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The growth in importance of small shopping centres and retail parks in CEE-16 has strengthened

ExCEEding Borders Office 2021

Discount retailers show growing interest in broadening the locations of their stores, including traditional shopping centres

 

Discount retailers predicted to find Central and Eastern Europe (CEE) market very attractive as evidence shows shoppers have favoured the ‘value for money’ approach these retailers provide - reveals a new report by Colliers “ExCEEding Borders CEE | December 2021 Alive & Kicking CEE-16 on the radar of discounters”.

 

The report authors reveal that despite the ongoing pandemic a positive bounce in GDP has been seen. Yet the combination of the growth in inflation, and problems relating to the global supply chain, which add to the growing cost of products and resources, all contribute to the challenges faced by producers, retailers and, ultimately, this passes on to the consumer. Due to the fact that the long-term impacts of the pandemic are still unknown, the growth in importance of smaller shopping centre formats and retail parks has strengthened. The multiple number of schemes under construction or in advanced stages of planning across CEE region confirm this trend.

 

“Despite the Covid-19 pandemic both food and non-food discounters continue to expand In Latvia. The most remarkable market entry in 2021 was done by LIDL that opened their first 15 stores at once in October this year followed by 2 more stores opened since then. Other discount brands such as Mere, FixPrice, Pepco and others continue to expand in Riga and in other notable cities,” says Jevgenija Kiselova, Associate Director at Colliers Retail Agency.

 

Discount retailers, both food and non-food, often play a crucial role in retail parks. Smaller retail parks are focused on the everyday shopper who visit them regularly, which is why food or non-food discount stores are typically the anchor tenants in the majority of such complexes. This trend applies to both the retail parks in main cities, as well as schemes in smaller towns. It is the result of the changing purchasing behaviour of CEE inhabitants. However, the growing interest in the location of stores within traditional shopping centres can be seen as well.

 

“Smart-shopping” trend

A huge potential for discount stores remains. A good proportion of CEE consumers are often buying goods in different shops, depending on which one offers the most favourable conditions. This “smart-shopping” trend is preferable for discount retailers. In addition, discounters appear to have suffered less in comparison to traditional retailers. Often located in smaller schemes, with outdoor parking and individual entrances, discounters have experienced slightly less disruption brought about by the different regulations or customer concerns during the pandemic.

 

See the research >>>


Related Experts

Jevgenija Kiselova

Associate director | Retail Agency

Riga

            Jevgenija started her professional career in real estate within the street retail sector, promoting new brands and re-negotiating new lease terms with existing clients. In 2017 she successfully closed the biggest retail premises sales deal over the past 5 years for Hesburger with the deal value was over EUR 1 mln. Further on, she has turned her focus on the shopping centres and started a collaboration with major SC owners in Riga. Jevgenija, being a member of Colliers EMEA retail team, actively works on new brand attraction to the Baltic market and regularly takes part in the leading retail event in Europe. Jevgenija also participated in the recent MAPIC event, representing the Baltic retail market.  Jevgenija is taking active part in market report webinars and presentating all latest retail trends. 

       Furthermore, she developed the new concept for the  SĀGA Lifestyle shopping centre, which was  commissioned in November 2020. During that process Jevgenija and her team have leased 52 000 m2 and have launched the new concept of the shopping center in Lavia, which is  located just near IKEA.

    

AREA OF EXPERTISE

Representation of tenants / landlords in leasing retail properties;

Negotiation of the lease terms on behalf of landlords and tenants;

Attracting new clients and brands cross boarding.

 

When representing shopping centres Jevgenija advised on:
• evaluating and preparing development plans for landlords;
• repositioning of existing shopping centres,
• creating and implementing new leasing strategies.

 

When representing the brands Jevgenija advised on:

• expansion strategy; 

• s positioning on the market;
• lease agreement conditions 

 

 

View expert

Anastasija Ruža

Head of Marketing & PR

Riga

Experienced Marketing&Communications Manager with a demonstrated history of working in the financial services industry. Marketing professional with a MBA focused in Marketing, business management from RISEBA, MBA.

View expert