RAU asked the leading experts of the market, with with what totals they ended 2024 year – the third year in the conditions of the full-scale invasion of Russia in Ukraine.
Traffic
In the summer of 2024 year Russia resumed firing on the energy infrastructure of Ukraine, so almost the entire hot season went with the electricity cuts. Added also and anomalous heat. So that the TRCs have become points of indestructibility, where we can eat, and work, and recharge gadgets. Deja vu with power outages was and in the autumn. But, as says Evgenia Loktionova, Director UTG, that the return of the population to the native cities, reorientation and restoration of logistical chains, openings Inditex will contribute to the gradual recovery of visitation to the TRC. And on December 2024 year this indicator was 383 person per 1000 sq. m. GLA. For comparison, on December 2023 – there were 367 people.
Average daily visitation of trade centers in the section of formats, people on 1000 sq. m GLA
But Andrey Lotototsky, CEO of consulting company Retail&Development Advisor noted, that the increase in visitor traffic is for those sites that have qualityly used marketing tools to attract clients, improved the comfort of visitors and tenant-mix. “In this way, the best shopping centers have become more attractive to customers.customers and traffic increased up to 20% compared with 2023, while those who were less active in investment and innovation, demonstrated a decrease in traffic. The only exception is only the TC in the Western areas, where the population continues to increase, and the professional TC is still insufficient, says Lotototsky.
For TRC Respublika Park 2024 is the year of record performance. Traffic steadily increased. On Weekdays the TRC received more than 65 000 people, on weekends this indicator exceeded 100 000 people. A A on the anniversary of the charity concert of the Antitila group attended a record number of 127 845 people.
The visit rates in 2024 year of the Arricano sites were influenced by many factors, in particular, increased number and duration of air alarms, especially in regional projects, where in determined months the alarms continued up to 50% of working time, the rocket strike on Krivoy Rog and damage to TRK Sonyachna Gallery in January, change of product operator in store centers in Zaporizhzhya and Krivoy Rog. But with all the number of visitors in the group and in the Kiev TRK in 2024 year exceeded the indicators of 2023 year.
Turnover
The TRC Respublika Respublika Park confirms growth of turnover by 47.5% in 11 months 2024 compared with 12 months of 2023 year.
Kiev’s Arricano projects demonstrate more stable growth of turnover, thanRegional. “In general conclusion growth fashion-operators Kiev is in average 10-15%, sports goods – to 20%, electronics stores – 20-30% by comparing with the past year. In the same time in regional projects turnover of tenants of these groups of goods increased in an average of 5-10%, that directly has been affected by the peculiarities of work in frontline zones”, – comments Inna Morozova, director of marketing Arricano.
Anna Koryagina, International Tenant Representation Director Nhood Holding and CEO Nhood Ukraine, referring to the report of the partners – company NAI Ukraine – says, that official retail turnover within the to 2023 year in 2024 increased by 20.2% in the hryvnia and by 6.9% in US dollars.
A Lototsky noted that the increase in turnover in total across the country demonstrates the category fast fashion, but not uniformly: “Seasonality has left its influence, but the sentiment of shoppers is influenced by military, political and, especially, foreign political factors, which in this year have been sufficiently abundant. Therefore it is quite difficult to compare similar periods with 2023 years. Most categories in the best case remain at the level of 2023 year.”
Rent rates
According to Koryagina, in total rent rates varying from $5 to $55 for a square meter. Because of active growth of turnover and return of all major international retailers after the launch of the newprojects that could attract new brands to the Ukrainian market, the maximum price could increase to $70.
Dynamics of rent rates for stores of trade gallery places 50-200 m2 in 2007-2024 years ($, grn)
Lotototsky notes that TRCs, which invested in developing their attractiveness for clients, have had the opportunity to increase rental rates by 10-15%. Others also were forced to do point decreases in rental payments depending on the commodity categories.
About the top operators
In 2024 year the Spanish retailer Inditex returned to Ukraine, international brands demonstrated increased turnover, Centers of country have rotated tenants, increasingly preferring Ukrainian and sports brands. So, saying Anna Koryagina, the popularity of sports retail on the world level is increasing. According to the last report from Business of Fashion, in 2023 the sports clothing grew faster, than the general market of fashion by 2-3 percentage points in China, by 5-6 percentage points in the US and by 2-3 percentage points in Europe. The fast-growing “Challenger brands” are now expected to account for 57% of the economic profit of the sports apparel segment, almost tripling from 20 year. In 2024 year new brands, such as Deckers (owner of Hoka) and Asics, are expected, that they will generate more than 50% of the economic profit of the sports apparel segment, outperforming traditional players such as Nike, Adidas, Puma and Under Armour. It is expected that the market for sports apparel will continue to grow faster than thegeneral market fashion, thanks to the increasing popularity of active lifestyle and sports among different ages. For the Ukrainian market this trend is also in place, as such examples as the recently opened new Adidas Originals store in the Respublika Park shopping center, opening of the monobrand Oakley store in the Center of the Capital, confirmation of the opening of flagship formats of sports brands in the Ocean Mall project, Blockbuster Blockbuster Mall in 2024 year opened Nike, Intersport, Puma, All Stars, Marathon.
Of course, the return of H&M and Inditex to TRC Respublika Park has significantly increased traffic. Also in May was opened space Vsi.Svobody on 1000 sq. m, where over 50 Ukrainian brands are represented, and in September the launch of the flagship Sport Life with pool took place. “Ukrainian brands demonstrate a good trend: active expansion, some have already scaled into networks and, of course, competitive capability – price-quality. Total in 2024 year in the TRC opened more than 30 new stores and establishments. In they include international brands Adidas, Adidas Originals, KFS. And specialized institutions have appeared: medical center Doctor Sam, autosalons, Nova posta. The large plazas opened winemarket OKWINE, lBlS, bistro Jacky China, store children’s dreams Kids Republic. A A also conceptual restaurants and institutions: Avocado, Minoshi, Pesto Cafe, Kyiv&Food, Pro Richka, Kachini History’, -.commented Yulia Shasliva, general director of Respublika Park shopping center Respublika Park.
“Ukrainian brands and sports goods demonstrate the willingness to develop networks, that is a positive motivation for other operators of the market to analyze their offer and to keep in step with the latest trends and consumer sentiments,” Morozova confirms.
Predictions and plans for 2025 year
According to Loktionova, the approaching scarcity of trade places will contribute to the gradual redistributionofconsumerflowsbetweensites,growthofvacancyandadjustmentofrent ratestodecreaseinmostregionsofUkraine.
Arricanowill continue to invest inimprovingtheclientexperienceinallTRKsinKiev,ZaporizhzhyaandKrivoyRogandconstructionofTRKLukianivkainKiev.
RespublikaRespublikaPark will continue toactivelydevelopbusinessandplannewsignificantopeningsandscaleeventsfor2025year.
In2025yearOceanMallintheCapital,whichwilltotal300000sq.m,rental-morethan117000sq.m.Developerpromisesthatwill berepresented800stores, among themareexpectedstoresofmajorinternationalfashion-groupsinflagshipformats,entertainmentpartatalevelthatdoesn’texistinthecountry,andalsootherretailformats.
