The Power of Experience Retail

as a Tourist Attractor

How well-planned and innovative retail development can help places become more successful tourist destinations

For more information visit www.placematters.co

The power of experience retail as a tourist attractor?Structure of Presentation 1. What is “experience retail”?

2. The relevance of experience retail 3. Case Studies:

• London’s West End• Milan• Dubai

4. Lessons for application to tourism development

Experience RetailA concept relevant to existing and new tourist destinations

What is “experience retail”?

Experience retail is shopping-led entertainment • Reflecting shopping now being more of a leisure activity…• More about fun and entertaining experiences…• To be combined with other leisure/recreation activities…• Conveniently found in one place, attractive and accessible• Responding to increasing consumer time pressures and demands• Responding to tourist needs and wants• Helping to make more places destinations of choice

ER places are destinations with a mix of attractors and experiences driving footfall & spend A mix of activity attractors + retail attractors = increased and

sustained footfall

It’s recognising shopping as a form of entertainment

With a complementary mix of attractors and lifestyle experiences

With a day and evening offer

Where people want to stay over to experience the full offer

With a constantly evolving offer to keep them coming back

ER destinations have an….. Innovative mix of attractors and uses The mix of shops Food and beverage mix Leisure and entertainment mix Culture and heritage mix Hotels and accommodation Offices and Residential Parking and transport

An innovative mix of attractors to increase footfall, dwell time and spend

International brands plus independent/authentic/local retailers

Specialist cinemas

Leisure and sports facilities

Museums and Exhibitions

Art Galleries

Concert Halls

Performance spaces in the public realm

ER destinations have….

The offer in ER destinations includes events to attract footfall:

Art demonstrations and creation

Dance events – in store and in public realm

Fashion shows

Activities like cooking school demonstrations related to

restaurants

Music theatre and dance

Cultural events

The service in ER destinations has to be great Connecting online to welcoming the person before arrival

Collecting deep knowledge about customers

Employing staff who truly know their products & services

Creating merchandising schools and training courses

Providing value added services; e.g.

-Child care

-Valet parking, fashion advisers, interior designers

- Purchase collection

Marketing ER destinations is all about the experience

Sense Marketing – create sensory experiences - sight, sound, taste,

smell & aesthetic pleasure Identification of development mix

Feel Marketing – to positively affect, stimulate and bond

Think Marketing – to surprise, intrigue and provoke

Act Marketing – to alter lifestyle, new interactions

Relate Marketing – to take beyond current reality and experiences and create new associations

The relevance of experience retail destinations to tourism development

Complements and expands the menu of attractions

Helps to attract, increase and maintain footfall

Increases overall spend

Improves viability of places as destinations

Increases attractiveness of places as destinations

Helps to distinguish places as destinations

Expands the market for destinations

Experience retail destinationsCase Studies

Milan – An unplanned – naturally evolving - retail and cultural destination that is a tourist magnet

London’s West End – An unplanned retail and entertainment destination beingplanned anew as a tourist magnet

Dubai – A more planned retail destination

Case Study – The “Quadrilatero” Milan Fashion District

Adjacent to the historic centre with its Duomo and La Scala Milan

Centre’d on Via Montenapoleone close to historic centre

A concentration of world class fashion brands, many based there

Complemented by specialist and authentic local shops

Balanced by a sophisticated and local F&B offer

With art galleries and classical gardens

In an environment of neo classical residences and fine architecture

A place to live and create as well as shop and visit

Milan’s ER offer – international brands

Milan’s ER offer – authentic local shops

Milan’s ER offer – food and beverage

Milan’s ER offer – tourist magnets

Case Study – Milan – Key Characteristics

Well designed shop fronts that respect building heritage

A place to live and work as well as enjoy, shop and visit

A place that’s vibrant and alive with residents and workers

A good mix of retail, F&B, cultural, artistic and heritage attractors

A place that feels local, authentic and international

A complement to the historic core that expands its market

Case Study – London’s “New” West End Focused on Regent St, Oxford St and Bond St in central London Premier retail offer adjacent to major tourist attractions In 2008 25% of 200 million visitors were tourists 2008 - “New West End Company” (PPP) created to improve the offer Short term objective to capture Olympic spend in 2012 Medium term objective to capture more domestic and tourist spend Longer term objective to help maintain London as a major destination 2009 – Locum Consulting appointed to create strategy for improvement

London’s West End ER offer

London’s West End ER offer

London’s West End ER offer

London’s West End ER offer – major brands – old

& new

London’s West End ER offer – food and beverage

London’s West End ER offer – authentic shops

London’s West End ER offer – key challenges

Bringing retailers together to agree and fund a development strategy Create a more distinctive sense of place Moving major retailers and attractors around the area to create distinctive offer areas Achieving a mix of international and national brands Balancing big brands with authentic local shops Capitalising on Bond Street Upgrading the tourist F&B offer Improving and extending the public realm Introducing more cultural and entertainment attractors Creating integrated shopping, culture, heritage and entertainment offers Retaining local independent food and beverage

London’s West End ER Flagship Positioning strategy

London’s “New” West End – Strategic Proposals

Create international retail “flagship” areas with distinctive mixes

Sub divide flagship areas into distinctive offer destinations

Renew and improve the quality of street furniture

Remove the “red wall” of buses on Oxford Street

Increase pavement restaurant space and the quality of the F&B offer

Create piazza style civic spaces with attractor events

Improve architecture and create recognisable gateways to the area

Better communicate the area’s offer and events

Case Study – Dubai – City of shops plus entertainment

The new shopping city of the Middle East reducing dependence on oil

as a major source of national wealth

Where retail is the attractor for F&B and entertainment provision

Where shops and entertainment are often all under one roof

Where shopping complements the beach and hotel

Where malls have become a place of congregation (to escape the heat)

Where retail is celebrated in festivals that attract shoppers from the

region and farther afield – food, fashion, jewelry, ice sports

Dubai Retail Offer – Eight major malls

Dubai Festival city – 2.8 msqft/600 big brand shops

Deira City Centre – specialist and authentic goods

Burjuman – international designer brands

Madinat Jumeirah – recreated middle east marketplace

Ibn Matuta Mall – six historically themed pavillions

Wafi City – F&B, jewelry, culture, meeting places

Mall of the Emirates – 400 shops and 6 major department stores

Mercato – 90 restaurants, cafes and shops

Dubai’s ER offer – Big Box Retail

Dubai’s ER offer – Authentic & Replica Retail – the Souks

Dubai’s ER offer - entertainment

Dubai’s ER offer - Reflections

The architecture is adventurous but the retail offer

has a predictable sameness Experience attractions (like ski-runs and imitation

souks) are the key differentiators between the malls Retail acts as an attractor where few others exist Retail offers a complement to the beach and hotel Retail brings the offer of London and Milan to the

expat and local citizen alike An aspirational international outlook market exists

that supports global brands Dubai is not a model for established cities and tourist

destinations but elements may be relevant for new

tourist resorts; e.g. the recreation of the Souk

and traditional restaurants

ER – Key lessons from case studies

Be clear on the brand offer - the experience! The mix of attractors and experiences is key Balance international retail brands with local ones Balance shops with cultural and entertainment

attractors Integrate and connect attractors within the

destination and to it Events attract and differentiate the destination Market the experience not just the provision Architecture and high quality public realm and

landscaping are important – think about “the finish” Preserve existing high quality environments Public/private partnership working is vital

Creating ER Destinations – Conclusions for Tourism Development

Traditional retail by itself is a limited attractor

ER requires a strong mix of attractors

ER requires careful and detailed planning of the mix

ER requires close working with retailers and operators

of attractions – realising the mix of the offer

Integrated operations are essential e.g. opening hours

Integrated marketing is essential - shop/see/play/stay

Good public transport access is important

Good signage and telecommunications are important

ER changes the nature of a destination

ER expands the market of a destination

ER can make a destination more viable

Our Team

For consultancy advice contact:

Malcolm Allan Malcolm.allan@placematters.coPhone: +44 1342 829 012Mobile: +44 7803 356 310

Twitter: @MalkyAllanBlog: Malcolmallan-placebrander.blogspot.co.uk

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