Throughout 2023, tenants’ turnover in shopping centers was 9.2% higher than in 2022. In the last two months of 2023 (November and December), turnovers increased by 5.4% and 5.2%, respectively, compared to the same months in 2022.
Annual average turnovers increased in all categories of commercial properties. The best results in 2023 were recorded by the smallest centers (5-20 thousand sq. m. GLA), showing a turnover increase of 12.2% compared to 2022. In large properties (40-60 thousand sq. m. GLA), tenant turnover increased by 10.8%, and the largest galleries (over 60 thousand sq. m. GLA) averaged an increase of 9.1%. Medium-sized properties (20-40 thousand sq. m. GLA) saw a turnover increase in 2023 of 6.5% compared to 2022.
In selected categories, the most significant turnover increases throughout 2023, compared to 2022, came from entertainment at 30.3%, services at 24.8%, and gastronomy at 17.4%.
Visitors, measured by the number of customers per 1 sq. m. of rental area, were 4.6% higher in 2023 than the previous year.
The indices of the Polish Council of Shopping Centers, the largest cyclic study of turnover and visitor numbers in shopping centers in Poland, show that in 2023, despite the economic slowdown, tenant turnover was 9.2% higher than in 2022. For all retail, based on GUS data, the growth in current price retail sales was 5%. The number of visitors to shopping centers also increased by 4.6% last year. PRCH index data is representative of the market, and it was continuously collected, verified, and analyzed by international auditor PwC for 16 years. The indices cover information from properties with a total area of over 4.5 million sq. m., constituting over 33% of the shopping center market in Poland – says Krzysztof Poznański, Managing Director of the Polish Council of Shopping Centers.
The conversion rate for all categories of tenants in shopping centers, meaning the average customer spending per single visit, was 4% higher in 2023 than in 2022.
Shopping center visitation (PRCH Footfall Density Index), measured by the number of customers per 1 sq. m. of rental area, was 4.6% higher in 2023 than the previous year. The best visitor numbers were recorded in galleries over 60 thousand sq. m. GLA, where the increase was 6.1%. Buildings from 40 to 60 thousand sq. m. GLA attracted 5.9% more customers than in 2022. In the case of centers with an area of 20 to 40 thousand sq. m. GLA, visitor growth was 2.7%, and the smallest objects, 5-20 thousand sq. m. GLA, saw 2.4% more customers than the previous year.
The PRCH Turnover Index is the largest tenant turnover index in shopping centers in Poland. Due to the confidentiality and sensitivity of such data, since 2008, their collection, verification, and analysis has been overseen by PwC, a leading international auditor. The information comes from reports provided directly by tenants to owners and managers of shopping centers. Turnover results of tenants in shopping centers are given in PLN, per 1 sq. m. of rental area.
PRCH Footfall Density Index is the largest index of shopping center visitation in Poland. Continuously since 2008, data collection, verification, and analysis has been overseen by PwC, a leading international auditor. The index is prepared based on information provided by modern camera systems, allowing for real, daily measuring of traffic in shopping centers. It is the most reliable system analyzing customer flows in shopping centers, distinguished by accuracy reaching up to 98%. Customers visiting the galleries are counted by 3D cameras installed at each entrance. To minimize error possibilities, cameras are also installed at additional key points for verifying traffic in a given facility. Information is collected from retail properties with a total area of over 4.5 million sq. m., constituting over 33% of the shopping center market in Poland. This makes the index a very accurate representation of the number of customers per month, per 1 sq. m. of rental area.
