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NAI Ukraine represented retail projects at Shopping Center Forum, Warsaw. Ongoing negotiations with new retail brand regarding entering the Ukrainian market

NAI Ukraine represented retail projects at Shopping Center Forum, Warsaw. Ongoing negotiations with new retail brand regarding entering the Ukrainian market

02.10.2019

NAI Ukraine’s team took part in Shopping Center Forum in Warsaw. The main goal of participation was negotiation with international brands.

‘During the exhibition, we had meetings with representatives of such brands as: Castorama, Douglas, Deichmann, Sephora, Amrest, Big Stars, Martes Sport, Tatuum and others,’ says Marina Suprunenko, retail sales manager. – ‘After H&M, IKEA, Decathlon entering to Ukrainian market, companies are changing their attitude to our country’.

Retailers understand that the competitiveness in some segments of goods and services is quite low, and they have every chance to gain a foothold and dominate their niche. They are monitoring development of Ukrainian real estate market.

Everyone is amazed at the scale of the “mega-mall network”. One of them – Lavina Mall, a one-story shopping center, which successfully operates and demonstrates record turnover in Kiev. Huge amusement parks, located in mega-malls, are considered by foreign brands as an additional strong incentive for their placement. They are well aware that entertainment attracts large customers’ flows, says Marina Suprunenko.

Economic performance is the most serious argument for many international brands when they decide to enter the market, says Vitalii Boiko, founder and CEO of NAI Ukraine. – Currently, retailers are most impressed by indicators related to the large volume of the consumer market in Ukraine.

They include such factors as:

  1. Ukrainian retail sales shows double-digit growth in comparison with other European countries: Y2018 + 14.4% YoY; H1 2019 + 10.4% YoY.
  2. Auchan: Y2018: +10.8% increase in retail space volume on the Ukrainian market. Y2018: H&M and Decathlon entered Ukrainian market. H&M has plan to open more than 17 stores in Kiyv for 2019. IKEA is opening its 1st shop in Ukraine.
  3. Index of Economic Expectations: +40% YoY in H1 2019, making 103.6 pp.
  4. Retail spending takes 80% of total personal income. Wages growth: Y2018 +40% YoY; H1 2019 +19.6% YoY.
  5. Consumer Behavior Index increased by 7.6 points in H12019 making 95.6 – reached historical highest and doubled over two last years.
  6. GDP of Ukraine is one of the most stable in Europe. The level of GDP can grow to 5% for the next year. The level of GDP can shows double-digit growth for the next 5 years.
  7. Fitch Rating, Moody’s and Standard and Poor’s have upgraded Ukrainian short-term foreign and local currency sovereign ratings to ‘B’ with positive outlook.
  8. Inditex, LPP, KarKat Fashion (Springfield, Women’s Secret) new offline shops opening: + 25% overall.
Shopping Center Forum – the largest exhibition of commercial retail real estate in Central and Eastern Europe. Dozens of well-known international brands visit it annually. The event also hosts a conference where retail market representatives share their practical experience.

 

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