Online retail doesn't compete with malls, says Vienna center chief

Fabian Kaufmann, CEO of CC Real, asserts that online retail does not pose a threat to physical shopping centers, attributing this to the "human factor" and the social aspect of shopping. He views "click and collect" not as a shift away from in-store purchasing but as an integration of channels, where customers often buy additional items when picking up online orders. Kaufmann emphasizes that this integration benefits both customers and retailers.

Kaufmann explained that the rise of e-commerce has forced shopping centers and retailers to adapt. Modern centers are evolving from "pure consumer temples" into places offering everyday conveniences. His strategy focuses on creating spaces with daily relevance to encourage repeat visits. By offering essential services like groceries, pharmacies, dry cleaning, dining, and leisure activities, these centers remain attractive even with the prevalence of online shopping.

Both "The Mall" in Vienna Mitte and "Millennium City" are integrated into their neighborhoods, serving as local providers with good transport links. "The Mall" complements the local shopping street, while "Millennium City" offers a mix of doctors, a cinema, and dining options, serving as a unique local hub. Kaufmann prioritizes the overall economic viability of the center over the individual profitability of each tenant, citing the example of a dry cleaner, which may pay less rent but drives foot traffic.

CC Real has adjusted its tenant mix, reducing fashion retail space to accommodate more local services, dining, and leisure. This strategic shift allows shopping centers to avoid direct competition with large fashion-focused malls. Millennium City attracts approximately 13 million visitors annually, with significant foot traffic growth observed in the first half of 2026.