Mario Garbarino: "In the shopping of the future, all needs can be met"

He is a public accountant, graduated from the University of the Republic, is 67 years old and is recognized for launching large projects such as Punta Carretas Shopping and the Sheraton Hotel.With the family study Garbarino Lombardo Management also the urban coast shopping, las stones and 11 hotels in the country.Recognizes that the regional situation and e-commerce impact sales, which since 2015 are stagnant, although it says that the business is "stable" and that shopping must give more services.He "worries" the hotel situation and warns that in Montevideo the offer "is saturated".He is married, he has three children and eight grandchildren, whom he enjoys at home every Friday without exception.

The family business arrives after inaugurating Punta Carretas, what triggered its creation?

The Garbarino Lombardo studio formed different from how traditional family businesses do.After receiving me from accountant I started working in the profession, but I always liked the commercial part.So, before forming the company, the possibility of developing the Shopping Punta Carretas, almost by chance, was looking for opportunities.I was a project developer and manager.Meanwhile, my children continued to grow and specialize.The family business was created once my son Paul received and made an MBA in the USA.UU.And my daughter specialized in finance.To that was added that my lady is an accountant.It became naturally to create the family business.At the same time, the opportunity of the urban coast shopping appeared and the other business areas emerged strongly.Thus, we finish management shopping centers, hotels and promote real estate developments.

Those are its large three business areas, which is the most important?

The main is shopping, between 70% and 75% of the total turnover.Punta Carretas, which next year is 25 years old, is the main business.As for investors, we represent several of Uruguay, an American investment fund and a Brazilian investor.In total, we have invested more than US $ 100 million in fixed assets.

The last major investment is the expansion of Punta Carretas Shopping, at what stage are the next inaugurations?

We expand 72.000 square meters between New Parking, the Renner store, the new album - the supermarket with the largest fresh market in the region -, the building that works synergy and has almost all the rented offices, and the Aloft Hotel.At the end of the month, Starbucks will open its store in the main square of the shoppingspace. H&M abrirá en el primer semestre del año que viene, con un local en el segundo y tercer nivel que será la flagship store de Uruguay, la más grande del país, con unos 5.000 square meters.Also in March next year the Spanish will arrive, with a 1 1.000 square meters con consultorios en el tercer nivel.

How does the omnichannel customer impact on sales?

Internet purchases are still low, between 3% and 4%, but shopping must be preparing.In the US.UU., the main market of shopping centers, there are many stores that were born online that now have their physical stores.The customer today looks at the dress or shoes online and then buys it in the store.Ideally, all that is connected and that when the client arrives, the store already knows what he is looking for and offers it.We are studying some of that now to give greater interaction.I think that shopping will not disappear, on the contrary, they are being built more because man is social by nature.There will be changes, for example, I did not think about medical offices, sports centers or spa.There must be a lot of experience, go more direct to the client.In the Shopping of the future the customer experience no longer passes through the shopping premises, but through a walk where one can solve all their needs.That is why the civic centers appear where procedures, office buildings, different food areas (we are preparing a gourmet walk that we are going to create on the first floor) and medical services are made.Because more and more customers have more purchase options, so you have to do that they attend the shopping.The consumption outside the shopping is still greater, but we have grown, the shopping centers are a center of attraction and we still have to grow.

It has manifested against the franchise regime for Internet purchases, what would be the alternative?

I do not intend to put all taxes, but at least they pay VAT, as in other countries such as Chile and Peru.Then they say that the merchant here is very expensive, and it is so because he must pay a lot of taxes.

Before the online sale, they created in conjunction with other shopping centers the Valeshopping proposal, which offers online discounts coupons to use in attached stores, how does it work?

It is a good initiative.Moreover, we start with the sale of coupons to create customers and now we are thinking of directing directly on online trade.

In the world there is a tendency to buy through discounts, does that influence the shopping business?

As in other parts of the world, in Uruguay the customer is getting used to buying with discounts, a way of purchase that came to stay.This generated an increase in sales and a decrease in profitability, but it is something that merchants already have it incorporated and plans with time.On discounts, businesses sell as normal days.

What do they take into account to select the brands that add to the shopping?

We permanently monitor sales and try to see which items have growth margin or which are saturated.In general, we prefer that they have experience in retail and present something new.If it is an international brand, we seek that it does not arrive as a franchise but directly, or that the relationship with the franchise is in the long term, but there are no perfect recipes.For example, when we just started with the shopping and consulted in the US.UU.Or Brazil, they told us that one cannot do one without four anchor stores of the power of Macy’s, Jcpenney, etc., but in Uruguay they did not exist.Then we create the supermarket anchor, something that does not exist in those other countries.Nopew we are looking for businesses that attract public and that are not necessarily sales.

During the reform, Disco "left" from the shopping, did that negatively impact the sales of the mall?

Naturally, having the separate album had an impact.We don't have it measured in figures, but it happened.Anyway, the shopping customer has been very faithful.In addition, from Nopevember the album will be integrated again to the shopping, it will return to normal.Currently, Punta Carretas visits about 1.2 million people per month and our aspiration, after the reforms finished, is to increase that figure to 1.5 million.65% comes from the area of influence, the rest is from other neighborhoods and tourists.The largest number of visitors who arrive in Uruguay goes to Punta Carretas Shopping because it is an interesting walk, architectural is attractive, in addition to the prison before.Moreover, the Intendance is building at the entrance a tourist attention post and the area has been dynamized with more restaurants and hotels of important brands.

Why have the historical vein of the building explode?

At the beginning we decided that not because the issue of jail was very close in time.But at some point you could get to give.

Has any other international renowned brand closer to landing in the country?

Nope.But they are not coming to the region either. Nopermalmente, estas tiendas van primero a otros países y luego desembarcan acá.In addition, big stores need many square meters and none of the shopping.Some of 300 or 500 square meters can arrive.

Does the tendency towards larger locals result in a lower diversity of the proposals in the shopping?

Nope, porque estamos ampliando espacios.The same thing is to have the best, because this business is the sum of all of us who are. En el caso de tiendas como H&M, creo que será una gran atracción para los argentinos y para muchos uruguayos que se ven tentados a comprar en otros países.

Another business is the hotelier, do you feel the effects of Argentina's exchange and economic situation?

From Sacramento, and at general, we are very worried.For example, in Colonia we came until March this year with exceptional figures, and in April it fell a lot, between 35% and 40% compared to the previous year.In addition, by lowering the occupation, prices lower and that made the profitability of the business fall.I see a complicated year, the business is not at risk because we were coming, but we are very worried.Because the loss of the rate does not make more people arrive, but the one who arrives pays less because Uruguay compared to Brazil and Argentina is cheap.In Fray Bentos and Mercedes, although we suffer the issue of agriculture that is not at its best, we are above the balance point, Almirón is recently open and has a great response from Uruguayans.We think it would be better among Argentines, but less come.Rivera is very good.

Does platforms like Airbnb affect that retraction?

I think they are trends that come to stay, but what should be done is to encourage equal competition.If the hotel must pay several taxes and have controls, I do not understand why that does not happen to other players.As they pay it will be a competition and the hotels must provide a better service.I learned that you have to play with the weapons that one has and not complain about the competition, but for this you must be on equal terms.In hotel we must bet on experience with technology and we are working on this.

In Montevideo, is the hotel offer saturated?

Yes, in Montevideo the hotel offer increased a lot.What needs to be done is to boost convention tourism.For years we have fought to build a convention center;Now is the Antel Arena that we hope can move the item.We also support that there is a rate to tourists, which exists in almost everyone, which is destined for important tourism investments.You have to create new attractions.For this you have to have resources and the rate is something very positive.

And inside the country?

We believe that the development of the new UPM plant can give a chance for that area.We have the plan to invest there, as we did in Fray Bentos, where we are doing very well.We also have proposals to manage hotels that are already working and we are evaluating them.

They ventured into the office market with a building in Punta Carretas, are there plans to grow in that segment?

Nope, porque no nos especializamos en eso.

There are economic changes in the region and in the country, how do you define this moment to invest in Uruguay?

That is difficult to answer.In the areas where we are not a good time to invest.But that same question asked me in 2002 and in that year we had to inaugurate the Radisson in Colonia and the Arapey de Salto.And people asked me why.We think of these investments, then we get investors, and later it is built.So, when they are inaugurated, it is not that one is wrong, it is that the situation changes and in our country that happens very quickly.Today nobody should think about making a new hotel;That does not mean that there are no hotels under construction or close to inauguration.