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On June 15, 2011 Ukrainian Real Estate Club held a Retail Forum Ukraine'2011, during which national and international retailers shared their plans and strategies of development on the Ukrainian market.
The second session of the event, «The successful tactics and strategies of Ukrainian retailers», brought together representatives of professional food retail operators - Jordan Georgiev (BILLA Ukraine), digital and IT-technology - Victor Dubovitskiy (MOYO) and retail fashion - Dmitry Ermolenko (Maratex). Moderators of the session were Anna Chubotina (JLL) and Tetiana Shulga (Building Media Group).
Representatives of the companies talked about future plans for development.
Victor Dubovitskiy noted that the main components of the success of any store - it's a good location, so companies are willing to consider any region, including the small town of 100 thousand people with good location and solvent population. The company already planned to open stores in Kiev and Kremenchug until the end of the month, 50 stores before the end of 2011 and 100 by the end of 2012.
Jordan Georgiev, BILLA Ukraine, said that the Ukrainian market for grocery stores is not yet sufficiently developed. He shared his company's plans to open 50 stores BILLA in Kiev by 2015, noting that the city was most attractive for doing business in our country. Preferences will be given to purchase land in good locations will also be considered a successful shopping centers in downtown areas with heavy traffic. This year the company will focus on identifying suitable locations. The volume of investments is not disclosed, but Mr. Georgiev announced that funding for projects will be funded by REWE Group, part of which is BILLA. On the issue of changing commodity networks, Mr. Georgiev has not provided precise figures, but noted that this year the network has good results compared with those which were a year or two ago.
Dmitry Ermolenko didn't make loud statements, saying that the main income from retailing in the fashion retail stores offer, located in Kiev. Desire to develop a network of regions in the company is missing. However, brands often insist in the development in regions, so the company does not rule out the possibility of finding good locations and in other cities, not in Kiev. Mr Ermolenko announced the amount of funding budgeted for a five-year network development in the amount of EUR 1.5 million. However, he noted that the amount can vary depending on the availability of good locations. «If developers are seeing an increase in rental rates as a factor in the development of the market, retailers are calling it one of the biggest problems. The second problem - lack of quality locations. This solidarity with retailers and developers, representing a high potential for development of the Ukrainian real estate market» - summed up his speech Dmitry Ermolenko, CEO Maratex.
Also at the event were announced plans for the Russian food retail chain «Azbuka Vkusa». Company for two years has been exploring ways to enter the market of Ukraine. The reasons for preventing the opening of stores, the development director Sergei Rousseau didn't say. «For several years we see the market in Kiev, but the deal is still far from final. I would hope that by 2012 we will be opened», - he said. In addition, the company is considering the purchase or leases a property, and «Street retail». «We work exclusively in Moscow and Moscow region, and similarly committed to work in the capital of Ukraine», - said Sergey Russo, director of network development «Azbuka Vkusa».
Retailers noted that out of new chains / brands on the Ukrainian market and their desire to be in the best shopping and take the best seats in the «street retail», willingness to pay high rents, could once again stir the market.
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