By Reinhard Winiwarter
The doors to MAPIC 2024 closed a good two weeks ago. Some time to reflect has passed. MAPIC is something like the industry’s pulse meter. It shows whether 2024 has delivered what it promised and our mood as we head into 2025.
We left this year’s MAPIC with mixed feelings. The good, constructive, and promising discussions are positive. After many exhausting years, many participants felt a certain sense of relief. MAPIC 2024 was less well attended than usual, and the number of exhibitors and the size of the stands were smaller. This had the positive effect of allowing all visitors to spend more time, which meant that some of the discussions were much more intensive than in previous years. If you go to MAPIC well-prepared, you can take a lot away with you.
However, and this is the downside, we are concerned about the falling number of participants. This is because it also shows that MAPIC tends to lose relevance in companies. We discussed this topic intensively with the ACROSS Advisory Board at our traditional MAPIC meeting. We conclude that the trade fair must reflect on itself and identify its proper focus. This includes defining the topics more clearly and, in particular, rethinking the conference program. The trade fair is essential to all of us, and we are in the process of presenting our concerns to the MAPIC organizers. ACROSS will report on the discussions.
WHERE WE ARE AT THE END OF 2024
But where will we be at the end of 2024? „My biggest concern this year has been that we are all faced with numerous challenges, requests, and needs to keep – or ideally speed up – the pace of business change, adaptions, or even further innovations. However, many stakeholders are stuck, hesitating, and struggling with internals, organizational matters, and reporting. Many topics have been slowing down instead of developing,” according to Klaus Striebich.
2024 was definitely an “honest” year. Because it showed whether companies have used the past few years to reposition themselves. I also noticed that many industry players are too preoccupied with themselves instead of driving issues forward. Or even worse – and we have seen this with many retailers – companies have had to give up altogether.
For me, 2024 has also shown that the complexity of retail real estate is increasing enormously. Intelligently designed mixed-use projects are the measure of all things. Above all, these projects need innovative strength, courage, and intelligent, forward-looking decision-makers. Successful retail real estate projects are cases for professionals. Being a follower in the sense of doing what has always been successful is no longer an option. I see great opportunities for many properties in this ongoing transformation process. Perhaps even more significant opportunities than we can currently see or imagine.
Another aspect that became recognizable in 2024: Entertainment is increasingly becoming a “footfall anchor.” A fact that some clever developers are already taking advantage of. In my opinion, this trend will intensify and turn “physical places” more and more into what we have wanted them to be for years: vibrant places where – in addition to meeting needs – people enjoy spending time with other people. Those who can create such places have a great future ahead of them.
The wheat is being separated from the chaff! Those who do not focus on the customer and their (digital) reality of life but continue to revolve around themselves have no future. Or as Klaus Striebich puts it: „Where is the news from the need of digitalization, customer-centricity, and competitiveness? In other industries „re-invention“ is key, the real estate industry sometimes looks like the rabbit in front of a snake…”
But – and here I remain true to myself – the focus should be on the positive examples. We were surprised at how well some industry players and some regions have developed. „Former emerging countries and areas have made significant progress and developed well, such as the CEE region and the Asian shopping-center markets,” says Klaus Striebich. “The modernity, technology usage in the buildings, as well as in marketing and customer support, are remarkable.”
THE BIG CHALLENGES IN 2025
So, what mood can we look forward to in the new year? We are seeing promising developments in the market. We see positive examples. But we also see a lot of regulation, which we must continue to deal with. “The biggest challenge will be coping with all requests coming from ESG and the customer’s side,” says Klaus Stribich. “We have to manage these topics from different angles and need to change from a “must” into an opportunity and try to find a way to create some business opportunities out of it.” At the same time, ESG must not be the biggest project in the company; rather, ESG must be part of everyday life. The focus must be on the further development of projects – and these must be ESG-compliant.
Looking ahead to 2025, 2024 has taught us more than ever never to stand still. As Klaus Striebich puts it, “Never stop adapting and concentrating on the top priorities, also with a clear goal and the customer needs in focus.” Therefore, the core task for 2025 is to ” Use the already existing technologies and possibilities to speed up, to encourage the teams to be’ best in class ‘or even in the lead, as competition never sleeps.”
The success factor in retail real estate is and remains adaptability. Klaus Striebich describes it as follows: „Have always your clients, customers, guests and „fans“ in mind and concentrate your decisions and measurements towards their direction – by the way: your team and employees must also be treated as a client, guest or fan. This would make it much easier to achieve your challenging goals.”
Reinhard Winiwarter
Reinhard Winiwarter is founder and publisher of ACROSS Magazine
Klaus Striebich
Klaus Striebich is Managing Director of RaRE Advise and Head of the ACROSS Advisory Board
