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The last quarter of 2010 gave us a bag of mixed results, with some great individual store results and further progress being achieved on the Leasing front, together with some disappointing trading results against last year, although this was not entirely unexpected as we were up against the momentum of the opening of the centre at the end of November 2009, when the centre was in the “honeymoon period”

From November it had been expected that we would see some benefit from the start of the Ski season but in a twist of fate it was the snow that kept the tourists away, due to unprecedented levels of snow throughout western Europe,

many airports were shut and numerous countries were effected by disruptions to their transport infrastructure. Added to this factor we have seen the strength of the Swiss Franc continue to strengthen resulting in it becoming increasingly expensive for European tourists to spend their vacation in Switzerland. As such, some of these factors impacted on sales and footfall performance. Quarter 4 was the second busiest quarter of the year for footfall, behind quarter 1 (January to March), despite this, the people who visited the centre during this time were here for one reason and that was to shop!! This was certainly reflected in the sales achieved with the turnover performance recorded over this

quarter and achieving a staggering 95% conversion rate in sales and a spend per head up from the average throughout the year of 31.5€ to 37€ per head spent during quarter 4. The busiest single trading month of the year was recorded in October as a result of the Autumn school break. During November Alpenrhein Village celebrated it’s first Birthday with entertainment, promotions and a Swiss style market. This event also signaled the start of the Christmas trading campaign.

A season of mixed fortunes!but a great start to 2011...By Claudio Poltera - Retail Operations Director

WHAT’S INSTORE

In this first edition of the quarterly newsletter, reflecting on trading over the last quarter and look forward to what’s in store for the coming season

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95%Conversion

in sales

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LVE BargainsValentines promotionsPERIOD - 1st - 14th

Over the last few years Valentines Day has become bigger and bigger, this year we’ve raised the bar a bit higher by offering our customers a great Valentines bundle with competitions to win a trip to Venice for one lucky couple and opportunities to win a candle lit dinner and the luxury of some treatment at a Spa centre. Not satisfied with this we created POS material for stores to highlight their best Valentines offers.

The event was promoted through radio, press and on the web.

CarnivalWindow dressing competitionPERIOD - 15th - 28th

Following the Valentines event we went straight into our next promotional event, as we approach the end of the Swiss carnival season and some of the biggest carnivals in the surrounding towns are due to take place, to link in with the Carnival atmosphere we created the Alpenrhein Carnival Event, with a window dressing competition to win 500 CHF for the store with the best Carnival window, bunting decorating the centre and stores supported with carnival POS highlighting the best carnival offers from each shop within the centre.

Ski World CupPromotionsPERIOD - 5th - 20th March

The World Ski Championships are being held between the 16th and 20th March in Lenzerheide (20 minutes from AVOS). In order to link in with this event, expected to attract 45,000 spectators, AVOS will be running competitions to win executive tickets to the World Championships as well as a number of free ski passes, on the lead up to the event.

AVOS are also the main sponsors of the shuttle buses to and from the event. Onsite we are looking to promote additional offers from the outdoor retailers.

We will be supporting this event with voucher discount books, on radio and through press and web advertising.

Launch of SpringPERIOD - 21st - 27th March

With all the new Spring fashions hitting the stores throughout March AVOS will run a “Spring Spend & Save” promotion.

The event has a two fold objective. It is designed to encourage shoppers to increase their average spend and also to return to shop in the following month.

The promotion works by customers being incentivised to increase their spend by being rewarded with a 10 CHF centre gift voucher for every 100 CHF spent, these vouchers can then be redeemed throughout April, thereby encouraging repeat visits to the centre.

Quarter 1 Events

ValentinesCarnivalSki World CupLaunch of Spring

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As Alpenrhein Village becomes better established in the consumers minds we are conscious that we need to employ as many communications platforms as possible to tell our customers what’s new and what’s happening within the centre, giving them more reasons to keep coming back...With this in mind we have launched the Alpenrhein Village VIP Club, this is a data base of our customers e-mail addresses, which enables us to talk straight to our customers on an individual level, talking to consumers who have asked to be kept in the picture with what is happening at the centre.

It’s clear that the larger our customer data capture is the greater our ability to reach more of our customers on a more frequent basis and keep them updated with the new openings, events, special promotions and exclusive extra discounts available throughout the centre, thereby developing a greater ability to influence repeat visits.

Throughout 2011 it is our intention to run a number of initiatives to collect as many of our customers e-mail addresses as possible, this started in January with the e-capture prize draw.

We have asked every store in the centre to help us with this, by asking your teams to invite customers into the store if they would like to sign up to the VIP Club when they are completing their transactions at the till. We are hoping that very soon we will have an influential new medium in which to communicate not only updates within the centre from Leasing updates to promotional events but also this can help support your store communicate some of its unmissable offers and drive sales directly into your tills.

In order to give this some momentum we are offering customers who sign up to the VIP Club the opportunity of winning an iPad by being entered into a free prize draw... Added to this your teams are also in with the chance of the store winning 500 CHF for the team that gets the highest number of sign ups to ratio of transactions.

“In my experience VIP Clubs are a tremendous way of engaging our customers and directly influencing them to not only visit our stores but also increase the spend per head”

Bill Godwin - GVA Retail Consultant

Alpenrheins VIP ClubNew year, new opportunities

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Right Image of the header card used to promote the VIP Sign up competition. This is due to be replaced in early March with new creative.

WHAT’S THIS?

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From February we have commissioned Mystery shoppers to evaluate our customers experiences throughout the centre, with every store having 6 visits during the year.

The criteria for the shopper reviews is based on the 25 questions below.

When each round of reporting is complete, these reports will be sent to every store manager and to the head office tenant principal.

If you would like to discuss the results from any of the shopper reports we are always happy to discuss this with you.

Alpenrhein Shopper Review ReportsEvaluating our customers shopping experiences

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1. Open door policy adhered to

2. Offers presented in the window with clear dual pricing

3. Mission statement clearly displayed

4. Windows and window beds clean and tidy

5. Ticketing neat, straight and professionally presented

6. Shop area clean, lights in working order and stock neatly presented

7. Store ambience adequate (lighting, heating, music, odor)

8. Easy to identify key product groups

9. All stock clearly dual priced

10. Product presentation and quantity of stock appropriate

11. Clear signage within the store for offers, pricing and fitting rooms

12. Acknowledged within 30 seconds of entering the store (verbal or eye contact)

13. After giving out buying signs did the sales adviser approach shortly after

14. The sales adviser smiled and looked smart in appearance, showing good eye contact

15. The sales advisor was interested and asked questions to identify needs

16. Did the sales advisor hand the product to the customer/invite to try

17. Advisor appeared confident and had good product knowledge

18. Add on sales or alternative products were introduced by the sales advisor

19. Did the sales advisor ask “Is there anything else you need today?”

20. Sales advisor was attentive and showed where the fitting rooms or products were located

21. Did the advisor offer a positive comment

22. On leaving did the advisor offer you a polite goodbye

23. Overall how would you describe the advisors attitude

24. How would you describe the overall impression of the store

25. Would you shop in this store again or recommend it to your friends

WHO’S INSTORE?

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Romeo Gigli

Romeo Gigli initially studied architecture at university but little by little moved his sights to fashion, more out of passion than decision, he moved closer to the design of fabrics and colours. In 1979 he settled in New York where he worked at Dimitri’s Atelier, this is where he learnt the technical secrets of fashion and by 1986 his designs had become a world wide phenomenon.We are delighted to now welcome one of the worlds most influential designer brands to Alpenrhein Village.

Pull LovePull Love jumpers are a wardrobe essential. Made in Italy from 100% extra-fine merino wool, they represent great quality at a great price.

The jumpers come in 7 sizes ranging from XS to XXXL, and are available in 24 different colours including bright Spring/Summer shades in lemon and orange to Autumn/Winter shades in black and dark purple and everything in between.

We think this is a good concept that will do very well in the centre.

WHO’S NEW?MBT (Masai Barefoot Technology)At MBT it is their philosophy to keep

the body in motion. They believe motion is key to helping find and maintain

the right balance in life. At MBT, they achieve this through their unique shoe design that combines a perfect balance of function with style.MBT (Masai Barefoot Technology) was born in 1996 when it was discovered that natural instability can have positive effects on the human body. This discovery was made by observing the wonderfully agile Masai people walking barefoot on natural, uneven ground. Seeing these people in action made them realise that the human body is simply not designed to walk or stand on the hard, flat surfaces of modern society. So they set out to develop a new kind of footwear, one that would mimic walking on soft, uneven ground. The results have been dramatic and revolutionary. MBTs are now sold in more than 55 countries around the world and we are delighted to welcome them to Alpenrhein Village.

West ScoutWest Scout uses the latest technology, and direct control for every stage of its production, these combine with a high level of creativity to ensure a product that's constantly evolving with the times and is capable of responding to the

changing demands of its market. After establishing itself in the Italian market, West Scout is now looking to new horizons in its attempts to enter the global market. West Scout is now present in 15 countries (Italy, Germany, UK, Switzerland, Austria, Benelux, Spain, San Marino, Czech Republic, Poland, Russia, Ukraine, China, Turkey and Lebanon)

ArfangoThe Arfango brand dates back to 1902, and is named after “L’Harfang Des Neiges”, an elegant, majestic, white owl. Considered a symbol of good luck, the Arfango owl is used as a recurring motif, decorating embroidery, buckles and accessories.

In just a short time, Arfango has become a world wide brand known for its skilled workmanship of shoes and accessories, using the finest leathers based on the use of aromas, waxes, and essences; using methods, that date back to Florentine crafts of the 1400s.

Arfango manufactures men and women’s footwear and accessories and through its new store in Alpenrhein Village, also sells mens and women's clothing.

We are delighted to have welcomed some great new stores to Alpenrhein over the past few months

MBTWestscoutArfangoPull LoveRomeo Gigli

above: Innovative creation from the Romeo Gigli 2008 collection.

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