Close to 4% higher turnover of tenants in shopping centers in July 2024.

• The turnover of tenants conducting business in shopping centers in July 2024 was 3.8% higher than the previous year.
• The largest turnover increases were recorded in the health and beauty (9.4%) and services (7%) categories.

Every category of shopping facilities saw an increase. The best results were obtained in the smallest centers (5-20 thousand sqm. GLA), where tenant turnover increased by 8%. In medium-sized facilities (20-40 thousand sqm. GLA), turnover increased by 4.6%, and in the largest galleries (above 60 thousand sqm. GLA), turnover increased by 3.2%. In large shopping centers (40-60 thousand sqm. GLA), the turnover growth was 1.8%.

– In July 2024, the highest turnovers compared to July 2023 were recorded by the health and beauty (9.4%) and service (7%) sectors, which, according to PRCH data, perform better during the summer holiday period. Overall, tenant turnover in shopping centers increased by almost 4% in July. An interesting trend persisted in the clothing and accessories category. The turnover of tenants running clothing stores in shopping malls increased by 2.2% in July, while according to GUS data, retail sales in this product category decreased by 11.4%. – Added Marcin Klammer, Managing Director of the Polish Council of Shopping Centers.

– This is not the first time that the trend in sales in shopping centers differs from retail sales reported by the GUS. This seems to indicate that trade concentrated in shopping centers responds better to changes in demand resulting, for example, from persistent inflation, as well as seasonality. July is naturally a holiday period. The highest increases in smaller centers may result from a seasonally increased demand in tourist towns. Relatively low increases in large facilities, usually located in big cities, are probably due to these cities being deserted during the holiday season, – assessed Przemysław Dwojak, Senior Client Business Partner at GfK – An NIQ Company.

The conversion rate for all tenant categories in shopping centers, i.e., the average customer spending per single visit, was 4.4% higher in July 2024 than in July 2023.

The footfall in shopping centers (PRCH Footfall Density Index), measured by the number of customers per 1 sqm of rental space, was 0.6% lower in July 2024 than in July 2023.

The PRCH Turnover Index is the largest index of tenant turnover in shopping centers in Poland. Due to the confidentiality and sensitivity of such data, its collection, verification, and analysis have been overseen by PwC, a leading international auditor, since 2008. The information comes from reports submitted to mall owners and managers directly by tenants. Tenant turnover results in shopping centers are given in PLN, per 1 sqm of rental space.

The PRCH Footfall Density Index is the largest metric of shopping center footfall in Poland. PwC, a leading international auditor, has continuously supervised the collection, verification, and analysis of footfall data since 2008. The index is prepared based on information from modern camera systems, which allow for real-time, daily measurement of traffic in shopping centers. This is the most reliable system for analyzing customer flow in shopping centers, with an accuracy rate of up to 98%. Visitors are counted using 3D cameras installed at every entrance. To minimize the possibility of errors, additional cameras are also installed at key locations for verifying traffic in a given facility. Information is gathered in commercial facilities with a total area of more than 4.5 million sqm, which constitutes over 33% of the shopping center market in Poland. This index provides a very accurate representation of the number of customers throughout a month, per 1 sqm of rental space.