Crisis brings need for shift in retail mall strategy, says Sonae Sierra's Portela

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. Long-time CEO Alvaro Portela told 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 and in Portugal reduced operating hours. "We are trying to be prepared for the comeback," Portela said. "We are not taking any hasty decisions.. and we are not laying off our people, they are too precious to us... 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. Then, we were excited, looking at new markets to expand into; today we are in standby mode." Portela is the key personality in the build-up of Sonae over the last 20 years. His decision to step down next March ends an era for the group.