In September 2024, due to fewer trading days and floods in the south of the country, the turnover of tenants conducting business in shopping centers was 0.2% lower compared to the previous year.
The largest galleries (above 60,000 sqm GLA) recorded a turnover increase of 0.8%. Tenants in medium-sized facilities (20-40,000 sqm GLA) had exactly the same turnover level as the previous year. Meanwhile, in large shopping centers (40-60,000 sqm GLA) and the smallest centers (5-20,000 sqm GLA), turnovers decreased by 1.5% and 2.7% respectively.
The largest turnover increase, 7.2%, was recorded in the services category. The health and beauty category saw a turnover increase of 3.3%. The clothing and accessories category, which is important for shopping centers, had 0.1% lower turnover.
According to tenants operating in shopping centers, they had better results in September 2024 compared to retail sales data in current prices. According to GUS data, total trade had a 3% year-on-year decline in retail sales. However, based on the PRCH Turnover Index, tenants in shopping centers had results almost at the same level as the previous year, said Marcin Klammer, Managing Director of the Polish Council of Shopping Centers.
He added that the level of turnover and the visitation of shopping centers, which decreased compared to the previous year, is due to one fewer trading day compared to September 2023, floods in south-western Poland, and unusually high temperatures in September this year.
Data from PRCH continues to demonstrate that organized trade under the banners of large, recognizable networks in shopping centers has its own specific sales dynamics. There was no collapse in shopping centers like those indicated in data about September retail sales. But not all shopping centers performed equally.
The biggest and medium sized shopping centers handled the decline in consumption well. Smaller centers struggles. There can be many reasons, but these centers are typically located in areas with lower purchasing power, meaning their customers may feel the effects of inflation and the activity of retail parks more acutely.
In September 2024, the visitation of shopping centers, measured by the number of customers per 1 sqm of rental space, was 6.1% lower than in September 2023. This result was influenced by a number of factors, including fewer trading days. Additionally, southwestern Poland struggled with floods in September, and warnings about threats or high-level flood alerts on the Oder river affected the buying behaviors of residents in these regions.
The year-round trend of increasing conversion rates for all tenant categories in shopping centers, or the average customer spend per visit, remained in September. It was 6% higher than in September 2023.
Source: https://managerplus.pl/centra-handlowe-we-wrzesniu-2024-stabilne-obroty-mimo-wyzwan-pogodowych-i-spadku-odwiedzalnosci-33877
