Large shopping centers are the future for Klepierre, Marketing & Advertising News, ET BrandEquity

Shopping center operator Klepierre is focusing on Europe’s most dynamic and affluent big cities and offering experiences beyond shopping to compete with fast-growing online retailers, its CEO Jean-Marc Jestin told Reuters on Tuesday.

Shein, which sells online in over 150 countries, has become a major player and in 2022 accounted for almost 20% of the global fast fashion market, overtaking Inditex’s Zara and H&M – Klepierre tenants.

“I don’t believe in the disappearance of physical retail, but rather in concentration, which is why all our work has been focused on large cities, large shopping centers, which are the most dynamic,” Jestin said in an interview.

Klepierre’s tenants, which also include the LVMH-owned chain of Sephora cosmetics stores, Tommy Hilfiger, Lacoste and Apple, are looking for more impressive and technologically advanced shopping centers with a restaurant and entertainment offer, while also developing online services, he said.

continued below

Among the attractions that Klepierre offers to attract customers to its shopping centers are yoga and dance classes, concerts and films.

“They spend money specifically on sportswear, sports equipment, health, beauty and personal services – which includes brands such as JD Sports, Adidas, Foot Locker, Rituals and Sephora,” Jestin said.

He added that retailers are now much more diverse, with brands such as ABF’s Primark, Normal and Action attracting both budget and more affluent customers.

Meanwhile, online sales at Klepierre shopping centers could account for as much as 35 percent of sales, up from 5-6 percent a decade ago, the CEO said.

“The brands we work with today are multi-channel, so they currently generate about 20-30 percent of their sales online, and some, like Mango, are growing to over 40 percent, so they need fewer physical stores and are therefore more selective.”

Jestin said that 10 years ago, Klepierre had 330 shopping centers, today there are just over 70.

“It’s good that we made this change because if they hadn’t done it, I think we would have a lot of malls today where it would be difficult to attract sellers and customers,” Jestin said.

As part of efforts to strengthen its presence in major European cities, Klepierre announced on Tuesday the acquisition of the Romaest shopping center in the Italian capital.

Most frequently read in the brand business