Arricano Company is the Tenant mix Conference 2017 member
On October 19, Hanna Chubotina, Director of Arricano Real Estate PLC Retail Space Department, took part in the Tenant mix Conference 2017 on "Competent tenants’ selection is the key to the shopping mall's and retailer's success". The conference was organized by the Shopping Malls Club of Ukraine and Belarus (Malls Club Ukraine & Belarus).
The event's participants, more than 100 development companies' representatives, managers of shopping malls that are existing and under construction, heads of the rental department, rental managers, Ukrainian retailers, consulting companies’ representatives, brokers, retail real estate consultants, discussed the efficiency of the shopping mall's tenants pool in modern realities.
Four big themes were discussed at the conference panel: Tenant mix Today and Tomorrow: Trends and Perspectives, Experience of the Capital and Regional Shopping Malls' Tenants Pool Changing, What Should the Tenant-Mix Structure in the New Shopping Mall's Generation Be Like, The Ideal Shopping Mall's Tenant-Mix According to the Retailer. Hanna Chubotina, Director of Arricano Real Estate PLC Retail Space Department, shared the successful Arricano team's experience, which provided a technical vacancy in the group's shopping mall, and constantly updates tenant mix in «Arricano: powered management recipes for tenant mix» case.
Hanna noted that the huge potential for the shopping mall's development, the tenants' turnover growth and, as a result, the projects profitability growth in conditions of zero or technical vacancies, was laid in the effective consumer experience management, delicate and focal work with tenant-mix: «The modern consumer, for whom the most valuable asset is time, is ready to vote with his purse solely for the convenient and interesting things. We work in several directions, while improving our projects. This is a delicate and focal work on updating tenant mix, according to the shopping mall's accepted concept and positioning. These are the comfortable atmosphere creation, the technological innovations and services introduction. All that will provide convenience and comfort to our guest and will not leave him indifferent»
Here are 7 recipes in tenant mix management from H. Chubotina, noted in the speaker's speech:
Studying the consumers' behavior gives an understanding of what is convenient and interesting for them. Marketing surveys, offline surveys, and market research provide answers to questions that allow forming a tenant mix that meets the customers' needs.
Updating tenant mix provides emotional involvement of visitors and tenants.
The shopping mall's future or already working tenant effectiveness analysis, including the turnover per square meter analysis, comparison with other operators in the category, the OCR (occupancy cost ratio) share in turnover analysis, comparison with market benchmarks, makes it clear whether the retailer is suitable for the shopping mall.
The forms analysis and their effective use give a resource for development. For example, a household appliances and electronics operators' area reduction in two times led to an increase in such tenants' turnover per square meters in several times.
Joint work with retailers in general projects and programs, including marketing, creates a developing effect for everyone - retailer, lessor, shopping mall.
The technological innovations and services introduction provides convenience, saves time and strengthens the shopping mall's development dynamics impression.
Effective communication with customers and partners ensures minimization of losses - time, quality, good mood, atmospherity. During the conference, the retail trade and real estate trade experts and analysts have also discussed the trends that now affect the tenants’ pool formation of the shopping malls in Ukraine and the world. Kateryna Vesna, the Head of the JLL in Ukraine Retail Space Department, spoke about the situation in the market in general and the trends in her report: «Who are we waiting for and are we ready to accept them? New brands' release dynamics + the Ukrainian retail real estate market overview». Nataliia Kravets, the Director of Colliers International Commercial Real Estate Department, spoke about «RETROVILLE differentiation in a competitive environment». Rostislav Simonov, the Head of the UTG Strategic Consulting Department, made a presentation on «Changes in shopping malls' forms and tenants’ pool on the market transformations' background».
According to Artem Shlapak, the Head of the Malls Club Ukraine & Belarus project, every day shopping malls more and more understand the visitors' needs, their solvency and expectations of going to shopping sites, which are clearly reflected in malls' tenant mix: «The Ukrainian consumer is very sensitive and shopping malls must adapt and fill their facilities with the required forms of trade, food and entertainment to generate flows».
Tenant mix Conference 2017 became a meaningful and filling with new senses event for 15 speakers, 100 participants, 43 malls, more than 30 retail companies and companies providing services and solutions, representatives from 2 countries and 20 cities.