BALFIN Group has brought nothing less than the idea of shopping centers to Albania. The group is not only a developer and operator of assets but has also developed into one of the most influential retail and wholesale players in the Western Balkans. “It takes courage, trust, and patience to break new ground,” says Julian Mane, Vice President Retail of BALFIN Group. “But whoever is among the first on a new market will also be the most successful.” In the extensive interview with ACROSS, Mane explains, among other things, how he convinces brands to enter the Albanian market, what they can expect there, and why retail parks will be the future concept for the country.

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BALFIN Group is one of the industry’s most prominent and youngest players. Please provide us with a brief insight into its history.

Today, BALFIN Group is a diverse company active in many industries, mainly focusing on retail real estate and banking. The Group was established in Vienna in 1993 by Samir Mane, who moved to Austria after the regime change in Albania in the early 1990s. At the time, there was a lack of goods, and Mane seized the opportunity and started importing various products. Initially, these were primarily consumer electronics goods, which were not available in Albania. With the business slowly growing, the Vienna office was established soon after and has been standing ever since. Today, the office trades in electronic devices and has established a large real estate department.

What happened next?

With the business going well, diversification soon followed. One focus was on retail, as it held the most significant potential. Albania was completely unorganized when it came to retail. There were many wholesalers and many people doing business. Still, we were the first to introduce a genuine consumer electronics concept called Neptun, one of the most successful brands of the BALFIN Group. It is currently present in four countries and is the market leader in three, with a market share of 48 to 52%. Following the success in retail, we have moved on to retail real estate.

So, you brought the idea of shopping centers to Albania…

One of the biggest steps for BALFIN Group was the decision to build, open, and operate the first shopping center in Albania: The Univers Shopping Center (QTU), which has been operating since October 2005, is located 6 km from the city center of Tirana. Today, the center is doing well, but in 2003, when we decided, it was a major one, and most people were highly skeptical about it. The timing was a bit too early, but fortunately, with the help of a few international partners who believed in us and the market, we obtained the know-how and funding. This is the most crucial aspect of the learning experience: New markets always need courageous people who believe in the project. At the time, this not only applied to the investors but also to the brands that dared to enter Albania. Today, we can see that those who were courageous back then still run successful businesses in the market.

Where does the group stand today?

BALFIN Group is one of the leading investment groups in the Western Balkans, combining international standards with local expertise. Operating across two continents and 11 countries — Austria, Albania, Kosovo, Bosnia and Herzegovina, North Macedonia, Montenegro, Switzerland, Croatia, the Netherlands, the United States of America, and Canada— the Group has established a significant geographical presence. With 5,300 employees and a portfolio of assets valued at €2.4 milliard as of 2024, BALFIN continues to drive innovation and growth across its markets.

What makes BALFIN Group unique is the combination of retail and retail real estate in one company. You are a mall developer, manager, and the largest tenant yourself.

Yes, what was necessary initially has put us in a powerful position over time. When we first realized QTU, we built a shopping center but had no tenants. Also, when we opened TEG, our second big center, which we will discuss later, we had to be brave and become our tenants. By doing this, BALFIN Group has become one of the Western Balkans’ most influential retail and wholesale players. Today, our strategy is to look for brands we can develop in countries other than Albania. Primarily, we want to enter the Western Balkans – especially Croatia – with these brands. We are also looking for more significant concepts for our centers outside of Albania, and we are collaborating with and trying to convince international brands, which will allow us to expand to at least five or six other markets.

You are active in many sectors, while retail doesn’t necessarily have the best reputation. Why do you still focus on retail and retail real estate?

Retail and retail real estate are among the most essential pillars of our company, and we will continue to invest in them. Over the years, we have expanded our retail activities. Starting as a consumer electronics company, we are now the second-largest supermarket chain in Albania. We have exclusive franchise rights from SPAR for the territory of Albania. Furthermore, we are in the fashion industry with the Fashion Group company. We are franchisees of brands such as Mango, Geox, and Springfield, all international brands that trust and want to develop with us. Regarding retail real estate, we own and operate three shopping centers.

To return to the history of your mall business, after QTU, you opened TEG, a shopping center in another dimension.

Around 2010, international suppliers demanded to enter the Albanian market, but the market lacked retail space. Thus, it was time to build an even more professional and more extensive shopping center to house new brands. Opening TEG was an excellent decision, as it also has a location that I think is one of the best. The shopping center is 4 km away from Tirana’s city center but is also a hub that people from all over the country visit.

This sounds a little bit too easy, considering Albania currently.

Of course, there were challenges in the beginning. For example, people were not used to driving out of the city center to go shopping, and the roads were also not maintained properly at the time. As I mentioned earlier, such projects always take courage and time. Eventually, people got used to it; today, they love the center. We knew in 2014 that we had succeeded when we signed the first contract with the Inditex group. It was like an accolade. Following Inditex, a lot of other players came to the market.

Nevertheless, some brands have been hesitant about Albania for a long time. H&M, for example, only entered the market last year. Why did the Inditex Group have confidence in the market so early?

Initially, the difficulty was that we had to convince the people from Inditex or other international companies on site of Albania’s market potential. Market analysts were available, but whether you are sitting in front of a computer and studying the statistics or “feeling” the market on site makes a difference. Inditex accepted our invitation, came to the country, and was convinced Albanians were “hungry” for shopping. People here are very trend-conscious and willing to spend a lot of money on fashion. It is crucial to anticipate early developments, exactly what Inditex did. We were very persistent in our invitation, and the expansion experts from Inditex followed the correct intuition.

But most expansion managers still rely primarily on official statistics on purchasing power, etc. From your experience: How relevant do you consider such data to be regarding new markets?

In general, there are many accurate statistics available today, but of course, there is still a particular shadow economy, especially in the Balkans. So, there is data in circulation that is not always completely reliable. Nevertheless, you can look at the current trends, which are ultimately decisive. The most important thing – and I cannot stress this enough – is to visit the country to assess the market’s condition and to check the vitality and consumer culture.

Today, TEG is the entry point for many international brands.

Correct; it’s the most successful shopping center in the country and one of the most visited in the Balkans. Of course, we are not without competition. Tirana has enough space for several malls, and competition is vital to maintain their high quality. What our brand partners see in TEG is the professional and comprehensive brand mix. Continually developing this is a core task that sets us apart from the rest of the market. We know our customers very well and understand what they need. The focus must be on selecting the in-demand tenants rather than those paying high rent. Brands such as Inditex and H&M naturally help to develop the tenant mix further. We also place a lot of emphasis on entertainment; thus, we have a very professional Cineplexx concept. Cinemas rarely bring in a lot of money for shopping centers. However, they are a good investment in attracting people to the center. We are prepared to invest in brands or concepts even if we do not earn money directly from them because we recognize the long-term benefits.

Gastronomy was also a core theme in the TEG from a very early stage.

Yes, gastronomy is a vast topic. We started with a smaller concept, but today, we have an impressive mix of international concepts and local brands. In addition to the chain restaurants, there are two excellent restaurants. Gastronomy draws people to the centers; they want the whole experience: shopping, dining, and entertainment.

The EU accession is an essential aspect of the future development of the Albanian retail market. What do you hope to achieve from this?

Joining the EU will open many opportunities for Albania. I am sure that with EU accession, many other players will want to enter the market. Competition will therefore increase. However, it will still be necessary for international players to have a local partner. Even with EU accession, the market dynamics will not change immediately. We have proven that we know our customers and the market very well. The BALFIN Group is well positioned to benefit from this international presence of the brands. The Balkans are simply complicated. The countries may be small, but their customer behavior is entirely different. This is an enormous challenge for international companies. One pillar of our strategy remains to offer ourselves as a valuable partner for global companies. I am convinced that this combination of international standards and local expertise will be a successful factor for the positioning of pilot groups in the future – especially when the country becomes a member of the European Union.

What are you missing in the Albanian market?

We check international trends internally, and our teams examine the statistics closely. We cannot serve all international trends. One important area we need to develop further is technology and its adjacent areas. We also lack a professional sports retailer in the mid-price segment. These two areas promise very good sales, and we must grow them. TEG offers optimal conditions for such retailers to enter the market.

Which international brands are on your Wishlist?

If it is a question of giving a specific name, then it is a concept like Ikea, which is not yet represented in Albania. We do not know the company’s plans, but Albania needs such a concept. Many local offers exist, but an international company with such a profile – furniture, kitchens, and great accessories at moderate prices – will be very successful here. A second name would be Peek and Kloppenburg, which is developing very strongly in Eastern Europe. Albanians are fashion-conscious, and the market offers potential for a retailer in the medium to higher price segment.

What is your main argument for convincing international retailers to enter the Albanian market?

The country’s economy will continue to improve, mainly due to increased tourism. Our airport is one of the busiest in the Western Balkans. A new airport is being built in the country’s south and will open next year. It is the right time to invest. Many companies are still waiting for EU accession, as it will be much easier legally. That is understandable, but you are more successful if you are early in the market. This is proven by the figures of the international brands we already work with.

Now you are taking another significant step in developing your retail real estate portfolio: You are particularly interested in developing retail parks.

Absolutely, we highly believe in developing the retail parks concept, which is essential in our countries. Albania still has a lot of potential in this aspect. Currently, everything is focused on shopping centers, but shopping centers are too expensive for the areas outside the capital cities. We are struggling to find suitable retail space outside of Tirana. In Albania these spaces are small, and there is no real high street outside the capital. So, we decided it was time to invest in proper professional retail spaces in these cities. And since we already have the key brands in the company and are in contact with many international brands, I expect this to be a success story. That is why we have decided to develop the concept of retail parks, and we are closing some deals to buy land and change the retail landscape outside our country’s big capitals.

When can we expect the first opening?

The first opening will be in two years. We are also looking for sites with around 60,000 sq m of space, so we are building with the future and development in mind. On these 60,000 sq m, we can build up to 25,000 sq m of gross leasable area, which is a good size. It will probably look a bit big initially, but it will develop over time. We have identified three plots of land in Albania and two in North Macedonia, and negotiations are already ending. We will start construction next year and have received feedback from brands who can hardly wait to be represented in smaller towns. They know us as a reliable partner and want to grow with us and take new steps. BIG CEE is our development partner; all parks will work under one brand.

This content was originally published by Across Magazine. Read the full article here.