When it comes to the management of retail developments Atterbury Property’s Executive Director Lucille Louw has a bird’s eye view of asset management in Europe and Africa born from 24 years in the Atterbury stable
Every country has its very own unique set of circumstances, challenges and opportunities, and for Atterbury Europe, operational in Cyprus, Serbia and Romania, the past few years have been exceptional. Cyprus, in particular, took a long time to get out from under Covid restrictions, and that, along with the country’s proximity to not one but two war zones – in the Ukraine and more recently, Gaza – has presented the retail sector across the country with significant challenges. Along with the economic downturn, people also feared for their safety in landmark buildings.
But challenges are what Lucille Louw relishes, and as a consultant to Atterbury Europe in Cyprus, it was an opportunity she jumped at. “I knew I had the backing of an extremely strong management team at Mall of Cyprus and Mall of Engomi, and with the combined creativity in the room, we would formulate a strategy to see them come out the other side stronger, better and geared for the future.”
Coming into Europe as a consultant from another market allowed Lucille the benefit of a fresh eye to spot opportunities, and right off the bat she was struck by two aspects of the market in which Atterbury Europe operates. “European consumers are spoilt with the variety that is on offer to them in terms of choices; and Cyprus is both in the Top 20 in Europe in terms of GDP per capita, and in the Top 10 regarding employment rate,” she explains. Combined, these aspects make for a market where savvy retailers stand to enjoy excellent turnover, provided they keep exciting their customers with the best, most relevant offerings.
To create the best possible shopping environment for shoppers the management team applies the fundamental, back to basics management principles that are the same no matter where you operate in the world, Louw says. It starts with a very clear focus on what the consumer wants. “Consumers are king, and what the consumer wants is variety and relevance – not their granny’s favourite shop,” explains Louw. “Our consumers are increasingly sophisticated and they expect their mall to surprise them with the same variety of choice as they have grown accustomed to finding online.”
Fostering good relationships with tenants is another key aspect to being a successful landlord, because your existing tenants are often the ones who bring you a new, second, third and fourth store, says Louw. At the same time, she believes that malls must be relentless about keeping the tenant mix fresh and relevant, or risk losing shoppers. Not renewing long-standing tenancies that fail to reinvent themselves for current customer demands is a tough call, but one that is key to the success of a mall, and that is also the strategy for Mall of Cyprus, says Louw.
“It is always easier to get the tenant mix right if you can start with a clean slate, as we did at Mall of Engomi with the introduction of Kiabi following the refurbishment, but it is a harder process in a mall where your customers are telling you with their feet that they are bored of the shops that are occupied by long-term tenants who might be failing to reinvent themselves for their shoppers.”
In addition, Louw says, the customers make it clear that they see the Mall of Cyprus as a serious fashion destination. To capitalize on this, plans have been set in motion to vacate space that is not performing well and instead to bring in new fashion tenants, as well as increase the entertainment at the mall. “It is all about getting the balance right,” she adds.
Staying ahead of the pack requires a keen eye for what consumers want, and Louw has identified key areas of interest for shoppers – sustainability, finding the benefits of online shopping in the formal retail sector, and shop-a-tainment.
/…Read more about this in the next installment of Lucille’s Insights.