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December 2nd, 2008
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10 Questions

with Tal Ben-Yahuda
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By František Bouc
Staff Writer, The Prague Post
December 6th, 2006 issue

Predicting more shopping malls to come to Prague, Tal Ben-Yehuda, sees holiday sales as a benefit of the season.

This time of year brings the seasonal swell of shoppers looking for the lowest prices for gifts. Tal Ben-Yehuda, managing director of shopping mall chain Plaza Centers Czech and Slovak Republics talks to The Prague Post about whether there's room for more shopping centers in the Czech Republic, the report that Czechs are the worst shoplifters in Europe and the plight of mall workers who listen to Christmas carols every day for an entire month.

How do you respond to criticism that shoppers ruin the peaceful holiday atmosphere by making gift buying the focal point of activities?

Modern life and democracy are about choice. Christmas shopping was going on well before the concept of modern shopping centers was around. In my view, being able to get your pre-holiday shopping done in a well-decorated, nicely laid-out shopping center is a far more relaxing and fun experience than traipsing around snow-covered streets in the freezing cold.

Don't you think it is ironic that it is in fact shopping centers and retailers who start the holiday shopping craze by launching sales?

I am certain that most people welcome these discounts, particularly at a time of year that is typically associated with overspending. Holiday sales have ultimately grown into a yearly tradition, one that is fundamental to the holiday atmosphere and at the same time beneficial to both consumers and retailers alike. Can you imagine what would happen if retailers decided to cancel holiday sales this year?

Tal Ben-Yahuda
  • Job title: Managing director, Plaza Centers Czech Republic and Slovakia
  • Age: 38
  • Nationality: Israeli
  • Education: Master's degree in
  • business management, bachelor's degree in industrial engineering
  • Family: Married with 7-year-old twins "" a boy and a girl

When looking at crowded stores, do you think there is room for more shopping centers in Prague?

There is no major mystery here: If shops are crowded, then it's a clear sign that more shopping space is required. I have absolutely no doubt that more shopping centers will be built in Prague in the near future. Just take a tram through náměstí­ Republiky, for instance.

Is there a market for large shopping centers outside of Prague or Brno?

Plaza Centers is currently building shopping centers in Plzeň, Liberec and Opava, so the answer is: absolutely. We are consistently looking for new investments. Our strategy is to focus on cities with more than 50,000 inhabitants. The intention is to source attractive locations in city centers and to bring not only new shopping opportunities but also entertainment to its residents. We are delighted that our shopping and entertainment centers concept is successfully appealing to major cities throughout the Czech Republic.

Could the recent consolidation in the grocery-store market limit future expansion of shopping centers, given that supermarkets are traditionally among the biggest tenants?

Market consolidation is a natural economic process. Hypermarkets were the driving force for the first generation of shopping centers, located mostly outside the cities. The hypermarket is the large anchor tenant which draws people in. The next-generation shopping center is located in the city center, and the accompanying supermarket is usually small. In this case, the supermarket is not a critical component that would limit the development of shopping centers.

The recently announced departure of Delvita sparked debate about whether people would return to butchers, bakeries and so on. Do you think that small, specialized shops could become competition for shopping centers?

I am sure that small, specialized shops could become an alternative to supermarkets in terms of bakeries, wine, fruit, vegetables, meat and fish. However, such shops will offer better quality and higher prices, and will never really be able to compete in price with the purchasing power of the supermarkets. The fact that Delvita stepped out of the supermarket market — and Carrefour out of the hypermarket market — is not a sign that the supermarket expansion is over. It will continue for some additional years.

If anything, crowded shopping centers certainly provide a comfortable environment for shoplifters. Does it surprise you that the Czech Republic tops the list, according to the British Center for Retail Research? Why do you think this is?

I am surprised by this; however, I am not sure it is correct.

Shop assistants in years past have complained about having to listen to the same Christmas carols repeatedly. Do you find such complaints legitimate?

This is an operational issue that needs to be addressed between shop owners and the center management. I do not think that there is or should be a rule on this issue. After all, there are many different methods of management, and I think this diversity lends itself nicely to an interesting and unique shopping experience.

What is your approach toward holiday shopping in general? Can you resist the aggressive marketing campaigns?

Since I do not speak Czech, I am not so exposed to the marketing campaigns here. However, it is always a pleasure to feel and experience the extra effort companies put into their "appearance" at this time of year. As I once heard the holiday season described: "The streets sparkle, the sounds a-tinkle, and the air is awash with a pregnant expectation."

Is there anything that you'd like to have but are never going to buy?

Money cannot buy the things I would like to have.

František Bouc can be reached at fbouc@praguepost.com


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