17.03.2017 09:00
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Іван ЗайцевCentral Manager Forum Lviv, Multi Group, Marina Nesterenko about the first year of operation SEC, new trends in Ukrainian retail, development of the retail in Western regions of Ukraine and competitive with new shopping malls in Lviv.
Forum Lviv was opened in September 2015. The center comprises over 100 shops and a full restaurant-food court area with entertainment such as cinema and children entertainment. It has an underground parking garage with 600 spaces. In the interview to rau.ua director of Forum Lviv SEC Marina Nesterenko told about present and future of retail in Lviv, main trends in the retail property market in Ukraine, and specifics of customers in Western Ukraine.
– In 2016, you celebrated the first anniversary of work. What are the results – they turned out to be higher or lower than it was planned?
– The first year of operation SEC has shown good results, exceeding our initial expectations. This applies, above all, indicators such as the achieved level of occupancy of the mall with quality brand mix (currently the occupancy of the shopping center is 100%) and stable quality traffic (over 2016 works SEC received 10.5 mln. people, which is 40% higher than initial expectations). Also, the financial results of our tenants have shown good positive dynamics of growth.
– What are the main trends in the retail property market in Ukraine can be noted over the last year and a half, after relative stability?
– Ukrainian market has become more interesting for European brands that have become more positive look towards Ukraine, opening its first stores: Obag, Uterque, Maje, Tezenis, and others. Ukrainian brands also began to develop very actively (MustHave, Goldi, Vsі.Svoї, UA Made, L.A.P.T.I., Kleo, VOVK).
If we talk about turnovers of retailers, they have also increased, both in the national currency and in foreign currency, what is clearly a positive signal.
– What are the forecasts for the next couple of years?
– It is difficult to make forecasts, when there is an armed conflict in the country. Under the condition that there will be not an escalation of the situation in the east, there are signs of market stabilization.
– And if we talk not about Ukraine, and specifically on the western areas: what the situation is similar to the rest of Ukraine, and what – is different?
– The western part of Ukraine is interesting for retailers, including for the new European brands.
For example, in the Forum Lviv SEC recently opened the first O bag in the western region. At the same time buyer here has its own specifics and culture of consumption, requiring the highest European quality, more attention to the service and the time for decision about the purchase. Therefore, retailers who open the first stores in the western part of Ukraine should pay due attention to this.
– How has the situation changed in Lviv after the opening of the SEC Victoria Gardens?
– In addition to the Forum Lviv, the city has several other SEC, including the Victoria Gardens SEC. But each mall has its own target audience, location, brand mix and price segment. After opening the Victoria Gardens mall, we didn’t feel the decrease in attendance. On the contrary, the attendance compared with the same months of last year we have increased (for example, the attendance rate in January 2017 by 23% in January 2016). Also turnovers and traffic directly of stores themselves tenants, which we cross, showed no decrease, but rather increased.
– Many retailers say its great interest in Western region: there is higher purchasing power than in central and eastern Ukraine, more Western tourists, including visitors with the purpose of shopping. Can you confirm or deny this trend: what are your observations?
– Lviv is really far more Western tourists than any other city in stolen as a kind of “Ukrainian western gate” for Europeans. For example, in 2016 the city received 2.6 mln of tourists. And the average European tourist, as we all know, has a greater purchasing power than the citizen of Ukraine.
– Who is the greatest traffic generator in the shopping center, according to your data?
– Of course, it is our anchors: the conceptual supermarket Silpo, electronics supermarket Comfy, Cinema Planeta Kino and children’s entertainment complex Igroland; among fashion – anchors – there are brands of Inditex Group, LPP, Mango and LCWaikiki.
– How many operators represented at the food court of Forum Lviv, whether or planned rotation among them carried out? As far as quality food court is important to attract visitors?
– In the food court of Forum Lviv SEC is represented by 7 operators plus 4 restaurants with its own service. Over the year we have changed a few food court operators to operators with stronger concepts. In the near future we are also planning to reformat part of the food court for the entertainment area, thereby increasing its offer in the mall.
– How strong is your entertainment area in the mall? On what basis selected by the operator, and how satisfied with the cooperation with them?
– The entertainment area in the Forum Lviv is represented by an anchor tenant – Cinema Planeta Kino with a unique first in Lviv 4-DX cinema. For the youngest visitors opens his door children’s entertainment complex Igroland. Also, as it already was indicated, in the near future segment of the entertainment in the shopping center will be increased by reformatting the food court area.
– You have achieved 100% occupancy. But after the emergence of new areas does not have to compete for tenants there, anyone of them from the Forum Lviv gone?
– Again, the other malls in the city have a different target audience, price segment and tenant mix. Therefore, intersection of the tenants is minimum. After the opening of new shops, none of the Forum Lviv did not leave for that reason.
Some retailers have opened new additional stores, but in doing so it did not affect on their turn over in Forum Lviv.
– The SEC has been working for more than a year, whether the rotation of tenants carried out, and if so – what are the criteria changed tenants?
– We are constantly working on increasing brand mix of the mall and find replacement for tenants who show unsatisfactory results. For example, in result of the rotation of tenants, recently new brands came to us, such as: O Bag, VOVK clothing studio, iQOS, Adrenaline Park.
– Does the negotiations conducted with someone from global brands, if they have interest in Ukraine?
– Today, the mall has a 100% occupancy rate, so it is difficult to talk about such cooperation in the short term. But of course, we are ready to look for solutions to enhance brand mix, so we keep in touch with international brands who show interest in our market.
– Many management companies note the intensification of brands made in Ukraine. Does it coincide with your observations, some domestic brands are represented in the Forum Lviv?
– We also follow the latest trends in the market, and we are open to all active negotiations with retailers, including a Ukrainian. This question is particularly relevant for the Lviv market. For example, at the moment, in our shopping center there are present such well-known Ukrainian brands: Provance, Goldi, VOVK, Arber. There are also a number of Ukrainian brands, who are interested to go to the shopping center Forum Lviv, and with whom we are negotiating.
– How do you build relations with tenants? Do you develop and conduct joint marketing campaigns, advertising activity, tenants training programs?
– First of all, we have been established communication between the marketing departments. On a regular basis, without exception tenants receive a list of planned activities of the SEC. With individual concerned brands we held brainstorm sessions, to discuss all possible options for their contributions and integration in these activities with the possibility of additional illumination of each individual brand. Every month, after key activity of the SEC was held, we are performing analysis of its effectiveness. For this analysis we are collecting quantitative and qualitative data from tenants. Thus we can ensure only those marketing activities that maximize positive impact on the performance of our tenants.
– What, in comparison with other shopping center, you are different for retailers? Is there any news on the program, additional bonuses, and so on?
– In the management of the Forum Lviv SEC is fully applies quality, innovative European approach, in all areas, whether in marketing or technical aspects. Among other things, this is reflected in the numerous of European awards, which the SEC already received in the first year of operation.
Among them:
– What is the principle of formation of rents fee – fixed or fixed +%, or only a percentage? Do you tethering the rate to the dollar / euro, or targeting on the hryvnia?
– Rent fees are fixed in the euro, have a fixed component and a percentage of turnover, plus operating and marketing fees.
– What tools are you using to attract the visitors? According to your observations, how important is it for the shopping center the presence in the Internet and in social media, how this channel of promotion is effective?
– In our marketing activities we use a different sets of effective tools. An important place is occupied by an extensive advertising campaign. For it, we use traditional media channels – outdoor advertising, advertising on transport, radio, advertising inside the mall, advertising in news programs on local channels; and new media, among which an important place occupied by social networks. During the year, we have managed to bring our pages in social networks at a significant level – Forum Lviv pages in Instagram and Vkontakte are the best pages of the shopping center in the Ukraine, by a number of subscribers, Facebook – on the 5th place. In addition, what is more important, we are seeing a high response rate, we mean the feedback / response and engagement of our audience to our information posts that allows us to effectively promote information about the activities of the shopping center directly to our target audience.
Given our location in the city center, one of the most important focuses for us is to inform tourists about the shopping center. Therefore, emphasis is also placed on image advertising, which allows us to attract this audience.
With respect to such instruments as the events of the shopping center – every time we are trying to surprise Lviv citizens. To all events we are putting strict requirements on quality, originality and relevance of the event to our target audience.
The totality of these tools allows us to maintain our position as the best fashion location in Lviv and a favorite meeting place for Lviv citizens and guests of the city.
– Earlier Multi intended to open two more of the Forum in Kharkov. What is now with these projects? Is there any hope for them to intensive care?
– Today company is fully focused on the management of the Forum Lviv shopping center. As for the Kharkiv projects – their current development (irt the construction) are under assessment.
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