RENÉ VAN GOOL

Market Trends: How New and Old Public Markets Stay

Relevant in Today’s Competitive Marketplace

Owner and Managing Director VGA Food Concepts and

Development/ Markthal Rotterdam

Rotterdam Market Hall René Van Gool

Rotterdam once was like any European city

Until May 1940

It then had to reinvent itself

City centre of Rotterdam & location Market Hall

Train & subway station

WTC

Cathedral

Market Hall

Main shopping street

Open air market

The City as it had transformed towards the 21st century

Late nineties: Outdoor Market in decline

Part of national trend

Why?

• Impractical opening times

• One dimensional offer: no variety in product stages

• Climate, hygiene & safety issues

• No public facilities

• Pricing is “mythical” (always best offer?)

• Provenance is often unclear

• Waste management not in place

• Consumer is taken for granted

European trend in Food Retail

• Today's reality

No counterbalance possible

Because of supermarkets’ financial power

Supermarket dominance

90

92

94

96

98

100

102

104

2007 2008 2009 2010 2011 2012

Index number of food stores The Netherlands: 2007 = 100

Supermarkets

Food specialists

80

90

100

110

120

130

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Index Retail turnover The Netherlands: 2005 = 100

Supermarkets

Food specialists

Rotterdam council saw covered market as solution

Key question was: for whom?

• Last market stall owner standing? • Food retailers being swamped by supermarkets?

• Council who wanted to privatize?

Being the first Market Hall ever and now in the private domain, we could develop as we saw fit. Break the mold and start from scratch.

Key Choice

They demand:

• Availability

• Choice

• Service

• Convenience

Renewed focus on the consumer!

How?

• Teaming up: a variety of food retailers working together

• Complete offer in all imaginable stages of preparation

• Blurring is essential

• Eat in, Eat out, Eat all!

Through scale and diversity!

• Winning sketch: integrated design by MVRDV architects

Iconic architecture

You need an Iconic building for that

Market Hall Rotterdam: L 125 m x W 75 m X H 45 m

Cross cut

Market Hall Rotterdam

Cross cut

Cross cut

Stalls ± 3.300 m²

Restaurants and Cafés ± 2.400 m²

Supermarket ± 1.800 m²

Parking 1.200 spaces

Retail ± 4.500 m²

Apartments: 228

Total Program

± 12.000 m²

What will you find inside the Hall?

Sustainable

Organic

(self)

Service Local Heroes

Multicultural

Traceable

Affordable

Themes

Grote Marktstraat

Bin

ne

nro

tte

Blaak

Ground floor lay out designed in cooperation with Mercasa

Distribution of products & Commercial Mix

ERWARTETE BESUCHERZAHL DER MARKTHALLE IN

ROTTERDAM

A maximum amount of visitors of:

Bron: Locatus Winkelpassantentelling Rotterdam Centrum Oost 2011, bewerking door VGA, Conceptional en Corio

A minimum amount of visitors of:

maandag dinsdag woensdag donderdag vrijdag zaterdag zondag totaal per jaar

560.000 980.000 980.000

1.050.000

1.120.000 1.330.000

980.000

7.000.000

8% 14% 14% 15% 16% 19% 14% 100%

maandag dinsdag woensdag donderdag vrijdag zaterdag zondag totaal per jaar

360.000 630.000 630.000

675.000

720.000

855.000

630.000

4.500.000

8% 14% 14% 15% 16% 19% 14% 100%

ESTIMATES PRIOR TO OPENING

With an estimated turn over of 62 to 69 million

The Context

The content

Cross cut

The Stalls

Cross cut

The Stalls

Cross cut

People “ like” the Market Hall actively

5th million visitor expected in April

Reality: amount of visitors up till now

2015: weekly average of 135.000 visitors per week

7 million people expected over year 1

Estimated turn over 2015 61 million

:Negative -Younger generations avoid: too busy & too exclusive

- Building still major reason for visiting - Not yet seen as place to purchase food daily

Does consumer profile fit with estimate?

Positive: - Strong regional presence - Important local group has yet to come - Visiting frequency is on the increase (twice a week) - Average spending also on the up

Key indicator: Net Promotor Score (NPS)

Very high NPS score, Rotterdam feels proud (Dutch average is -/- 3%!)

Next steps: more chances

• Climate + atmosphere: a constant climate has to be achieved

• More “Blurring” is essential: many retailers still traditional, new approach needed

• No one dimensional sales unless highly specialized: complete offer in all stages of preparation

• More (price-)choice & competition: especially in fish

• More working together making offer complete

• Marketing: away from context, more on content

• Service: From home delivery to personal shopping

• Accessibility: even longer opening times, Sunday in particular

• More focus on regional produce and shortening of the food chain

• Special focus on health, education and children.

• Visitors have to treat Hall as “ their domain” a home from home

My advice? Rotterdam is the city to see. Come and visit!

Thank you for your attention!