May 21 (Reuters) - Mall operator Klepierre is

focusing on Europe's most dynamic and affluent big cities and

offering experiences beyond shopping to compete with

fast-growing online retailers, its chairman Jean-Marc Jestin

told Reuters on Tuesday.

Shein, which sells in more than 150 countries online, has

emerged as a major player and accounted for nearly 20% of

the global fast-fashion market in 2022, outpacing Inditex's

Zara and H&M, both Klepierre tenants.

"I don't believe in the disappearance of physical retail ...

but rather in a concentration, and so all our work has been to

concentrate on the big cities, the big shopping centres, which

are the most dynamic," Jestin said in an interview.

Klepierre's tenants, which also include LVMH-owned

cosmetics retailer Sephora, Tommy Hilfiger, Lacoste and Apple ( AAPL )

, look for more glamorous and tech-savvy shopping

centres, with restaurant and entertainment offerings, while also

developing online services, he said.

Among the attractions Klepierre is offering to get people

into its malls are yoga and dance classes, concerts and movies.

They are spending their money in particular on sports

clothing, sports equipment, health, beauty and personal services

-- spanning brands such as JD Sports, Adidas,

Foot Locker ( FL ), Rituals and Sephora, Jestin said.

Retailers are now much more diversified, he added, with

brands such as ABF's Primark, Normal and Action

attracting both budget and more affluent shoppers.

Meanwhile, online can account for up to 35% of sales in

Klepierre's shopping centres, up from 5-6% about a decade ago,

its chairman said.

"The brands we work with today ... are omni-channel, so

today they make around 20% to 30% of their sales online, and

some are rising, like Mango, to more like 40%, so they need

fewer physical shops and are therefore more selective."

Jestin said that 10 years ago, Klepierre had 330 shopping

centres, compared with just above 70 today.

"It's a good thing we made this change, because if we

hadn't, I think we'd have a lot of shopping centres today where

it would be difficult to attract retailers and customers,"

Jestin said.

As part of the effort to strengthen its presence in major

European cities, Klepierre announced on Tuesday the acquisition

of the RomaEst shopping centre in the Italian capital.