Post on 24-Apr-2023
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VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETAS
VERSLO VADYBOS FAKULTETAS
VADYBOS KATEDRA
EVALUATION OF VILNIUS CITY LARGEST SHOPPING CENTERS LEASING USING MULTIPLE CRITERIA METHOD
VI UOMOS DAUGIAKRITERINIS VERTINIMAS
Baigiamasis magistro darbas
Verslo vadybos 62403S121
Tarptautinio verslo specializacija
Vadybos ir verslo administravimo
Vilnius, 2011
2
VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETASVERSLO VADYBOS FAKULTETAS
VADYBOS KATEDRA
TVIRTINU
______________________
(Varda
______________________ (Data)
EVALUATION OF VILNIUS CITY LARGEST SHOPPING CENTERS LEASING USING MULTIPLE CRITERIA METHOD
NUOMOS DAUGIAKRITERINIS VERTINIMAS
Baigiamasis magistro darbas
Tarptautinio verslo specializacijaVadybos ir verslo ad
Vadovas __________
(Data)
Konsultantas_________________________________ ____________ __________
(Data)
Konsultantas_________________________________ ____________ _________
(Data)
Vilnius, 2011
3
VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETAS
Verslo vadybos(Fakultetas)
Verslo vadyba, TVmitu09
BAIGIAMOJO DARBO (PROJEKTO)
2011 m. d.(Data)
Patvirtinu, kad mano baigiamasis darbas (projektas) tema
patvirtintas 20 m. d. dekano potvarkiu Nr. ,
mokslini kai ir specialistai:
Mano darbo (projekto) vadovas
-usi).
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VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETASVERSLO VADYBOS FAKULTETAS
TVIRTINU
_______________________
)
_____________________(Data)
BAIGIAMOJO MAGISTRO DARBO
……......................Nr. ...............Vilnius
Studentui (ei) Silvijai Dobrovolskytei..........…............................................…........
Baigiamojo darbo tema:
............................................................................................................................................................patvirtinta 201…m. ……………….…… d. dekano potvarkiu Nr. ………….
kai
Baigiamojo darbo rengimo konsultantai: …….………………………………………………………………………………………………................................................................................................ ...............................................................
Vadovas
…………………………………..
……………………………..….... (Data)
Tarptautinio verslo specializacija
5
Vilnius Gediminas Technical University
Business Management faculty
Economics and management of enterprises department
ISBN ISSN
Copies No. ………
Date ….-….-….
Business Management study programme master thesis.
Title: Evaluation of Vilnius city largest shopping centers leasing using multiple criteria method
Author Silvija Dobrovolskyt Academic supervisor prof. habil. Dr. R.
Thesis language
Lithuanian
Foreign (English)X
Annotation
The purpose of this master thesis is to evaluate three major shopping centers of Vilnius
city, using a multiple criteria method and to provide the methodology for choosing the right
retail location.
The work consists of four parts. The review of shopping centers‘ classification and
importance in social and economic life is provided in first part of the thesis. The hierarchical
system of choosing retail location criteria is created in the second part of this paper. The third
section provides an overview of the Vilnius City shopping centers‘ market and identifies
three major shopping centers in Vilnius. The survey of commercial real estate professionals
and calculations according the hierarchical criteria system are carried out in part four of this
thesis. The leasing opportunities of three major shopping centers of Vilnius are evaluated and
the methodology of choosing a retail location in shopping center is provided in the end.
Structure: introduction, theoretical part, analytical part, survey and calculations,
conclusions and suggestions, references.
Thesis consists of: 77 pages text without appendixes, 34 tables, 10 graphic schemes, 32
references. The attached Appendix 1.
Keywords: criteria, leasing, multiple criteria method, shopping center, shopping mall, retail location
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Vilniaus Gedimino technikos universitetas
Verslo vadybos fakultetas
katedra
ISBN ISSN
Egz. sk. ………..
Data ….-….-….
Verslo vadybos gistro darbas
Pavadinimas vertinimasAutorius Vadovas prof. habil. dr. R.
Kalba
X
AnotacijaBaigiamajame magistro darbe
Baigiamojo magistro darbo tikslas yra
keturios dalys. Pirmoje dalyje
ekonominiame gyvenime. Antroje dalyje yra sudaroma hi
. Ketvirtoje nimo metodas ir, remiantis, turima
vadas dalis dalis, ir .
Darbo apimtis: 77 p. teksto be , 3 2. Pridedamas 1 priedas.
patalpos
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VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETASVERSLO VADYBOS FAKULTETAS
VADYBOS KATEDRA
……..................Nr. ...............Vilnius
vidurkis..................…...........….....………….........................…...balo.
Baigiamojo darbo tema:
Vadovo atsiliepimas
……………………......................................................................................... ...................................................................
............................................................................................................................................................
............................................................................................................................................................
..................................................................................................................................... .......................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
Vadovas .....................……..........
Tarptautinio verslo specializacija
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VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETASVERSLO VADYBOS FAKULTETAS
VADYBOS KATEDRA
RECENZIJA
…….......................Nr. ...............Vilnius
vertinimas ………………………………………………………………………………....................................
RECENZIJA…………………………………………………………………………………………………………………………
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Magistro laipsnio suteikimo komisijos narys
………………………… ……………………………………………………..
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CONTENT
INTRODUCTION………………………………………………………………………………14
1. SHOPPING CENTRE ............................................................................................................ 16
1.1 RETAIL LOCATIONS ....................................................................................................... 16
1.2 SHOPPING CENTER DEFINITION ................................................................................. 17
1.3 SHOPPING CENTRE TYPES ........................................................................................... 19
1.3.1 Types by size ................................................................................................................ 19
1.3.2 Types by concept .......................................................................................................... 20
1.3.3 Types by location.......................................................................................................... 22
1.3.4 Types by layouts ........................................................................................................... 23
1.4 SHOPPING CENTRE IMPORTANCE.............................................................................. 25
1.5 EUROPEAN MARKET AND PERSPECTIVES............................................................... 27
1.5.1 Market review............................................................................................................... 27
1.5.2 Shopping centers perspectives...................................................................................... 28
2. CHOOSING RETAIL LOCATION ..................................................................................... 30
2.1 Importance of retail location ............................................................................................... 30
2.2 Multiple criteria decision making ....................................................................................... 31
2.3 Criteria................................................................................................................................. 31
2.3.1 Location ........................................................................................................................ 34
2.3.2 Price .............................................................................................................................. 36
2.3.3 Tenant Mix ................................................................................................................... 37
2.3.4 Customers ..................................................................................................................... 39
2.3.5 Shopping center characteristics .................................................................................... 40
2.3.6 Premises characteristics ................................................................................................ 42
2.3.7 Recognition................................................................................................................... 44
3 SHOPPING CENTERS IN VILNIUS.................................................................................... 46
3.1 Market review 2010 ............................................................................................................ 46
3.1.1 Economy....................................................................................................................... 46
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3.1.2 Retail............................................................................................................................. 46
3.1.3 Major shopping centers ................................................................................................ 48
4. MULTIPLE CRITERIA ANALYSIS OF MAJOR SHOPPING CENTERS IN VILNIUS....................................................................................................................................................... 53
4.1 Survey.................................................................................................................................. 53
4.2 Evaluation of criteria ........................................................................................................... 54
4.3 Evaluation of shopping centers ........................................................................................... 61
4.4 Calculations and conclusions .............................................................................................. 67
CONCLUSIONS ......................................................................................................................... 73
REFERENCES............................................................................................................................ 75
APPENDIXES ............................................................................................................................. 78
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List of Tables:
1. Table 1. International Standard for European Shopping Center Types (Lambert, 2006)
2. Table 2. Types of shopping centers (ICSC, 1999)
3. Table 3. Key figures of the main shopping centers in Vilnius (made by author)
4. Table 4. Comparison of shopping centers’ location (made by author)
5. Table 5. Comparison of shopping centers’ parking (made by author)
6. Table 6. Comparison of shopping centers’ layouts and concepts (made by author)
7. Table 7. Comparison of shopping centers’ tenant mix (made by author)
8. Table 8. Ranks of the main criteria elicited from experts (made by author)
9. Table 9. Weights (importance) of the main criteria elicited from experts (made by author)
10. Table 10. Ranks of the sub-criteria No 1 “Shopping center location” elicited from experts
(made by author)
11. Table 11. Weights (importance) of the sub-criteria No 1 “Shopping center location”
elicited from experts (made by author)
12. Table 12. Ranks of the sub-criteria No 2 “Rent price” elicited from experts (made by
author)
13. Table 13. Weights (importance) of the sub-criteria No 2 “Rent price” elicited from
experts (made by author)
14. Table 14. Ranks of the sub-criteria No 3 “Tenant mix” elicited from experts (made by
author)
15. Table 15. Weights (importance) of the sub-criteria No 3 “Tenant mix” elicited from
experts (made by author)
16. Table 16. Ranks of the sub-criteria No 4 “Customers” elicited from experts (made by
author)
17. Table 17. Weights (importance) of the sub-criteria No 4 “Customers” elicited from
experts (made by author)
18. Table 18. Ranks of the sub-criteria No 5 “Shopping center characteristics” elicited from
experts (made by author)
19. Table 19. Weights (importance) of the sub-criteria No 5 “Shopping center characteristics”
elicited from experts (made by author)
20. Table 20. Ranks of the sub-criteria No 6 “Premises characteristics” elicited from experts
21. Table 21. Weights (importance) of the sub-criteria No 6 “Premises characteristics”
elicited from experts (made by author)
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22. Table 22. Ranks of the sub-criteria No 7 “Shopping center’s recognition” elicited from
experts (made by author)
23. Table 23. Weights (importance) of the sub-criteria No 7 “Shopping center’s recognition”
elicited from experts (made by author)
24. Table 24. Evaluation of Akropolis shopping center by the main criteria (made by author)
25. Table 25. Evaluation of Akropolis shopping center by the sub – criteria (made by author)
26. Table 26. Evaluation of Ozas shopping center by the main criteria (made by author)
27. Table 27. Evaluation of Ozas shopping center by the sub – criteria (made by author)
28. Table 28. Evaluation of Panorama shopping center by the main criteria (made by author)
29. Table 29. Evaluation of Panorama shopping center by the sub – criteria (made by author)
30. Table 30. Shopping centers’ evaluation (the main criteria) (made by author)
31. Table 31. Shopping centers’ evaluation (sub – criteria) (made by author)
32. Table 32. Shopping centers’ comparison (the main criteria) (made by author)
33. Table 33. Shopping centers’ comparison (sub- criteria) (made by author)
34. Table 34. Comparison of one-level and hierarchical systems calculations (made by
author)
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List of Figures:
1. Figure 1. Shopping centers in city center
2. Figure 2. Shopping centers equidistant from city center
3. Figure 3. Shopping centers on the boundaries of the city
4. Figure 4. Shopping centers out of town
5. Figure 5. Shopping center layouts
6. Figure 6. Shopping centers’ GLA per country in Europe, 2010
7. Figure 7. Retail Location criteria
8. Figure 8. Shopping center’s distribution by cities (%), 2010, IInd quarter
9. Figure 9. Shopping center’s area for 1000 people, 2010 (Ober-Haus, 2010)
10. Figure 10. Growth of shopping centers’ area in Vilnius
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INTRODUCTION
Over the years shopping center concept and value has strongly changed. Today the
shopping center is not just a place for shopping or spending free time, but it actively participate
in country’s economic and social life. Even a third part of country’s retail sales is generated in
shopping centers. Moreover, shopping centers are a great catalyst for retail growth and many job
positions are created through shopping centers as well. Today shopping centers contribute to
forming citizenries’ style and shopping culture.
Over the past decade the rapid boom of shopping centers created not only a wide
variety for customers, increased competition among traders, but also tasked the process for
retailers of choosing the right retail location for their business. The success of retailer’s business
is strongly determined by right choice of retail location. However, for the reason to choose the
best option, many factors are needed to be evaluated: location, rent price, tenant mix, customer
flow, shopping center recognition, marketing activities, etc. To evaluate correctly each of the
criteria and to estimate the weight (importance) of it is one of the toughest and most difficult
tasks for retailer when choosing a retail location.
Over the past years Vilnius city shopping centers’ market has also increased significantly.
In consequence of intensive development of shopping centers a great variety of choice for
costumers was created. On the other hand, the competition between shopping centers has also
increased significantly, which complicates the selection of store locations for retailers.
The aim of this paper is to analyze the most important criteria for shopping centers, and
according to them, to evaluate the major Vilnius city shopping centers from retailer’s position.
For processing criteria and evaluating shopping centers, the multiple criteria method was chosen,
which is used as a decision support system.
Objective of the work raises the following tasks:
1. To explore the shopping centers’ development and classification;
2. To review the importance of shopping centers’ market to European economy;
3. To analyze the choice of retail location importance and the main criteria;
4. To explore the major Vilnius city shopping centers;
5. To perform multiple analysis, which help to identify the best shopping center for
leasing in Vilnius;
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6. Based on the results to draw conclusions and suggestions.
A variety of literature sources of foreign authors scientific articles, various reviews and
analysis of specialists are used in this paper.
This paper consists of four parts. The shopping center concept, development trends,
classification and importance for social and economic life is analyzed in first part of this paper.
After a brief review about shopping center’s market in Europe, an importance for the economy is
analyzed. In the second part of the paper the importance of choice for retail location and the main
criteria groups are analyzed. The third part of this paper provides an overview of the Vilnius city
shopping centers’ market and a more detailed review of three major shopping centers –
Akropolis, Ozas and Panorama. For the reason to process all the criteria a multiple criteria
method is used in part four of this paper. Through the survey, which was intended to commercial
real estate professionals, the ranks and weights (importance) of criteria was identified and three
major Vilnius city shopping centers were evaluated.
Based on the results of multiple criteria analysis, the best Vilnius city shopping center for
leasing is chosen and the suggestions of choosing the right retail location for retailers are
provided.
This paper provides wider understanding about shopping center importance to social and
economic life as well as an importance of right choice of retail location. The analysis of Vilnius
city major shopping centers leasing using multiple criteria method shows what criteria are the
most important for retailers in a process of choosing the best retail location and which shopping
center of Vilnius city is the most attractive for retailers.
.
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I SHOPPING CENTRE
1.1 RETAIL LOCATIONS
Before starting business or just opening one more store, the most important stage is to
choose location. The difference between selecting the wrong location and the right site could be
the difference between business failure and success.
Commercial retail locations are available in many different forms, depending upon the
demand of products or services and target group. Retailers must consider many store location
factors in order to choose the perfect location, generating the maximum amount of profit. The
main types of retail locations are:
1) Shopping Mall. From small kiosks to large floor areas for big stores, a shopping mall is a
wise choice for any type of retailing businesses. There are generally 1 to 3 anchor stores,
or large chain stores, and then dozens of smaller retail shops. Typically the rent in a mall
location is much higher than other retail locations. This is due to the high amount of
customer traffic a mall generates.
2) Community Shopping Center. Most of the neighborhoods have their community
shopping centers in various sizes. These are small areas where not more than 40 to 50
shops can be found. Also the types of retailers, and the goods or services available in a
community shopping center differs a lot depending upon the location and the type of
customers. One area to investigate before choosing this type of store location is parking.
Smaller shopping centers and strip malls may have a limited parking area for your
customers.
3) Downtown Area. Any traditional market area offers more freedom and fewer rules for
retail business owners. Along with many older, well-established specialty stores and well
known retail franchise outlets in such market areas, there are many new brands thriving
to start their business there. The lack of parking is generally a big issue for downtown
retailers.
4) Airports. The airport retail hub may differ from malls because it is only open to travelers
but retail stores offer welcome relief to travelers to utilize their free time. Today in most
of the airports products are being showcased as never before as retailers have realized the
revenue potential of retailing business in airports. (Waters, 2008)
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5) Office Building. The business park or office building may be another option for a
retailer, especially when they cater to the needs and requirements of other businesses.
Here the target customers are very specific, but if the marketing is done well, one can
enjoy high profit on investments.
6) Free standing locations. This type of retail location is basically any stand-alone
building. It can be tucked away in a neighborhood location or right off a busy highway.
Depending on the landlord, there are generally no restrictions on how a retailer should
operate his business. The price for all that freedom may be traffic.
7) Home-based. More and more retail businesses are getting a start at home. For this type
of location, a retailer does not need to invest much and the growth might also be limited
to some extent. This type of location is an inexpensive option, but growth may be limited.
It is harder to separate business and personal life in this setup and the retailer may run
into problems if there isn't a different address and/or phone number for the business.
(StartFranchiseNow, 2010).
All the options, mentioned above, had their pluses and minuses, but the tendency shows
that retailers mostly seek out and locate next to other retailers in one place or in a nearby
geographical area (Berman and Evans, 2007). Retailers increasingly react by working together in
order to enhance the attractiveness of their common location (Warnaby, Bennison, Davies and
Hughes, 2004). Shopping malls are planned, constructed, managed and marketed as integrated
unit and this has a strong impact on the retail mix – tenant mix, atmosphere, merchandise value,
accessibility, etc. The opportunity to find everything in one place, saving time and energy, not
depending on weather, staying away from traffic, attractive marketing events and many other
advantages attract customers and put the shopping mall to the very top of retail location choices.
(Teller, 2008)
1.2 SHOPPING CENTER DEFINITION
Commercial buildings are one of the oldest building types in the world history. The
exchange of goods was one of the key driving forces behind the development of civilizations that
have affected all areas of life and led to the emergence of cities and their expansion.
With the development of the economy and changing needs of society, the shopping center
definition and importance has also changed. To understand shopping center, that is also usually
called as a shopping mall, only as a shopping place is not entirely accurate. As shopping centers
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become more and more multifunctional, their role is growing not only in social life, but in the
country‘s economic life too.
Different references provide different definitions for the shopping center’s concept.
According to the International Council of Shopping Centers1, a shopping center is a
group of retail and other commercial establishments that is planned, developed, owned, and
managed as a single property, typically with on-site parking provided. The center’s size and
orientation are generally determined by the market characteristics of the trade area served by the
center. (ICSC, 2007)
According to the insights of Lithuanian real estate professionals, shopping center is a
centrally managed commercial establishment, which operates more than 10 independent stores
(tenants), leasable area is not less than 5 000 square meters and anchor tenant takes not more
than 70% of leasable area. (Macijauskas, 2009)
Various dictionaries define shopping center in such ways:
1) One or more buildings forming a complex of shops representing merchandisers, with
interconnecting walkways enabling visitors to easily walk from unit, along with a parking
area – a modern, indoor version of the traditional marketplace; (Wikipedia, 2004)
2) A specialty built covered area containing shops and restaurants, which people can walk
between, and where cars are not allowed; (Reverso, 2005)
3) A collection of retail stores with a common parking area, usually containing a
combination of department stores, grocery stores, retail and food stores. (InvestorWords,
2005)
So, the study of shopping center‘s definition in different sources showed that the
main shopping center‘s features are:
• A complex of retail and other commercial establishments;
• Planned, developed, owned, and managed as a single property;
• With a common parking area.
1 The International Council of Shopping Centers (ICSC) is the global trade association of the shopping centerindustry. Its 60,000 members in the U.S., Canada and more than 80 other countries include shopping center owners, developers, managers, marketing specialists, investors, lenders, retailers and other professionals as well as academics and public officials. (ICSC, 2004)
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1.3 SHOPPING CENTRE TYPES
The main historical events mentioned above indicate that the changing society,
developing technology and economic growth made changes in shopping center functions, layouts
and concept too. For example, in the middle of 20th century the rise of the suburb and
automobile culture influenced the creation of new formats.
1.3.1 Types by size
According to European standards, the International Council of Shopping Centers
identifies that there are traditional and specialized shopping centers (Table 1). It is also identifies
that there are two types of small traditional centers:
• Comparison – based: include retailers typically selling fashion apparel and
shoes, home furnishings, electronics, general merchandise, toys, luxury goods,
gifts and other discretionary goods. They are often a part of larger retail areas,
most likely found in city centers and not anchored.
• Convenience – based: include retailers that sell essential goods and are typically
anchored by a grocery store (supermarket or hypermarket). Additional stores
include drugstores, convenience stores, retailers’ selling household goods, basic
apparel, flowers and pet supplies. Those centers are typically located at the edge
or out of town.
Table 1. International Standard for European Shopping Center Types (Lambert, 2006)
h
t
t
p
:
/
/
Format Type of Scheme Gross Leasable Area (GLA)
Very Large 80 000 sq.m. and aboveLarge 40 000 – 79 999 sq.m.Medium 20 000 – 39 999 sq.m.
Traditional
Small 5 000 – 19 999 sq.m.Retail Park Large
MediumSmall
20 000 sq.m. and above10 000 – 19 999 sq.m.5 000 – 9 999 sq.m.
Factory Outlet Center 5 000 sq.m. and above
Specialized
Theme–Oriented Center
Leisure – BasedNon–Leisure–Based
5 000 sq.m. and above5 000 sq.m. and above
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1.3.2 Types by concept
Given the maturity of the industry, numerous types of centers currently exist that go
beyond the standard definitions. According to the International Council of Shopping Centers, the
first classification for shopping centers was: Neighborhood, Community, Regional and
Superregional centers.
Due to the growing industry, more types of shopping centers were developed. Now the
International Council of Shopping Centers classifies shopping centers in eight types (Table 2):
• Neighborhood Center: This center is designed to provide convenience shopping
for the day-to-day needs of consumers in the immediate neighborhood. According to the
International Council of Shopping Centers, roughly half of these centers are anchored by a
supermarket, while about a third has a drugstore anchor. These anchors are supported by stores
offering pharmaceuticals and health-related products, sundries, snacks and personal services. A
neighborhood center is usually configured as a straight-line strip with no enclosed walkway or
mall area, although a canopy may connect the storefronts.
• Community Center: A community center typically offers a wider range of
apparel and other soft goods than the neighborhood center does. Among the more common
anchors are supermarkets, super drugstores, and discount department stores. Community center
tenants sometimes contain off-price retailers selling such items as apparel, home
improvement/furnishings, toys, electronics or sporting goods. The center is usually configured
as a strip, in a straight line, or “L” or “U” shape. Of the eight center types, community centers
encompass the widest range of formats.
• Regional Center: This center type provides general merchandise (a large
percentage of which is apparel) and services in full depth and variety. Its main attractions are its
anchors: traditional, mass merchant, or discount department stores or fashion specialty stores. A
typical regional center is usually enclosed with an inward orientation of the stores connected by a
common walkway and parking surrounds the outside perimeter.
• Superregional Center: Similar to a regional center, but because of its larger
size, a superregional center has more anchors, a deeper selection of merchandise, and draws from
a larger population base. As with regional centers, the typical configuration is as an enclosed
mall, frequently with multilevels.
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• Fashion/Specialty Center: A center composed mainly of upscale apparel shops,
boutiques and craft shops carrying selected fashion or unique merchandise of high quality and
price. These centers need not be anchored, although sometimes restaurants or entertainment can
provide the draw of anchors. The physical design of the center is very sophisticated, emphasizing
a rich decor and high quality landscaping. These centers usually are found in trade areas having
high income levels.
• Power Center (Retail Park): A consistently designed, planned and managed
scheme that comprises mainly medium- and large-scale specialist retailers (“big boxes” or
“power stores”). (Lambert, 2006)
• Theme/Festival Center: A consistently designed, planned and managed scheme
that can either be leisure based or non-leisure based. This scheme includes some retail units and
typically concentrates on a narrow but deep selection of merchandise within a specific retail
category. A leisure-based center is usually anchored by a multiplex cinema and includes
restaurants and bars with any combination of bowling, health and fitness and other leisure-
concept uses. A non-leisure-based center concentrates on a niche market for fashion/apparel or
home furnishings or can target specific customers such as passengers at airports. The biggest
appeal of these centers is to tourists; they can be anchored by restaurants and entertainment
facilities. These centers, generally located in urban areas, tend to be adapted from older,
sometimes historic, buildings, and can be part of mixed use projects.
• Factory Outlet Center: Consistently designed, planned and managed scheme
with separate store units, where manufacturers and retailers sell merchandise at discounted prices
that may be surplus stock, prior – season or slow selling. These centers are typically not
anchored. A strip configuration is most common, although some are enclosed malls, and others
can be arranged in a "village" cluster. (ICSC, 1999)
It is not always easy to identify precisely the type of shopping center. There are shopping
centers that combine elements from different types such mixing is one more way how new
concepts of shopping centers begin.
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Table 2. Types of shopping centers (ICSC, 1999)
TYPE CONCEPT SQ.M. NUMBER TYPEANCHOR
RATIONEIGHBORHOOD CENTER
Convenience 2 800 –14 000
1 or more Supermarket 30-50%
COMMUNITY CENTER
Convenience 9 300 –32 500
2 or more Supermarket, drugstore, home improvement, specialty apparel
40-60%
REGIONAL CENTER Fashion 37 200 –74 300
2 or more Department stores, fashion apparel
50-70%
SUPERREGIONAL CENTER
Similar to regional, but wider assortment
74 300 and above
3 or more Department stores, fashion apparel
50-70%
FASHION / SPECIALTY CENTER
Fashion 7 400 –23 200
N/AFashion
N/A
POWER CENTER Dominant anchors, few small tenants
23 200 –55 700
3 or more Home improvement, warehouse
75-90%
THEME / FESTIVAL CENTER
Leisure: tourists-oriented, retail and services
7 400 –23 200
N/A Restaurants, entertainment
N/A
OUTLET CENTER Manufacturers‘ outlet stores
4 600 –37 200
N/A Manufacturers‘ outlet stores
N/A
1.3.3 Types by location
Shopping center‘s location is one of the most important factors affecting the shopping
1) Standing in historical city center (Figure 1);
Figure 1. Shopping centers in city center
2) Situated in central districts of the city, equidistant from city center and suburbs
(Figure 2);
Figure 2. Shopping centers equidistant from city center
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3) Built in suburbs, outskirts and city boundaries (Figure 3);
Figure 3. Shopping centers on the boundaries of the city
4) Situated out of town, at the farthest distance from city center. Location allows build
larger shopping centers, with convenient access and spacious parking lot. (Figure
4).
Figure 4. Shopping centers out of town
1.3.4 Types by layouts
Shopping center‘s location has a significant influence not only to its concept, but also to
the layout of the shopping center. Shopping centers in the city center and densely built up
districts usually are smaller than shopping centers in suburbs. Broad area, which is intended to
shopping center, gives developers more freedom in developing the concept and layout. Shopping
center’s layout must be planned and designed considering not only constructional and
architectural requirements, but human psychology as well. The following types of shopping
centers are shown in Figure 5 (Levitt, Berens, Beyard, 1997):
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Figure 5. Shopping center layouts
There is one more type of shopping center, which is mostly used in city centers, or in
densely built up areas. This type is called as Vertical Mall and in simple phrasing it could be
described just as a multi-floor shopping center. A vertical mall may also be built where the
geography prevents building outward or there are other restrictions on construction, such as
historical buildings or significant archeology. In vertical mall retail area is configured over a
number of stories accessible by elevators and/or escalators, linking different levels of the mall.
The challenge of this type of mall is to overcome the natural tendency of customers to move
horizontally and encourage customers to move upwards and downwards.
„Quantitative“ model Letter „T“ model „Triangle“ model
“Straight Line” model Letter „L“ model Letter „U“ model
„Closed“model „Double closed“ model
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1.4 SHOPPING CENTRE IMPORTANCE
Shopping centers in many parts of Europe have existed for many centuries, but it
is only in the past 50 years that modern purpose-built shopping centers have been developed in
Europe. The consumer is the linchpin of the retail real estate industry and, for that matter, the
European economy. With consumption accounting for approximately 60 percent of the Gross
Domestic Product (GDP) in Europe, it is a backbone and catalyst for European growth.
For the retailer and the consumer, shopping centers provide a clustering of goods
and services that benefit both. Retailers benefit from the concentration of shoppers (footfall) and
consumers benefit from the choice of shops, wide-selection of goods and services offerings and
retailer competition. For the community, shopping centers provide economic benefit, including
jobs and tax revenues through new or expanded hubs of commerce or regeneration of areas. For
the investor, shopping centers are a unique real-estate asset on par, as an asset class, with office,
industrial and residential properties.
Here are 8 key reasons why shopping centers are important to the European
economy and its commerce:
1. Commerce depends on shopping centers. Nearly a quarter of all retail sales in Europe are
estimated to occur in shopping centers. The value of retail sales is approximately equivalent
to a fifth of GDP.
2. Retailers depend on shopping centers. Shopping centers are a good platform for retailer
growth, especially in new markets. Over the next ten years, the retail sector is expected to
grow more rapidly than GDP, and therefore become an increasingly more important driver of
economic activity. The growth in retail activity has been driven, in part, by the growth and
proliferation of large multinational retailers. The development of new centers offers retailers
the opportunity to occupy larger and more efficient stores from scratch, tailored to their
requirements, within a professionally built and run environment.
3. Shopping centers create and support millions of jobs. Shopping centers make a significant
contribution to retail employment. Shopping centers directly employ 4.0 million workers
across Europe—equivalent to a fifth of retail employment. Shopping centers generate
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employment opportunities for women. About three-fifths of overall retail employment is
female.
4. Shopping centers are a catalyst for non-retail development and area regeneration.
Shopping centers directly provide positive economic benefits to the community, including
employment, income and tax revenue, as well as physical improvements to the environment
in terms of better buildings and infrastructure. Indirectly, through the “multiplier” and
“accelerator” economic effects on the economy, shopping-center development (including
redevelopment and renovation) lifts the broader economy.
5. Social role. Shopping centers respond to changes in consumer tastes and needs. Retailers and
shopping-center owners are recognizing that consumers work, live and play differently today
as demographics and societies evolve and intersect ever more. Shopping centers are
providing a greater range of entertainment to connect with the consumer desire for
experiential environments. (DTZ Research, 2011)
6. Spending leisure time. Now shopping centers have a dual functionality, not only to sell and
make money, but also to cater for consumers’ immediate pleasure and enjoyment. Cinema,
bowling, pool club, theatre, karting tracks, laser spaces and many other entertainments are
being incorporated in shopping malls now and attract customers not only to spend time for
shopping, but to spend their free time as well. Moreover, parents are satisfied with shopping
malls, as it has become a good place for their children with guarantees of a gun-, drug-, and
crime free environment. (Socyberty, 2007)
7. Shopping centers are an investment-grade asset. Shopping centers are popular with cross-
border investors as they provide large good quality assets, benefiting from secure incomes
and relatively low risk compared to alternative real estate assets. Shopping centers also have
attracted investors—directly or indirectly through real estate investment trusts—because of
their relatively strong investment returns in many European countries. Total real estate
investment activity in Europe reached €95.9vbn in 2010.
8. Activity for tourists. Tourism is one of the worlds’ largest industries, and shopping is one of
the most popular activities for tourists. Given the size of this market with the growth in both
the tourism industry and tourist destinations, identifying the desires of this consumer segment
is increasingly important in the contemporary marketplace. Shopping center, being one of the
tourists’ sightseeing objects, contributes to creating the image of cities and countries.
(Kinley, Kim, Forney, 2001)
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Shopping centers serve a number of important roles for consumers, retailers,
investors and policymakers. The ubiquitous shopping center is more than just a fixture in
thousands of towns and cities. It is a dynamic source of development, commerce and growth and,
at the same time, fills an important delivery role—efficiently and cost-effectively—for European
retailers’ products and services. Thus, shopping centers play an important role not only in public
life, but in country’s economy too.
1.5 EUROPEAN MARKET AND PERSPECTIVES
1.5.1 Market review
New shopping center development in Europe fell sharply in 2010, representing the largest
decline since 1983, according to a report from Cushman & Wakefield. Around 55.9 million
square feet of shopping center space was completed last year, a fall of 30 percent from 2009. It
was the second consecutive year of falling completion levels and represented the lowest annual
completion total since 2004. (ICSC, 2011)
In the end of 2010 Gross Leasable Area (GLA) of shopping centers across approximately
6 500 schemes of the Europe was over 120 million sq.m. The UK, France, Italy, Germany and
Spain have the largest shopping centers stocks, accounting for 60% of total European stock.
Western Europe accounts for more than 90% of shopping center stock in Europe, with the new
entrant countries accounting for the remaining 10%, they have had high growth rates in recent
years. There were delivered approximately 18 million sq.m. of Gross Leasable Area in Europe
between 2006 and 2009, including 76% in the Europe 15 countries and 24% in Europe accession
countries.
The shopping center stock per capita shows some wide differences between the European
countries. Comparing to the European average of 238 sq.m. per thousand capita, Sweden, Ireland
and the Netherlands seem largely over-supplied with a stock per capita over 400 sq.m. The
shopping center stock in the three major European markets – the UK, France and Italy – are
within the European average while the Central and Eastern European countries and Germany are
below the European average (Figure 6). Russia, which posted the strongest increase in the recent
years and has also the most significant pipeline for the short term, is far below with a stock of 60
sq.m. of shopping center per thousand of capita. Based on this analysis, it is expected to see an
increasing development pipeline in Romania, Russia and Turkey, whilst in the Nordics and the
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Netherlands the focus will be more on refurbishments and redevelopments than on new
developments.
Figure 6. Shopping centers’ GLA per country in Europe, 2010
As a direct consequence of the economic slowdown and the high degree of uncertainty in
retail markets, construction activity declined sharply in 2010 to reach its lowest level in five
years. New shopping centers delivered across Europe in 2010 are estimated at 3.5 million sq.m.,
with a large proportion located in Russia and Turkey. (ICSC, 2011)
1.5.2 Shopping centers perspectives
2011 will be a challenging year, requiring creativity and caution for retailers’ expansion
plans. The continuous environment with the added pressures of government budgets is affecting
household expenditures, and consequently consumers’ ability to purchase in many retail sectors.
Retailers are making the choice to locate or relocate in larger stores in the strongest and
best locations or regions, rather than covering the entire market as they did previously. There is
increasing logic in retailers placing their investment into key stores, within super prime shopping
centers, and on key high streets. This is a trend across Europe and one that leaves an interesting
situation considering the surplus space that exists within the European retail market. At the same
time, there are some interesting trends within retail on a pan-European basis. One is continued
trends with the continued rise of the “value” sector, with operators such as Tesco, Primark,
H&M, and Asda, capitalizing on their ability to sell a wide variety of brands under their retail
banner, within varying degrees and location. This has led to a stagnation within certain retail
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sectors, which have been unable to maintain momentum and created potential risk areas, include
retailers who sell music, books and games- all of which can operate across mobile, and key to
this, cheaper retail platforms. It is expected that some alignment of retail estate to follow this
trend in 2011. (DTZ Research, 2011)
In 2011 new supply should come back to the market, especially in the eastern part of the
region, with Russia and Turkey again leading the way with 2.1 and 2.8 million sq.m.,
respectively, planned for delivery. International Council of Shopping Centers estimates 13
million sq.m. of new shopping centers’ space will be delivered in 2011 and 2012.
Russia, Romania and Turkey are leading the first positions regarding the volume of new
supply of shopping centers to be delivered in 2011 – 2012 compared to the existing stock as at
the end of 2010. The expected pipeline for the next two years represents more than 30% of the
stock. These figures illustrate the huge differences between the far Eastern Europe, with its really
“booming” development trend and Western Europe where developers and investors are much
more focused on redevelopments and refurbishments than on new supply. (ICSC, 2011)
Development is expected to pick up in 2011. Cushman & Wakefield expects to see an
upturn in activity in more than half of the European markets surveyed. About 7 million sq.m. of
new space is scheduled for completion by year’s end. If all of the schemes are finished on time,
this year’s development total will exceed that of last year by 33%, Cushman & Wakefield notes.
In total, 165 new shopping centers opened in 2010, bringing Europe's total amount of retail space
to 130 million sq.m. As with previous years, Central and Eastern Europe accounted for the
majority (63%) of new space opened. Russia and Turkey continue to dominate the European
development pipeline with their combined 2011 – 2012 pipeline accounting for more than 40%
of the European total. Both markets are expected to see large increases in development activity in
2011. In Russia approximately 3 million sq.m. of new GLA is due to open between 2011 and
2012. In Turkey nearly 1.8 million sq.m. of new space is scheduled for completion before the
end of 2012.
There was a rebound in investment activity across all commercial property sectors in
2010. European retail investment volumes amounted to $54.5 billion, a 72% increase from the
previous year. Investment activity is expected to increase slightly across Europe in 2011, and cap
rates are predicted to remain stable. Retail’s share of total European commercial property
investment continued to rise in 2010, to 33% - up from 30% in 2009 - confirming its popularity
as an asset class. (ICSC, 2011)
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2. CHOOSING RETAIL LOCATION
2.1 Importance of retail location
Retail locations provide retailers with physical access to their target customers and can
generate operating advantages that can prove difficult for competitors to overcome. The growth
intensity of retail competition due to the emergence of new formats and technology as well as
shifts in customer needs is forcing retailers to devote more attention to strategic thinking. Retail
mix depends on strategic thinking, includes customer service, store display and design,
communication mix, pricing, merchandise assortment, and location strategy. With the increasing
need to plan for the opening and parallel operation of multiple stores, the strategic nature of these
decisions has significantly intensified (Ghosh and Craig, 1983). Store location decisions have
long been among the most crucial ingredients for any retail business that relies on customers. It
is also one of the most difficult issues to plan and make correct decision when locating the store
in the retail environment. The retail environment is in a state of flux, and what bides well today
may not be accepted in the future. The location of the retailer also indicates what sort of retailer
he / she is. Whether the retailer is searching for a new retail site or relocating an existing
business, retail management has the power to increase profits by choosing the right location.
Location decisions are complex but can be used to develop a sustainable competitive
advantage. These decisions are harder to change because retailers frequently have to either make
substantial investments to buy and develop a real estate or commit to long-term leases with
developers. Location decisions have become even more important in recent years, as there are
more retailers opening up in new locations and making the better locations harder to obtain. The
importance of a suitable location strategy for retailers is clear, particularly in relation to
marketing and financial strategy considerations. The location decisions of retailers are also
significant for other stakeholders, like consumers, planners, and property investment firms.
Although location decisions are a primary consideration in customer’s store choice, most
retailers traditionally rely on intuition guided by experience and “common sense”. A more
scientific and refined approach to evaluate possible retail locations is needed. The decision
makers, who should evaluate a series of trade-offs, can be aided in their decisions with a
multiple-criteria decision-making process. (Burnaz, Topcu, 2007)
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2.2 Multiple criteria decision making
Each shopping center has its own strengths and weaknesses, several incommensurate and
conflicting criteria exist for evaluating shopping centers. Identifying these evaluation criteria,
defining the effects of them on each other, assessing their importance, and choosing a particular
retailer necessitate a well-designed multiple-criteria decision making (MCDM) – based
evaluation.
Multi-Criteria Decision Making (MCDM) is a discipline aimed at supporting decision
makers, faced with making numerous and sometimes conflicting evaluations. MCDA aims at
highlighting these conflicts and deriving a way to come to a compromise in a transparent
process. (Wikipedia, 2005)
Multi-Criteria Decision Making methods are noted to be helpful in reaching important
decisions that cannot be determined straightforwardly. The underlying principle of MCDM is
that decisions should be made by use of multiple criteria. By applying the concept of MCDM,
Professor Thomas Saaty created the analytic hierarchy process (AHP) and the analytic network
process (ANP). Both methods are claimed to possess qualitative and quantitative components.
On one hand they are used to identify decision criteria (qualitative component). This involves the
creation of a structural model for the decision problem. On the other hand, they employ the
procedure for assigning weights to the criteria (quantitative component). (Cheng, 2005)
The Analytic Hierarchy Process (AHP) is a theory of relative measurement with absolute
scales of both tangible and intangible criteria based on the judgment of knowledgeable and
expert people. The AHP reduces a multidimensional problem into a one dimensional one.
Decisions are determined by a single number for the best outcome or by a vector of priorities that
gives an ordering of the different possible outcomes. (Saaty, 2007)
2.3 Criteria
Shopping center is a commercial land use that is more than a real estate venture. It is
also a retail merchandising complex that not only provides many of the basic goods and services
that a community requires but also functions to a greater or lesser extent as a social and
community center. Shopping center is distinguished by several basic precepts: a coordinated
development strategy, a unified spatial arrangement, a carefully planned tenant mix of mutually
supportive tenants, and centralized management control. There are many criteria that must be
considered before choosing the best retail location for business. There are seven main groups:
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Location, Rent price, Tenant mix, Customers, Shopping center characteristics, Premises
Characteristics, Recognition. Each of them has sub – criteria:
1) Location: District, Demographics, Visibility, Accessibility, Surrounding objects;
2) Rent Price: Rent Price, Financial model flexibility, Additional fees;
3) Tenant mix: Anchor tenants, Number of tenants, Balance of tenants, Occupation rate,
Number of competitors;
4) Customers: Target Group, Customer flow, Weekly repartition, Customer flow in
proposed location;
5) Shopping centers’ characteristics: Size, Layout, Concept, Design, Parking, Adjustment
for disabled people;
6) Premises characteristics: Size, Layout, Location in the shopping center, Façade, Fit-out
level, Neighbors;
7) Recognition: Marketing activities, Reputation.
The hierarchical structure of retail location criteria lay out in Figure 7.
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Figure 7. Retail Location criteria
CRITERIA
1. LOCATION 2. RENT PRICE
3. TENANT MIX
4. COSTUMERS
5. SC CHARAC-TERISTICS
6. PREMISES CHARAC-
TERISTICS
CONVENIENCE
7. RECOGNITION
MARKETING2.1 Rent Price
2.2 Financial flexibility
1.1 District
1.2 Demographics
1.3 Visibility
1.4 Accessibility
1.5 Surrounding objects
3.1 Anchor tenants
3.2 Number of tenants
3.3 Balance of tenants
3.4 Occupation rate
3.5 Number of competitors
4.1 Target group
4.2 Customer flow
4.3 Weekly repartition
4.4 Customer flow in proposed
location
5.1 Size
5.2 Layout
5.3 Concept
5.4 Design
5.5 Parking
5.6 Adjustment for disabled people
6.1 Size
6.2 Layout
6.3 Location in the shopping center
6.4 Facade
6.5 Fit-out level
6.6 Neighbours
7.1 Marketing activities
7.2 Reputation
2.3 Additional fees
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2.3.1 Location
Location is of paramount importance in the success of all types of shopping center. The site
must qualify by virtue of its trade area, the income level of the households in the area, competition,
highway access, and visual exposure. The site should represent an impregnable economic position.
Its superior access, greater convenience, better merchant array, and improved services make it
impractical for another similar project to be developed nearby. Recommended distances between
shopping centers cannot be established precisely, either for the same or different type centers. It is
not mere distance between centers, but population density, convenience, accessibility, and diverse
merchandise that count. (Levitt, Berens, Beyard, 1997)
2.3.1.1District
Analysis of shopping center district is one of those first and important steps before
developing a shopping center. It is highly related with transportation and accessibility to the
shopping center and it determines shopping center type, size, layout, anchor tenants, tenant mix and
many other components. The character of a district and the nature of the competition in it shape the
character of a shopping center, including type, quality and tone. The district traditionally is the
geographic area that provides the majority of the steady customers necessary to support a shopping
center. The boundaries of the trade area are determined by a number of factors, including the type
of shopping center, accessibility, physical barriers, the location of competing facilities, and driving
time and distance. For retailers, who are seeking for a location, district is also important criterion,
which lets to assess what customer target and purchasing power can be expected.
2.3.1.2 Demographics
For both, shopping center owners and retailers it is important to have a full understanding
about the shopping center‘s catchment area and demographics. Shopping center‘s financial success
depends on retailers‘ operation, whereas success of their business is mainly determined by customer
flow. So, it is essential to know potential customers and constantly analyze their changing needs.
Catcment area is the area and population, from which a shopping center attracts customers. What is
really needed to know about those customers, is number of population, living around; the average
age of population and distribution in the area; the average family income and distribution by income
level; employment and professions analysis; private ownership and rental housing assesment; ethnic
and racial consist, cultural defferences; psichological analysis, etc. All these aspects let understand
the needs of pupolation and their buying habits, and according to this, to form shopping center‘s
concept and tenant mix.
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2.3.1.3 Visibility
Good visibility improves shopping center’s accessibility. A customer, driving at local traffic
speed, can easily overshoot the entrance to the parking lot if he or she has not seen the shopping
center and its entrance from the access road. Clear signage helps direct customers, increases
visibility, and heightens awareness that a shopping center is near. Overpasses, hills, curves in the
road, and heavy vegetation all impede visibility. Even though traffic flow attracts retail business, a
site that fronts on a highway heavily built up with strings of competing distractions (including
signs) is actually less accessible. (Levitt, Berens, Beyard, 1997)
2.3.1.4 Accessibility
Location of the shopping center must be easy to reach, and the roads must have extra
capacity to avoid congestion during periods of high-volume traffic. The shopping center must be
easy to enter and safe to leave for customers and employees. Shopping centers need to be easily
accessible from the street regardless of what your mode of transportation is.
Automobile traffic may be classified according to the reason for the trip. There are the work
trip, the shopping trip, and the pleasure trip. A good location for a retailer seeking the customer on a
planned shopping trip is along the right – hand side of the main street leading into a shopping
district and adjacent to other streets carrying traffic into, out of, or across town. The beginning or
end of a row of stores rather than across the street from the stores is preferable.
In smaller communities, where the major streets lead to and from the downtown area, the traffic
pattern can be readily identified. In larger cities, where there are suburban shopping center
locations, the traffic moves in many different directions. Because shopping centers tend to generate
traffic, an analysis of the traffic flow to centers and between centers may show that a particular
store location is outstanding.
2.3.1.5 Surrounding objects
Surrounding objects of the shopping center are usually associated with the district where the
shopping center is. In the residential district shopping center will be surrounded by houses, in the
industrial districts – surrounded by factories, warehouses, offices, etc. Shopping center in the center
of the city probably will be surrounded by more luxurious architecture buildings and historical
heritage and so on. Surrounding objects can strongly influence the customer flow into the shopping
center. For example, business center, located near the shopping center will attract more customers
in the lunch time and in the evening, when employees from the business center come to shopping
36
before going home. Other shopping center in the near neighborhood is also a very important
indicator, that should be assessed, but in this case, it may be more negative affected as a competitor.
2.3.2 Price
2.3.2.1 Rent Price
Rent price is the main criterion that usually determine retailer‘s decision in choosing a retail
location. There might be various combinations of financial model, but International Council of
Shopping Centers separate two main types of rent: Minimum rent and Percentage rent. May
shopping center owners require the tenant to pay both – a fixed minimum rent and a percentage
rent. Percentage rent is calculated as a percentage of tenant‘s annual sales made in the premises.
Under the cost sharing between the tenant and lanlord, rental income may take such forms:
• Gross Lease – paid only the base rent and the landlord accepts payment on the cost
of other risks;
• Net Rent – the tenant with a base rent fee also pays all operating costs.
• NN (Double Net) Lease – along with the basic tenants of rental fee also pays all
operating costs;
• NNN (Triple Net) Lease – the tenant pays all operating expenses, insurance and
property taxes. This is a lease, commonly used in shopping centers.
2.3.2.2 Flexibility of financial model
Probably the key point of negotiations and retailer’s decisions is flexibility of the financial
model. In the beginning of negotiations for retailers it is important to feel that landlord is flexible
and cares about coming tenant and its needs. There are many forms, how this flexibility can show –
step rent (when increased rent is dispensed gradually); free month for fitting – out, lower
indexation, and many other.
2.3.2.3 Additional fees
One of the most contentious elements of the landlord – tenant relationship is common area
costs, including common area maintenance (CAM), insurance, taxes, repairs and replacements, and
the marketing fund. These are referred to as the operating costs of the shopping center and are paid
according to the size of premises.
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2.3.3 Tenant Mix
International Council of Shopping Centers describes tenant mix as the combination of store
types and price levels of retail and service businesses in a shopping center. An effective tenant mix
strengthens the center by creating a synergy calculated to appeal to a range of center customers,
increase customer flow and – through placement and price – encourage customers to make multiple
purchases. Tenant mix typically includes different percentages of the following retailers: clothing,
shoe, accessories, gifts, jewelry, food, specialty shops, restaurants, entertainment, services, etc.
(ICSC, 2000)
The exact tenant for a specific center is naturally affected by the specific circumstances of
leasing, financing and availability of tenants for a particular trade area. Shopping centers’
developers base their choices of selection on varying income ranges and other characteristics of the
market area, local buying habits, store sizes, and merchandising practices in different site conditions
and various geographic areas. (Levitt, Berens, Beyard, 1997)
In addition to the shops and catering provided in shopping destinations, a complementary
range of leisure activities is also being added to the larger centers for the reason to attract a wider
catchment and to extend the activity of the center throughout the day and evening. Leisure uses,
which are increasingly integral to regional centers, include cinemas, bowling alleys, family
entertainment centers, amusements, health clubs, night clubs and entertainments venues. The
synergy and compatibility of leisure uses alongside shops and catering produce a matrix of different
types of center. (Coleman, 2006)
The most important parts of tenant mix for retailer are: anchor tenant, number and balance
of tenants, vacancy rate and number of competitors.
2.3.3.1 Anchor tenants
Anchor tenants are an important factor in determining the effectiveness of a shopping center.
An anchor store is a unit integrated within a shopping center with a mixed variety of stores, whose
purpose is to significantly increase the mall’s appeal. It contains all or most of the following
features: it is large (usually more than 600 sq.m. GLA), multiple (national or international chain – a
minimum of three stores), has a strong brand (high awareness and positive response levels),
contributes significant traffic (specifically generates footfall), has widespread appeal (meaning it
would trade successfully as a stand-alone unit) and usually enjoys a privileged position with regard
to rent and services charges (Damian, 2011).
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The placement of anchor tenants usually follows two guidelines: located so that customers
must walk past the storefronts of supplementary tenants to reach them, and separated so that all
supplementary tenants are passed on the way to and from the anchors. They usually are placed at
opposite ends of a mall. The anchor tenants normally are tied in closely with the development team
at the planning stage. The anchor tenants heavily influence site design, building design, layout, and
overall composition of tenants. Anchor tenants determine the center’s basic character and image.
(Levitt, Berens, Beyard, 1997)
2.3.3.2 Number of tenants
A number of shopping centers’ tenants is closely connected with the shopping center size
and layout. The higher number of stores in shopping center is, the greater variety of choices can be
provided and the higher customer flow to the center can be expected. Number of tenants is also
closely linked to the tenancy balance. Regardless of the shopping center size, when forming a tenant
mix, it is important thoroughly allocate number of tenants by type of merchandise. However,
shopping centers’ managers should focus not only on the quantity of stores, but on quality as well.
2.3.3.3 Balance of tenants
It is very important that tenant mix would be balanced in the shopping center. Balanced
tenancy occurs when stores in a planned shopping center complement each other as to the quality
and variety of their product offerings. A tenant mix cannot be decided by a formula – each shopping
center is different. A tenant appropriate for one center can be a mistake in another. Any list of
tenant classifications most frequently found in a given type of center can serve only as a guide in
selecting tenants for shopping centers’ developers and managers. It is not easy to reach the balance
of tenant mix in the shopping center, but it is one of the keys to success in attracting stronger brands
and more customers.
2.3.3.4 Occupation rate
One more indicator, which shows the success of the shopping center, is occupation rate.
Every shopping center is thought to be good with a 100% occupation rate. It is difficult not only to
achieve such level, but to preserve it as well. The result of this indicator is the responsibility of the
shopping center’s management.
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2.3.3.5 Number of competitors
Before renting premises in the shopping center, it is recommended to make a small market
research and to analyze what is the depth of retailer’s category and how many competitors there are.
It is important to evaluate this in order to forecast results and possible threats.
2.3.4 Customers
Retailers’ revenue depends on the number of customer flow and purchasing power, so it is
important to assess the potential customers of the shopping center – to evaluate target group,
number of customer flow, repartition of customer flow in week – days and customer flow in
specific proposed location in the shopping center. Retailers divide visitors in such groups: those
who enter a store; those who after looking at the windows may become customers; and those who
pass without entering or looking.
2.3.4.1 Target group
The target group, which shopping center focuses on, is closely related to shopping center
location (district, demographics), concept and tenant mix (brand and price level). It is important that
retailer’s target group more or less coincide with the whole shopping center target group. For
example, if the shopping center is positioning itself as lower price center, so it might be difficult for
store of high price level.
2.3.4.2 Customer flow
Customer flow is one of the main criteria for retailers, when choosing a retail location. The
size of customer flow shows, how successfully shopping center is operating. Shopping center’s
customer flow reflects the results of general shopping center’s concept, strength of tenant mix,
shopping center management and marketing activities. Customer flow allows for retailer to evaluate
expected traffic to specific store and to forecast tentative income.
2.3.4.3 Weekly repartition
Customer flow in week days’ context distributes according to the shopping center district,
demographics, accessibility and surrounding objects. For example, the highest customer flow of the
shopping center in suburbs will be on weekends, whereas a shopping center somewhere in industrial
district will attract the highest customer flow on working days. It is important for retailer to evaluate
repartition of customer flow in week days’ context for the reason to plan business, number of
employees and expected income.
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2.3.4.4 Customer flow in proposed location
Customer flow in proposed location is tightly related with characteristics of the premises –
location in the shopping center, neighbors, façade (visibility) and the main customer flow of the
center. The higher it is, the higher number of customers in specific premises can be expected. What
is also important for customers’ attraction – marketing activities (common shopping center
marketing activity, as well as individual retailer’s activity). Every shopping center has less
attractive locations, so retailers always draw strong attention to this criterion, which lets evaluate
tentative income.
2.3.5 Shopping center characteristics
Shopping center characteristics define shopping center size, layout, concept, design,
parking, accessibility and many other smaller factors. This is not the most significant criteria for
choosing a retail location, but the interface between all those factors forces to draw attention to all
of these criteria too.
2.3.5.1 Size
Mainly shopping center’s size depends on land area. The second important thing is planning
the shopping center, and designing its layout. Each square meter must be carefully considered,
trying to make the shopping center area as much effective as it is possible. Shopping center’s size
includes both: Gross Building Area (GBA) and Gross Leasable Area (GLA).
2.3.5.2 Layout
Shopping center’s configuration is very important for both – owner and tenants. In the
planning stage, the developer’s main consideration should be placement of the anchor tenants,
which must be positioned so that they draw customers between them and past other tenants.
Shopping center’s configurations have been adapted in countless variations and there is no one
formula, which one of them works the best. And no matter how spectacular the design of a
shopping center is, the layout is much more important. Moreover, retail spaces should be built of
materials that can be easily altered to allow for tenant’s changing needs. The design should provide
for future reallocation of store space and for readjustments in fixtures needed as tenants expand or
shift their locations in the center. (Levitt, Berens, Beyard, 1997)
2.3.5.3 Concept
Shopping center’s concept, as it was mentioned earlier in this paper, is an important factor,
especially related to shopping center district, demographics, surrounding objects, target group, etc.
41
Shopping center’s concept might be: Neighborhood center, Community center, Regional center,
Superregional center, Fashion / Specialty center, Power center (Retail Park), Theme / Festival
center, Factory Outlet center. When seeking for a retail location, retailers pay attention to clearness
and completeness of shopping center’s concept.
2.3.5.4 Design
Good shopping center’s design plays an important role in attracting customers. The
shopping center must be a complex of merchandising as well as a pleasant place for spending free
time. All the components are important and must be considered: interior, exterior, lighting, etc.
When benches, plants, sculptures, fountains and other mall furnishings are provided, the shopping
center creates a setting for even greater vitality in merchandising and promotion of the center.
Before choosing the right design, it is important to analyze, what market segment will be served.
For example, in a low income catchment area, it may be counterproductive to make the shopping
center too elegant, as this might result in scaring potential customers away who seek high value for
their money, whereas more glamorous finishes attracts customers with higher purchasing power.
Examples of needs include easy circulation for everyone, shelter from the sun or rain, places to sit
and rest, enough parking, good lighting. Customers want to visit a shopping center that gives them
a unique experience. This experience makes customers coming back to one shopping center and not
choosing another. Positive memorable image is a key part of the shopping center´s branding and
will ultimately help attract customers. (Bross, 2009)
2.3.5.5 Parking
The parking lot is the first and last impression of shopping center, that’s why it must be
planned and built very carefully. Car is the first choice in terms of transportation for shopping
purposes. The availability of parking space is one of deciding factors in the choice of a shopping
location. The parking area should support the center’s prime role – providing an attractive and
convenient marketplace. Although parking is not a commercial use in itself, it is essential to the
commercial uses within the center. As a rule, it takes up more space than any other physical
component of the center and it must be carefully planned. Requirements for parking design –
parking area, drive – way layout, access isles, individual stall dimensions and arrangements,
pedestrian movements from the parking area to the center, grading, paving, landscaping, and
lighting – are major elements of site planning. (Levitt, Berens, Beyard, 1997)
42
2.3.5.6 Adjustment for disabled
Careful and socially responsible shopping center owner must ensure shopping center’s
adjustment for disabled people – special parking places, lifts, toilets, etc. For retailers’ decision,
when choosing retail location, this makes no sense, but it is necessary to respect all the potential
customers, including disabled people as well.
2.3.6 Premises characteristics
Premises characteristics are one of the most important factors, when choosing retail
location. Each retailer has its own store formats, so it is important that the size if the premises
would be optimum regarding those formats. The other important criterion is layout of the premises.
Irregular shaped premises are more difficult to use effectively for trading, so regular shaped
premises are more popular among the retailers. Probably the most important criteria are place in the
shopping center and neighbors of the premises. Those two criteria strongly influence the flow of
customer to the premises. Façade of the premises is also essential criterion, particularly to fashion
retailers. Fit – out level of the premises is related with investments to the premises and financial
conditions with tenant, so it is also important to be evaluated. These criteria together contribute to a
proper assessment of the proposed premises and premises’ suitability for concrete business.
2.3.6.1 Size
The size of the premises is the first thing, what is important for retailer, seeking for a retail
location. Every brand has its format and optimum size, so for retailers, who are seeking or the best
location, optimum size of the premises is one of the priorities. It is so not only for the concepts
purpose, but for the expenses too. Large store it is much more expensive to maintain (higher
expenses for utilities, need for more employees, etc.).
Whatever the mix of store sizes is ultimately chosen, each tenant should be held to the
minimum space needed, because it is better for the tenant to be a little tight on space than to rattle
around in too large premises with insufficient sales to justify the rent. Variety in the mix of retail
tenants is more important than the size of any one store. Evidence suggests that centers with a
variety of retail tenants are considerably more successful than those with only a few large stores.
(Levitt, Berens, Beyard, 1997)
2.3.6.2 Layout
One more important criterion is premises layout. Regular shaped premises are always most
desirable by retailers, as it is easier to adapt store’s concept and format. Irregularly shaped premises
43
are more risky and less attractive for retailers. Complicated layout may affect not only lower
attractiveness for customers, but inefficient use of retail space.
A standard width of premises cannot be designated for any particular type of tenant.
Retailers generally have their own ideas about store size, based on their experience and study.
Retailers’ ideas often do not coincide with the developer’s need to restrict the width of mall stores
to keep the mall a reasonable length and to allow frontage on the mall for as many tenants as
possible. Usually stores are fitted into structures with wide spans between the structural columns.
The ability to provide stores of varying depths is an asset to any center. When stores in the center
must be of uniform depth, small stores can be carved out of deeper space, leaving rear overlap areas
for the neighboring larger stores. The appropriate ceiling height for a store depends somewhat on
the exterior architectural treatment and certainly on the total area of the store. Lower ceilings are the
trend, encouraged partly because they save energy consumption in the using heating, air
conditioning, and lighting, as well as they are less expensive to build and maintain. (Levitt, Berens,
Beyard, 1997)
2.3.6.3 Location in shopping center
Store’s location in the shopping center is one of the most important keys to store’s
successful business. Retailers usually want to get the premises in the main mall, near anchor tenant
or not far away from entrance. Such locations are the most desirable because of higher customers’
flow. Every shopping center has its better and worse locations, and here everything is determined
by rent price differentiation.
2.3.6.4 Façade
Facade of store is a very important part of the premises. The shop front must be
architecturally integrated with the shopping center and reflect the store’s merchandise and image.
The shop fronts might be completely or partially open, with merchandise placed before the public
without the barrier of the glass. With no exterior doors to open, customers can enter the sales area
under the most favorable circumstances, and the full width of a store becomes the entrance. The
wider the façade is, the more valuable premises are.
2.3.6.5 Fit – out level
Fitting costs are the major portion of investments in start-up period for retailers, and taking
into account the fact that the profit for some time has not yet been reached, the fit-out level of the
premises is also important part for retailers, seeking for retail location. Recent economic crisis has
44
prompted retailers to save money and use an existing or a part of existing fit – out level. On the
other hand, this phenomenon led to the deterioration of some brands image.
2.3.6.6 Neighbors
Neighbors of the store are not the most important criterion, but store with strong and well-
known international brand in the neighborhood may have a significant influence. A good neighbor
to each store can vary, depending on the merchandise group, brand’s popularity and reputation. It is
better to be in strong brand’s neighborhood for smaller and less-known retailers, as stores of strong
brands already have a permanent customer flow. For customers convenience stores are usually
grouped together in the shopping center. Such segmentation is convenient for consumers, but also
increases competition between stores.
2.3.7 Recognition
Shopping center’s recognition is probably the primary criterion for international retailers,
even if they are seeking location for the first store in the city or country. This criterion is also
important to smaller local retailers, as the most recognized shopping centers attract high customers’
flow. There are two main components of shopping center’s recognition: marketing activity, and
shopping center or its management’s reputation.
2.3.7.1 Marketing activity
A successful shopping center is a well – promoted center. By building customer traffic and
increasing sales for all tenants in the center, effective promotion affects the level of percentage rents
and thus plays a major role in determining the rate of return to the owner. For this reason,
promotion is essential for all sizes and types of shopping centers and should be a well – conceived
program. The successful marketing of a shopping center is a complex of task that must follow a
careful plan, the goal of which is to produce profit for the center’s tenants and owner. Advertising
has many forms: television, radio, internet, printings, magazines, promotional flyers, emails, SMS
messages and many others, various shows, exhibitions, concerts and events, etc. Marketing
activities change together with the changing society needs, habits, new technologies and so on.
2.3.7.2 Reputation
Shopping center’s reputation is formed by tenant mix, concept completeness, vacancy rate,
marketing activities and many other factors. All these factors lead to shopping center’s management
team, which is responsible for all those matters. Inflexibility in negotiations, poor communication
45
with tenants, tenants’ strikes – these things do not add attractiveness for choosing a retail location in
such shopping center. So, shopping center’s reputation is being formed not only by active
marketing, but with professional management too.
46
3 SHOPPING CENTERS IN VILNIUS
3.1 Market review 2010
3.1.1 Economy
GDP plummeted -15% in 2009, as all three Baltic States faced their most severe recession in
twenty years. The consensus forecast is for 1% GDP growth in 2010. Consumer price inflation fell
to just 1% year-on-year for all of 2009, after peaking at 8% the previous year. Forecasts are for CPI
growth of 1% in 2010. Meanwhile, wages slumped 7%, to average 620 EUR per month, as both the
public and private sectors cut costs. Salaries are expected to soften another 5% in 2010, and pick up
in 2011. Unemployment jumped to 14% at the end of 2009, from 8% at the end of 2008. Analysts
project unemployment to hit 16% in 2010, before seeing any improvement. Total retail turnover fell
28% in 2009, while the sale of motor vehicles plunged 46%. As usual, the least affected were sales
of food, alcohol, clothes, textile, medicine, cosmetics products, which dropped only 18% in 2009.
With the collapse of the building boom in Lithuania, construction costs have dropped considerably
(salaries, materials, and products). As of December 2009, construction costs decreased 12.6%
compared to the previous year. By the end of 2009, direct foreign investment total €9.9 bln (0.7%
higher than a year ago), which is €2,971 per capita. The Lithuanian currency (Lt) remains pegged to
the euro at a rate of 3.4528 Lt to one euro. The adoption of the euro is a key economic goal for
Lithuania, but it is unlikely to be achieved before 2013, at the earliest. In the meantime, the
exchange rate remains fixed through a currency board system.
3.1.2 Retail
Despite the economic crisis, two large shopping centers opened in Vilnius in 2009. The
Ozas shopping and entertainment centre, which is the second largest in Vilnius with a shopping area
of 62,000 sq.m. and the shopping centre of the Norfa retail chain - N Baze with a total area of
18,000 sq.m. At the end of 2009, there were 22 shopping centers in Vilnius (counting those over
5,000 sq.m. GLA and with over 10 tenants) with a total leasable area of 410,000 sq.m. Currently
Vilnius has 0.73 sq.m. of shopping area per capita. Retail space is lower in other cities of Lithuania,
although Siauliai, with its lower population, has 0.96 sq.m. per capita.
Retail area in shopping centers in Vilnius has tripled over the past six years. That
development run is now at an end, however, and there are no new projects opening in 2010, and
only a few smaller projects planned for the year ahead.
• Demand. Due to rapidly falling retail turnover and further increase of new supply in 2009,
vacancy rate of shopping centers rose from 2.5% in the end of 2008 to 5.7% in the end of
2009.The relatively low vacancy rate of shopping centers as compared to offices can be
47
explained by the fact that the managers of shopping centers cannot afford to have a large
amount of free premises because the more unoccupied premises in a shopping centre, the
less attractive it is; the flow of shoppers drops, and that has a negative impact on the lessees
remaining in the shopping centre. Many shopping centers therefore optfor impressive
discount schemes (or even a rent-free period) for some of the tenants in order to retain as
many premises in operation as possible. The main high streets of Vilnius are losing out to
competition from shopping centers. The number of vacant premises on high streets (Pilies
Street, Didzioji Street, and Gedimino Avenue) that were fully let a few years ago is
increasing. For instance, the section of Gedimino Avenue between Lukiskiu Square and the
Parliament building is not attracting shoppers and currently there are a lot of vacant
premises.The decline in shoppers is not only confined to single shops, but also to shopping
centres located in upmarket locations, such as the intersection of Gedimino Avenue and
Vilniaus Street. Here high street shopping centres such as Flagman, City, and Gedimino 9
averaged more than 20% vacancy at the start of 2010.
• Rents. 2009 saw very active negotiations between the owners of retail premises and their
tenants regarding a reduction in rents or even termination of agreements. Even previously
reduced rents have not saved a majority of the tenants of retail premises since the indicators
of their activities have got worse and worse. Owners of individual retail premises and
shopping centers are in a complicated situation since significantly decreasing rents markedly
change cash flows planned in advance. While rents in the best shopping centres saw 10 -
20% decrease in 2009, the rents in second tier retail centres or main retail streets were down
40-60% in 2009.Rents for a medium sized (150 - 300 sqm) unit in a major retail centre
running from €10.00 to €24.00 per sqm. Rents for anchor tenants at €6.00 - €12.00 per sqm.
Rents on the high street (such as Gedimino Avenue or old town streets) now are from €12 to
€30 per sqm.Leases are generally for three to five years. Triple net leases are not universally
used, with double net leases are more common,where the owner pays real estate taxes.
Generally the tenant is responsible for finishing the premises.
• Investment. No major transactions were registered in Vilnius and other major cities in
2009. The gap between what buyers expect and what sellers will accept is still too large. It is
expected that in 2010 there will be such transactions and also that the investment yields will
be no higher than 10% because the majority of market indicators have already reached the
bottom and financing conditions for transactions should become more favourable. (Ober
Haus, 2010)
48
Vilnius44%
Kaunas21%
18%
12% 5%
Figure 8. Shopping center’s distribution by cities (%), 2010, IInd quarter
According to the area of shopping centers per thousand people, Vilnius lags behind Siauliai
(see Figure 9). However, the population is four times higher in Vilnius than in Siauliai, so shopping
centers market depth (volume and concentration) is higher in Vilnius.
745
528
659
966
473
0
200
400
600
800
1000
V ilnius Kaunas
Figure 9. Shopping center’s area for 1000 people, 2010 (Ober-Haus, 2010)
The growth of shopping centers’ area in Vilnius can be seen in Figure 10. The main changes
are related with the major shopping centers of Vilnius city: Akropolis, Ozas, Panorama.
Figure 10. Growth of shopping centers’ area in Vilnius
0
20
40
60
80
100
120
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011P2012P
GD
P,
mlr
d.
Lt
Are
a,
sq
.m.
Shopping centers area in Vilnius, sq.m.
Akropolis
Panorama
Ozas
Akropolis(extension)
49
Due to intensive development of shopping centers in Vilnius, the variety of shopping centers
appeared and the key figures of the shopping centers are showed in the Table 3.
Table 3. Key figures of the main shopping centers in Vilnius
2.4 Major shopping centers
As Table 3 shows, three major shopping centers of Vilnius are: Akropolis, Ozas, and
Panorama. Akropolis is the oldest shopping center comparing three major shopping centers (2002)
and this is reflected in the interior of the shopping center which is not such modern as Panorama’s,
which was opened in 2008. Ozas was opened the latest – in 2009, but as the economic crisis had
already started, it was a really difficult time for such a large shopping center opening.
• Akropolis. The biggest shopping center in Vilnius, which is a synonym of shopping centers
in Lithuania and means a rich assortment and a unique combination of commerce,
entertainment and services. Akropolis brand embraces supermarkets of extraordinary size,
where people can go shopping, spend leisure time and settle their affairs. Built on a high hill
in Vilnius, the first Akropolis was the first supermarket of such size both in Lithuania and
the Baltic states. Akropolis offers a strong tenant mix with the most popular brands in
Lithuania, variety of restaurants and wide choice of entertainments: 3D cinema, 5D cinema,
bowling alley, ice – skating arena, casino, children zone, etc.
Area (sq.m.)
NoShopping
centerOpening Levels
GBA GLA
Parking places
Number of
tenantsAnchor tenants Location
Shopping center manager
1 Akropolis 2002 2 110 000 84 932 3 400 ~ 255Hyper Maxima, „Akropolis
Group“
2 Ozas 2009 3 93 000 74 000 2500 ~ 180Prisma, Peek
&Cloppenburg
„ECE Projektmanageme
nt Vilnius“
3 Panorama 2008 3 65 000 52 000 1500 ~185 Rimi„E.L.L.
Nekilnojamasturtas“
4 BIG 2006 2 18 779 15 579 ~ 600 ~86 Maxima XX „Newsec Baltics“5 Europa 2004 3 22 611 17 379 ~1 000 ~80 Maxima X BPT Lithuania6 VCUP 2003 5 19 760 13 070 500 ~150 Maxima X N/A7 MADA 2003 3 18 645 12 400 700 ~100 IKI UAB „Limada“8 Gedimino9 2007 4 18 000 10 500 - ~40 RIMI Senamiestis „Newsec Baltics“
9 Mandarinas 2005 2 9 000 7 900 250 ~55RIMI
Hypermarket„CityconOyj
group“10 Pupa 2008 2 6 300 5 300 115 ~40 IKI UAB „Eika“
11 Flagman 2004 3 7 000 5 600 - N/A - SenamiestisUAB
„PinusProprius“12 Olinda 2012 pr. 2 28 000 22 000 700 ~70 Prisma „Inresco“
50
• Ozas. The second largest shopping and entertainment center in Vilnius, located next to
Siemens Arena and Vichy Aqua Park. The German company ECE Projekt management
invested €170 million building the center. Even though only 60-70% of the shops were in
operation on the opening day of the center, at the end of the year 90% of the space was let
and operating. Ozas was the first Lithuanian location for the Finnish hypermarket chain
Prisma, which opened with 10,000 sqm of retail space. Currently, Ozas offers new brands
previously unavailable in other Vilnius shopping centers; these include such well-known
brands as Peek & Cloppenburg, Timberland, Deichmann, Pizza Hut, KFC and others.
• Panorama. A modern shopping and entertainment center Panorama, located in Vilnius
shopping, family and home. The second floor offers modern and stylish clothes, shoes and
accessories. The entertainment area provides the first indoor electric kart Lithuania trail,
playgrounds, activities for children. The restaurant zone can be found on level three, where
Vilnius panorama view can be seen through the windows. Panorama attracts with light and
airy architecture.
The comparison of shopping centers’ location can be seen in Table 4.
Table 4. Comparison of shopping centers’ location
Akropolis Ozas Panorama
Location
Description
Shopping center Akropolis is located in the intersection of two busy –Ozo and Gelezinio Vilko –streets. These streets are very intensive and a high customer flow passes this location every day. It is easy accessible by car as well as by public transportation.
Shopping center Ozas is located in Ozas street, which is one of the busiest streets if Vilnius city. This street is very convenient in accessing by car or public transportation from many sides. Gelezinio vilko and Kalvariju streets, that are nearby are also one of the most intensive streets in Vilnius and gives opportunity to reach this shopping center for many customers.
Shopping center Panorama is located in the intersection of Saltoniskiu and T.Narbuto streets. A traffic circle is situated nearby, which led to Ukmerges and Gelezinio vilko streets. As there are many intersections in this location, the traffic is very intensive and a lot of customers can easily reach Panorama.
51
Due to traffic and shopping center’s area, the parking lot is a very important component of
shopping center. Table 5 shows that Akropolis has the largest parking lot (3400 parking places) and
the minimum area fells for one parking place. Ozas has the most difficult parking lot and the
maximum area fells for one parking place (43,33 sq.m.).
Table 5. Comparison of shopping centers’ parking
Comparing the shopping centers by concept, all of them can be ascribed to Regional concept of
the shopping center. As Table 6 shows, Akropolis layout is similar to letter “L”, Ozas layout is
similar to letter “I” and Panorama layout is similar to “Triangle” layout of the shopping center.
Akropolis differs from Ozas and Panorama, because it has only 2 floors, whereas Ozas and
Panorama have 3 floors.
Table 6. Comparison of shopping centers’ layouts and concepts
Level Layout Concept
Akropolis 2 Regional
Ozas 3 Regional
Panorama 3 Regional
Area (sq.m.)Shopping center
GBA GLA
Parking places
Area (sq.m.) for 1 parking place (comparing with GBA)
Akropolis 110 000 84 932 3400 32,35
Ozas 93 000 74 000 2500 37,20
Panorama 65 000 52 000 1500 43,33
52
Comparing the tenant mix of each major shopping center, it can be clearly seen that
Akropolis is the leader with a number of 227 tenants in its tenant mix (Akropolis, 2011). Ozas and
Panorama (Panorama, 2011) has similar number of tenants, but Panorama’s tenant mix is much
stronger with more international brands and better developed restaurant zone. The Table 7 shows
that Akropolis is stronger in shoes, kids’ stores, sport, gifts and accessories goods, services and
entertainments. Ozas has more clothes brands and restaurants (Ozas, 2011), but most of them are
not well-known and popular, so it wouldn’t be right to say, that Ozas is stronger in clothes and
restaurants than Akropolis. Panorama has the highest number of food stores and cosmetics. For
customers it is good to have a wide assortment of stores, but for retailer the depth of category and
number of competitors is very important before choosing a retail location.
Table 7. Comparison of shopping centers’ tenant mix
ANCHOR
Food
Clothes
Shoes
Kids
Sport
Cosm
etics
Housew
ares
Books, stationary
Gifts, accessories
Services
Restaurants
and cafes
Entertainm
ent
TOTAL
Akropolis Maxima 6 43 24 8 9 11 19 2 27 52 18 7 227
Ozas Prisma 8 54 17 5 4 9 21 2 15 17 20 2 175
Panorama Rimi 10 46 23 7 6 13 21 2 9 21 16 2 177
53
4. MULTIPLE CRITERIA ANALYSIS OF MAJOR SHOPPING
CENTERS IN VILNIUS
A wide choice of retail space in Vilnius raises difficult task for retailers, who want to rent a
premises for new store or restaurant. Choosing a retail location is determined by a number of
criteria, that must be analyzed and evaluated. The main aim of this paper is to evaluate three major
shopping centers in Vilnius – Akropolis, Ozas and Panorama – and to decide, which one is the best
for retailer, seeking for a retail space.
Based on analysis of scientific literature, criteria hierarchical model was created (Figure 7)
and it was the base of three major Vilnius shopping centers’ evaluation, using multiple criteria
analysis. Seven groups of shopping center criteria were separated in the hierarchical model of
evaluation: shopping center’s location, rent price, tenant mix, customer flow, shopping center
characteristics, premises characteristics and shopping center’s recognition. Each of the group
consists of sub-criteria.
Three major shopping centers of Vilnius were evaluated using multiple criteria analysis,
which is one of the best decision making support systems, that helps to cope with number of criteria
and to take a right decision.
In order to evaluate shopping centers correctly, it is important to perform specific multiple
criteria analysis stages:
1) To perform a survey for experts, that will be the basis for further calculations;
2) On the basis of survey results to perform evaluation of criteria system and to settle
the rankings and weights (importance) of the criteria;
3) To perform the evaluation of selected shopping centers and to settle the rates
according criteria system;
4) According to settled weights and shopping centers’ evaluation results to perform
calculations, determine the best values and identify the best shopping center as a
retail location in Vilnius.
4.1 Survey
Survey was made to determine the criteria for ratings, weights and shopping center’s rates.
As a survey respondents and experts of multiple criteria analysis 10 commercial real estate
professionals, working in six different real estate companies were chosen. Survey respondents have
negotiation experience from 3 to 8 years. Communicating directly with retailers, representing them
54
in seeking retail locations or negotiating directly according retail space, have formed for experts
strong opinion and clear understanding about retailers needs for retail location. Experts are named
as E1, E2, … E10.
Two part survey was given to the experts. The first part of the survey is set to determine the
ranking and weights (importance) of the criteria. The second part of the survey is devoted to
evaluate three major shopping centers of Vilnius in the framework of criteria system. A survey form
is attached as Appendix A.
The results of the survey are presented below.
4.2 Evaluation of criteria
In the first part of survey respondents were asked to rank criteria and to attribute a weight
(importance) of the criteria. Respondents were informed that ratings must meet weights (higher
rating must have higher weight); ratings and weights cannot be valued the same; ratings and
weights may not have a value of zero. The results of the main criteria are presented in Table 8.
Table 8. Ranks of the main criteria elicited from experts (made by author)
ExpertsCriteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Shopping center location 5 6 7 7 2 2 7 6 1 3 4.60 6
Rent price 2 2 2 3 5 7 5 3 2 2 3.30 2
Tenant mix 6 5 4 2 4 6 2 2 4 6 4.10 4
Customers 4 1 5 5 3 3 3 5 3 5 3.70 3
Shopping center characteristics 7 7 6 6 6 5 6 7 5 4 5.90 7
Premises characteristics 3 3 1 4 7 4 4 4 6 7 4.30 5
Shopping center recognition 1 4 3 1 1 1 1 1 7 1 2.10 1
As Table 8 shows, the rankings of criteria after survey are:
1. Shopping center recognition;
2. Rent Price;
3. Customers;
4. Tenant mix;
5. Premises characteristics;
6. Shopping center location;
7. Shopping center characteristics.
55
When using a multiple criteria method and experts’ opinions, it is very important to check
the compatibility of their views.
When there are more than 2 experts, their opinions’ compatibility is checked by
concordance coefficient.
Table 8 (I). Ranks of the main criteria elicited from experts (made by author)
The sum of deviation square from average is: S = 906;
W = 12 * 906 / 10*10 (7*7*7-7) = 10 872 / 33 600 = 0.3236;
W×m×(k-1)>, 0.3236
0.3236 * 10 * 6 > 0.3236
19.416 > 0.3236
This value shows that experts’ opinions are compatible and the calculations can be
continued. In the same way the calculation of other opinions was carried out too.
Respondents were also asked to attribute a weight of each criterion. They were noticed that
the sum of the criteria must be 100%. The results of the main criteria weights were divided in 100
and are presented in Table 9.
Experts
CriteriaE1 E2 E3 E4 E5 E6 E7 E8 E9 E10
The Sum of rankings
Average
DeviationSquareFrom
average
Shopping center location 5 6 7 7 2 2 7 6 1 3 46 40 36
Rent price 2 2 2 3 5 7 5 3 2 2 33 40 49
Tenant mix 6 5 4 2 4 6 2 2 4 6 41 40 81
Customers 4 1 5 5 3 3 3 5 3 5 37 40 9
Shopping center characteristics 7 7 6 6 6 5 6 7 5 4 59 40 361
Premises characteristics 3 3 1 4 7 4 4 4 6 7 43 40 9
Shopping center recognition 1 4 3 1 1 1 1 1 7 1 21 40 361
;)(
1232 mmn
SW
−=
56
Table 9. Weights (importance) of the main criteria elicited from experts (made by author)
ExpertsCriteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
Shopping center location 0.12 0.08 0.07 0.07 0.22 0.18 0.06 0.08 0.30 0.17 0.1350 6
Rent price 0.20 0.21 0.20 0.18 0.10 0.09 0.08 0.17 0.20 0.20 0.1630 2
Tenant mix 0.10 0.12 0.11 0.20 0.18 0.10 0.20 0.19 0.12 0.08 0.1400 4
Customers 0.16 0.22 0.09 0.10 0.20 0.17 0.15 0.13 0.15 0.11 0.1480 3
Shopping center characteristics
0.02 0.07 0.08 0.08 0.03 0.11 0.07 0.07 0.10 0.14 0.0770 7
Premises characteristics 0.19 0.16 0.30 0.15 0.02 0.14 0.14 0.14 0.08 0.07 0.1390 5
Shopping center recognition 0.21 0.14 0.15 0.22 0.25 0.21 0.30 0.22 0.05 0.23 0.1980 1
1 1 1 1 1 1 1 1 1 1 1
According to the experts’ ratings, the average of each criterion was calculated. The lower
value of average is the better rating criterion has. The results show that according to the experts’
opinions, the most important criterion is the recognition of the shopping center. The rent price goes
in the second place. Then customers, tenant mix, characteristics of the premises, shopping center
location and the less important are the characteristics of the shopping center.
The same was done with sub-criteria. The results are presented in Table 10-23.
According to the experts’ ratings in Table 10, the results show that the most important sub-
criterion of the first criteria “Shopping center location” is demographics of the shopping center.
Accessibility to the shopping center is in the second place. Then district of the shopping center,
surrounding objects and visibility – in the last place by ratings and weights.
Table 10. Ranks of the sub-criteria No 1 “Shopping center location” elicited from experts (made by author)
ExpertsSub-criteria 1
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
District 2 2 5 5 4 4 3 3 1 1 3.00 3
Demographics 1 1 4 2 2 1 2 1 4 4 2.20 1
Visibility 4 4 2 4 3 5 4 5 3 5 3.90 5
Accessibility 5 3 3 3 1 2 1 2 2 2 2.40 2
Surrounding objects 3 5 1 1 5 3 5 4 5 3 3.50 4
57
Table 11. Weights (importance) of the sub-criteria No 1 “Shopping center location” elicited from experts (made
by author)
ExpertsSub-criteria 1
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
District 0.29 0.20 0.07 0.10 0.10 0.16 0.15 0.22 0.28 0.33 0.1900 3
Demographics 0.30 0.40 0.15 0.25 0.25 0.25 0.30 0.30 0.17 0.10 0.2470 1
Visibility 0.07 0.15 0.20 0.15 0.20 0.14 0.14 0.11 0.20 0.05 0.1410 5
Accessibility 0.06 0.18 0.18 0.20 0.4 0.23 0.31 0.25 0.25 0.32 0.2380 2
Surrounding objects 0.28 0.07 0.40 0.30 0.05 0.22 0.10 0.12 0.10 0.200.1840
4
1 1 1 1 1 1 1 1 1 1 1.0000
The ratings of the second criteria “Rent price” (Table 12) sub-criteria showed that in experts
point of view, the most important sub-criteria for retailers is not a rent price, as it could be thought
at first, but flexibility of financial model. Size of rent price got the second ranking and additional
fees got the third place.
Table 12. Ranks of the sub-criteria No 2 “Rent price” elicited from experts (made by author)
ExpertsSub-criteria 2
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Rent Price size 2 2 2 3 1 3 1 2 1 1 1.80 2
Flexibility of financial model 1 1 1 1 3 1 2 1 3 2 1.60 1
Additional fees 3 3 3 2 2 2 3 3 2 3 2.60 3
The weight of each sub-criterion is shown in Table 13.
Table 13. Weights (importance) of the sub-criteria No 2 “Rent price” elicited from experts (made by author)
ExpertsSub-criteria 2
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
Rent Price size 0.35 0.35 0.3 0.2 0.4 0.25 0.5 0.3 0.5 0.55 0.3700 2
Flexibility of financial model 0.4 0.45 0.45 0.45 0.25 0.45 0.3 0.45 0.2 0.35 0.3750 1
Additional fees 0.25 0.2 0.25 0.35 0.35 0.3 0.2 0.25 0.3 0.1 0.2550 31 1 1 1 1 1 1 1 1 1 1.0000
According to the experts’ rating, the results of the third group “Tenant mix” sub-criteria
showed that anchor tenants are the priority of criteria. Then follow occupancy rate, tenant mix
balance, depth of the specific category (number of competitors of exact category) and the less
important sub-criteria – number of tenants.
58
Table 14. Ranks of the sub-criteria No 3 “Tenant mix” elicited from experts (made by author)
ExpertsSub-criteria 3
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Anchor tenants 4 2 1 1 1 1 1 1 2 1 1.50 1
Number of tenants 5 5 5 5 5 3 5 5 3 5 4.60 5
Tenant mix balance 2 1 3 3 2 4 2 4 4 3 2.80 3
Occupancy rate 3 3 2 2 3 2 3 3 1 2 2.40 2
Number of competitors (depth of category)
1 4 4 4 4 5 4 2 5 43.70 4
The weight of each sub-criterion is shown in Table 15.
Table 15. Weights (importance) of the sub-criteria No 3 “Tenant mix” elicited from experts (made by author)
ExpertsSub-criteria 3
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
Anchor tenants 0.15 0.29 0.40 0.30 0.50 0.26 0.35 0.27 0.22 0.28 0.3020 1
Number of tenants 0.10 0.04 0.08 0.10 0.05 0.20 0.05 0.14 0.20 0.05 0.1010 5
Tenant mix balance 0.25 0.30 0.15 0.20 0.20 0.18 0.30 0.16 0.18 0.22 0.2140 3
Occupancy rate 0.20 0.27 0.25 0.25 0.15 0.23 0.20 0.21 0.30 0.25 0.2310 2
Number of competitors (depth of category)
0.30 0.10 0.12 0.15 0.10 0.13 0.10 0.22 0.10 0.200.1520
4
1 1 1 1 1 1 1 1 1 1 1.0000
The fourth group of criteria is “Customer” and ratings of its sub-criteria showed that
customer flow is the most important indicator for retailers. Target group goes in the second
position, customer flow in proposed location of the shopping center follows after it, and the less
important sub-criteria is weekly repartition.
Table 16. Ranks of the sub-criteria No 4 “Customers” elicited from experts (made by author)
ExpertsSub-criteria 4
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Target group 1 2 3 3 2 2 2 2 2 1 2.00 2
Customer flow 2 1 1 1 1 1 1 1 1 2 1.20 1Customer flow repartition (weekly)
4 4 4 4 4 4 4 4 3 43.90 4
Customer flow in proposed location
3 3 2 2 3 3 3 3 4 32.90 3
The weight of each sub-criterion is shown in Table 17.
59
Table 17. Weights (importance) of the sub-criteria No 4 “Customers” elicited from experts (made by author)
ExpertsSub-criteria 4
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
Target group 0.40 0.34 0.15 0.20 0.25 0.25 0.30 0.30 0.30 0.60 0.3090 2
Customer flow 0.30 0.35 0.40 0.40 0.50 0.28 0.40 0.35 0.40 0.20 0.3580 1
Customer flow repartition (weekly)
0.10 0.05 0.10 0.10 0.05 0.23 0.10 0.10 0.20 0.050.1080 4
Customer flow in proposed location
0.20 0.26 0.35 0.30 0.20 0.24 0.20 0.25 0.10 0.150.2250 3
1 1 1 1 1 1 1 1 1 1 1.0000
Assessing the fifth sub-criteria “Shopping center characteristics”, experts appointed by the
top ranking clearness and completeness of shopping center. The second and third rankings belong to
shopping center size and layout. Parking was evaluated as the fourth ranking. Shopping center’s
design got the fifth ranking, whereas adjustment for disabled people is the less important criteria for
retailers.
Table 18. Ranks of the sub-criteria No 5 “Shopping center characteristics” elicited from experts (made by
author)
ExpertsSub-criteria 5
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Size 3 5 3 4 3 2 2 4 1 1 2.70 2
Layout 2 2 2 3 5 3 4 2 2 3 2.80 3
Concept clearness and completeness
1 1 1 1 1 1 1 1 3 5 1.60 1
Interior, exterior 5 4 5 5 4 5 5 5 5 4 4.70 5
Parking 4 3 4 2 2 4 3 3 4 2 3.10 4
Adjustment for disabled 6 6 6 6 6 6 6 6 6 6 6.00 6
The weight of each sub-criterion is shown in Table 19.
Table 19. Weights (importance) of the sub-criteria No 5 “Shopping center characteristics” elicited from experts
(made by author)
ExpertsSub-criteria 5
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
Size 0.20 0.10 0.15 0.12 0.20 0.20 0.25 0.15 0.30 0.40 0.2070 2
Layout 0.30 0.25 0.25 0.20 0.05 0.18 0.10 0.25 0.21 0.12 0.1910 3
Concept clearness and completeness
0.40 0.30 0.40 0.30 0.40 0.30 0.35 0.28 0.19 0.070.2990 1
Interior, exterior 0.02 0.14 0.07 0.08 0.09 0.15 0.06 0.11 0.10 0.10 0.0920 5
Parking 0.07 0.20 0.10 0.25 0.25 0.12 0.20 0.20 0.15 0.30 0.1840 4
Adjustment for disabled 0.01 0.01 0.03 0.05 0.01 0.05 0.04 0.01 0.05 0.010.0270
6
1 1 1 1 1 1 1 1 1 1 1.0000
60
Evaluating one of the most important criteria – “Premises characteristics” – the experts
pointed out the first number of premises location in the shopping center. The size and layout of the
premises got the second and third rankings. Neighbors of the premises are also important criterion,
which was ranked as number four. The fifth position goes to premises façade and the last one – to
the fit – out level of the premises.
Table 20. Ranks of the sub-criteria No 6 “Premises characteristics” elicited from experts (made by author)
ExpertsSub-criteria 6
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Size 2 2 4 5 4 2 1 2 1 3 2.60 2
Layout 3 4 3 6 3 4 3 3 2 5 3.60 3Location in the shopping center
1 1 1 1 1 1 2 1 3 11.30 1
Facade 4 6 5 4 5 3 4 4 6 2 4.30 5
Fit-out level 5 3 6 3 6 6 5 6 5 6 5.10 6
Neighbors 6 5 2 2 2 5 6 5 4 44.10 4
The weight of each sub-criterion is shown in Table 21.
Table 21. Weights (importance) of the sub-criteria No 6 “Premises characteristics” elicited from experts (made
by author)
ExpertsSub-criteria 6
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of
value
Size 0.20 0.22 0.12 0.09 0.04 0.21 0.30 0.24 0.30 0.15 0.1870 2
Layout 0.16 0.15 0.15 0.06 0.05 0.19 0.20 0.22 0.25 0.08 0.1510 3
Location in the shopping center
0.30 0.28 0.30 0.30 0.51 0.23 0.25 0.28 0.20 0.500.3150 1
Facade 0.14 0.05 0.11 0.10 0.03 0.20 0.15 0.11 0.07 0.16 0.1120 5
Fit-out level 0.12 0.20 0.07 0.20 0.02 0.08 0.06 0.07 0.08 0.01 0.0910 6
Neighbors 0.08 0.10 0.25 0.25 0.35 0.09 0.04 0.08 0.10 0.100.1440
4
1 1 1 1 1 1 1 1 1 1 1.0000
finally in the last evaluation of “Shopping center recognition” sub-criteria shopping center’s
management activities got the first ranking, whereas the reputation of shopping center and its
management team left in the second position.
61
Table 22. Ranks of the sub-criteria No 7 “Shopping center’s recognition” elicited from experts (made by author)
ExpertsSub-criteria 7
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Marketing activities 2 1 2 1 1 1 1 1 1 2 1.30 1
Reputation (Shopping centers’/ managers’)
1 2 1 2 2 2 2 2 2 1 1.70 2
The weight of each sub-criterion is shown in Table 23.
Table 23. Weights (importance) of the sub-criteria No 7 “Shopping center’s recognition” elicited from experts
(made by author)
ExpertsSub-criteria 7
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Rate of value
Marketing activities 0.35 0.9 0.4 0.7 0.8 0.6 0.6 0.53 0.9 0.3 0.6080 1
Reputation (Shopping centers’/ managers’)
0.65 0.1 0.6 0.3 0.2 0.4 0.4 0.47 0.1 0.7 0.3920 2
1 1 1 1 1 1 1 1 1 1 1.0000
4.3 Evaluation of shopping centers
The second part of the survey was devoted to evaluate three major shopping centers of
Vilnius in the framework of criteria system. Experts were asked to evaluate each of the shopping
center (mark 1-10, where 10 – the best value, 1 – the worst value), using the system of criteria,
formed before.
Not all of criteria could be evaluated by experts. Few of criteria just need more information,
which could be evaluated by marks. These criteria are: depth of concrete category (number of
competitors), customer flow in proposed location of the shopping center, size, layout and location
of proposed premises, the façade and fit – out level of the premises, and neighbors of the proposed
premises. All these criteria are very important for a final decision, but every proposal for retailer is
different and unique. As these criteria are too important to be excluded, in this case it was assumed
that proposed premises for the retailer by three major shopping centers of Vilnius – Akropolis, Ozas
and Panorama – on the basis of above mentioned criteria were similar. Since all three shopping
centers are operating, the best retail location are occupied, so it was assumed that all three proposed
premises are in a quite good location of the shopping center, are of optimum size, regular layout,
wide façade, fully fitted – out, with similar traffic, good neighbors and with similar number of
competitors. For the calculations all these criteria get rating of 8.
As the ten-point evaluation system has been selected, data normalization is not required.
The results of Akropolis calculations are presented in Table 24-25, Ozas – Table 26-27,
Panorama – Table 28-29.
62
Table 24. Evaluation of Akropolis shopping center by the main criteria (made by author)
ExpertsCriteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Shopping center location 9 8 7 9 10 10 9 9 9 6 8.60
Rent price 6 8 10 5 1 6 10 4 10 6 6.60
Tenant mix 9 10 9 10 8 9 10 9 10 8 9.20
Customers 10 10 10 10 10 9 10 9 10 6 9.40
Shopping center characteristics
7 8 8 8 9 8 7 7 9 5 7.60
Premises characteristics 9 9 7 9 8 9 10 9 9 8 8.70
Shopping center recognition 9 10 10 10 10 10 10 10 10 9 9.80
Table 25. Evaluation of Akropolis shopping center by the sub – criteria (made by author)
ExpertsSub-criteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
District 9 8 10 9 10 10 9 8 8 7 8.80
Demographics 9 10 10 10 10 10 9 10 8 6 9.20
Visibility 10 10 10 8 10 10 9 10 9 8 9.40
Accessibility 9 9 9 9 8 9 10 9 10 8 9.00
LO
CA
TIO
N
Surrounding objects 8 1 7 8 10 9 8 5 8 5 6.90
Rent price size6 8 7 5 1 5 10 4 10 6 6.20
Flexibility of financial model
6 8 8 6 1 5 9 5 5 6 5.90
RE
NT
PR
ICE
Additional fees 7 8 8 9 1 4 9 6 7 7 6.60
Anchor tenants 9 9 10 10 10 10 10 9 10 8 9.50
Number of tenants 10 8 10 9 10 10 10 9 10 8 9.40
Tenant mix balance 9 10 10 10 9 9 9 8 9 9 9.20
Occupancy rate 10 10 10 10 10 10 10 10 10 8 9.80
TE
NA
NT
MIX
Number of competitors (depth of category)
8 8 8 8 8 8 8 8 8 8 8.00
Target group 9 8 10 10 10 9 9 9 10 9 9.30
Customer flow 10 10 10 10 10 10 9 9 10 9 9.70
Customer flow repartition (weekly)
10 10 10 9 10 9 10 8 8 9 9.30
CU
STO
ME
RS
Customer flow in proposed location
8 8 8 8 8 8 8 8 8 8 8.00
Size 7 8 10 9 10 9 10 9 10 9 9.10
Layout 7 8 9 7 10 7 9 8 9 6 8.00
Concept clearness and completeness
8 9 9 10 9 9 10 9 10 7 9.00
Interior, exterior 5 7 8 7 10 6 6 6 5 5 6.50
Parking 6 10 9 10 6 9 10 9 10 7 8.60
SHO
PPIN
G C
EN
TE
R
CH
AR
AC
TE
RIS
TIC
S
Adjustment for disabled
8 10 9 8 10 9 10 10 8 8 9.00
63
Size 8 8 8 8 8 8 8 8 8 8 8.00
Layout 8 8 8 8 8 8 8 8 8 8 8.00
Location in the shopping center
8 8 8 8 8 8 8 8 8 8 8.00
Facade 8 8 8 8 8 8 8 8 8 8 8.00
Fit-out level 8 8 8 8 8 8 8 8 8 8 8.00
PRE
MIS
ES
CH
AR
AC
TE
RIS
TIC
S
Neighbors 8 8 8 8 8 8 8 8 8 8 8.00
Marketing activities7 8 10 9 10 10 10 9 7 7 8.70
RE
CO
GN
ITIO
N
Reputation (Shopping centers’/ managers’)
10 10 9 6 8 9 9 8 8 8 8.50
Table 26. Evaluation of Ozas shopping center by the main criteria (made by author)
ExpertsCriteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Shopping center location 8 9 7 8 9 6 7 9 9 6 7.80
Rent price 10 10 6 10 3 9 3 8 7 6 7.20
Tenant mix 6 5 5 6 8 6 5 5 5 7 5.80
Customers 5 6 6 6 6 6 5 5 4 7 5.60
Shopping center characteristics
6 10 7 7 1 6 8 6 6 7 6.40
Premises characteristics 6 8 7 5 5 8 8 7 6 9 6.90
Shopping center recognition 5 9 8 7 8 8 7 7 6 7 7.20
Table 27. Evaluation of Ozas shopping center by the sub – criteria (made by author)
ExpertsSub-criteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
District 8 10 10 8 10 8 8 8 8 8 8.60
Demographics 9 9 10 7 10 8 8 9 8 7 8.50
Visibility 8 10 9 6 9 9 10 8 9 8 8.60
Accessibility 9 8 8 8 7 7 9 9 10 9 8.40
LO
CA
TIO
N
Surrounding objects 7 5 10 6 9 9 8 8 5 8 7.50
Rent price size10 10 5 10 5 9 3 8 6 8 7.40
Flexibility of financial model
10 10 9 10 5 9 10 7 6 7 8.30
RE
NT
PR
ICE
Additional fees 8 10 9 8 1 9 9 6 7 7 7.40
Anchor tenants 6 7 4 5 5 5 6 7 6 8 5.90
Number of tenants 8 8 7 7 7 6 8 7 7 8 7.30
Tenant mix balance 6 5 6 5 6 7 7 6 7 9 6.40
TE
NA
NT
MIX
Occupancy rate 6 6 6 6 6 6 5 6 5 7 5.90
64
Number of competitors (depth of category)
8 8 8 8 8 8 8 8 8 8 8.00
Target group 5 9 6 6 5 6 7 7 8 8 6.70
Customer flow 4 8 6 5 5 5 6 6 5 7 5.70
Customer flow repartition (weekly)
7 8 6 5 10 6 6 5 5 7 6.50
CU
STO
ME
RS
Customer flow in proposed location
8 8 8 8 8 8 8 8 8 8 8.00
Size 7 9 9 7 9 9 9 8 9 8 8.40
Layout 4 10 7 5 3 7 8 6 7 7 6.40
Concept clearness and completeness
5 7 7 7 4 6 5 5 5 9 6.00
Interior, exterior 8 10 9 5 3 8 9 7 5 8 7.20
Parking 3 7 1 9 3 8 5 6 4 9 5.50
SHO
PPIN
G C
EN
TE
R
CH
AR
AC
TE
RIS
TIC
S
Adjustment for disabled
7 10 4 6 10 10 9 8 8 10 8.20
Size 8 8 8 8 8 8 8 8 8 8 8.00
Layout 8 8 8 8 8 8 8 8 8 8 8.00
Location in the shopping center
8 8 8 8 8 8 8 8 8 8 8.00
Facade 8 8 8 8 8 8 8 8 8 8 8.00
Fit-out level 8 8 8 8 8 8 8 8 8 8 8.00
PRE
MIS
ES
CH
AR
AC
TE
RIS
TIC
S
Neighbors 8 8 8 8 8 8 8 8 8 8 8.00
Marketing activities9 9 8 8 10 9 7 9 8 9 8.60
RE
CO
GN
ITIO
N
Reputation (Shopping centers’/ managers’)
4 10 7 7 6 7 7 9 6 8 7.10
Table 28. Evaluation of Panorama shopping center by the main criteria (made by author)
ExpertsCriteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
Shopping center location 9 10 8 10 5 8 8 8 10 8 8.40
Rent price 8 8 8 7 2 8 9 5 8 8 7.10
Tenant mix 8 10 9 8 8 8 10 7 8 7 8.30
Customers 7 9 7 7 8 9 9 7 7 8 7.80
Shopping center characteristics
9 10 9 9 10 9 9 7 8 88.80
Premises characteristics 8 8 8 8 8 9 9 8 8 8 8.20
Shopping center recognition 7 10 9 9 8 9 9 8 8 8 8.50
Table 29. Evaluation of Panorama shopping center by the sub – criteria (made by author)
ExpertsSub-criteria
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10AVERAGE
District 9 10 10 7 6 9 8 7 9 8 8.30
LO
CA
TIO
N
Demographics 9 10 10 8 5 8 9 9 8 8 8.40
65
Visibility 8 8 10 9 7 9 9 8 9 9 8.60
Accessibility 9 10 8 10 3 10 8 9 10 9 8.60
Surrounding objects
8 1 9 8 6 9 9 5 6 7 6.80
Rent price size8 9 8 7 2 5 8 5 8 8 6.80
Flexibility of financial model
8 8 9 8 1 6 9 6 8 7 7.00
RE
NT
PR
ICE
Additional fees 8 8 9 8 1 5 9 6 7 7 6.80
Anchor tenants 8 8 9 7 8 9 7 7 7 8 7.80
Number of tenants 8 10 10 8 7 9 9 8 8 8 8.50
Tenant mix balance
8 10 9 7 8 9 8 6 8 8 8.10
Occupancy rate 9 10 9 8 10 9 8 9 9 8 8.90
TE
NA
NT
MIX
Number of competitors (depth of category)
8 8 8 8 8 8 8 8 8 8 8.00
Target group 8 10 9 7 10 8 9 7 7 8 8.30
Customer flow 6 9 8 7 7 8 8 7 7 7 7.40
Customer flow repartition (weekly)
7 9 8 6 10 8 10 5 6 7 7.60
CU
STO
ME
RS
Customer flow in proposed location
8 8 8 8 8 8 8 8 8 8 8.00
Size 9 10 9 10 7 9 8 9 8 8 8.70
Layout 8 9 9 8 8 9 9 8 8 7 8.30
Concept clearness and completeness
9 9 9 9 9 8 8 8 10 8 8.70
Interior, exterior 9 10 9 9 7 10 9 8 9 6 8.60
Parking 10 10 9 10 10 9 9 8 9 10 9.40
SHO
PPIN
G C
EN
TE
R
CH
AR
AC
TE
RIS
TIC
S
Adjustment for disabled
9 10 9 7 10 9 10 6 8 9 8.70
Size 8 8 8 8 8 8 8 8 8 8 8.00
Layout 8 8 8 8 8 8 8 8 8 8 8.00
Location in the shopping center
8 8 8 8 8 8 8 8 8 8 8.00
Facade 8 8 8 8 8 8 8 8 8 8 8.00
Fit-out level 8 8 8 8 8 8 8 8 8 8 8.00
PRE
MIS
ES
CH
AR
AC
TE
RIS
TIC
S
Neighbors 8 8 8 8 8 8 8 8 8 8 8.00
Marketing activities
8 10 10 10 10 8 10 8 8 7 8.90
RE
CO
GN
ITIO
N
Reputation 9 10 8 9 1 8 9 8 8 7 7.70
The summary of the results and comparison of the shopping center’s marks are presented in
Table 30-31.
66
Table 30. Shopping centers’ evaluation (the main criteria) (made by author)
Shopping centersCriteria
AKROPOLIS OZAS PANORAMA
Shopping center location 8.6 7.8 8.4
Rent price 6.6 7.2 7.1
Tenant mix 9.2 5.8 8.3
Customers 9.4 5.6 7.8
Shopping center characteristics
7.6 6.4 8.8
Premises characteristics 8.7 6.9 8.2
Shopping center recognition
9.8 7.2 8.5
Table 31. Shopping centers’ evaluation (sub – criteria) (made by author)
Shopping centersSub – criteria
AKROPOLIS OZAS PANORAMA
District 8.80 8.60 8.30
Demographics 9.20 8.50 8.40
Visibility 9.40 8.60 8.60
Accessibility 9.00 8.40 8.60
LO
CA
TIO
N
Surrounding objects 6.90 7.50 6.80
Rent price size 6.20 7.40 6.80
Flexibility of financial model
5.90 8.30 7.00
RE
NT
PR
ICE
Additional fees 6.60 7.40 6.80
Anchor tenants9.50 5.90 7.80
Number of tenants 9.40 7.30 8.50
Tenant mix balance 9.20 6.40 8.10
Occupancy rate 9.80 5.90 8.90
TE
NA
NT
MIX
Number of competitors (depth of category)
8.00 8.00 8.00
Target group 9.30 6.70 8.30
Customer flow 9.70 5.70 7.40
Customer flow repartition (weekly)
9.30 6.50 7.60
CU
STO
ME
RS
Customer flow in proposed location
8.00 8.00 8.00
Size 9.10 8.40 8.70
Layout 8.00 6.40 8.30
SHO
PPIN
G
CE
NT
ER
C
HA
RA
CT
ER
IST
ICS
Concept clearness and completeness
9.00 6.00 8.70
67
Interior, exterior6.50 7.20 8.60
Parking 8.60 5.50 9.40Adjustment for disabled
9.00 8.20 8.70
Size 8.00 8.00 8.00
Layout 8.00 8.00 8.00
Location in the shopping center
8.00 8.00 8.00
Facade8.00 8.00 8.00
Fit-out level 8.00 8.00 8.00
PRE
MIS
ES
CH
AR
AC
TE
RIS
TIC
S
Neighbors 8.00 8.00 8.00
Marketing activities8.70 8.60 8.90
RE
CO
GN
ITIO
N
Reputation
8.50 7.10 7.70
4.4 Calculations and conclusions
Criteria and sub-criteria were separated in this paper, so calculations will be done in two ways
as well: one level calculations (when only criteria values are counted) and hierarchical calculations
(when criteria and sub-criteria values are counted).
As the ten – point evaluation system has been selected, data normalization is not
required. Also, the ten-point system all the variables made as maximizing, i.e. the higher the mark
is the better the value is. Therefore, minimizing variables, that should be made as maximizing
variables, in this case do not exist, and only the maximizing variables remain in formula.
Table 32. Shopping centers’ comparison (the main criteria) (made by author)
Shopping centers values, wCriteria *
Weight (importance), q
Measures Akropolis Ozas Panorama
Location+
0.1350Marks (1-10)
8.6 7.8 8.4
Rent Price+
0.1630Marks (1-10)
6.6 7.2 7.1
Tenant Mix+
0.1400Marks (1-10)
9.2 5.8 8.3
Customers+
0.1480Marks (1-10)
9.4 5.6 7.8
SC characteristics+
0.0770Marks (1-10)
7.6 6.4 8.8
68
Premises characteristics +
0.1390Marks (1-10)
8.7 6.9 8.2
SC recognition+
0.1980Marks (1-10)
9.8 7.2 8.5
The Sum of Maximizing Variables 59,9 46,9 57,1
The Sum of Minimizing Variables - - -
Value of the alternative 8,65 6,75 8,12Priority of the alternative 1 3 2
One level system shows that Akropolis is the best choice for retailer (value 8.6509),
Panorama is the second choice for retailer (value 8.1081) and Ozas is the last choice (value 6.7449)
comparing three major shopping centers of Vilnius city. Akropolis get the highest evaluations in
Location, Tenant Mix, Customers, Premises characteristics and Recognition criteria. Ozas and
Panorama get the highest value only in one position: Ozas – in Rent Price criteria, whereas
Panorama in Shopping center’s characteristics.
The calculations of hierarchical system is shown in Table 33.
Table 33. Shopping centers’ comparison (sub- criteria) (made by author)
Shopping centers values, wSub-criteria *
Weight (importance), q
MeasuresAKROPOLIS OZAS PANORAMA
District+ 0.1900
Marks(1-10)
8.80 8.60 8.30
Demographics+ 0.2470
Marks(1-10)
9.20 8.50 8.40
Visibility+ 0.1410
Marks(1-10)
9.40 8.60 8.60
Accessibility+ 0.2380
Marks(1-10)
9.00 8.40 8.60LO
CA
TIO
N
Surrounding objects+ 0.1840
Marks(1-10)
6.90 7.50 6.80
+ TOTAL:Marks (1-10)
8.68 8.33 8.16
LOCATION+ 0.1350
Marks (1-10) 1.1718 1.1245 1.1016
Rent price size+ 0.3700
Marks(1-10)
6.20 7.40 6.80
Flexibility of financial model
+ 0.3750Marks(1-10)
5.90 8.30 7.00
RE
NT
PR
ICE
Additional fees+ 0.2550
Marks(1-10)
6.60 7.40 6.80
+ TOTAL:Marks (1-10)
6.19 7.74 6.88
RENT PRICE
+0.1630
Marks (1-10) 1.0089 1.2616 1.1214
69
Table 33 (continuation). Shopping centers’ comparison (sub- criteria) (made by author)
Shopping centers values, wSub-criteria *
Weight (importance), q
MeasuresAKROPOLIS OZAS PANORAMA
Anchor tenants+ 0.3020
Marks(1-10)
9.50 5.90 7.80
Number of tenants+ 0.1010
Marks(1-10)
9.40 7.30 8.50
Tenant mix balance+ 0.2140
Marks(1-10)
9.20 6.40 8.10
Occupancy rate+ 0.2310
Marks(1-10)
9.80 5.90 8.90
TE
NA
NT
MIX
Number of competitors (depth of category)
+ 0.1520Marks(1-10)
8.00 8.00 8.00
+ TOTAL:Marks (1-10)
9.27 6.47 8.22
TENANT MIX
+ 0.1400Marks
(1-10) 1.2978 0.9058 1.1508
Target group+ 0.3090
Marks(1-10)
9.30 6.70 8.30
Customer flow+ 0.3580
Marks(1-10)
9.70 5.70 7.40
Customer flow repartition (weekly)
+ 0.1080Marks(1-10)
9.30 6.50 7.60
CU
STO
ME
RS
Customer flow in proposed location
+ 0.2250Marks(1-10)
8.00 8.00 8.00
+ TOTAL:Marks (1-10)
9.15 6.61 7.83
CUSTOMERS
+ 0.1480Marks
(1-10) 1.3542 0.9783 1.1588
70
Shopping centers values, wSub-criteria *
Weight (importance), q
MeasuresAKROPOLIS OZAS PANORAMA
Size+ 0.2070
Marks(1-10)
9.10 8.40 8.70
Layout+ 0.1910
Marks(1-10)
8.00 6.40 8.30
Concept clearness and completeness
+ 0.2990Marks(1-10)
9.00 6.00 8.70
Interior, exterior+ 0.0920
Marks(1-10)
6.50 7.20 8.60
Parking+ 0.1840
Marks(1-10)
8.60 5.50 9.40
SHO
PPIN
G C
EN
TE
R
CH
AR
AC
TE
RIS
TIC
S
Adjustment for disabled + 0.0270
Marks(1-10)
9.00 8.20 8.70
+ TOTAL:Marks (1-10)
8.53 6.65 8.74SHOPPING CENTER CHARACTERISTICS
+ 0.0770Marks
(1-10) 0.6568 0.5121 0.6730
Size+ 0.1870
Marks(1-10)
8.00 8.00 8.00
Layout+ 0.1510
Marks(1-10)
8.00 8.00 8.00
Location in the shopping center
+ 0.3150Marks(1-10)
8.00 8.00 8.00
Facade+ 0.1120
Marks(1-10)
8.00 8.00 8.00
Fit-out level+ 0.0910
Marks(1-10)
8.00 8.00 8.00
PRE
MIS
ES
CH
AR
AC
TE
RIS
TIC
S
Neighbors+ 0.1440
Marks(1-10)
8.00 8.00 8.00
+ TOTAL:Marks (1-10)
8.00 8.00 8.00PREMISES CHARACTERISTICS + 0.1390
Marks (1-10) 1.112 1.112 1.112
Marketing activities+ 0.6080
Marks(1-10)
8.70 8.60 8.90
RE
CO
GN
ITIO
N
Reputation
+ 0.3920Marks(1-10)
8.50 7.10 7.70
+ TOTAL:Marks (1-10)
8.62 8.01 8.43
RECOGNITION+ 0.1980
Marks (1-10) 1.7068 1.5860 1.6691
The Sum of Maximizing Variables 58.44 51.81 56.26
The Sum of Minimizing Variables - - -Value of the alternative 8.31 7.48 7.99
Priority of the alternative1 3 2
71
1. According sub-criteria, the values of criteria was calculated:
Q1 = wi * qj (1);
Q1 – Value of alternative (shopping centre);
w – value of criteria (mark);
q – weight of criteria (importance)
Q1 = 0.19*8.8 + 0.247*9.2 + 0.141*9.4 + 0.238*9+0.184*6.9 = 8.68, etc.
The same calculation s done with other sub-criteria.
2. The sum of maximizing variables will be count by formula (2):
∑=
++ =m
iijj dS
1
;
(2);
S – The Sum of maximizing variables.S+1= 8.68 + 6.19 + 9.27 + 9.15 + 8.53 + 8.00 + 8.62 = 58.44, etc.
The same calculation is done with two other alternatives.
3. The relevance importance (efficiency) of alternatives using the maximized variables and this
formula:
Q = wi * qj (3);
Q – Value of alternative (shopping centre);
w – value of criteria (mark);
q – weight of criteria (importance);
.,8.310.1980*8.62
0.1390*80.0770*8.530.1480*9.150.1400*9.270.1630*6.190.1350*8.68=
etc=+++++++1Q
The same calculation is done with two other alternatives.
In the Table 34 the comparison of two calculations is presented.
72
Table 34. Comparison of one-level and hierarchical systems calculations (made by author)
Akropolis Ozas Panorama
One – level system 8.65 6.75 8.12
Hierarchical system 8.31 7.48 7.99
Percentage
difference (%)0.34% 0.73% 0.13%
As the table shows, the results differ by less than 1 %. That means that the survey and
calculations made in this paper were quite accurate and correct. According to this paper, Akropolis
is the best retail location in Vilnius city shopping centers’ context, Panorama is in the second place
of retail locations choice, and Ozas is in the last position, comparing three major shopping centers
of Vilnius city.
73
CONCLUSIONS
Shopping center market of Vilnius city offers a wide supply of choices. This is convenient
for consumers, but it is usually difficult to decide, which retail location to choose for retailers,
developing their business and opening new stores. So, the main goal of this paper was to evaluate
the major shopping centers of Vilnius city, using multiple criteria method.
In the first section, the main definitions, classifications and importance of shopping centers,
presented in various literature was analyzed and presented. On the basis of analyzed data, the
hierarchical structure of criteria was made in the second section, which was the base of further
evaluations and calculations of the retail location criteria. The major shopping center of Vilnius city
– Akropolis, Ozas, Panorama – were analyzed in third section. As multiple criteria decision making
method was chosen for this paper, the survey for experts was carried out and the data used in
evaluating, which one of three major shopping centers is the best for retailer to start or expand his
business.
After analysis of various literature, carried out survey and made calculations, such
conclusions were made:
1. Due to concentrated stores, restaurants and services in one place, complex marketing
and management, shopping center is one of the best choices for retail location, comparing
with other types of retail locations, such as downtown, stand – alone, office – building, etc.
2. There are many classifications of shopping centers: by size, layout, location,
concept, etc., but there is no one formula, which can describe the key to successfully
operating shopping center. The variety of aspects must be taken into consideration in the
process of developing or managing a shopping center.
3. Shopping center takes an important role not only in country’s social life (shopping,
entertainment, spending free time, a place for meetings), but in economic life as well
(creates job positions; catalyst for commerce, retailers; asset – grade, etc.)
4. The tendencies show that the shopping centers’ market due to economic crisis have
settled down in recent years, but did not stop – new shopping centers are being developed in
Europe.
5. In recent years Vilnius shopping center market has grown significantly, creating a
wide assortment for customers and a difficult choice for retailers.
74
6. There are many criteria that must be evaluated before choosing the best retail
location, such as: Location, Rent Price, Tenant Mix, Customers, Shopping center’s
characteristics, Premises characteristics, Recognition. All of those criteria have sub-criteria.
7. Multiple – criteria decision making is a discipline aimed at supporting decision
making, faced with numerous and sometimes conflicting evaluations. This method helps to
identify criteria, assess their importance and choose the best option.
8. Due to the calculations, the ranking of criteria is: Shopping center recognition, Rent
Price, Customers, Tenant Mix, Premises characteristics, Shopping center location, Shopping
center characteristics.
9. According the survey, carried out by 10 commercial real estate professionals, the
results showed that Akropolis is the best retail location in Vilnius city. Panorama is in the
second position and Ozas is in the last place.
10. The comparison of one - level calculation (evaluating only by the main criteria
groups) and hierarchical calculation (evaluating by both – the main criteria and sub –
criteria) results showed that there is less than 1 % difference. This shows that the survey and
the calculations were carried out correctly.
This paper shows how scientific method can be used in every days’ business, helping to
evaluate all of criteria correctly and to choose the best option for new store or restaurant. This
model of evaluation can be improved by collecting data of all the shopping centers premises,
layouts, configurations, fit-out level, facades, rent prices and etc. The more information is included
in calculations, the better decision can be taken. So, in this paper analyzed and proposed
methodology can be successfully used in the choice of retail locations.
75
REFERENCES
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79
Appendix A. Survey form: “Retailers’ criteria in the choice of location in the shopping centers”.
80
APPENDIX ASURVEY FORM
“Retailers’ criteria in the choice of location in the shopping centers” This survey is framed for commercial real estate professionals, who have a long experience
in negotiations with retailers and strong understanding of retailer’s needs in the choice of location
of shopping centers. The aim of this survey is to rank criteria and sub-criteria, to determine their
weights (importance) and to evaluate three major shopping centers of Vilnius: Akropolis, Ozas and
Panorama. The results of this survey will be used only for the final master thesis “Evaluation of
Vilnius city largest shopping centers leasing using multiple criteria method”.
PART I
The main criteria groups will be presented in this part. Please rank the criteria and set
the weight (importance) for each of them. The example is presented below:
Example. Please rank ant set the weights for criteria of studies:
Criteria Rank (1-6) Weight (%)Price of study 2 25Quality of study 1 30Possibilities of financing (loans, scholarships)
6 5
Employment prospects after graduation
5 10
Examination results 3 20Personal ambitions 4 15
(!) Notes:1. Weights must meet rank, i. e. The maximum rank must have the
maximum weight. 2. The ranks and weights of criteria cannot be equal to each other. 3. The weight of criteria cannot be zero
QUESTIONS:1. The importance of retailer‘s criteria in a choice of location in shopping centers:
Rank 1 – the most important criteria, rank 7 – the least important criterionCriteria Rank (1-7) Weight (%)
Shopping center location
Rent price
Tenant mix
Customers
Shopping center characteristics
Premises characteristics
Shopping center recognition
100%
81
2. The importance of shopping center LOCATION from retailer‘s perspective:
Rank 1 – the most important criteria, rank 5 – the least important criterionCriteria Rank (1-5) Weight (%)
District
Demographics
Visibility
Accessibility
Surrounding objects
100%
3. The importance of RENT PRICE from retailer‘s perspective:
Rank 1 – the most important criteria, rank 3 – the least important criterionCriteria Rank (1-3) Weight (%)
Rent price size
Flexibility of financial model
Additional fees
100%
4. The importance of TENANT MIX from retailer‘s perspective:
Rank 1 – the most important criteria, rank 5 – the least important criterionCriteria Rank (1-5) Weight (%)
Anchor tenants
Number of tenants
Tenant mix balance
Occupancy rate
Number of competitors (depth of category)
100%
5. The importance of CUSTOMERS from retailer‘s perspective:
Rank 1 – the most important criteria, rank 4 – the least important criterionCriteria Rank (1-4) Weight (%)
Target group
Customer flow
Customer flow repartition (weekly)
Customer flow in proposed premises
100%
82
6. The importance of shopping center CHARACTERISTICS from retailer‘s perspective:
Rank 1 – the most important criteria, rank 6 – the least important criterionCriteria Rank (1-6) Weight (%)
Size
Layout
Concept completeness
Interior, exterior
Parking
Adjustment for disabled
100%
7. The importance of PREMISES CHARACTERISTICS from retailer‘s perspective:
Rank 1 – the most important criteria, rank 6 – the least important criterionCriteria Rank (1-6) Weight (%)
Size
Layout
Location in the shopping center
Facade
Fit-out level
Neighbors
100%
8. The importance of shopping center RECOGNITION from retailer‘s perspective:
Rank 1 – the most important criteria, rank 2 – less important criterionCriteria Rank (1-7) Weight (%)
Marketing activities
Reputation (Shopping centers’/ managers’)
100%
PART IIIn the second part of the survey three major shopping centers of Vilnius will be presented
for Your evaluation. Please give a evaluation mark from 1 to 10 (10 – the best mark, 1 – the worst
mark) to each of shopping center, using the same criteria system. Remember, shopping centers must
be evaluated from retailer’s perspective.
83
Shopping center
Criteria
Akropolis (Vilnius)
Panorama Ozas
Shopping center location
Rent price
Tenant mix
Customers
Shopping center characteristics
Premises characteristics
Shopping center recognition
Shopping center
Criteria
Akropolis(Vilnius)
Panorama Ozas
District
Demographics
Visibility
AccessibilityLO
CA
TIO
N
Surrounding objects
Rent Price size
Flexibility of financial model
RE
NT
PR
ICE
Additional fees
Anchor tenants
Number of tenants
Tenant mix balance
Occupancy rate
TE
NA
NT
MIX
Number of competitors(depth of category)
- - -
Target group
Customer flow
Customer flow repartition (weekly)
CU
STO
ME
RS
Customer flow in proposed premises
- - -
Size
Layout
Concept completeness
Interior, exterior
Parking
SHO
PPIN
G C
EN
TE
R
CH
AR
AC
TE
RIS
TIC
S
Adjustment for disabled
PR EM
ISE S CH
AR
AC
TE
RIS
TIC SSize - - -
84
Layout - - -
Location in the shopping center - - -
Facade - - -
Fit-out level - - -
Neighbors - - -
Marketing activities
RE
CO
GN
ITIO
N
Reputation (Shopping centers’/ managers’)
Comments and suggestions: ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Negotiations experience (years): ................................................................................................................................................................I would like to receive the results and conclusions of the survey (YES / NO):................................................................................................................................................................
THANK YOU FOR YOUR TIME AND I WISH YOU GOOD LUCK IN YOUR FUTHER NEGOTIATIONS!