2003 MAXI Awards

Winners

CENTER PRODUCTIVITY
400,001-750,000 square feet

INCREASING SUCCESS WITH
REMERCHANDISING, REPOSITIONING
AND SITE INTENSIFICATION
Shopping Nova America
Rio de Janeiro, Brazil

In 2000 Nova America Outlet Shopping was six years old. It was the strongest manufacturers’ outlet center in Latin America, operating in a historic, architecturally distinctive building. The public liked this “value” center. It enjoyed growing demand, increased traffic thanks to new highways, a connected subway station and a 4,000-student university campus right on the property.

But in 1999 Nova America Outlet Shopping’s management decided they had to transcend the outlet concept and become a dominant, differentiated regional center. They also wanted to increase loyalty among the upscale shoppers in the primary and secondary markets, less than 20 minutes away by car.

This required a physical expansion, remerchandising and a new image.

IMPLEMENTATION

Nova America Outlet Shopping had gross leasable area (GLA) of about 230,000 square feet, surrounded by an additional 870,000 square feet of buildings and facilities. It included 144 stores, five movie theaters, food court seating for 600 people, a small amusement park and parking for 1,800 cars.

The overhaul began in April 2002. The center changed its name to Shopping Nova America to reflect a breadth beyond outlet stores. Management kept about 10 percent of the outlet tenants, but otherwise sought to position this as a “unique center where customers find everything they need and desire.” The remerchandising effort includes chain stores, banks, lottery shops and postal services. The expansion involved offices and more space for the university on the upper level of the building. A medical center is under construction.

The expansion increased GLA from about 291,000 square feet to about 441,000 square feet. The center nearly doubled the number of food court seats by expanding the first-floor food court and adding another on the second floor. The addition also increased parking spaces from 1,800 to 3,000.

The center converted the amusement park into a restaurant area, Rua do Rio (Rio Street). It appeals to the center’s predominantly young customers and lends the project an image of an urban district rather than just another mall.

RESULTS

The shops’ sales in 2002 grew 38 percent over the previous year; overall project sales grew 36 percent. Income generated by exhibits increased 225 percent after April 2002. More than 150 office units were sold.

The number of upscale shoppers increased 20 percent from 2001 to 2002. Sixty percent of customers shop there at least weekly, and 60 percent prefer this center to its competitors.

Today Shopping Nova America is highly profitable and known as an integrated location for services, dining and leisure.

Marcelo Carvalho

EXPENSES
$11.3 million

CREDIT
Owned/managed by: Ancar Gestão Integrada de Shopping Centers Professional recognition to: Marcelo Carvalho, lease director; Evandro Ferrer, general manager; Silvia Barros, marketing manager; Carlos Martins, lease manager; Rafael Lanzadera, operational manager.