Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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The Azerbaijan capital of Baku may not be among the world's hottest cities for retail expansion, but oil-rich Azerbaijan, on the Caspian Sea, just north of Iran, happens to be emerging as a top luxury-shopping destination. Long before it agreed to play host to this summer's European Games, this former Soviet republic was regarded as the world's second- fastest-growing economy in GDP terms, between 2000 and 2010, according to The Economist. Azerbaijan's GDP soared from $7 billion to $63 billion over that period. Further, over the past five years, the number of affluent people in this country of 9 million has quadrupled, according to published reports. Never mind crystal tea sets, silk scarves, Azerbaijani rugs — the swag that 10 members of the U.S. Congress and their staffers brought back home two years ago from a conference the state-owned oil company sponsored to promote a pipeline to Iran — this place is chock-full of Armani, Burberry and Dior. In March, U.K. luxury fashion retailer Harvey Nichols announced that it would open a seven-floor store in Baku that would offer some 500 international brands, among other features. "This market is fast becom- ing one of the top luxury retail destinations in the world," said Harvey Nichols Group Chief Executive Stacey Cartwright. "And we are excited to offer the ultimate in luxury shopping and hospitality to the discerning customer in Baku." The city already boasts an unusual ur- ban skyline, thanks to Azinko Development's Baku Flame Towers, which features three gleaming, triangular, slightly curving towers, each some 30 stories high. The structures are supposed to be reminiscent of the region's fire-worshiping ancient past, accord- ing to its architect, HOK. In fact, they almost resemble exotic lipsticks, especially at night, when they are colorfully lit, thanks to some 10,000 LED lights. The 2.5 million-square- foot complex consists of apartments, offices and hotels, as well as a three-level podium of boutiques, restaurants and a cinema. "There are three standout retail loca- tions in Baku, each of which fulfills a distinct need and targets a specific consumer base," said Andrew Phipps, CBRE's execu- tive director for Europe, Middle East and Africa research. "Emporium, a three-story Japanese-designed store, offers contemporary brands: Acne, Balenciaga, Balmain and a brand list to challenge any premium store around the world. The Port Baku Mall features luxury brands: Alexander McQueen, Jimmy Choo, Burberry, Chloe, DVF, Givenchy; and premium food- and-beverage offerings: Armani Café, Laduree and Dalloyau. The Fountains Square, a central loca- tion in Baku, has premium stores and upscale eateries." Located next to Baku's Bentley dealership, the Emporium was designed by Tokyo-based Garde and developed by Sinteks MMC, an Azerbaijani company. Port Baku Mall, which is on Neftchilar Avenue, regarded as the city's premier location, was developed by Baku-based Pasha Group and designed by British architecture firm Broadway Ma- layan. Fountains Square, a large esplanade that gets its name from its dozens of public fountains dating back to the Soviet era, claims Baku's first McDonald's as well as such stores as Zara and Aldo. Running Azerbaijan has been a family affair for decades. President Ilham Aliyev, reelected in 2013 to his third five-year term, first came to office in 2003, succeeding his father, Heydar, who had wielded power for some two decades, beginning as the com- munist party boss and then becoming the country's first post-Soviet president. Visitors flying to Baku land at the Heydar Aliyev In- ternational Airport. Outside interest in Azer- baijan has increased significantly, as the 435,000 tourists the country saw in 2002 grew into the 2 million that visited in 2013. "Baku is going to be one of the growth markets for next year," Phipps said, "and beyond." — Spencer Rumsey J U L y 2 0 1 5 / S C T 53 O N T H E G R O U N D : B A k U, A z E R B A i j A N An oil boom fuels a retail gusher in a former Soviet republic Outside interest in Azerbaijan is growing quickly. In 2013, 2 million tourists visited, up from 435,000 in 2002.