PERSONAL COMMENTARIES OF PLACEMAKING EXPERTS
An attempt to explain the current situation faced by retail tenants.
However, according to Otto Ambagtsheer, CEO of VIA Outlets, the way in which customers shop will change, at least on a temporary basis. For example, in some of the company’s markets, they will not be able to let guests try on clothes before they buy them, and clothes that are returned will need to be quarantined for three days.
At the end of 2020, we intended to celebrate the opening of Nivy Station and welcome our first customers. We planned to change the face of Bratislava by working together and presenting a unique public space designed for travelling, shopping and relaxation. Due to the effects of the pandemic and state implemented measures, the possible opening date has become Spring 2021, when the project will be in construction readiness.
The reign of retail is over. The Covid-19 crisis is not a black swan for the shopping mall industry.
The Covid-19 pandemic will cause lasting change in the way that we live, work, play, and particularly in the way we shop.
“Fridays for Future, Earth day or the Fashion Revolution Week are just a few examples of a young, global movement that is only just beginning to fight for its market relevance.”
If tenants experience a substantial drop in turnover–25% or more – they can convert the quarterly advance payment of rents into monthly rents and, if necessary, can request a month by month rent deferral, provided they substantiate their request with information regarding turnover.
“For landlords, it is no longer an option to assume very long retail leases, collect the rent and sit back until the time comes to renegotiate them.”
“The lessor & lessee relation reflected in traditional lease models we are currently familiar with will transform into partnership models where risks and benefits will be shared.”
“As far as offline is concerned, we can expect consumers to be increasingly sensitive to emotions versus price, quality versus quantity as well as health and proximity.”
“The only good news for stationary retail is that the “digital natives” (can) seize their opportunities only to a certain extent.”
“We do expect the same developments like in China by late spring or beginning of summer at our malls in Central Eastern Europe and in Turkey.”
“How an old fable about the importance of unity can help center landlords and tenants thrive in the face of the coronavirus crisis.”
“The corona pandemic reveals and emphasizes, among others, the very simple basic fact which is crucial to a healthy business survival illustrated by the dependency of all different business parties on each other’s survival.”
How resistant is the shopping center industry? Alleviating symptoms is not enough!
“After the first soft measures in early March, a curfew restriction was imposed in Hungary from March 28 until April 11. Together with the compulsory closing of all non-food shops at 3:00 PM this has had a huge impact on the retail sector.”
"Action will be needed to save millions of jobs around Europe. This will be a call for action for all of us who still operate, manage, develop, build, and expand stationary points of sales. Survival instinct is the prerogative of the species and now we have to find ours."
“No one believes this will last forever and most believe that the underlying economy will bounce back once an all clear is sounded.”
“If history is an indication of the future, consumers, having been in home isolation, will enthusiastically return to the mall to shop, dine, and be entertained.”
“Getting out of our comfort zones also makes us stronger in the long run, activating our values and pursuing both personal and professional purpose should be our priority.”