We are seeing this phenomenon appear all over the world: there are already dozens of examples in Europe and the development of new concepts cannot be denied. I am talking about mega malls: huge, easily accessible centres outside cities containing not only shops and catering outlets but also entertainment in the form of cinemas and even tropical swimming pools. Plans for mega malls in the Netherlands have not yet had any success. But why?

ROUND THE TABLE
To discuss the various aspects of the shopping centre phenomenon, I organised a 'round table’ inCafe Blue Amsterdam that, appropriately enough, is situated above the Kalvertoren shopping centre in the centre of Amsterdam. My panel, comprising Helwin Teunissen of XO Property Partners, Manuela Fernandez of WF Communicatie, Ronald Borenbergs of RSP Makelaars and I looked at various European mega mall concepts, shopping centre real estate and communication policy, the vitality of Dutch inner cities and the latest developments with regard to mega malls.

THE MEGA MALL
Among the first (1997) and still successful mega malls in Europe were Wijnegem Shopping Centre just outside Antwerp and Bluewater (1999) in London. Up to now, the largest shopping centres in Europe have been CentrO in Oberhausen and Cevahir Shopping and Entertainment Center in Istanbul, which even has a roller coaster. But Westfield Stratford City, a new mega mall in London that has recently been developed covering 176,000 square metres and with 5,000 parking spaces, now claims to be the biggest urban shopping centre in Europe. Anyone travelling to the Olympic Games 2012 on public transport is sure to pass through it. Offering more than 300 shops, 70 restaurants, a cinema, bowling alley and even a casino, Westfield has attracted much international attention.

SO WHAT ABOUT THE NETHERLANDS?
Plans in the Netherlands for mega malls along the lines of those abroad have not yet had any success. “Because,” says Helwin, “we’ve already got them in the Netherlands. Our city centres perform this role.” The arrival of a mega mall in the Netherlands would mean a radical turnaround in Dutch shopping culture. Shoppers would exchange the inner city for shopping centres on the edge of the city, simply because local authorities in many cities have failed to properly arrange important pre-conditions such as accessibility and parking facilities, whether paid or free. My panel is sure that a mega mall like this would be a certain success in the Netherlands, but, understandably, inner city retailers and local authorities vehemently oppose such developments.

NEW CONSUMERS
A successful shopping centre stands or falls with its number of visitors. To ensure plenty of traffic, it is important to have an extensive catchment area and the presence of ‘anchor tenants’: retail concepts that attract large numbers of people. And accessibility and parking facilities are just as important if not more so. Manuela has clearly observed that diversity of the range on offer is becoming increasingly important: the function of shops is changing and consumers want more service and an experience. More and more new projects recognise that consumers’ needs need to be measured and are doing just that. The mega mall in Westfield referred to above deserves special praise for its staff’s customer focus, the centre’s spirit and harmony and the diversity of the concept: plush meeting places with settees to lounge on, catering outlets from all corners of the world and less of the same, not just chain stores but also independent boutiques. Work is currently being carried out on a similar concept in Berlin called Bikini Berlin. The project has been developed based on the mega trend to unite opposites and the fact that the new consumer considers factors such as individuality, perception and sustainability to be of paramount importance. Urban shopping areas also offer such diversity and Dutch inner cities are certainly being studied by international project developers because of the large, varied range they offer in a relatively small area.

STRENGTH IN NUMBERS
In the present era in which online shopping is occupying an ever increasing market share, it is even more important to position shopping centres well, to match them carefully to consumers’ wishes and above all to create an experience. Ronald’s opinion is that real estate parties ought to include retailers’ wishes and ideas more explicitly. Spread sheets mainly form the basis for action and securing rent often has a higher priority than monitoring the total retail concept.
As regards positioning, it would generally be easier for shopping centres to pursue a uniform marketing and communication policy. There is no discussion about common interests and even though it is an organised partnership, there is clearly only one policy and that is usually chosen by the owner of the shopping centre. However, ownership in city centres is fragmented and the commitment of a branch manager is quite different to that of independent entrepreneurs in a city. Experience has shown that cooperation does not go smoothly, which adversely affects communication and innovation. Communal funds are often created through advertising and betterment levies but in order to make a real difference, the bigger picture ultimately needs to be embraced. Municipalities such as Haarlem and Eindhoven have shown that this is possible.
A major challenge, as in many sectors, is how to offer transparency and service, provide an experience and above all for entrepreneurs to be ‘connected’.
The film to accompany this blog can be viewed by way of this link.

Isrid van Geuns