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Ukrainian Retail optimized business, but doesn't stop development,



The political crisis and the economic downturn are making adjustments into development of commercial real estate of the capital.
By results of 2014 the real estate market operators faced a noticeable decrease in the volume of trade and weak consumer activity. According to the Statistics Service of Ukraine retail turnover of trade enterprises in Ukraine in 2014 decreased in terms of analyzed prices by 9% compared to 2013 . Despite the situation in the country, foreign operators kept on entering the Ukrainian market last year: in 2014 - 14 new international brands opened in the country. This trend is likely to continue this year.

Opened in 2014

  • Pedro del Hierro (Clothing, Spain) - Gulliver mall
  • Sinsay (LPP Group, Poland) - King Cross mall, Lviv
  • Keddo (shoe store, UK) - Kreschatik str., Kiev
  • Vittorio Spernanzoni (shoes, Italy) - Saksaganskogo str., Kiev
  • Twin Set (Women's clothing, Italy) - Gulliver mall
  • Paker (multi-brand shoe shop) - Ocean Plaza mall
  • Coffee Shop Company (Austria) Lviv, Sobornaya 2sq
  • Paul (confectionery, France) Yaroslav Val, 26 str., Kiev
  • Calzedonia (underwear, Italy) - Caravan mall
  • Intimissimi (underwear, Italy) - Caravan mall
  • Prenatal (maternity clothes, Italy) - Dream Town mall
  • Vapiano (restaurant chain, Germany) Arena City, Kiev ,. Hnatiuk, 12 str, Lviv
  • Peacocks (Clothing , UK) - Pyramida mall
  • Fika (catering, Sweden) Street retail, Rovno

According to the leader of Ukrainian market of consultancy and management of commercial real estate UTG, negotiations are in progress with major international operators, who are not represented in the Ukrainian market, but their entry is expected in 2015 with the opening of large-scale projects. In total 8 international operators  are announce to allocate their stores this year in Ukraine. And given some improvements at the end of the first quarter of 2015, the prospects for the emergence of new global retailers have a chance to realize. So, at the end of the first quarter of this year, large chain retailers in the segment of the fashion gallery "middle-" and affordable fashion strengthened their positions by several points. Another stimulus for the development of trade is lease payments reduction. Management companies of the shopping centers of Kiev in 2014 revised the conditions for tenants (especially those who have turnover significantly decreased ), lowering the rental rate in dollar by 10-40% or fixed currency exchange rate unless the situation stabilizes. Thus, the rental rates for shopping area of 100-200 sq  m is $ 10-53 per sq m monthly. (without VAT and OPEX), depending on the location of the shopping center and its attendance, the popularity, the total pool of tenants and anchors’ staff.

Prospects for 2015

  • H & M, clothing Sweden 
  • Defacto, clothing Turkey
  • Zara Home, household goods Spain
  • Cortefiel, Spain
  • Converse, US
  • Wendy's, catering, US 
  • Subway, catering, US 
  • Violeta, women's clothing, Spain
On the background of all the above-mentioned, retailers still have an opportunity significantly improve the location of their outlets. In connection with this the tendency of tenants rotation has been observed - retail-operators optimize their businesses by moving from unprofitable stores to more successful centers.


Related shopping malls and stores:

More about shopping malls in Ukraine



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