Christophe NOEL

Benjamin MESUREUR

Gil ARBAN

What will keep tomorrow's European customers

coming to physical malls and stores…

Strategic consulting,Marketing & organizationswww.dia-mart.fr

Customer research,Mystery shoppingwww.cote-clients.fr

Retail design,Visual merchandisingwww.uxinsitu.fr

Dia-Mart is the French member of Ebeltoft

Attractiveness Customer experience Commerciality

Cross-channel Digital In-Store

Clothing

Beauty

Housingequipment

FoodDIY

Premium

RealEstate

Strategic

Concepts

Ad Hoc

Mystery shopping & Satisfaction barometers

Quali

(focus groups, interviews…)

Customer Orientation

COS®

100,000 consumers surveyed / 50 brands/stores / 130 malls in Europe

Why do we have to worry about declining

traffic in shopping centers and stores ?

+1.0% +0.5%

+1.3% +0.2%

+1.7%

-1,2%

-1,3%-0,8%

-1,7% -0,1%

90

92

94

96

98

100

102

104

106

2009 2010 2011 2012 2013 H1-2014

A sustainable erosion of footfalls

Source: CNCC

Footfalls evolution in France

Unibail Rodamco(rebased to 100)

Shopping centers(rebased to 100)

105

95

Economic stagnation + Budgets’ trade-offs not in favor of Retail

= STABILITY OF CUSTOMERS SPENDING

+ 3% commercial m2 per year + ½ pt internet market share

= MECANICAL LOWERING of TURNOVER per M² of 3-4%

Declared evolution of the visit’s frequency

More and more often Less and less often

-30% turnover for city-center stores during the weeks following the

opening-5% to -7% traffic since then

Source : http://newsinmarseille.com//

Opening example of the new mall in Marseille « Les Terrasses du Port »

City Centers

Shopping Centers

18% 39%

15% 44%

Not only a matter of visiting malls…

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

1960 1970 1980 1990 2000 2008

Eu

ros p

ar

hab

itan

t

Communications

Santé

Logement, eau, gaz, électricité etautres combustibles

Transport

Autres biens et services

Loisirs, culture, restaurants et hôtels

Meubles, articles de ménage etentretien courant de l'habitation

Education

Produits alimentaires et boissons nonalcoolisées

Articles d'habillement et chaussures

Boissons alcoolisées et tabac

Note : Les postes sont présentés suivant l’ordre de croissance la plus rapide ; * en volume : corrigé de l'effet de l'inflation.Source : Insee, comptes nationaux.

Households’ final consumption expenditures by type

2.655 €

3.750 €

Communications

Health

Housing, water, gas,

electricity & other fuels

Transport

Other goods & services

Leisure culture, restaurants

Furniture, houseware,

everyday maintenance

Education

Food and drinks (excl. Alco.)

Clothing and shoes

Liquor & tobacco

Note: expenditure types are shown in order of fastest increase ; * in volume : inflation effect corrected

Source: Insee, national accounts

Eu

ros p

er

res

iden

t

1.360 €

3.106 €

+95%

+21%

You need to create your attractiveness

Shopping in the 60’s Shopping in 2014

Shopping remains a leisure activity

Making the customer’s path much smoother

La Halle

UMPQUA Bank Beaugrenelle

Atlantis

Comfort VS Sophistication

52%

43%50% 52%

39% 38%

51%47%

35% 36%

48%40%

22%29%

34%

8%17%

10%5%

13%

3%9% 7%

25%16%

7% 6%

38%

17%

7%

% Very

satisfied

% Dissatisfied

Some basic steps of customer’s path

still need to be better addressed

Digitalization to deliver

efficiency

Digitalization to entertain

or to enlarge the offer?

We have enough high tech at

home. We don’t need to come here

to place an order online.

Digital In-Store: a lever of efficiency first!

The main level of stimulation: the offer

Capacity to develop customer delight

Capacity t

o d

ecre

ase c

usto

mer

dis

satisfa

ction

high

lowlow

high

BONUS

PERFORMANCESBASICSNegative impact if

badly rated

Positive impact if

well rated

No impact if badly

rated

Positive impact if

well rated

Negative impact if

badly rated but no

impact if well rated

No impact if

well or badly

rated

SECONDARY

Different kinds of expectations

Capacity to develop customer delight

Capacity

to c

reate

custo

mer

dis

satisfa

ction

high

lowlow

high

• Safety

• Cleanliness

• Ease of purchase / efficiancy

• Advices throughout the visit

• Salesmen availability

Basics

• Choice of brands/stores

• New products offer

• Choice of products

• Where I feel good / Comfort

• Confidence in the brand

• Modern retailer

Performances

• Price-quality ratio

• Competitive prices

• Salesmen competence

• Services

Bonus

• Best prices guaranteed

• Committed to substainable development

Secondary

The offer, at the center of expectations

On average, 2,1 stores visited

100 visitors x 2,1 stores = 210 visits

100 visitors x 2,5 stores = 250 visits

The increase in real traffic for the stores

+20%

Visible part of traffic

for retailers

AWARENESS OF RETAILERS Customer No customer

Food 88% 58%

Locomotives 59% 32%

Recent stores 44% 18%

Stores 36% 17%

The available offer often remains a high

potential to develop

More than 200.000 observations

December-Christmas vs Standard period in March

Attractiveness: 5% vs 7%Have stopped and/or looked at the shopwindow

4% vs 5% of customers looked at the

shopwindow without stopping

1% vs 2% of customers observed the

shopwindow and paused for a moment

SHOPWINDOW IMPACT

0,31% vs 0,59%

of customers entered after observing the shopwindow

The importance of shopwindow, especially

during periods of weak business !

Which communication for the malls ? Which communication for the retailers ?

They have to tell the customers that this brand is

the only shop of this brand in this area

Eleven Paris, it’s not known by everyone:

what do they sell exactly?

I would love to have new shop brands

in my town! No, I didn’t know this shop brand!

Is it new?

How to stimulate the offer?

I once discovered the Zodio store, it’s great!

Why don’t we have it here?!

Can’t wait for Primark

to come here!

In the bigger towns, they expect a more original offer

The access to the « basic shop brands » is a constant expectation

The offer has to be renewed in order to appeal the customers again

We need to discover new products

and brands! It’s always the same stuff!

They open new malls but it’s always the same

brands!! Here we have 4 H&Ms, 4 Celios ..

We don’t have the basic shops!

We miss Zara, Ikea, H&M,

Castorama, Fnac…

When I first came to Nice I thought it was too

old fashioned here. You could find all the stuff

the Parisians didn’t want to wear!

Customer’s expectations towards the offer

Boosting traffic with new engines

We don’t want to spend all afternoon

buying groceries….

... We prefer to find a cool place to buy some stuff,

eat something and have fun with the kids.

Evolution of visit’s drivers in shopping centers

Food

Shopping

Paid leisure

(cinema, restaurants…)

Free leisure

(walks, animations…)

2000’s

63%

42%

4%

1%

2014

48%

53%

9%

9%

Projection

2020

40%

60%

15%

15%

110% 130%119%

Mixed scenarios of visit keep increasing

Let’s buy!Efficient and basic shopping

Let’s buy in a pleasant place! Improved forms of shopping pleasure

I enjoy life + I buyCombine shopping and leisure

in a nice experienceA wider purpose and a new

concept

The mass consumption

temple !

Theme malls with walking

facilities

Enjoy yourself rather than only buying!

A mixed offer of services

Shops take the initiative of animations

Affordable leisure is preferred

to adventure leisure

Buying products is no longer the only

reason to come

The dining Experience Unibail-Rodamco

Why will restaurants play a central part in

the new orientation of the malls?

Adapted offers to the needs of modern families

SHARING AUTONOMY&

&

A family day where

no one gets bored!I can go there with my children. We can spend time

together and we can also split and go for each one’s

activities and meet again later for a bite.

A new range of malls for both

collective and selfish needs

Benjamin Mesureur

Directeur associé

E-mail : b.mesureur@coteclients.fr Gil Arban

Directeur associé

E-mail : g.arban@coteclients.fr