Slide 1: We shape the convenience place to be
WE SHAPE THE CONVENIENCE PLACE TO BE L JUNE 2016
Slide 2: The importance of being convenient
THE IMPORTANCE OF BEING CONVENIENT >14 million people Annual footfall of Retailer sales across living in our >154 million visits Mercialys’ portfolio: catchment areas €1.6bn 57 projects ongoing 630 retailers giving Leasable area of access to Click & 920,000 sq.m Collect across our portfolio 2
Slide 3: There is life outside world-cities
THERE IS LIFE OUTSIDE WORLD-CITIES: MERCIALYS’ PORTFOLIO IS WELL POSITIONED TO BENEFIT FROM POSITIVE TRENDS FOR PROVINCIAL MARKETS… 3
Slide 4: Network aligned around regions with positive migratory flows and employment
…BECAUSE OUR NETWORK IS ALIGNED AROUND REGIONS WITH POSITIVE MIGRATORY FLOWS AND EMPLOYMENT TRENDS Average annual change in population >= 1.2% Change in net jobs in relation to the working Outperformance in relation to the national (%) – 1999 to 2009 (*) population in 2014 (**) average < 1.2% and >=
Slide 5: Strong, accretive development pipeline to be completed by 2020
STRONG, ACCRETIVE DEVELOPMENT PIPELINE TO BE COMPLETED BY 2020 Controlled Potential pipeline: pipeline: €224m with €367m with a 7.4% yoc a 6.5% yoc Transformation of 21 Marseille Plan de Campagne hypermarkets shopping center extension Toulouse Fenouillet (phase 2) Mixed-use high street retai
Slide 6: Unique partnership with a major food retailer
UNIQUE PARTNERSHIP WITH A MAJOR FOOD RETAILER: A CORE STRENGTH FOR MERCIALYS ASSET MANAGEMENT LETTING Fees paid to Mercialys for asset management Fees paid to Mercialys for missions letting missions PROJECTS BACK OFFICE SERVICES Access to a unique Property management, platform of projects legal, tax
Slide 7: How were the Monoprix projects selected?
BACK TO TODAY’S AGENDA: HOW WERE THE MONOPRIX PROJECTS SELECTED? OPERATIONAL PROCESS Prime locations in city centers Upside potential through a transformation project 5 sites to be 15 assets under review transformed acquired in mid-2015 in H2 2015 Location Higher than average purchasing power CORPOR
Slide 8: Consistent fit with Mercialys' drivers & values
CONSISTENT FIT WITH MERCIALYS’ DRIVERS & VALUES Boosting the FFO & Dedicated & Preparing the future total return experienced team Getting access to a Increase in rent from Enhanced expertise in customer base on additional retail space mixed-use development convenience markets, through a “lean and wh
Slide 9: 84 years old...
a 84 VEARS OLD.. WW ri @ PIERCIALYS
Slide 10: ...and still kicking
.. AND STILL KICKING | t | : monop” beauty / = PIERCIALYS
Slide 11: Always on the right spot in city centers
ALWAYS ON THE RIGHT SPOT IN CITY CENTERS ●Located in 85% of cities with ●Good match for all customers over 50,000 inhabitants 604 SHOPS – 6 CONCEPTS * MONOPRIX FLAGSHIPS CONVENIENCE 313 SHOPS 152 SHOPS ORGANIC FOOD ADDICTS URBAN 129 SHOPS CUSTOMERS BEAUTY ADDICTS 10 SHOPS Monoprix Réaumur-Sébastopol
Slide 12: Iconic, premium brand
ICONIC, PREMIUM BRAND… • Modern and trendy Monoprix Cours Mirabeau – Aix-en-Provence • Does not take itself too seriously • Distributing quality products: Monoprix Gourmet, Organic, etc. • Focused on quality • Displaying a full range of products • Offering services Monop’ Place Bellecour – Lyon 12
Slide 13: ...with strong partnerships
…WITH STRONG PARTNERSHIPS ●Make “le beau et le bon”* accessible to all ●Partnerships with designers and trendy brands to maintain customer curiosity Textile & Fashion Food Cosmetics * The beautiful things and the good things 13
Slide 14: Differentiating brand
DIFFERENTIATING BRAND… ●“Vivement aujourd’hui”*: new tagline full of optimism and enthusiasm • Provoke surprise in everyday life • Provide customers with innovation and create a buzz ●Outside-the-box communications strategy • Connect with customers • Surprising and humorous marketing * Can’t wait fo
Slide 15: ...with an innovative DNA
…WITH AN INNOVATIVE DNA ●New packaging for own-label products • Inspired by Warhol’s Factory and 1960s pop culture • The “p’tit prix”* policy: complete the offer with cheaper, well-packaged products ●New e-commerce website launched in December 2015 • New browsing inspired by social media • New style
Slide 16: Monoprix Chaville project
MONOPRIX CHAVILLE PROJECT 16
Slide 17: Monoprix - Chaville
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE BUOYANT ENVIRONMENT UNDERGOING A TRANSFORMATION CITY CENTER DEVELOPMENT ZONE Chaville, a district in the Inner Rim, in Paris’ southwest suburbs, is around 6 km from the capital and 5 km east of Versailles. The store is located in a new redeveloped
Slide 18: Monoprix - Chaville presentation of the site
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE PRESENTATION OF THE SITE OVERVIEW Asset make-up • 3-floor Monoprix store, with 2,800 sq.m of sales area and 3,200 sq.m of stockrooms • 2,000 sq.m multistory car park, with 80 spaces • 2,800 sq.m plot Opening date: 1957 Legal system: freehold Envir
Slide 19: Monoprix - Chaville socioeconomic data
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE SOCIOECONOMIC DATA HOUSEHOLDS WITH STRONG PURCHASING POWER 1999/2012 growth: +7.7% 2012 : 19,343 inhabitants Percentage of families: 64% French average: +5,3% 19 500 19 343 10% 8,64% 65% 9% 64,0% 7,66% 64% 19 000 8% 18 576 62,8% 7% 63% 18 500 6% 5
Slide 20: Monoprix - Chaville buoyant residential real estate market
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE BUOYANT RESIDENTIAL REAL ESTATE MARKET 6 PROGRAMS LAUNCHED SINCE NOV. 2011 Average new-build price: €6,700/sq.m with parking Average price for old properties: €4,437/sq.m 16 units 25 units 40 units 25 units 121 units 93 units Research carried out
Slide 21: Monoprix - Chaville project focus
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE PROJECT FOCUS Pre-project Post-project PROVISIONAL PROGRAM Program: • Demolition of the Market Hall by the city (planned for July 2016) • Transfer of the pharmacy (owned by SEM Locale Seine-Ouest Aménagement) • Major redevelopment of the Monoprix
Slide 22: Chaville residence project
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE PROJECT FOCUS RESIDENCE PROJECT Volume: housing section • Creation of a residence with a landscaped garden at the heart of the block • Development of a gradually sloping public space encouraging flows between the old and new Chaville and enabling
Slide 23: Chaville commercial project
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE PROJECT FOCUS COMMERCIAL PROJECT Project’s commercial section MONOPRIX store with 3,050 sq.m of sales area and 1,300 sq.m of stockrooms on 2 levels Creation of 5 street-level stores at the base of the building, with 2 units set aside for reloc
Slide 24: Chaville architecture
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE PROJET FOCUS ARCHITECTURE Store at the crossroads of 4 architectural styles • Late 19th century architecture on Avenue Salengro: - 2 and 3-story buildings - Brickwork facades • Monumental architecture with Notre Dame de Lourdes church, built in 19
Slide 25: Chaville architecture: timber-clad facades
CHAVILLE/MONOPRIX - PRESENTATION MONOPRIX - CHAVILLE PROJECT FOCUS ARCHITECTURE In the new district, timber-clad facades, open spaces and gardens Upper ground floor Lower ground floor Non-contractual or legally binding document 25
Slide 26: Monoprix Asnieres-sur-Seine project
MONOPRIX ASNIERES-SUR- SEINE PROJECT 26
Slide 27: Progress with the Asnieres sur Seine project
ASNIERES/MONOPRIX - PRESENTATION PROGRESS WITH THE ASNIERES SUR SEINE PROJECT ASNIERES-SUR-SEINE Bois Colombes 1. LOCATION - TRANSPORT ASNIERES-SUR-SEINE - 3 km from the gateway to Paris Transilien RER express trains Non-contractual or legally binding document 27
Slide 28: Asnieres Bourguignons attractive, accessible shopping district
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX - ASNIERES "BOURGUIGNONS" ATTRACTIVE, ACCESSIBLE SHOPPING DISTRICT 140 SHOPS, VIBRANT NEIGHBORHOOD WITH VERY GOOD PUBLIC TRANSPORT CONNECTIONS Bois-Colombes market Grand Paris Express station 2027 Bois- Bois- Colombes Colombes station 11 min from St Lazare R
Slide 29: Asnieres socioeconomic data
ASNIERES/MONOPRIX - PRESENTATION PROGRESS WITH THE ASNIERES SUR SEINE PROJECT ASNIERES-SUR-SEINE 2. SOCIOECONOMIC DATA 2013: 83,485 inhabitants 1999/2012 growth: +9,9% Percentage of families: 57% French average: +5,3% 86 000 12% 64% 62,8% 83 485 9,9% 84 000 82 056 10% 8,6% 62% 60,6% 82 000 8% 80 000
Slide 30: Asnieres dynamic real estate market
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX - ASNIERES "BOURGUIGNONS" DYNAMIC REAL ESTATE MARKET Market research carried out by: 17 PROGRAMS LAUNCHED SINCE SEPT 2013 WITHIN A 1 KM RADIUS AVERAGE PRICE: €6,600 incl. tax / sq.m of living space, with parking Non-contractual or legally binding document 30
Slide 31: Asnieres sur Seine project focus
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX – ASNIERES SUR SEINE PROJECT FOCUS CURRENT STRUCTURE PLANNED DESIGN Project architect: PLANNED PROGRAM Extension of the Monoprix Over 100 apartments Around 200 parking spaces CURRENT STRUCTURE AFTER PROJECT: Ground floor AFTER PROJECT: Intermediate flo
Slide 32: Monoprix focus: 1st basement floor
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX – ASNIERES "BOURGUIGNONS" MONOPRIX FOCUS MONOPRIX PROGRAM - 1st basement floor CURRENT STRUCTURE FUTURE PROJECT 1st basement 1st basement Sales area Non-contractual or legally binding document 32
Slide 33: Monoprix focus: ground floor
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX – ASNIERES "BOURGUIGNONS" MONOPRIX FOCUS MONOPRIX PROGRAM - Ground floor CURRENT STRUCTURE FUTURE PROJECT (includes acquisition of corner shops) Ground floor Ground floor Other shops Sales area parking Sales area Non-contractual or legally binding document 3
Slide 34: Monoprix focus: first floor
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX – ASNIERES “BOURGUIGNONS” MONOPRIX FOCUS MONOPRIX PROGRAM - First floor CURRENT STRUCTURE FUTURE PROJECT 1st floor 1st floor Housing First floor Non-contractual or legally binding document 34
Slide 35: Monoprix focus: second floor
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX – ASNIERES "BOURGUIGNONS" MONOPRIX FOCUS MONOPRIX PROGRAM - Second floor CURRENT STRUCTURE FUTURE PROJECT 2nd floor 2nd floor 3rd floor and < 100 sq.m intermediate floors Non-contractual or legally binding document 35
Slide 36: Project views
ASNIERES/MONOPRIX - PRESENTATION MONOPRIX – ASNIERES "BOURGUIGNONS" MONOPRIX FOCUS PROJECT VIEWS LONGITUDINAL SECTION CROSS-SECTION Non-contractual or legally binding document 36
Slide 37: Project facades
ASNIERES MONOPRIX PRESENTATION MONOPRIX – ASNIERES "BOURGUIGNONS" MONOPRIX FOCUS PROJECT FACADES FACADES Rue des Bourguignons and Rue du Chalet FACADE patio-gardens Non-contractual or legally binding document 37
Slide 38: Monoprix Puteaux project
MONOPRIX PUTEAUX PROJECT 38
Slide 39: Monoprix Puteaux city center 5 minutes from La Defense
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX – PUTEAUX CITY CENTER 5 MINUTES FROM LA DEFENSE SITE CLOSE TO ALL CONVENIENCES 3 km from the gateway to Paris, the Puteaux district is located in the northwest of Hauts-de-Seine, France’s richest département Two-thirds of the La Défense district is located in
Slide 40: Monoprix Puteaux presentation of the site
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX – PUTEAUX PRESENTATION OF THE SITE OVERVIEW Asset make-up • 3-floor Monoprix store, with 2,216 sq.m of sales area and 4,112 sq.m of stockrooms Opening date: 1999 Legal system: joint ownership Environment • The asset is located at the heart of the city center,
Slide 41: Monoprix Puteaux socioeconomic data
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX - PUTEAUX SOCIOECONOMIC DATA STRONG REPRESENTATION OF YOUNG EXECUTIVES 2012: 44,514 inhabitants 1999/2012 growth: +9.2% Low percentage of families: 54.7% French average: +5,3% 46 000 12% 66% 45 000 44 514 43 994 64% 62,8% 44 000 10% 9,2% 8,6% 62% 60,6% 43 000
Slide 42: Puteaux buoyant residential real estate market
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX - PUTEAUX BUOYANT RESIDENTIAL REAL ESTATE MARKET 14 PROGRAMS LAUNCHED SINCE JUL. 2013 Average new-build price: €7,600/sq.m with parking Average price for old properties: €6,082/sq.m 15 units 45 units 39 units 71 units 22 units 33 units 57 units 42 units 47 un
Slide 43: Monoprix Puteaux project focus
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX - PUTEAUX PROJECT FOCUS Pre-project PROVISIONAL PROGRAM Demolition of Building D General program: Demolition of building D and, as an option, the real estate complex at the corner of Rue Mars & Roty and Rue Jean Jaurès Major redevelopment of the Monoprix
Slide 44: Puteaux residential project
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX - PUTEAUX PROJECT FOCUS RESIDENTIAL PROJECT Housing section Construction of a multistory residence with around 110 apartments Landscaping of the heart of the block Extension of Théâtre development zone parking, with 150 spaces created Ground plan 5th fl
Slide 45: Puteaux residential project
PUTEAUX/MONOPRIX - PRESENTATION MONOPRIX - PUTEAUX PROJECT FOCUS RESIDENTIAL PROJECT Non-contractual or legally binding document 45
Slide 46: We shape the convenience place to be
WE SHAPE THE CONVENIENCE PLACE TO BE L JUNE 2016
Slide 47: The age of efficient consumption
THE AGE OF EFFICIENT CONSUMPTION 47
Slide 48: Daily habits transformed in 10 years
DAILY HABITS TRANSFORMED IN 10 YEARS Evolving day-to-day habits Q: Would you say that your day-to-day habits have changed over the past 10 years in the following areas? Changing consumption behaviours The way you shop for food (place of purchase, 23% 36% 31% 10% frequency, time spent, etc.) Change o
Slide 49: Behaviours transformed by digital technology
BEHAVIOURS TRANSFORMED BY DIGITAL TECHNOLOGY People want technology / digital to bring services not gadgets Sources: Digitas / Vivaki 2014 Connected Shopper 49
Slide 50: Fragmentation of shopping journeys benefiting convenience channels
FRAGMENTATION OF SHOPPING JOURNEYS BENEFITING CONVENIENCE CHANNELS Breakdown of the population based on the number of Breakdown of food shopping journeys by category – monthly shopping journeys (1) (as %) food retail in France (offline only) (1) As % of total sales Change 12-13/13-15 16% 23% Large 3
Slide 51: Demographic changes strengthening recurrent purchases
DEMOGRAPHIC CHANGES FURTHER STRENGTHENING TRENDS FOR RECURRENT PURCHASES Household size Number of households ('000) 3,5 27 534 3,0 24 332 21 942 2,5 19 589 17 745 2,0 2,9 2,7 2,6 1,5 2,4 2,3 1,0 2,16 2,08 0,5 0,0 1975 1982 1990 1999 2009 2020 2030 Source: INSEE, Kantar Worldpanel, 2007-2060 populati
Slide 52: Growing importance of population over 50s
GROWING IMPORTANCE OF POPULATION OVER 50S FAVOURABLE TO PROXIMITY SHOPPING Disposable income depending on age of Total population in each age head of household (2) bracket(1) (as %) in euros Total amount excluding exceptional resources Total consumption Under 20 20 to 64 65 and over 35 505 35 732 33
Slide 53: Shopping visits are more regular
SHOPPING VISITS ARE MORE REGULAR 8% 20% 52% of Several times per week very Frequency regular Once per week visits of visits 40% At least once per month 32% Less often Shopping Centers 95% visit mixed habits visits 5% 50% 45% Large food store only Mixed mall / large food store Mall only Source: 2015
Slide 54: Shopping visits are more and more efficient
SHOPPING VISITS ARE MORE AND MORE EFFICIENT Shopping Center Visit dwell time reasons Shopping for shopping 78% Average of 51.9 mins (vs 50.6 mins historically) 46.6 mins for mixed mall / 57.5 mins for mall- Going shopping in the mall's stores 57% 21% large food store customers only customers Wanderi
Slide 55: Services at the heart of customer interests
SERVICES AT THE HEART OF CUSTOMER INTERESTS Keywords linking to our shopping centers’ digital portals 10000 1000 No. of queries 100 10 1 > 50% services Source: FULLSIX study for Mercialys (March 2016) 55
Slide 56: Large food stores and shopping centers: an evolving model
LARGE FOOD STORES AND SHOPPING CENTERS: AN EVOLVING MODEL 56
Slide 57: France still dominated by large food stores
FRANCE STILL DOMINATED BY LARGE FOOD STORES Food format market shares in 2014 and changes vs 2005 (1) Food Other, including Country Hyper Super Discount e-commerce neighborhood & Drive 31.3 32.4 7.8 2.3 26.2 France (+2.2 pts) (+1.0 pt) (+0.8 pts) (+2.2 pts) 33.4 8.4 5.9 3 49.3 UK (-3.8 pts) (-1.5 pt
Slide 58: Centers from 20,000 to 40,000 sq.m are the No. 1 segment
CENTERS FROM 20,000 TO 40,000 SQ.M ARE THE NO. 1 SEGMENT FOR GLA AND REVENUES GENERATED IN FRANCE 4% 4% 5% Themed / factory centers 21% 25% 46% Small shopping centers < 20,000 sq.m France Breakdown of 34% shopping centers 38% Large shopping centers 20,000 to 40,000 sq.m (in 2014) Regional shopping c
Slide 59: Mid-size food stores performing best while non-food sales declining
MID-SIZE FOOD STORES PERFORMING BEST WHILE NON-FOOD SALES ARE DECLINING Large food stores, sales weight per category (2) Food Non-food 30% 27% 26% 24% 22% 21% 70% 73% 74% 76% 79% 79% 2009 2010 2011 2012 2013 2014 Breakdown of large food stores by size range: change 2009-2014, France (1) 4,000 -7,000
Slide 60: Size does not mean outperformance
SIZE DOES NOT MEAN OUTPERFORMANCE French panel MERCIALYS (including MERCIALYS) Large food Shopping Shopping Large food Average No. of large store centers No. shopping centers store / shopping shopping food stores center size T/O per sqm T/O per sqm change change centers T/O per sqm change No clearly
Slide 61: Mercialys: real estate innovation part of our DNA
MERCIALYS: REAL ESTATE INNOVATION PART OF OUR DNA MAKE-UP 61
Slide 62: Strength and synergies of a unique transversal brand model
STRENGTH AND SYNERGIES OF A UNIQUE TRANSVERSAL BRAND MODEL 62
Slide 63: Digital strategy tailored to our model
DIGITAL STRATEGY TAILORED TO OUR MODEL: REINFORCE LOYALTY THROUGH OUR LOCAL FOOTPRINT Customers expectations CMS Market differentiator Consumers expect a geo-localized personalized contextualized cross- 30% Local customized contextual channel ecosystem. completed interaction CRM 90% Consumers no lon
Slide 64: Innovative real estate value creation drivers
INNOVATIVE REAL ESTATE VALUE CREATION DRIVERS Hyper transformation Extensions Pop-up retail Services.villages Clermont-Ferrand Mandelieu Brest 64 Specialization of supply Development of retail services
Slide 65: Projects pipeline across a rationalized portfolio: 2016
PROJECTS PIPELINE ACROSS A RATIONALIZED PORTFOLIO More than one third of the portfolio concerned by one or more transformation projects in 2016 and 2017 Brest Chartres Rennes Lanester 25 openings Angers Besançon Poitiers in 2016 Annecy Angoulême Brive Rodez Agen Nîmes Mandelieu Hypermarket transform
Slide 66: Projects pipeline across a rationalized portfolio: 2017
PROJECTS PIPELINE ACROSS A RATIONALIZED PORTFOLIO Morlaix Brest Chartres Quimper Rennes 22 openings Tours Poitiers in 2017 Annecy Monthieu Pessac Brive Rodez Millau Hypermarket transformation Toulouse Arles Fréjus Cafeteria redevelopment Narbonne Gassin Other projects *Not shown on map: Ajaccio, Bas
Slide 67: Attractive portfolio for flagship retailers
ATTRACTIVE PORTFOLIO FOR FLAGSHIP RETAILERS 67
Slide 68: Attractive portfolio for convenience retailers
ATTRACTIVE PORTFOLIO FOR CONVENIENCE RETAILERS 68
Slide 69: Attractive portfolio for major real estate operators
ATTRACTIVE PORTFOLIO FOR MAJOR REAL ESTATE OPERATORS KEY FIGURES Brest Paris 4 existing partnerships Angers Dijon Niort 17 assets Angoulême Clermont-Ferrand Diversified portfolios: Le Puy Pessac Valence hypermarkets, shopping centers, Montauban Nîmes Aix en malls, retail park Provence Narbonne
Slide 70: Mercialys: innovative for convenience retail
MERCIALYS: INNOVATIVE FOR CONVENIENCE RETAIL 70
Slide 71: Mercialys is the only listed company on the convenience market segment
MERCIALYS IS THE ONLY LISTED COMPANY ON THE CONVENIENCE MARKET SEGMENT Depth of offering Center size +++ Major multifunction centers Convenience segment Themed centers Regional centers Outlets City center stores of offering Diversification Local malls linked to large food Shopping experience stores
Slide 72: Disclaimer
DISCLAIMER This communication contains forward-looking information and statements about Mercialys. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objec
Slide 73: New paradigm for proximity
New paradigm for proximity - Between myth and reality - What impact for the retail property market? Pascal Madry – Head of Institut pour la Ville et le Commerce June 2016
Slide 74: Retail property faced with the crisis
Retail property faced with the crisis
Slide 75: Strategies falling back to big is beautiful
Strategies falling back to “big is beautiful” Number of visits in 2014 Unibail-Rodamco strategy
Slide 76: Strategies that are seeing their limitations today
Strategies that are seeing their limitations today
Slide 77: New operations are struggling to find markets
New operations are struggling to find markets Shopping center commercial vacancy (%) based on year of opening 14 12 10 8 6 4 2 0 Before1970 1970-1980 1980-1990 1990-2000 2000-2010 Après Avant After2010 1970 2010
Slide 78: Performance guaranteed above all by the age of centers
Performance guaranteed above all by the age of centers Shopping center commercial performance based on year of opening
Slide 79: New shift to discount, as an alternative to premium
New shift to discount, as an alternative to premium
Slide 80: Growth in real estate base driven by mid and large-size formats
Growth in real estate base driven by mid and large-size formats Change in total retail space for each sector (points of sale>300 sq.m - source: Panorama) 9000000 8000000 7000000 DIY 6000000 Gardening 5000000 Textiles 4000000 Household appliances Toys 3000000 Culture-leisure 2000000 Hygiene beauty 10
Slide 81: New paradigm for proximity
New paradigm for proximity L'Institut pour la ville et le commerce CY
Slide 82: First historical definition
First historical definition Home neighborhood Related features: - Small shops (versus large shops) - Independent retailers (versus organized trade) - Neighborhood shops (versus city center or suburban shops)
Slide 83: Decline in historical proximity
Decline in “historical” proximity Change in local retail formats Number of shops 1966 1998 Disappearance rate General food grocery shops 87,600 13,800 85% Dairy and cheese shops 4,600 1,100 76% Butchers 50,500 14,700 70% Fishmongers 4,700 2,100 55% Delicatessens 12,700 6,400 49% Bakeries 40,200 22,4
Slide 84: Retail's concentration and polarization
Retail’s concentration and polarization Example of food market Food market polarization Format Number Surface area in Jobs Mn sq.m Hypermarkets 2,091 11.1 330,000 Supermarkets 5,746 7.5 165,000 Hard-discount 4,335 3.3 40,000 Drive 2,695 - - Sources: Panorama 2016
Slide 85: L'Institut pour la ville et le commerce: Lille map
L'Institut pour la ville et le commerce LILLE Panorama des ensembles commerciaux = | Chiffres d'affaires des pdles commerciaux : eae Les ronds sont proportionnels au C.A. total du pale a Alimentaire Galerie marchande < Grande/moyenne surface spa ‘ 1 AUCHAN RONCQ)''' Projet commercial autorisé a Jerr
Slide 86: Agglomeration lilloise
SZ) AGGLOMERATION LILLOISE | spe eo aes reskesa de périphérie : He par commu: L'Institut pour la ville et le commerce
Slide 87: From concentration to saturation
From concentration to saturation Change in yields (revenues / sq.m) for retail shops by sector (constant €) Hypermarkets Other personal equipment Culture and sport Home interiors Sources: INSEE, point of sale survey
Slide 88: Resilient formats
Resilient formats Average basket No. of visits / year
Slide 89: New definition of proximity
New definition of proximity Retail for everyday needs and living hubs
Slide 90: Resurgence of proximity
Resurgence of proximity Type of district* Local shops All shops Number in Average annual Number in Average annual 2008 change for 2008 change for 2002-2008 (%) 2002-2008 (%) Large districts 375,100 0.3 463,900 0.8 Other districts in urban units 162,900 1.5 236,500 2.8 Other districts outside of urba
Slide 91: Bio c Bon
1 ee Bio c Bon le plus long, c'est de choisir mM on (@) p’ @ di ly =. WT L'Institut pour la ville et le commerce
Slide 92: De la ville
de la ville Favoriser le développement commercial et le rayonnement de la commune 4 @eeneeo gs A AR ‘e L'Institut pour fa ville et le commerce ——— |
Slide 93: Outlook
Outlook L'Institut pour la ville et le commerce CY
Slide 94: Urban fragmentation = retail fragmentation?
Urban fragmentation = retail fragmentation?
Slide 95: Growing urban population, but further from city centers
Growing urban population, but further from city centers Breakdown of urban population Change in urban population (2012) (1999-2012) City center City center Urban unit Urban unit Urban area Urban area
Slide 96: Urban sprawl expected to be maintained by migration trends
Urban sprawl expected to be maintained by migration trends Change in number of households between 2005 and 2030 block Change as % 30 or over 25 to 30 15 to 25 under 15
Slide 97: Tomorrow, an older, less mobile population
Tomorrow, an older, less mobile population Over 60s, estimate (%)
Slide 98: New residential economy in the regions
New residential economy in the regions 8% 22% 13% Base productive Productive base Base publique Public base Base sociale Social base 10% Base retraitesbase Retirement 24% Tourism Base base tourisme Migrant Base base migrants 23%
Slide 99: Positioning of large food stores within the residential economy
Positioning of large food stores within the residential economy Breakdown of retailer store base by type of area (% of points of sale) Total store Of which, Of which, Of which, Of which, base productive % ageing % migrant % tourism % Auchan 103 45 32 20 3 Carrefour 237 30 54 10 6 Géant 108 32 44 10
Slide 100: Conclusion
Conclusion Larger number of smaller size consumer hubs in the future Challenge with offer accessibility
Slide 101: Disclaimer
DISCLAIMER This communication contains forward-looking information and statements about Mercialys. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objec