About rotation and new brands after lockdown
Denys Kornuta, Director of Arricano retail space Department, took part in a discussion panel of heads of commercial services and rental departments of shopping malls, which was held as part of the Tenant Mix Conference 2020. The organizer of this industry conference is Malls Club.
Experts of the discussion were also Oleksandra Nehoda, Director of the real estate management department of Rustler, Liudmyla Vilishchuk, Commercial Director of Oasis shopping mall in Kyiv, and Viacheslav Makarenko, Managing Director of the Mark shopping mall in Lviv, specializing in furniture. Artem Shlapak, Project Manager of the Malls Club and moderator of the panel, found out about the changes in tenant-mix after the lockdown, what factors they were caused by, which retailers remain traffic-generating and what are the prospects for the growth of the "entertainment" and "food court" categories. After all, they are still the most vulnerable industries in the shopping mall after the lockdown.
Denys shared several tenant-mix cases of Arricano: about the growth of traffic in RayON shopping mall in Kyiv, about marketing programs to increase demand on the food court, about the rotation of tenants in the conditions of technical vacancy of the shopping center and the emergence of new international brands entering the Ukrainian market.
"If we talk about the rotation of tenants, this is a natural process that occurs regardless of quarantine. Although the latter, of course, influenced the business decision. As for the Arricano's malls, during July-August we opened several new tenants in the Fashion and Beauty category. The most vulnerable were public catering establishments, whose representatives had to make decisions about closing not only in specific shopping centers, but also their representation in the market as a whole. For existing public catering operators in Prospekt shopping mall, we have launched the Mood plus Food marketing program, with the key messages of which we aim to increase the number of orders and restore the culture of consumption on the food court. We are also planning several high-profile openings in Prospekt shopping mall in the fall," Denys said about Arricano's immediate plans.
"All members of Malls Club were pleased to meet again and discuss topical issues of both operational and strategic planning in the development of tenant-mix. After all, the meeting of top managers responsible for leasing in Ukrainian shopping malls was devoted to these issues. There was also an opportunity to get acquainted with data on European shopping malls. It turned out that the situation in Ukraine is not much different from Poland, Serbia or Bulgaria. And some business metrics are even more comforting. For example, a drop in traffic in domestic shopping malls was recorded at the level of 15-20%. And in Europe, in some places it has decreased to 50%," Artem Shlapak summed up.