Cushman & Wakefield brings TK Maxx to the Netherlands
The international off-price multi-brand retailer TK Maxx expands rapidly throughout Europe. For it´s expansion TK Maxx regularly consults the Cross Border Retail team of Cushman & Wakefield for advice. Mid 2014, the Netherlands came up as a target for TK Maxx for a next possible country entry. Typically once a retailer sets their eye on a new country, Cushman & Wakefield´s Cross Border Team brings the retailer in contact with the country it is interested in. As such first contact between TK Maxx and the Dutch retail specialists of Cushman & Wakefield was established to see how we could advise and guide them with their expansion. The retail concept of TK Maxx requires large stores, of approx. 1,800 sqm to 3,500 sqm, in the centre of large shopping cities or in out of town locations - a scarce product in the Dutch retail market as the Netherlands doesn’t have the same type of out of town schemes that TK Maxx is used to, and this size of store is rarely immediately available in the inner cities. TK Maxx has identified that it could open approximately 20 to 25 stores in the Netherlands.
The retail advisors of Cushman & Wakefield, through their exquisite market knowledge and strong relationships with real estate owners, have been appointed exclusively by TK Maxx to help them with their expansion in the Netherlands. Cushman & Wakefield designed together with TK Maxx an expansion strategy for the Dutch market. The strategy involved, amongst other things, identifying which cities are suitable for a TK Maxx and more importantly which locations within those cities TK Maxx should target. The ambition of TK Maxx was to open its first stores in 2015 and 20 to 25 stores in the years to come. The challenge was/is to find stores that are large enough for the concept of TK Maxx.
We immediately identified that there are only a few possibilities for TK Maxx to have a store in out of town locations. TK Maxx is very successful in out of town locations however; the Dutch market is very different from most other countries. The zoning plans in the Netherlands do not allow fashion retailers to open stores in out of town locations and as such, the primary focus for new stores was/will be in the inner cities. The inner cities have their own challenges to find suitable locations, the required floor area of approx. 1,800 sqm to 3,500 sqm often does not exist, or are already occupied by the established retailers such as H&M, Zara etc. Therefore, in order to meet the ambitious expansion target of TK Maxx, pro- activity and creativity are essential characteristics. Stores with this surfaces can usually only be created by combining multiple stores or by redevelopment/expansion of (parts of) shopping centres.
In 2015 TK Maxx opened the first two stores and a third store will open in the Netherlands in the first quarter of 2016:
- In shopping centre Heuvel in Eindhoven a store is realized of approx. 2,300 sqm. This store was created by redeveloping a part of the shopping centre.
- In Rotterdam a store is created of approx. 2,370 sqm as part of the redevelopment of the Linea Nova building at Binnenwegplein.
- In Groningen a large outdated store is completely redeveloped and made suitable for the retail concept of TK Maxx. This will be the biggest store up to now in the Netherlands with a floor area over 3,500 sqm.
The listed off-price multi-brand retailer TK Maxx is exclusively assisted by Cushman & Wakefield for new stores in France and the Netherlands.