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Shopping vs. Shopping centers: Two business models that are multiplying in Buenos Aires - La Nacion Propiedades
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Shoppings vs. centros comerciales: dos modelos de negocio que se multiplican en Buenos Aires
Saben convivir y retroalimentarse, cada uno con sus características propias: metros cuadrados, variedad de marcas, diseño de locales, oferta de servicios, tipo de público y necesidades a satisfacer; los precios y lo que se viene en el sector
www.lanacion.com.ar
June 27, 2024
They know how to coexist and feed each other, each with its own characteristics: square meters, variety of brands, store design, service offering, type of public and needs to satisfy; prices and what is coming in the sector
By Leandro Murciego
The differences and similarities between shopping centers and malls that define new consumer experiences
After the pandemic, shopping trips and malls changed both in terms of their appearance and the way of understanding the business. These spaces began to be redefined, becoming places of experience and relationships. This affected both shopping centers and the so-called Commercial Service Centers (CCS), the latter format began to multiply in some sectors, mainly in Greater Buenos Aires.
The concept of a shopping centre is a group of retail businesses and other commercial establishments that are planned, developed and owned by the same owner. This property is usually managed as a single property. The size and commercial orientation of the centre are generally determined by the characteristics of the market and the area of influence. “The three main physical configurations of shopping centres are closed, open and hybrid shopping centres. Closed malls can be divided into regional centres (general products, with a higher percentage of clothing) and supra-regional centres (same as the previous one, but larger),” explains Marcelo Zuliani, commercial director of Colliers.
In Argentina, the most well-known format is that of the shopping mall. These are usually large complexes made up of one or several buildings, which house a large number of stores, entertainment and service areas and, in some cases, even a sector intended for offices . In addition, they usually have large parking areas.
In history, the first known references of this type are the Parisian covered passages. In the city of Las Luces, about 150 of these commercial complexes were built between the end of the 18th century and 1850, which would be the predecessors of the current shopping center.
The first shopping center in the city of Buenos Aires was Patio Bullrich, founded in 1988. From that moment until today, a lot of water passed under the bridge. Currently, there are more than 55 malls in the country, many of which have begun to transform their business model.
According to the specialists consulted, shopping malls could be defined as an ecosystem of permanence where the consumer obtains multiple experiences , ranging from gastronomy, entertainment, retail, among other classic options. “This type of complex usually attracts the top brands. This phenomenon is observed especially in Argentina where, given the context of insecurity, there is no luxury retail market on the street. For this reason, the main brands are housed in shopping malls, in addition to the traction provided by the tenant mix or set of brands. Recently, new proposals such as coworking and health spaces have been added in different shopping malls, ” says Lucas Desalvo, Retail and Lastmile specialist at Cushman & Wakefield.
Base, the new gastronomic space in Alto Palermo
As far as the public is concerned, in the case of shopping malls, the public is not necessarily from the area. “ The larger or more important proposals tend to attract people from other towns or areas who go to these centres in search of their varied offering. The length of stay is usually longer than in both service and open-air shopping centres,” says Martín Potito, economist and director of LJ Ramos.
Service Malls are a newer concept, but one that has begun to gain followers.New Quilmes Plaza
According to experts, Service Shopping Centers are a newer or rarer concept in this sector. Without a doubt, in Argentina, the first references of this type of business were located in the northern area, more specifically in Pilar, later it was the turn of Nordelta, Paseo Plaza Canning and Nuevo Quilmes Plaza, among others. Without a doubt, a big driver for these developments was the growth of suburban living. “But not everything is on the other side of General Paz. CABA also has its reference: Arcos District. This space, which has 0% vacancy and has an extensive waiting list of firms demanding a place there, took on great relevance and positioning during the pandemic . In the Buenos Aires territory, others that also have a waiting list are: Plaza Canning or Paseo Comercial Torcuato ,” says Andrés Di Nallo, commercial premises broker at Adrián Mercado Real Estate.
Arcos District, the Buenos Aires benchmark for shopping centers where the outdoors rules
Unlike shopping malls, which focus on offering a wide variety of commercial stores, CCSs focus on meeting the daily needs of consumers. “ These commercial proposals are presented as an alternative to what already exists and as a different experience for consumers, by integrating in one place an offer with a mix of stores and services, in a safe environment, and with very wide time ranges every day,” says Potito.
The size, commercial variety, common services and complementary activities that they offer are directly related to their environment and the needs of the area. They usually have centralized administration, homogenized and coordinated advertising and promotions, among other characteristics. This, according to specialists, is a variable income business.
While shopping malls tend to have many clothing and entertainment stores over service offerings, these shopping centers prioritize other areas in their tenant mix, such as: gym, health center, bank, supermarket, pharmacy, hardware and paint store, beauty, specialty stores, among others, while still offering food and recreation spaces. “It is very common for these centers to have free parking, which makes it easier and more convenient for consumers to stay,” highlights Marcelo Chane, member of the group of professional advisors of Nuevo Quilmes Plaza, the open-air service shopping center in the Don Bosco neighborhood in Quilmes. He adds: “ The consumer can find in these spaces a relevant mix of brands, where national franchise stores, regional brands and other zonal brands are prioritized. This is intended to allow the consumer to clearly identify with the economic and content proposal of the space, in a single place and in a friendly way.”
The CCS, such as Nuevo Quilmes Plaza, prioritize in their tenant mix: gym, health center, bank, supermarket, pharmacy, hardware and paint store, beauty, specialized product stores, among others
These service malls are usually located in suburban areas with a high population, which means that they are closer to consumers' homes and are easier to reach in a short period of time. The design of this space is usually done on a human scale, which usually facilitates access. In addition, they have open spaces where greenery and nature are present. "The CCS offer a lot of possibilities for neighbors to be able to solve many of their daily needs in one place, whether it is going to the gym or buying food -in a supermarket- or paying a tax -in a bank-. In other words, these types of complexes quickly become part of the users' lives , since they solve the needs of the neighbors in one place, without having to travel so many kilometers, as happened before their appearance," says Santiago Winokur, a broker specialized in commercial premises for the firm Newmark Argentina. And he adds: “ These spaces usually contribute to an improvement in the area, since they not only provide commercial proposals, but also offer greater movement, which undoubtedly translates into greater security for the environment. In other words, they improve the quality of life of the people who live in the vicinity of these types of projects” ,
According to Chane, service malls offer a personalized shopping experience. “For many people, going to a shopping center becomes an overwhelming experience, while going to CCS tends to be much friendlier,” she says.
Differences and similarities
According to The International Council of Shopping Centers, about half of these centers are anchored by a supermarket, while a third are anchored by a pharmacy. “These anchor stores are supported by stores that sell medicines, sundries, cafes and personal services,” says Zuliani.Another similarity, says Potito, is that -in both formats- after the pandemic there is a better balance in the composition of the tenant mix between services and shops. “Today, the main objective is to attract a greater flow of public that can find a wide range of products and services, in a safe environment,” says the specialist.
Desalvo affirms that the CCS market is more dynamic. These proposals have a high turnover of both tenants and owners. “Perhaps, at this point, the shopping mall market is the opposite, since it is concentrated in fewer players. In that case, the firm that operates it unifies everything from the pricing policy to the marketing strategy, among a large number of factors that define the business,” says Desalvo.
Although clothing brands usually choose both formats, both the shopping center and the service shopping center, there are usually some differences. In the first case, those that seek this commercial format are the more design and fashion clothing stores that require, at the time of purchase, more time in the customers' decision. The CCS, although it does not exclude the clothing sector, is aimed at other types of brands. The commercial proposal offered by service shopping centers usually has more defined options related to the habits of the public in the area. In many cases, the brands that are part of the CCS tend to be entrepreneurs or local companies or small brands.
An open-air shopping center in La Plata
Prices
Talking about value per square meter, according to the references, is a bit complex. Both in service shopping centers and shopping centers, the majority is marketed under a format that is composed of a minimum rental value or a percentage of the turnover made by the firm, resulting from the sale of its products, which be older. In addition, it includes a percentage for advertising and promotion of the shopping center, and common expenses or expenses. “In the case of those who have a percentage on sales, that differential is paid after the month closes for the purposes of computing the percentages ,” says Potito.
Cardinals Shoppings, the new CCS of Pilar del Este.Cardinals Shopping
Among the new developments in the sector, the launch of the first service mall in Pilar del Este stands out: Cardinal Shopping. It will be a 7,647 m² complex, which will have 36 commercial premises on three floors. “The place will dialogue with the natural environment, as it will have high waterfalls, vertical gardens, plazas, and large green spaces spread out across its grounds,” says Pablo Batalla, CEO of LB Company, developer of Cardinal Shopping.
The ground floor will have 22 premises, with surfaces ranging from 50 to 120 m2, complemented by mezzanines of between 25 m2 and 58 m2, and a large premises for a supermarket. “In addition, the ground floor will have 280 parking modules equipped with charging stations for electric vehicles.”
The premises are sold from US$85,000Cardinals Shopping
On the first floor there are 15 commercial premises with dimensions ranging between 42 m² and 88 m², along with a macro premises intended for a gym. On the second floor there are five double-height stores from 111 m2 to 174 m2, and a gastronomic plaza. Currently, premises are sold for prices starting at US$85,000.
Specialists maintain that both malls and CCS are concepts that coexist and feed off each other; some focus more on services and have a more flexible format, while others require greater urban concentrations. However, there is a certain mutation that is observed in the traditional shopping mall market to focus more on service, gastronomy and recreation on a larger scale than they originally had.
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