Retail turnover in Ukraine in 2020 increased by 12.7% compared to 2019, which is associated with significant growth in the e-commerce segment and high domestic demand, the press service of CBRE Ukraine said.
The 2020 retail real estate market survey reports that in 2020 Ukraine recorded impressive annual sales growth rates in the e-commerce segment. According to Euromonitor International, the e-commerce segment achieved 8% of annual retail turnover, up 45% from 2019.
“Thanks to this significant growth in e-commerce, more and more retailretailers are focusing on the development of omnichannel commerce to compete with online platforms,” Radomyr Tsurkan, Managing Partner of CBRE Ukraine, said
A significant number of international brands such as Colin’s, IKEA, Miniso, Massimo Dutti, Uterqüe, Stradivarius and Pull & Bear launched online stores during 2020. Groceryretailer ATB launched its first online store during the lockdown and introduced a new click & collect service, which allows you to pick up groceries from the store after an online purchase.
The expert also noted the oncoming transfer from online to offline: some e-commerce websites (Rozetka, Makeup) actively opened click-and-mortar stores to complement the online experience for customers who want to check the goods live before buying.
“E-commerce will continue to expand towards multichannel retail, driven by a sharp increase in consumer dependence on online shopping during 2020. Rapid improvements in delivery services are also driving the expansion of online stores,” he commented.
According to the expert, with increasing competition, more and more e-commerce players will open and expand stores or points of delivery in order to improve or complement the online customer experience with a physical or offline experience. More traditionalretailers are also expected to focus on developing online platforms to keep up with consumer habits.
CBRE is the world’s largest commercial real estate consultancy and investment firm, with 2020 revenues of $ 23.8 billion. The company is one of the 500 largest companies in the world according to the Fortune 500 ranking (128th in 2020).