tenants are ready to wait for it to end. The Zolotoy Vavilon Rostokino now was faced such a problem. Though it has been renamed as Europolis Rostokino, the exterior advertising is still old. In addition to that, they want to reconstruct the food court, create a new restaurant zone, open a venue for events and provide for several lounge zones. And this is already a new wave of reconception: the older one has begun by the former owner. Some tenants are tired of waiting for the newcoming events and buyers are dissatisfied with the no ending repair, constantly inactive escalators — there are many negative reviews online. But still, despite this, there are a lot of people in the shopping center even during working hours.
Everyone will be there
According to Colliers International, at least 30% of all shopping centers in Moscow and St. Petersburg need to be reconcepted, while for two thirds of the objects opened until 2017, this issue is most relevant. “Such shopping centers are gradually losing the loyalty of customers, who are reorienting to high-quality facilities of the new format, as a result of which traffic is reduced,” says Vladislav Nikolayev, Regional Director of Colliers International’s Strategic Consulting Department.
All retail properties have the same life cycle stage. Director of the department of retail real estate at Knight Frank Evgenia Khakberdieva notes that shopping centers with a strong concept remain successful for ten years, with a less interesting solution — up to five years. Now, taking into account changes in consumer behavior and greater penetration of technology into retail, the stages of the life cycle are reduced.
Experts note that today not only morally and physically obsolete shopping centers that have been operating for more than ten years need to be reconcepted, but also quite “fresh” objects that opened at the peak of the crisis — in 2014–2016. Mozaika, Riviera and RIO on Kievskoye Highway, Khorosho are being updated, local improvements are being made in Oceania and even Aviapark.
72 | SHOPPING CENTERS RUSSIA | MARCH 2019