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Culture, leisure:traffic generator?

Not only are many retailers curating their space, carefully editing themerchandise selections available to shoppers, but shopping centres andretail environments are embracing cultural and commercial opportunities.

This merger of culture, leisure and entertainment in retail spaces isplaying an increasing role in enhancing the shopping experience. Itsimportance can be seen in the money now invested in public spaces andtheir use as a differentiator, distracting passers-by from the functionality ofwhy they are there.

So how can retail environments be transformed into something whichboth gives visitors more from a visit but also encourages buying, whiledelivering a tangible return for retailers and developers?

We’ve talked to four of you who shared with ‘MORE Vision’ their view in anexclusive interview - Together with key data, useful links and must-see video,it makes the third issue of MORE Vision.

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

MORE+ Vision n°3November 2011

• The trend briefing • Interviews:

Lord CultureBluewaterPortlandKaDeWeLend LeaseWestfieldLand SecuritiesCushman & Wakefield

• What is MORE+ Vision?• What is MAPIC?

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

Where does the trend come from ?*Promotional events have long been used as a hook to attract visitors but customers nowdemand more, electing not to be sold to but instead welcoming the opportunities tolearn, share and discover. Shopping environments are in a unique position to provideevents and spaces which allow interaction with the consumer and link these activities tothe tenants and to the brand values of the centre.Above all, people want convenience and they want differentiation. Whether a communalexperience for friends or family together in a shopping environment, or something tooccupy children (or men shopping reluctantly!), they value distractions from the norm andthey enjoy receiving something more than simple material things. So where a space canprovide them with a good experience or a new skill or knowledge, it also adds to theirbrand loyalty and increases their dwell.In addition, shoppers can connect to their new environments and to the home by laptop,hand-held tablets and smart phones, opening up an enormous range of opportunities tointeract with their surroundings.Environments which can capture this sense of exploration and make it part of their ownbrand offering will create a loyal and regular customer base, enhancing the performanceof that space for the retailers within it.

These opportunities include:1 Bringing cultural awareness to the masses

2 Mixing uses

3 Culture intrinsic to the retail offer

4 Pop-up culture

The trend briefing

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights

and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

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Taking a visit to the shops to beyond simpleconsumerism, cultural events can increase footfall,bring in new potential consumers and create a‘feel good’ factor for visitors. Such events can pro-vide the mainstream with access to art and culturewithin a familiar environment and are often usedto engage the local community. This aligns theshopping centre with its location and catchmentand creates differentiation, while well targetedcampaigns should also tie in with the retailers wi-thin a centre.

Some environments make culture a permanent partof their physical presence, providing either long-lasting leisure facilities or forming an important partof a broader development of homes, hotels, officesand shops. Others such as the North Park Centerin Dallas, Texas have spent years building up asignificant art collection which is on permanentdisplay. The 15m-tall, 12 tonne Ad Astra orangesteel sculpture by Mark di Suvero, takes centrestage in the centre, located between departmentstores Nordstrom and Macy’s.

Opportunity 1: Bringing cultural awarenessto the masses

Opportunity 2: Mixing uses

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights

and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

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

Selected linksCentro Oberhausen launched an initiativecoinciding with the 60th anniversary of popartist James Rizzi. The Central Dome wastransformed into a 450-exhibit Rizzimasterpiece and brought art to shoppers, plusa painting contest for 10,000 school children,generating €100,000 in charity donations.

Chamartín Imobiliária and ING created theDolce Vita Orchestra in 2009, in partnershipwith the Music School of the NationalConservatory, addressing concerns with thesupervision and socio-cultural education oflocal children. The Dolce Vita Orchestraoffered musical training to 250 children plussupport for them and their families.

During “Domoteka Design Days” at IKEA’sCentre Polska, Polish painters, sculptors,photographers and fashion designerspresented and sold their work in the centre.The event promoted the importance of artand Polish artists.

A total of 13 Metro shopping centreslaunched a cooking event from April untilOctober 2010, which consisted of free cookingclasses for pupils and adults, plus a cookingcompetition for adults. More than 1,253 pupilsand 320 adults participated in the classes, 177adults participated in the competition.

4More links on trendwatching

Selected linksThe Tokyo Midtown complex is a mixed-use development in Tokyo which includesa mix of commercial and residential uses,plus the 21 21 Design Sight gallery andworkshop created by fashion designerIssey Misake and architect Tadao Ando.

When Shelly Centre in South Africahosted the start of the mass motorcycleride, part of Africa Bike Week, the centreformed a strategic partnership with HarleyDavidson and visitors had the opportunityto get up close to the legendary bikes.Musicians and bands participating in theevent also held autograph signings. It isnow the official host for the next 10 years.

Dolce Vita Shopping Centres throughoutPortugal launched Dolce Vita Band Casting,a garage band competition searching fornew musical talent, in an effort to bettercommunicate the centre’s brands throughonline and social media. Enrolment forbands was to be made online, and aspecific micro-site for the competition wascreated and campaigns used Youtube,Facebook and Myspace, attracting over 150bands across the country.

4More links on trendwatching

Can you appeal to a differentdemographic through ‘cultural’

facilities?

What sort of cultural event wouldreflect the brand essence of your

environment?

Post your answer4here

Selected videoGalleria Centercity, Cheonan,Korea

How do you see it?

Is your retail environment theright location for permanent

displays of culture?

Do you see cultural events as aninvestment or an unnecessary

additional cost?

Post your answer4here

Selected videoMacy’s Annual Flower Show

How do you see it?

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Share your view and join inthe discussion!

Share your view and join inthe discussion!

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

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights

and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

If a space is thought of not just as a retail space but asa holistic space then far more is possible. This is whyUrban Outfitters’ Space 15 Twenty has been able ef-fortlessly to blend music rooms, event spaces and artinstallations with a contemporary, lifestyle retail offer,which also bolsters the brand. Of course many deve-lopments have contained a citadel to culture for a longtime – a cinema. Few question the validity of combiningretail and the revered art of film. So why not a gallery?Or an aquarium? Or a live event space?

Shopping centre owners looking to bring more variedand enriching experiences to their destinations canprovide temporary access to almost any form ofculture, high or low. Pop stars long ago realised thevalue of playing malls and mall owners have triedeverything from art installations to designer car bootsales. Temporary – or pop-up – features have becomeubiquitous within shopping centres, with companiessuch as L’Imprimerie creating monthly party events,while retailers like Uniqlo with its outdoor roller rinkand Dolce & Gabbana, with its in-store dress me upexhibition continue to exceed customer expectations.

Opportunity 3: Culture intrinsic to the retailoffer

Opportunity 4: Pop-up culture

Selected linksPolus City Center created the “FairytaleMarathon”, which included theatreperformances entertainment and competitions,all for children, and was used as a tool tosupport and develop creative thinking.

Part mall, part art and leisure space, theenvironment of Los Angeles-located Space15 Twenty also features a convertiblecourtyard which is used for parties,promotions and chill-out events designed toreinforce the quirky ambience of the project -all anchored by landlord Urban Outfitters.

With two of its centres in cities namedEuropean Capitals of Culture – MercatorCentre in Duisburg, Germany and M1Meydan Ümraniye in Istanbul, Turkey – Metroorganised a Turkish-German cultural festivalwhich featured international and local artists,dancers and entertainers, and a simultaneous,live broadcast aired in both centres.

Silesia Shopping Centre, Katowicedeveloped the Silesia Dance Academy,focused on occupying young people’s freetime through sports. In the main square infront of the centre, two heated tents werebuilt where professional coaches led 200young people in free dance lessons,culminating in a final stage competition.

4More links on trendwatching

Selected linksA touring UFO museum designed by theSirius UFO Space Sciences Research Centeropened at Forum Istanbul Shopping Mall.The mobile museum will be set up in front ofshopping malls and open for visits and willtravel for one year, around Europe and to theAmericas.

BWP Group teamed up with CapitalShopping Centres and Reveal magazine forits ‘Little Black Dress’ campaign across 10centres, whereby shoppers sign up for a free30 minute styling session, using a choice ofhigh street fashion retailers, supported bypromotional activity.

Iconic Berlin department store KaDeWereserves a space within the front of its storepurely as an event and temporary exhibitarea. In September it introduced an enclosedarea dedicated to the History of Hermesthrough textile collections and artwork.

L’Imprimerie is a footwear exhibition and retailspace in Paris which renews the goods it sellseach month. When the permanent pop-upstore offers a new collection, the boutique isrelaunched with a party and exhibition.

4More links on trendwatching

Does your retail offer or locationenable you to leverage your brand

position with culture?

Are shopping centres the right placeto tackle social issues through

popular culture?

Post your answer4here

How do you see it?

Selected videoL’Imprimerie

How do you see it?

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Selected videoSelfridges, Museum ofEverything and Vogue FashionNight Out

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Share your view and join inthe discussion!

Share your view and join inthe discussion!

What opportunities do you haveto bring together culture and

commercial promotion?Will more be demanded of publicrealm space as retail and leisure

continue to merge?

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

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Guest view: Laure Colliex, associatedirector, head of strategy,Lord Culture

What do cultural elements bring to a retailenvironment?Cultural elements are certainly nothing newin retail, you can travel back to the originalsouks to see them combined. The publicspace within malls has become increasinglyimportant and bringing in cultural elementsfit with the mixed use of many environ-ments, helping the shopping centre to inte-grate with the city and to create amomentum for the mall, increasing the en-joyment and dwell of the people who visit.

What works best, a permanent and all-embracing theme or specific, targeted cul-tural events?This is a very interesting issue. Much of it de-pends on the challenges of the centre itself: isa mall trying to build loyalty, create a more at-tractive image, or increase visitors or meet aclient need? What is important is not simply tohave one plan but rather a very carefully worked

out strategy which complements the vision forthe centre and which is translated confidently.It is something which the centres must be veryserious about if they want to do it properly andfor it to complement the values of the location.

Can the benefit be measured and how doyou calculate payback?Some benefits can be measured and someare more difficult. Obviously retail traffic andthe news-value generated by an event canbe accurately valued. But some of the bene-fits are more qualitative - considering thebrands that are attracted and the appeal of achanging space which brings in visitors. Thekey of course is to turn visitors into custo-mers, who perhaps do not come for theshopping but end up spending money in thestores and restaurants. From our researchwe see that those shopping centres that em-brace cultural activities are generally able toboost their image and increase their rents.

What do cultural elements bring to a retailenvironment?We feel that many of our visitors see Blue-water as an experience and as a town centrein its own right and so adding cultural andcommercial events to that brings more to thedestination. We look at our venue as bringingevents to people, rather than people toevents, which is in many ways the oppositeof the usual way of operating a shoppingcentre. But if you consider your site as morethan simply shopping, then widening the lei-sure offer is an obvious extension.What works best, a permanent and all-embracing theme or specific, targeted cul-tural events?I think what really matters is whether theevents bring something to the mall. You canfill an events space with anything but that’snot the point, any event you hold has to fitwith the activities of the mall. That means

both in terms of suitability, something whichcan connect with the retailers, and in termsof practicality – so for example car parking isorganised so that the event does not get inthe way of those there to shop.

Can the benefit be measured and how doyou calculate payback?Obviously deciding to add an events venueto an existing site is a decision that is aboutmore than value per square metre and I thinkas operators you have to look beyond that, towhat it can bring the centre overall. In ourcase we felt from our research that therewas a desire from our local catchment ofKent to attend things which perhaps theywouldn’t want to travel all the way into Lon-don for. The important thing is that those at-tending the events can then use therestaurants, or go shopping, which brings ad-vantages to the retail tenants.

The developer view: Rebecca Cardozo, venuedirector, Bluewater

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The brand view:Ibrahim Ibrahim, managingdirector, Portland

What do cultural elements bring to a retailenvironment?There has been a coming together of cultureand retail. Look at the big attendance rises atart galleries and museums. Look at the ‘stuf-fication’ of consumers who have enough ma-terial things and are looking for somethingdeeper, especially in the current economicclimate. And then consider how brands andretailers are beginning to build stories aboutthemselves and about the authenticity oftheir back stories and of elements such ascraftsmanship, which very much comes to-gether with culture.

What works best, a permanent and all-embracing theme or specific, targeted cul-tural events?There is no doubt that consumers are tiredof clone malls – the days of hermetically-sea-led, spaceship malls being dropped onto asite are surely over - and cultural elementsare a great way of creating that sense of

place. That might be through permanent des-ign or themes within the centre, or throughmore transient promotions and special cultu-ral endeavours.

Can the benefit be measured and how doyou calculate payback?First of all we have to accept that shoppingcentres are more than commercial spacesbut need to be connected to the community.That gives the mall operator a ‘duty of care’for visitors who it should treat as citizens first,consumers second. That approach makeswhat benefits the visitors and the retailers ea-sier to understand. Footfall is of course a wayof measuring success, as is bringing the re-tailers into the promotion. Some culturalevents might not apply to every retailer butbroader themes, such as Italy for example,could be applied pretty much across a shop-ping centre. These are the sorts of issues mallmanagers will need to spend increasingamounts of time considering.

Investing in ‘event space’ can say a lot aboutthe positioning of a project, whether that bethe prime, front-of-store space given overby Berlin department store KaDeWe for arolling programme of special events andexhibits – to which CEO Andrew Jenningstold me recently that he remains “absolu-tely committed” - or the creation of a stan-dalone space such as the upcoming GlowBluewater venue by Lend Lease in the UK,opening with a consumer exhibition at theend of this month.At Europe’s biggest mall opening of theyear, Westfield Stratford City, London a bigslice of space has been given over to non-retail activity aimed at driving footfall throu-ghout the day and night. Bill Giouroukos,director of operations, Westfield UK,stresses: “We have a state-of-the-art ci-

nema, we have a boutique bowling opera-tion and we will have a fabulous casino wi-thin the shopping centre.”Its importance is echoed by Richard Akers,managing director of retail at Land Securities,who describes cultural activities alongside re-tail as “increasingly significant” and empha-sises that “footfall drivers” are now key to anyproject, existing or in development.Technology is also helping to leverage space.Chris Warren, partner, retail services atCushman & Wakefield, points to the evolu-tion of cinema: “The US studios will stop pro-ducing 35mm film by the end of 2013,switching to digital, and consequently multiplexcinemas will be able to fit into smaller spaces.This means they could go within shopping cen-tres, for example replacing old food courts, andcould drive footfall to quieter areas.”

Cultural themes inretail: The investmentargumentMark Faithfull, editor, RetailProperty Analyst

@markfaithfull1

@PortlandDesign

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Vision Pavilion

For regular upades, questions, comments …

is a new initiative by MAPIC, The international market for retail real estate 16 – 18 November 2011, Palais des Festivals, Cannes, France.

Every 2 months, MORE+ Vision will pitch a new trend thatinfluences retail property strategy. MORE+ Vision is a multi-channel service composed of:• A general trend briefing, including a background on thetrend, facts & figures, useful links, exclusive interviewswith retail real estate professionals

• An open and animated dialogue on MAPIC web platforms

MORE Pavilion is a special MAPIC exhibition area,grandstanding four key trends for 2012: future retail, culture+ shopping, hybrid store 2.0 and Slow commerce &community. The pavilion will mix with an exhibition of newretailing concepts and innovative technologies. It will alsospotlight the nature of tomorrow’s shops and stores in ademonstration area developed by the Lille retail industriescluster (PICOM) called ‘The New Shopping Experience’.

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CreditsContributors: Mark Faithfull • Joanne Archibald • Jean-Marc AndréAcknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participationDesign: Frédéric Beauseigneur

Source: “trendwatching.com, a London-based, independent trend firm, scans the globe for the mostpromising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Brie-fings get sent to more than 160,000 business professionals in 180+ countries.”

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