The first physical store in Europe for AliExpress has opened at the Madrid shopping centre, intu Xanadú.
The store, a collaboration between AliExpress and D.Phone and opened on 25 August.
AliExpress is a global retail online marketplace under the Alibaba Group and D.Phone is a major Chinese retailer of mobile phones and accessories. D.Phone serves as a strategic partner in operating the store and assisting AliExpress with commercial innovation.
intu Xanadú, which is a joint venture between intu and Nuveen Real Estate, one of the largest investment managers in the world, has an annual footfall of 13 million visitors.
Combining physical and online retailing, visitors to the AliExpress store can shop a vast range of technology and electronics products, including small appliances, household items and wearables.
Matthew Roberts, intu chief executive said of the opening: “The fact that one of the biggest retail platforms in the world has chosen intu for its first physical presence in Europe is testament to the desirability of our winning destinations. This is the latest development in a growing trend where online retailers are taking physical space in high footfall destinations to improve their connection with customers.
“The new store complements the very best retail mix already available at intu Xanadú, alongside best-in-class leisure offerings such as Atlantys Aquarium, Nickelodeon Adventure, and the only indoor ski slope in Spain, ensuring that we are able to give our visitors the perfect day out experience.”
Marta Cladera de Codina, Managing Director Nuveen Real Estate Iberia, said: “Having a cutting-edge operator like AliExpress is a real success story for intu Xanadú. This announcement will see us take another step forward in delivering a comprehensive retail offering to intu Xanadú visitors, making for an increasingly pleasant shopping experience and visit.”
RPA Perspective Alibaba has become the latest tech online giant to open a store in Europe and yet this opening in Madrid seems to have gone relatively under the wire.
Instead, the big noise has been about Microsoft’s London opening in July. Situated in the epicentre of London shopping, Oxford Circus, the store is bristling with the kind of details in which modern shoppers are interested.
There’s a gaming lounge, where Microsoft is preparing to host whole video-game tournaments, the Surface Design Lab, the Windows Mixed Reality area, where users can try out wearable AR devices, a community theatre — a classroom-style area for hosting workshops and training events — and even a McLaren Senna supercar, powered by an Xbox One X for a simulated F1 driving experience. As senior store manager John Carter said just before the new shop opened: “This is more than a store — it's a destination, right in the heart of London.”
The sheer scale of investment that Microsoft was willing to make into the property is a huge vote of confidence in the power of the physical store, backing up research published in July by market intelligence firm CACI into the ecommerce ‘halo effect’, which revealed a 106% uptick in online sales in the area surrounding a bricks-and-mortar shop.
Yet Alibaba’s first small move into Europe is equally significant. A test concept, the store opens up the online market to a new consumer base and Spanish consumers, who have been less quick to pick up on online buying.
