Denys Kornuta: on the objectivity and flexibility of the rental strategy

Malls Club dedicated a conference to the plans and expectations of the shopping malls in 2022, where Denys Kornuta, Director of the Retail Space Department, spoke on behalf of Arricano. It is clear that the market is gradually stabilizing, although readiness for turbulence and unpredictable objective circumstances requires flexibility and adaptability in decision-making. What are the key goals in implementing the Arricano rental strategy – for more information, see the op-ed made special for Malls Club.

On previous impacts and new market trends
We all understand that in 2022 we will still have relevant trail effects of previous lockdowns. While it is difficult to say how cloudless the current year will be and what new unexpected obstacles will once again harden the players of the retail market and shopping malls.
At the same time, our industry is focused on strengthening and growth, and the experience and the tools gained become the advantages of sustainability and informed decisions. I want to share my experience and what new projects we are already ready for.
First, we saw key changes in the preferences of our customers, who expect the quality of the shopping mall to improve both as a product with new shopping offers and as a space with additional emotional value. And this trend is taking place both in Ukraine and on the global market as a whole.  
The vectors of consumer insights are also confirmed by the indicators of retail turnover, the dynamics of which we track in relation to product categories, price segments, seasonal patterns and the omni-channel shopping model. Consequently, cooperation between the landlord and the tenant will become open in order to quickly exchange best practices and data. Therefore, it is quite fair and reasonable, which will lead to the stabilization of fixed payments.

Arricano shopping malls' rental strategies
In Prospekt shopping mall, the rental strategy 2022 provides for updating the formats of existing operators, strengthening the "sports" category, which confidently expands new segments and niches, as well as attracting those brands that are in demand among the shopping malls audience. These may be interesting offers from the "medium" and "medium minus" lines.

In the RayON shopping mall, we have already significantly updated the shopping mall, conducted several rotations for better segmentation of categories, and anchored Foxtrot and LC Waikiki on the first level of the gallery. Therefore, we expect that such changes will contribute to sustainability and improve the product offer for visitors.

In the regional shopping malls - Sun Gallery and City Mall - we have already announced remodeling, the essence of which is to reduce the area of the anchor food operator and expand the tenant mix in the categories "Fashion", "Electronics", and "Sports". We have already signed a contract with the Silpo chain, which offers several new options, including ready meals, which the previous operator did not have. And we plan to place those categories of non-food products that will not be presented in Silpo into the separate locations of the shopping gallery.

Flexibility as a property of bending without breaking the structure
Covid-19 realities have taught both tenants, buyers, and shopping malls to plan according to several plans in order to be prepared for different scenarios. Our team, together with tenants, focuses on increasing the conversion rate of each visit to the shopping mall, offering visitors to expand the range of targeted purchases. A separate bonus from the shopping mall is the emotional component, which the consumer can only get offline. And they certainly understand that. 
Summing up, I want to say that even in the planned strategy, we are ready to be flexible in tactical decisions, as well as prompt and open. But also to be stable in our principles of objectivity, fairness and trust, which is the basis of our business culture and structure.