Q2 results: street retail segment
According to the results of Q2 2022 the volume of vacant space demonstrated slight
decrease by +0.9p.p., and average level was 8.9%. This is the minimum vacancy rate since the beginning of the COVID-19 pandemic (in February 2020 this rate was 8.3%).
Maximum increase in the volume of vacant space occurred in the shopping area of Belinskogo street (+4.5 p.p.) and Liteyny prospect (+3 p.p.).
On Nevsky prospect - the main shopping corridor, the number of empty retail spaces has raised by 0.6 p.p., mainly due to job growth (+4.4 p.p.) in Staronevsky prospect zone (from the metro station Ploshchad Vosstaniya to the metro station Alexander Nevsky Square). The average vacancy rate in the shopping area of Nevsky prospect is 10.4%.
Main developing street retail spheres in the main shopping corridors are: trading and catering. The largest part in the tenants’ structure is occupied by the trade sector – 48% (–1 p.p. to Q2 2022) and catering – 33% (–1 p.p. to Q2 2022). Service sector industries account up to 9%.
In H1 2022 the maximum number of closures accounted for catering enterprises (46%), fashion operators (19%), FMCG sector retailers (7%).
Catering enterprises (44%), fashion industry operators (16%) and representatives of the FMCG sector (11%) also led in terms of the number of new openings in the central shopping corridors of the city.
Operators of the drogery segment and representatives of the financial sector completely suspended their development in the first half of the year. Specialized retail outlets are expanding their presence.
In terms of the number of catering outlets openings and closures Nevsky prospect shopping area was in the leading position as of Q2 2022: 8 establishments were closed, and 10 were opened during the analyzed period
According to the outflow of fashion operators in Q2 the shopping area of Nevsky prospect zone (5 outlets have closed, the number of new openings is 5) was also in the first place.
Q2 was traditionally characterized by a higher level of business activity of tenants compared to the 1st quarter of the current year. However, the market failed to achieve the indicators of 2021 in the current economic conditions. The number of new openings was 26% lower, the number of closures decreased by 17%.
In general, according to the results of H1 2022, the number of opened enterprises exceeded the number of closed ones by 5.9%.
The declining indicators of tenant rotation indicate a low level of business activity in the market of built-in retail premises in St.Petersburg. So it was in H1 2021 - 3.3%. According to the results of H1 2022 – only 2.7%. This fact also indicates an increase in the exposure time of the released retail premises on the market.
The maximum activity of tenants in H1 2022 was observed in the areas of Bolshaya Konyushennaya and Vosstaniya street.
The level of business activity on Nevsky prospect remained virtually unchanged in the first half of 2022 compared to the same period last year and amounted to 3.7% (4.0% in H1 2021).