On April, 24th during special ADG talks session at MAPIC Russia ADG group explained, how the use of worldwide retail trends helps shopping centres to gain stable and high traffic and how the new commercial real estate format by ADG group – Neighbourhood Centre – operates in exact locations.
The special session “Three times per week. How ADG group fills first Neighbourhood Centres: zoning, architectural plan, retail formats” was held on developer`s booth at MAPIC Russia. ADG group presented the details of 39 Neighbourhood Centers project realization. For the first time developer introduced specific retail formats and zoning for the most effective usage for both tenants and consumers, which provide high and stable traffic to diverse formats of objects: small, medium and large.
“Neighbourhood Centre`s format depends on local customers` needs, level of competition and tenants` demand. An average Neighbourhood Centre is a small object with a focus on daily needs of people living in the exact neighbourhood. Medium format is used for locations with no advanced cinema and entertainment offer within 15 minutes drive time, that is why additional space of medium Neighbourhood Centres is used for multiplex cinema and extended entertainment zones. Large objects represent a mix of Neighbourhood Centre and modern fashion mall. For example one of the L-format Neighbourhood Centre Sofia is to become a fashion destination for all the Eastern Administrative District of Moscow”, explained ADG group`s Commercial Director Anna Obraztsova.
Moscow is an excellent example of customers’ needs evolution. Time becomes more and more valuable, that is why in 2017 mall accessibility became a crucial shopping driver in Moscow – for the first time location appeared to be more important than price or choice range. Muscovites` unwillingness to spend time on the road as well as lack of retail and entertainment infrastructure in capital`s remote neighbourhoods raise the demand of convenient stores.
So how according to the specific consumers behavior in Moscow`s districts do Neighbourhood Centres gain stable traffic with 3 visits per week frequency? With clear choice of daily needs, entertainment and educational retail formats, F&B and socializing opportunities. People will return to Neighbourhood Centres several times per week for regular shopping, fine dining or quick lunch, entertainment, education, sports and communication.
“Tenants are the core of ADG group`s project as they create the Neighbourhood Centres’ customer experience. We believe that emotional retail generates traffic of commercial real estate, that is why ADG group devote 20% of leasing area to cinema, entertainment and edutainment formats and 20% to Food & Beverage. More than 40% of the total area will be filled with tenants, whose business is based on building of new experience and impression”, said ADG group`s Leasing Director Anastasia Sharkova.
ADG group shows its approach to Neighbourhood Centres tenant-mix development and floor adaptive zoning on the example of objects that are already under construction:
ADG group`s Neighbourhood Centres project includes 23 S-objects, 10 M-objects and 2 L-objects as well as several objects with a unique concept approach such as Rodina and Warsaw, which required specific concept, architectural plan and tenants-mix according to its location and architecture. 5 ADG group`s objects already are under construction. The first Neighbourhood Centre Angara will open in the end of 2018, while the whole network will start operating by the end of 2019. 30% of GLA is already signed by anchor tenants, including supermarkets Lenta and South Korean movie theatre CJ CGV.