Beauty’s all around
How beauty services are developing in shopping centers
Experts have long been talking about the rise of non-retail operators in shopping centers. They do not only mean entertainment concepts and F&B, but also tenants selling different services. We had a big article on healthcare segment last year (№11 September 2019) and this time we would like to focus on the future development of those operators who offer beauty services in malls.
Is 3% the top?
According to NeoAnalytics, the market of hair and beauty parlours in Russia has been growing 10-15% annually. At the same time, RBC Market Research warns us that the market could decrease in 2020 due to the well-known reasons. Last summer saw a sharp increase in beauty services, though it was a deferred demand from people locked at home for two to three months. The experts believe that in the future the frequency of visits as well as the number of services customers choose may shrink once they will have to start saving due to the decreasing income. The analysts believe that the market will recover no sooner than in a year providing the economics slowly overcomes the crisis.
Now, the beauty segment is not a big part of the tenant mix for an average-size shopping center: CBRE analysts estimations are 3% of the total number of tenants in a Moscow mall. For Western projects, the number can make 5%. At the same time the company says that all types of services are currently actively developing, which is rising the share of such outlets in shopping centers too meaning the number of tenants responsible for the beauty of people visiting malls may be affected as well.