Situation

The retail industry is changing at a breakneck speed. This is not only putting retailers under pressure, but real estate developers as well. Creating a more defined USP so brands and retailers can deliver immersive experiences and digital services, is becoming essential. Our client, Aldar Properties, the leading retail developer and operator in Abu Dhabi with $10B USD in assets wants to create the most immersive retail development in the World. Aldar is well versed in developing iconic projects such as Yas Island’s F1 circuit and Yas Mall, which have cemented its reputation for developing and operating world-class assets. It’s newest development, The Grove on Saadiyat Island in Abu Dhabi, will be a cultural lifestyle district with 3,700 residential units, 500+ keys, and new co-working concepts, all surrounded by the iconic landmarks - the Louvre Abu Dhabi and Guggenheim Abu Dhabi. Aldar’s retail ambitions for the Grove includes 150+ units encompassing over 54,000 sqm, divided into three distinct retail districts, Luxury, Urban Lifestyle and Entertainment.

To create the most immersive retail development and deliver on Aldar’s overall vision of delivering desirable destinations would require a new way of selecting potential lease tenants. What retailers and brands would be suited for The Grove and be able to drive interest through their innovative products and services? Which could leverage their global brand and localize it to the cultural patternof Abu Dhabi? The Grove will not be a place for flagships, but unique and experimental outposts of the most innovative brands. MCL was appointed to help with this challenge statement: develop a collaboration and partnership strategy, including in-person meetings and discussions, partner selection criteria, engagement planning and a roadmap for future leasing for The Grove.

Solution

The first phase of our work with Aldar Properties utilized MCL’s deep expertise in the category of Future of Retail to help their development and investment departments understand which brands would be well suited for The Grove. We created a custom 80+ retailer ‘wish list’ detailing potential retailer’s store footprints, expansion strategy, and assessment guidelines for each. The selection of relevant retailers had to express the ‘ethos’ of The Grove (e.g. Nike by Melrose versus a typical Nike Flagship). We then developed a collaboration strategy to be used with each individual retailer on the ‘wish list’. The next phase was a coordinated series of meetings, discussions and work sessions in New York and Los Angeles with senior leadership from notable and innovative retailers to discuss collaborations, partnerships and leasing opportunities at The Grove. During our time in New York and Los Angeles we developed narrative-driven sessions between Aldars’s Head of Retail, Head of Investment and the leadership of our selected retailers. We met with senior leadership from Everlane, Beats by Dre, Parachute, Fred Segal, Dover Street Market, Nike, b8ta, Soho House, Eataly, Showfields, Tokyo Bike, Next Health, Goop, Nordstroms, Kith, Momofuku, and more. It was through these sessions that Aldar was able to obtain a larger grasp on how these innovative retailers could deliver on their objectives for The Grove and also understand the new trends in retail as a whole.

Result

Aldar Properties is now in on-going discussions and negotiations with 15 innovative retailers to lease at The Grove. We are concurrently working closely with retailers like Beats by Dre, Nike and others to further develop collaboration opportunities and innovative retail concept territories for the location. Through our efforts, Aldar’s Head of Retail and Head of Investment have been able to reassess their overall leasing, retail and investment strategy for The Grove and beyond.

10

Lease potentials to be executed by Q4 2020.

30

Discussions with decision makers from relevant retailers

3

Collaborations with a development framework in progress

Design your Future Retail Journey

Contact Us