Shopping center tenant turnover bounces back in July

  • In July 2023, tenant turnovers in shopping centers were 6.5% higher than in July 2022.
  • Turnover increased in all categories of retail facilities. The best results in July were recorded by the largest galleries (over 60,000 sqm GLA), where the turnover increased by 6.9%. In large facilities (40-60,000 sqm GLA) turnover of tenants increased by 3.8%, and in medium-sized ones (20-40 thousand sqm GLA) by 2.5%. In the smallest facilities (5-20 thousand sqm GLA), the turnover increased by 0.2%.
  • In selected categories, tenant turnover increase was: entertainment 26%, services 18.4%, gastronomy 17.2% and fashion 5%.

In July, tenants’ turnover in shopping malls increased by 6.5% compared to July 2022, while, as reported by the Central Statistical Office, the retail sales increased by 2.1%. Visitor numbers increased by 4.3% compared to July 2022 and was the highest since the beginning of 2023. The continuing trend of growing customer numbers shows that Poles have permanently returned to shopping centers. Meanwhile, high inflation directly affects consumers’ purchasing decisions, in July this was particularly visible in medium and small retail facilities – assesses Krzysztof Poznanski, Managing Director of the Polish Council of Shopping Centers.

In the breakdown by category, the best results – an increase of 26% in July was recorded by the entertainment sector. In the services category, tenant turnover increased by 18.4%, over 17% turnover increase was recorded in the gastronomy sector, and the fashion industry increased turnover by 5% compared to July 2022.

The conversion factor for all tenant categories in shopping centers, or the average customer spend per single visit to the gallery, was 2% higher in July than in July 2022.

The visitor density of shopping centers (PRCH Footfall Density Index), measured by the number of customers per sqm of rental space, was 4.3% higher in July 2023 than a year earlier. At the same time, July 2023 was the month with the highest customer visit since the beginning of 2023.