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FEDESSA AWARDS WINNERSCountry Profile on Switzerland

European Self Storage Survey

Store Designs May Be Registered As Trademarks

Self Storage

Volume 4, 2014

Europe

WelcomeMessage from Christian Schmutz the President of the

Federation of European Self Storage Associations (FEDESSA).

Another FEDESSA conference has come to a close and it was a sensational event. Over 370 people attended across the 2 days with just under 120 people joining the facility tour on the Tuesday prior to the conference officially opening. Delegates were treated to some first class speakers, interactive panel sessions and the biggest self storage trade show ever held in Europe. The event culminated in the Awards Dinner where we recognised the achievements of industry operators from across Europe in the gala event for the industry. It all finished with us dancing to an Abba tribute band. I cannot remember so many people dancing at a self storage event before!

There were a number of new FEDESSA initiatives launched at the conference this year. The 2014 Annual Survey was released and the new FEDESSA CEO, Rennie Schafer, presented the results in one of the sessions. This is by far the most comprehensive report into the self storage industry in Europe ever completed, with over 30% of the total facilities in Europe (excluding the UK which produces its own study and report) having completed the survey and additional data on the size of the industry was sourced from other external sources. More data on the industry has been gathered than in previous years, including occupancy rates and industry sentiment. There is more detail on the survey results in this issue of Focus and by now you should have received your copy of the full report by email. If not you can download it from the FEDESSA website – www.fedessa.org.

The website itself was also re-launched at the conference. The site has been totally rebuilt and now has loads of information on the industry for both members and people interested in getting into the industry. The members only section can be accessed by any member of a FEDESSA association and has content such as the UK Self Storage Marketing Guide, electronic copies of the Focus magazine, information on the European Standard and much more. The website also has a search for storage function, where people looking for self storage can input an address or suburb and find their nearest FEDESSA member. I suggest you

log into the website and have a look, particularly to ensure that all your details are current in the search for storage section so that potential customers can find you. The FEDESSA team will be continually updating the website with current information on the European Self Storage Industry.

In the FEDESSA Awards, the Facility of the Year Awards were re-introduced with 2 separate categories, one for independent operators with 2 sites or less and one for multi-site operators. These awards were open to self storage businesses across

Europe and I am pleased that there was such a large volume of high quality entries in these categories. Congratulations to Store and Secure in Bournemouth UK for winning the independent category and Bluespace Self-Storage in Barajas Spain for collecting the major operator category. At the FEDESSA members meeting, held during the conference, there was some discussion within the larger countries such as Spain with regard to holding their own local awards as a precursor to the FEDESSA European awards. The aim is to encourage even more local operators to enter and further recognise the

many achievements within our industry.

The Stockholm conference was also our chance to say farewell to our retiring secretary general, Rodney Walker. Throughout the event members that have been assisted by Rodney over the last 10 years took the time to thank him personally, and then during the awards dinner, Paul Fahey gave a presentation on Rodney’s achievements within FEDESSA and presented him a gift on behalf of the FEDESSA board and its member associations.

I now look forward to the Ski Workshop being held in Chamonix on February 11 and 12. This is another new initiative, a smaller more intimate event aimed at self storage executives who want to mix some strategic information sessions with time on the slopes. After this it will be off to Amsterdam for the next European Self Storage Conference, October 6&7. Mark the dates in your diary now and look out for more information in the New Year. I wish you all the very best for the Festive Season and hope you have a safe and prosperous 2015.

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Editorial: News items and articles on all aspects of the self storage industry are welcomed, and should be sent, together with photographs if appropriate, to: [email protected] The SSA UK and FEDESSA, or any of its agents/representatives/staff, cannot accept any legal liability for the accuracy of the news items and articles contained in the magazine,

which have been obtained and are reproduced in good faith. Advertising: Advertising enquiries to [email protected] Printed by Johnsons Printers of Nantwich, Tel: + 44 (0)1270 625 207 e-mail: [email protected]

I now look forward to the Ski Workshop being held in Chamonix on February

11 and 12, a smaller more intimate event aimed at self

storage executives

FEDESSA Feature ..........................4

Country Features

Switzerland .....................................5

Swiss Operators

Zebrabox ........................................8

HOMEBOX .....................................9 Casaforte .....................................11 Secur’Storage ...............................12

FEDESSA News ...........................10

EU Legislation .............................13

European Survey .........................16

Company Profile Samosklad ....................................19 Bluespace Barajas .........................22

Award Winners ...........................20

In this issue...

Those of you who managed to attend this year’s European Self Storage Conference and Trade Show will already be aware of how successful it was and how our Swedish hosts made everyone so welcome – and, of course, not

forgetting the sponsors who once again, together with the team at SSA UK, helped to make the whole event such a success. Our thanks go to all.

For those who were unable to make it to the conference and for those wanting a recap, a full summary is included within this issue of ‘Focus’.

Here in the European section we have concentrated our efforts on profiling an important country seated at the crossroads of Europe.

Whether your vision is of cheeses, chocolates, fondues or of snow covered mountains, shimmering lakes and meadows filled with the sound of tinkling bells and the sight of brown-eyed beautiful cows grazing in Alpine meadows – Switzerland has a way of kindling positive thoughts in all of us. But, what about the political, business and other perspectives and the role of self storage in this picture-perfect independent country?

We have put the tourist aspects aside in order to bring you a country profile, based more upon the country’s commerce, supported by company features on each of the 3SA (The Swiss Self Storage Association) members.

Further afield we hear the news about yet another new facility in Russia as the self storage market increases its foothold in this vast country and, just over the border in Finland, we illustrate an interesting take on what can be achieved during the launch of a new facility.

As usual, we also bring you news of some legislation items including an interesting article, following a ruling by the Court of Justice of the European Union, relating to Trademarks.

Finally, whilst the official ‘Good-byes’ have already been said and his work acknowledged, I politely remind you that our long serving FEDESSA General Secretary, Rodney Walker, makes his exit from the organisation as he moves into a well-earned retirement this month. A chance, therefore, for me to voice my personal thanks for his friendly but firm leadership, attention to detail and willingness to help not only me but anyone seeking his respected experience and knowledge. I have very much enjoyed working alongside Rodney and I take this personal opportunity to wish him a very happy and healthy retirement together with his partner Sandy – in the hope that they find many sunny days in their beloved garden and time to enjoy the host of other hobbies and activities that keep them so fit and young.

Tony Richman

FEDESSA European Representative

4Self Storage Europe - Volume 4, 2014

FEDESSA Feature


Country Feature

Country Overview The Swiss Confederation has a population of 7.7 million (according to UN statistics 2012). The capital is Bern but the largest city is Zurich.Switzerland’s geographical position in central Europe and studious neutrality has given it the access and political stability to become one of the world’s wealthiest countries. Switzerland has for centuries been a neutral state, which means that it cannot take part in armed conflict unless it is attacked. Its forces can only be used for self-defence and internal security. It joined the United Nations only in 2002. Surrounded by the European Union, it has vacillated between seeking closer engagement with its powerful neighbour and other international organisations, and preferring a more isolationist course.Although it lies close to the geographical centre of Europe, and most of its trade is with its European neighbours, it is not an EU member. A referendum in 2001 went against opening talks on joining.Membership of the European Economic Area was also rejected by referendum in 1992 and Swiss-EU relations are now based on an extensive range of bilateral agreements.Ties became closer in 2005 when a referendum backed membership of the EU Schengen and Dublin agreements, bringing Switzerland into Europe’s passport-free zone and increasing cooperation on crime and asylum issues. A further referendum the same year opened the job market to workers from the 10 newest EU member countries. However, in 2013 more immigrants from the EU entered Switzerland than ever before, the year before Swiss voters put their country at odds with Brussels by backing a cap on immigration from the bloc. Immigration quotas for EU citizens are now set to be introduced from 2017. The State Secretariat for Economics (SECO) has said in its annual report that the limits, given Switzerland’s current economic and demographic conditions, could have negative repercussions on the country’s growth potential and labour markets, while the department’s director praised the impact of the free-movement pact. Whatever its fate may be, the current free movement of people agreement has strengthened the competitiveness of business in Switzerland and has enabled the Swiss economy to post above-average growth in recent years.During the last few years, Switzerland has gradually begun to accede to international pressure to allow greater scrutiny of its famously secretive banking sector, amid growing concerns about money-laundering and the financing of terrorist groups. The country forms a European cultural and linguistic crossroads, with about two-thirds of the population speaking German, around one-fifth French and about 7% Italian. Romansch, the fourth national language, is spoken by less than 1% of the population. The people are given a direct say in their own affairs under Switzerland’s system of direct democracy, which has no parallel in any other country.They are invited to the polls several times a year to vote in national or regional referendums and people’s initiatives. Constitutional proposals and major international treaties must be put to the vote, and parliamentary decisions can be subjected to a vote by collecting 50,000 signatures.Main exports are machinery and electronic, chemicals, precision instruments and

Switzerland and the 3SA Members

continued on page 6

watches. GNI per capita is US $76,350 (according to the ‘World Bank’ statistics, 2011).Media Broadcasting is dominated by the public Swiss Broadcasting Corporation (SRG/SSR) which operates seven TV networks and 18 radio stations. Most of its funding comes from licence fee revenues; a smaller proportion comes from TV advertising.Private radio and TV stations operate at a regional level. Television stations from France, Germany and Italy are widely available, thanks in part to the very high take-up of multi-channel cable and satellite TV. Some German commercial broadcasters provide tailored versions of their channels for the Swiss market. Switzerland’s press has full editorial freedom and mainly operates along regional lines which reflect linguistic divisions. By the end of 2011 there were 6.4 million internet users (Internetworldstats).So, how is Switzerland’s self storage industry?The Swiss Self Storage Association (3SA) has 5 member companies with total of 15 facilities. The overall number of facilities in the country is estimated to be around 30. The big sites, varying between 2500 to 7500 net rentable m2 each, are concentrated in the 5 urban areas of Zurich, Bern, Geneva, Basel and Lausanne while the smaller sites, many less than 1000m2 are mainly located in more suburban regions.3SA is a respected and strong supporter of FEDESSA, borne out in part by the fact that Christian Schmutz, from Zebrabox, is the President of 3SA as well as being the current President of FEDESSA. Cesare Carcano, from Casaforte, is the current Vice President of FEDESSA.During interviews with the 3SA members it is clear that Swiss customers have immediately understood the quality and usefulness of the self storage service. Indeed, significant help in development of the national industry can be accredited to the high quality and safety of the facilities of the 3SA members.Swiss culture is really quite conservative and customers need to be confident about the reliability of the products and services they buy. The successful growth of the self storage industry in Switzerland is therefore testament to the quality and professionalism created by founding operators and their operations.Despite being one of the wealthiest countries in the world, Switzerland has not escaped the effects of the recent global economic crisis but, in general, the 3SA members agree that the economy is now quite good, compared to the rest of Europe, and positive increases for all economic/business trends are hoped for in the coming months.Existing businesses are expected to grow and it is most probable that a number of smaller operators, in particular 1-facility companies, will enter the market. The positive view is that the arrival of new operators will help improve awareness of the industry by the population, leading to faster growth and better recognition of the industry as an important sector for the entire economy.However, on the downside, finding new locations for big sites in urban areas is becoming a real challenge. Land prices are very high and old industrial areas are systematically being re-zoned into housing areas. Furthermore, every new apartment building is constructed with a storage room in the cellar, which brings about ‘natural’ competition to the self storage industry. The effect of these measures is that storage rental rates are not yet reaching the top scores that can be seen in some other European metropolitan areas. A fair dose of opportunity and patience is therefore still needed before the Swiss self storage market shows continued speedy growth.However, as can be seen in the Swiss company profiles that follow in this issue of FOCUS, a number of operators are ready to speculate on further positive growth, by engaging in plans to expand their number of sites in 2015 and 2016.Tony Richman, FEDESSA – European Representative


Country Feature continued from page 5


Swedish Operators

Zebrabox – providing top end storage solutions in SwitzerlandZebrabox was founded in 2003 by Christian Schmutz with the support of private entrepreneurs and opened its first site in the heart of the city of Lausanne. At that time, the self storage business was at its very beginning in the country, and the mix of real estate, retail business and growth perspectives were attractive to entering this new venture. Christian informed us,” In 2008, Zebrabox acquired the single facility operator Ministorage in Zurich, which originally opened in 1979. We believe this was probably the first self storage site operating in mainland Europe and nowadays one of the biggest with over 7000 m2 net rentable”.

During the period from 2009 until 2013, another 5 sites were opened or taken over in different locations throughout Switzerland.

Currently, Zebrabox is the Swiss market leader with around 5000 units at the disposal of its customers. Most of the sites are now fully built out with net rentable space totalling around 23000m2 for the 7 sites. The individual sites range from 1300 to 7200m2. The latest opening is a Zebrabox facility integrated into the biggest shopping mall in Switzerland, in Tivoli Spreitenbach, adding another experiment to the choice of locations.

Zebrabox provides top end storage solutions with an alarm on each individual unit, CCTV coverage and climate optimised units to make sure that a temperature of over 10 degrees is maintained throughout the winter months. In a country such as Switzerland, this is crucial for the conservation of furniture and other items, for example, books, photos, etc.

Christian added, “The philosophy of Zebrabox is based around trying to do the most we can to make storage as convenient as possible for its customers. As the Swiss market leader, we position ourselves at the top of the market in terms of quality of storage rooms and service offered. As an example, we always offer a backup solution in case elevators are necessary to reach a given floor, so the customer can access his unit even if one

elevator is out of order. The brand Zebrabox allows us a clear communication strategy around it, with a strong element of differentiation towards direct or indirect competition. We believe that this top end positioning has to be felt by the customer in every detail of the store. Domestic customers represent around 70% to 80% of the users with the balance made up by commercial business users. Some of the larger business organisations are also starting to discover the advantages of having a single storage provider throughout the country”.

Large Swiss urban towns and cities are the main target area for Zebrabox as, per the company’s view, these offer the best potential customer-base for the size of sites that Zebrabox wants to operate. With existing sites already built to capacity, Zebrabox is expecting to open additional facilities during the next 2 years, in order to complete their national coverage plan throughout the territory.

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Swiss Operators

Self Storage Europe - Volume 4, 2014

HOMEBOX - Quality Service Package for the Swiss Market

HOMEBOX was the first self storage operator to open in France. The company was founded in 1996 by Nicolas Rousselet, who is the CEO of Groupe G7 (www.groupeg7.com). Today, Homebox has a portfolio of almost 70 facilities covering many regions in France as well as one in Switzerland. The Swiss facility, in the city of Vernier, was opened at the beginning of September 2009 and became a member of the Swiss national association for self storage operators - the 3SA - in 2010.The facility is based in a renovated building of 3500 m² and is located just 10 minutes away from Geneva city centre.The building now houses 600 units spread over 2 levels and ranging in sizes from 1.5m3 upwards. The units are accessible to customers 24/7, and the facility is fully equipped with CCTV, alarms, ‘box watchers’ in each storage unit, and fire detection. Analysis shows that the space in HOMEBOX’s Swiss facility is used by both private and business customers: the breakdown equating to 80% private and 20% businesses compared to 70% private and 30% businesses in France. Individuals primarily use the units during a move to store furniture as well as many other chattels and belongings. However, the proportion of those using it as a ‘perennial house extension’ increases year after year, probably due to a lack of sufficient storage space in their homes. As far as business customers are concerned, the prime objective is to optimise their supply chain and operating costs. They usually store tools, stock, ‘point of sales’ items, archives, spare

parts and other items akin to their business operations.HOMEBOX concentrates its marketing to advertising primarily online by focusing its expenses on search engines but also uses offline media such as national TV, billboards, Yellow Pages and leaflets. As the main thrust of its quality service package HOMEBOX emphasises 5 main commitments to its customers: flexibility, our customers stay as long as they wish and may at any time change their minds or requirements; transparency, with contracts and specifications for self-storage being clear and without asterisks or surprises; safety, secure self storage

centres with cameras, burglar alarms and fire alarm systems; service, offering additional services over and above the standard unit rental such as relocation assistance, selling cartons, handling business on behalf of the customer and hire van; proximity, by having centres strategically placed to serve customer needs.The website also offers a useful page giving potential customers the opportunity to estimate the size of the unit they will require.As the general economic picture gradually improves HOMEBOX is once again actively looking for new development opportunities in both Switzerland and in France.

In addition to HOMEBOX’s own facilities, entrepreneurs who are willing to embark on the adventure of self-storage and people already operating self-storage centres as independents can take the opportunity of joining the HOMEBOX franchise scheme to benefit from the strength of the extensive HOMEBOX network.

As the general economic picture gradually improves HOMEBOX is once again actively looking for new

development opportunities in both Switzerland and in

France.


Swiss Operators


FEDESSA News

Cityvarasto – ‘Opening-Event’ for their new storage facility in Turku (Pitkämäki), FinlandCityvarasto has opened a new facility in Turku, Finland. The site is not quite ready but, as the units are already in place and the inside of the facility is ready, the units have been made available to rent and an ‘Opening-Event’ was arranged in September 2014. The opening was coordinated with a reality TV-programme called Rojua, rojua (‘Junk Road Show’).

During the programme art experts, design experts and scrap metal dealers value items that people have. As such one of the episodes was filmed at Cityvarasto Self Storage.

Fortunately, the new facility still had some empty space where it was possible to hold a ‘flea market’ at the same time – all the ‘flea market’ tables and stands were provided freely to each of the private stallholders.

...And that was not all!

Cityvarasto also held a charity auction. The money raised was given to the Yeesi organization which is a youth mental health association in Finland (www.yeesi.fi ).

This event was created as a way of trying to find new and innovative ways to help make the self storage business closer to everyday life and more of an integral part of the community.

The marketing campaign was promoted and advertised in the local newspaper, on buses, Facebook, Google and, of course, Cityvarasto’s own website pages. The core message of the event was the charity auction and the flea market which were supported with ‘Junk Road Show’ TV filming. During the day a lot of people visited the Cityvarasto site and, overall, it turned out to be a very successful event.

Naturally, the chance for selling was not forgotten! Cityvarasto sales staff were actively walking among the visitors and taking the opportunity to discuss matters concerning self storage and, as a result, they were able to conclude a number of positive sales during

the day.

Pirjo Onza - Cityvarasto

Cityvarasto also held a charity auction. The money raised was given to the Yeesi organization which is youth mental health association

in Finland

CASAFORTE Self Storage – SwitzerlandThe Casaforte self storage initiative was built on the experience of the Carcano Transport and Logistics group, which evolved from operations in the transportation and logistics sector that first began in 1920. It provided shipping to third parties and postal services and it became an incorporated company in 1933 with a capital of only 40,000 Italian lire.Other companies specialising in related activities grew around this nucleus and in 1987, the group set up a holding company that now fully owns and controls it, A.L. Invest SpA. Today, the group has 150 employees, seven operating platforms in Italy, warehouses covering 55,000 m2, and 100 motor vehicles of various types.Among the group’s companies, So.Ge.Ma. SpA (Società Gestione Magazzini [Warehouses Management Company] grew with the goal of developing a business specialised in building and managing warehouses to be used to store merchandise. Today, Casaforte has facilities in Bergamo, Biella, Brescia, Bolzano, Foggia, Genova, Sanremo, Milano EST - Cologno Monzese, Milano SUD - Corsico, Milano CENTRO - zona Certosa, Novara, Padova, Pistoia, Roma, Trento, Torino nord, Torino sud - Beinasco, Treviso, Busto Arsizio, Varese, Vercelli, Vicenza, Verona, Lugano e Basilea. Understandably better known for its self storage operations in Italy, Casaforte is also a major player in Switzerland where it has 2 facilities. Casaforte was also one of the founding members of the 3SA Swiss Storage Association.Preparation to enter the Swiss market began in 2002 and the first site, in Lugano, became operational in 2004. This was followed with a site which opened in Basel, in 2007. Both facilities are constructed in renovated buildings.The 4 floor Lugano site, with an area of 1400 square metres and 190 units, is at present 95% full and the 3 floor Basel site, with 3000 square metres and 390 units, is running at 73%.The company offers units ranging from 1.5 to 30 square metres as well as security lockers from 1 to 2 cubic metres in volume.All units are alarmed individually and both facilities have heating systems as the Swiss winters can be long and cold. Attention to quality and safety has proved to be a key element in helping Casaforte to branch out into the Swiss market and develop the business.For pure storage purposes the breakdown by usage is approximately 60% by private customers and 40% by commercial users. In addition, some units are used as ‘day

offices’ by clients.Casaforte Suisse is well-organised and well-profiled as far as

marketing and advertising are concerned, making use of radio, TV, website, local newspapers, leaflets and billboards. The company also sponsors local events, for example, music festivals, sports tournaments and golfing events. Additionally, art exhibitions are hosted and ‘Open Door Days’ are held.With business remaining positive and with the reassurance that Swiss customers appreciate the quality and usefulness of self storage services, Casaforte is already planning to open 2 further sites, in Switzerland, during the period 2015/16.

The facilities are open 6 days per week and

access is possible daily from 07.00h to 22.00h.

Customers can gain access by remote control.


Swiss Operators

12

Secur’Storage was the first self storage company to start operating in Geneva with one facility in 2006, which gave them a lot of experience in storage room solutions and the know-how specific to the self storage business.In 2012, the company took a major decision by opening 2 new facilities as the need for storage room grew very fast in the city of Geneva. In a very short window of time, the company reached its historical highs, confirming its position as a serious player in the industry. The facilities are a mix of new and renovated buildings all located near the “la praille” business district. The company now offers more than 1000 self storage units, and is planning to expand with additional sites in 2015 and 2016 as existing sites are now 90% full. In fact, Secur’Storage is about to launch its 4th facility, composed of 280 extra storage rooms which will be ready by February 2015. This increase will mean that the company will be working with over 22,450m3 in net volume.In addition, big improvements have been made to the company’s marketing plan in recent months, in order to reinforce its position against new competitors which have entered the market during the last 2 years. Secur’Storage has launched a new website by refreshing the ‘look & feel’ of their website and by developing a new interactive tool to provide “live evaluation” as well as a ‘frequently asked questions’ section and other detailed help/guidance pages. All the information is made available in both French and English.Secur’Storage joined the Swiss national association for self storage operators – 3SA in 2010.Secur’Storage prides itself on being able to provide storage

units tailored to individual requirements and budgets with areas varying from 1 to a massive 150 m2. Rentals are based upon a minimum of 1 complete month, from 1st to 30th. Rental contracts can be established quickly and storage boxes available within 15 minutes!By providing confidential codes, customers are free to access their units 24 hours a day/7 days a week and/or visit or contact the office during working hours 09.00-18.30h weekdays and 08.00-13.00h on Saturdays. In fact, overall, the company’s policy is to make matters as simple and as flexible for all of its customers. Easy and effortless unloading is achieved by providing trolleys, pallet trucks, elevating platforms and high-load forklift trucks at each facility. All types of wrapping material, to protect customers’ belongings, are made available at attractive prices in the ‘shop area’, emanating from the company’s vast experience for service by its well-known professional moving companies.Security is first on the priority list and in addition to the traceable code number service, all entrances and exits to the buildings are captured and recorded by security cameras – a total of 18 cameras constantly survey the sites 24 hours a day.The breakdown of clientele works out at approximately 70% domestic/private use, 20% by small business and 10% for archive storage. Secur’Storage has also concluded a number of partner-agreements with professional moving companies and truck rental companies to try to be as helpful as possible to customers in meeting their overall requirements.As well as its ‘secure’ storage services it seems the future is also ‘secure’ for this go-ahead company.

Secur’Storage, Geneva, Switzerland - A company that prides itself on ‘Thinking inside the box’!

Swiss Operators


This recent decision may have an important impact on service providers and franchisors.The Court of Justice of the European Union (CJEU) ruled on 10 July 2014 that a retail store design may - subject to certain conditions - be registered as a trademark. The decision is a significant win for Apple Inc., who had sought to register its distinctive store design as a trademark in the European Union. However, the decision also paves the way for a variety of others - such as franchisors, retailers, hoteliers, restaurateurs and professional services firms who operate from premises using a unique design which is not simply functional. These designs clearly may be registered as trademarks in future. Registration has advantages (for example, over the laws of passing off) when seeking to protect and enforce the intellectual property rights in the “get-up” or “look-and-feel” of a company. So what are the implications of the case?The background factsIn 2010, Apple Inc. obtained from the United States Patent and Trademark Office the registration of a three-dimensional trademark consisting of the representation, by a design in colour (in particular steel grey and light brown) of its flagship stores for services within the meaning of Class 35 of the Nice Agreement,

namely for ‘retail store services featuring computers, computer software, computer peripherals, mobile phones, consumer electronics and related accessories and demonstrations of products’.Apple then tried to extend this trademark globally, including registration in Germany. However, the German Patent and Trademark Office (“DPMA”) refused the application on the basis that consumers would not consider the design as a badge of commercial origin (which is a function of a trademark). The DPMA also thought the design was not sufficiently distinguishable from other stores providing electronic products - particularly when the trademark applied for did not contain any indication as to the size and proportions of the retail store. Apple appealed to the German Federal Patent Court, which thought that Apple’s layout had features which distinguished it from other retail stores. Nevertheless, before reaching its final decision, the German Federal Patent Court decided to seek clarification from the CJEU on a number of questions of interpretation of the Trademark Directive.CJEU confirms store designs can be registered as a trademark in the EU.The CJEU3 then considered the three criteria for trademark

European Union: Store Designs May Be Registered As Trademarks

EU Legislation


continued on page 15

13


14

Once registered as a trademark, the trademark

owner can enforce its trademark rights against competitors (or former

franchisees or licensees) who wish to copy the format.


15

EU Legislation continued from page 13

registration under Article 2 of the Trademark Directive, namely:1. the trademark must be a sign;2. it must be capable of graphic representation; and3. it must be capable of distinguishing the “goods” or

“services”.The CJEU held that the Apple retail store layout satisfied these criteria for an establishment where Apple services were to be provided and thought that it was unnecessary for the trademark application to indicate the size or proportions of the store. The CJEU considered the trademark was capable of distinguishing Apple services from other retailers’ services so long as there was none of the usual grounds for refusing registration. The case has been remitted back to the German Federal Patent Court for its final decision on the facts.Implications for retailers, franchisors and others with distinctive premisesIn summary, the Apple decision does not stand for any new principles of trademark law. Rather, the CJEU has merely confirmed that a design for a retail store layout can, in principle, be registered as a trademark. The case is of interest though as it is the first time that the registration of a store layout as a trademark has been approved in principle by the CJEU.The case does not appear to be a landmark case, but a decision which paves the way. It will be of interest to anyone who has a sufficiently distinctive get-up (store colours and the look-and-feel) for premises or a store design. Thus, it will be of greatest relevance to franchisors, other professional services firms and sectors such as retailers, hoteliers, restaurateurs, fast food outlets, etc. If the premises design is distinctive rather

than merely functional of the services on offer, then it may be registered as a trademark. Once registered as a trademark, the trademark owner can enforce its trademark rights against competitors (or former franchisees or licensees) who wish to copy the format. Afterall, when considering taking action against a copycat, relying on trademark rights can be a far

easier route than relying on the complex laws of passing off which can provide a less certain result.The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.VAT group: head office/branch transactions – Skandia CJEU caseOn 17 September 2014, the Court of Justice of the European Union (CJEU) rendered its decision in the Skandia America Corporation case regarding the question whether

transactions between a head office and its branch are VATable if the branch is part of a VAT group. The Court gave a short and clear-cut answer. A VAT group is a single taxable person. The supply of services between the head office and its branch that is a member of a VAT group must be considered to be made to the VAT group as a whole and not to the branch. The supplies are made for consideration and are therefore taxable.Following the position of the CJEU, all head office/branch transactions are subject to VAT if the branch or the head office is part of a VAT group. Head office/branch transactions are only out of scope of VAT if neither of them belong to a VAT group.Belgian VAT legislation already provides that services received by a Belgian establishment from its head office/branch are subject to VAT if the Belgian establishment is a member of a Belgian VAT group (article 19bis BE VAT Code). A similar provision did not exist for services supplied to a head office/branch established in another country. This anti-channeling provision is no longer required as the CJEU confirmed that such transactions are subject to VAT.The CJEU decision could have a significant impact on intra-group transactions where one establishment is a member of a VAT group:- additional non-deductible VAT in the case of a business with

limited right to input VAT deduction- impact on the VAT deduction pro rata- VAT liability- VAT invoicing, reporting and Enterprise Resource Planning

(ERP) set-up changes.In some cases, the impact of this decision could be positive (e.g. an increase of the right to deduct) and businesses could therefore consider the retroactive use of this case.As this judgment applies in all Member States and for cross-border transactions, a review in all Member States where businesses operate using VAT groups that include branches/head offices as members is recommended.(For any questions concerning this case, please contact your regular accountants/financial advisors.)

European Survey

European Self Storage SurveyDuring the 2014 European Self Storage conference the latest FEDESSA European Self Storage survey was released. This year’s survey was completed by a record number of respondents and in addition, further data on the size of the industry was obtained from other sources and further market research. There were also additional questions asked of operators in relation to operational items and their thoughts on future trends in the industry. This has resulted in the most comprehensive report into the self storage industry in Europe to date. The full report can be downloaded from the FEDESSA website www.fedessa.org. Here are just a few features of the report to give you a taste.France and the Netherlands continue to have the bulk of self storage space, with Germany and Spain the next largest markets, followed closely by Sweden. If the UK is added into this mix then they account for 46% of the space, reducing France to 13% and the Netherlands to 11%. There appears to have been more new space added in the UK than other European countries in the last 12 months.When considering the amount of storage per person, the

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Percentage of Storage Space in Europe excluding the UK


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UK continues to lead, although very closely followed by the Netherlands and Sweden, who have around 3 times as much storage space per person as the European average of 0.015 square metres per person. If you compare these figures to the USA, which has 0.68 square metres per person, or even Australia, which has 0.16, it is reasonable to assume that there is significantly more growth potential in the European market. Care must be taken however when comparing international self storage markets, as local conditions will significantly affect the viability and size of local markets. For example, in the USA land is cheaper and generally more readily available. This contributes to self storage being sold at much cheaper prices than in Europe. It is highly unlikely that the self storage industry in Europe will reach the penetration levels of the USA.The survey this year included data on the source of self storage enquiries. Not surprisingly the web accounts for the majority of enquiries. It is interesting to note that this figure has quite a large variance, with many sites receiving close to 75% of their enquiries through the web and others less than a third. Note that telephone directories are down to only 8%, a small figure given that 10 years ago the

majority of enquiries would have come from this source. Site exposure remains the second largest source of customers, this reinforces the long held belief that a prominently located site is a significant benefit to any self storage business. It will be interesting to see if this changes in the coming years, as reliance on the internet continues to increase, particularly with improved

internet connectivity on mobile devices.There were some significant variances between countries on this data. For example, in Belgium the telephone directory accounted for 15% of enquiries and in France and the Netherlands it was 13%. Conversely, in Finland there were negligible enquiries from telephone directories and in Switzerland it only accounts for 3% of enquiries. In Spain 67% of enquiries are web based and in Italy web enquiries only account for 45%. This further demonstrates that self storage is a local product and there will be variances

in the market between countries and, in fact, between regions within the country. When thinking about developing a new self storage site it is important to complete a local market analysis rather than relying on country or regional data.

The survey this year included data on the source of self storage enquiries. Not

surprisingly the web accounts for the majority of enquiries.

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sqm of storage per person


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Samosklad is a British company with 15 years’ experience in working abroad and recognised as one of the leading self storage businesses in Moscow, Russia with a strong brand and high level of service. The company provides flexible, safe and economical self storage solutions for personal and business users and also offers insurance and transportation services through its partner Gruzovichkof.ru.The Board of Directors of Samosklad Self Storage have recently announced the launch of their new warehouse and office facility located at the intersection of the Entuziastov Motorway and MKAD (Transportnaya Street., d. 2A) in Moscow and purchase of an existing warehouse in central Moscow which is currently being redeveloped and expected to open in 2Q 2015.This major project has brought the company’s present Russian portfolio to a total of 5 facilities. Samosklad’s latest facility is Russia’s first self storage facility which is open 24 hours a day, 7 days a week. The storage facility, in its own enclosed area, is equipped with the latest access, alarm and automatic fire safety systems and conforms to all local and state regulations. The system of

multi-level alarm, day and night presence of security guards and video surveillance provides important security reassurance. Customers have access to the warehouse section by use of a personal PIN, or by purchasing a magnetic key card. The building has both a passenger and loading lift and incorporates a temperature control system, to make sure that internal warmth is maintained when outside cold periods fall below 12° C.Samosklad customers have free use of trolleys, loading equipment and parking. The new facility, when fully fitted out, will have approximately 1000 self storage units ranging from 1 to 60 sq. metres and has small offices also available for rent which have proved particularly popular. Samosklad points out that clients generally need self storage services in times of moving or refurbishment, but some clients need seasonal storage such as the storage of car tyres, sports equipment or seasonal clothing.With a total investment of over $25 million over the next 5 years, the company is planning to open 15 or more facilities in Moscow, with a total net lettable area of 100,000m2, as well as considering opening a branch in St. Petersburg.

The Italian “Self-Depositi” Industry is dominated by two leading players CaSaforte and EasyBox, both established in 2000.Their 22 and 7 stores respectively represent the majority of the stores in Italy. Despite many years of being each other’s sole and arduous Self-Storage competitor in the cities

of Rome, Milan, Genoa and Turin, CaSaforte has just been awarded a 4 year contract to manage the EasyBox facilitiesPaul Fahey President of EasyBox who negotiated the contract with Cesare Carcano CEO of CaSaforte said “Following the unanticipated departure of the entire previous executive management team in May this year I faced a challenge to find a new CEO. But with the industry being so small in Italy I had little prospect of finding someone with relevant industry experience.My role at EasyBox when appointed in 2013 by its owners (London Based listed investment Fund “Caledonia Investments PLC”) was to lead an extensive profit improvement program. “The target was to double the company’s EBITDA before selling

the company within 2 or 3 years, most likely to a leading European or U.S. operator who could use the EasyBox portfolio and established brand as a platform for a roll out. This in a market that is one of the largest and yet most under-penetrated in Europe“This policy has not changed. Therefore, in the likely absence of a suitable local candidate for the CEO role and the desire for flexibility with the appointment, ahead of a disposal in the short term, I approached CaSaforte to see if they were interested in managing their main competitor’s stores. I am pleased to say they were.Cesare Carcano said “We are delighted at CaSaforte to be working with Paul and the EasyBox team. Clearly we had conflict issues to overcome when structuring the arrangement, but we were able to deal with these challenges partly due to the high level of mutual trust that Paul and I have developed working together as Directors of FEDESSA for the last 10 years.The two companies have agreed that promoting the sector generally, and its new trading term “Self-Depositi” to improve the profile of the industry with Italian consumers, the business community and the financial sector, will be one of their main objectives over the coming months and years.

SAMOSKLAD Self Storage launches new facility in Moscow

The EasyBox “Italian Job” for CasaForte

Company Profile


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The FEDESSA European Conference and Trade Show culminated with a spectacular awards dinner at the Radisson Blu in Stockholm. Just under 300 self storage owners, managers, investors and suppliers attended the event along with some very anxious and exuberant awards finalists. The evening began with a comedic performance and finished with almost everyone hitting the dance floor to an Abba tribute band. During the night a special presentation was made to Rodney Walker, the retiring Secretary General of FEDESSA, and of course the UK and European Industry Awards were presented. This year’s awards field was the strongest ever, with almost twice as many entries as in previous years. There was also the addition of the facility of the year award for both the UK and Europe for both major and independent operators.

OUTSTANDING BUSINESS INITIATIVE Sponsored by Active Supply and Design

SAFESTORE (UK) Facilitating comprehension of the self storage service

Safestore recognise that self storage is a niche service and that just over 60% of the UK’s population don’t know anything about it. Their internal data also showed that the majority of customers select the wrong room size in the enquiry quote process. As a result they redeveloped the functionality and design of the size estimator tool on the Safestore website creating a range

of enriched content and online tools. In addition to aesthetic changes to the existing online size estimator, they now offer multiple visual and interactive tools to allow customers to understand their storage room space in different ways. There are computer generated images of various room sizes to give a sense of realism, online room size videos featuring several of their staff and still imagery of several rooms showcased as empty, filled with items, and the items stacked to show the best use of space. To further aid the customer through the size selection process, they have added an interactive presenter to explain the different options available to them They also have an interactive virtual walkthrough of a store where the customer can take a tour and view different room size options.

CHARITY INITIATIVE AWARD Sponsored by Reason Global

CITY SELF STORAGE (SPAIN)City Self Storage are dedicated to taking care of their customers, to show them that they care and that they understand the radical

Award Winners

Award Winners


changes their society is experiencing. They are acutely aware of the numbers of individuals and businesses that are suffering today in the Spanish economy. They have responded to these needs by creating innovative and effective charity initiatives that benefit the whole of society including their customers. They collaborate with and support their communities during this time even if it requires an expense with no future financial returns. As a result of this approach, City Self Storage now support over 7 significant charity initiatives from the Red Cross – 1kg of food for every new contract - through to providing blankets to the local dog shelter and support for people that have lost their jobs in the area. They work with the local community to ensure these initiatives really make a difference in their area.

MANAGER OF THE YEAR Sponsored by RADical Systems

ALI VELAYAT – BIG YELLLOW (UK)Ali is extremely enthusiastic in his role and has a great understanding of the needs of customers and staff. He recognises the fact that every storage customer is an individual with their own story and reason for needing self storage. This reflects in the outstanding results he achieves in every store he works in. Since managing Chiswick, Ali has helped drive the store forward significantly with a 220% increase in occupied space and a 217% increase in revenue over two years. Ali has also worked tirelessly to nurture business development in his local area, raising the awareness of self storage and Big Yellow. He has explored opportunities to work with the local community and recently ran joint projects with local councils and large organisations such as SKY, GSK, Worley Parsons and Thames Water. He has also been involved in community work in local schools mentoring business studies students and giving them an insight into the business world.

BEST FACILITY - INDEPENDENT OPERATOR Sponsored by Rooks Rider

STORE & SECURE SELF-STORAGE CASTLEPOINT UK

Store & Secure are a family-run business which puts customer service and being part of the community as a priority. Every customer is treated as a ‘guest’, that includes providing them with tea, coffee, biscuits and even ice cream in the warmer weather! They have an immaculately presented site which shows their impeccable attention to detail. The staff are thoroughly involved in the local business community so that they are the top of mind storage solution for all the local businesses. All this combined with their complete commitment to customer service in everything they do has allowed them to produce performance results that are well above the norm for their location.

BEST FACILITY - MAJOR OPERATOR Sponsored by Universal Storage Containers

BLUESPACE SELF STOARGE – BARAJAS SPAINBluespace expanded their facility into a neighbouring building to become the ‘Biggest Store in Madrid’. The entire construction and fit out process took just 3 months. Through a targeted marketing campaign they then brought in 250 enquiries in just one month and filled up 1,000 square metres of space in 3 months all while maintaining pricing. This achievement is made all the more significant considering the economic climate in Spain.


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Bluespace Barajas – Major Operator European Facility of the YearBluespace seized on an opportunity to acquire the neighbouring building to their Barajas site at a time when it had an occupancy of over 90%. The existing store had a Net Rentable Area of 5,000 square metres, the new expansion grew this to 6,500 square metres making it the largest self storage store in Madrid.Bluespace took a strategic decision to expand the Barajas facility at a time when their existing Madrid portfolio of 8 stores had reached 90% occupancy. With the company´s plans to continue expanding, Bluespace adopted a two step approach. First, increase revenue through active price increases in all their Madrid stores. Secondly, expand successful stores like Barajas to increase revenue through new capacity.

The new building was converted into a state of the art third generation self storage store in only 3 months from when construction started. Once opened, the staff at Bluespace managed to fill 1000 square metres of new space in only 4 months, all while maintaining pricing levels. This was done largely on the back of a strong online campaign focussing on the date of the opening. Bluespace also engaged in targeted local marketing actions such as Barajas airport businesses,

local customers and universities. The result was 250 sales leads generated in 1 month, the company’s all time record! Barajas is a brilliant example of how a good team works well when implemented at a local level and can increase revenue for a company. Given the high occupancy at many of the surrounding Bluespace sites, they are now redirecting customers to the Barajas site, rather than potentially losing them to competitors. Bluespace Barajas is not only a superbly constructed and fitted out modern self storage centre with fantastic street appeal, it has the management team and operational staff to capitalise on this. The store has demonstrated exceptional customer service and a sales driven philosophy that has resulted in an outstanding level of performance from the store. A deserved winner of the best Major Operators self storage facility in Europe.

Company Profile


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