The market of outlets continues to fall

June 6, 2013. The growing economics of Lithuania, the increasing purchasing power of residents and domestic consumption return the customers to shopping centres, and the outlets has been decreasing for the second year in a row. The development of alcohol beverage outlets, which started suddenly in 2011, ran out of steam in 2012 as quickly as it had emerged. This segment of the market has decreased by almost 80 percent within 2012.

According to Arnoldas Antanavičius, the Manager of Consultations and Analysis Department of Inreal, the market of outlets in Vilnius differs from other cities significantly. “The number of outlets in Vilnius is double or even triple higher than in Kaunas or Klaipėda. In addition, it is the only city which has a special centre of outlets, where vacancy has been close to zero for the second year in a row. While the situation for the single outlets is much worse – during the year of 2012 the area of outlets in Vilnius has decreased by 1000 sq. m., in Kaunas – 105 sq. m., and in Klaipėda – 110 sq. m.”, – stated A. Antanavičius.

In 2012 thirteen outlets with a total area of 2110 sq. m. were closed in Vilnius. More than a half of this area, i.e. 1150 sq. m., has been leased for other 15 outlets. These new shops are significantly smaller and more diverse – even 6 of them sell accessories or toys. The number of the latter outlets has been permanently increasing in Vilnius within the previous year, and in 2012 it reached the tenth of the market. The traditional apparel, footwear and sports goods outlets belong to the remaining part.

There are no special shopping centres for outlets in Kaunas and Klaipėda – there are single outlets only, therefore the market in these cities is significantly smaller than in the capital city.
In 2012 there were no significant changes in this market in Kaunas – just one outlet was opened and one outlet closed. This decreased the market by 105 sq. m. to the total area of 2880 sq. m. The majority of 31 outlets in Kaunas sell clothes and footwear. There are only several sports, accessories or toys outlets in Kaunas.

Among the largest cities of the country Klaipėda has the smallest market in this segment, which has been continuously decreasing within 2012: 3 outlets were closed and only 1 new outlet was opened. In the late 2012 there were 15 outlets, i.e. 2275 sq. m. in total, operating in Klaipėda. In comparison with 2011, the area is smaller by 110 sq. m. Contrary to Vilnius and Kaunas, the distribution of outlets according to the goods is much more proportionate in Klaipėda. Accessories outlets cover a slightly smaller part of the market.

“Even more significant trends of shrinking outlet market in Lithuania were recorded in the other segment of outlets as well – alcohol and alcohol-free beverage outlets. This segment of the market has shrunk by almost 80 percent during 2012”, – stated A. Antanavičius. In 2013 only one of the largest three company groups, which in total had 61 beverage outlets in 2012, remained in the market with 13 outlets in Lithuania.

According to Inreal analysts, the monitoring of outlet market trends shows, that the business is the most successful in the places with the concentration of such objects – special centres for outlets. Since no special centres for outlets is being planned in Lithuania for the nearest future, it is likely that cardinal changes should not occur in this segment in the nearest future. The single outlets will have difficulties in surviving, therefore the total area of this segment should continue to decrease.

ABOUT INREAL GROUP

Inreal Group, which consists of JSC “Inreal Valdymas” (Inreal Management), JSC “Inreal” and JSC “Inreal GEO”, provides the widest spectrum of services in Lithuania, related to real estate services. Companies of Inreal group belong to AB “Invalda privatus kapitalas”. Around 90 employees are currently working in Inreal group, the value of managed assets – about 400 million LTL, mediations in lease or sale of 550 thousand sq. m. of commercial premises and 1150 apartments, and the value of asset, evaluated per year, is reaching 2 milliard Litas. Company offices or representations are operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Mažeikiai, Alytus, Plungė and Utena.

More information
Rūta Merčaitienė
Head of Marketing and Communications
INREAL GROUP
Mob. +370 611 29 779
E-mail ruta.mercaitiene@inreal.lt