About traffic fluctuations in the Arricano shopping mall, trade elasticity, technical vacancy and new lease agreements in 2020
Arricano, a leading developer of shopping malls in Ukraine, informs that during 2020, taking into account all the anti-epidemic government restrictions in the operation of the shopping malls and measures to combat the Covid-19 pandemic, company's shopping malls demonstrate the development of the tenant-mix portfolio, invite new international brands to cooperate and continue to attract millions of visitors to shopping and spending leisure time. As a consequence, total tenant turnover was only 10% below 2019 in local currency.
During 2020, the government introduced restrictions on social interaction in public places. As a result, the work of the Arricano Group shopping malls was partially suspended, and visitors' access to the shopping malls was restricted for 52-81 days, depending on the region. Only some operators from the list of the most necessary categories of goods were allowed to operate. Despite the temporary closure of other stores and restrictions on access to the shopping malls, the occupancy rate across the Arricano Group portfolio was 99%. This 1% technical vacancy rate for the company has remained unchanged since 2018.
Two approaches to shopping mall traffic analytics
Arricano Group shopping malls' traffic in 2020, including periods of government restrictions, amounted to 33.1 million visitors, which is 19% less than in 2019. A good indicator of the shoppin malls' popularity is traffic in those periods of 2020, when the malls operated in the usual format without government restrictions. At that time, the number of visitors to the shopping malls decreased by only 5% compared to the same period in 2019.
New lease agreements
During 2020, Arricano Group signed 89 new lease agreements covering a total area of 8884 sq.m. New retailers include New Yorker, Flo, and Decathlon.
"The Covid-19 pandemic and government restrictions have undoubtedly affected the company's operations. I am glad that even in difficult conditions of uncertainty, the Arricano team worked efficiently and accepted all challenges. After all, thanks to the efforts of the team, it was possible to maintain the vacancy rate of 1%, maintain a high visitor rate and ensure the conversion rate of traffic to shopping malls. As well as invest in the implementation of significant projects to strengthen anti-epidemic security measures and improve the culture of behavior in social spaces. The experience of effective cooperation and ensuring partnership manifestations has become the key to trust and signing new lease agreements. And all this is a good harbinger for future projects," said Anna Chubotina, CEO Arricano.
New appointments in strategic management
Last February, George Komodromos joined the Board of Directors of Arricano, which oversees the company's strategic management, as an independent non-executive director. George is engaged in international legal practice in such areas as commercial, corporate, banking and property law.
About the transfer of shares within the Dragon Group company
In January 2021, the AIM information platform of the London Stock Exchange published an official announcement about the transfer of 12.51% of Arricano's shares from Dragon Ukrainian Properties & Development PLC to Dragon Capital Investments Limited, both of which are part of the Dragon Group.