Gearing up for Galeria Legnicka
Agnieszka Le Nart: Wrocław has seen a large volume of delivery in shopping center space this year. How would you characterize the local retail market?
Gilbert Boulanger: Forecasts for Wrocław, as well as for Poland's other large cities, envisage further growth of modern retail space, but it will surely not be as dynamic as in recent years. Shopping centers differ in character, location and catchment areas and effectively target diverse customer groups. I would define three shopping center types already existing on Wrocław's map: downtown shopping centers, modern department stores and retail centers that are an extension of the traditional shopping artery in the vicinity of the Old Town and ul. widnicka. By contrast, Galeria Legnicka, located in the western part of the city, will be the largest regional shopping center in Lower Silesia.
How will Galeria Legnicka compete with Pasaż Grunwaldzki and Arkady?
The scale of the Legnicka investment is determined by its promising location within a wooded park over 41,000 sqm along the city's main transportation artery. There is direct access to the ring road and the Millennium Bridge, and the site will feature an artificial river and fountains - building on Wrocław's character as a city of islands and bridges. Its rich modernized infrastructure offers an amphitheater, a crafts promenade, a Helios cinema and a skating rink. The volleyball and basketball courts will provide a site for sporting events for the city and the region. Furthermore, the center's generous retail offer will introduce several new brands to the city.
What are the company's plans for development throughout Poland?
Further plans for the Legnicka investment envisage the construction of apartments and office buildings in the area. We also plan to expand our operations in other Polish towns, particularly those with 100,000 inhabitants. Poland has nearly 40 towns of this size, which have a high potential for development and a scarce supply of modern retail space. Surely, there is room there for large-scale projects adjusted to the capacity of local markets. Over the next five years Redis plans to enter local markets with combined residential-retail projects.
How is the profile of retailers changing with regard to tenants? Who are the newest additions to international retailers in Poland?
Many international and Polish brands, such as Monnari or Reserved, have built their strong market positions in shopping centers. Situation in a shopping center can also mean a new development stage for companies in a group. This is true of the Spanish Inditex Group's portfolio, which includes Zara and newcomers Bershka, Pull&Bear, Stradivarius and Oysho. Many brands focus on shopping centers to relaunch their Polish operations, such as Grycan.
How is the character of shopping centers evolving?
Modern shopping centers are not only places to shop but also to meet and spend leisure time. Non-shopping functions in entertainment, culture and recreation are expanding in big and small cities alike.
When do you foresee the development of a high-end shopping center with global luxury retailers like Gucci and Prada launching stores?
Interest in top-tier brands in Poland will be growing as people become better off. Upmarket brands are increasingly willing to enter shopping centers and one facility like can start to hold a portfolio of brands from various segments and price tiers. This trend is reflected by the inclusion of labels such as Versace, Max Mara, Escada, Dolce&Gabbana, Karl Lagerfeld and Burberry in centers like Galeria Legnicka.
