Loss Prevention | Traffic Insights | Inventory IntelligenceRetail Solutions

Traffic Insights

Designer Outlet Croatia

Boosting performance across a hybrid retail destination

Case Study

Loss Prevention | Traffic Insights | Inventory Intelligence

Case Study

Designer Outlet Croatia is a stunning new aspirational outlet shopping experience in South-Eastern Europe, which sits alongside a popular IKEA store. Strategically positioned south-east of Zagreb, the outlet centre opened in June 2018 and boasts 15,000 sq m of discounted luxury clothing brands, including Tommy Hilfiger, Calvin Klein, Guess and adidas. There’s ample parking, dining choice for shoppers, and an outdoor marketplace linking the two large retail properties.

This exciting ‘hybrid’ retail destination aims to offer retail and leisure entertainment in one self-contained place. It’s where visitors can shop for furniture, fashion and lifestyle, enjoying stylish surroundings, comfort and convenience. Ingka Centres (previously IKEA Centres) is the majority investor in Designer Outlet Croatia in partnership with Mutschler Outlet Holding. The location is managed by ROS Retail Outlet Shopping which is operating a portfolio of premium outlet centres across Europe.

SUMMARYIndustry: Shopping Centre

Solution: Traffic Insights & Interior Analytics

Benefits: Understand footfall trendsVisualise in-store behaviourEnhance Leasing strategyUnderstand correlations between the outlet centre and Ikea store

Designer Outlet Croatia is a stunning new aspirational outlet shopping experience in Zagreb, Croatia, which sits alongside a popular IKEA store. The outlet centre opened in June 2018 and boasts 15,000 sq m of discounted luxury clothing brands, including Tommy Hilfiger, Calvin Klein, Guess and adidas.

Retail Solutions

Designer Outlet Croatia

A unique traffic-driving opportunity The IKEA store in Zagreb opened in August 2014 and attracts 2.0 m visitors annually. It boasts 38,000 sqm rental space, making this one of the biggest IKEA-owned sites in Europe and in the world. As the property owner, working with ROS Retail Outlet Shopping, Ingka Centres is committed to growing visitor numbers and sustaining shopper interest in the destination for the long-term future.

The attractive outlet centre, comprising 74 stores, and the connected marketplace have therefore been introduced to create a one-stop shopping destination, with a big emphasis on drawing new audiences and driving traffic to the adjacent IKEA store. It’s well known that shopper visits to IKEA may not be as frequent as visits to fashion and lifestyle retail, but with the two properties in such close proximity, the aim is for visits to IKEA to rise. Shoppers can make a day of their visit, ideally venturing into both buildings. For IKEA, Designer Outlet Croatia and the centre management at ROS Retail Outlet Shopping, this should translate to higher overall traffic figures, longer dwell times, and increasing repeat visits. But is this happening?

The challengeThe management team sought a method to consistently measure and understand ongoing traffic trends regarding the correlation between both properties – the IKEA store and Designer Outlet Croatia.

They also wanted to prove the hybrid retail development is capable of delivering ROI and succeeding as a complimentary traffic driver for the different elements. Looking ahead, there is a need for traffic data to inform decisions on further planned hybrid projects.

Additionally, as Designer Outlet Croatia sets its rents according to footfall in stores, it has been vital to gather 100% accurate traffic statistics to share with existing and future tenants. This makes rent setting and negotiations possible and helps with ongoing tenant planning and centre management.

For all these reasons, in May 2018 ShopperTrak was commissioned to provide the necessary traffic counting and analytics capability for the development.

Designer Outlet Croatia

Actions taken to measure and analyse trafficDuring the summer of 2018 a comprehensive ShopperTrak traffic solution was installed at all entrances to the outlet centre, and for all stores within the centre. Traffic counting was also introduced at the entrances and exits of the IKEA store. An interior analytics solution was installed giving insights into behaviours within the outlet centre and the IKEA store.

The resulting set-up provides a vast range of data insight into traffic performance across the location. Data can be split into zones for the purpose of understanding zonal correlations for use in strategic planning, something the retail teams were very keen to be able to do.

Designer Outlet Croatia

A wealth of metrics now available Operationally, there are many powerful data insights now available. Metrics reported cover hourly, daily, weekly, and monthly traffic and dwell times in the outlet centre, and its individual stores; traffic and dwell times at the IKEA store. Management teams can spot trends such as busiest days during the calendar year, and power hours when footfall reaches a daily or weekly peak. Zones can be identified where changes to tenant mix and marketing might be needed to boost traffic and dwell further.

It’s possible to explore correlations between the Designer Outlet Croatia and IKEA, to understand how the two locations affect each other’s footfall.

The interior analytics Wi-Fi solution can reveal which individuals in the space are first time visitors, and which are repeat visitors. So it’s possible to calculate whether visit frequencies are going up.

Branko Mihajlov, Project Manager & Head of Leasing Croatia/Serbia at Ingka Centres, said:

“Thanks to the insight we have been able to uncover as part of our partnership with ShopperTrak, we also expect that letting any remaining units in the outlet centre will be far easier based on the traffic results of recent months.”

Outcomes and benefitsIngka Centres has been able to closely monitor the traffic impact in its store and the retail attraction next door. A key finding has been that, within seven months since its opening, a strong regional shopping destination has been created from the Ikea and Designer Outlet Croatia hybrid project.

Designer Outlet Croatia

The results already show that the construction of Designer Outlet Croatia has been a worthwhile investment.

It’s also now very easy to see the most attractive locations in the premium outlet village – which brands are pulling the most traffic and helping to increase dwell time. Understanding the interactions zone-by-zone across the whole area is proving invaluable.

Branko Mihajlov, Project Manager & Head of Leasing Croatia/Serbia at Ingka Centres, said: “Thanks to the insight we have been able to uncover as part of our partnership with ShopperTrak, we also expect that letting any remaining units in the outlet centre will be far easier based on the traffic results of recent months.”

Planning for peak and labour scheduling at the IKEA store is becoming easier, thanks to more foresight based on traffic data. Operations – such as deliveries and staff training - can be planned around traffic trends and power hours.

Visitor behaviour will be tracked over a longer period to recognise patterns, and potentially this information can be used in marketing strategy and seasonal event planning. It is expected that letting any empty units in the outlet centre will be far easier based on the traffic results of recent months. A good traffic story is highly valuable in leasing negotiations. Certainly, the traffic each store is generating is now scientifically proven, and this can underpin the rental arrangements, and ongoing leasing strategy across the site.

Branko Mihajlov, Project Manager & Head of Leasing Croatia/Serbia at Ingka Centres, said: “This is the first time wehave fully measured traffic across a site and used the resulting data to scientifically, prove the commercial success of a project. This data is also essential to help us plan operations and leasing. It’s also now very easy to see the most attractive locations in DesignerOutlet Croatia, which brands are pulling in the most traffic and helping to increase dwell time, whilst understanding the interactions zone-byzone across the whole area isproving invaluable.”

About Sensormatic Solutions Sensormatic Solutions is the leading global retail solutions portfolio of Johnson Controls enabling smart and connected

shopper engagement. By combining critical insights into retail inventory, shopper traffic and loss prevention, Sensormatic

Solutions powers operational excellence at scale and helps create unique shopping experiences. Our solutions deliver

real-time visibility and predictive analytics for accurate decision-making across the enterprise, enabling retailers to

confidently move into the future. With more than 1.5 million data collection devices in the retail marketplace, we capture

40 billion shopper visits and track and protect billions of items each year. Our retail portfolio features the premier

Sensormatic, ShopperTrak and TrueVUE brands.

Please visit www.sensormatic.com, or follow us on LinkedIn, Twitter and our Youtube Channel.

About Johnson ControlsJohnson Controls is a global leader creating a safe, comfortable and sustainable world. Our 105,000 employees create

intelligent buildings, efficient energy solutions and integrated infrastructure that work seamlessly together to deliver

on the promise of smart cities and communities in 150 countries. Our commitment to sustainability dates back to our

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