Smaller retail schemes prove more resilient to pandemic shocks
Small and mid-sized retail schemes display more resilience to pandemic shocks in comparison with large and very large shopping centres. They report significantly smaller footfall and turnover decreases, and are able to make up for losses more quickly.
In May-October 2020, a period with no shopping restrictions, average turnover for tenants across all categories was close to 5% higher in small and mid-sized shopping centres (under 40,000 sq m) than in large and very large retail schemes (above 40,000 sq m).
-Although far from being a universal trend, some brands are seeing turnover rise or fall only marginally. Fast food chains and the ‘gift sector’ are clearly emerging as winners on this uneven playing field. F&B tenants who are unable to provide takeaway services or for whom this is economically unviable face an uncertain future, – says Paulina Bauer, Associate, Asset Services, Cushman & Wakefield.
Considering retail formats, tenants are currently more interested in expansion through retail parks, which is likely to translate into lower vacancy rates in such retail schemes.
– By providing a quick and convenient shopping experience, retail parks are ideally aligned with today’s consumer needs. This format has gathered momentum in Poland in recent years and its appeal has grown during the pandemic in particular. Minimum communal areas, convenient car parks and separate entrances to each retail unit are both very attractive to customers and provide a significantly higher level of safety, – says Małgorzata Dziubińska, Associate Director, Consulting & Research, Cushman & Wakefield.
Retail parks sized between 5,000-10,000 sq m account for more than 30% of the retail development pipeline
Approximately 380,000 sq m of retail space is currently under construction and scheduled for delivery in 2021. A substantial proportion of the development pipeline (over 30%) is underway in retail parks under 10,000 sq m.
-Retail parks have grown in popularity in recent years. During the pandemic they are clearly favoured for their limited communal areas and separate entrances to each store, giving consumers a convenient, fast and safe shopping experience. As a property manager with several years of experience in commercial buildings, including five retail parks, I have thoroughly analysed the pandemic’s impact on their performance and I can confidently say that it is retail parks that are emerging unscathed from the pandemic, – says Paulina Bauer, Associate, Asset Services, Cushman & Wakefield.
Cushman & Wakefield
Last Updated on April 7, 2021 by Karolina Ampulska