Exclusive Interview
AlgarveShopping is celebrating 12 years of commercial success with the inauguration of an expanded and refurbished area dedicated to fashion. The Algarve Resident spoke with its director Carla Martins to find out more about the €4.5 million investment by owning group Sonae Sierra, new store additions and the plans for the cinema hall, which has been closed since late last year after financially-troubled film distribution company Castello-Lopes left the premises.
AlgarveShopping has recently undergone major works to remodel a 3,000sqm area on the first floor, by the food court, to accommodate seven new stores providing 100 new jobs, adding to the existing 1,000 direct jobs in the centre. AlgarveShopping now offers a total of 130 stores across an area of approximately 45,500sqm and with a shop occupancy rate close to 98%, Carla Martins feels confident it has the potential to become the shopping centre of choice for the Algarve population.
Algarve Resident: Considering AlgarveShopping already provided an extensive selection of fashion stores, why open six more, including H&M and C&A as “sensation stores”?
Carla Martins: The opening of the C&A and H&M stores, two international references in the fashion segment, is part of our efforts to bring more quality and variety to AlgarveShopping. These new shops, which are the largest of both brands in the Algarve, as well as five other new fashion, accessories and perfume shops (G-Star Raw, Rockport, Levi’s, Claire’s and Kiko Make Up) are in line with the centre’s commercial strategy, client demand and profile.
A.R.: On the other hand, AlgarveShopping appears to have lost diversity in its restaurant offer, with part of the food court now occupied by these new shops. Are there plans to attract investment from the restaurant sector?
C.M.: What we did was transform a small area that had only a few restaurants into a completely refurbished court, with shops that were missing in the shopping centre and have helped to differentiate us from the rest and reinforce our position in the market. Plus, there were only a small number of restaurants occupying that space, which was detached from the main food court. We realised that the best option would be to concentrate the restaurants in one area and allow space for a new section, dedicated exclusively to fashion.
A.R.: With the closure of the Castello-Lopes cinemas, do you believe the new shops are an extra incentive to visit AlgarveShopping?
C.M. We believe the creation of this new section, which includes the largest shops by both H&M (2,250sqm) and C&A (1,400sqm) in the region, is extremely appealing, in line with current market trends and client demand for novelty and quality. This is certainly an extra reason to visit AlgarveShopping.
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A.R.: What are the centre’s plans for the space previously occupied by the Castello-Lopes cinemas? Although going to the movies can be expensive, particularly for families, do you believe this is an area that is lacking in the shopping centre at the moment?
C.M.: We are delighted to have received many proposals from film distribution companies with a capacity to successfully manage a cinema hall, willing to take over the space left empty by Castello-Lopes. We hope to soon be in a position to communicate the outcome of our decision.
The leisure component is always important in any shopping centre and for this reason we are working to reinforce this.
A.R.: A while ago we received comments from readers about the poor service and hygiene standards in the cinema hall and its toilets. Can the shopping centre administration interfere in cases where poor service is experienced in its shops?
C.M.: When we become aware of such situations, we seek to remind the shop management that quality service and maximum comfort to clients must be provided. However, the centre cannot be responsible for situations resulting from the shop’s own operation.
A.R.: What should clients do if they have a complaint relating to poor customer service at one of the stores?
C.M.: Customers should complain directly to the store in question and use mechanisms available to them to report complaints. If customers wish to express their dissatisfaction to the shopping centre, they can do so by going to the administration’s reception area or approach a security staff member should the reception be closed. Alternatively, they can send a letter or email of complaint to the administration. All complaints are investigated and replied to.
A.R.: What is the quality control strategy at AlgarveShopping?
C.M.: All services that are the responsibility of the shopping centre, such as cleaning, maintenance and security of the communal areas, are overseen by our management team with a view to providing the best possible service and maximum comfort for visitors. With regards to the service provided by the shops, the management team keeps a close watch on their operation on a day-to-day basis to ensure all the regulations imposed by the centre are being complied with and quality standards are being respected.
The quality of service provided by the stores is their responsibility but they are expected to commit to exceptional customer service to guarantee total satisfaction.
A.R.: Have you noticed a slowdown in visitor numbers since the cinemas closed?
C.M.: We have no data that indicates this. AlgarveShopping, as all businesses in the Algarve, feels the effects of seasonality. It is normal to experience a slowdown in visitor numbers in winter, which last year actually coincided with the closure of the cinemas.
A.R.: Has AlgarveShopping been affected by the economic crisis? Have you noticed that consumer spending has reduced?
C.M.: There has been a consumption slowdown, which has been felt in the retail sector in general across the Algarve due to the current economic climate. Even so, the shopping centre has been able to maintain a good commercial performance and we are happy with our levels of shop occupation and client satisfaction, and the high standards of quality that we have managed to maintain. We continue to place our bets on variety and quality, on our leisure facilities and services, always providing comfort and convenience to our clients. Good examples of this are the new Clínica Privada do Algarve and Veterinary Centre, both offering top quality services at extended opening hours.
A.R.: Have store rental prices been reduced to attract new investment?
C.M.: AlgarveShopping has a well-defined commercial strategy to attract new shops to the centre while maintaining a quality product that is in line with the centre’s profile and needs of our visitors. Store rental prices are influenced by many factors and are analysed on an individual basis.
A.R.: What investment plans are in place to turn AlgarveShopping into the shopping centre of choice for the region’s population?
C.M.: The recent €4.5 million investment to expand and refurbish the centre has allowed for the introduction of important fashion brands. These are examples of how we intend to turn AlgarveShopping into the shopping and leisure facility of choice in the region. It is our objective to continue to invest in diversity and quality as far as stores, services and leisure are concerned.
A.R.: In 2012, AlgarveShopping received around 6.5 million visitors. Do you expect a higher number this year?
C.M.: We believe visitor numbers will remain the same. It’s impossible to know the impact the current economic context will have.
