Securing the loyality and support of the local community
“City and city marketing, regional reputation of attractive cities.”
Lovro Mandac, Chairman of the Board of Directors, GALERIA Kaufhof GmbH
International City Marketing Congress (CMDC)
04.28/29.2010 Moscow
GALERIA Kaufhof
Welcome to Moscow
GALERIA Kaufhof GmbH
Kaufhof profile today
Kaufhof in figures
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Markets: Germany, Belgium

Located in city centers / shopping malls

Locations:
126 branches* in more than
80 German towns and cities
15 branches in 12 Belgian towns and cities
*incl. Sportarena

Turnover 2009 (net sales): 3.5 billion €

Sales area: 1.5 million m²

Visitors / customers: approx. 2 million per day

Employees: 22,200
(2009; full time equivalent)
01
The situation in the city centers
City center retailing yesterday and today
CITY CENTER RETAILING YESTERDAY AND TODAY
The move to the city center
The early years:
The first department stores
(The start of the 20th century)
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Department stores used aggressive marketing tactics to
attract customers from the countryside into the city
center for the first time
The new “cathedrals to consumption” were utterly
unique
CITY CENTER RETAILING YESTERDAY AND TODAY
The return to the city center
From the mid 1980s:
“The urban revival”

Towns and cities become centers for trade
and hubs for communication and innovation

People move back from the suburbs to live
in the city center

Large retailers return and establish food
outlets and shopping centers
Source: Bernd Heimbüchel (2007): Erlebnis Stadt.
CITY CENTER RETAILING YESTERDAY AND TODAY
The move to the city center
Today:
The department store plays an important
role in city centers

The department store acts as an initiator of various
activities aimed at vitalising the city center

Its ability to attract shoppers into the city center is
significant
CITY CENTER RETAILING YESTERDAY AND TODAY
The move to the city center
Current city center trend
Explosive rise of the shopping mall
Today’s favored location: the town center

Total area of approx. 13.5 million m²

01.01.2010 total of 428 shopping malls

2010 at least 9 malls planned
Source: www.rheinparkcenter-neuss.de, Rheinische Post 10/23/2010
CITY CENTER RETAILING YESTERDAY AND TODAY
Beyond the town center: Artificial shopping environments
Current trend “against” the town center
“Artificial shopping environments”
FOCs and purpose-built “retail villages”?
The concept of a simulated urban environment:

Professional, targeted marketing strategy successfully
promotes shopping tourism

“Leisure park atmosphere” based on cleanliness and
straightforward layout

Well-organised services
(convenient parking, childcare, ATMs, maps)

Competitive advantage:
Luxury brands at discount prices
Source: WÜS 13 August 2008; Photos: www.wertheimvillage,com, www.panoramio.com
CITY CENTER RETAILING YESTERDAY AND TODAY
Problem areas: City center retailers come under pressure from competitors
Without increase in purchasing power, retail forms grow at others’ expense
02
We need to work together
Cities and retailers – make contact and act jointly
Successful strategies and partnerships between cities and retailers
WE NEED TO WORK TOGETHER
Leading by example
Development of the new Cologne city center network (since 2008)
Joint conception, planning and implementation of all measures aimed at
strengthening the position of the city center
WE NEED TO WORK TOGETHER
Leading by example
Nationwide support program
“Operation Midtown” –
Largest city competition:
Idea behind the action:


Annual competition intended to enhance the
appeal of city centers (since 1999)
Public-Private-Partnership – city projects and
city marketing projects
Participation in 2009:

Applications from 122 cities / communities in
five federal states
Organizing Partners 2010:
Relevant federal state ministeries
GALERIA Kaufhof GmbH, Multi Development Germany GmbH
Other cooperation partners (example North Rhine-Westphalia):
Städtetag NRW, EHV NRW,
Mc Donald‘s, Handelsjournal, STRÖER Deutsche Städte Medien GmbH,
Source: Imorde, Projekt- und Kulturberatung GmbH
WE NEED TO WORK TOGETHER
Leading by example
Organigram
“Operation
Midtown”
WE NEED TO WORK TOGETHER
Leading by example
Inspiring and exchanging ideas through nationwide
and international communication and information
urbanicom e.V. – Platform for city and trade
urbanicom unites the strengths of everyone involved:

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Since 1966 international association of leading
European city planners, architects, property owners
and business people aimed at forward looking urban
development
Resolute commitment at grass roots level right down
to the smallest retail unit and citizen interest group
WE NEED TO WORK TOGETHER
Leading by example
Inspiring and exchanging ideas through nationwide
and international communication and information
urbanicom e.V. – speaking for the city
The work of urbanicom:
 urbanicom discusses questions that affect both
the city and retailers
 urbanicom believes in strengthening urban centers
 urbanicom works to preserve multifunctionality in
towns and cities – home, work, life
 urbanicom offers a framework for annual seminars
and events e.g. “urbanicom vor Ort”
Source: Urbanicom, Eberhard Gebauer
03
Case studies and voices from the cities
Measures aimed at cementing customer loyalty in the city center
How to create and exploit synergies
CASE STUDIES AND VOICES FROM THE CITIES
Center of attraction - the city center
WE NEED TO WORK TOGETHER
Leading by example
Networking to increase efficiency and effectiveness
Independent network unites private
commercial interests in Cologne with
City-Marketing Köln
City-Marketing Köln brings together previously
go-it-alone die-hards in a single, effective team:

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Consistent management and coordination of activities
by City-Marketing Köln
Joint development of ideas and concepts
Implementation in three operative areas:
City Commerce, City Image, City Quality
Development of a balanced member structure as a
private commercial initiative
CASE STUDIES AND VOICES FROM THE CITIES
Leading by example
Enduring events that draw visitors from far beyond
the local area
The “biggest fashion show in the world”:
Krefeld
“Our fashion show perfectly showcases the diversity
and effectiveness of retailers in Krefeld – our
visitors have been coming for years from all over
Germany.”
Jörg Pastoors, Managing Director GALERIA Kaufhof Krefeld

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Mega-City-Event for the past 18 years
with Sunday opening
Draws visitors from all over Germany,
2009 approx. 500,000 visitors
Huge media coverage, even in national press
CASE STUDIES AND VOICES FROM THE CITIES
Leading by example
The “biggest fashion show in the world”:
Krefeld
CASE STUDIES AND VOICES FROM THE CITIES
Leading by example
Enduring events which have influenced urban
development
Window dressing competition on a
worldwide scale
“Hagen has become THE capital of window dressing.
The event has brought the city and retailers even
closer together.”
Christina Göttert, Business Development Hagen
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Successful events aimed at countering the increasing
homogenisation of towns and cities as well as
the retail sector
Exhibition stand at the world’s biggest industry trade
fair Euroshop (2008)
CASE STUDIES AND VOICES FROM THE CITIES
Leading by example
Seasonal, attractive events
The city is a beach –
footfall throughout the day until midnight
“Our visitors feel like they are on holiday, the optimal
mix of consumption and relaxation.”
Frank Tüting, Sales Director GALERIA Kaufhof GmbH

Extraordinary use of “ordinary” buildings outside peak
times or when vacant
(e.g. car park floors or event venues)

Top media presence over 2 months
(ARD, ZDF, local media)
Picture: City beach on the rooftops of Düsseldorf
CASE STUDIES AND VOICES FROM THE CITIES
Leading by example
Increasing the number of foreign visitors
Expanding shopping tourism:
Targeted offers and joint ventures
“Creative joint ventures and innovative marketing
concepts are the real secret to boosting sales.”
Martina Baumgärtner,
Business development association for the district of Viersen
Successful and innovative events:
 New tourism projects such as “Cool Breaks”
and “Fly and buy” are large-scale marketing
events designed to attract European
short-break tourists.
04
The challenges today and tomorrow
We need a clear commitment to the city center
Towns and cities, government, property owners and commerce… all must play their part
WE NEED TO WORK TOGETHER
Leading by example
Investment in problem districts
BIDS and ISGs – how to add value to
a district
Without the commitment of the private sector, the
problems facing many cities cannot be solved:

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Joint financing through private and public investments
Modernization and renovation of entire city districts
Ensuring cleanliness and safety
Financing for seasonal decorations, Christmas lights etc.
Quelle: www.bid-neuerwall.de, www.graf-adolf-strasse.de, www.ihk-hessen.de, www.hamburg.de/bid-projekte/
THE CHALLENGES TODAY AND TOMORROW
Towns and cities need visions and dreams ...
THE CHALLENGES TODAY AND TOMORROW
… and people who will join forces to make them reality
The focus is on a common goal:
Raising the appeal of the city center!
THE CHALLENGES TODAY AND TOMORROW
The path to success …
... a joint future based on communication:

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Active mutual support
Closer relationship between associations, clubs and
institutions
City managers act as a point of contact for all parties
involved
Beyond this:
We need to harness the creativity and
intelligence of each and every citizen!
WE NEED TO WORK TOGETHER
More than just the sum of its parts …
TRADE, GASTRONOMY AND CITY – CHALLENGES FOR ALL INVOLVED
Pursuing a common goal together
Our commitment to the city center
It is time to act:
If everyone does the best they can,
then the winner will be the city center!