Pre-New Year traffic in Moscow shopping centers decreased by 3%

The transition from impulse purchases of gifts to deliberate purchases has a negative impact on traffic to shopping centers. In Moscow, traffic in facilities in the penultimate week of December decreased by 3% year-on-year, a decrease in the number of customers was recorded in clothing and perfume stores. Shopping centers are increasingly of interest to city residents as a place of leisure, so during the New Year holidays, market participants and experts are counting on an increase in the number of visitors due to the regional tourist flow.

The Mall Index (the number of visitors per 1 thousand sq. m of retail space) in Moscow in the penultimate week of December decreased by 3% year-on-year, Focus Technologies calculated. At the end of this week, analysts expect comparable dynamics. In the fashion category, the number of customers decreased by 2% over the year, in perfumery and cosmetics stores – by 7%, and in electronics chains, on the contrary, the figure increased by 19% year-on-year.

The head of the retail department of CORE.XP, Marina Malakhatko, says that this year not only outdated, but also some modern shopping centers began to lose customers.

She attributes this to the outflow of some quality tenants during the pandemic and due to the departure of some international brands in 2022. RedStone Managing Partner Indira Shafikova adds that the situation was different on different days and there were more and less successful periods over the week and a half.

Baon President Ilya Yaroshenko says that in previous years, in the last week of December, there was a good increase in traffic on the network, but now sales are “barely holding on” to the level at the beginning of the month. According to him, store revenue in the pre-New Year period increased by 4-5% year on year.

According to Focus Technologies estimates, turnover in fashion stores for the year increased by 14%, in perfume stores by 2%, which is associated with an increase in the average check by 17% and 10%, respectively. Ilya Yaroshenko associates the rise in prices mainly with the weakening of the ruble, since 85% of the purchase of goods falls on Asian countries, and with rising costs in the Russian Federation, mainly on the wage fund.

Mikhail Vasiliev, head of research and consulting at Focus Technologies, believes that consumers are now taking a more balanced approach to purchases, comparing prices, which is why some buyers prefer online channels.

Stores in shopping centers benefit from the point of view of impulse purchases, but now the purchase of gifts is becoming more of a planned expenditure, including due to the growth of the average check, adds Alexey Vanchugov, managing partner of Vanchugov and Partners. For electronics chains, he said, customers often order online and then pick up in stores, which drives traffic. Vyacheslav Katsegorov, director of strategic development of the Magazin Magazin company, adds that online platforms are also actively promoting sales through their installment programs.

Ozon says sales have doubled compared to last year in the categories of clothing and accessories, electronics, and sweet children’s gifts. They also noticed an increase in demand for themed decor by 2.2 times, and for fireworks by 1.5 times. Yandex Market notes an increase in overall sales year on year. The most pronounced dynamics, up to three times, are observed in sales of equipment, clothing and footwear, household goods and children’s goods, everyday goods and groceries.

According to Alexey Vanchugov, shopping centers in general are increasingly attracting visitors as entertainment venues. According to Focus Technologies estimates, in the penultimate week of December, the number of orders in catering areas increased by 6%, and restaurant revenue by 4% year-on-year. Gagawa CEO Lenar Kutlin says December traffic is higher than last year, although it dropped by November. Indira Shafikova adds that seasonal entertainment concepts are also attracting interest.

For the New Year holidays, the Mall Index in Moscow will remain at last year’s level or increase, says Mikhail Vasiliev. Marina Malakhatko and Indira Shafikova are also expecting an increase in attendance. They explain the positive forecast by the increase in the number of trips around the country. According to MTS Travel, during the New Year holidays, 20% of accommodation bookings are in Moscow, and 10% in St. Petersburg.

Alexandra Mertsalova, Alina Savitskaya, Daria Andrianova