The first weeks of the new normal after the "defrosting" of trade were surprising: on the one hand, footfall was higher than expected, while on the other hand, there was an increasing wave of renegotiations of agreements, according to the latest BNP Paribas Real Estate Poland report summarising Q2 2020 in the retail market.
After weeks of isolation and living in fear of the coronavirus, it was hard to imagine that shopping centres would be stormed immediately after the restrictions were lifted This does not change the fact, however, that both the average footfall and the average turnover, reported to PRCH by landlords, were growing week by week. The battle for retail with the virus continues, and despite the signs of improvement, we will still have to wait several months for the market to recover fully. On the one hand, this year can be generally considered as a lost year in terms of revenue and chain development, but on the other hand, the current problems compel us to search for non-standard solutions, which can be invigorating for the whole industry and bring many improvements that are better suited to the expectations of modern consumers, especially those representing the youngest generations
Patrycja Dzikowska, Research and Consultancy, BNP Paribas Real Estate Poland
In Q2 2020, the supply of new space amounted to only about 92,000 sqm, which was far from the average recorded at that time in recent years. The authors of the report point out that most of the new space (almost 50%) was delivered in major agglomerations, and a little less (about 30%) was delivered in the segment of cities with less than 50,000 inhabitants.
The customers were provided, among others, with the retail and foodservice part of the mixed use project Elektrownia Powiśle in Warsaw, which is an example of both a revitalization bringing new life into the old post-industrial walls and the creation of a place with the retail and services offer adapted to the evolving expectations of customers.
It is worth emphasizing the growing role of the small convenience retail schemes. During the period from April to June, projects such as Rondo Hakena Park and Retail Park Mieszka in Szczecin, Retail Park Chojnice and Retail Park Kasztelania in Chrzanów were opened.
By the end of the year, additional 250,000 sqm of space can be expected, provided that the pace and continuity of developers' work are maintained. As of the end of June, there was a total of over 480,000 sqm under construction. Despite the growing interest of investors in retail parks, shopping centres are still the dominant format in the market in terms of floorspace and account for 61% of the total volume of space currently under construction. Among the projects under development, small and medium-sized centres and retail parks are in the lead. Only five of the facilities currently under construction are expected to have more than 20,000 sqm of leasable space.
The crisis caused by the Covid-19 pandemic will be a challenge for the whole industry and will probably exacerbate the problems of projects and retailers that had already been experiencing difficulties. One of the first victims was the Sukcesja shopping and entertainment centre in Łódź, which ended its operations only 5 years after the opening.
The second quarter of the year did not feature many débuts. Urban Outfitters in Elektrownia Powiśle launched its first flagship store in Poland. Galeria Młociny in Warsaw opened the first Modivo shop in Poland. The multibrand store with exclusive clothes belongs to the same owner as eobuwie.pl stores, and combines offline and online shopping as well. A German brand with the "plus size" fashion Ulla Popken also premiered. At the same time, four brands disappeared from the market - Camaieu clothing shop, Papa Diego and Van Dog restaurants, as well as Mole Mole bookstores.
