Denys Kornuta: shopping mall's tenant-mix update as a response to consumer requests

A shopping mall as a business project has its own life cycle, and the task of its team is to set an impulse in time so that growth continues in the future. Denys Kornuta, Director of the Arricano Retail Space Department, told at the Tenant Mix Conference, which was organized by the Malls Club Ukraine, what this impulse might look like for shopping malls with different audiences, location and area.

Denys illustrated his report with changes in the tenant-mix of the Arricano shopping malls that occurred during the first half of 2021.

Updating the RayON shopping mall as a response to trends
The RayON shopping mall was opened in 2012 as a shopping and leisure center in the capital's Troieshchyna residential area, whose residents became the main core of the shopping mall's audience.
And also - a loyal audience: despite the difficulties of 2020-2021, attendance at the RayON shopping mall during this period grew up to 20% per month. However, not only traffic is important, but also turnover. After analyzing this indicator, we found that the demand for household appliances and electronics has increased. There are several reasons.

First, people have become more appreciative of time, so they prefer to spend it with their loved ones, and delegate everyday boring routine tasks to equipment.

Second, buyers view technical devices and gadgets as investments and material capital that are not affected by either inflation or the crisis. With this in mind, we have expanded the category of appliances with the Foxtrot brand, as well as updated the "Allo" format: it has become more spacious and bright, so that consumers are more pleasant to be there.

Since some of our visitors have switched to a remote or mixed work format since last year, we have updated the category of household goods by several tenants, and also added a new one – this is the Hobbies category, represented by the creative accessories store "Aquarelle".

For 9 years of existence, residents of Troieshchyna have a tradition – to visit the RayON shopping mall with the whole family. At the beginning of the year, we conducted a shopping experiment with parents and children to find out how different their style preferences are. As it turned out, adults and teenagers prefer different brands in our shopping mall: the first ones like the Vovk and Olko range, and the second ones - like SinSay and O'Stin. Thus, for a successful tenant-mix, we needed a fashion store where the whole family could shop at once. The ideal candidate for this niche was the store of the Turkish brand LC Waikiki, which presents things for men, women and children.

Prospekt shopping mall - request for a sports hub
Even before 2020, the trend shifted towards convenience and self-care, and the lockdown only increased the audience's demand for the sport fashion trend, which runs in parallel with a healthy lifestyle. Noticing this trend, we decided to strengthen the sports category in Prospekt shopping mall by opening Decathlon, the first store of the French brand on the left bank of the capital. Moreover, with this bright discovery, we immediately got into the local sports community, which is represented by hundreds of different sports schools and clubs, fitness centers, swimming pools, football clubs, as well as groups where classes in tennis, table tennis, boxing, Aikido, yoga, various types of martial arts, and dance are held. And already in the first month of Decathlon operation, we expected good results: the share of the new store in the total turnover of the Sports category (which is 7 tenants) was 23%. 

The shopping mall itself also had a hand in this achievement, whose team personally conducted a full-fledged promo campaign for Decathlon - from the creative concept of offline representation of the shopping mall to digital manifestations. On the occasion of the opening, a press event was held, which was attended by journalists of industry media and lifestyle publications.

Updating the space of the Sun Gallery shopping mall
The slogan of the Sun Gallery shopping mall is "The residence of fashion in Kryvyi Rih". Currently in the city, being the eighth most populous in Ukraine, there is no such shopping mall, which would represent so many international and Ukrainian brands, including LCWaikiki, Jysk, Comfy, Brocard, A. Tan, NewYorker, Puma, Intertop, Budynok Ihrashok, O'Stin, Megasport, Arber, Atlantic. For 13 years, our shopping mall has managed to win the favor of Kryvyi Rih families and become one of the city's centers of fashion, culture and art. We are currently working on a renaming, which is part of our update.

However, there were some targeted changes in 2021, because we set ourselves the goal of increasing traffic on the second floor of the shopping mall. To do this, we signed a contract with the Letout outlet multi-brand store, which occupied a significant part of the floor. Its appearance not only evenly distributed the flows of the shopping mall, but also strengthened the position of "fashion neighbors".
Some tenants also benefited from changing the location and updating the format.

Multi-functionality as a feature of the shopping mall of the future
Multitasking has become an integral part of our lives, so people, especially residents of megacities, try to optimize their external and internal resources and perform as many tasks as possible in one place. A multifunctional shopping mall that combines shopping, entertainment, services, architectural aesthetics, a recreational area, the implementation of cultural and social projects, coworking spaces that unite people and ignite an idea would be best suited for this role.

Arricano shopping malls are already implementing some of these to meet the audience's needs. For example, in the RayON shopping mall and CityMall shopping mall, we held a crowdfunding campaign "Kinder together", during which visitors to shopping malls could bring clothes that are not worn and pass them on to those who need it. The initiative was actively supported by the residents of both Zaporizhzhia and Kyiv, as they liked that you can simultaneously unload the wardrobe and do a good deed.