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9.1.5 Retail sector news
The number of stores in Ukraine increased in the beginning of the year; retail follows internal migrants. As Retail & Development Advisor stated, the number of stores operating in Ukraine in January-March 2024 exceeded 18,000, which is 4% more than in the first quarter of 2023. "The return of our partners, international brands, should be noted separately. In the shopping center where they resumed their work, traffic increased by 10%. Regarding regional development, the leader in the fashion category was the Sinsay company, which opened 38 stores during the war, 35 of which are outside Kyiv," the consulting company said. Speaking about the geography of network development, the company noted that "the greatest activity of trade networks coincides with the concentration of internally displaced persons." At the same time, rental rates across the country have generally increased over the year, in shopping centers by 10% and in street retail by up to 20%. Growth occurs mainly at locations with a size of up to 200 square meters and in actively developing regions.
Forbes Ukraine: Ikea decides to reopen store in Kyiv. Swedish furniture giant Ikea decided in May to make plans to reopen its store in Kyiv, Forbes Ukraine reported on June 27, citing two managers of shopping centers and two commercial real estate consultants.
Restaurant attendance, takeout growing in Kyiv amid blackouts – expert In conditions of stabilization and emergency power outages in Kyiv, the attendance of cafes and restaurants, as well as take-out services, is growing, Olha Nasonova, director of the Restaurants of Ukraine analytical center, has told Interfax-Ukraine.
The NBU has characterized the Ukrainian real estate market’s main trends and warn of a possible shortage of new housing. Prices for residential real estate are rising in Ukraine, although demand for it is still low, the National Bank reported. The number of completed deals is much smaller than before the full-scale war. However, in the first quarter of 2024 notaries certified 33% more housing purchase agreements than in the first quarter of 2023. The demand driver remains the desire to purchase ready-made housing for personal needs, mainly through the secondary market. As such, developers are in no hurry to start new projects, and in the long term, the current pause in housing construction could lead to insufficient new housing supply. The National Bank indicates that housing prices in the secondary market are increasing in line with the exchange rate, while growth is also being recorded in the primary market. Since the beginning of the year, housing prices have risen most noticeably in Uzhhorod, by 15%, and in the Lviv region by 14%, while in Kyiv prices have risen by 2%.
Wholesale trade leaders increased their revenues by 17%. In 2023, the leading wholesale trade companies earned more than ₴535B, 17% more than the leaders in 2022. The Kernel Trade company leads the revenue list for the third year in a row despite a decrease by 9% to ₴62.06B. The company, part of the Kernel group, trades grain and sunflower oil. Fuel trader OKKO Express is in second place with ₴61.89B in revenue. In third place is logistics and distribution company Tedis Ukraine, whose revenue in 2023 decreased by 5%
101 UKRAINE Country Report July 2024 www.intellinews.com