TREND BOOK 2019 - SHOPPING CENTERS - Skivak

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TREND
  BOOK
  2019
SHOPPING
CENTERS
www.skivak.pl
TABLE OF
                           Poles love shopping.
                           They visit shopping malls even several times a month.

                           To buy? Not only. They also look and experience. What does
                           the shopping center market look like at the beginning of 2019?
                           How in the last years have the consumers changed? One thing is

                                                                                                     CONTENTS
                           certain: the customers experience and emotions should be in the
                           spotlight. Active on the market for 10 years, we study trends and
                           analyze the consumers. We tell stories and build brand communication.
                           Why shopping malls? Because here, in our opinion, will happen a lot.
                           The situation is changing in front of our eyes, but the true revolution
                           is still ahead of us.

                                                                                                     1. MARKET ANALYSIS. PROSPECTS FOR THE INDUSTRY                      4

                                                                                                     2. TRENDS. SHOPPING CENTER MARKET                                   14

                                                                                                     3. CHANGES IN THE CUSTOMER BEHAVIOUR. CUSTOMER EXPERIENCE           24

                                                                                                     4. CHANGES IN THE CUSTOMER BEHAVIOUR. HOW DO POLES BUY?             28

We live in an interesting reality.                                                                   4. UNDER THE MAGNIFYING GLASS. CHALLENGES FOR THE INDUSTRY          34
If you want to go with the times, you also have to be interesting.                                   5. ANALYSIS OF ONLINE COMMUNICATION. INTERNET IS GROWING STRONGER   56
And this is not easy at all.
The report we have prepared is a summary of the                                                      6. TRENDS. CONTENT MARKETING                                        68
changes that we all have opportunity to observe,
but also - a comparison of the most interesting                                                      7. TRENDS. COMMUNICATION                                            74
trends and solutions that will certainly affect
the way of reaching to and communicating with
the client. The research part concerning shop-
ping malls on the Internet have been designed
in cooperation with Sotrender and SentiOne.

SKIVAK Team

                                                                                                2
MARKET ANALYSIS
                                                                                                From the analysis of the CBRE
                                                                                                report examining commercial real
                                             Paweł Hałabuda, SKIVAK expert                      estate industry in Poland, it appears

           PROS
                                                                                                that the shopping center market

                                                                                                                                            +4%
                                                                                                in our country is slowly saturating.
                                                                                                In 2018, 430.000 sq m of shopping
                                                                                                centers was opened, with the falling

           PECTS
                                                                                                dynamics of growth. On the one hand,
                                                                                                the prospects for the industry are quite
                                                                                                promising. On the other - the sector
                                                                                                will have to face several challenges.      The shopping center market
                                                                                                                                           in Poland is slowly getting sat-

          FOR THE
                                                                                                                                           urated- in the years 2014-2018
                                                                                                                                           the supply grew by 4% annually
                                                                                                                                           in comparison to 8% per annum
                                                                                                                                           in the years 2009-2013.

                                                                                                                                               he cities with the highest space
                                                                                                                                              T
                                                                                                                                              saturation with the commercial

            INDU
                                                                                                                                              space are Poznań, Gdańsk and Lublin.

                                                                                                                                               hanks to the new investments,
                                                                                                                                              T
                                                                                                                                              the supply in 2018 amounted to
                                                                                                                                              430 000 sq m.

                                                                                                                                           In Poland, the modern commercial

            STRY
                                                                                                                                           space is mainly created in the 8 larg-
                                                                                                                                           est agglomerations. Warsaw domi-
                                                                                                                                           nates among them, where there are
                                                                                                                                           currently 47 objects with a total area
                                                                                                 THE LARGEST CITIES                        of 1.5 mln sq m (there is 598 sq m per
                                                                                               DOMINATE- AS MUCH AS                        1000 inhabitants). There are also the
                                                                                                                                           highest rents- the rental of prem-
                                                                                               66% OF THE NEW SUPPLY                       ises with an area of 100-150 sq m
                                                                                               HAS BEEN ESTABLISHED                        in the best locations can cost even
                                                                                                  IN THE 8 LARGEST                         115-120 EUR/ sq m a month.
                                                                                                  AGLOMERATIONS.
Table of contents / MARKET ANALYSIS. PROSPECTS FOR THE INDUSTRY                           4
MARKET ANALYSIS

                            IN COMPARISON TO THE WESTERN EUROPE, POLAND                                                      IN 2018,                Opened in 2018, Forum Gdańsk
                                STILLS IN THE 7TH POSITIONS WITH REGARD                                                 21 NEW SHOPPING              (62,000 sq m) perfectly fits into new
                            TO THE NUMBER OF MODERN COMMERCIAL OBJECTS.                                                 CENTER OBJECTS               consumer trends and expectations.
                                                                                                                           WERE BUILT                The facility combines a modern ur-
                                                                                                                             AND 15                  ban space with a place for shopping,
                                                                                                                        WERE ENLARGED.               entertainment and recreation.

                                                                           +21
The first place belongs to Great Britain                                                                        Due to the growing competition - new
with more than 1,500 facilities and                                                                              shopping centers that are opening,
France, which has more than 1,200.                                                                              tailored to the customers’ expectations
The most shopping centers function                                                                              - many branches already present on the
subsequently in Italy, Germany, Spain                                                                           market for a long time face the need for
and the Netherlands.                                                                                             significant modernization.

     f the 15 largest shopping centers,
    O
    up to 5 are located in Great
    Britain, including Trafford Center
    (Manchester) and Liverpool ONE.    Currently, the situation of shopping
                                       centers is stable, which results, for
Experts believe that in the case of example, in their ability to secure
European shopping centers, the de- commercial space contracts.                                                  The sector has to face several challenges
mand will remain unchanged. However,                                                                            that may affect its turnover:
the turn of consumers towards the so- Out of 420 buildings, the vacancy rate
called fast fashion is relevant, shop- in shopping malls is currently only 5%,                                    he growing popularity of shopping
                                                                                                                  T
ping centers will therefore look for with the lowest in Warsaw, Wrocław                                           streets: not only restaurants, but also
balance between luxury and premium and Szczecin (around 3%), and the                                              some brands will want to be closer
brands and a more affordable offer.    highest in Upper Silesia (around 6%).                                      to consumers.

                                                     Despite the falling number of new                              he growing importance of e-commerce
                                                                                                                   T
                                                     facilities and the expansion of exist-                        and mobile commerce channels: users
                                                     ing ones, new investments are still                           are more likely to buy online.
                                                     planned, but the growth rate has fall-
                                                     en by half - 4% annually in 2014-2018                          he creation of projects with mixed
                                                                                                                   T
                                                     compared to 8% annually in 2009-2013.                         office-service-commercial functions.

Table of contents / MARKET ANALYSIS. PROSPECTS FOR THE INDUSTRY                                            6
4%
                                                                                            MARKET ANALYSIS

       MAŁGORZATA                                                                                             Atrium Targówek and Centrum Janki
                                                                                                              in Warsaw, and the Platan shopping
                                                                                                              centre in Zabrze. Smaller cities with

       DZIUBIŃSKA
                                                                                                              lower shopping centre density rates,
                                                                                                              weaker market competition and a very
                                                                                                              high purchasing potential are seeing
                                                                                                              smaller convenience retail develop-
                                                                                                              ments targeted at local consumers.
                                                                                                              Eight such shopping centres meas-
                      ASSOCIATE DIRECTOR, CONSULTING                                                          uring between 5,000 sq m and 11,000

                                                                                                                                                         3,2%
                    AND RESEARCH, CUSHMAN & WAKEFIELD                                                         sq m were developed in 2018. Together
                                                                                                              with extensions, approximately 20% of
                                                                                                              new shopping centre supply in 2018
                                                                                                              was delivered in smaller cities.

                                                                                                              The Polish shopping centre market
                                                                                                              is mature with shopping centre den-
                                                                                                              sity remaining high in some cities.
                                                                                                              Poland’s average shopping centre
                                                                                                              density is approximately 280 sq m
                                                                                             THE POLISH       per 1,000 inhabitants, still below the
INVESTMENTS                                                                                  SHOPPING         average for Western European coun-
AND EXTENSIONS                                       In 2018, developer activity focused     CENTRE MAR-      tries standing at approximately 330
Shopping centres continue to                         on both the largest cities, small-                       sq m per 1,000 inhabitants. It is worth
dominate the Polish retail market,                   er cities and towns with a popula-      KET IS MATURE    noting, however, that Polish retail is
accounting for nearly 75% of the na-                 tion below 100,000. Large urban         WITH SHOPPING    centred almost entirely on shopping
tion’s total retail stock. At the end                areas mostly saw completions of         CENTRE DENSITY   centres with a dearth of high street
of 2018, Poland had 460 shopping                     medium-sized and large shopping         REMAINING HIGH   retail. By contrast, high street retail   At the end of 2018, the average vacancy rate for
centres totalling almost 11 million                  and entertainment centres, includ-                       in Western European cities is strong      Poland’s eighteen biggest cities remained at a low
sq m of floorspace. Last year, more                  ing Forum Gdańsk (62,000 sq m) in       IN SOME CITIES   and shopping centres very often com-      of 3.1%. Vacancy rates, however, vary considerably
than 270,000 sq m was delivered in                   the Tricity Agglomeration, Galeria                       plement high street offers.               by shopping centre and strongly depend on the
this format. Of that total, 85% was                  Libero (45,000 sq m) and Gemini Park                                                               attractiveness of a retail offer. Many leading retail
completed in 12 new shopping cen-                    Tychy (36,600 sq m) in the Katowice                                                                schemes with a variety of retail, service, entertain-
tres while the remaining portion of                  Agglomeration and Nowa Stacja                                                                      ment and F&B options have no vacant space and
the new supply came onto the mar-                    Pruszków (27,000 sq m) in the Warsaw                                                               premises vacated by tenants are quickly taken over
ket through extensions of existing                   Agglomeration. In addition, increas-                               VACANCY RATES, HOWEV-           by new brands. By contrast, shopping centres with
schemes. Alongside upgrades and                      ingly popular mixed-use schemes                                     ER, VARY CONSIDERABLY          high vacancy rates are those where nothing has been
redevelopments, this is one of key                   such as Centrum Praskie Koneser in                                                                 done in the last six months to improve their appeal
market trends in Poland, resulting                   Warsaw are being opened in phas-                                       BY SHOPPING CENTRE          or adapt their offer to a customer profile. This has
from the ageing stock, changing cus-                 es. Several existing shopping cen-                                   AND STRONGLY DEPEND           an adverse effect on a shopping centre’s image in
tomer expectations and ever strong-                  tres have been extended, including                                 ON THE ATTRACTIVENESS           the eyes of customers and results in lower footfall
er competition.                                      Atrium Promenada, Atrium Reduta,
                                                                                                                               OF A RETAIL OFFER        and sales, and more vacant space.

Table of contents / MARKET ANALYSIS. PROSPECTS FOR THE INDUSTRY                                          8
MARKET ANALYSIS
The pace of new shopping                                                                                    THE INTRODUCTION    E-commerce is also expanding at
centre growth is gradually                                                                                                      a rapid pace. All market players
                                                                                                           OF SUNDAY TRADING    are beginning to see more and
slowing, which led to a 20%                                                                                 RESTRICTIONS WAS    more benefits of both online and
decrease in retail supply in                                                                               ONE OF LAST YEAR’S   offline platforms becoming inter-
                                                                                                                                twined and complementing each
2018 compared to the previ-                                                                                MARKET HIGHLIGHTS.   other. The division of consumers
ous year’s level.                                                                                                               into online and offline shoppers
                                                                                                                                is largely irrelevant as they are
                                                                                                                                very often the same consumers.
                          THE INDUSTRY SLOWS DOWN                                                                               The rise of multichannel retailing
                     More than 360,000 sq m of shopping                                                                         and brand new concepts is only
                     centre space is currently under con-                                                                       natural in the modern technolog-
                     struction or has a valid building permit;                                                                  ically advanced world and helps
                     approximately 270,000 sq m of that                                                                         increase customer loyalty.
                     total is expected to be handed over by
                     the end of this year. The largest retail                                                                   ECONOMIC SITUATION
                     scheme underway is Warsaw’s Galeria                                                                        The introduction of Sunday trading re-
                     Młociny (more than 70,000 sq m), which                                                                     strictions was one of last year’s market
                     is scheduled for delivery in April 2019.                                                                   highlights. During the first ten months

                                                                                                                 6%
 Many shopping centre managers and                                THE GROWING ROLE                                              of the new regulations in force, average
 landlords are intensifying their ef-                             OF FOOD COURTS                                                shopping centre footfall was down by
 forts to adapt their offers to growing                           Eating out is not only an alternative                         6% and turnover fell by 2-3% compared
 and changing expectations of Polish                              to eating in, it has become a leisure                         with the same period a year earlier. High
 consumers, reflecting an overall trend                           activity to be enjoyed with family                            household consumption, which remains
 also seen in other countries. Today,                             and friends. What leading fast-food                           the key driver behind Poland’s economic
 a considerable part of our life is spent                         restaurants offer is not enough and                           growth, substantially mitigated the ad-
 in the virtual realm and interperson-                            shopping centres are beginning to                             verse effects of the Sunday trading ban.
 al contacts are increasingly centred                             feature good-quality restaurants
 around emails, text messages, chats                              with waiter service and new F&B                               Poland boasts strong economic fun-
 and video conversations. As consum-                              concepts that go far beyond tradi-                            damentals, thereby attracting global
 ers operate both online and offline,                             tional food courts. New dining zones                          brands. Approximately 30 new brands
 product and destination strategies                               were completed in 2018 at Atrium                              chose to expand into the Polish retail

                                                                                                               2-3%
 should be tailored for both the real                             Promenada, Lublin Plaza and several                           market in 2018. The Irish fashion retailer
 world and the virtual reality. Shopping                          other shopping centres. A new din-                            Primark has also announced its entry
 centres are spaces where to build                                ing concept is also being developed                           into Poland and the opening of its first
 customer-brand relationships, and                                at Galeria Młociny, which is currently                        Polish store at Galeria Młociny in Warsaw
 which are perfect meeting venues.                                under construction..                                          this spring.

Table of contents / MARKET ANALYSIS. PROSPECTS FOR THE INDUSTRY                                     10
MARKET ANALYSIS

   PAWEŁ
                                                                                                             Paradoxically, despite the widespread
                                                                                                             belief that retail is far from being
                                                                                                             the most sought-after sector by inves-

  PARTYKA                                                                                                    tors, 2018 was the second-best year in
                                                                                                             the history of the Polish investment
                                                                                                             market in terms of the retail invest-
             ASSOCIATE, DEPARTMENT                                                                           ment volume.
               OF CAPITAL MARKETS,
              CUSHMAN & WAKEFIELD                                                                                        The years 2019-2020 are set to be a very
                                                                             ARE THE YEARS                               good time for retail investments. Whilst        THE YEARS 2019-2020
                                                                           2019-2020 A GOOD                              the downward trend in retail rates of                   ARE SET TO BE
                                                                                                                         return has slowed, office and logistics
                                                                            TIME TO INVEST?                              yields have compressed considerably.
                                                                                                                                                                             A VERY GOOD TIME
                                                                                                                         Opportunities to acquire prime retail                      FOR RETAIL
                                                                                                                         assets at lower prices than 12 months                   INVESTMENTS
                                                                                                                         ago will therefore exist, but retail yields
                                                                                                                         in Poland are still likely to move in further
                                                                                                                         and to return to their long-term trend
                                                                  In 2018, many players on the Polish                    compared with other sector yields.
                                                                  market asked themselves about the
                                                                  future of traditional retailing in the                 The above is naturally a simplistic state-
                                                                  face of the growing importance of                      ment, because prices of some properties
                                                                  e-commerce.                                            in larger agglomerations or with long-
                                                                                                                         term leases are setting new records.
                                                                  News from the US market - including
                                                                  the acquisition by Brookfield, the larg-                In addition, the market has absorbed
                                                                  est real estate management fund in                     the Sunday trading ban introduced in
                                                                  the world, of GGP, the second largest                  2018. The implications for retail sales
                                                                  owner of shopping centres in the US                    and footfall for shopping centres have
                                                                  for around $ 15 billion - makes us be-                 already been taken on board, so the
                                                                  lieve that greater optimism regarding                  uncertainty that accompanied that
                                                                  the shopping centre sector will per-                   topic in 2018 has become quantifiable
                                                                  meate to other markets.                                - a fact which should positively affect
                                                                                                                         investment decisions.

Table of contents / MARKET ANALYSIS. PROSPECTS FOR THE INDUSTRY                                       12
TRENDS

                                                                                                                                     Expanding shopping functions
                                                                                                                                     with entertainment and places
                                             Paweł Hałabuda, SKIVAK expert
                                                                                                                                     to spend time for families and
                                                                                                                                     friends will be more and more

SHOPPING
                                                                                                                                     noticeable. Although today
                                                                                                                                     there are already many centers
                                                                                                                                     with such facilities, this trend
                                                                                                                                     will become even stronger.

CENTERS                                                                                                                    MOST NEW INVESTMENTS

 MARKET
                                                                                                                             WILL BE BASED ON
                                                                                                                             THE EXPANDING OF
                                                                                                                           EXISTING CENTERS WITH
                                                                                                                               NEW FUNCTIONS.

                                                                                      Shopping centers cease to be only
                                                                                      points of sale and purchase, changing
                                                                                      into places for meetings, engaging
                                                                                      customers, influencing them with
                                                                                      incentives that cannot be replicated
                                                                                      online. Looking at the digital transfor-
                                                                                      mation of commerce and the growing
According to research from Neurohom in 2017,                                          importance of e-commerce channels,
for 88% of respondents, the ideal shopping center                                     shopping centers do not lose their
is one that boosts their mood. Most shopping                                          importance, but they must redefine
center managers are well aware of this. What other                                    the services provided to recipients,
aspects will be important in the context of changing                                  paying more attention to building
customer expectations?                                                                their engagement.

Table of contents / TRENDS. SHOPPING CENTER MARKET                              14
TRENDS
Experts from A.T. Kearney em-
phasizes that shopping centers
of the future are primarily meet-
ing places to engage the commu-                                                                                                                                      Suburban retail parks will also
nities around them. They will                                                                                                                                        focus on creating an offer that
be focused on creating a proper
atmosphere conducive to creating                                                                                                                                     encourages visitors simply to
and maintaining a relationship that                                            he importance of the shopping
                                                                              T                                                                                      spend time by including in their
will strengthen the bond between                                              center offer: restaurant, fitness,
the brand and the consumer in-                                                cinema and entertainment will in-                                                      offer amusement parks, multi-
stead of directly focus on sales.                                             crease. We will observe an increase                                                    plexes, playgrounds, parks and
                                                                              in the percentage share of tenants
                                                                              in this sector.                                                                        gastronomic spaces. Shopping
                          This can be seen today in the                                                                                                              centers will in turn invite brands
                          award-winning European investments. The Austrian Weberzeile center
                          Although the centers are still focused also offers more than just sales.                                                                   previously associated with sub-
                          on their commercial offer, the sales The impressive glass roof provides                                                                    urban trade, e.g. car dealerships.
                          environment is also important.           access to sunlight, the art gallery
                                                                   presents works of local and regional
                          Located in Bordeaux, the small artists, and the youngest can spend
                          Promenade Sainte-Catherine is an time on the largest indoor playground
                          open space that blends in with the in the region.
                          historical part of the city. It combines
                          modern technologies, access to a mo-
                          bile application and a LED screen with                                                                                             THE BORDER BLURS
                          materials that harmonize well with the                                                                                         BETWEEN SHOPPING CENTERS
                          surroundings and refer to the region.
                          Terraces, greenery and fountains are
                                                                                                                                                         AND SUBURBAN RETAIL PARKS
                          conducive to meetings, above all at-
                          tracting consumers who are willing to
                          spend their free time here.
                                                                                         CASE STUDIES                  An equally interesting trend develop-
                                                                                                                       ing in European cities is the combina-
                                                                                                                       tion of galleries and suburban retail
ART GALLERIES                                        DESTINATION 2028                                                  parks. Although historically shopping
                                                                                                                       centers in Western Europe were built
Shopping centers also today focus                    In their vision for the coming years, the leading group of        in cities, focusing on accessibility for
on their cultural offer. Stary Browar                Westfield shopping centers draws a picture of the future          residents, now they are also being
in Poznan or the mentioned Austrian                  shopping galleries. They will be more of a microcities than       built in the suburbs, expanding their
Weberzeile run separate exhibition ar-               the shopping space as we know it, offering a place to relax,      offer. Wrocław's Galeria Bielany fits in
eas in which both world and local works              gardens or personalized messages thanks to AI. The group will     this trend, combining shops, cinema
of art can be seen.                                  introduce the first such solution in London's Westfield Square.   and restaurants.

Table of contents / TRENDS. SHOPPING CENTER MARKET                                                              16
TRENDS
Accessibility is extremely im-                                                                                                        MIXED-USE                 More and more centers will be turn-
portant for European shopping                                                                                                  SPACE- INCREASE                  ing into places not only for shopping,
centers. Providing proper access                                                                                                 IN IMPORTANCE
by car, public transport or bicycle                                                                                                                             including office space, hotels, restau-
is the plan of every investment.                                                                                                                                rants in place of fast food chains, and
                                                                                                                                                                even apartments and access to art.

                          This can be seen both in Poznań's                                                          Western Europe is already a saturated      Due to the saturation of commercial areas and the high
                          Galeria Posnania, where they built                                                         market in terms of retail space, and al-   density of urban agglomerations, new investments are
                          new bicycle paths and bicycle parking                                                      though it still shows an upward trend,     less and less frequent, including large shopping centers.
                          spaces, and in the Ukrainian Forum                                                         it is lower than in Eastern Europe.        Investors more often opt for mixed-use buildings that
                          Lviv gallery.                                                                              Today, 68% of the total area of shop-      combine commercial, business, restaurant, hotel and even
                                                                                                                     ping centers is located in the West of     residential functions.
                          Large shopping centers are being built                                                     Europe.
                          in the suburbs, combining their func-                                                                                            Also in Poland, more and more mixed investments will be
                          tions with retail parks. The centers                                                       The development of shopping centers created, in which the commercial space will be only a part.
                          will slowly move from the dominant                                                         in the West is mainly related to the These include ArtN, EC Powiśle, Browary Warszawskie,
                          sales model based on shops to ser-                                                         growth of the population of the larg- Bohema, Centrum Praskie Koneser. The latter was estab-
                          vices that favor spending time and                                                         est agglomerations. A good example lished on the site of the former Warszawska Wytwórnia
                          building relationships: multiplexes,                                                       is the Norwegian market. Despite the Wódek "Koneser". In addition to entertainment, office and
                          gastronomy, fitness centers, swim-                                                         highest saturation with shopping residential spaces, there are fashion stores, boutiques and
                          ming pools, playgrounds etc.                                                               centers in Europe (921 sq m per 1000 numerous cafes.Both the Centrum Praskie Koneser and the
                                                                                                                     inhabitants), new investments are mentioned Browary Warszawskie or Elektrownia Powiśle dis-
                                                                                                                     still taking place there.             tinguish the prosocial aspect from other mixed-use facilities.
                                                                                                                                                           These objects are easier to fit into the atmosphere and the
                                                                                                                                                           tissue of the city by organizing cultural and entertainment
                                                                                                                                                           events in their area.

                                                                                        CASE STUDIES                                                                                             CASE STUDIES

POLYGONE RIVIERA                                     MAR SHOPPING ALGARVE                                            GELDERLANDPLEIN                                  CITY LIFE
Established in Cagnes-sur-Mer Riviera,               MAR Shopping Algarve - an investment carried out by             An example of mixed-use investment is the        The investment in Milan, the completion of which
housing a multiplex, casino, theater,                Inter IKEA is being developed in the Algarve in Portugal.       ICSC European Shopping Center Awards, lo-        is planned for 2019, is a combination of commer-
huge playground and minizoo, it is                   The planned center will connect the Swedish brand shop          cated in Amsterdam, in the medium-sized          cial, gastronomic and service space as well as res-
a huge center located on the out-                    with a seating and shopping zone. This will create a shop-      Gelderlandplein center. It houses offices, ho-   idences. On the area of over 314,000 sq m there will
skirts of the city. Here the boundary                ping space oriented around one brand, characteristic for        tels and residences for consumers by offering    also be a museum of contemporary art and a park.
between the park and the shopping                    suburban retail parks, but it will also include an offer typ-   a hypermarket and stores combining well-         The project is run by world-renowned designers:
center is blurred.                                   ical of shopping centers.                                       known brands as well as local entrepreneurs.     Zaha Hadid, Arata Isozaki and Daniel Libeskind.

Table of contents / TRENDS. SHOPPING CENTER MARKET                                                            18
TRENDS
                                                                               The combination of technological
                                                                               novelties with the physical world
                                                                               also gives the opportunity to pres-
Consumers are still looking for ex-                                            ent products in a manner that is not
periences that they will not find on-                                          available online, while maintaining
                                                                               a personalized message that e-com-
line. Shopping centers will develop,                                           merce offers. What allows it, among
offering a showroom space or focus-                                            others, are beacons- radio transmit-
                                                                               ters placed in various parts of the                     CASE STUDIES
ing on VR or AR experiences, gami-                                             store. Depending on what the client
fication on mobile platforms, events,                                          looks at, he can immediately receive
                                                                               notifications about the product or see    THE ARCHIVES OF AR
as well as becoming a meeting place                                            its presentation on the ads placed        Clothing brands have successfully
that integrates local communities.                                             in the store.                             adapted AR to create a virtual fitting
                                                                                                                         room. Examples are Timberland and
                                                                               An important function of e-com-           Topshop, using Kinect technology and
                                                                               merce channels, apart from their          special mirrors that put the chosen
                                                                               online availability, is self-service.     clothes on the reflection of the cus-
                                                                               For many modern consumers, it is          tomers looking at them.
                                                                               increasingly important to be able to
                                                                               choose products and finalize trans-
                                                                               actions in the most convenient way        MODERN SHOE STORE
                                                 E-COMMERCE DOESN’T            for them. Can you transfer this           The eobuwie.pl brand has opened a sa-
                                                 STOP THE GROWTH OF            experience to traditional centers?        lon in Poznan's Posnania, which chang-
                                                                               To some extent, the answer are            es the way we buy shoes. Instead of
                                                  SHOPPING CENTERS.            self-service shops, where you can         a standard exposure, several dozen
                                                                               examine things in their real shape        tablets are available, where custom-
                                                                               before buying them, retaining a great     ers choose their product, and after
Retail chains are learning to use                                              deal of shopping freedom.                 accepting they receive a pair to try on
new technologies. Online trading                                                                                         from the warehouse.
not only does not distract con-                                                Additional forms of strengthening
sumers from shopping centers,                                                  sales in physical stores using new
but also gives new analytical tools,                                           technologies is the use of virtual (VR)   SHOPS WITHOUT SERVICE
which allows for better adjustment                                             or extended (AR) reality. An example      The Poznań Bio Family Supermarket is
of advertising campaigns.                                                      are shops where selected products         an example of a shop that has com-
                                                                               can also be moved to any virtual space.   pletely abandoned the employment
A good example of the use of tech-                                                                                       of personnel, thanks to which it can
nology is the intu Victoria Center in                                                                                    operate without interruptions, also
Nottingham, which assesses the age                                                                                       on Sundays and holidays. Customers
and sex of visitors by using the face                                                                                    not only choose the products them-
recognition system to better target                                                                                      selves, but also finalize purchases at
ads on screens.                                                                                                          self-service checkouts.

Table of contents / TRENDS. SHOPPING CENTER MARKET                       20
TRENDS

For the first time in the history of
modern trade, so many generations
actively participate in shopping:
boomers, millenials and Z gen-
eration, with the prospect of the
Alpha generation joining in the next
                                                                                                Due to the aging of societies with
20 years. This affects the need to di-                                                          the increasing activation of seniors,
versify the offer. Examples of activi-                                                          it will also be important to adapt the
                                                                                                space to their needs. This involves not
ties undertaken for this purpose are                                                            only existing communication facili-
numerous playgrounds for children,                                                              ties, such as elevators and ramps, but
                                                                                                also taking into account the space for
the development of new technolo-                                                                rest and stores offering products and
gies and facilities for seniors.                                                                services for this group of consumers.

                                                                                                The center’s approach to serving the
                                                                                                youngest will change in a similar way.
                                                        WIĘKSZA                                 Centers of entertainment and play-
                                                     DYWERSYFIKACJA                             grounds are already being set up in
                                                                                                the shopping malls in Europe, which
                                                       ODBIORCÓW                                activate children and encourage
                                                                                                whole families to spend their free
                                                                                                time there.
                                         Another example is the award-winning Austrian
                                         Europark Salzburg - a large suburban shopping
The return to locality is one of the no- center, despite its size being a place where you can
ticeable directions that the millenni- buy organic products from local farmers.                                                                                            CASE STUDIES
al generation is currently influencing.
More and more often, it will be possible
to find not only multinational corpo-                                                           FITNESS PO ZAKUPACH                                 PLACES OF RESTING AND MEETINGS
rations in shopping centers of every                                                            For customers who care about their shape,           Due to the densification in the cities and the
format, but also local brands and small                                                         shopping centers open up new spaces condu-          aging of societies, shopping centers will also
sellers, presenting themselves both                                                             cive to various forms of activity. In the Finnish   be conducive to resting. The best example is
in traditional stores and in the form                                                           REDI shopping center a climbing wall was cre-       the shopping center and office space locat-
of so-called pop-up stores.                                                                     ated, and visitors to Iso Omena can take advan-     ed in Osaka, Japan, on the roof of which there
                                                                                                tage of the so-called Activity Park.                is a huge garden.

Table of contents / TRENDS. SHOPPING CENTER MARKET                                        22
CHANGES IN THE CUSTOMER BEHAVIOUR

                                                                                                                 WHAT ARE THE SOLUTIONS OFFERED
                                                                                                                 BY THE STORES OF TOMORROW?
                                       Emilia Seweryn, Project Manager, SKIVAK
                                                                                                                    The digitization of tradition-
                                                e.seweryn@skivak.pl                                                 al stores will continue to grow
                                                                                                                    steadily due to the introduction

                       CUST
                                                                                                                    of technological solutions that
                                                                                                                    support sales: although fixed-
                                                                                                                    line stores are developing slow-
                                                                                                                                                                            PURCHASES ARE
                                                                                                                    er than e-commerce, they play                           A COMPLETELY NEW
                                                                                                                    an important role in everyday                           EXPERIENCE FOR

                      OMER
                                                                                                                    consumer choices and shape                              THE CONSUMER
                                                                                                                    the brand's experience.                                 BECAUSE THEY WERE
                                                                                                                                                                            VERY SIMPLIFIED
                                                                                                                                                                            AND DIGITALIZED.

                      EXPER                                                                                          One of the already implemented solutions are
                                                                                                                     self-service checkouts. The are usually present in

                      IENCE
                                                                                                                     large grocery chains or drugstores, where queues
                                                                                                                    are most often set up. In the future, thanks to the
                                                                                                                     Internet of Things, the payment stage will be even
                                                                                                                     more simplified. In a technology-packed store - like
                                                                                                                    Amazon Go - the customer goes out without paying
                                                                                                                    ... at the checkout! The buyer scans the QR code gen-
                                                                                                                    erated in the previously downloaded application to
                                                                                                                    which the card is attached, puts the things in the
                                                                                                                    shopping cart and leaves the store, and the payment
                                                                                                                     is charged from the account automatically.

Table of contents / CHANGES IN THE CUSTOMER BEHAVIOUR. CUSTOMER EXPERIENCE                                 24
CHANGES IN THE CUSTOMER BEHAVIOUR
                                                                                                                                                                          Investments of the future
                                                                                                                                                                         - in which technologies
                                                                                                                                                                         will the seller invest until
                                                                                                                                                                         2021 in order to improve
                                                                 Intelligent fitting rooms can                   Applications based on micro-carriers                     shopping experience?
                                                                 be a simplification — the sys-                  - beacons — help in informing incom-
                                                                 tem recognizes the label of                      ing customers about promotions,                             7% in mobile points of
                                                                                                                                                                             8
                                                                 any item in the fitting room                    and - like a lighthouse - they facil-                       sale - places to scan and
                                                                 with RFID, and the interactive                   itate locating, in this case, a spe-                       accept payments any-
                                                                 display on the touch screen                     cific product on the shelf. These                           where in the store;
                                                                 wall, for example on a smart                     possibilities were used by Galeria
                                                                 mirror, allows you to finalize                   Katowicka, implementing a mul-                             8
                                                                                                                                                                              6% in handheld comput-
                                                                 your purchase without wast-                     ti-tasking mobile application that                          ers with barcode scan-
                                                                 ing time and nerves in queues.                  combines a loyalty program, digital                         ners to read the price and
             ŻABKA IS ALREADY                                                                                    coupons for stores and restaurants                          availability of the product;
                                                                                                                 and precise personal navigation on
                 IMPLEMENTING                                                                                    a smartphone.                                                5% in tablets for
                                                                                                                                                                             8
          SELF-SERVICE STORES                                                                                                                                                more precise product
                WITH THE USE OF                                                                                                                                              information;
       ARTIFICIAL INTELLIGENCE.                                                                                  In contrast to technology there are
                                                                 Customers value fast and                                                                                    7 8% in self-service kiosks
             THEY HAVE SIGNED                                    precise information about                       global consumer trends indicating that                       providing buyers with the
                A COOPERATION                                    products — thanks to RFID                       ethical brands will be eagerly chosen.                       information on prices and
           AGREEMENT WITH AN                                     technology - implemented                        More and more companies are building                        availability.
                                                                                                                 their image as companies that care
           AMERICAN START-UP                                     in the British River Island
                                                                 chain of stores, employees,                     about the environment and are social-
                                                                                                                                                                         (Source: Zebra - 2017 Retail Vision Study)

             AIFI. THE NEW SALE                                  using portable label scan-                      ly responsible. Shops that will do it ad-
          CONCEPT IS TO ALLOW                                    ners, can reliably respond                      equately will note an increase in sales,

                                                                                                                                                                                          86%
         FOR KEEPING BUSINESS                                    to customer inquiries in the                    which is why in 2019 more brands will
                                                                 store. The network of Zara                      invest in "moral marketing".
        OPEN 24 HOURS PER DAY                                    clothing stores also uses
          AND 7 DAYS PER WEEK.
                                                                                                                 (Source: Brandwatch, The Complete Marketer's Guide
                                                                                                                 to 2019)
                                                                 RFID. The information about
                                                                 the availability of products                    This attitude is also associated with
                                                                 is up to date and the store                     one of the main consumer trends
                                                                 avoids shortages that could                     - Rethink Plastic: changing habits
                                                                 disappoint customers and                        aimed at avoiding plastics.
                                                                 discourage them from com-                       (Source: Mintel report - Global Consumer Trends 2019)
                                                                 ing back.
                                                                 (Source: IoT for the Consumer Goods and
                                                                 Retail Businesses: What are the benefits
                                                                 and where should one start?)

Table of contents / CHANGES IN THE CUSTOMER BEHAVIOUR. CUSTOMER EXPERIENCE                                  26
CHANGES IN THE CUSTOMER BEHAVIOUR
                                                                                                                                                            SHOPPING DECISIONS
                                                                                                                                                            The constantly growing shopping
                                                                                                                                                            trend associated with tablets and
                                                                                                               F-commerce is growing in                     smartphones is in turn seeking
                                                                                                               strength. Does this mean                     consumers' convenience, which is
                                                                                                                                                            expressed not only in the possi-
                                             Paweł Hałabuda, SKIVAK expert                                     that customers give up                       bility of quick (and without leaving

                       HOW
                                                                                                               shopping at traditional                      home) shopping.
                                                                                                                                                                                                       ANOTHER INCREASE
                                                                                                               stores for online shopping?                  This comfort is also reflected in easier   IN THE NUMBER
                                                                                                               How does the customer                        access to inspirations, trends, price      OF BUYERS IN
                                                                                                               journey look now?
                                                                                                                                                            comparison websites, online catalogs
                                                                                                                                                            and reviews. What does this tell us
                                                                                                                                                                                                       PHYSICAL STORES
                                                                                                                                                            about the contemporary consumer?           IS CONNECTED
                                                                                                                                                                                                       WITH LOOKING

                        DO
                                                                                                               According to the PwC report "Consumer        Today he does not see the need to dis-
                                                                                                               insights about habits and behavior           tinguish the physical and online world.    FOR SENSORY
                                                                                                               2018", in which the data from the six pre-   When shopping, he eagerly searches
                                                                                                               vious editions are summarized with the       for products on the Internet, using
                                                                                                                                                                                                       AND SOCIAL
                                                                                                               latest results, 44% of the respondents       the help of search engines, influenc-      EXPERIENCES
                                                                                                               (this is more than in 2013) still shop in    ers, blogs or official brand stores,
                                                                                                               traditional stores and after a slight de-    while still visiting traditional stores.

                      POLES
                                                                                                               crease this result remains stable. The        He consciously compares offers, and
                                                                                                               same study also shows a decrease in           buys where it is more affordable. For
                                                                                                               the number of purchases made using            brands, finalizing online shopping
                                                                                                               online desktops compared to 2013, an         does not have to be a negative phe-
                                                                                                               increase in purchases through tab-            nomenon. On the contrary, it gives
                                                                                                               lets (already 12%) and smartphones           them the possibility to arrange stores
                                                                                                               (currently it is 17%).                       differently, for example by reducing

                      BUY?
                                                                                                                                                            the range and adding new solutions
                                                                                                               What does this mean? After the un-           that engage the consumer's senses.
                                                                                                               doubted fascination of consumers             Sensory marketing, VR / AR, video or
                                                                                                               with online channels, promotions and         virtual fitting rooms are just some
                                                                                                               easier shopping path, customers return       of the possibilities. Physical stores
                                                                                                               to physical stores, where they can still     will more and more often be respon-
                                                                                                               experience more than online stores           sible for building and maintaining
                                                                                                               offer them. The authors of the afore-         brand-to-consumer relationships by
                                                                                                               mentioned PwC report reached a similar       delivering impressions not available
                                                                                                               conclusion, claiming that the increase       on websites, but the final transac-
                                                                                                               in the number of buyers in traditional       tions will be made on the network
                                                                                                               stores is related to the search for sen-     - in this way, both sales channels
                                                                                                               sory and social experiences.                 will be combined.

Table of contents / CHANGES IN THE CUSTOMER BEHAVIOUR. HOW DO POLES BUY?                                 28
CHANGES IN THE CUSTOMER BEHAVIOUR

                               POLES SPEND ON BROWSING
                                                                            55.5% of sellers felt the increase in      THE CHANGE
                                                                                                                       IN SHOPPING
                                                                            sales. The conversion results, which is                                            Recently, however, one can see the
                               THE INTERNET ON AVERAGE                      the indicator responsible for the cus-                                             desire to transform streets into pe-
                                2 HOURS 6 MINUTES DAILY.                    tomers who have gone through the en-
                                                                            tire sales stage: from product selection
                                                                                                                       HABITS IS ALSO                          destrian-friendly streets. Progressing
                                                                                                                                                               revitalizations (eg ongoing recon-
                                    IT IS 766,5 HOURS                       to purchase, were also higher.             INFLUENCED BY                           struction of Święty Marcin Street in
                                  A YEAR (GEMIUS/PBI
                                SURVEY, FEBRUARY 2018)                       ECONOMIC SITUATION                        ADVERTISEMENTS                          Poznań and Piotrkowska Street in
                                                                                                                                                               Łódź) and limiting car traffic in the
                                                                            How does this situation affect shop-       FOR WHICH                               city center are conducive to the cre-

                                                                                                                       EXPENDITURES
                                                                            ping centers? It turns out that despite                                            ation of new restaurant gardens and
                          TRADE-FREE SUNDAYS                                the introduction of Sunday without                                                 the return of consumers to the former
                         After initial concerns related to the
                          introduction of trade-free Sundays,
                                                                            trade, they enjoy more visits and retail
                                                                            sales than a year ago when the ban did
                                                                                                                       INCREASERD                              shopping streets.

                          it turns out that the Poles have adapt-           not apply. PropertyNews.pl states af-      BY ALMOST
                          ed quite quickly to the new situation,
                         according to Crédit Agricole experts.
                                                                            ter PRCH and EY that only in June this
                                                                            year the retail sales growth was 8.2%      9% IN 2018.                                     This trend is however used to a larger ex-
                                                                                                                                                                       tent by restaurants. In Warsaw itself, where
                         Although in Q2 2018 the sales dynam-               year-on-year, which is a significant                                                       the rents on the shopping streets are also
                          ics decreased in traditional stores               increase compared to the average of                                                        the highest in Poland, the restaurants lead
                         affected by the ban, the situation is              2012-2017, amounting to 3.2%.              BACK TO THE ROOTS-                              the way. According to the research compa-
                          slowly returning to normal and sales                                                         THE RENAISSANCE OF                              ny CBRE, this type of points account for as
                          decreases are currently lower, and ex- According to the experts from the                     TRADE STREETS?                                  much as 35% of shopping street tenants in
                          perts predict that ultimately this factor PRCH and EY report on the social and               Although, undoubtedly, the stores               the capital, while fashion stores are 28%, and
                         will not be significant.                   economic importance of the develop-                of international and luxury brands              services only 10% of tenants.
                                                                    ment of retail chains in Poland, this              are present on Polish shopping
                         This is due to the fact that consum- is due to the good response of shop-                     streets, their share in comparison to                    This situation is re-
                          ers have adapted to the restrictions ping centers to consumer expecta-                       dining venues is noticeably smaller.                     versed in Western
                         associated with the new regulations tions. In this type of buildings there                    Companies are still deciding on prov-                    countries, where large
                         and plan their purchases on other are more food courts, rest zones, and                       en formats, such as shopping centers                     brands and luxury
                          days. Some consumers, on the other also various events are organized.                        and department stores, and recently                      brands use the po-
                          hand, buy on the Internet on Sundays Thanks to that shopping centers are                     also mixed-use spaces. This is part-                     tential of commercial
                         - this applies to, for example, consumer no longer just a shopping place, but                 ly due to spatial conditions - until                     streets. However, this
                          electronics and household applianc- also an alternative to spending time                     recently Polish cities were modern-                      may also be due to
                          es, whose sales dynamics in tradi- with family or friends.                                   ized mainly for drivers, which made                      the density of cities in
                         tional stores have dropped the most                                                           the streets less pedestrian-friendly,                    Western Europe that
                          due to Sunday offs.                       As you can see, not only consumers,                and trade gradually escaped to the                       hamper the emer-
                                                                    but also retail chains are gradually               emerging shopping centers.                               gence of new facilities
                         According to Traffictrends, mobile adapting to Sunday without trade.                                                                                   and the saturation
                          channels gained especially at the be- Shopping centers enjoy growing popu-                   The second factor was the desire to                      of existing ones.
                          ginning of changes, when retail sales larity and despite the slight decrease                 compete in the same space - so the
                          in physical stores suffered the most. in total sales, they have been record-                 tenants decided on locations where
                          During this period (Q2 2018) traffic in ing the highest increase in retail sales             brands from the same segment al-
                          online stores increased by 66% and for several years.                                        ready had their branches.

Table of contents / CHANGES IN THE CUSTOMER BEHAVIOUR. HOW DO POLES BUY?                                        30
CHANGES IN THE CUSTOMER BEHAVIOUR
                               SHOPPING STREETS CAN
                            DEFINITELY BE A COMPETITIVE
                           SPACE FOR TRADE AND SERVICES.         Deloitte experts argue that to meet                                              How can digital be used in practice?
                             THE DYNAMIC DEVELOPMENT             the demands of the today’s client, it is                                         A good example is the eobuwie.pl
                              OF RESTAURANTS ON SUCH             better to focus on engagement, build-                                            store opened in August 2018 in the
                           STREETS AS NOWY ŚWIAT STREET          ing relationships and facilitating the                                           Posnania shopping center. It com-
                                                                 purchasing process. Online stores not                                            bines the convenience of choosing an
                              AND ZBAWICIEL SQUARE IN            only offer quick and easy shopping,                                              online product with on-site availability
                              WARSAW PROVE THAT BOTH             but they also help collect data about                                            or a quick, free collection of bought
                              THE LOCALS AND TOURISTS            users, such as their preferences, to                                             shoes at a traditional store. There
                           WOULD LIKE TO USE SUCH OFFER.         effectively use them in building sales                                           are several dozen tablets available
                                                                 strategies, also in traditional depart-                                          to customers, and the inspirations of
                                                                 ments. Retailers must understand                                                 available brands are displayed on the
                          Together with the progressive revital- how to combine store and online of-                                              screens. The store also has self-ser-
                          ization of urban space and the resto- fers to ensure customer travel.                                                   vice kiosks where you can pick up the
                          ration of pedestrian streets, we will                                                                                   order yourself.
                          certainly see more investments of This is due to the fact that modern
                          this type among the brands related clients use different channels before                                                The example of the eobuwie.pl brand
                          to trade and services.                 purchasing. They can simultaneously                                              shows that it is possible to transform
                                                                 browse online inspirations and cata-                                             a traditional shoe store into a mod-
                                                                 logs, eventually trying on and buy-           It is important to maintain the    ern, digitized store, where the ease of
                          PHYSICAL STORE                         ing a product in a physical store, or         relationship with the consum-      choice and speed of service comple-
                          IN A DIGITAL WAY                       make a decision by visiting stores in         er and his willingness to buy,     ment the possibility of picking up pur-
                          As Deloitte experts state in the re- shopping centers while purchasing at                                               chases on-site at a traditional store.
                          port Retail360 / Connected Stores. home, via the Internet.
                                                                                                               which will end with sales.
                          Transforming store fleet through tech-                                               For this purpose, physical
                          nology, modern stores have to com-                                                   stores can introduce elec-
                          bine the advantages of traditional                                                   tronic devices that will enrich
                          departments with available websites.                                                 or facilitate browsing offline
                          Brands that choose to blur borders
                          between online and offline reach more
                                                                                                               products in a traditional store,
                          customers. In addition, the omnichan-                                                offering different sensations
                          nel consumers spend twice as much                                                    than other brands.
                          on those who do shopping either in
                          online stores or on-line.

Table of contents / CHANGES IN THE CUSTOMER BEHAVIOUR. HOW DO POLES BUY?                                 32
UNDER THE MAGNIFYING GLASS

                                                                                                           WOJCIECH                       Changes in consumer behavior, the
                                                                                                                                          growing role of e-commerce and new
                                                                                                                                          technologies, a completely new cus-

                                                                                                            KNAWA
  CHALL
                                                                                                                                          tomer journey path - it seems that the
                                                                                                                                          shopping center industry is perfectly
                                                                                                                                          prepared for all these challenges.

                                                                                                                                          What is the future for shopping centers
                                                                                                                                          in Poland?
                                                                                                           HEAD OF PROPERTY MANAGEMENT,   From our perspective as the largest
                                                                                                                     EPP BOARD

  ENGES
                                                                                                                                          owner of shopping centers in Poland,
                                                                                                                                          the country is undoubtedly one of the
                                                                                                                                          most attractive and potentially lucra-
                                                                                                                                          tive European markets.

                                                                                                                                          This is due to the consistent growth
                                                                                                                                          in consumer spending as well as the

 FOR THE
                                                                                                                                          ever-increasing role of shopping
                                                                                                                                          centers themselves. In Poland, unlike
                                                                                                                                          in many countries, shopping centers
                                                                                                                                          are seen not only as a place to shop,
                                                                                                                                          but a space where people are happy to
                                                                                                                                          spend their free time. In addition, the
                                                                                                                                          attractiveness of the domestic Polish

INDUSTRY
                                                                                                                                          shopping mall market is due to the fact
                                                                                                                                          that there are virtually no high streets
                                                                                                                                          in Poland, so most purchases are made
                                                                                                                                          in shopping centers. The saturation of
                                                                                                                                          retail space is much smaller in Poland
                                                                                                                                          than in other Western European mar-
                                                                                                                                          kets so there is still room to grow as
                                                                                                                                          we meet the expectations of modern
                                                                                                                                          consumers.

                                                                                                                                          Is 2019-2020 a good time for
                                                                                                                                          investments?
                                                                                                                                          Definitely yes. Poland is one of the
Changes in consumer behavior, the growing role                                                                                            most attractive investment desti-
of e-commerce and new technologies, a com-                                                                                                nations in Europe, with GDP growth
pletely new customer journey path - it seems that                                                                                         exceeding the average of the
the shopping center industry is perfectly prepared                                                                                        European Union countries in recent
for all these aspects.                                                                                                                    years. According to experts, from the

Table of contents / UNDER THE MAGNIFYING GLASS. CHALLENGES FOR THE INDUSTRY                          34
UNDER THE MAGNIFYING GLASS
beginning of 2018 consumer spending                 More and more often in order to                              individual approach and therefore the   a situation in which the consum-
in Poland increased 4.6%, and retail                Respond to the needs of consumers,                           marketing strategies we build each      er tries the product in a traditional
sales went up 6%. Poland attracts an                shopping center owners have their          THE INTEGRATION   time are preceded by in-depth ana-      store and then buys online, is a phe-
increasing number of investors every                own IT departments which create            OF TRADITIONAL    lyzes, including sociological research, nomenon that occurs to a greater or
year thanks to the low unemployment                 apps for the customers that do things                        catchment analysis and gathering        lesser extent throughout the world.
rate, and a skilled workforce combined              such as facilitating moving around
                                                                                               SALES WITH        opinions of market experts or resi-     However, I would be far from over-
with relatively low wages and rents.                the center, searching for current pro-     THE INTERNET      dents of the area. On the basis of the  estimating its role and perceiving
Strong social programs and stable                   motions or savings on their favorite       AND THE MOBILE    information obtained, we prepare        it in terms of a threat to traditional
economic conditions translate into                  products. Also, the importance of          CHANNEL IS        detailed communication plans, the       shopping centers. Although we have
high investment potential and is driv-              so-called big data is growing every                          priority of which is always to inform   been observing the phenomenon of
ing the Polish commercial market to                 year. In the largest shopping centers
                                                                                               THE BIGGEST       about the offer of our centers and      showroom for several years, in which
growth rates of 6-7% annually. There is             in the world, it is already common to      CHALLENGE         tenants and to show why they stand      the premises serve as showrooms, the
no indication the situation will change             use geolocation on a micro scale. The      THAT BOTH THE     out from the competition.               popularity of the already mentioned
in the near future.                                 customer who enters the center and         TENANTS AND                                               click & collect service is constantly
                                                    passes the stores receives informa-                          Do you think that there will be a rev- growing. Many consumers are ready
How has communication with clients                  tion about promotions on a regular ba-
                                                                                               THE OWNERS        olution in the near future in terms of to pay even higher prices than in the
changed in the last two years? How do               sis, and in the case of more advanced      OF SHOPPING       consumer behavior, ways of reaching online store in exchange for the op-
you think it will continue to change?               systems, even individual offers.           CENTERS           out, and the identity of brands such portunity to test the goods, consult
As in most areas of life, what has had                                                         MUST MEET.        as shopping malls?                      professionals, or immediately collect
the greatest impact on the way shop-                What is currently the core of your                           I do not expect any major revolution the purchased product.
ping centers communicate with cus-                  marketing activities? What will it be                        in consumer behavior, apart from the
tomers over the past two years was the              in 2019?                                                     further strengthening of the phenom- As I have already mentioned, from the
dynamic development of technology                   All marketing activities that we con-                        enon of their migration between dif- perspective of retail chains, the key to
and related tools. If I had to mention              duct for our shopping centers are                            ferent shopping channels. Therefore, success is the effective combination
one element which sets the direction                fully thought out and adapted to the                         the integration of traditional sales of online and offline channels into one
for the development shopping malls’                 specifics and character of a given                           with the Internet and the mobile integrated sales channel. Following
communication with their clients today              project, as well as the needs and ex-                        channel is the biggest challenge that this trend, shopping center owners
it would undoubtedly be personaliza-                pectations of its clients. We focus on                       both the tenants and the owners of and managers should strive to pro-
tion and the closely-related phenome-               integrated communication that takes                          shopping centers must meet.             vide their business partners with an
non of "omnichannel", i.e. multi-channel            into account various types of inno-                                                                  optimal operating environment, in-
sales. The contemporary consumer                    vative solutions and services, using,                        From the point of view of both, the key cluding all existing sales channels.
smoothly migrates between different                 among other things, mobile devices,                          to success is a skillful combination of This applies to both architectural
shopping channels. This is the triumph              as well as extensive activities in tra-                      online and offline channels - not only solutions, under which is the space
of the holy click & collect service, that           ditional and social media, or activities                     in the context of the solutions and for convenient collection points, as
is, online shopping with personal collec-           directed to local communities.                               services offered, but also communi- well as strategic location of individ-
tion of orders at a physical store. The                                                                          cation activities.                      ual facilities on main roads and near
key to success today is primarily reach-            We attach great importance to pro-                                                                   public transport stops.
ing the customer through the channel                sales activities that are appreciated                        In the context of the reverse ROPO -
chosen by them and the message that                 by our customers. It is difficult for me                     what are the chances and threats for
interests them. Shopping needs to be                to distinguish one type of marketing                         the shopping center?
convenient, fast and possible to imple-             activities on which we concentrate                           Can we still talk about the effect of
ment anywhere, anytime.                             all our projects. We believe in an                           a reversed ROPO? Reversed ROPO,

Table of contents / UNDER THE MAGNIFYING GLASS. CHALLENGES FOR THE INDUSTRY                               36
UNDER THE MAGNIFYING GLASS

    MONIKA                                                                                                     The portfolio of brands will change,
                                                                                                               but for now there is no expectation
                                                                                                               of intensive growth of the premium
                                                                                                                                                           buy shoes from any place
                                                                                                                                                           perfectly matched to our
                                                                                                                                                           needs. Such facilities will

    OLEJNIK-
                                                                                                               segment, let alone luxury brands. On        create a new face of trade.
                                                                                                               the contrary, the Primark network will
                                                                                                               enter the Polish market, because so         Is 2019-2020 a good
                                                                                                               far this price level is the most popular    time for investments?

 -OKUNIEWSKA
                                                                                                               in Poland.                                  Only in well-proven locations
                                                                                                                                                           and objects which are recog-
                                                                                                                                                           nizable on the market and
                                                                                                               Shopping centers must                       have an already established
                                                                                                               also focus on the inter-                    position. Today, you should
                                 REGIONAL MARKETING                                                            esting arrangements                         invest in raising standards,
                                                                                                                                                           developing an additional of-
                                 DIRECTOR (CEE REGION),
                                  MULTI CORPORATION                                                            of space and comfort                        fer, but also a unique set of
                                                                                                               of customers. I think                       tenants. It is worth looking
                                                                                                                                                           for solutions that will make
                                                                                                               that the Gdańsk Forum                       us stand out on the market.
                          What is the future before shopping                                                   opened this year is                         New objects will surely be
                          centers in Poland?                                                                                                               created anyway, but not with
                          I think that shopping centers will                                                   a place where clients                       such intensity as in the last
                          reformat, and this is already hap-                                                   pay attention to the                        10 years.
                          pening. Typical shopping functions
                          are increasingly supplemented with                                                   unique atmosphere,
                          entertainment and well-arranged res-                                                 enjoying the pleasure
                          taurant zones. There will be much less
                          new facilities, because the market has                    UNFORTUNATELY, THE         of staying in it.
                          its limitations, and extensions in well-             ENTERTAINMENT OFFER IN THE
                          known, well-established locations will                CENTERS IS QUITE LIMITED SO    Another important area is new tech-
                          serve the introduction of additional                                                 nologies, because the generation of
                          functions and expanding the com-
                                                                                 FAR, AND THE RESTAURANT       today's teenagers lives in the virtual
                          mercial offer. Shopping centers will                ZONES REQUIRE REARRANGEMENT.     world of shopping and entertainment.
                          change in the so-called social media                   WE SEE THAT THE AVERAGE       We will have smart clothes and shoes
                          centers, as one of the popular objects               CLIENT OF SHOPPING CENTERS      fitting rooms, interactive mirrors or
                          on the map of Warsaw has recently                                                    tailor made shopping offers that we
                          been named. This shows the direction
                                                                                  DOES NOT WANT TO EAT IN      will get on a mobile phone. A great ex-
                          in which we are going. Customers will                  EXCLUSIVE RESTAURANTS         ample is the eobuwie.pl brand, which
                          want to do quick shopping in a limit-                 YET, BUT IS LOOKING FOR NEW,   is well ahead of the market in this area.
                          ed and well-organized space that will                    INTERESTING FORMATS.        The Future Store in Magnolia Park are
                          not require long walks in shopping                                                   shoes displayed on the screens, not
                          arcades, in order to entertain them-                                                 on the shelves. Besides, by scanning
                          selves as soon as possible.                                                          the foot in a special system, we can

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UNDER THE MAGNIFYING GLASS
How has the way of communicating   The share of mobile marketing in the                                       It is particularly exciting for me that,    In the context of the reverse ROPO -
with the client changed in the last two
                                   overall communication plans is also                                        next to the very young Forum Gdansk,        what are the chances and threats for
years? How do you think it will contin-
                                   growing and this trend will continue to                                    we are responsible for the center           the shopping center? Can we still talk
ue to change?                      develop. What, unfortunately, can be                                       with an established position, which         about the effect of an inverted ROPO?
Changes in the way of communicatingnoticed, marketing budgets are still                  IT IS WORTH          is Magnolia Park. It is located on a very
with shopping center clients in recent
                                   too small and we cannot compete with                  NOTING THAT THE      demanding Wrocław market. Next
years are quite significant. Attention
                                   small funds against the wealthy on-
is definitely focused on the internet
                                   line budgets. It is also worth paying
                                                                                         TRADITIONAL RADIO    year, we will focus our efforts on mak-
                                                                                                              ing Magnolia the favorite shopping
                                                                                                                                                                      I think that both sales channels
and the world of new technologies, at
                                   attention to the need to build rela-                  ADVERTISEMENT        center for the residents of Wrocław                     will complement each other.
the expense of popular billboards or
                                   tionships in local communities - here                 DOES NOT LOSE        and the region.                                         Not everyone, regardless of age,
citylights.                        and now. And this is not about spon-                  ITS STRENGTH.                                                                will transfer their shopping to
                                   sorship of a basketball team, because                                      Do you think that in the near future
                                                                                         COMMUNICATION
Today, large-format ads on major in the long run nobody will remember
                                                                                         SHOULD BE STRICTLY
                                                                                                              there will be a revolution in the field                 the internet or opt out of them
city streets are just a complement about it.                                                                  of consumer behavior, ways of reaching
or an accent in the entire cam-                                                          PERSONALIZED AND     out, but also the identity of brands such               at all. It is already evident today
paign plan. There still are cam-        What is currently the core                       PRECISELY AIMED      as shopping malls?                                      that every industry has its own
paigns in the style of "spring is       of your marketing activities?                                         I do not expect a revolution because
coming", which in my opinion            What will it be in 2019?
                                                                                         AT ITS RECIPIENT.    we have experienced it relatively re-                   shopping specifics, and certain-
are not effective. We should also       Strategically - we strive to be more                                  cently. What I mean is the Internet.                    ly some stores will play the role
depart from creations based on          precise, carefully analyzing the tools                                The greatest challenge for managers
stock photographs, because these        and channels of our marketing activi-                                 of shopping centers will be to make                     of showrooms, reducing the ex-
are completely lost in the flood        ties. We start working with a platform                                good use of the potential that the                      isting space.
of content and numerous stimuli         that processes customer data, and                                     Internet brings. On the one hand, it
from the outside.                       this is a huge field of knowledge that                                gives us the unlimited amount of pos-
                                        needs to be well used, perhaps signif-                                sibilities in the area of marketing or      The coming years will show, howev-
It is worth noting that the traditional icantly modifying existing activities.                                communication in general, but on the        er, which customer behavior in this
radio advertisement does not lose its                         Tactically - Forum Gdańsk, which was            other hand it creates a certain amount      area will prove to be a lasting trend,
strength. Communication should be                             a spectacular success after opening             of luxury. Only with a good knowledge       or even cause a significant change
strictly personalized and precisely                           in May this year, remains a challenge           of our clients' expectations and quick-     in previous habits. The pricing pol-
aimed at its recipient.                                       for us. Now the time has come for ef-           ly responding to changes, we will be        icy will also be important, because
Today we know more and more about                             fective sales support activities, with          able to effectively use it. In addition,    today bargains and promotions are
customers' expectations, we try to                            high visibility of this important place         it should be remembered that com-           almost always present in the cal-
work with CRM and create such a mes-                          on the Tri-City map of commercial               petition is not just about shopping         endar, at any time of the year, and
sage. We know that Polish consumers                           facilities. We want to attract even             centers. Online stores are also an          in a moment they will stop anyone
buy when they need something and                              more tourists, and we know from our             important player. In my opinion, all        from getting excited. In general, we
not during the sale of new collections.                       research that they are happy to visit           the loyalty programs do not seem to         observe the primacy of price over
That is why it is worth creating shop-                        the Forum.                                      be much in the long run. Subsequent         quality in Polish commerce.
ping needs, meeting them. Hence the                                                                           applications, points and rewards
popularity of bloggers and influenc-                                                                          work very briefly. And we should build      The interview conducted in October 2018
ers in various communication chan-                                                                            a long-term identity of the shopping
nels, media coverage, but also native                                                                         center brand - act and respond to the
marketing.                                                                                                    real needs of customers.

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UNDER THE MAGNIFYING GLASS
                                                                                                                      THE SHOPPING CENTERS OF
                                                                                                                      THE KLÉPIERRE GROUP HAVE
                                                                                                                      BEEN ACTIVELY RUNNING
                                                                                                                      FACEBOOK FAN PAGES, WHERE
                                                                              Every day we use smartphones and        WE NOT ONLY INFORM ABOUT
                                                                              social media not only to maintain re-   NEWS AND COMMUNICATE

             ANNA
                                                                              lationships with friends, but also to
                                                                              look for information or inspiration.
                                                                                                                      THE LATEST TRENDS, BUT
                                                                              It is a convenient and fast form of     WE ALSO RESPOND TO
                                                                                                                      MESSAGES SENT TO US VIA

            KOSACZ
                                                                              contact. Following the consumer,
                                                                              we have also moved to the digital       THE DEDICATED JUSTASK
                                                                              channels. The shopping centers of
                                                                              the Klépierre group have been ac-
                                                                                                                      SERVICE WITHIN AN HOUR.
                                                                              tively running Facebook fan pag-
                                                                              es, where we not only inform about
                            MARKETING                                         news and communicate the latest
                             DIRECTOR,                                        trends, but we also respond to mes-
                            KLÉPIERRE                                         sages sent to us via the dedicated
                                                                              JustAsk service within an hour. We
                                                                              have also launched three profiles on
                                                                              Instagram, where we present styli-
           Recently, we have seen sig-                                        zations, new products, interesting
           nificant changes in commu-                                         arrangements and contests.
                                                                                                                      The key role in the success of           is cooperation with Traficar and the
           nication between a client and                                                                              Klépierre shopping centers is the        possibility of renting cars for min-
           a shopping center. The reason                                                                              thoughtful and consistent market-        utes directly from the center or the
                                                                                                                      ing based on the Let’s Play® crea-       recently opened Poland’s the first
           is simple and is associated with
                                                                                              THE KEY ROLE            tive concept. It has two dimensions:     self-service Motoride motorcycle
           the fact that most of us have                                                      IN THE SUCCESS
                                                                                                                      first- emotional, consists in creating   rental company in Sadyba Best Mall.
                                                                                                                      spaces that provide positive emo-        Consumers buying in the smart style
           long been functioning in the                                                       OF KLÉPIERRE            tions, because Klépierre centers of-     will always look for information and
           digital world.                                                                     SHOPPING CENTERS        fer shopping and moments full of joy     the most favorable price. Reversed
                                                                                                                      and fun; the second level is pragmatic   ROPO is a phenomenon widely com-
                                                                                              IS THE THOUGHTFUL       and is related to the space. Klépierre   mented on in trade. A huge advan-
                                                                                              AND CONSISTENT          also focuses on synergy with tenants     tage of our galleries, however, is the
                                                                                              MARKETING BASED         in marketing activities. We organ-       unique purchase offer of partners
                                                                                              ON THE LET’S PLAY®      ize promotional campaigns, events        and numerous, jointly organized pro-
                                                                                                                      and meetings with influencers in         motions that make customers make
                                                                                              CREATIVE CONCEPT.       cooperation with the brands in the       purchasing decisions primarily on the
                                                                                                                      center. We also focus on the devel-      spot, in the center, and not later, in
                                                                                                                      opment of new services. An example       the online store.

Table of contents / UNDER THE MAGNIFYING GLASS. CHALLENGES FOR THE INDUSTRY                                    42
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