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In recent years, leisure expenditures and household income in Austria have changed significantly. Leisure activities like dining out and entertainment have gained considerable importance in the retail and real estate sector as well.

As an international F&B consultant, I am constantly confronted with statements like, “It’s not rocket science; how difficult can it be, or everyone can run a restaurant?” So I will use this column edition to embark on a little journey with you. We have already established that hospitality experiences are more important than ever. When I started in this industry, we thought 6% F&B was a good rate; now, we are running developments at 20%.

Angelus Bernreuther, Head of IR at Kaufland Stiftung & Co. KG and member of the ACROSS Advisory Board, will leave the international foot retailer Kaufland end of July. He worked with Kaufland seven years. After a short break, he will be taking on a new position in the German real estate business.

The most difficult times are behind us and retail has proven to be resilient, states MAPIC Director Francesco Pupillo. As such, this year’s MAPIC will once again be clearly focused on matchmaking and brands – especially dynamic brands that are part of experiential retail.

Since 1996, the MAPIC Awards reward excellence, innovation and creativity in the retail real estate industry, celebrating the industry’s most useful, sustainable and visionary projects. This year, the MAPIC Awards feature a number of new categories, reflecting MAPIC’s commitment to serve communities, businesses and the planet. The entry phase of the competition is open until July 22, 2024.

Boutique Ganz House will deliver premium residences and green offices to riverside Eurovea City – a prime destination for work, life and leisure. JTRE’s multifunctional project is taking shape on an attractive triangular plot between Pribinová and Čulenova streets, conveniently by Eurovea shopping center and the Slovak National Theatre.

City Outlet Geislingen with over 40 home, fashion & lifestyle brands in 25 stores is being expanded to include four new stores. Construction work will begin in July 2024 and the opening is planned for late summer 2025.

Kaufland is continuing its expansion tour in Europe. Revitalizations are playing an increasingly central role in this. The integration of existing retail locations and modernization has recently increased compared to the construction of new buildings. Furthermore, the latest example in Sofia shows the role that the interaction between tourism and retail can play for a location. With the revitalization of the Central Market Hall in Sofia, Kaufland is not only reviving an architecturally unique location but also a tourist magnet.

Designer Outlet Algarve, the premium outlet village for the south of Portugal and Spain, kicks off construction for its center extension. By the summer of 2025, up to 25 new stores will open on an additional 4,000 sq m of gross lettable area, creating around 150 jobs.

In the ever-evolving hotel industry, there is one category that really stands out – hotels, explains Will Odwarka, Founder and CEO of Dubai-based Heartatwork Hospitality Consulting. The hotel landscape is changing on a global scale as hotels seek to attract and cater to a more diverse and international clientele with their F&B and retail offerings. It is a fact: Hotels, gastronomy, and retail go together.

Why do we visit shopping centers? Is it merely for shopping, or are we seeking entertainment, a place to meet, or perhaps all of these experiences combined? Despite the diverse reasons that draw us to shopping centers, one expectation remains consistent across all visits: the demand for quality.

Shopping malls developed recently in Turkey are typically designed for shopping, dining, entertainment, and sometimes cultural events. Since the early 2000s, the rapid increase in shopping malls has made them a significant factor in the national retail sector. Despite the country’s economic difficulties, the industry is vital.

The commercial benefits of accommodating multiple uses in one development are clear: If the offer and environment are tailored correctly, footfall – and therefore turnover and rents – can be increased. Nevertheless, there is a great reluctance to create true mixed-use developments due to the inability to truly understand the different requirements of different user groups, according to a joint report by Pragma and Benoy.

Tourism and shopping belong together – this is most visible within the outlet industry. Many outlet centers are located in leading tourist zones and traditionally work together with the tourism authorities. Outlets and tourist destinations understand and present themselves as a unit. This means that the outlet industry is one step ahead of the shopping center industry, but there is still a lot of potential here, since 10% of the European outlet centers have hotels at their sites.

Shopping centers and hotels have increasingly become complementary assets that together, particularly in city-center locations, form a mutually reinforcing symbiosis. Both asset classes are characterized by a variety of offers, service qualities, and experience factors. When combined, the result is an even better mix of uses and, therefore, a win-win situation for everyone involved, explains Torsten Kuttig, Director Hotel Development at ECE Work & Live.

The retail and hotel asset classes are both geared towards the consumer, clearly benefit from tourism and are impacted by the “luxury vs. budget” polarization trend. Six months ago, Union Investment therefore decided to bring together its retail and hotel investment teams by establishing an Investment Management Operational department. The Hamburg-based investment and asset management company is targeting synergies and opportunities for its portfolio in the two property categories and considering acquisitions. Andreas Löcher, Head of Investment Management Operational, and Roman Müller, Head of Investment Management Retail, discuss the megatrends affecting both asset classes, highlight other similarities and identify locations of particular interest.

Shopping centers and hotels have increasingly become complementary assets that together, particularly in city-center locations, form a mutually reinforcing symbiosis. Both asset classes are characterized by a variety of offers, service qualities, and experience factors. When combined, the result is an even better mix of uses and, therefore, a win-win situation for everyone involved, explains Torsten Kuttig, Director Hotel Development at ECE Work & Live.

Tourism and shopping belong together – this is most visible within the outlet industry. Many outlet centers are located in leading tourist zones and traditionally work together with the tourism authorities. Outlets and tourist destinations understand and present themselves as a unit. This means that the outlet industry is one step ahead of the shopping center industry, but there is still a lot of potential here, since 10% of the European outlet centers have hotels at their sites.