Shopping malls are empty

Shopping malls are empty

Shopping malls are struggling with decreasing turnover and increasing costs. Many stores in such places are no longer profitable.

Shopping centers have been hit hard by the pandemic. Last year was already good for them – in the last eight months of 2021 their turnover was at the level of 2019. However, already in January and February this year the positive trend reversed. The number of visits fell again, as did turnover. In January, they were 13.4 percent lower.

The reason for this situation is weak consumer sentiment due to rampant inflation and rising interest rates. Shopping in shopping malls was also curtailed in late February by the war in Ukraine. Paweł Kapłon, head of the supervisory board of the Tatuum chain and a board member of the Association of Polish Employers in Trade and Services, says that presence in shopping malls is no longer profitable. The costs are very high and the customers visit the stores operating there less and less frequently. As a result, many stores operating in shopping centres are not profitable.

More and more companies limit their sales network. This is what LPP, CCC, Kazar, Gino Rossi, Zara or H&M did.

Meanwhile, the retail space is increasing. According to the calculations of Colliers, in 2021, developers put into use over 330 thousand. sqm. This year, another 300 thousand is planned. In 2019, the vacancy rate reached 4 percent, currently it is almost 5.5 percent.

Source: https://biznes.gazetaprawna.pl/artykuly/8390418,handel-galerie-handlowe-inflacja-wojna.html

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