Retail market H1 2021
Offer
According to Maris analysts, as at Q2 2021 St.Petersburg market has not been replenished with any high-quality mall. The only new facility put on the market in the first six months remains the largest furniture and interior center in Europe – Kubatura - which opened in Q1 2021. The gross volume of supply in the retail real estate market increased by 110,000 sqm.
For H2 2021 the opening of about 68 ths. sqm of new retail space (GLA): Mixer, Baltic, satellite, Yacht, etc has been announced.
According to the results of H1 2021, the leasable area of the existing shopping centers of St. Petersburg is about 2.93 mln sqm, hypermarkets – 804 ths. sqm, specialized malls (sports, children’s, furniture) – 458 ths. sqm in total.
In 2021 the trend continues to reconstruct large-format retail objects of consumer goods into smaller-scale supermarket formats. The areas of trading halls are decreasing, and, conversely, shopping galleries are increasing in order to create additional points of attraction.
Geographical structure of offer has not changed over the past few years. Primorsky District leads with 15% of shopping centers operating, and Moskovsky District is on the second place with a share of 14%. Vyborgsky district of St. Petersburg closes the top three - 11%.
Demand
The maximum activity in the retail real estate market during H1 2021 was demonstrated by fashion operators, which accounted for a third of new openings.
In H1 2021 ten new fashion-brands appeared on the market. This fact testifies to continuing interest of fashion operators in St.Petersburg market on the one hand, and to offline trading on the other. In addition to fashion brands, representatives of perfume and cosmetics industry, accessories and services of beauty industry entered the market.
The development of the catering network does not reduce the turnover, mainly the mass-market segment. New restaurants have almost completely shifted their activities in the street–retail segment. Only 3 restaurants were opened within framework of format shopping centers during H1.
The market continues to be influenced by the development of remote work formats supporting the demand for home goods, repairs and decor. In H1 2021 this sector ranked third in terms of demand.
The trend of increasing demand for non-essential goods remains stable: jewelry, souvenirs, gifts, flowers, hobby goods, etc.
Interest in the development of new projects of gastronomic spaces is not decreasing in the city.
In H1 2021 projects of creating food halls in Atlantic City mall, «Nord», «Akademicheski», «Kontinent» и «Zanevsky kaskad» were announced, as part of the reconstruction of the Moscow and Sytny markets.
Vacancy
According to the results of H1 2021 on average 6.0% of the market was vacant. Vacancy rate has not changed compared to the indicator as of the end of 2020.
Commercial conditions
Due to the low vacancy in high-quality shopping centers in H1 2021 there are no significant fluctuations in the sequestered rental rates for the most liquid premises.
Development forecast
In the medium term, the increase in supply will occur mainly due to the implementation of projects for construction of district shopping centers in locations of active residential development. The process of reconstruction of outdated retail space will continue, however, against the background of declining purchasing power of population it will not be as active as in previous years.