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Nikoliers: grocery retail is reducing its space in shoppingcenters

Nikoliers: продуктовый ритейл сокращает свои площади в торговых центрах

Major Russian retailers are adopting the format of stores at home, so called convenience stores. The attractiveness of grocery stores for visitors to the TC is decreasing, as evidenced by changes in the format of their presence, Nikoliers analysts found.

Zamrznuti tonovi/Shutterstock/Fotodom

Zamrznuti tonovi/Shutterstock/Fotodom

Traditional role of product retail as anchor tenant in shopping centers is weakening, but only in within large hypermarkets, while as in the district TC this format is still performing this function. According to Nikoliers’ expert assessment, in in the shopping mall Metropolis has reduced its area in two times. Fitness centers, entertainment establishments and other segments are coming to replace grocery stores in as traffic-forming tenants .

From 2021 year the share of tenants of product profile in shopping centers decreased by 1 p.p.p., from 8% to 7%. Despite this, grocery retail remains one of the

Food retail retains its presence in shopping centers, despite the  that its role as an anchor tenant is decreasing, and the format of occupied space is becoming compact. This trend in first first is traced in large trade complexes, while as in district TC grocery stores still remain the anchor tenants and occupy large places.

But thanks to the increasing popularity of stores at

X5 Retail Group launches the Okolo chain, which plans to develop under franchise, also it became known that developer group “Kievskaya ploschad” begins active development network of stores at home under the brand “Food city express”. The first stores already opened in residential complexes “Kutuzov grad” and River park Kolomenskoye, and plans company promise scale development to 2026 year.

Source: Nikoliers

Source: Nikoliers

The geography of product networks is also actively expanding across Russia. Such as, “Pyatyorochka” plans to open more than 200 stores in the Far East, and  “Magnit” recently launched the first store in Magadan. The companies alsodiversify the business and develop new niches.For example, “Pyatyorochka” develops a network of stores of alcoholic products “Tantana”, “Lenta” opened 30 specialized points “Tochka Tabaka”, a “Magnit” along with  “Samberi” launched the discounter “Tsenokhit” in  the Far East.

On the

“The rise of the popularity of stores at home is driven by and their proximity to the consumer, and flexibility of logistics, and the ability of fast delivery. All these in aggregate make the format of stores at home increasingly demanded by the retailers, and and customers. Shop close to home or work, offering interesting assortment matrix and reasonable prices .parameters, could become very successful. I also note that because the market hypermarkets in Russia haslongformed,thepotentialforitsdevelopmentisnot, -reportedYuliaKuznetsova,deputydirectorofthetradereal estate departmentofNikoliers.

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