They grow big and small
MOSCOW CHANNEL
According to CBRE estimates, in general, Moscow follows the global growth trend of the Health&Beauty segment, noticeable in Asia, the USA and Europe. The L'etoile, Rive Gauche formats have been completely updated, the Golden Apple continues to develop, the first Sephora and LeLabo stores have been opened, other cosmetic monobrands are actively opening. The active development of multifunctional real estate continues: from 2020, about half of the commissioning of retail facilities in Moscow will be IFC, including TPU.
Olga Yarullina, director of the trade department S.A. Ricci, agrees: in 2019, the general trends that were observed on the market during 2018 will continue to strengthen, "For example, the rapid development of e-commerce and the rate of retailers on omnichannel," the expert notes. In recent years, online platforms have become a serious competitor for offline stores. But today, many consumers increasingly prefer to choose a product online, and then go shopping at the shopping center. Therefore, the presence of a retailer is necessary in all channels at once: offline retailers are actively developing online stores and social networks, and online stores are opening showrooms with fitting rooms.
Luisa Ulanovskaya, Director of Strategic Marketing of the shopping center "Mosaic", supports: the growth of e-commerce is already leading retailers to reconsider the role played by their "physical" stores in the overall service clients. "While traditional retailers are closing their stores or reducing their space, online stores are increasingly opening their showrooms, coming out "closer to visitors," explains Ms. Ulanovskaya. – Several similar formats have opened in the Mosaic shopping center over the past year: online stores «Buy a Stroller », DNS, «Buy VIP», the billiard shop is developing through the format of offline hypermarkets, new openings are planned. Against the background of the development of delivery services and online commerce, grocery hypermarkets are undergoing even greater changes, gradually turning from grocery stores almost into lifestyle centers with numerous cafe zones. Traditional stores are being rapidly transformed in order to, if not to win competition with online, then at least to restrain the decline of their positions by creating new impressions and emotions. All this affects the qualitative improvement of service for the buyer, even in the middle segment, turning routine shopping into VIP service: with a fit and selection of the whole image with a stylist, recommendations on accessories and tea with desserts. These changes are based on the transformation of consumer behavior, the study and prediction of behavioral patterns not only in consumption, but also in leisure, lifestyle, work. In addition to "shopping experiences", two more developing, even nascent trends will determine consumption in 2019. Firstly, the emphasis on discounts and sales will only increase, and secondly, the trend towards rational consumption is becoming a new reality.
According to Nielsen, the share of promotions in retail increased by 5% over the year, to an unprecedented 64%. The depth of the discount has also changed from 20% to 23%. The main drivers of the increase in the share of sales in the receipt was a decrease in household incomes with an increase in the number of networks, and the struggle of retailers for a buyer has escalated as never before. Undoubtedly, the "era of red price tags" will continue to transform retail and retail real estate. As a result, the format of outlets is gaining momentum. By the end of 2019, three new outlets are planned to be introduced in Russia: in Moscow – Novaya Riga Outlet Village (38 thousand square meters) and Outlet Village Hines Moscow (27,000 square meters), in St. Petersburg – Fashion House Outlet Saint Petersburg (20.3 thousand square meters). In the first quarter of 2019, the XL Family Outlet shopping mall in Mytishchi, reformatted into an outlet, should also start working. Discount formats are not lagging behind, CBRE reports. The discount center "Ordzhonikidze, 11" plans to open the doors of the second stage with an area of 14 thousand square meters this spring, and the project has already been fully leased.
«So far, the outlet market is concentrated around Moscow, – is divided Brandon O'Reilly, Managing Director of FASHION HOUSE Group. The leading position of the capital is not surprising - there is a high population density and financial potential. The situation will not change in the near future, since the Moscow market is not yet saturated enough. And if you look at the world experience, the first outlet centers have always been opened in those regions where the concept of providing year-round discounts on the best international and local brands has become an interesting innovation for consumers. This is the biggest advantage of the outlet industry, with which you can go further, attracting new customers. If the investor has the appropriate know-how for commercialization and proper management of the outlet, he can count on a long-term growth of key performance indicators and, as a result, achieve significant profitability. During a crisis, people have to bargain, they like to bargain.
At the same time, according to Mr. O'Reilly, in Moscow, for example, any commercial real estate should offer a premium range. In St. Petersburg and other cities, where people are more constrained in income, more space is given to mass brands. "It's not so much about signing lease agreements with retailers, as about the effective use of retail premises," the expert explains. Consistent development of the outlet tenant pool, combined with the best offer and sufficient quantity of goods throughout the year, as well as proper management always lead to overall success.
To be continued.
Text: Ekaterina Reutskaya
Photo: shutterstock
