride. As a result of the campaign, Oreo gained over 231 million media impressions from over 2,600 articles, increased their Facebook engagement by 195 per cent and increased their share rate by 280 per cent. Oreo’s 2014 social media campaign, Wonderfilled, utilizes catchy 30-second videos displaying what happens when people get their hands on these moreish cookies. The videos target different audience demographics by featuring hip hop artists, country singers and an adorable little girl with her dad. Additionally, Oreo has 10-second video clips, ‘Snack Hacks’ that demonstrate inventive ways to enjoy Oreos. These shorts can be shared on Vine, Vimeo, Facebook, Twitter, Instagram and more. However, social media can all-too-easily taint a company’s brand. The cookery website Epicurious used the Boston Marathon bombing as a Twitter promotional tool by posting tweets such as, “In honor of Boston and New England, may we suggest: whole-grain cranberry scones!” Branding is focusing on what consumers are thinking and saying about a brand, not solely on quality or price, but the whole picture. This is a goal for Tracy De Groose, the UK CEO for media, digital and communications powerhouse Dentsu Aegis Network. Dentsu Aegis has recently acquired social media management agency Tempero in reaction to brands utilizing social media to manage global brand personas. As our last post mentioned, thinking global and acting local are vital for international businesses. Branding is a significant tool in creating a successful global brand. Tempero has over 160 professionals and strategists that will integrate into Dentru Aegnis. Tempero’s expertise in community management and engagement will strengthen the Dentru Aegnis’s branding development strategies. The Atlantic confirms that the UK has been at the forefront of branding strategy through social media and emotional appeal. This is a major reason why Dentsu Aegnis, a Japanese agency, has chosen its London-based firm as their “centre for excellence” in social media made possible by the Tempero acquisition. De Groose emphasises the importance of using digital and social media to highlight business value, stating “A lot of the time we think of social media as the likes of Twitter and Facebook when actually it’s so much more fundamental than that. It goes beyond platforms. They just help us get there. Maybe it’s time the label social media was changed”. Branding and real estate are not usually combined, but that needs to change. RE/MAX and CBRE are depicted as established, trustworthy global corporations. RE/MAX Canada has enhanced its branding by launching their BeYourCareer campaign. The campaign targets real estate professionals to boost their careers with the company’s unique benefits. Understandably though, most real estate firms and developers don’t possess the branding cache of the products they sell. However, shopping centre real estate giant, Westfield has mastered the power of creating a discernable brand of shopping centres. Westfield centres worldwide are referred to as ‘Westfield’s’, like a vacuum referred to as a ‘Hoover’ or facial tissue as ‘Kleenex’. Peter Lowy, Co-Chief Executive Officer and Chief Financial Officer of Westfield malls, states, “We did what others didn’t think you can do, which is to brand malls”. Westfield has created a distinctive visual identity that underpins their brand personality of a luxurious, desirable and contemporary hub for fashion and leisure. The visual image adjusts based on trends and seasons, but the underlying Westfield brand personality, that communicates the company’s values and objectives, remains intact. Most importantly, Westfield maintains a cohesive brand worldwide. Every centre portrays Westfield’s foundational characteristics because Westfield created a consistent, in-depth brand guideline document that is implemented in marketing and communications worldwide. Westfield creatively uses specific social media platforms to target desirable demographics. For instance, In 2011 Westfield Australia selected 23-year-old Gold Coast native, Alyce Cowell, as the Westfield Insider on their Youtube channel and Facebook page. Cowell acts a trustworthy information source for consumers while encouraging conversations on conversations about shopping, smart buys and fashion and lifestyle news. In 2013, Westfield launched a profile on the popular Chinese social media network, Sina Weibo, in order to engage with potential Chinese shopping visitors to the UK, USA, and Australia. During the first six months of the launch, Chinese visitors to The Village in Westfield London increased by 20 per cent and Chinese shoppers’ spending increased by 60 per cent at Westfield Stratford. Westfield Group’s Marketing Manager John Batistich recognizes that, “Digital marketing is essential to Westfield marketing”. Tracy De Groose, the UK CEO of Dentsu Aegis, insists, “Brands need to stop treating social media like a channel”. Westfield Group recognizes that social media attracts consumers, but is not the end game. Westfield is incorporating the digital experience in their centres to create a unique involvement with their brand. Westfield Stratford promoted Pharrell Williams’ new album, GIRL, through a physical installation that interacted with newby consumers through push messages. Visitors that followed the message were led to the installation to entre the letter I in GIRL, rewarded with exclusive access to Williams’ newest music video, song track and links to purchase the tracks. In one weekend, over 1,000 people interacted with the installation. http://youtu.be/RKLxah2fDLs Taylore Hunt Account ExecutiveMore
Think Global, Act Local
Retailers are being advised to focus on their glocal presence. That is not a type-o. Glocal is the concept of acting globally while thinking local. Glocalisation isn’t forced upon retailers and producers through laws or codes of conduct. Rather, glocalisation concentrates on understanding consumers’ unique qualities and needs and, in turn, incorporating these characteristics into products directed at that target demographic. For instance, McDonald’s has over 35,000 restaurants around the world and all provide their famous Big Mac hamburger. However, their menus also adapt to local customers’ regional desires. McDonald’s restaurants in Brazil provide croissants with Portuguese cured ham and Brazilian cheese for breakfast, Chinese McDonald’s serve boba tea, taro pie and custard egg McMuffins, and McDonald’s in Israel serve McKebabs, lemon tea with mint leaves, and corn sticks.
You might wonder if customers even want these products from McDonald’s. They go to McDonald’s for Big Macs and chips, right? The Parker Avery Group, a strategy and management firm with research units, found that the most important investments for retailers in 2015 are understanding the local customer and market, as well as tailoring the assortment to local markets.
Currently, 51.3% of retailers produce different inventory for each country they serve. As seen by McDonald’s, who maintains their traditional symbol, slogans, and the majority of their quintessential menu in global chains, local changes do not have to be major product redevelopments. The changes are considerate additions that provide a tailored experience for the consumer. Ultimately, many retailers beg the question, “How I can sell more of my brand”. However, they need to ask, “How do I get the shopper to spend more”. It is about providing the customer with what they want. Sales were directly affected when retailers concentrated on the consumer and adapted brands to reflect consumers’ core values based on global regions.
For Innesco, glocalisation is pertinent because it is not solely for products, but also for experiences and branding.
As branding experts, we strive to represent our clients and ourselves with the upmost respect. A part of the branding process is properly researching the global market. We have all heard the horror stories of brands that have not done so, such as the American car company Chevy naming a car ‘Nova’ that translated to ‘won’t work’ in the South American market or Pepsi’s launch in the Asian market with the slogan “Pepsi bring you back to life” literally translating to “Pepsi brings your ancestors back from the grave”.
A poorly considered local advertisement can damage an entire global brand. As Benjamin Franklin said, “It takes many good deeds to build a good reputation, and only one bad one to lose it”. Reputation is a vital characteristic for companies and brands. Harvard Business Review reports, “70% to 80% of market value comes from hard-to-assess intangible assets such as brand equity, intellectual capital, and goodwill”. Therefore, organisations are particularly sensitive to anything that might damage their thoughtfully constructed reputation.
There are successful cases of glocalised branding and property. For instance, coffee giant, Starbucks, incorporates both. Starbucks was gaining a reputation for generic coffee stores with earth-tone walls, brown chairs, and dark wood. However, in an effort to localise their truly global brand, over 23,000 stores worldwide, Starbucks redesigned many of their units to reflect the local taste and character. This coffee store in New Orleans, Louisiana featured works from local artists, as well as brass instrument lighting to embrace the city’s jazz heritage.
Not all stores are as elaborate as this, but it embodies how deeply Starbucks considers the design for each location. In fact, they have developed a portfolio of store designs so that their designers look at every store anew “to ensure that it looks distinctively local. This represents a new level of coffeehouse comfort, meaning that no two Starbucks will ever be entirely the same”.
Of course, you don’t have to be a multi-millionaire corporation like Starbucks to be global and think local. Various publications and boards, such as the Harvard Business Review and American Marketing Association, have devised lists of appropriate resources for glocalisation. We have compiled these into a single list with the most significant assets for businesses to achieve a global reach with local features.
Simple, but powerful concept that transcends cultural boundaries.
Go beyond the product and address motivations, such as an education, safety, love, etc.
A unified branding vision that coordinates with and respects consumers in targeted locations.
Broadening cultural perspectives to ensure a cooperative mindset among global organizations for a smooth implementation of global strategies.
Internal cooperation to create free-flowing information and ideas across the organization.
For a company to be glocal, it must possess the global reach of an established corporation alongside the creativity and flexibility of a start-up. For Innesco, the most important information to take away from this information is to understand and empathize with clients’ needs, as well as recognize how we can achieve those needs. Glocalisation is a stimulating challenge to meet that helps us to connect with our clients, team, and environment on a greater level.
No Alternative – Final Chance For Chancellor On Business Rates
The discussion over Business Rates has long ridden high the UK’s property media headlines and the Government has been hesitant to engage with the matter by way of no meaningful response to calls for reform.
With the Autumn statement upon us, small high street business operators and retailers across the country see this as the Chancellor’s last stand – ‘will they’, ‘wont they’ finally address the issue of business rates and revaluations, or will they simply send another curve ball to cause further painful subterfuge at the cost of possibly thousands more stores and businesses closures on the high street – throughout the next Government term.
First established as the Poor Law in 1601, Business Rates have grown 25% since 2008 and with so may regional high streets still haemorrhaging shops who simply can’t pay the bill, the situation needs to be addressed tomorrow, with radical reform. The UK now pays the highest property taxes in Europe and for many businesses and retailers, the case is clear that the rates bill has absolutely no reflection on property value today.
A BBC News feature posted today highlights the plight businesses and retailers across the country. With business rates linked directly to the size of the physical space of the business, how can it account for online businesses?
The BBC’s example clearly demonstrates what’s happening at the top end of the retail market. The news websites states: “…So, for example, Harrods and the online retailer Asos both have similar turnovers, of £716.3m and £769.4m respectively, but Harrods faces a business rates bill of £11.5m in 2014-15, while Asos is set to pay £935,000”.
In industry, the position of the shopping centre industry is clear form the standpoint of the BCSC who issued a press release calling for change.
Along with several other measures, the BCSC has proposed a set of recommendations led by the call for regular revaluations of property in line with the turbulent nature of the retail sector’s property value performance across the country. In the statement, it adds: “…this would be made practical through the exemption of all hereditaments with a rateable value of less than £12,000, which currently account for 64 per cent of all assessments made but only total around 6 per cent of the income of the business tax”.
The BCSC also highlights that more commitment is needed beyond the current Administration Review, the Government needs to also review the link between the business rates multiplier and RPI to ensure business rates reflect current economic conditions.
Speaking up for smaller businesses and retailers, Bill Grimsey the once CEO of Wickes, is now the ‘high street adviser’ to the Labour Party. Grimsey presents a strong case study for reform in the New Statesman today that highlighted just how dire the situation is for the smaller independent shops and stores – he stated a Fish ‘n’ Chip shop in Rochdale pays £6,000 rent a year yet its business rates tax is £19,000.
Grimsey highlights a cost-effective path to reform. He states that a Treasury restructuring of Valuation Office Agency, the Government agency that sets the Business Rates (most people probably haven’t even heard of it), will eradicate the bureaucracy and administration of the current system and paths the way for a new fairer approach to annual revaluations.
What is clear from all corners of the business community is that something has to happen. Business Rates has the potential to will be a vote loser for Conservatives if they don’t change the current system.
The situation is complex. With £26.9Billion raised by Business Rates this year it’s a healthy pot of rich pickings. That said, the pressure on the Chancellor to continue to reduce the deficit has never been greater (which he’s struggling to do borrowing £3.7Billion more in April to October 2014 than in 2013).
With promises tomorrow to the NHS offering a further £2Billion to avoid further strike actions, there is simply no easy answer to Business Rates from a Treasury or political point of view.
Euan Blake, Account DirectorMore
Innesco client, Unibail-Rodamco, presents its innovative new developments at MAPIC 2014
With over 330,000 sq m (3.6m sq ft) GLA, more than 600 stores and restaurants and 15 cinema-screens, all across four countries, Unibail-Rodamco delighted the industry at this year’s MAPIC conference in Cannes, France.
The largest listed commercial property company in Europe made its return to the annual retail property conference this year, with a communications campaign developed and delivered by Innesco Senior Account Manager, Charlotte Fougéres, and Senior Account Executive, Claudia Kauert. New developments included Polygone Riviera, the open-air lifestyle mall in nearby Cagnes-sur-Mer, and Mall of Scandinavia – the next-generation mall in Stockholm that will become the largest shopping centre in Scandinavia when it opens next year.
The developer, with a portfolio valued at €33.6bn (as of 30 June 2014), has revealed in its Half-Year Results that Europe remains the priority target market for retailer expansion, a prediction supported by a forecasted 1.4% average growth in GDP for European countries over the next 6 years.
With a growing European market at its feet, Unibail-Rodamco looks set to add to its enviable portfolio of shopping centres, as it continues to deliver innovative, class-leading assets.
While international developments excite us, it is the UK developments that make our tea-drinking, fish and chip-eating selves beam with pride and opportunities for the future.
UK Feature – Newsletter 25.11.2014
Innesco thrives on the buzz and possibilities bred at MAPIC. An inspiring aspect of the MAPIC experience is witnessing developments transform from the conception to implementation, and even, completion phases. We are equally excited by the promise and opportunities created by international and UK developments. This year at MAPIC, Land Securities, a member of FTSE 100, presented a compelling project portfolio to be excited about. Land Securities announced updates for 4 new and on-going projects dotted across the UK from Glasgow to Portsmouth. Below is a brief outline of just four of their eagerly awaited projects.
Buchanan Galleries is Land Securities’ exciting shopping and dining experience located in the heart of Glasgow’s city centre. Glasgow was an easy decision with over 600,000 residents and 2.5 million in the city region, more than three universities, and attracting 2.3 million tourists annually. Buchanan Galleries offers this influx of customers one of the largest city-centre developments in Europe and unlike anything Glasgow previously has. Land Securities Buchanan Galleries boasts over four floors and 600,000 sq. ft. of shops and restaurants.
Land Securities announced at MAPIC that Superdry, Mango, Next and H&M have all signed on to the centre, as well as premier food and beverage brands, D&D London and Living Ventures Group. D&D London is one of Europe’s foremost luxury restaurant and hotel groups, operating in London, Paris, New York, Tokyo, and now Glasgow. D&D London owns and operates 34 restaurants globally producing aggregate revenues of £75 million annually. Their bespoke restaurant at Buchanan Galleries will sprawl over 10,000 sq. ft. with rooftop views of Glasgow’s iconic Buchanan Street. Tim Bacon, CEO of Living Ventures Group recently won the Legends of Industry Award for good reason. Living Ventures Group operates some of the most exciting restaurant and bar brands in the UK, such as Manchester House that won Best Restaurant, Best Bar and Best Newcomer at the Manchester Food and Drink Festival Awards in September. Living Ventures Group will open two of their unparalleled restaurant experiences at Buchanan Galleries, Artisan Kitchen + Bar and The Alchemist with in house mixologists for a truly unique experience.
Moving down the country, Westgate Oxford is truly unlike any shopping and leisure centre presently in Oxford. Westgate Oxford, the joint project between Land Securities and The Crown Estate, will provide Oxford with high-end national and international retailers, such as flagship stores for John Lewis, Next and Michael Kors. These premiere brands will cater to Oxfordshire’s prosperous residents, who earn a median gross weekly income of £30 more than the national average. The centre also provides visitors with a 5-screen Curzon Cinema experience achieved by state-of-the-art Sony 4k digital projectors. The luxury outlets and cinema experience will accommodate University of Oxford’s student culture with over 22,000 pupils living on or around campus.
Portsmouth’s is the most densely populated unitary authority with over 5,000 people per sq. km while London has 4,000. Furthermore, tourist numbers have shot up and Gunwharf Quays compliments these increasing numbers by providing a luxury retail outlet experience. Visitors to Gunwharf Quays can enjoy global premium brands like Tommy Hilfiger, Links of London, Swarovski, The North Face and Mint Velvet’s first outlet store. There is something for every style and taste!
Bluewater, the impressive shopping and retail destination, was systematically placed in Kent, which boasts the largest population of any county in South East England with over 1.41 million in 2009. Bluewater incorporates European retail favourites like Next, H&M, Le Creuset and the UK debut store of Jolie Papier, alongside US staples American Eagle, Victoria’s Secret, and Adidas’ homecourt store – one of only two in the world! Moreover, Bluewater offers dining experiences for every appetite from Loch Fyne and Carluccio’s to Wahaca and Byron, which will appeal to Kent’s diverse population, the fourth largest proportion of residents classified as non-White British in the South East.
Innesco is very excited about Land Securities’ new and existing projects. Ailish Christian-West, head of Land Securities’ shopping centre portfolio, explained at MAPIC how Land Securities is strategically adapting and analysing their centre to align with the structural changes in the industry. Clearly, this has been successful by opening different centre types from the luxury outlet destination in Portsmouth to Glasgow’s city-centre shopping and dining experience.
Overall, MAPIC 2014 was an enlightening and inspiring experience for Innesco
MAPIC 2014 Overview [Innesco perspective]
As the Innesco team touched down in Cannes for MAPIC 2014 the tranquil sunshine and refreshing Mediterranean breezes were the first inclination that this was going to be a good week. However, it was the striking, seafront Palais des Festivals et des Congrès where the majority of MAPIC 2014 would take place that sealed the deal for an energetic series of events.
Although over 8,300 global participants attended MAPIC, a mere 40 brave retail real estate souls participated in CBRE’s Cycle to MAPIC, a 3-day and 450kilometer trek from Milan to Cannes for MAPIC. Our own Manager Director, Dan Innes, was one of the brave souls that happily endured torrential rain and steep climbs to raise over €25,000 to support children’s causes. [Dan tweet about arriving ] The forthcoming events at MAPIC were quick to relieve the cyclists’ aches and pains starting with the Opening Night Party at the Majestic Hotel. Is it just us or does wine taste better overlooking the Promenade de la Croisette?
With only three days to experience all MAPIC 2014 had to offer, Innesco targeted, in our opinion, the most perceptive and lively events. Innesco’s blog posts on MAPIC 2014 Day One, Two and Three provide more detailed accounts of each day. Here are our favourite moments from each day.
Day One: Cheering our Manager Director, Dan Innes, to the finish line as he arrived in Cannes after he cycled 500 gruelling kilometres for Cycle to MAPIC was a joyous way to kick off the three action-packed days ahead! The Opening Party hosted by Thor Equities and held at The Majestic Hotel truly lived up to the venue’s name. Innesco’s first day was a whirlwind of excitement! It was great to meet up with our pals at JLL and Unibail-Rodamco at their busy stands to discuss the days ahead both in Cannes and for the future.
Day Two: It’s difficult to say what grew more – our waistlines or our fervour to develop interesting content for retail real estate. Between TIAA Henderson Real Estate’s picturesque breakfast on the sand [Dan tweet on beach]., the annual Leslie Jones and Lunson Mitchenall lunch for US and European retail [Dan tweet about lunch], and Land Securities’ grand dinner [Ed tweet from dinner] [LS tweet about dinner] [Inn_Tweets dinner] – you might think it was our waistlines that expanded. However, the enriching and lively discussions at the JLL, Unibail-Rodamco, and Land Securities stands proved to be fulfilling while not raising our BMI. Not to mention, Innesco participated in the MAPIC Tennis Tournament [Inn_TweetsTennis]. While Judy Murray won’t be calling us anytime soon to discuss tactics, we certainly enjoyed bonding with the other participants.
Day Three: In true Innesco style, we did not slow down on our last day in Cannes. Day three was chock-full with 76 journalist interviews, client meetings and new business roundtables! This is what we thrive on – interacting with clients, generating new business and planning for the future NOW. These are exciting times for Innesco, people. Watch this space!
Overall, MAPIC 2014 was an enlightening and inspiring experience for Innesco! Despite the warm breezes coming off the Mediterranean sea of Cannes, we were itching to return to London to implement our freshly generated ideas and industry knowledge! We can’t wait to tell you all about them.More