Europe's new shopping paradise
But does that mean that the existing centers should brace themselves for a tougher period?
Not necessarily, as last year's example clearly demonstrates that Warsaw's clients just can't seem to get enough of shopping. In 2004 two new schemes joined the Warsaw retail scene, Blue City in April and Arkadia in October, but existing malls claim they observed only a temporary drop in their footfall in favor of the newcomers.
Katarzyna Lesiuk, leasing director at Wola Park, which opened in 2002, claims that although the center experienced a short-term drop in visitor numbers, clients quickly returned to their old habits, clocking in an average of 800,000 visits a month.
"We are delighted that our footfall in December 2004 was 3.5 percent higher than in December 2003 despite the fact that Blue City and Arkadia opened last year," she said.
Clearly Warsaw is a market that seems insatiable in terms of retail space. But pleasing the fickle clientele is not as simple as it used to be.
"Over the years, many shopping centers found themselves collaborating with small, inexperienced retailers that struggled to maintain their market position and many of them ultimately failed. ," said Lesiuk. "These days shopping centers are looking for experienced tenants who also represent strong retail brands. Customers are more interested in shopping in popular stores as brand awareness is very important to them."
Yet, well-known brands on their own are not enough to guarantee that clients will return over and over again. Experts agree that shopping centers must continuously reinvent themselves by adding new facilities and creating a stronger identity. This can be done by adding a cinema or a fitness club but also by running a series of regular events that help the clients identify with the center.
Galeria Mokotów, for instance, has announced plans to further expand its 60,000-sqm space. Within a month Rodamco GM Management will begin construction of phase III on the center's roof, which will add 4,000 sqm to the mall's offer. The newly created space will accommodate an expanded Go-Sport store as well as a fitness club.
But the trend to innovate is not only limited to Warsaw. Wrocław's Galeria Legnicka, scheduled to open next year, apart from 80,000 sqm of retail space will also feature an amphitheatre, a bike path as well as tennis and basketball courts.
One more lesson to learn from the market survivors is to never underestimate the importance of market research-this allows the shopping centers to clearly identify their customers and cater to their needs.
"We do a lot of research to establish the customer profile as well as to understand their current expectations," said Lesiuk. "Then we identify brands that would enhance our merchandize mix and where our customers would like to shop. Last year we decided there aren't enough boutiques with formal ladies' fashion so we added brands such as Simple to our tenant mix to meet the needs of our female clientele."
Not necessarily, as last year's example clearly demonstrates that Warsaw's clients just can't seem to get enough of shopping. In 2004 two new schemes joined the Warsaw retail scene, Blue City in April and Arkadia in October, but existing malls claim they observed only a temporary drop in their footfall in favor of the newcomers.
Katarzyna Lesiuk, leasing director at Wola Park, which opened in 2002, claims that although the center experienced a short-term drop in visitor numbers, clients quickly returned to their old habits, clocking in an average of 800,000 visits a month.
"We are delighted that our footfall in December 2004 was 3.5 percent higher than in December 2003 despite the fact that Blue City and Arkadia opened last year," she said.
Clearly Warsaw is a market that seems insatiable in terms of retail space. But pleasing the fickle clientele is not as simple as it used to be.
"Over the years, many shopping centers found themselves collaborating with small, inexperienced retailers that struggled to maintain their market position and many of them ultimately failed. ," said Lesiuk. "These days shopping centers are looking for experienced tenants who also represent strong retail brands. Customers are more interested in shopping in popular stores as brand awareness is very important to them."
Yet, well-known brands on their own are not enough to guarantee that clients will return over and over again. Experts agree that shopping centers must continuously reinvent themselves by adding new facilities and creating a stronger identity. This can be done by adding a cinema or a fitness club but also by running a series of regular events that help the clients identify with the center.
Galeria Mokotów, for instance, has announced plans to further expand its 60,000-sqm space. Within a month Rodamco GM Management will begin construction of phase III on the center's roof, which will add 4,000 sqm to the mall's offer. The newly created space will accommodate an expanded Go-Sport store as well as a fitness club.
But the trend to innovate is not only limited to Warsaw. Wrocław's Galeria Legnicka, scheduled to open next year, apart from 80,000 sqm of retail space will also feature an amphitheatre, a bike path as well as tennis and basketball courts.
One more lesson to learn from the market survivors is to never underestimate the importance of market research-this allows the shopping centers to clearly identify their customers and cater to their needs.
"We do a lot of research to establish the customer profile as well as to understand their current expectations," said Lesiuk. "Then we identify brands that would enhance our merchandize mix and where our customers would like to shop. Last year we decided there aren't enough boutiques with formal ladies' fashion so we added brands such as Simple to our tenant mix to meet the needs of our female clientele."
