Profitability and attractiveness of commercial real estate on the example of Sun Gallery shopping mall in Kryvyi Rih
Many industry reviews of commercial real estate trends point to uncertainty and difficulty in evaluating regional markets, especially in the retail segment. What is the current status, given the post-quarantine economic recovery, falling solvency and difficulties of retail operators in fashion, electronic appliances, entertainment and household services, children's goods, home goods, etc.? I suggest that at the project of the Sun Gallery shopping mall in Kryvyi Rih, we look at certain aspects of the shopping mall activities for B2B tenant partners and B2C visitors.
About the status of shopping malls in the region
The geographical location, coverage area, professionalism, and positioning of a shopping mall for key target groups are very important in evaluating its efficiency. Sun Gallery shopping mall is located in Kryvyi Rih, the largest of Ukrainian cities that are not regional capitals. According to the All-Ukrainian population census, 619.3 thousand inhabitants live there. Positioning of the shopping mall is a comfortable social space of urban significance, where stores of leading brands are exclusively located. Among such fashion operators are Pimkie, A.Tan, LC Waikiki, New Yorker, Maha, Puma.
While understanding the importance of an offline presence in the city, both Ukrainian and international brands are interested in creating their residences in a professional shopping mall in this region. By the way, Sun Gallery is one of the professional shopping malls in Kryvyi Rih, a city of metallurgists and miners, with a high potential for local economic development.
As of January 31, 2021, the occupancy rate of retail space in the Sun Gallery shopping mall is 100%. Many more interesting fashion operators are announced in the waiting list. Therefore, we regularly review tenant-mix to expand the range of brands and products in the most relevant and popular consumer shopping categories.
About segmenting shopping mall's target audiences
An offline store provides free access to all target groups that visit the shopping mall. How to "pick up" the general traffic customers from the shopping mall's gallery to yourself and influence the decision to make a purchase — this already depends on the marketing program of each brand.
Kryvyi Rih is a contrasting city in terms of analyzing groups by segment. We are focused on generating effective traffic, among which we single out a layer of private entrepreneurs — representatives of small and medium-sized businesses, civil servants, teachers, doctors, employees of the art and entertainment industry. Each of them has its own motives for visiting and shopping in the shopping mall. And this is a deep issue that we study and form the appropriate tenant-mix, conduct rotations and update brands in the shopping mall.
In the fourth quarter of 2020, 5 new fashion stores were opened in the Sun Gallery shopping mall, including stylish workwear for doctors TopLine, Ukrainian brands Lesia, Stimma and Jasmine.
Social space and social position of the shopping mall
One of the communication trends that evokes respect and reciprocity with the audience is the implementation of social and charitable projects. The Sun Gallery brand's CSR portfolio is united in the message "Humanity is our asset". Inclusive programs, assistance to the city infectious diseases hospital, educational cases, a patriotic laser show about Kryvyi Rih and miners — all these increase the loyalty of Kryvyi Rih residents, form a positive perception of both the shopping mall and the brands that are represented in the Sunny Gallery.
100% occupancy of retail space in the shopping mall does not mean that you can rest on your laurels. On the contrary, it requires more complex, creative and unusual solutions in improving the pool of tenants, studying deep insights and consumer patterns. You can also analyze the waiting list to recommend suitable formats and locations for tenants in order to develop their brand in Kryvyi Rih.