Street retail market Q3 2021
According to Maris’ analysts the results of H1 2021 outline a tendency to reduce the volume of vacant space. The negative dynamics of vacancies was demonstrated by: Nevsky Avenue (–2,7%), Bolshoy Avenue (–1,9%), Rubensheyn street (–2,8%), Vosstaniya street (–0,7%). After the vacancy growth in Q1, which occurred as a result of «December lockdown», the volume of vacant retail space in Sadovaya street area – Sennaya square returned to the level of the end 2020.
In some areas it was possible to observe the first signs of recovery in demand after the December events. The level of occupancy by tenants of these corridors didn’t reach the values of the end of last year in the H1 of the year. In Q2 the volume of vacant space on Liteiny Avenue and Bolshaya Konushennaya Street.
In H1 vacancy growth was observed with no signs of recovery in demand in the zones of the 7th line of V.O., Belinskogo street and Nevsky avenue in the part from Admiralteysky to Griboedova canal.
The average vacancy rate in the main central trade corridors of the city by the end of H1 was 9.9% (-1.2 p.p. by 2020).
The predominant share in the tenant structure of the central shopping area of the city is occupied by trade companies – 47% (+1.0 p.p.by the end 2020). The second largest - catering, the share of which increased slightly in Q2 by the end of the year by 32% (+0.5 p.p by December 2020). Share of service sector enterprises is quite stable in the market – 10%. After a slight decrease in Q1, demand from this sector of the economy recovered in Q2.
In H1 2021, the number of newly opened enterprises turned out to be 40% less than the number of closed ones. The greatest damage was inflicted in the catering sector. In H1 several places were closed: Porto Maltese, Sirtali, J. Ramen Taproom Beer Cafe and others. By the way, comparing with the results of H1 2020, it should be noted that the number of closures in the catering sector decreased by 38% this year.
Among the losses in the fashion segment of the central trade corridors can be noted: Via Vittorio, FIKSSON, SёSTRY Mamutiny, St. James, Pal Zileri and others. The number of closures in the fashion segment by the end of H1 has almost halved compared to the same period in 2020.
Level of tenant rotation on the central shopping arteries of the city in the H1 2021 was 12.4%. Maximum level of rotation was recorded in the area of Liteiny Avenue (from Nevsky Avenue to Belinsky Street), where as of end of H1 every fourth space was empty.
Tenants were actively replaced in the shopping area of Sadovaya and Vosstaniya streets (from Vosstaniya square to Zhukovskogo street), as well on Nevsky Prospekt in the part from Griboyedov canal to Vosstaniya square.