Shopping Centers Today International

DEC 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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attractive, affordable retailer," said Mario Zurita Parker, Mal del Sol's general manager. To make further inroads in the market, Ribeiro da Silva notes, Zippy is bet- ting on its "clearly distinc- tive" product lines for the younger children ó which, besides clothing, include child care items such as p a c i f i e r s , b a b y b o t t l e s , breast-feeding pumps, dia- per changers, toilet-training seats and more. "Our offer combines quality designs at very attractive prices, avail- able in welcoming shops that focus on the shopping experience," she said. Zip- py's stores in Portugal and Spain are company-owned. But to stoke global growth, the com- pany uses various models ó mainly partnerships, franchising agreements and product distribution, she says. The product line is mainly its own private label ó called, fittingly enough, Zippy ó though the stores do carry other brands in that child care line. Zippy declined to disclose its annual sales, but parent firm Sonae SR reported some €1.3 billion in sales last year, up 6.6 percent from 2013. Since 2009, the year in which the international ex- pansion of Sonae SR began, annual revenues from outside Portugal have increased by more than 10-fold, from €30 million to €359 million, according to the company. "Over half of Zippy's revenues come from abroad," said Ri- beiro da Silva. (Sonae SR's other retail chains are apparel chain MO, sports ap- parel and equipment seller Sport Zone, consumer-electronics chain Worten and phone provider Worten Mobile.) The expansion of Zippy into Latin America comes at a time of great com- petition between malls, each of which is seeking unique tenants. Niche retailers that concentrate on one category or age group are especially in demand. "There has been increased activity and interest from aspirational brands, especially in the more mature markets, where con- sumers have been exposed to mass-mar- ket brands longer ó be it fashion, food and beverage, or home decor," said retail consultant Franco Calderón, president of Irving, Texas–based Latin American Retail Connection. "There is a new class of consumers with increasingly sophisti- cated tastes and preferences. In the past these consumers were happy with their cheap imported fast fashion, unhealthy fast food and inexpensive home items, but today they want better." Children's apparel in Latin America presents op- portunities for global brands because there is no single chain that dominates the sector, he says. Apparel for children in the newborn- to-age-14 range generated some $15.9 billion in sales in Latin America last year, up by 50 percent from 2009, ac- cording to Euromonitor International. Projections say that could hit about $18 billion by 2019. This makes Zippy very attractive to Phoenix World Trade. "One of the brand's attractions is that the number of units per model is lim- ited," said Erdwing Nieto, Zippy's re- gional brand manager at Phoenix. "This creates a sensation of exclusivity among our shoppers." S C T The expansion of Zippy into Latin America comes at a time of great competition between malls, each of which is seeking unique tenants. 54 S C T / D e c e m b e r 2 0 1 5 r e T a i l i n g T o d a y

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