ACROSS: WHEN DISCUSSING TEG, WE TALK ABOUT THE MOST EXTENSIVE SHOPPING CENTER IN TIRANA, ALBANIA. HOW IS THE CENTER POSITIONED IN THE MARKET?
Joana Korimi: We can rightly say that TEG is the most important shopping center in Albania and the region. A solid brand identity, our offer, and our strategic approach to retail and the customer experience characterize the position. TEG was conceived from the beginning as a flagship property and is constantly being developed as such. Customers should not just shop here; the center should be part of their daily life here: they dine, entertain themselves, and experience – in short, TEG stands for a lifestyle. We are increasingly positioning ourselves as a socio-cultural center that offers events in addition to retail. Together with our tenants and customers, we form a community. This is our unique selling point: The unique blend of retailers, community-oriented experiences, and a clear vision in communications and advertising allows TEG to stand out nationwide.
ACROSS: THE COMMUNICATION STRATEGY IS VERY SOPHISTICATED; THE SLOGAN IS SIMPLY “BE HAPPY.”
Korimi: The slogan sums it up: We are a central point in people’s lives where they can be happy. Every visitor should have a positive experience here. But the slogan also incentivizes us employees: it drives us on. We are happy when we work in a place that makes others happy.
ACROSS: WHAT EXACTLY DOES THE CATCHMENT AREA LOOK LIKE?
ELDA HYSENBELLI: Around 1,000,000 people live in and around Tirana. One million people live 30 to 40 minutes away by car. This means that the whole of Albania is part of our catchment area, as well as some regions in neighboring countries. Furthermore, with over two hours, the average length of stay in TEG is very high.
ACROSS: HOW WOULD YOU DESCRIBE THE CURRENT TENANT MIX? WHO ARE THE CURRENT ANCHOR TENANTS?
HYSENBELLI: Currently, the tenant mix is a mixture of international fashion brands and anchor tenants, electronics, hypermarket, local shops and entertainment venues. The Inditex Group, with all its brands and H&M plays a vital role in proving that we are an attractive location, especially for international brands. Everyday goods play a crucial role in shopping centers; therefore, Interspar is also very important. Cineplexx, is another significant anchor tenant, as is the electronics store Neptun. With this tenant mix, we appeal to a vast target group of customers, from fashion-conscious people to families who want to entertain themselves or explore our gastronomy in the shopping center.
ACROSS: HOW IMPORTANT ARE LOCAL BRANDS IN YOUR TENANT MIX?
HYSENBELLI: We consciously want to attract international retailers. However, the local target group is essential, so local products are needed. It’s all about the mix. This is especially true for the entertainment and gastronomy sectors. Local partners are crucial in creating a balanced retail ecosystem in our market.
ACROSS: HOW HAS THE TENANT MIX DEVELOPED SINCE IT OPENED IN 2011?
HYSENBELLI: When TEG opened, the focus was much more on retail. Today, we offer a wide range of retail stores with a stronger emphasis on leisure and entertainment. Leisure and entertainment are very important to our customers. We don’t just want to focus on spending money and shopping. We also want them to feel comfortable and happy in our shopping center. The efforts in terms of the tenant mix have remained similar, but the whole topic of customer service has changed significantly. We want to accompany our customers on their journey – to and in the center. Surveys on the customer experience show that we are doing a good job here. We have seen an increase in customer frequency and length of stay of 9 to 10%. The technological possibilities for querying customer wishes have developed enormously. This helps us a lot to create even better offers.
About ACREM: ACREM, part of BALFIN Group is the Albanian leader in managing shopping malls, logistic parks, luxury residences and other real estate assets. ACREM was established in 2007 to manage the first Commercial Center in Albania, QTU. Since then, ACREM has created standards of high-quality management practices for real estate. Some of the most important real estate in Albania under the care of ACREM’s management are the shopping centers TEG, QTU, TLP, Rolling Hills Luxury Residences, and Galeria by TEG. ACREM aims to expand its client portfolio and develop into a company with diversified services. The goal is to provide an excellent consumer experience based on several years of experience, a strong network of professionals, and a spirit of entrepreneurship.
ACROSS: THIS APPROACH IS AT THE CORE OF ACREM. IN 2007, ACREM WAS FOUNDED TO MANAGE BALFIN GROUP`S FIRST CENTER QTU IN ALBANIA. THIS WAS THE FIRST COMPANY PURELY FOCUSING ON SHOPPING CENTER MANAGEMENT AND A REVOLUTION IN THE ALBANIAN RETAIL MARKET. TODAY, YOU ARE STILL THE LEADING COMPANY IN THE COUNTRY AND MANAGE THE BALFIN RETAIL ASSETS. YOU HAVE PROFESSIONALIZED SHOPPING CENTER MANAGEMENT IN THE BALKANS. WEREN’T YOU SOMETIMES AFRAID THAT YOU WERE EDUCATING OTHER COMPANIES ON HOW TO BRING SHOPPING CENTER MANAGEMENT TO A CERTAIN LEVEL?
HYSENBELLI: We are educating the market, but we can only see this positively. We want to see more competition in the market because that is the only way we and, above all, the country can develop further. We still dominate the market and are ready to add and establish other shopping centers to our portfolio. Twenty years ago, we had no competition. Thanks to our example, a lot has developed since then. However, retail and retail real estate still have potential to further expand and develop in Albania.
ACROSS: THANKS TO YOUR EXPERTISE, YOU ARE CONSIDERED A HUB FOR INTERNATIONAL BRANDS. WHAT ARE YOU OFFERING INTERNATIONAL RETAILERS THAT YOUR COMPETITORS CANNOT DELIVER?
HYSENBELLI: TEG is positioned as a center for high-profile global retailers. The strategic location is crucial for international tenants. We are four kilometers east of Tirana’s center. This is where the upper middle-class lives and, thus, the country’s target group with the highest purchasing power. The brands see us as a vital partner. The most significant proof of this was the partnership with Inditex, the largest fashion retailer in the world. The second to join was H&M. Many others who want to appeal to the target group with a higher income are on the waiting list to enter the market.
ACROSS: AS YOU EMPHASIZED, THE INDITEX GROUP HAS BEEN PART OF THE TEG SINCE ITS BEGINNING. BUT H&M ONLY JOINED LAST YEAR. WHAT ARE THE POSSIBLE REASONS FOR THIS?
HYSENBELLI: Inditex recognized very early on what the market was lacking and saw the region’s development. The decision was as brave as it was far-sighted. Inditex has been working on the market for a long time. They still see massive potential in Albania and TEG. They like the strategic position and the tenant mix. When Inditex got involved, however, TEG was different. We had significantly fewer food anchors and little gastronomy. We developed further and convinced partners like H&M, Armani Exchange, Emporio Armani, Boss, Hugo and other international brands. Many international companies are cautious about new markets. It may simply be the strategy to wait and see and enter a mature market. On the other hand – and this is crucial – we want to develop international brands not only for the TEG and Albania but also for Macedonia, Kosovo, and the rest of the region. This requires more time and a longer strategic orientation.
ACROSS: MANY INTERNATIONAL RETAILERS AND EXPANSION MANAGERS EXAMINE ALBANIA’S OFFICIAL STATISTICS ON PURCHASING POWER, MONTHLY INCOME, GDP, ETC. THESE NUMBERS SEEM LOW COMPARED TO EUROPE’S. HOWEVER, THE ALBANIAN POPULATION IS VERY FASHION-CONSCIOUS. IN SHORT, WHAT IS THE PROFILE OF TEG CUSTOMERS? WHO SHOPS THERE?
JOANA KORIMI: First, the general statistics show a need to catch up. But these are general statistics. As Julian Mane, Vice President Retail of the BALFIN Group, pointed out in his ACROSS interview, you need to feel and see a market to understand its potential. We generate a turnover of 180 million with TEG. That alone is impressive for our partners; no statistics would suggest that.
Read our recent interview with Julian Mane, Vice President Retail of the BALFIN Group, under: “Despite All Of The Challenges: The Western Balkan Region Is Showing Good Resistance”
Our core customer base is between 20 and 45 years old. This generation is the first to “live” and demand modern retail. Our customers are people with medium to high incomes. They are professionals, usually young professionals, and very fashion-conscious. They clearly know beauty, aesthetics, and quality and follow international trends. They are often families who specifically ask for offers for families. There are also international tourists and expats. Our customers are looking for entertainment and experiences in addition to retail and shopping. All customers have in common is that the time spent in the shopping center represents their spare time: they want to experience something, enjoy it, meet up, and do something good for themselves. Many customers come exclusively for gastronomy, entertainment, and events.
ACROSS: MANY ALBANIANS LIVE ABROAD BUT REGULARLY RETURN TO THEIR HOMELAND AND SPEND MUCH MONEY THERE. DO YOU NOTICE THIS SO-CALLED DIASPORA EFFECT IN THE TEG?
HYSENBELLI: Of course, the diaspora is significant. Its effect is particularly noticeable in summer and around Christmas and Easter. It is reflected in visitor numbers, purchasing behavior, and sales. In August, for example, sales figures are similar to those in December due to Albanians returning home in the summer to vacation and visit family. There is a saying that at TEG, we celebrate Christmas twice. And, of course, we also specifically target the diaspora Albanians.
ACROSS: HOW HIGH IS THE FOOTFALL IN THE TEG? CAN YOU PERHAPS MAKE INTERNATIONAL COMPARISONS HERE?
HYSENBELLI: Regarding footfall, on weekdays, we welcome up to 30,000 consumers, and on weekends, 45,000 visitors daily. We are around 200 people per square meter, which means ten million people on 56,000 GLA per year. Our density per square meter is higher compared to Westfield in London. Only a few market experts would expect this, but it is one of the reasons why we can be very self-confident. Also, regarding efficiency, we are very proud: the center arena in Zagreb also has ten million visitors but 65.000 sqm GLA. We welcome ten million visitors on 56,000 sq m, which makes TEG a very efficient mall.
ACROSS: FROM THE BEGINNING, TEG HAS FOCUSED ON ENTERTAINMENT, GASTRONOMY, AND CLASSIC RETAIL. HOW HAVE THESE SEGMENTS DEVELOPED OVER THE YEARS?
HYSENBELLI: The development went hand in hand with the retail development. When Inditex moved in, there was also a need to expand the food court because people came from farther away. We started with four units in the food court and now have 12 units, plus two restaurants and six cafés. This also reflects the mentality of the customers. The Albanian population and our other customers like to spend longer periods with us, so the offer must also be geared towards this. So the entertainment offer has also developed quickly. Today, we have the largest entertainment area, which is 3,000 sq m, and it appeals to all age groups. Also, when we opened TEG, only one office building was around the center. Today, many residential buildings, schools, kindergartens and a new neighborhood surround us. Our offers are growing, which aligns with customer demand.
ACROSS: TEG IS ALSO CONSIDERED VERY INNOVATIVE IN ITS MARKETING ACTIVITIES. WHAT IS ITS BASIC MARKETING STRATEGY, AND WHAT ARE THE LATEST AND CURRENT MARKETING HIGHLIGHTS?
KORIMI: Our strategy is simple but sophisticated enough not to be copied. As we are positioned as the most significant and best-known shopping center, the marketing strategy highlights the shopping opportunities, lifestyle, and entertainment. TEG is more than a shopping center; it is a destination. We emphasize this holistic approach and continue to build our identity through our original communication platform. We present TEG as where people need to find the best and the uniqueness they are looking for – whether it’s in fashion, food, entertainment, etc.
ACROSS: WHAT IS THE COMMUNICATION BASED ON?
KORIMI: We base our communication on integrated advertising campaigns on television, radio, below the line and outdoors. All campaigns are also digitally integrated. Our social media channels also play an essential role in engaging with the public. We promote new openings, events and offer glimpses behind the scenes. For example, we provide fashion inspiration or lifestyle tips. We often work with influencers in the country, celebrities, or people from the fashion world. Events are also crucial for the customers’ involvement and connection.
ACROSS: WHAT DO THESE EVENTS LOOK LIKE?
KORIMI: This starts with regular activities, such as giant children’s figures that we set up in the center at weekends, continues with exhibitions that we use to promote the younger generations and the projects we support, and ends with live performances of any kind. The latter, in particular, are very popular, as customers can experience something here that is otherwise not possible. We also host TV shows at our premises. However, it is important to us that the focus is not just on entertainment but also on values. For example, we run initiatives related to sustainability programs for the younger generation. This is to strengthen our image and our responsibility. We know no limits when it comes to events and campaigns. We look closely at what the customer asks for and what might surprise and entertain them.
ACROSS: PLEASE GIVE AN EXAMPLE OF A CAMPAIGN THAT SURPRISED YOU.
KORIMI: Our wedding event was probably one of the most extraordinary events. This was very original, authentic, and 100% unique. We invited couples to apply and get married at TEG on Valentine’s Day, for several consecutive years. It sounds like a crazy idea, but it was very well received. We had over 150 applications per year, and finally, we celebrated the biggest wedding of the year with 100 couples getting married. This proves that we are more than a mall; we are a central part of our customers’ lives. With events like this, we are the talk of the town, and this is all marketing can achieve.
ACROSS: WHAT ARE THE NEXT STEPS WHEN LOOKING INTO THE NEAR FUTURE? ARE THERE SPECIFIC “WISHES” FOR CERTAIN TENANTS/BRANDS?
HYSENBELLI: We have a wish list and will implement much of it. The market development is good; it is time for new formats. Twenty years ago, the BALFIN Group brought the idea of shopping centers to Albania. In 2011, we opened TEG and expanded it 10 years later. Now, it is time for the next expansion. Our wish list for rental partners focuses mainly on a professional sports brand, a professional household brand, a furniture brand, and fashion brands from the medium to premium segment. On top of that, we will develop 8000 sq m of additional entertainment. Our brand wish list includes brands such as Oysho, Lacoste, H&M Home, Peek & Cloppenburg, Skechers, Kiko Milano, Kiabi, Intimissimi, Calvin Klein, etc. We are already in talks with some of them. The international players see enormous development in our market. They have visited us, they have gotten to know TEG, they know our expertise in managing shopping centers, especially in the Balkans, and know that they can grow with us in many regions.
