Some 65% of retailers surveyed by international company Colliers Ukraine expect recovery in the Ukrainian retail market in the next year or two.
“Over the entire period of the spread of the pandemic, retailers have adapted their business processes and potentially understand where to move. As soon as the tough quarantine restrictions are eased this year, we can state the presence of deferred demand from buyers. After the quarantine, in a fairly short period of time, there is a stabilization of tenants’ turnover,” Director of Retail Agency at Colliers Ukraine Ihor Zabolotsky has told Interfax-Ukraine.
Colliers Ukraine told Interfax-Ukraine that more than half (55%) of surveyed retailers were more comfortable with the total restrictions of this year, or were more prepared for the next closure of their outlets than in 2020. In particular, if last year almost 35% of surveyed retailers expected that it would take six months to recover the situation, then according to the results of the 2021 survey, only 13% believe that it will take six months to restore the pre-quarantine indicators after the spring quarantine in 2021.
As retailers note, online sales cover a larger percentage of operating costs this year compared to spring 2020.
Anti-crisis measures that retailers used to cut expenditures during the lockdown were also softer. As noted in Colliers Ukraine, this year the number of retailers who sent their staff on unpaid leave has decreased. Compared to spring 2020, the share of retailers who cut staff and closed outlets as anti-crisis measures decreased from 69% to 50%.
Some 60% of retailers noted the presence of supply disruptions during the spring of 2020, this year only 40%.
According to Zabolotsky, this year the number of operators who plan to reduce their outlets in the short term has decreased to 24% from 36% in 2020. About a third of retailers are planning to expand their chains (15.5% in 2020).
The expert added that today there are changes in the standard commercial terms of lease agreements: in a number of new agreements, the emphasis has shifted towards the percentage of turnover.
Colliers International is a leading diversified professional services provider, including investment management in commercial real estate. The company’s offices are represented in 67 countries of the world.
