Kyiv, Ukraine

Colliers International Ukraine hosted the practical retail conference “Retail in Ukraine 2009: SaveOurSales 2009“ on April 2nd 2009 at Radisson SAS Hotel in Kyiv.

The overall conference goal was to establish convenient communication platform to exchange professional experience in retail property, foster productive communication between the leading players of the retail market in the context of Landlords and Tenants relationship generating mutually profitable solutions within the new tough economic environment.

The conference hosted around 150 participants – representatives of development companies, retailers, and media.

Natalia Kravets, Director Retail Property Department Colliers International (Ukraine) was moderating the event as well as the one to open the conference. In her presentation "Retail Property Market Review in Ukraine”. Natalia outlined the current situation on the retail market and highlighted the most important trends 2009.

In the further course of the conference a number of major retailers made presentations sharing their experience and expressing their viewpoints. Those are Maratex, Karavan, Domotex including the entertainment and restaurant segments representatives MultiKino and Puzata Khata.

Hence, Alexander Makarenko, Head of Development Department Karavan in his presentation outlined the chain performance in the new economic environment and shared with the corporate plans in 2009, focusing on the launch of new line – low-end private labels – that is timely response on the demand offset towards the economy goods».

A range of cost optimization approaches has been presented by George Shaldyrvan, General Director Maratex. The presentation got lots of interest having taken by the audience as a useful guide for action. George had mentioned a famous thesis on the primary economy within the costs structure, which should avoid the effect of goods with no personnel available, meaning that the all the costs cutting measures should be well considered and balanced.

Alexander Sokolovsky, Founder Textile Contact Group, shared his experience of successful retail chain development, having announced the launch of the company priority business – the chain of homeware textile supermarkets Domotex. During his speech Alexander sketched out the short-term and long-term expansion plans: “The managing company opens its second Domotex supermarket in Kharkiv on 1 of May 2009. Also the launch of 4 projects in Kyiv and major cities of Ukraine has been scheduled for Q3 2009. In addition, till 2016 the company contemplates the opening of over 20 supermarkets throughout Ukraine and considers the expansion of Domotex chain to Russia, Byelorussia, Moldova totaling around 100 stores. The investment into Ukrainian chain totals nearly 200 million UAH” – Alexander stated.

The developers’ part was represented by the major development companies – Magellan, Panorama Group, Parkridge Ukraine, King Cross Leopolis.

In the framework of the conference the two panel discussions of Landlords vs. Tenants were held during which the issues of rental rates renegotiation, new approaches of visitors attraction into shopping centers had been addressed. In the course of the discussion the Tenants took initiative offering Landlords the commercial terms adjustment in line with the current economic situation. The Landlords responded by confidently, not felling the drop of benefits and attendance in their shopping malls. However both parties did recognize their interdependence and came to the conclusion that in this tough environment they have to act as a team and find mutually beneficial solutions.

Victor Matyash, General Director Magellan stated: “Retailers are the first to undergo the crisis, however they will see the relief first, while the landlords will overcome all the crisis stages slowly and complicated”.

In conclusion Arkadiy Vershebenyuk, Director Capital Markets and Industrial Property Colliers International (Ukraine), made presentation on Ukrainian retail property market from investor’s viewpoint. In the course of the presentation Arkadiy considered the investment prospects, analyzing the opportunities and risks, having compared the Ukrainian conditions vs. Eastern Europe. Amongst the major benefits of Ukraine Mr. Vershebenyuk emphasized the following: (i)Ukraine is the fifth in Europe and the first in Eastern Europe in terms of population, with its 5 cities with population acceding one million people, (ii) the average GDP growth in 2004-2008 – 6,3%, (iii) rapid recovery potential due to the export and domestic market. Finalizing his speech he made an accent on the lack of quality assets on the Ukrainian market, emphasizing his previous statement – “this is the best time for making acquisitions for those having money and gross nerves».

Click here to see the conference photo report 

Download the conference presentations here 

About Colliers International

Colliers International is a leading commercial real estate services provider and a member firm of Colliers International Property Consultants, an affiliation of independent companies with nearly 300 offices throughout more than 60 countries worldwide including CIS Baltic countries with 11,000 employees. Colliers International Ukraine’s office was based in 1997 and employs about 60 professionals.

Colliers International collaborates with international and local corporations in leasing and/or sales of office, retail and industrial property providing services in Brokerage, Capital Markets, Counselling & Valuation, Development & Advisory, Investment Sales and etc.

Contact Information

Colliers Internationan Ukraine 
19-21A Bohdana Khmelnytskoho Street
01030 Kyiv, Ukraine
Tel: +380 44 4990000
Fax: +380 44 4990009

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