Crisis brings need for shift in retail mall strategy toward cost efficiency, tenants

The financial crisis has made one of Europe's largest shopping centre groups, the Lisbon-based Sonae Sierra, turn strategy toward operational efficiency and positioning to take advantage of any upswing. A lot of developments in Europe have been put on hold while it focuses on tenants and cash-flow, says its long-time CEO Alvaro Portela. He told PFE/PIE in an interview that Sonae, active in Portugal, Spain, Italy, Germany, Romania and Greece, as well as in Brazil, has cut its mall charges in Iberia by 7% to 9% this year alone. In Portugal, where there are no opening hour restrictions, it has reduced operating hours. "We are not taking any hasty decisions.. and we are not laying off our people, they are too precious to us," Portela said. "In 2007, we were at full speed trying to shift from fourth into fifth gear. Today we are shifting down, not up, with our foot on the break." Portela, who has built of Sonae over the last 20 years, is to step down next March, ending an era for the company.