Memories from MAPIC 2009…
Welcome to… 2011!

      Let me have a necessary break during my forecast for what is coming up during 2010. Since Wednesday I am at Cannes, where I participate at MAPIC. For the ones who are not familiar, MAPIC is the no.1 Real Estate exhibition for retail. 1.400 retailers, tens of Malls and Retail Parks, developers and all sorts of service providers create a “must attend” event, if you want to know what is coming up during the next year. As my company, MORE Real Estate Services, is focused (among others)on Retail and Commercial segments, it was obvious that I should be here too. There was not so much to say though, this is why I decided to write to you only today about it, summing up the experience I gathered.

        - 30% less people by papers, 50% less through my eyes. The official figures presented the event having 30% less exhibitors and participants. For exhibitions of this level one, the deduction is huge! Having been here in the past too, I dare to have a slightly different opinion. I saw almost half of the people I have seen last year. The famous Croisette Boulevard was empty, all the “chic” restaurants and café were not full. Sad…

         - Everyone is talking about 2011. 2010 is considered a “lost year”. Major companies have decided to freeze any opening of new outlet during the next 13 months. They expect that next year we will reach the bottom of the crisis, with the available consumers’ income falling to its lowest level throughout the decade 2001 - 2010.

        - This is bad news for many ambitious projects, which wanted to open during 2010. The decision makers of almost all the retailers were clear: “Forget what you hear: Only very rare opportunities can initiate us to invest in a location during 2010. But we are more than open to agree for 2011″. It is not a matter of prices, but it is all about budget. Next year’s budget must not “carry” a lot of “investment weights”.

        - More or less, the same situation will occur in Romania too, despite the hopes of everyone. Very few retail projects will find anchor tenants and even when they will have agreements in national level, the necessary approval by the headquarters will delay a lot…

       - Romania is not considered “overheated” market anymore. We have moved from this approach to the latest version of it: “Your market is quite interesting and when you will give us good deals in acceptable prices, you may have a firm deal. Be serious and you will be rewarded, but any arrogance coming from the past will not be accepted”. In the same time many retailers are cautious against the large number of “B Class” retail projects around the country and they search only for really good ones, so as to be part of.

      - The presence of Romanian companies at MAPIC was impressive. Plenty of very important people were there, representing the biggest part of top developers, brokers and consultants. No, I didn’t see many local retailers this year. The expansion plans are canceled or postponed for 2011, while several shops must close or relocate, after the obvious renegotiation of rents.

       - MAPIC 2010 is expected to be the “hottest” one of the last years, even “hotter” than the one of 2007. With Europe being expected to exit recession period and 2011 to be considered the year which will trigger the new round of retail expansion, the fair will certainly be a priority for all top players.

Romania, better than… Cannes!

       - Last year a colleague of mine told me: “Check, Mr Ilias, check. The old people who play an organ and sing on Croisette are Romanians in origin”. “Impossible… where to be found so many Romanians here?” Thank God I did not bet with her, because I would have lost (usually I know when to bet or not, plus I never gamble…). This time I went by myself and each and every one of them. “Ce faceti, domnule?” “Ce sa fac, bine, bine… Criza economica”… this was their usual reply. All of them were Romanians, playing a different organ and singing various melodies, coming from Brasov too! Proud Transylvanians I would say. Proud and… “funny”. You should see one of them… how bad he talked to me when I told him hello and I left for him only 1 euro… probably he got used to 20 - 50 euro notes that rich jet setters give him… Fitze…

      - Aaaaah, I missed this Balkan feeling… being stolen by a taxi driver, while he is even aggressive with me, if I dare to ask why he tries to overcharge me so much… So, the French taxi drivers found the solution against the crisis. 30% less visitors? 30% higher prices! Without too many explanations. Finally! Between you and me, lately I found more serious taxi drivers in Bucharest, Cluj or Timisoara, than in London, Cannes, Athens etc. In this domain (and not only), Romania has surpassed Cannes and many other European cities.

        - “Ce mai faci, Ilia?” The voice in the airport was familiar, the face too. A Romanian friend of mine, working in a major retailer, was facing the same problems like me. We were supposed to return via Geneva, but the airlines we chose proved to be wrong. They treated us without any respect at all, talking in French non stop, even if they knew English. Even their announcements were only in French and you should ask and insist so as to translate to you what they said to the rest of passengers waiting at the gate. They were the opposite of what we call “polite”, while their flight was delayed for 2 hours and 15 minutes, with the excuse changing every 2 minutes. They were also changing opinions, words and decisions every 5 minutes, being shameless to tell us that each time we understood wrong their previous lie. No Romanian company has treated me like this in Romania. Neither me, nor anyone else I know, foreigner or Romanian.