Most shopping centres in large cities have become obsolete and need a transformation. They stopped meeting the needs of the customers and the requirements of the tenants as they were set up in a different economic reality. Those shopping centres which are not ready to change will be facing a decrease in turnover and lose their footfall to more dynamic competitors. Which trends and reconceptualization the market forces us into is what the editor’s office of SCR talked to our experts about.
Accessibility is the key
According to deputy head of retail consulting with CORE. XP Dmitry Kutkin, major drivers of reconceptualization and renovation are the changes in shopping behaviour and preferences. There can be an array of reasons for that, which can be connected to the development of the society and changes in generations or affected by external factors such as crises or a boom in an industry.
Shopping centres soon stop meeting the needs of the market, adds the regional director of retail department with Knight Frank, Evgenia Khakberdieva. Also, sometimes, changes are important for those shopping centres which initially picked a wrong concept.
The regional director of strategic consulting Nikoliers, Vladislav Nikolaev mentions that the reconceptualization is more vital for the shopping centers with GLA of 20-60 m2 built before 2008. “The recent trend of the past five years is the focus on accessibility and convenience. Developers are doing their best to be as close to the customer as possible, so neighbourhood shopping centres are being developed in order to create a full eco-system with all the basic needs of customer in one place: shopping, catering, entertainment etc.,” explains Khakberdieva.
Trends and reconceptualization for shopping centres and retail