In difficult conditions, the largest indoor shopping centre in the Netherlands took a flying start a year ago: “If there is still a physical store after the perfect storm of the pandemic, it must be very relevant.”
Towards 15 million visitors
With 117,000 sqm and 280 units, Westfield Mall of the Netherlands near The Hague is the largest indoor shopping centre in the country. One year after its opening, the shopping centre can look back with satisfaction, despite the particularly difficult circumstances. “We started shopping by appointment on 18 March 2021. It was only a few months later that we were able to let go of restrictive measures; on 18 December we had to close again, and on 15 January we were allowed to reopen… So you can not call it a normal year”, COO Jurn Hoeksema of Unibail-Rodamco-Westfield (URW) points out.
“We are very proud that at the opening, 94 % of our space was let and that we welcomed thirteen million people in a year. We had aimed for between twelve and fourteen million in a ‘normal’ market, so we can only be satisfied. In time, we would like to grow to fourteen to fifteen million visitors.”
A day out
“This is an exceptional product for the Netherlands”, Hoeksema emphasises. Of course, there is much discussion about the relevance of such large malls, but URW has not built a new mall here, but strengthened an existing one. “In 2009 we started redeveloping shopping centre Leidsenhage. At that time there were about 80 owners. Over the past twelve years, we have brought the shopping centre to where it is today. That is incomparable with a typical mall development abroad, where you buy a piece of land, build it and open it. This is an ‘urban regeneration’ project, where we improve an existing site that actually has more potential to the standard of today.”
A key part of its success is its balanced and contemporary mix. Westfield Mall of the Netherlands is fully committed to growth sectors such as dining, entertainment, sports, health & wellness…. “We see these categories growing throughout our portfolio. Here, they make up about one third of our footprint, which is already much more than in existing malls.” The intention is to use that offering to promote the concept of ‘a day out’. “This is not a shopping centre where you quickly buy something and leave again. The dwell time is enhanced by the wide range on offer. We have the best cinema in the Netherlands here, for example.”
From fashion to cars
The shopping centre is built around three destination zones, each with its own atmosphere and identity. In the Fresh Food Market, shoppers will find a wide range of delicacies and fine fresh food shops: baker, butcher, cheesemonger, greengrocer… In the ‘Eettheater’ on the first floor, visitors will find a varied mix of restaurants and food kiosks. Finally, The Gallery is an area with a distinctive architecture and a different type of shops: smaller boutiques in an attractive setting.
In addition, Westfield Mall of the Netherlands has an impressive supermarket offering with Jumbo Foodmarkt and Albert Heijn XL – this is the only place in the Netherlands where these two major formulas coexist. And the big fashion retailers all have their flagships here. “So we have the biggest and best Zara, H&M, The Sting, Peek & Cloppenburg here…” Also noteworthy is the presence of several (electric) car brands, which you would not immediately expect in a shopping centre: Polestar, MG, Volkswagen dealer Wittebrug, even the Chinese Xpeng with a flying car…
Physical store remains relevant
Westfield’s international appeal helps: “When we opened, we immediately had ten international newcomers on the Dutch market. Brands that choose to address the Dutch consumer first here, and not in the (major shopping streets) Kalverstraat or Lijnbaan. Why? Because of the product, but also because of Westfield’s track record. They have confidence in it. There you see the strength of being active all over the world with the best quality. That is a unique advantage.”
“We have also attracted tenants who were previously only active online, such as Pink Gellac or Miccy’s. They open their first physical store here and then they not only see excellent sales in their store, but also a ‘halo effect’: online sales in the Hague region increase because they have a store here. Conversely, 60 % of our retailers offer click & collect here. For them, this also strengthens their online channel.”
Does Hoeksema see that buying behaviour has changed dramatically after the pandemic? “We see that the interest in the best locations is still increasing. Last year, our top fifty retailers increased their retail floor space by an average of 7 %. The big brands say it in their annual reports: we are closing stores, but the existing stores are becoming more important, as fulfilment centres and to enhance brand identity. We think we are well placed to do that. The vital role of the physical store is there. If there is still a physical store after the perfect storm of the pandemic, it must be very relevant…”
Aiming for a snowball effect
But there are also locations that will be redeveloped, Hoeksema points out. “Look at the impact on major cities: the top locations will hold out, but secondary areas will struggle. In the Netherlands, the playing field was always different: the ‘Randstad’ would just be a city in another country. In France, our portfolio is in Paris and Lyon. In the Netherlands, we are in Almere, Zoetermeer, Amstelveen and Leidschendam. That is a completely different game.”
In short, Dutch consumers – who are quite local to Westfield Mall of the Netherlands – still have to get used to the idea of driving forty-five minutes and then spending a whole day with the family in a place where you find everything under one roof, with free parking. “We are still building that appeal. In Paris, a 45-minute drive for a day out is a given. But in the Netherlands… The product ‘mall’ is not very well known yet. But once people have been there, you get a snowball effect.” What catchment area is the shopping centre aiming for? “It would be great if we become a household name in Rotterdam, Utrecht and Amsterdam. We already are one in The Hague.”
Destination for events
What further ambitions does Westfield Mall of the Netherlands have now? “Firstly, we still have about 5 % to let. Secondly, through marketing and promotion, we want to attract more people outside our direct catchment area. And thirdly, we are going to do some brand upgrades, to be positioned a bit higher. We have just welcomed Tommy Hilfiger, which is a first step. We are in talks with more brands.”
URW is also looking to focus heavily on using the mall as a destination for events. “We have very big ambitions in terms of commercial partnerships: brand launches, media and events. Our Central Plaza was built as an event space for activations. Now, for example, there is a Samsung stand with the latest smartphones. Last weekend we had a surprise performance by Ronnie Flex which was simultaneously live-streamed on all our screens and social media channels. With events like these, we want to generate 75 million euros in additional revenue at a corporate level in Europe over the next three years. We have the infrastructure. This has to become a lifestyle destination brand.”
