MAPIC 2016, the international retail property trade show, opened in Cannes on 16 November. The Head of Operations of ECE Russland, Alina Strelkova, addressed the Russian session.
MAPIC 2016, the premier international retail property event , is held in Cannes, France, on 16–18 November. Every year, the event brings together investors, developers and retailers from around the world.
Alina Strelkova addressed a special Russian session under the heading “The consumption model: from basic needs to more sophisticated demand / key facts for growth”. She discussed the retail property situation in the present economic crisis, and how the consumption model has changed as a result of the economic downturn.
“We will not see any new shopping centers emerging in the next 2–3 years. And the vacancy rate this year is quite high, at around 10 percent, as a result of new property openings. We think that the indicator should drop to 5-6% at most after 6-9 months in operation,” said Ms Strelkova.
Experts note an increase in popularity of the health and beauty segment, as well as the emergence of new formats. For example, pharmacy chain 36.6 has opened hypermarkets, Moskhoztorg now has its own household stores, and entertainment and educational centers (Kidzania, Akademia Intellekta, Yaselevo and Zamania) are taking the place of traditional children’s leisure centers. Sports brands are launching their own clubs on the back of the healthy living craze and ahead of the FIFA World Cup in Russia. Restaurant concepts are also becoming more popular in shopping centers.
“Shopping centers are becoming places for meetings and entertainment, with co-working stations and mobile libraries. Just two years ago, Wi-Fi in a Russian shopping center was something incredible, but now it’s a must-have, not only for shoppers and tenants, but also for shopping center developers,” said Ms Strelkova.
Ms Strelkova also discussed the online migration of retailers. In particular, KupiVIP, a major fashion retailer, is considering sites in shopping centers in Moscow.
The Russian Session at MAPIC was attended by representatives of Magazin Magazinov, Fashion House Group, Undiz and SRV.