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The number of mono brand stores is set to increase further, according to some of the most influential CEOs in the European shopping centre industry.

Speaking at the ICSC annual European Conference in Berlin on Wednesday, Marcus Wild of SES Spar European Shopping Centres said a big effect of e-commerce is that the distance between manufacturer and retailer is becoming much shorter. 'Do we think of Apple as a manufacturer or a retailer? What it most definitely is, is a brand - and the more important brands get, the more they need a home.'

Even Amazon, which started as a pure on-line retailer is now a brand aiming for a physical presence, he added. 'The store is the message about the future of the brand, and we are finding that the number of mono brand stores is increasing. These brands need a good environment, good centre management and good urban surroundings.'

E-commerce remains the biggest and most immediate challenge facing both retailers and shopping centres, the CEO panel agreed. In Germany 70% of consumers already buy over the internet and internet shopping is still growing, noted Alexander Otto of ECE Projektmanagement. 'But some retailers are still only in the early stages of learning how to successfully link on-line with retail. True multi channel retailing has not yet been seen in perfect form. We must combine physical shopping with the internet, but at the moment, very few retailers are making money on this. And if you do it wrong you lose a lot of money.'

To create the right retail environment, companies need personnel with the right skills, according to Gerard Groener, CEO of Dutch listed retail specialist Corio. He called for more skilled professionals: 'Technical innovation needs a driver.'

As the traditional retail model changes, leasing models will also need to adapt as the decision to make a purchase is no longer necessarily made where the sale actually takes place. But there is still a place for brick and mortar, he pointed out: some large retailers are reporting that their online business was strongest in the catchment area where they have physical stores.

Nevertheless, tenants will require less space as they integrate on and off-line sales, the three panellists agreed. But rather than seeing this as a negative, the three industry leaders now see this as an opportunity to widen the opportunities to offer a more diverse range of leisure or other activities.

Groener: 'The need for floor space could go down 10-15-25% - who knows? But, smaller units mean more opportunities to provide something different. Nevertheless, the old rules still apply. Location first, and then a merchandising mix appropriate to the catchment.'