Olimp U.V.

2013-02-15

15.02.2013 Weak demand and strong supply voltage kept in Retail Market

The continued weakening of the purchasing power of the population and shrinking consumer spending has a negative impact on the retail market. Demand decreases, traders are cautious in expansion plans and turn to locations with proven potential, indicate a new market analysis of retail consulting firm MBL | CBRE.

However very few new players have entered the Bulgarian market last year - H & M, Debenhams, Wok to Walk.

Pressure on the market and has an oversupply of retail space, which provide new opportunities for tenants to negotiate more flexible terms. Expected market pressure to increase this year, especially in the capital, due to the opening of new shopping centers. It is due to slightly increase the level of unemployment, as happened after the discovery of Bulgaria Mall, said the expert.

Weak demand and strong demand for retail space continues to impact on rents. In the last three months of last year, their average level decreased by 8% yoy to € 12 per square meter The most significant decrease was recorded in Stara Zagora - a 18 percent to 11 euros per square meter in the other cities rents have remained relatively stable.

Significant delays into account in the expansion of large retail chains. In the last quarter of last year, the so-called big box retail space has increased by 51 thousand square meters against 140 thousand square meters at the end of 2011, some major chains said they closed shop.

As to commercial street, in the last three months of last year were not reported significant movements in rents and vacancy. Most active in the expansion remain pharmacy, optics, fast food chains, and increasing demand for space around the metro and in neighborhoods where there is a large flow of people.

investor.bg