Review of MAPIC 2014 – Day 3
Innesco and the MAPIC 2014 events did not slow down despite the 3-day event coming to a close today. MAPIC 2014 presented various themes within the retail real estate industry. Innesco is thrilled to recognise, as well as support the changing landscape of our industry and provide a unique insight to the themes in focus.
A present theme at MAPIC 2014 was the understanding the target demographic in an omni-channel market. For instance, Westfield Milan is bringing luxury brands to the fashion capital of the world. What better location to provide style conscious consumers with the most innovative and premier luxury brands? At the US Breakfast, US retail real estate professionals panel, specifically Denny Gerdeman of Chute Gerdeman retail design and branding consultancy, expressed that experience, omni-channel and store design were the necessities for success in the transformative US retail marketplace.
Another popular subject this year at MAPIC was for shopping centres to provide an experience, a day-cation (single day holiday) of sorts as a retreat for consumers. Land Securities’ retail and leisure destination, Bluewater, is the leading one of its kind Europe and provides shoppers with 330 retailers, cafes, bars and restaurants. Unibail-Rodamco’s development Mall of Scandinavia in Stockholm allows visitors to indulge in over 250 shops, restaurants from O’Leary’s restaurant, bowling alleys, Ahlens Wellness centre, and a 15-screen cinema and Sweden’s first IMAX cinema operated by Filmstaden Scandinavia. Kotka Old Port in Finland, partly developed by Milligan Retail, will be the country’s first waterfront designer outlet center that boasts over 200 shops, a marina, ferry and cruise terminal, hotels, restaurants, apartments, a casino, and the National Maritime Museum. The Riviera Shopping Centre in Moscow, developed by Praktika, will possess more than just a cinema, the first Kidburg in Moscow, restaurants, two hypermarkets, childrens’ stores, entertainment, and 300 shops, but also will deliver panoramic views of the city and river!
You don’t need to purchase a flight ticket to experience a unique shopping experience. The £8 billion revamped Battersea Power Station will offer customers with all things ‘extraordinary’ on The Electric Boulevard, London’s newest high street, with 40 retailers in the village-setting Circus West phase, due to open in 2016, and more than 90 retail units in the Power Station phase during 2020. Battersea Power Station will also include stunning apartments, let by The Battersea Power Station Estates, were designed by Foster + Partners and Gehry Partners.
The expansion of food and beverage formats into the retail real estate industry has been a hot topic at MAPIC 2014! Tutti Frutti Frozen Yogurt, which began in California in 2008, now operates 850 stores in 48 countries from Qatar to Germany. The self-service, healthy ‘froyo’ provider combines themes of connecting with the target audience and providing an experience by allowing customers to choose from over 100 rotating, seasonal flavours and design their yogurt with countless toppings. Innesco is a big fan! Joe & The Juice was present to quench visitors thirst under the Cannes sun. The Danish firm has stores throughout the UK and Europe, but plan to expand their 50+ stores to 250 throughout the UK and Europe, as well as 15 within the United States by 2017.
‘Retailtainment’ was a buzz word these past 3-days! MAPIC focused on the vitality of the fusion between retail and entertainment by featuring an entire arena dedicated to the theme. The Leisureway, a company dedicated to creating distinctive experiences informed developers to offer unique ‘retailtainment’ experiences from the inception, rather than an additional accessory to a project. Intriguingly, niche experiences generate mass attention. KidZania and Kidburg, a child-directed city environment where children role-play in different professions, received enthusiastic responsiveness in Cannes. Playtime, a soft play company, and Aerodium indoor skydiving were also popular in the arena.
All that said, all work and no play make Innesco a dull company. We had our fair share of sparkling events as well as from client entertaining, the Tennis Tournament, CBRE’s Cycle to MAPIC, the Opening Night Party and the Awards Dinner plus fireworks to the journalist interviews, meetings, lively stands, our very own networking event and new business presentations providing an unparalleled experience!
21st birthday parties are significant milestones in many people’s lives, which makes us even more excited for MAPIC 2015! Our tanned faces will fade upon returning to London, but our fervour and fresh ideas from MAPIC will not diminish anytime soon!More
Review of MAPIC 2014 – Day 2
Day Two has given the jam-packed news from Day One a run for its money! It’s daunting, yet thrilling to digest all of the new and planned developments, market shifts, and digital technology implementations. So, let’s not waste a second. Here are the most exciting bits from MAPIC Day Two!
Despite the consistent trend toward online and mobile shopping, CBRE released findings from their international survey stating that 79% of shoppers prefer the experience of shopping in-store. This information solidifies leisure and destination based shopping centres, such as Polygone Riviera, Mall of Scandinavia and Palma Spring by Unibail-Rodamco. Land Securities has also capitalized on the in-store experience with their Buchanan Galleries development in Glasgow, Scotland. Buchanan Galleries has already secured Next, Superdry and Mango, as well as two prestigious catering operations. Land Securities has previous success with leisure and destination shopping centres as evident by their Westgate Oxford centre in Oxford, partnered with The Crown Estate, that includes Michael Kors, John Lewis, and Curzon Cinemas using premiere Sony 4K digital projectors. Similarly, Queensberry Real Estate’s new retail and leisure destination, Friars Walk in South Wales, plans to open in November 2015 with 35 stores, 10 restaurants, a food court, an eight-screen Cineworld multiplex, and anchored by Debenhams. Who wants to go for a day out?
While the in-store experience is crucial to attracting consumers, Cushman & Wakefield has released findings that E-commerce is the most significant factor shopping centres on a global scale. Intu Properties has incorporated these findings by including 4G in all of their centres and launching their own e-commerce site. Klepierre is using digital technology to engage consumers by trialling PlayBox, developed by Clear Channel, that allows shoppers the chance to win gift cards and goody bags through a gaming link via SMS.
Food and beverage has been a hot topic at Day Two! JLL has added a food and beverage arm by purchasing Coverpoint Foodservice Consultants. This is the first time a leader in the property industry has incorporated specific food service advisors. This is a wise move as Hsiang-Yun Chu, the senior director of retail services at CBRE China in Shanghai, was quoted saying that food and beverage sectors are experiencing rapid growth that is expected to continue through 2015.
IKEA Shopping Centres Russia and Westfield Milan are incorporating trends and consumer awareness by targeting developments to the shoppers’ desires. IKEA is investing €2 billion to extend and develop centres around Russia, such as using €260 million to construct Mega Mytischi in Moscow, which will be one of Europe’s largest malls. IKEA is using the remaining funds to invest in new locations and store formats like two DIY anchors and locating to Eastern Siberia. Westfield is following the scheme of The Village at Westfield London to bring luxury brands to a shopping centre in one of the world’s undisputed fashion capitals. Carrying luxury brands at Westfield Milan will attract new brands, as well as restructuring the public’s accessibility to luxury brands.
Overall, Day Two was a whirlwind of trends, future plans and festivities. From the launch of Retail Real Estate Market (RREM), a MAPIC-powered two-day event from 11-12 June 2015 in Shanghai, to the MAPIC Awards Gala and Party complete with Fireworks embellishing the Mediterranean sky over the Promenade de la Croisette. Cheers to the nominees and awards winners! It’s safe to say the property and retail attendees will be fully acquainted with France’s illustrious champagne and wine!
And on a final note…
Following on from our Managing Director Dan Innes’s successful completion of the monumental ‘Cycle to MAPIC’ challenge, Innesco was again ‘out performing’ today on the centre court. Innesco’s tennis duo of Charlotte Fougeres and Claudia Kauert went out and showed the seasoned MAPIC tennis regulars a thing or two at the MAPIC 2014 Tennis Tournament, congratulations to the ladies for today’s efforts!More
Review of MAPIC 2014 – Day 1
Once again, Innesco is ‘out performing’ at MAPIC 2014 this week. For those associated with real estate and everything retail, MAPIC is one of Europe’s leading conferences with three (or five for some) solid days dedicated networking occasions and exhibitions. Celebrating its 20th anniversary, MAPIC will have over 8,300 global participants including retailers and property developers interested in city and shopping centres, factory outlets, leisure areas and transit zones.
The excitement started before the official first day of MAPIC. CBRE organised Cycle to MAPIC, in which 40 brave retail real estate professionals, including Innesco’s Manager Director Dan Innes, cycled a 3-day trek from Milan to Cannes for MAPIC. Yesterday afternoon, 50 esteemed industry professionals discussed the future of digital and in-store commerce in light of digital technology. The Majestic Hotel and Thor Equities kicked off MAPIC with a bang at Tuesday night’s Opening Night Party.
International partnership was evident in the news from Day One. Unibail-Rodamco discussed two projects due to open next year, Polygone Riviera in the South East of France and Mall of Scandinavia in Stockholm, as well as future projects Palma Springs in Palma de Mallorca, Wood in Wroclaw in Prague and The Scheme in the Netherlands. TriGranit Management Corporation has entered the MENA region by winning the leasing mandate for Cleopatra Mall in Cairo. Hammerson, APG, Meyer Bergman and Value Retail have entered a joint venture, Via Outlets, encompassing three outlet malls in Portugal, Sweden and the Czech Republic. GIC, Singapore’s €80 billion sovereign wealth fund, demonstrated its confidence in the real-estate arm of Turkey’s Ronesans Group by investing €250 million to acquire new business in Turkey’s main cities, execute an existing 460,000 development pipeline and own 20% stake in Turkey’s leading CRE platform.
Retail real estate professionals have risen to the challenges of the changing marketplace. Ailish Christian-West, head of Land Securities’ shopping centre portfolio, explained how retailers are strategically adapting and analysing the structural changes in the industry by reviewing estates, considering store numbers, utilising larger stores as showrooms, and pinpointing desirable locations and trade. Similarly, Media Saturn, who is due to open their 1,000th store, credits their success on an omni-channel strategy called Commerce Everywhere that allows them to open diverse stores from flagships to small outlets.
Transformation was a noticeable theme at Day One. Coresi, the largest urban regeneration project in Romania, aims to be 100-ha upon completion and the first 24-ha phase is currently being developed by Immochan to include 130 shops and restaurants, an eight-screen multiplex, and indoor and outdoor leisure areas with hyper-market. CC Property expertly adapted their original sports stadium scheme for project CC Stadion to a leisure-focused two-floor mall with roof garden and celebrated the success at the opening last week.
Russia dominated Day One as Impress Media organized a day of breakfast and dinner events, as well as a panel discussion. Furthermore, Magazin Magazinov demonstrated Russia’s market maturity by introducing Promresurs’ Europa shopping and entertainment centre in Kursk and the Electronika group and Marins Group’s Nebo centre in Nizhny Novgorod – both have solid construction dates in 2014 and 2015.
Altogether, Day One was a roaring success with the Palais packed to the brim and the Boulevard de la Croisette awash with everyone from the world of property and retail sporting discerning choices of fashion from pin-stripe Saville Row suits to moleskin jackets and deck shoes, lets hope the weather favours Raybans not umbrellas!
Images courtesy of Cycle to.. MAPICMore
Innesco appoints John Heawood as Chairman
John Heawood, Innesco Non-Executive Chairman
Innesco is pleased to announce the appointment of John Heawood as Non-Executive Chairman. John is the former Group Executive Director for UK Property at SEGRO plc, Partner at DTZ Debenham Tie Leung, Managing Director of the Ashtenne Industrial Fund, and brings 35 years experience within real estate.
John will be working with Innesco’s Owner and Managing Director Dan Innes, advising on business performance, development, and industry issues.
Dan Innes commented, “John Heawood’s appointment as Chairman is an important step to not only strengthen our business and resource, but to further establishing our business with major real-estate clients. We see the role of marketing for property investors, developers and asset managers as a growth sector, and are keen to maintain our competitive advantage. John brings a huge wealth of experience that covers investment, landlord and commercial property agency across multiple sectors – and we are confident he will be an asset to our team and clients alike.”
John can be reached at John.Heawood@innesco.co.uk.More
Innesco at MAPIC 2014 Cycle Infographic
Millennials represent the consumer market of the future. They are born after 1981 and are the most diverse generation to date.
This in turn makes them a mystery to the marketing world. However, various recent studies have tapped into this generation in an attempt to understand their behaviour and beliefs and how brands can use this information to tailor their communication strategy to appeal to them. Millennials have grown up in noisy world; they have been bombarded with brand messages since birth which has developed them into a marketing savvy audience. So how do brands go about marketing to them? Recent studies have shone light onto this and developed common trends that directly apply to this generation. In short, they value business transparency, innovation and efficiency. However, above all brands must “rebel against the old way of doing things” (Deborah Patton, 2014) if they are to be successful in attracting this elusive audience. A company that has fully embraced this is Kipling. On 1st October Kipling will introduce their new loyalty scheme, ‘Kipling Friends’. Like other loyalty schemes ‘Kipling Friends’ will reward customers with points when they buy Kipling products, which can then be transformed into ‘smile points’. However, Kipling has taken this concept a stage further. ‘Smile points’ are also rewarded to those who interact with the brand via their social media sites. This innovative marketing scheme reflects the demands of the Millennial generation and should also significantly increase the brands awareness. It will be interesting to see if they achieve their desired result in the near future, but for now, get commenting on Kipling’s Facebook page! Rachel Petrovics Analyst at InnescoMore
How to dress like The French Kooples
After a string of UK fashion brands proving popular in America, it’s France’s turn to teach the Americans a lesson in style! Inspiring French premium fashion brand The Kooples is continuing its international expansion with the opening of new stores in the US.More
Labour Party Conference – Business rates I presume!?
As the Labour conference begins today there are likely to be a few headlines hitting the papers in the coming days – some of which will not reference the devolution of powers to cities, countries, regions and who knows where else.
The minimum wage will be a big point, accompanied by the ‘cost of living crisis’ – this concept was proudly launched at the ‘One Nation Economy’ speech at Senate House back in January. I sat listening to the rapturous applause which followed every sentence, Ed was quite at home as he spun around looking his staunch supporters in the eye. However, little has been said since. The focus has been on Scotland, Ed’s inability to lead, foreign policy and education. So expect the re-launch of Ed’s baby and this time it may well be more widely acknowledged.
One thing likely to be referenced are our high streets and the challenges we face rejuvenating them and turning them into centres of our communities once more. This will please the real estate industry as it is an area in need of serious attention. Roberta Blackman-Woods MP, Shadow Minister for Communities and Local Government is a passionate and credible champion of the British High Street. She attends many debates and listens to arguments for change. However, I fear her sound bites will be likely focused on housing and the need for greater provisions (all linking back to the cost of living). While the construction industry will welcome government’s intention to build housing, other property professionals will be less satisfied.
What Labour, and indeed all the parties are unlikely to tackle is the broken business rates system. The 100 businesses that signed an open letter (reported in the Telegraph) last week, are calling for ‘fundamental reform’. There will be reference to it of course – a 1% cut, small business relief, vacant property relief, etc. However, these cuts and short term solutions highlight the real stark issue. The system is broken. There may well be a review promised and an acknowledgement of the opposition to the current system from the BRC. More frequent valuations will be promised (as all the parties will). But it will be some time before we understand what government (whichever party leads it) will do to transform a broken property taxation system. A 1% will not make the problem go away forever.More
Innesco sponsors Movers and Shakers – UK PLC
Innesco will sponsor the movers and shakers breakfast, to be held Friday 19 September. As sponsor, Innesco will showcase its expertise in marketing communications for the real estate industry and add to its growing reputation in the industry.
The movers and shakers property networking forum returns to London on Friday, at The Dorchester, Park Lane. The event will focus on the role of the UK PLC in ‘city growth’ and will gather corporations from right across the UK. The breakfast is to be chaired by Damian Wild, Editor of Estates Gazette and will be particularly interesting as the results of the Scottish independence referendum are announced just an hour before. Many inside the room will be adjusting to the decision taken by the Scottish people.
With its focus on UK PLC, the five speakers give good representation across the country. They include Sir Howard Bernstein of Manchester City Council and Sir Eddie Lister who is deputy mayor of London. It is a rare opportunity to gather the most important business leaders in the country in one room. As a networking event it is unrivalled and the quality of speakers will no doubt make Friday morning one to remember.
Innesco is pleased to sponsor the breakfast on such a historic occasion. Founder and Managing Director of Innesco, Dan Innes, commented, ‘Innesco is delighted to support this hugely successful networking event. We pride ourselves on our contacts and ability to bring the right people together at the right time, therefore sponsoring this event is representative of our own business. We want to take the opportunity to discuss the property industry with its leaders and discuss the ways in which Innesco can help grow their businesses.’
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Damian Wild, Editor at Estates Gazette
Sir Eddie Lister, Mayor’s Chief of Staff and Deputy Mayor, Policy and Planning, GLA
Sir Howard Bernstein, Chief Executive, Manchester City Council
Sir Michael Bear, Chairman, UKTI RIO
Tony Travers, Director of Greater London Group, LSE
Mark Rogers, Chief Executive and Director of Economy, Birmingham City CouncilMore
The Scottish referendum – Exit clause or no exit clause?
When Scotland’s 16-and-ups go to the polls on Thursday (that traditional day of ‘British’ voting), they will be considering one of two options. A vote to stay in the UK or a vote to leave and become a fully independent Scotland. Now that really is something you know already!
But what is less obvious is the complete lack of urgency among the ‘Better together’ backers – until now of course. The papers are now heaving with coverage. The Telegraph says: ‘Yes vote threat to Scottish manufacturing’. While the FT states: ‘Cameron in final pitch to Scots‘ and ‘Union backers rally round Trafalgar square’. The Independent says we have just ‘Two days to save the union’. The Guardian appears to indicate that Cameron is perhaps on his way out of Scotland for the last time; ‘Cameron’s parting plea to Scots’.
While this is sudden, owing to the close proximity of people journeying to the polls there have been a vocal minority for a while – I like to think of them as heroes. With 700,000 registered to vote by post (submissions were coming in two weeks ago), it may well be too late for the last minute Westminster push.
Alastair Darling the former Chancellor, who already possesses infamy for holding the reigns when the global recession struck in 2007, has taken up the sword in defence of the UK. He is a modern day knight, fighting in defence of the kingdom, that will no doubt be rewarded with a tap on the shoulder if his campaign proves successful.
Accompanying our political hero is a corporate one – Standard Life. The Scottish based corporate giant have been vocal in the problems with a yes vote, this dates back to February. Threatening to leave their Edinburgh base if the UK is split, this should is an important crutch for the ‘Better together’ campaign.
Soon the uncertainty will end, and this is crucial for those in the Real Estate industry. Exit clauses have become the norm for property negotiations in Scotland and with prices set to drop with a ‘yes’ vote, many business deals are on hold. But thankfully not for long, with a yes vote there will be many more negotiations ahead.
Thursday will really show us how the individual battles have gone. Salmond vs. Darling. Standard Life vs. Franz Ferdinand. Russia vs. the US. And finally, Yes vs. No.
As pollmania has swept the country and panic has officially set in. We (the Innesco team) would like to put fears at rest by revealing our own predictive poll.
Yes vote – 41.5%
No vote – 58.5%
Cue wild celebrations, and a weekend trip to Scotland in the coming months.More