The average annual turnover of regional shopping centers (OC), excluding Prague, fell by 25.5 percent year-on-year last year, after six years of growth, according to CBRE’s analysis. The most affected in the centers were gastronomic establishments, where the drop compared to 2019 was 36 percent. Attendance at regional OCs fell by 29 percent year on year last year, but people spent more in the centers. The value of the average shopping basket increased by 5.7 percent to CZK 233 per visit. This follows from the analysis of the Shopping Center Index, which was prepared for the ninth time this year by CBRE.
According to CBRE, gastronomy has been the most dynamic sector in shopping centers in the last three years, with double-digit growth in the past. The space for catering operations expanded in the centers. According to Tomáš Míček, head of the retail sector and CBC OC administration department, gastronomy was closed for about 130 days last year as a result of anti-epidemic measures.
“Last year, the share of shops and services that could be in operation despite the government restrictions played a decisive role in the total area of shopping centers. It was these tenants who ultimately influenced the overall attendance of the center and its economic results,” said Míček.
Fashion, which is the most represented in the shopping area of a typical regional center (excluding Prague), occupying 37 percent of the area, recorded a drop in turnover of 34 percent last year, followed by accessories with a decrease of about 32 percent. According to CBRE, seasonality played a role in these categories. Due to stocks of unsold collections, sellers did not have enough money to buy new goods.
“Services, which showed solid dynamics in previous years, fell by almost 28 percent year on year. The main reason was a dramatic reduction in travel agency turnover, which fell by 68 percent,” said Klára Bejblová, CBRE, market research specialist and retail consulting for the Czech Republic and the region. However, according to her, the support did not come from stores that were open without restrictions. Turnover in stores with breeding needs fell by ten percent, florists and newsagents recorded a decline of six percent. Opticians and pharmacies were the only ones to grow by 1.8 percent.
The number of visitors to the surveyed regional centers was 67 percent lower year-on-year last April. After the release of anti-epidemic measures in May, the situation improved, yet 15 to 20 percent fewer people came to the OC than in the same period in 2019. However, attendance in the second half of August reached a similar level as before the pandemic. Due to another wave of coronavirus and restrictions, attendance fell again by 63 percent in November, and remained 29 percent lower in December.
As well as turnovers, the number of visitors to specific OCs also differed, according to Jan Janáček, head of the CBRE retail rental team. “The lowest decrease – a year-on-year average of 22 percent – occurred in centers with a large share of units with basic needs and services, such as food, drugstores, pharmacies, etc., which could be opened without restrictions. experience shopping centers with an extensive mix of tenants and a range of leisure activities, “he added.
The Shopping Center Index monitors the performance of regional shopping centers, except in Prague, in the Czech Republic. It analyzes a sample of 20 centers, which is 575,000 square meters of retail space. This represents over 35 percent of the volume of shopping centers in the regions, which were visited by 66 million customers last year.
Source: CBRE and CTK
