((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Diana Mandia and Federica Mileo
Shopping center operator Klepierre LOIM.PA is focusing on Europe’s most dynamic and wealthiest major cities and offering experiences beyond shopping to compete with fast-growing online retailers, its chairman told Reuters on Tuesday Jean-Marc Jestin.
Shein, which sells online in more than 150 countries, has established itself as a major player and will account for nearly 20% of the global fast fashion market in 2022, overtaking Inditex’s Zara ITX.MC and H&M HMb.ST, both tenants of Klepierre.
“I don’t believe in the disappearance of physical retail, but rather in its concentration. So all our work has been to focus on the big cities and the big shopping centers, which are the most dynamic,” Mr. Jestin during an interview.
Klepierre tenants, which also include LVMH-owned cosmetics distributor Sephora
LVMH.PA, Tommy Hilfiger, Lacoste and Apple AAPL.O, are seeking more glamorous, cutting-edge shopping centers with dining and entertainment offerings, while also developing online services, it said. he declares.
Klepierre offers yoga and dance classes, concerts and films to encourage people to enter its shopping centers.
They spend their money particularly on sportswear, sports equipment, health, beauty and personal services – covering brands such as JD Sports
JD.L, Adidas ADSGn.DE, Foot Locker FL.N, Rituals and Sephora, Mr. Jestin said.
Retailers are now much more diverse, he added, with brands such as ABF’s ABF.L Primark, Normal and Action attracting both budget and more affluent customers.
Furthermore, online commerce can represent up to 35% of sales in Klepierre shopping centers, compared to 5 to 6% around ten years ago, declared its president.
“The brands we work with today are omni-channel, that is to say they now achieve between 20 and 30% of their sales online, and some are increasing, like Mango, up to 40%, which means they need fewer physical stores and are therefore more selective
Mr. Jestin said that 10 years ago, Klepierre had 330 shopping centers, compared to just over 70 today.
“It’s a good thing that we made this change, because if we hadn’t, I think we would have a lot of shopping centers today where it would be difficult to attract retailers and customers,” Mr. Jestin said.
As part of strengthening its presence in major European cities, Klepierre announced on Tuesday the acquisition of the RomaEst shopping center in the Italian capital.