In change we trust

Aneta Cichla, ‘Eurobuild CEE’: What plans does Echo Investment have for the retail market in Poland? Perhaps you are focusing on the modernisation and extension of existing shopping centres?

Marcin Materny, director of Echo Investment’s shopping centre department: We do not focus on any particular segment. We simply want to carry out good retail projects. We are a long-term investor. We do not plan our projects with the assumption of a quick exit. We want to be the long-term owner of our projects, which is why we focus only on good locations and are very particular in terms of design and we actively manage them after their openings – this can be seen with our shopping centre in Bełchatów, which has been extended and is now Galeria Olimpia, and is also the case with Galeria Echo in Kielce. In both these cases we have substantially extended the projects after ten years in use. We still manage them. Galeria Echo we will soon see the opening of a bathroom furnishings store and a medical centre. The market has been changing and we have been changing, too.

Our strategy envisages the construction of new retail facilities as well as the modernisation, extension and revitalisation of existing centres. As far as the former is concerned, everybody knows very well about the market saturation we have to deal with at this time. This is why each new project planned is meticulously analysed in terms of the contemporary expectations of tenants as well as customers. A good example of this approach is Galeria Echo Katowice, which is to be constructed in the south of the city on a site characterised by its low retail space saturation and the strong purchasing power of its occupiers. The centre will not only feature a variety of retail and entertainment functions but also an extensive restaurant, service and recreation area.

We also pay a great deal of attention to modernisation, extension and revitalization of our retail facilities which operate well. This year we finished the revitalisation of the Echo shopping centre in Bełchatów, as a result of which we have created the only retail park in town specialising in home furnishing, which is extended by the retail and entertainment offer of nearby Galeria Olimpia. There is equally as much going on at Galeria Echo in Kielce, where we have redesigned the top floor. We have also opened the first supermarket of Swedish chain Jula. Customers of Galeria Echo will soon be able to use a medical centre. There are new clothing brands, including the boutiques of distinguished Polish designers, as well as new functions allowing the customer to not only choose from famous fashion brands but also an extensive entertainment offer in the form of a cinema, bowling club, music club, fitness club and a whole range of interior furnishings stores.

We are also working on the extension of the Galaxy shopping centre in Szczecin. The new section has 17,000 sqm gla, where we will be offering new premium clothing brands. The entire section has been designed in the shape of a circle and will be the venue for cultural events, thanks to a new stage. In Szczecin we are also finishing the second stage of the extension of Outlet Park and next spring next we are launching its third stage, which will include a medical centre and fitness club.

Ominchannel sales are all the rage right now and are supposed to be shopping centres’ response to online shopping. What are the solutions related to this issue that Echo Investment is introducing?

Online shopping is having a considerable impact on traditional retail. There has been a significant change in the customer profile. Because of the internet we have an increasingly aware and convenience-loving customer.

We take this into consideration in our work and analyse these trends on an ongoing basis. We understand very well that contemporary consumers are expecting not just to buy things in shopping centres. This is the very basis for our new projects and operating malls. People who come to shopping centres do not just want to do their shopping but also to use the entertainment, restaurant and services offer – and simply to have a good time. We have addressed that by offering the new functions they expect. Thus there is more emphasis in our centres on the extensive restaurant offer, we provide a great variety of entertainment formats, we have introduce new types of tenant, such as medical service. Thanks to all this even in times when online shopping is very popular, a modern shopping centre can have a lot to offer. Well-designed shopping centres are comfortable centres. This of course down to attention to the small details – a factor which continues to be under-appreciated by developers. This includes convenient entrances and exits, easy-to-use car parks, compact shopping arcades, good signage and the right selection of tenants. Places where we ‘want to be’ and ‘feel good’ are becoming much more important. This is a great challenge for architects and developers.

What will be the greatest challenges for retail developers in Poland over the next few years? And what will they be for facility managers?

The management quality of existing centres will take on a greater and greater importance. This is why we pay so much attention to our malls. I have already spoken of the changing functions of shopping centres, or rather, how their offer tries to meet customers’ expectations these days. Naturally, fewer and fewer new projects will be built, but there is still some room on our market for high quality developments that can complement the current offer, not only in terms of new clothing brands but also new functions. Outlet Park Szczecin is a good example of this trend. Theoretically it is an outlet centre which we designed in a slightly different way from the very outset, however, having analysed the needs of occupiers in the city’s Prawobrzeże district. The idea turned out to be a success: customers appreciated having the multiplex cinema which was missing in this part of the city as well as the Piotr i Paweł supermarket. In the second stage of the project we are introducing not only new outlet brands but also traditional shops. The third stage will include completely new things – a medical centre and a fitness club. This shows the direction we are heading in. Facility management will continue to gain in importance. And I think that we are getting better and better at it.

How do you see Echo Investment on the retail market in ten years?

We want to build a portfolio of attractive retail and office properties. We have sufficient competence to carry out acquisitions, improve, redevelop and ultimately actively manage a large property portfolio. There is still some room for modern projects in the largest Polish cities. Of course, the role of mature developers’ role will be adjusting these projects to the modern expectations of tenants and customers. We can already observed the direction the market is starting to go in. I think that in ten years there will only be very good projects left on the market, which will be able to adjust their offer to the dynamically changing situation, including the growing popularity of online shopping and the mobile channel. The world has been changing, we are monitoring what is happening on the market all the time and we are analysing the forecasts. Some formats expire but they are immediately replaced by new ones. The evolution of the market is means continuous progress and we expect the next decade to bring about no fewer changes than the ones we have seen over the last ten years. As a participant and co-creator of this process we intend to continue to be actively involved in it.