The Network of Neighbourhood Centres at MAPIC Russia 2018

APRIL 28, 2018
On April, 24th during special ADG talks session at MAPIC Russia ADG group explained, how the use of worldwide retail trends helps shopping centres to gain stable and high traffic and how the new commercial real estate format by ADG group – Neighbourhood Centre – operates in exact locations.
The special session "Three times per week. How ADG group fills first Neighbourhood Centres: zoning, architectural plan, retail formats" was held on developer`s booth at MAPIC Russia. ADG group presented the details of 39 Neighbourhood Centers project realization. For the first time developer introduced specific retail formats and zoning for the most effective usage for both tenants and consumers, which provide high and stable traffic to diverse formats of objects: small, medium and large.
  • Anna Obraztsova
    Commercial Director, ADG Group
    "Neighbourhood Centre`s format depends on local customers` needs, level of competition and tenants` demand. An average Neighbourhood Centre is a small object with a focus on daily needs of people living in the exact neighbourhood. Medium format is used for locations with no advanced cinema and entertainment offer within 15 minutes drive time, that is why additional space of medium Neighbourhood Centres is used for multiplex cinema and extended entertainment zones. Large objects represent a mix of Neighbourhood Centre and modern fashion mall. For example one of the L-format Neighbourhood Centre Sofia is to become a fashion destination for all the Eastern Administrative District of Moscow"
Moscow is an excellent example of customers' needs evolution. Time becomes more and more valuable, that is why in 2017 mall accessibility became a crucial shopping driver in Moscow — for the first time location appeared to be more important than price or choice range. Muscovites` unwillingness to spend time on the road as well as lack of retail and entertainment infrastructure in capital`s remote neighbourhoods raise the demand of convenient stores.

So how according to the specific consumers behavior in Moscow`s districts do Neighbourhood Centres gain stable traffic with 3 visits per week frequency? With clear choice of daily needs, entertainment and educational retail formats, F&B and socializing opportunities. People will return to Neighbourhood Centres several times per week for regular shopping, fine dining or quick lunch, entertainment, education, sports and communication.
  • Anastasia Sharkova
    Leasing Director, ADG Group
    "Tenants are the core of ADG group`s project as they create the Neighbourhood Centres' customer experience. We believe that emotional retail generates traffic of commercial real estate, that is why ADG group devote 20% of leasing area to cinema, entertainment and edutainment formats and 20% to Food & Beverage. More than 40% of the total area will be filled with tenants, whose business is based on building of new experience and impression"

ADG group shows its approach to Neighbourhood Centres tenant-mix development and floor adaptive zoning on the example of objects that are already under construction:

  • Small objects on the example of Angara Neighbourhood Centre (nearly 6 000 m2 GLA): unlike ordinary malls, in Neighbourhood Centres food, entertainment and edutainment retail formats are presented almost on all floors. Underground floor is devoted to essentials: services and goods of daily demand such as supermarket, farmer products, domestic services and home goods. Ground floor is mostly focused on women`s audience and includes family restaurant, café, wellness and beauty shops as well as pop-up stores for impulsive purchases. Second and third floors are dedicated to edutainment and entertainment of audience of different age with special children educational centre, cinema, leisure food hall, sport, kids goods and gadgets. Floors zoning makes centres convenient for diverse audience segments, from mothers with children to student groups.
  • Medium objects on the example of Budapest Neighbourhood Centre (nearly 11 000 m2 GLA): medium format is a Neighbourhood Centre with an enlarged edutainment and entertainment zone used mostly for a multiplex cinema. These objects are focused on the locals within 15-minutes walking distance and on the additional audience of those who live within 15-minutes drive. Floor zoning is similar to small format one’s: essentials for underground floor, food and entertainment for all main floors, while the ground floor is devoted to women`s needs and the second floor — to family entertainment.
  • Large objects on the example of Sofia Neighbourhood Centre (more than 20 000 m2 GLA): there is a mix of Neighbourhood Centre and a contemporary shopping mall, which results in appearance in an object of a huge GLA with fashion cluster and multiplex cinema. According to the location, traditional Neighbourhood Centre tenants-mix is supplemented with two additional floors of fashion stores: for example, Sofia is located on the East of Moscow and is to become the only modern mall in the area. That is why this Neighbourhood Centre responds not only to the daily needs of 70 000 local residents but also to the demand of fashion cluster for the whole administrative city area, which includes 600 000 Muscovites living in 15-minutes drive distance.
ADG group`s Neighbourhood Centres project includes 23 S-objects, 10 M-objects and 2 L-objects as well as several objects with a unique concept approach such as Rodina and Warsaw, which required specific concept, architectural plan and tenants-mix according to its location and architecture. 5 ADG group`s objects already are under construction. The first Neighbourhood Centre Angara will open in the end of 2018, while the whole network will start operating by the end of 2019. 30% of GLA is already signed by anchor tenants, including supermarkets Lenta and South Korean movie theatre CJ CGV.
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