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SHORT SHOULDER

JLL experts note that throughout the year, cafes and restaurants have been leading in the structure of demand in the central street retail market in Moscow: their total share amounted to 41% of the total volume of applications. Supermarkets and grocery stores took the second place (13%), fashion operators took the 3rd place with an indicator of 12%, and representatives of the beauty and health segment took the 4th place (11% of the total volume of applications).

It was the representatives of the restaurant segment who showed the largest increase among the tenants of the central street retail over the past year: the share of such operators, according to JLL estimates, now stands at 33.3%. New outlets in the center of the capital were opened: the BB & Burgers burger chain (on Myasnitskaya, 1st Tverskaya-Yamskaya, Maroseyka), Burger Heroes (in Kamergersky Lane and on the Garden Ring), the Israeli Cofix coffee chain (on Tverskaya and Pyatnitskaya). In addition, the St. Petersburg chains "Marcellis" and Ketch Up Burger entered the Moscow market. A decrease in the number of outlets in street retail was noted among tenants of the banking services and fashion segment. The latter, in turn, left the top three, giving way to representatives of the segment "beauty and health".

According to Svetlana Yarovaya, head of the commercial real estate brokerage department at RRG, Russian street retail as a whole is starting to work on shorter logistics, finally losing its "showcase and advertising" value. «Now the segment rather serves the urgent needs of citizens – food for different tastes and lifestyles (AB Daily, «Vkusville», «Assortment », etc.), household goods and small things for every day («Moskhoztorg»), as well as emotional purchases – gifts, designer clothes, jewelry, flower bases, bakeries, – lists Ms. Yarova. At the same time, the grouping of adjacent segments around certain magnets continues, and it is already quite obvious that in street retail, as in shopping centers, their anchor and dead zones have formed. Another important trend of recent years is a large offer of high quality, formed due to the commissioning of new buildings both on the first lines of established trade corridors (for example, Yartsevskaya) and within the framework of new residential and business quarters (for example, TriBeCa). At the same time, the area can be found from 40 sq. m., which was problematic a few years ago. Such a proposal entails the development of unique one-time concepts, as well as franchises in the street food segment.
RRG reminds that, although fashion operators did not really like to be placed in the street retail format before, a number of successful projects aimed at the so-called fashion audience remain on the market. "These are customers who are alien to shopping malls," explains Svetlana Yarova. Such projects are loved by boulevards, beautiful historical facades and loft spaces, proximity to the metro and streets where the evening and night life of Moscow swirls. A vivid example of – Brandshop in Moscow or Look in St. Petersburg. «On the street» projects related to multi-channel sales, or outlets of well-known brands » are also perfectly placed.

However, fashion retailers still choose shopping malls to enter the Russian market: according to JLL estimates, street retail accounted for only a quarter of the debut openings of 2017 (12 out of 49; by the entry of a foreign brand into the Russian market, the company means the opening of the first monobrand boutique independently or with the help of partners, ed.). Most of the discoveries were made by players in the above-average price segment.

To be continued.

Text: Ekaterina Reutskaya

Photo: shutterstock