10th annual MECSC summit inaugurated

Speaking at the inauguration of the 10th Annual Conference and Exhibition of the Middle East Council of Shopping Centres (MECSC), the regional body for regional shopping centre professionals, Maurin said: 'Dubai's rapid growth reminds me of the way Las Vegas developed in the US. I am sure more global shopping centre brands will soon be coming to this rapidly developing region.'

According to Maurin, the biggest trends are towards mixed use projects and regional developments, focussed on building a city-within-a-city, such as Dubai Festival City, a Platinum Sponsor of the MECSC's event.

Earlier, Majid Saif Al Ghurair, Chairman, MECSC, in his welcome address to the conference, said that the future of the regional shopping centre
industry was bright. 'In the last decade, MECSC has grown into a truly professional organisation and evolved into its role as a catalyst in
developing the industry,' he said.

The MECSC conference and exhibition, which runs at the Jumeirah Beach Hotel's Convention Centre until Wednesday, October 6, is the only regional event that brings together shopping centre industry professionals with their service providers.

Addressing delegates on the opening day of the conference, Michael P Kercheval, ICSC President, warned Middle East mega shopping malls they may face increased competition in the future from a new twist in the retail landscape, so-called 'Lifestyle Centres' which reflect growing consumer demand for an alternative shopping format.

'In the United States the number of 'Lifestyle Centres' is set to double over the next few years,' Kercheval said. 'Impetus for these projects is being driven from several directions. Including the slowdown in construction of new regional malls; the need of national specialty chains to find a new shopping centre platform to support store growth, and a desire on the part of many consumers to combine the convenience of a strip centre with the panache of upscale retailers.'

During his presentation Kercheval set out the appeal of 'Lifestyle Centres' to both consumers and retailers and detail how the concept may be adapted successfully to the Middle East market.

The attraction of 'Lifestyle Centres' for major retailers is higher sales per square foot and lower costs. In the United States, 'Lifestyle Centre' sales average US $298 per square foot annually compared to the traditional malls' average of US $242 per square foot, according to the ICSC. 'Lifestyle Centres' are quicker to build and cost less per square foot - sometimes by as much as half - than a traditional mall.

As a result more 'Lifestyle Centres' are planned to be built than traditional malls, says the ICSC. This year, in the US, three new enclosed
regional-size malls will open, the same number as in 2003. Eight more are slated in 2005. By comparison 25-30 'Lifestyle Centres' will open in 2004 alone.

'Rapidly growing populations and changing lifestyles are creating real challenges for everyone involved in planning the future of retail in the Middle East,' said Kim Redman, Regional Director, MECSC. 'The Convention's conference provides an arena for discussing best practice, as well as new and innovative retail development ideas and act as a knowledge base that will educate and develop individuals within the industry.'

In addition to Dubai Festival City, the Jumeirah Beach Residences - leaders in the mixed-use retail developments in Dubai - is a Platinum sponsor of the MECSC exhibition and conference. PMDC Cluttons, Burjuman Centre, Arabian Oud, FootFall, Grand Optics and Mastercard are the event's other principal sponsors.