Modern retail wars have spawned carefully designed retail spaces that increasingly embrace cultural activities. Savvy shoppers want more—how can retailers deliver?

1. MORE+ Vision n°3
November 2011
Vision by
every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up
Culture, leisure:
traffic generator?
Not only are many retailers curating their space, carefully editing the
merchandise selections available to shoppers, but shopping centres and
retail environments are embracing cultural and commercial opportunities.
Inside
• The trend briefing
This merger of culture, leisure and entertainment in retail spaces is
• Interviews:
playing an increasing role in enhancing the shopping experience. Its
importance can be seen in the money now invested in public spaces and Lord Culture
their use as a differentiator, distracting passers-by from the functionality of Bluewater
why they are there. Portland
So how can retail environments be transformed into something which KaDeWe
both gives visitors more from a visit but also encourages buying, while Lend Lease
delivering a tangible return for retailers and developers? Westfield
We’ve talked to four of you who shared with ‘MORE Vision’ their view in an Land Securities
exclusive interview - Together with key data, useful links and must-see video, Cushman & Wakefield
it makes the third issue of MORE Vision. • What is MORE+ Vision?
• What is MAPIC?
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2. Vision by Follow us on
every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up
The trend briefing
Where does the trend come from ?*
Promotional events have long been used as a hook to attract visitors but customers now
demand more, electing not to be sold to but instead welcoming the opportunities to
learn, share and discover. Shopping environments are in a unique position to provide
events and spaces which allow interaction with the consumer and link these activities to
the tenants and to the brand values of the centre.
Above all, people want convenience and they want differentiation. Whether a communal
experience for friends or family together in a shopping environment, or something to
occupy children (or men shopping reluctantly!), they value distractions from the norm and
they enjoy receiving something more than simple material things. So where a space can
provide them with a good experience or a new skill or knowledge, it also adds to their
brand 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 to
interact with their surroundings.
Environments which can capture this sense of exploration and make it part of their own
brand offering will create a loyal and regular customer base, enhancing the performance
of 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
*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights
and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

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Selected links
Opportunity 1: Centro Oberhausen launched an initiative
Selected video
Galleria Centercity, Cheonan,
Bringing cultural awareness coinciding with the 60th anniversary of pop
artist James Rizzi. The Central Dome was
Korea
to the masses transformed into a 450-exhibit Rizzi
masterpiece and brought art to shoppers, plus
Taking a visit to the shops to beyond simple a painting contest for 10,000 school children,
consumerism, cultural events can increase footfall, generating €100,000 in charity donations.
bring in new potential consumers and create a Chamartín Imobiliária and ING created the
‘feel good’ factor for visitors. Such events can pro- Dolce Vita Orchestra in 2009, in partnership
vide the mainstream with access to art and culture with the Music School of the National
Conservatory, addressing concerns with the
within a familiar environment and are often used
supervision and socio-cultural education of
to engage the local community. This aligns the local children. The Dolce Vita Orchestra
shopping centre with its location and catchment offered musical training to 250 children plus
and creates differentiation, while well targeted support for them and their families.
campaigns should also tie in with the retailers wi-
How do you see it?
During “Domoteka Design Days” at IKEA’s Share your view and join in
thin a centre. Centre Polska, Polish painters, sculptors, the discussion!
photographers and fashion designers
presented and sold their work in the centre. Can you appeal to a different
The event promoted the importance of art demographic through ‘cultural’
and Polish artists. facilities?
A total of 13 Metro shopping centres What sort of cultural event would
launched a cooking event from April until reflect the brand essence of your
October 2010, which consisted of free cooking environment?
classes for pupils and adults, plus a cooking
competition for adults. More than 1,253 pupils Post your answer
and 320 adults participated in the classes, 177 4here
adults participated in the competition.
4More links on trendwatching
Opportunity 2: Selected links Selected video
The Tokyo Midtown complex is a mixed- Macy’s Annual Flower Show
Mixing uses use development in Tokyo which includes
a mix of commercial and residential uses,
Some environments make culture a permanent part
plus the 21 21 Design Sight gallery and
of their physical presence, providing either long- workshop created by fashion designer
lasting leisure facilities or forming an important part Issey Misake and architect Tadao Ando.
of a broader development of homes, hotels, offices When Shelly Centre in South Africa
and shops. Others such as the North Park Center hosted the start of the mass motorcycle
in Dallas, Texas have spent years building up a ride, part of Africa Bike Week, the centre
significant art collection which is on permanent formed a strategic partnership with Harley
display. The 15m-tall, 12 tonne Ad Astra orange Davidson and visitors had the opportunity
steel sculpture by Mark di Suvero, takes centre to get up close to the legendary bikes. How do you see it?
stage in the centre, located between department Musicians and bands participating in the
Share your view and join in
stores Nordstrom and Macy’s. event also held autograph signings. It is
the discussion!
now the official host for the next 10 years.
Dolce Vita Shopping Centres throughout Is your retail environment the
Portugal launched Dolce Vita Band Casting, right location for permanent
a garage band competition searching for displays of culture?
new musical talent, in an effort to better
communicate the centre’s brands through Do you see cultural events as an
online and social media. Enrolment for investment or an unnecessary
bands was to be made online, and a additional cost?
specific micro-site for the competition was Post your answer
created and campaigns used Youtube, 4here
Facebook and Myspace, attracting over 150
bands across the country.
4More links on trendwatching
*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights
and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

4. Vision by Follow us on
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Selected video
Opportunity 3: Selected links
Selfridges, Museum of
Polus City Center created the “Fairytale
Culture intrinsic to the retail Marathon”, which included theatre Everything and Vogue Fashion
performances entertainment and competitions, Night Out
offer all for children, and was used as a tool to
support and develop creative thinking.
Part mall, part art and leisure space, the
environment of Los Angeles-located Space
15 Twenty also features a convertible
courtyard which is used for parties,
promotions and chill-out events designed to
reinforce the quirky ambience of the project -
all anchored by landlord Urban Outfitters.
With two of its centres in cities named
European Capitals of Culture – Mercator How do you see it?
Centre in Duisburg, Germany and M1 Share your view and join in
Meydan Ümraniye in Istanbul, Turkey – Metro the discussion!
organised a Turkish-German cultural festival Does your retail offer or location
which featured international and local artists, enable you to leverage your brand
dancers and entertainers, and a simultaneous, position with culture?
If a space is thought of not just as a retail space but as
live broadcast aired in both centres. Are shopping centres the right place
a holistic space then far more is possible. This is why
Silesia Shopping Centre, Katowice to tackle social issues through
Urban Outfitters’ Space 15 Twenty has been able ef- popular culture?
developed the Silesia Dance Academy,
fortlessly to blend music rooms, event spaces and art
focused on occupying young people’s free Post your answer
installations with a contemporary, lifestyle retail offer, time through sports. In the main square in 4here
which also bolsters the brand. Of course many deve- front of the centre, two heated tents were
lopments have contained a citadel to culture for a long built where professional coaches led 200
time – a cinema. Few question the validity of combining young people in free dance lessons,
retail and the revered art of film. So why not a gallery? culminating in a final stage competition.
Or an aquarium? Or a live event space? 4More links on trendwatching
Opportunity 4: Selected links Selected video
A touring UFO museum designed by the L’Imprimerie
Pop-up culture Sirius UFO Space Sciences Research Center
opened at Forum Istanbul Shopping Mall.
Shopping centre owners looking to bring more varied
The mobile museum will be set up in front of
and enriching experiences to their destinations can shopping malls and open for visits and will
provide temporary access to almost any form of travel for one year, around Europe and to the
culture, high or low. Pop stars long ago realised the Americas.
value of playing malls and mall owners have tried BWP Group teamed up with Capital
everything from art installations to designer car boot Shopping Centres and Reveal magazine for
sales. Temporary – or pop-up – features have become its ‘Little Black Dress’ campaign across 10
ubiquitous within shopping centres, with companies centres, whereby shoppers sign up for a free
such as L’Imprimerie creating monthly party events, 30 minute styling session, using a choice of
while retailers like Uniqlo with its outdoor roller rink high street fashion retailers, supported by How do you see it?
and Dolce & Gabbana, with its in-store dress me up promotional activity. Share your view and join in
exhibition continue to exceed customer expectations. Iconic Berlin department store KaDeWe the discussion!
reserves a space within the front of its store
What opportunities do you have
purely as an event and temporary exhibit
to bring together culture and
area. In September it introduced an enclosed
commercial promotion?
area dedicated to the History of Hermes
Will more be demanded of public
through textile collections and artwork.
realm space as retail and leisure
L’Imprimerie is a footwear exhibition and retail continue to merge?
space in Paris which renews the goods it sells
each month. When the permanent pop-up Post your answer
store offers a new collection, the boutique is 4here
relaunched with a party and exhibition.
4More links on trendwatching
*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights
and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

5. Vision by Follow us on
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Guest view: What do cultural elements bring to a retail out strategy which complements the vision for
Laure Colliex, associate environment? the centre and which is translated confidently.
director, head of strategy, Cultural elements are certainly nothing new It is something which the centres must be very
Lord Culture in retail, you can travel back to the original serious about if they want to do it properly and
souks to see them combined. The public for it to complement the values of the location.
space within malls has become increasingly
important and bringing in cultural elements Can the benefit be measured and how do
fit with the mixed use of many environ- you calculate payback?
ments, helping the shopping centre to inte- Some benefits can be measured and some
grate with the city and to create a are more difficult. Obviously retail traffic and
momentum for the mall, increasing the en- the news-value generated by an event can
joyment and dwell of the people who visit. be accurately valued. But some of the bene-
fits are more qualitative - considering the
What works best, a permanent and all- brands that are attracted and the appeal of a
embracing theme or specific, targeted cul- changing space which brings in visitors. The
tural events? key of course is to turn visitors into custo-
This is a very interesting issue. Much of it de- mers, who perhaps do not come for the
pends on the challenges of the centre itself: is shopping but end up spending money in the
a mall trying to build loyalty, create a more at- stores and restaurants. From our research
tractive image, or increase visitors or meet a we see that those shopping centres that em-
client need? What is important is not simply to brace cultural activities are generally able to
@Lordculture have one plan but rather a very carefully worked boost their image and increase their rents.
The developer view: What do cultural elements bring to a retail both in terms of suitability, something which
Rebecca Cardozo, venue environment? can connect with the retailers, and in terms
director, Bluewater We feel that many of our visitors see Blue- of practicality – so for example car parking is
water as an experience and as a town centre organised so that the event does not get in
in its own right and so adding cultural and the way of those there to shop.
commercial events to that brings more to the
destination. We look at our venue as bringing Can the benefit be measured and how do
events to people, rather than people to you calculate payback?
events, which is in many ways the opposite Obviously deciding to add an events venue
of the usual way of operating a shopping to an existing site is a decision that is about
centre. But if you consider your site as more more than value per square metre and I think
than simply shopping, then widening the lei- as operators you have to look beyond that, to
sure offer is an obvious extension. what it can bring the centre overall. In our
What works best, a permanent and all- case we felt from our research that there
embracing theme or specific, targeted cul- was a desire from our local catchment of
tural events? Kent to attend things which perhaps they
I think what really matters is whether the wouldn’t want to travel all the way into Lon-
events bring something to the mall. You can don for. The important thing is that those at-
fill an events space with anything but that’s tending the events can then use the
not the point, any event you hold has to fit restaurants, or go shopping, which brings ad-
@Bexcardozo with the activities of the mall. That means vantages to the retail tenants.

6. Vision by Follow us on
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The brand view: What do cultural elements bring to a retail place. That might be through permanent des-
environment? ign or themes within the centre, or through
Ibrahim Ibrahim, managing
There has been a coming together of culture more transient promotions and special cultu-
director, Portland
and retail. Look at the big attendance rises at ral endeavours.
art galleries and museums. Look at the ‘stuf-
fication’ of consumers who have enough ma- Can the benefit be measured and how do
terial things and are looking for something you calculate payback?
deeper, especially in the current economic First of all we have to accept that shopping
climate. And then consider how brands and centres are more than commercial spaces
retailers are beginning to build stories about but need to be connected to the community.
themselves and about the authenticity of That gives the mall operator a ‘duty of care’
their back stories and of elements such as for visitors who it should treat as citizens first,
craftsmanship, which very much comes to- consumers second. That approach makes
gether with culture. what benefits the visitors and the retailers ea-
sier to understand. Footfall is of course a way
What works best, a permanent and all- of measuring success, as is bringing the re-
embracing theme or specific, targeted cul- tailers into the promotion. Some cultural
tural events? events might not apply to every retailer but
There is no doubt that consumers are tired broader themes, such as Italy for example,
@PortlandDesign of clone malls – the days of hermetically-sea- could be applied pretty much across a shop-
led, spaceship malls being dropped onto a ping centre. These are the sorts of issues mall
site are surely over - and cultural elements managers will need to spend increasing
are a great way of creating that sense of amounts of time considering.
Cultural themes in Investing in ‘event space’ can say a lot about nema, we have a boutique bowling opera-
retail: The investment the positioning of a project, whether that be tion and we will have a fabulous casino wi-
the prime, front-of-store space given over thin the shopping centre. ”
argument
by Berlin department store KaDeWe for a Its importance is echoed by Richard Akers,
Mark Faithfull, editor, Retail
rolling programme of special events and managing director of retail at Land Securities,
Property Analyst exhibits – to which CEO Andrew Jennings who describes cultural activities alongside re-
told me recently that he remains “absolu- tail as “increasingly significant” and empha-
tely committed” - or the creation of a stan- sises that “footfall drivers” are now key to any
dalone space such as the upcoming Glow project, existing or in development.
Bluewater venue by Lend Lease in the UK, Technology is also helping to leverage space.
opening with a consumer exhibition at the Chris Warren, partner, retail services at
end of this month. Cushman & Wakefield, points to the evolu-
At Europe’s biggest mall opening of the tion of cinema: “The US studios will stop pro-
year, Westfield Stratford City, London a big ducing 35mm film by the end of 2013,
slice of space has been given over to non- switching to digital, and consequently multiplex
retail activity aimed at driving footfall throu- cinemas will be able to fit into smaller spaces.
ghout the day and night. Bill Giouroukos, This means they could go within shopping cen-
director of operations, Westfield UK, tres, for example replacing old food courts, and
stresses: “We have a state-of-the-art ci- could drive footfall to quieter areas.
”
@markfaithfull1

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16 – 18 November 2011, Palais des Festivals, Cannes, France.
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Every 2 months, MORE+ Vision will pitch a new trend that
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Sep. Jan. MORE Pavilion is a special MAPIC exhibition area,
2011 2012
grandstanding four key trends for 2012: future retail, culture
Previous MORE+ Vision: Next MORE+ Vision: + shopping, hybrid store 2.0 and Slow commerce &
Why retail must reach out Main 2012 retail real estate community. The pavilion will mix with an exhibition of new
to Citysumers? trends retailing concepts and innovative technologies. It will also
spotlight the nature of tomorrow’s shops and stores in a
Register here
Read it here if you wish to be notified demonstration area developed by the Lille retail industries
cluster (PICOM) called ‘The New Shopping Experience’.
Contacts Credits
Contributors: Mark Faithfull • Joanne Archibald • Jean-Marc André
Any questions on MORE+ Vision, Acknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participation
please contact Editor: jean-marc.andre@reedmidem.com Design: Frédéric Beauseigneur
Want to advertise in MORE+ Vision, 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 Brie-
please contact iris.terre@reedmidem.com fings get sent to more than 160,000 business professionals in 180+ countries.”