Because of the pandemic, a significant number of Polish consumers are increasingly turning to smaller stores, which are located outside traditional shopping centres. Is this an opportunity for high street shop owners?
It’s not just about rent
There is still a large number of companies on the market which were in more than good shape before the appearance of COVID-19 and had considerable cash reserves. These companies are now looking for an opportunity to take over premises that offer more attractive rental rates than before March last year. Therefore, we can expect over time that some of the vacated premises will be occupied by new tenants. However, this is a drawn out process, as the process of leasing premises on high streets is much more challenging compared to other commercial facilities, such as shopping centres or office buildings,
explains Anna Wdowiak, Senior Consultant at Retail Agency, JLL
Tenants, especially companies with large networks, expect that the process of obtaining high street locations to be easier and the property owners themselves to be flexible in negotiations. Having overcome such challenges, retail chains will look to apply the same high street policy in Warsaw that they have already adopted in other foreign markets. One ought to remember that large, well-known brands will be followed by customers, and this in turn will attract more companies to a particular location,
adds Anna Wdowiak
A strategy is needed
We underlined that among the supporting factors, it is necessary to increase pedestrian traffic, build the A12 - Plac Konstytucji metro station, and create a representative, high quality green public space. The selection of tenants would be based not only on rental issues, but also on the desire to improve the quality and uniqueness of the offer. Also of key importance is the influence of these tenants on street life, the extension of store opening hours, as well as the attractiveness of the stores’ windows,
comments Anna Wysocka, Head of Retail Agency, JLL
The pandemic may accelerate changes that the town hall had already started to introduce before the COVID-19 pandemic. An example of this is Aleje Jerozolimskie, where the range of tenants occupying commercial premises is more carefully selected to fit the adopted offer strategy, and which should be consistent and meet actual shopping needs. However, cooperation between the city and private owners is of crucial importance. Both parties should be interested in discussing premises policy, which include, for example, the creation of locations with a specific tenant profile. The pandemic affects everyone without exception, and the growing vacancy concerns mean that the city and private owners should now be more determined to create a common strategy,
adds Anna Wysocka
A good way to diversify
Although this shows that Poles still prefer the traditional method of shopping, their habits still continue to change. This is all the more so because brands are diversifying their strategies and are more focused on hybrid trade. So independent, easily accessible locations located on the high street are increasingly important. It is also worth noting that large, well-known tenants are already operating on high streets, as exemplified by Marszałkowska Street and the Wars, Sawa and Junior scheme. However, in order to attract more companies to the high street, it is necessary to create attractive lease conditions and make the desired square meterage available to brands, for example, by combining the premises,
summarizes Anna Wdowiak
