Mikhail Merkulov: Arricano’s plans for 2016 include the introduction of service model of business

In Arricano shopping malls according to the results of year 2015, retail space occupancy rate increased during the year.

In City Mall shopping mall (Zaporizhia) during 2015 occupancy rate grew by 1% (from 99% at the beginning of the year to 100% at the year ending); in Sun Gallery shopping mall (Kryvyi Rih)  - by 1,2% ( from 96,5% to 97,7%); in RayON shopping mall (Kyiv) – by 0,5% (from 96% to 96,5 %); in Prospekt shopping mall (Kyiv) – by 20% (from 73 % to 93%).

Mikhail Merkulov, the General Director of  Arricano Real Estate Plc, states that good results of year 2015 are the result of intelligent development of the facilities by the company professionals, “For 2015, we planned to make Arricano shopping malls even more interesting, both for tenants and for customers. That’s why all the action complex including the achievement of quality tenant mix, implementation of tenant quality rotation, implementation of new tenant partnership models, resulted in the planned figures at the end of the year.”

For 12 months of 2015, Arricano entered into 187 new lease agreements in the company shopping malls network and leased out 19,900 m2 of retail space, including 7 667 m2 within rotation.

Mikhail Merkulov remarks, that for year 2016, the company plans to increase the retail space occupancy, change the concept of some of the shopping malls, and introduce new interaction philosophy, “Service model of business is a new trend in modern world”. In 2016, we are going to implement the service model of business in relation to both, our tenants and guests of Arricano shopping malls.” The General Director of Arricano says that in view of buyer demand drop, the customers will vote with their money for goods and services in places where the clients are offered not only high-quality goods and services but also the best customer service, where the manufacturer’s exclusive focus is the buyer’s needs.

The drivers of Arricano development in 2016 will be complex approach to shopping malls development, tenant partnership interaction model implementation, increased conversion of tenants by means of quality target audience attraction and, as the result, increase in tenants’ turnover.

Increase in attendance rate, decrease of vacancy rate, increase of tenants’ turnover and the company’s rental income remain the strategic goals of Arricano, in 2016 as well.