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Newsletters

Retail in detail

Published: 30 August 2018

 

 

 

A word from the top, Andrew König, CEO

For us, it’s not about what we do – it’s a matter of being different at what we do.
 

We take great pride in doing business differently. Our mission is to create sustained value for all our stakeholders. While property is our commodity, people are our business. We believe it is our people-centric approach that sets us apart. This is why we’re focused on deepening our stakeholder engagement throughout our business.

It therefore gives me great pleasure to reach out to you, our tenants and partners, with our first quarterly retail newsletter, aimed at keeping you informed on what’s happening in our portfolio.

With the goal of better understanding and addressing your needs, we recently conducted a survey aimed at gathering insights into how to improve your overall experience when interacting with us. We appreciate the honest appraisal and feedback received, and we will use it to better serve your needs.

You and your business are a priority for us. I’d like to remind you that on a day-to-day basis, our knowledgeable centre management teams are available, and committed to supporting you. Please feel free to contact us.

Looking ahead, we will continue to focus on innovative marketing and management, ensuring that we offer an appealing product, and work with you, our tenants, to proactively meet shoppers’ needs.

At all times, in every interaction, we aim to be the best in all aspects of what we do. We look forward to collaborating with you to reach new heights – together!


 

In the know, with Nashil Chotoki, national asset manager

Annual figures released by SAPOA indicate a decline in trading density growth to -0.2% year on year, across the industry. Simply put, this metric captures the total turnover per square metre of total GLA. And while the industry, as a whole, has underperformed, Redefine Properties posted a 3.7% trading density growth for the same period.

The figures are equally encouraging when it comes to foot count per square metre. While the industry aggregate declined by 6.5%, Redefine remained static, with no decline whatsoever. What is really behind these statistics? There is no one single silver bullet. Rather, these positive metrics are a result of a comprehensive vision driven by innovation, responsiveness, strategic partnerships, and a commitment to best practice.

First and foremost, we focus on ensuring that our tenant mix is well-balanced and relevant to the market. Beyond that, we insist on optimising our retail spaces, by placing the right retailers in the right size outlets, and by making sure that the basics are all firmly in place – from security to ablutions to lighting. By benchmarking our facilities, we create consistency across all retail properties in our portfolio.

Along with this, experiential and specifically entertainment based retailers are now playing a larger part in balancing the tenant mix of any shopping centre. We are always looking for new development opportunities. So, for example, we’ve concluded several deals with sought-after local and global retailers.

Decathlon SA (France)
What? World's largest sporting retailer
Where? Centurion Lifestyle Centre - Nov 2018
               Little Falls - Mid-2019
Why? Sportswear & lifestyle is the fastest growing retail segment in SA

Stodels (Local - Western Cape)
What? Foremost regional gardening retailer
Where? Centurion Lifestyle centre - Jul 2018
Why? Gardening & greening are consistent growth segments in SA

LEROY MERLIN (France)
What? Foremost International home improvement & DIY retailer
Where? Modderfontein - latter half of 2018
Why? DIY & home improvement are consistent growth segments in SA
 
 

These new partnerships signal a significant shift towards experiential, lifestyle-oriented shopping, which is in line with global trends. All three retailers are, essentially, concept stores that offer unique experiences to the shopper. Decathlon, for example, has a football pitch in store. And LEROY MERLIN provides a complete, turnkey offering for DIY enthusiasts, from start to finish. By including retailers like these into our tenant mix, we hope to enrich the customer experience.

The Redefine marketing team is always on the lookout for novel ways to improve our centres. And you’ll find them at your own centre, willing and ready to collaborate with you on any future projects. Please stay in regular contact with them, so they can address your needs and assist you wherever possible.

For a full list of the marketing teams, please get in touch with centre management.

Leaders in retail, Rob Sadler

Tough times call for tenant inventiveness

As we all know, it has been and continues to be one of the toughest trading periods in recent history. With a relatively flat economy, consumers – that’s you and me! – have less disposable income, and nationally we’ve experienced a drop-off in foot traffic into shopping centres, so it has become absolutely paramount to focus on what we’ve got to work with!

Serve the customers who are here, not the ones who used to be here, or the ones we hoped would be here.

Question: Do you know what your hit rate / conversion rate / walk-to-buy ratio is?

Every potential customer who enters and leaves without a purchase, is a lost opportunity!

Now, let’s dispel a myth, shall we?

There is no such thing as a browser – that's just a retail comforter.


‘Oh, they’re just browsing’ is ignoring the unpleasant truth that anybody who walks in, looks around and leaves has given us a very clear message that they don’t like us!

And 90-95% of the time they don’t like one of the following:

Price

  • The goods are more expensive than expected, or can be bought elsewhere at a lower price.
  • Do you comparative-shop your competitors on a weekly basis? No? Well, here’s some bad news – customers do! If your answer is ‘yes’, great stuff! Keep at it.

Product 1

  • The range of merchandise doesn’t match their aspirations or taste level.
  • Just because your strategy has worked for 20 years, doesn’t mean it will work now.
  • As our market and customer base changes and evolves, so must we.
  • Remember, serve the customers who are here.

Product 2

  • We’ve sold out of what they want, especially sizes in the clothing categories.

People

  • They don’t like how they were treated – they won’t spend money where they don’t feel valued or where they’re ignored.
  • The customer isn’t even greeted, staff are on their cell phones, and staff look like they don’t care. Cell phones should be banned from all sales floors!
  • The staff don’t know the selling benefits of the product because they haven’t been trained properly.
  • All you managers and owners out there, take a look in the mirror! It’s our job to train and motivate our staff.
  • Without that knowledge and passion for the product, it’s extremely difficult to close a sale.

Position

  • They don’t like the way the store is laid out, or they can’t find what they are looking for. And we’re all strapped for time, right?! Finding what you want should be effortless.

Passion

  • The store feels flat and boring.
  • The management and leadership have lost their passion for the business, and that, my friends, is a death knell.

No matter how well or badly you are doing, take a long hard look at your business in light of the above. Identify where your pain points are, and take immediate action! It will definitely pay off.

Get your monthly foot count from centre management, and compare this to how many people you serve in a month. Stand by your door on a Saturday, and watch how many people walk past without even a glance.

How can we attract them inside? I’ll see you on the sales floor!

A snapshot of mall management

Our management, maintenance and marketing team are here to address your concerns and attend to your suggestions. We’ll help you get the assistance you need, whatever your enquiry might be. Please note: the management structure will vary slightly from mall to mall, depending on size and capacity.

 
 

 

Making our mark

Proudly partnering with a global DIY retailer

Redefine is proud to partner with French multi-national retailer LEROY MERLIN.

To differentiate itself, LEROY MERLIN aims to offer a variety of internationally-sourced products with specialised advice for customers of any level of DIY expertise, and they pay special attention to staying close to their customers. With a wide range of products and services on offer, coupled with a customer-centred focus, LEROY MERLIN is a frontrunner in the market.

What sets LEROY MERLIN apart?

  • Designers and DIY experts are located within each store to assist customers
  • DIY is made easy with ready-made solutions for kitchen and bathroom layouts
  • Each store has between 30 000 and
    60 000 products

Leading the way with LEROY MERLIN

  • First LEROY MERLIN in SA
  • Store opening: Second part of 2018
  • Where? Modderfontein
  • Lettable area: 16 343sqm
  • Parking bays: 450

Lower level

  • Material yard of approximately
    3 000sqm
  • Showroom

Upper level

  • Trading floor: 8 810sqm
  • Storage area
  • Pick-up area
  • Office mezzanine

The Redefine development team went through a rigorous process to convert the European specification document to one suitable for the South African market, while still adhering to the tenant’s expected level of quality, and a uniform look and feel.

We hope to build a lasting partnership with this impressive global tenant, and are looking at future projects elsewhere in the Redefine portfolio.

Making our mark. Proudly partnering with a global DIY retailer

In the spotlight

A revamp that adds so much more to Benmore Centre

Benmore Centre, Sandton’s beloved family shopping destination, has officially opened to shoppers during the end of August 2018. Redefine started work on the R252 million refurbishment programme during late 2016, and has worked tightly to schedule.

Established in 1964, Benmore Centre is one of the oldest malls in Sandton, the richest square mile on the continent. The updated look and feel includes an iconic skylight which allows natural light to flood all levels of the mall, significantly enhancing the architectural idiom of the existing building. Furthermore, resource efficiency has been built into the centre with energyefficient lighting, and water-saving taps and flushers.

  • 'green living wall’ outside the new parking entrance by Woolworths – hydroponically irrigated, and one of the biggest in Sandton.
  • Entire second floor remodelled as a services level, accommodating the Post Office and banking institutions like Absa, FNB, Nedbank and Standard Bank, with two new entrances to provide seamless access from the parking area on the first and second floors.
  • 22 820sqm of gross lettable area (GLA) of retail space, anchored by Pick n Pay and Dis-Chem.
  • Woolworths has relocated to a new space covering over 3 330sqm, and have added a Woolworths Café to their offering.
  • Other tenants who relocated are Step Ahead, Kozi Kids, Post Net, Rain, Ala Juliette and Handmade by Bev.
  • In its new avatar, the centre will play host to some 70 retailers, with Exclusive Books, Big Blu, Wellness Warehouse, Zifferelli, Birckenstock, Motherland Coffee, Miladys, The Bagel Zone and Sorbet Man debuting for the first time.
  • A new undercover seating area for Mio Col’Cacchio, Nando’s, Simply Asia and Fournos.

Nashil Chotoki, Retail asset manager at Redefine Properties, says, “We are confident that this refresh will enhance the overall shopping experience for our customers, and boost the trading environment for our tenants. Sandton rivals some of the hottest shopping destinations globally, and with this revamp we aim to add to the suburb’s growing influence.”

Renovation station

Renovation station

We’re pleased to announce the refurbishment of Centurion Mall. This iconic mall is a regional ‘magnet’, and, as such, we will continue to upgrade the facilities, design features and architectural elements to ensure that it remains relevant, inviting and on trend.

The upgrade includes:

  • A contemporary colour palette of sleek greys and charcoals, softened by warm olive tones, to lend the mall a sophisticated presence.
  • Stylish new ablution facilities with sensor-operated fittings, in line with contemporary bathroom trends.
  • A chic new look for common areas – such as the food court – and for all passages and walkways, using a muted colour palette, along with state-of-the-art fittings and architectural details.

Watch this space for further refurbishment details!

Innovation station

Redefine scoops gold for solar PV technology implementation at SAFMA 2018

Raising the roof on rooftop solar PV projects in 2017:

  • Total installed capacity increased to 7.8 MWp.
  • In the next 18 months, total installed capacity will increase to 22 MWp.
  • The additional 4.2 MWp capacity delivers approximately 6 373 500 kWh annually.
  • Redefine’s total installed solar PV fleet will produce approximately 35 754 600 kWh (kilowatt hour) of solar power per annum when fully operational.

Sizeable solar savings:

  • An indicative saving of 32 819 tCO2e.
  • This is roughly equal to 12 million litres of diesel combusted.
  • If offset against Redefine’s total scope 2 carbon emissions of 46 761 tCO2e in 2017, it is a 70% reduction, assuming a like-for-like portfolio of properties.
  • The total cost savings achieved from existing plants and plants commissioned during the course of the year will be over R32 million.

Powered properties:

In 2017, 9% of electricity consumed at the following properties came from renewable energy:

  • Alberton Mall
  • The Boulders Shopping Centre
  • 90 Grayston
  • 90 Rivonia
  • Black River Park
  • Observatory Business Park
  • Wonderboom Junction
  • Wembley Square
  • East Rand Mall

A solar spread:

Redefine has already installed rooftop solar PV plants at the following properties:

  • Langeberg Mall
  • Boulders Shopping Centre
  • Centurion Lifestyle Centre
  • Stoneridge Centre
  • East Rand Mall
  • Matlosana Mall
  • Moreleta Plaza
  • Wonderboom Junction

Sustainability successes:

In 2017, Redefine achieved the following:

  • Installation of an additional 2 600 smart meters.
  • A further 43 Green Star ratings for buildings across the property portfolio.

New developments

Loftus Park leads the way...

Loftus Park, the dynamic mixed-use green precinct in Pretoria, is officially open for business.

A joint venture with Abland, Loftus Park is next to the city’s legendary Loftus Versfeld Stadium, in the heart of Pretoria’s sporting, cultural and diplomatic hub and a short walk from the Areyeng Rapid Bus service and the Metro Rail train station.

"Nestled next to the landmark stadium, this vibrant new precinct champions sustainable development and will be accredited as a 4 Star Green Star building. We believe it will become an icon in its own right." Andrew König, CEO of Redefine Properties

"We are delighted to bring Loftus Park to life. This market-defining development creates a unique opportunity for businesses and retailers to position themselves in prime space within one of Pretoria’s up-and-coming nodes." Grant Silverman, marketing director of Abland

Phase I features:

  • An expansive open-air piazza, with a big screen, water features, compelling art installations and a play area.
  • A premium Virgin Active Health Club.
  • Anchor tenants like Checkers, Dis-Chem, and PNA.
  • Restaurants Casa Bella, Turn & Tender, Salsa, Rocomamas, and Seattle Coffee Co.
  • Vovo Telo is located inside the infamous Sinbin, first constructed in 1929 as a tennis clubhouse, and later becoming a notorious pub.
  • Services like Postnet and ATMs from Nedbank, Capitec, FNB and Absa.
  • Health and beauty brands like Sorbet, Sorbet Man, and Eyeland Optometrist.
  • A new 152-room Protea Hotel by Marriott, with breath-taking panoramic views of the city.
  • Additional parking for stadium game-goers.
  • 15 800sqm of A-grade office space.

Phase II features:

  • Another 7 600sqm, including a hospital with a specialist focus on sports and performance.

Phase III features:

  • 13 000sqm of office space will be introduced in.

Convenience and community:

  • Within walking distance of the University of Pretoria, and Pretoria Boys and Girls High schools.
  • Close proximity to embassies, the Union Buildings and museums.
  • On the Gautrain network. A Gautrain bus stop connects it seamlessly to Centurion, Sandton, Rosebank and OR Tambo International Airport, via Hatfield Station.

Loftus Park is also expected to be a boost for the greater node, based on the strength of its integrated work-and-play environment.

 
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