Mykhailo Merkulov, the CEO of Arricano: «In Prospekt we’ve implement the idea of creating a comfortable social space in shopping mall for three years»

Prospekt shopping mall (Kyiv) celebrates its third anniversary. On December 6, 2014, the grand opening of the sixth facility by Arricano Real Estate Plc has been held. Prospekt shopping mall has opened in a difficult social and economic period for the country: the retail trade indicators have shown negative dynamics, purchasing power has fallen, the negative trends in retail have been seen, some foreign operators have left the Ukrainian market, and in the second half of 2014 the retail spaces' vacancy in the capital have increased to 9%.

Prospect was the only large shopping mall opened in Ukraine in the second half of 2014. Today, the project has become a favorite place for meetings not only for residents of the Left Bank of Kyiv, but also for those Kyivans, who like spending time interestingly and profitably in a stylish and atmospheric place, while shopping and having fun.

«In Prospekt we've implemented the idea of creating a comfortable social space in shopping mall for three years», - said Mykhailo Merkulov, the CEO of Arricano Real Estate Plc. - «The high-quality tenant-mix is the complex of goods, services, entertainment and food court offers that the shopping center's visitor needs, a variety of marketing programs and personalized communication with guests and tenants are all the elements of a certain ecosystem, which is comfortable, where you want to return to, where the guest finds something new, interesting and useful. We have received a model of a comfortable social space in shopping mall for three years in combination of right location, effective architecture and planning, the use of innovative approaches in construction, technologies and management».

The vacancy in Prospekt, to the shopping mall's third anniversary, is - 3.7% (as of 31.10.17), the vacancy rate at the grand opening time, on December 2014, was 25%.

«Today, we have a deep expertise, which is supported by a database on tenants' turnover in our shopping centers, starting in 2015», - says Hanna Chubotina, the Director of the Retail Space Department at Arricano. - «While deciding on the particular tenant's involvement, analyzing the project's current situation, planning changes, we look at the partner's effectiveness. The formats' analysis and their effective use provide a resource for development. We understand that the shopping mall's development is possible only if the tenants' turnover grows. This is a kind of characteristic feature. The tenants' turnover is growing, so we are doing the right things».

It is worth noting that the Prospekt shopping mall tenants' turnover has grown significantly for three years. In 2016, the tenants' turnover from the square meter growth was 23% (in US dollars), compared to 2015. In 2017, the turnover growth for January-October compared to the same period of 2016 amounted to 30% (in US dollars).

Prospekt shopping mall's attendance for the third consecutive year also demonstrates positive dynamics not only in quantitative indicators, but also in qualitative ones. The average monthly attendance for 10 months of 2017 has increased to 1.5 million people, in 2015 it was 1.2 million people per month.

The visitor's portrait has also changed. In 2015, the shopping mall's visitors have been represented by three target groups: young people (Multiplex Cinema and food court active users); purchasers in Auchan supermarket (made the audience's majority), and the main shopping "drivers" are women 27-45 years old, who needed to be motivated to visit the shopping mall, attracted to fashion-shopping. Today, three years later, Prospekt shopping mall works with an audience aimed at purchasing goods in the fashion category, and the guest's staying time in shopping mall's space is about 3 hours.

Nataliia Dmytrenko, the Marketing Director of Arricano, notes that the loyalty formation to the shopping center's target audience was a serious challenge for marketing at the project's start. «Today, we take into account more than the knowledge indicators, visits and loyalty frequency», - points Nataliia Dmytrenko. - «We take into account the guests' involvement in the shopping mall's life, participation in shopping mall's and retailers' activities, online and offline, creating a positive consumer experience together with our partners. In 2017, the target audience's loyalty index was 67% among the shopping mall's guests».

«Prospect plans «improving business indicators, introducing innovations, building up positive consumer experience, developing the Tenant - Guest - Shopping Mall relationship ecosystem, developing a comfortable social space and using the Prospekt shopping mall's successes on other sites of the company», - the CEO of Arricano said.