There are central streets
The revolution in Moscow and St. Petersburg street retail, which consultants have been talking about for so long, has happened! The winner was catering, which occupies the largest share in the structure of demand and sometimes accounts for more than half of the tenants on the main pedestrian and transport-pedestrian corridors.
According to the research Cushman& Wakefield «Main Streets of the world» (Main Streets Across The World), in 2018 Stoleshnikov Lane in Moscow has again entered the top twenty of the ranking of the most expensive shopping streets in the world, taking the eighteenth place. The first place in the ranking was taken by Hong Kong's Causeway Bay, the third by London's New Bond Street with a rental rate of 1,744 dollars per foot2 per year. It is also recognized as the most expensive street in Europe. In addition, the top five included the Champs-Elysees (Paris, 4th position, 1,519 US dollars per foot2 per year) and Via Montenapoleone (Milan, 5th position, 1,466 dollars per foot2 per year). The sixth place in the rating was taken by Ginza quarter in Tokyo, which became the most expensive Asian street after Hong Kong Causeway Bay with an average rental rate of 1,219 dollars per ft2 per year. By the way, in the very first report "Main Streets of the World", published in 1988, the 57th East Street of New York was recognized as the most expensive street in the world with a rental rate of 425 US dollars per foot2 per year. Since then, the first place in the ranking is occupied only by the streets of New York or Hong Kong, and only Tokyo Ginza is still able to compete with them, the company's analysts conclude.
Cushman&&Wakefield experts are convinced that the future of the global street retail segment is still bright, but it is moving into a phase "not only trade, but also"hellip;" The transition is dictated by changes in society and technological changes and continues adapt brands' business models. The company predicts that, although the traditional retail trade will retain its position and will flourish in many places, the number of those engaged in it will decrease. Thus, even on the most expensive streets of the world, there will be an integration of additional services (restaurants, entertainment, fitness, etc.), as a result of which traditional retail will change the format, approaches and concepts.
These changes are particularly evident in the United States and the United Kingdom, where the effect of the restructuring of retail enterprises, the folding of retail chains in some sectors and the tendency to lower rental rates in certain areas is already being felt, the company reports.
The introduction of technologies that change the usual way of life in the retail sector also contributes to the emergence of new promising players and formats. Thus, the concept of "new trade" continues to develop in China, which provides for the integrated use of traditional and online channels, Big Data, logistics solutions and integrated supply chainK. Regular stores have shifted their focus from traditional sales and service to creating an integrated platform: now they perform many functions, including brand promotion, creating the most attractive conditions for customers and a distribution center.
To be continued.
Author: Ekaterina Reutskaya
Photos: free sources
