According to independent research carried out prior to MAPIC by CBRE and presented to MAPIC delegates by Chris Igwe, Head of Retail, Senior Director European Retail Leasing, EMEA, CBRE, Central Europe, Germany and France head the list of target markets for 200 international retailers. The CBRE research noted that retailers who have weathered the economic storm the best are in the fast-food, men’s apparel and mid-price restaurant sectors. Growth sectors included baby and children’s concepts, aspirational and international brands.

Discussing the state of the retail business during his MAPIC 2009 Closing Address, Chris Igwe noted, “there is a future. There is hope. What’s been interesting here in Cannes is the mood, which is clearly positive.” He advised developers that understanding retailers’ needs is increasingly important. “In our industry, a lot has been said about ‘build it and they will come.’ You can’t just build anything today, because nobody will necessarily buy it up. We need to dialogue more to understand what has worked and what hasn’t.”

Delegate feedback gathered during MAPIC by researchers from Wisconsin School of Business and France’s HEC Business School, confirmed a renewed sense of optimism. Joe Walsh, Senior Lecturer at Wisconsin School of Business, presented the findings which showed 53% of those polled felt more optimistic at the end of MAPIC than they did at the start. Asked how they felt the market perspectives had changed over the past 12 months, over 65% of retailers expressed optimism, while 35% of developers said they felt an improvement in the retail real estate sector.

Commenting on the 15^th edition of the event, which welcomed over 6,700 delegates from 66 countries, including 1,500 retailers, MAPIC Director Nathalie Depetro said, “in the current crisis context, the professionals of the industry are very focused on deal-making and sharing a sense of a new era starting for retail real estate. Even in these challenging times, it was interesting to see new countries attending such as Argentina, Chile, Mexico, Algeria, Azerbaijan, Belarus, Malta and Qatar.”

One of the driving forces of change within the retail real estate industry, that was discussed at MAPIC, is the shift in consumer behaviour.

“Shoppers are in a different state of mind today,” explained Dan Stanek, Executive Vice President of Retail Forward Inc (USA) during his keynote address. “They are looking for value and return on involvement, as they are evolving in a society where credit is tighter but spending remains crucial.” Discussing retail renewal, Dan Stanek examined the current trends in consumer spending patterns that retail real estate professionals should be aware of in order to make their retail developments successful: who are the main spenders today? What are the kinds of spending that are drivers for growth? What are the shopping places that can guarantee sustained consumption?

One example of a retailer illustrating the new positioning that comes out of these trends is Rituals Cosmetics, from the Netherlands, which defines itself as a brand offering the quality of Chanel at Body Shop prices. In a MAPIC “speed matching” session dedicated to retail concepts, Arjen Schouten, Director New Business & Partner, provided further insight into their development pattern, which relies on promotion through in-store experience rather than advertising. As he presented the global brand and specific sites (125 stores, 300 corners and 3 spas in 12 countries), he said his company is looking for premium locations in Europe, Asia and the Americas.

Many retail developers took advantage of the networking opportunities offered by MAPIC to gain visibility and reach targeted business contacts, while some others chose to exhibit to promote their brand, like the Brazilian franchise “Touch Watches,” which is looking to attract the middle class client: “In MAPIC we are looking for master franchisers for Latin America and Eastern Europe continuing the growth of the brand all around the world” said company President Marcelo Digiorgio.

Despite the challenges facing developers, several chose MAPIC to unveil their plans. MacArthurGlen announced 135,000 sq. m. to be developed in Europe for 2010 and 2011, Immochan presented 51 projects of shopping centres worldwide, and Cairo Festival City featured its large project of shopping center in Cairo, Egypt.

The diversity of real estate products on the market is more vital than ever, now that retailers are becoming more selective when choosing a location. According to Nils-Christian Hakert, COO of Atrium European Real Estate, “we have met with many retailers who are once again planning to expand into the Central and Eastern Europe, which is very encouraging. However, this time they are only interested in working with owners who have specific asset management skills, a strong personal track record and can offer access to a portfolio of stable performing assets.”

As a result, shopping centre managers are upping the creativity by opening their doors to entertainment and culture. For its first-time attendance as an exhibitor at MAPIC, the Cité des sciences et de l'industrie, a French public institution dedicated to popularising scientific, technological and industrial knowledge, showed how it is playing a role in this "cultural revolution." As Marie-Sophie Mugica, Head of the International Department at the Cité des sciences et de l'industrie, explained: "Consumers want to have a new experience, as well as simply buying things. With its ‘Children's City’ concept, the Cité des sciences can provide retail real estate professionals with its unique skills, in-depth knowledge of the public and museological expertise.”

Similarly, local authorities attending MAPIC demonstrated their willingness to invest seriously in urban retailing by attracting dynamic and creative retailers. “We have met business developers from Lille, Nantes and Marseille who were particularly interested in our new pop-up stores that offer branded goods at bargain prices,” said Bruno Poncet and Edouard de Jandin, founders and directors of the young French retailer Chronostock. This highly original concept, with its unusual, short-life span agenda, is helping to generate buzz throughout the year in city centres.

Personalities such as Jean-Marie Bockel, French Secretary of State for Justice and Mayor of Mulhouse, and Guido Pasi, Italian representative for Trade and Tourism of the Emilia Romagna region, were happy to come to MAPIC and make the most of this "window on the world of retail real estate," as Piercarlo Fabbio, Mayor of the Italian town of Alessandria, put it. He believes that “by virtue of its strategy and perseverance, a middle size city such as Alessandria can attract the attention of international real estate professionals and find business partners."

Another MAPIC 2009 trend was the growing role of sustainable development in retail real estate. “Sustainability has come to a point when it’s saving money and future-proofs business. It must now be part of any business plans going forward, with a particular emphasis on measurement and target setting,” said Duncan Young, Sustainability Manager, Lendlease Retail UK, during the conference on this topic. Experiments in this field are starting to show results because, as Paul Edwards, Head of Sustainability at Hammerson noted at the same conference, "it’s not rocket science, it’s simply good business sense."

The next MAPIC takes place from 17 to 19 November 2010.

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