News from the German retail market week 24.

News from the German retail market week 24.

  • German retail market – Turn over week 24 -4%vs LY.
  • Bikini Berlin: Is it a success? If you ask the landlord yes, but the tenants have a different opinion.

 Turn over week 24 = -4% vs. LY.

My thoughts on that: With one less trading day it is hard to perform better then LY.

Source:(http://bit.ly/1pbtfg5)

Bikini Berlin, shopping centre in Berlin. Success or a miscalculation?

This is a relatively new shopping centre located in the centre of Berlin. Since the opening of the new concept beginning of April have 12 new stores opened. Two new stores are planning to open up in the coming months. The occupancy rate is around 90%.

This is a shopping centre where gastronomy interior and fashion clothing brands meets under the same roof. The size of the stores goes from 85 to 250 sq. m and the building consist of different floors.

The theme and question is if this is where you want to be with your brand?

According to the landlord, of course he will say yes and if not he or she is not doing their job correctly. If you ask the tenants most of them would probably say something else. They have for example been expecting a higher footfall and interest. The target group and location of the mall is criticized since the brands feel that they are missing out on the trendier and more creative customer. Bikini Berlin is located in the area of Charlottenburg and nearby Westbezirke. The neighborhood and clientele is relatively financial strong and maybe not that “bohemian-fashion” conscious and vanguard. But more mainstream and into brands like Polo Ralph Lauren. Also the main parts of the Russian tourists that are an important customer group for many brands Germany are missing out. Mostly because they are more interested in brands like Louis Vuitton and Prada then in smaller upcoming creative brands. The criticism is also directed towards the malls concept and communication. It is missing out on a clearer message and attraction towards their target group in comparison to the trendier areas as Berlin Mitte, Prenzlauer Berg and Kreuzberg.

My thoughts on that: I know that the mall is planning on more activities to attract the younger trendier customer that many of the brands are screaming for today. They are doing collaboration with Bread & Butter and hopefully also more activities towards the end-users. I do think the mall could be a great opportunity for a “trendy” or interesting brand from either Scandinavia or UK to open up and especially if it gives you more opportunities and possibilities to work with the Pop-up concept. The mall is also promoting the concept “new buying” which could be interpreted as new shopping and payment techniques, new brands or new shopping experience. I think they are missing out on a stronger brand and concept that could actually help them in clarifying and to make the message clearer to their target group. It could also be a good opportunity for a mixed concept brand to enter the mall and to make it a win-win for both tenants and landlord.

Source:( http://bit.ly/1kJ5BSb)