Designer Outlet Croatia

Boosting performance across a hybrid retail destination

Profile

Designer Outlet Croatia is a stunning new aspirational outlet shopping experience in South-Eastern Europe, which sits alongside a popular IKEA store. Strategically positioned south-east of Zagreb, the outlet centre opened in June 2018 and boasts 15,000 sq m of discounted luxury clothing brands, including Tommy Hilfiger, Calvin Klein, Guess and adidas. There’s ample parking, dining choice for shoppers, and an outdoor marketplace linking the two large retail properties.

This exciting ‘hybrid’ retail destination aims to offer retail and leisure entertainment in one self-contained place. It’s where visitors can shop for furniture, fashion and lifestyle, enjoying stylish surroundings, comfort and convenience. Ingka Centres (previously IKEA Centres) is the majority investor in Designer Outlet Croatia in partnership with Mutschler Outlet Holding. The location is managed by ROS Retail Outlet Shopping which is operating a portfolio of premium outlet centres across Europe

Solution

During the summer of 2018 a comprehensive ShopperTrak traffic solution was installed at all entrances to the outlet centre, and for all stores within the centre. Traffic counting was also introduced at the entrances and exits of the IKEA store.

An interior analytics solution was installed giving insights into behaviours within the outlet centre and the IKEA store. The resulting set-up provides a vast range of data insight into traffic performance across the location. Data can be split into zones for the purpose of understanding zonal correlations for use in strategic planning, something the retail teams were very keen to be able to do

The challenge

The management team sought a method to consistently measure and understand ongoing traffic trends regarding the correlation between both properties – the IKEA store and Designer Outlet Croatia.

They also wanted to prove the hybrid retail development is capable of delivering ROI and succeeding as a complimentary traffic driver for the different elements. Looking ahead, there is a need for traffic data to inform decisions on further planned hybrid projects.

Additionally, as Designer Outlet Croatia sets its rents according to footfall in stores, it has been vital to gather 100% accurate traffic statistics to share with existing and future tenants.This makes rent setting and negotiations possible and helps with ongoing tenant planning and centre management.

For all these reasons, in May 2018 ShopperTrak was commissioned to provide the necessary traffic counting and analytics capability for the development.

Designer Outlet Croatia is a stunning new aspirational outlet shopping experience in Zagreb, Croatia, which sits alongside a popular IKEA store. The outlet centre opened in June 2018 and boasts 15,000 sq m of discounted luxury clothing brands, including Tommy Hilfiger, Calvin Klein, Guess and adidas.

Benefits

Ingka Centres has been able to closely monitor the traffic impact in its store and the retail attraction next door. A key finding has been that, within seven months since its opening, a strong regional shopping destination has been created from the Ikea and Designer Outlet Croatia hybrid project.

The results already show that the construction of Designer Outlet Croatia has been a worthwhile investment.

It’s also now very easy to see the most attractive locations in the premium outlet village – which brands are pulling the most traffic and helping to increase dwell time. Understanding the interactions zone-by-zone across the whole area is proving invaluable.

“Thanks to the insight we have been able to uncover as part of our partnership with ShopperTrak, we also expect that letting any remaining units in the outlet centre will be far easier based on the traffic results of recent months.”

Branko Mihajlov, Project Manager & Head of Leasing Croatia/Serbia at Ingka Centres

Planning for peak and labour scheduling at the IKEA store is becoming easier, thanks to more foresight based on traffic data. Operations – such as deliveries and staff training -can be planned around traffic trends and power hours.

Visitor behaviour will be tracked over a longer period to recognise patterns, and potentially this information can be used in marketing strategy and seasonal event planning.It is expected that letting any empty units in the outlet centre will be far easier based on the traffic results of recent months. A good traffic story is highly valuable in leasing negotiations. Certainly, the traffic each store is generating is now scientifically proven, and this can underpin the rental arrangements, and ongoing leasing strategy across the site.

“This is the first time we have fully measured traffic across a site and used the resulting data to scientifically, prove the commercial success of a project. This data is also essential to help us plan operations and leasing. It’s also now very easy to see the most attractive locations in Designer Outlet Croatia, which brands are pulling in the most traffic and helping to increase dwell time, whilst understanding the interactions zone by zone across the whole area is proving invaluable.”

Branko Mihajlov, Project Manager & Head of Leasing Croatia/Serbia at Ingka Centres

About Johnson Controls

Johnson Controls is a global leader creating a safe, comfortable and sustainable world. Our 105,000 employees create intelligent buildings, efficient energy solutions and integrated infrastructure that work seamlessly together to deliver on the promise of smart cities and communities in 150 countries. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. We are committed to helping our customers win everywhere, every day and creating greater value for all of our stakeholders through our strategic focus on buildings.

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About Sensormatic Solutions

Sensormatic Solutions is the leading global retail solutions portfolio of Johnson Controls enabling smart and connected shopper engagement. By combining critical insights into retail inventory, shopper traffic and loss prevention, Sensormatic Solutions powers operational excellence at scale and helps create unique shopping experiences. Our solutions deliver real-time visibility and predictive analytics for accurate decision-making across the enterprise, enabling retailers to confidently move into the future. With more than 1.5 million data collection devices in the retail marketplace, we capture 40 billion shopper visits and track and protect billions of items each year. Our retail portfolio features the premier Sensormatic®, ShopperTrak® and TrueVUE™ brands.

For more information, visit www.Sensormatic.com,  or follow us on LinkedIn, Twitter and our YouTube channel.

 

 

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