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introduction│ short about reteam

the future shopping mall project│ process

the trends│ mega trends│ replacemaking – the third place│ new communities│ internet – e-tail│ age shift│ experience

conclusion

MARKET PLACES OF THE FUTURE

1

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INTRODUCTION │ Short about reteam

StartFounded in 2001 we have developed more than 40 marked places from 2.000 sqm to more than 100.000 sqm retail.

GlobalWe work all over the world. Our head office is in Copenhagen, Denmark. Partner office in Helsinki, Montreal, Toronto and Detroit.

Research productsmind16replacemaking

Ongoing project in Denmark, Finland, Sweden, Hungary

Basic philosophyWe develop projects to improve peoples lives.Every location is unique. Footfall is not a commodity.

2

A place to be?

research

branding

analysis design

strategy

leasing

marketing

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introduction│ short about reteam

the future shopping mall project│ process

the trends│ mega trends│ replacemaking – the third place│ new communities│ internet – e-tail│ age shift│ experience

conclusion

MARKET PLACES OF THE FUTURE

3

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ERG │ The future shopping mall process/structure

International Council of Shopping malls (ICSC)European Research Group (ERG)

1. Identifying trends in society

2. Will the trend will have an impact on the shopping malls?

3. How can we develop the shopping malls to embrace the trends?

ERG workshop Lisbon 2011.

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Shift in paradigm (structures & values) in the society.

Youthtopia, a research in European countries shows that young people are changing values. 7 European countries, 7.000 young people interviewed.

ERG │ The future shopping mall /mega trends

Weekday.

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ERG │ The future shopping mall /mega trends

From (designed) experience economic to attention economic.

Vendersgade KBH.

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ERG │ The future shopping mall /mega trends

The turnover in retail is reduced more that turnover in events. (The turnover in events has actually increased in DK 2008-2010.)

There are many reasons that drives the meltdown in shopping:

Financial CrisesSustainabilityAging populationWe have to much stuff at home

Kiosque, Oulo.

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ERG │ The future shopping mall /mega trends

The project society – All work/employment is short term, the rituals that keep your world stable moves from the work place to the private zone, family and spare time.

CEO and only employed, Lund.

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ERG │ The future shopping mall /mega trends

There is not enough work to all of us. Either we share the work = all of us have more time off, or some people will not work at all. As production gets more efficient we will create the same or even more value. The people that work have to share with the people that do not work. Or we develop new services, so all can have a work.

A normal weekday working hours, Copenhagen.

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ERG │ The future shopping mall /mega trends

The elite in the society is shifting. Long ago it was the noble families, then the bourgeoisie (owning the industry). Both groups owned real estate and had almost free access to capital. What was needed to make establish a business.

Now you can create huge companies with your laptop. The elite are people that founded Facebook etc. This opportunity for making success without needing traditional basis of capital gives equal opportunities to everybody.

Please sir.

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ERG │ The future shopping mall /mega trends

Networking and connectivity gets more and more important (also related to other trends) also on a local level for all kind of people, not only the leaders.

Online & connected 24/7.

Free flow of information and the possibility of connecting a very low transaction cost gives power to the people.

"What really struck me, though, was knowing that the lines didn't represent coasts or rivers or political borders, but real human relationships.” Paul Butler, Facebook

Facebook map 2010.

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ERG │ The future shopping mall /mega trends

The climate changes – less consumption or other consumption?

Less land, more people = smaller flats = increased needs for public space.

Nature, Sweden.

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ERG │ The future shopping mall /mega trends

Internet sales – e-tail is maturing and growing. The distribution channels merge.

Apple NY.

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ERG │ The future shopping mall /conclusion

The trends1. Replacemaking2. Internet shopping3. The new communities4. Age shift5. Experience (6. Energy Performance)

The new generation developers.

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REPLACEMAKING – THIRD PLACE

Replacemaking - The third place Urbanization, more people on the same spot = smaller flats = increased needs for public space.

There is not enough work to all of us. Either we share the work = all of us have more time off, or some people will not work at all. What do we do when we don’t work?

Or we develop new services, so we all can have a work.

Few malls will survive as one dimensional shopping machines. (samples on www.deadmall.com)

The Spanish stairs, Rome.

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EXPECTATIONS| Replacemaking®

Why are people here?

In order to meet the visitors expectations this is perhaps the most important question to ask.

There are three main reasons – Meeting, Market and Movement - as to why people can be at a specific marketplace.

Each of these give us an indication of how to take care of their specific needs and demands.

Meeting

MovingMarket

?

??

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REPLACEMAKING® | Zone Overview

In the case of OPUS, we have a marketplace with three separate zones, with their own particular mix of reasons.

Meeting

Meeting

Meeting

Market

Market

Market

Moving

Moving

Moving

A

C

B

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Three samples of environment for market, meeting, moving.

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INTERNETSHOPPING

Internet shopping - phone shopping – e-tail

The relation between producer/manufacture – distribution – retail, and including the internet retail.

Paradigm of lease contracts will change. Turn over rent might be “over and out”.relation between producer/manufacture – distribution – retail, and including the internet retail.

Less stock in store, smaller stores.

This could mean the department store will have a new possibility, as they can offer the manufactures a retail solution.

A local shopping mall should make a possibility for internet retailers to deliver the goods to the shopping mall, and then people come here and pick it up.

Merge e-tail and the mall. Create synergies. Communicate.

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NEW COMMUNITIES

New communities - The project society

More people works/is employed on short term. The rituals that keep your world stable moves from the work place to the private zone, family and spare time.

In the project society you need network to get your next assignment.

Make place for people, embrace the new communities, give them a space.

Make network events at the shopping mall, common lunch once a week or every day.

Have meetings room, or a meeting apartment. Home shopping at the shopping mall.

More single households, increased needs for places to meet other people

Community, developers, Copenhagen.

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AGE SHIFT

Age shift

In many countries people get older and older. And the birth rate is decreasing.

The age pyramid is turning upside down.

And people above 60 don’t consider them self old, and they don’t want to be reminded that they are getting older or limited in any way.

More service, less product. Less product, less sqm2 pr tenant.

Retailers with fashion to youngsters pay the highest rent. Less young people, less retailers focused on young fashion. Drop in rent levels?

Acoustic quality is very important when more than 10% have tinnitus, and more than 10% of the entire population use hearing aid.

Public transportation

Very different group of consumers

Scale – Signage – Open space

Trendlab Steen&Strøm

Life is great, Fyn.

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EXPERIENCE

Experience

To much for the eyes. To little for the other senses. From experience economic to attention economic.

“Give me attention and understand my needs and wants, don’t design an experience you think I would like.”

Young people are changing values. 7 European countries, 7.000 young people interviewed. From material to empathy.

In the mature markets people don’t have space or need for more products. However they still like to consume.

Events and service respond to the needs of doing something for your self and together with friends. Having an experience together gives friends and families a base for storytelling.

Our business will change from managing installations to manage a people business.

Experience in the decompression zone.RO’s Torv Roskilde.

Creating common story, Istanbul.

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introduction│ short about reteam

the future shopping mall project│ process

the trends│ mega trends│ replacemaking – the third place│ new communities│ internet – e-tail│ age shift│ experience

conclusion

MARKET PLACES OF THE FUTURE

23

|| © reteam group.com | themalldoctors copenhagen | mind16.com® by reteam || research analysis strategy design branding marketing leasing || alliance GHA design ||

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CONCLUSION │ The future market place

It is not 5 min to 12 in for the industry.

But the industry needs to realize that understanding consumers needs and wants should be the basis for any decision to be made.

When we make places based on human needs and wants, the result is a long time benefit for every part of the chain, the community, individuals, tenants, landlords and capital providers.

Chelsea Market, NY.

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Thank you for your attention

Introducing

Contact CEO Kathrine HeibergMobile +45 2991 5089Office +45 3262 6202 kh@reteamgroup.com

reteam group head officeFields Shopping center │ Arne Jacobsens Allé 16 DK-2300 Copenhagen S │ Denmarkwww.reteamgroup.com