What: WWD takes stock of the 2021 edition of MAPIC, which was held physically for the first time since the beginning of the pandemic.

Why it is important: The opening keynote, held by Philippe Houzé, was all about putting people first, delivering experiences, rather than focusing on profits in a context where competition comes from everywhere.

This year’s MAPIC welcomed a third of its 2019 traffic, and was all about mixed-use developments, combining shopping with offices, hotels, restaurants, gaming and other digital experiences. Eric Costa, CEO fo Citynove (the real estate division of Galeries Lafayette) explained that the cookie-cutter retail strategy is now over: it is all about being able to integrate the retail surface into something bigger.

International retailers (New West End Company, McArthurGlen Group) all mentioned that footfall is stabilizing (at a lower level than 2019 – and it will stay like this until international tourism reopens), with an uptick in terms of average basket, allowing to reach 70% of their pre-pandemic sales.

However, the weight of international travellers (30% of the traffic and 65% of sales in the case of New West End Company) makes that everyone is longing for their return, not expected before the second half of 2022.

Another trend currently taking place is the fact that people are not shopping anymore by necessity, but by pleasure: retailers even talk of shopping resorts replacing shopping malls. This means that people need to feel relaxed and well, meaning that more space might have to be allocated, as explained by Eric Costa, for whom retail shifts from a transactional model to one that builds relationship with people. The Galeries Lafayette Group announced that 2,000 sqm would be dedicated to health and well-being in the basement of the Haussmann store next year.

In Commercial Real Estate, Experience Matters