baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Belarus Retail Market
Retail Market
Billion EUR
Dynamics of retail
turnover in the Republic
Belarus
Source: National Statistics Committee of the
Republic of Belarus
20
18
16
14
12
10
8
6
4
2
0
2004
2005
Billion EUR
2006
2007
2008
2009
Percent of previuos year
2010
Structure of retail sales
Source: National Statistics Committee of the
Republic of Belarus
80%
70%
60%
50%
40%
30%
20%
2004 2005 2006 2007 2008 2009 2010
Food goods Non-food goods
140%
120%
100%
80%
60%
40%
20%
0%
OVERVIEW
2010 can be considered as a year of recovery
in the retail and services segments in
Belarus. Retail turnover in Local currency
(Belorussian Rubles) increased by 17.1 per
cent relative to 2009. Retail turnover in EUR
figures increased by 25.4 per cent, amounting
to 17.6 billion EUR This figure is 1.5 billion
more than in 2008, which was previously the
most successful year for the Belarusian
retail. It is necessary to consider a major
factor in the increase of EUR turnover was
due to the fluctuation and devaluing of the
EUR currency exchange rate. This is evident
when it is considered that the increase of
retail turnover in USD amounted to just 0.3
billion for the same period.
Food retailers were the most stable type of
retail operation during the crisis.
The retail turnover structure also underwent
some changes. In 2009 there was a dramatic
decrease of sales volume and an increase of
the share of foods in sales structure. In 2010
the share of foods decreased by 1 percentage
point, amounting to a 50.1 per cent share of
the total sales. An increase in real wages
saw further reduction of food sales in the
total retail sales volume.
Emergence of retail chains (“convenience
stores“, supermarkets and hypermarkets)
became the main trend in the retail market in
2010. Development mainly took place in
regional areas because of fierce competition
in Minsk’s retail segment.
Decrease of non-foods in retail sales
structure as the consequence of crisis is
ongoing and is constraining development
actively in segments such as home appliances
and clothing. Among non-food retailers
“Buslik”, which operates children’s’ product
stores and has demonstrated active
development.
In regional areas “convenience stores”
developed most actively. Such stores can be
opened in existing retail properties.
Supermarket and hypermarket chains have
to construct new ‘built to suit’ objects. 2010
also saw the start of new properties and the
completion of projects that were suspended
in 2008 - 2009.
In 2010 the majority of regional projects
were implemented in Gomel, the second
largest city by population in Belarus with
482,000 inhabitants. Hypermarket chain
“Hyppo”, supermarkets “Almi” and “Korzinka
were opened in Gomel during the year, with
an area of the objects exceeding 16,000 sqm.
The company “Grinn” constructed it’s first
store of “cash& carry” store (self-service
store, offering customers the opportunity to
purchase various goods at retail and small
wholesale) with a total area of 14,000 sqm.
This chain operates 18 hypermarkets and 20
supermarkets in different regions of Russia.
The further development of the chain is going
to be directed to regional centres of Belarus
also. Another notable development was by
the company “Rakovski Kirmash”, who
opened a new food supermarket under a roof
of the former operator after a partial
reconstruction.
SUPPLY AND NEW CONSTRUCTION
During 2010, 8 shopping centres and
complexes with a large retail portion were
put into operation. The total GLA of these
objects is 59,000 sqm. Completion of a
further 5 objects with 22,000 sqm of area
has been delayed to 2011.
The delay of project completion was a typical
trend even before the crisis, aggravated by
the financial problems of some developers
and froze some projects in 2009. At the
same time large Belarusian and foreign
companies constructed retail objects with a
timeframe of under a year. 2Q 2010 saw the
opening of shopping centre ProStore with
total area of 20,600 sqm and DIY shopping
centre OMA with total area 8,500 sqm.
The existing supply is predominately
neighbourhood and community shopping
centres. The GLA of such objects generally
doesn’t exceed 5,000 and 15,000 sqm
respectively Many objects do not have an
anchor tenant.
There are currently only two centres large
enough to be considered “regional shopping
centres” on the market.
CONTACTS: ANDREY PAVLYSHKO - a.pavlyshko@colliers.by l ANDREY ALESHKIN - a.aleshkin@colliers.by
Colliers International | p. 83