THE RETAIL MARKET IN BULGARIA 2011
Accelerating success.
BULGARIA FACTS Population of 7.351 million (2011) 10 cities over 80,000 inhabitants 4 cities over 200,000 inhabitants Average monthly income EUR 343 (Q1 201) Unemployment rate 8.9% (May 2011) Inflation rate 4.8 % (May 2011) Stabile currency and political climate
MACROECONOMIC INDICATORS
RETAIL MARKET OVERVIEW TOTAL STOCK Operational Shopping centers (Country wide) › 605, 000 sqm (GLA) Shopping center pipeline for 2011/2012 (Country wide) › 230,750 sqm (GLA) High Street (Sofia, Varna, Plovdiv, Burgas) › 101,440 sqm
RENTAL RATES
*Prime Rent represents the average top open-market rent estimated to be achievable for a new lease of a 100 sqm (net internal area) unit of the highest quality and specification in the best location, excluding service charges and taxes and not reflective tenant incentives
AVERAGE SHOPPING CENTER RATIO (SQM GLA/1,000 INHABITANTS)
PERFORMANCE OF EXISTING MALLS
OPERATIONAL SHOPPING CENTRES IN SOFIA City Center Sofia
Operational since 2006 20,000 sqm GLA Anchored by: Piccadilly, Cineplex, Marcs & Spencer, Oviesse, Technomarket
Mall of Sofia
Operational since 2006 21,500 sqm GLA Anchored by: Piccadilly, Cinema City, Intersport, Mango, United Colors of Benetton, Technomarket
TZUM
Operational since 1957 15,000 sqm GLA Anchored by: Piccadilly, Bianca, Bobo Zander, Adidas
Serdika Center
Operational since March 2010 50,000 sqm GLA Anchored by: Zara, Peek and Cloppenburg, Reserved, Esprit, New Yorker, Koton (their first shop in Bulgaria), Piccadilly (their largest store in the country), Hippoland, Technopolis, etc.
The Mall
Operational since April 2010 66,000 sqm GLA Anchored by: Carrefour (their largest store in the country), Zara, Peek and Cloppenburg, New Yorker, Esprit, Intersport, Arena Cinema, Playground Entertainment Centre, Technopolis, GAP (their first and only shop in Bulgaria), Marks & Spencer, Public, Technopolis, etc.
Sky City Center
Operational since 2006 15,000 sqm GLA Anchored by: Fantastico, Mega Xtreme Bowling
Sofia Outlet Center
Operational since March 2010 15,000 sqm GLA Brands: Vinello, Max Mara, Canali, Tommy Hilfiger, Mango, Hot Spot, United Colors of Benetton, Sisley, Rollmann, Oxette, Cassidi, Vayk, Triumph, Guess, Miss Sixty, Geox, Addidas etc.
SHOPPING CENTRES IN SOFIA MALLS IN THE PIPELINE
o sk
m
Lo e
ss
ou
sh
OBELYA
.
NADEJDA
ko
d.
n Blv d
Bl v
ORLANDOVTSI
Carrefour
LULIN
20
Tz a
2S t
rit
za
Sl
Jo
an a
ivn
Bl v
its
a
d.
Bl
r.
vd
Blvd.
v ir Vazo
.
Vladim
VASIL LEVSKI
Blvd.
Mega Mall
il
ski B lvd.
Bote
Va s
Serdika Center
Acropolis Complex Europa Park
Ovcha Kupel
CCS d.
Sky City Center
Bl v Ya vo ro v
LOZENETS
a Tz
d.
Blv
rov
Bulgaria Mall Paradise Center
ra d
sk o
sh
ou
ss
e
Bl
vd
.
The Mall
an
de r
Ma
lino vB lvd .
Blvd. i Vrah
Operational
Chern
LEg End: Shopping centre
rig
Simeonovsko
a Blv d
.
tsa Vap
Tz a
Rin
gR oa
d
Under construction/Pipeline On Hold
Ale x
l IB
II
shousse Blv d.
is
or rB
. vd
MLADOST
Cancelled IKEA
Ring Road
lvd. sse B
shou dsko
vgra
Centre Tzum
Levski
Al. S tamb olii
Bulg ari
Rin
gR oa
d
Ob
els
Rhoje
a
ou
ts
ss
e
ni
sh
iv
St
r.
r.
St
Sl
SHOPPING CENTREs – OTHER CITIES
EXISTING SHOPPING CENTRES
Retail map – Plovdiv, Bulgaria
G Park Plovdiv
Kaufland
Metro Technomarket
Martineli
Jumbo
Billa
Praktiker
Metro
Billa
Mr Bricolage Vis Vitalis Billa Galeria Plovdiv Technomarket
Technomarket
Mall Plovdiv
Mall Markovo Tepe
Billa
Sport Depot
Metro Technopolis Nov dom (Simeonov) JYSK Hippoland Civis Center Plovdiv
Billa
Trimontium Center Kaufland
Billa
LeGeND: Retail Park Shopping centre
Consumer-electronic sector Food sector Furniture sector DIY sector Fashion sector Kids sector
Operational Under construction/Pipeline Offline
Landmark Retail Park Technomarket Baumax Martineli Vis Vitalis dm Sport Depot Deichmann Sprider
SHOPPING CENTREs – OTHER CITIES
EXISTING SHOPPING CENTRES
Retail map – Varna, Bulgaria
Galleria Varna
Pfohe Mall
Varna Towers Mall Varna Grand Mall
LeGend: Shopping centre Operational Under construction/Pipeline
SHOPPING CENTREs – OTHER CITIES
EXISTING SHOPPING CENTRES
Retail map – Plovdiv, Bulgaria
G Park Plovdiv
Kaufland
Metro Technomarket
Martineli
Jumbo
Billa
Praktiker
Metro
Billa
Mr Bricolage Vis Vitalis Billa Galeria Plovdiv Technomarket
Technomarket
Mall Plovdiv
Mall Markovo Tepe
Billa
Sport Depot
Metro Technopolis Nov dom (Simeonov) JYSK Hippoland Civis Center Plovdiv
Billa
Trimontium Center Kaufland
Billa
LeGeND: Retail Park Shopping centre
Consumer-electronic sector Food sector Furniture sector DIY sector Fashion sector Kids sector
Operational Under construction/Pipeline Offline
Landmark Retail Park Technomarket Baumax Martineli Vis Vitalis dm Sport Depot Deichmann Sprider
EXISTING SHOPPING CENTRES
EXISTING SHOPPING CENTRES
SHOPPING MALLS – LEASE ABSTRACT LeaseTerm
5 - 10 years
Rent
Service charge Marketing fee
Net rent and Turnover Rent Open book policy
EUR 5 - 7 Euro/m2/month
Part of the service charge, or additional fee of EUR 0.7 – 1/m2/month
Indexation
Euro CPI
Guarantee
3 months rent + service charge + VAT
Payment structure
Monthly
HIGH STREET: SOFIA
Total supply of high street in Sofia is 43,650 sqm (net retail area) Average unit size is 170 sqm Prime rent is EUR 55/sqm/month International retailers include Mango, Max Mara, United Colors of Benetton, Terranova, Miss Sixty, Guess by Marciano, Longchamp, Rolex, D&G, Levi’s, Cartier, Pierre Cardin, Motivi, Hush Puppies, Garde Robe, Just Cavali, etc.
HIGH STREET: varna
The total supply is 16,600 sqm (net retail area) Average unit size is 77 sqm Prime rent is EUR 28/sqm/month International retailers include New Yorker, Mango, Adidas, Camel Active, Hush Puppies, Terranova, Stefanel, Miss Sixty, United Colors of Benetton, etc.
HIGH STREET: PLOVDIV
The total supply of high street space in Plovdiv is app. 29,500 sqm (net retail area) The average unit size is 150 sqm Prime rent is EUR 30/sqm/month International retailers presented include Fox, Terranova, Kenvelo, Adidas, Miss Sixty, Levi’s, Diesel Hot Spot, Fox and many others Local brands include Dika, Miro and others.
HIGH STREET: BURGAS
The total stock of high street space in Burgas is 11,900 sqm (net retail area) Average unit size is 81 sqm Prime rent is EUR 23/sqm/month International retailers include United Colors of Benetton, Playlife, Adidas, Levi’s, Diesel, Hush Puppies, Geox, Tally Wejl, etc.
RETAIL PARKS IN THE PIPELINE
BIG BOX RETAIL OVERVIEW • Saturation of shopping mall formats • Strong expansion and performance of big-box formats • Highest penetration by discount retailers • New market entrants are: Penny, Mercator (RODA), Lidl, Plus, Tempo, BAUHAUS • Forecast is for ongoing expansion of value-centered retailers, mid- and high-end retail to expand at moderate pace • Retail-park clusters are new formats, existing in few locations • Ranking of big-box retailers in terms of number of outlets: 1.
Food retailers
2.
Consumer electronics
3.
Furniture & home décor
4.
DIY retailers
5.
Toys and children’s wear
6.
Sports goods
o sk m Lo
Metro Sport Depot Factory outlet Hippoland
Bl v
Ob els ko
ORLANDOVTSI
Carrefour
LULIN
Billa Technopolis
Tz a
rit
za
2S tr.
Sl
Jo
an a
Retail Park Sredetz Technopolis Yavor Furniture Tempo Bauhaus
20
ivn
Bl v
its
a
d.
Bl
Retail Park Vazov Baumax Mercator Technomarket
Gazit Globe
Blvd. ir Vazov
vd
.
Metro
Vladim
VASIL LEVSKI
Mega Mall Blvd.
dsko
oliisk
i Blv d.
vgra Bote
Centre Tzum
lvd. sse B
shou
Levski
Al. S tamb
Serdika Center
Va s
il
Retail Park Ovcha Kupel Roda Acropolis Complex europa Park
Ovcha Kupel
CCS Bl v
d.
Sky City Center
LOZENETS
Ya vo r
sk o
Mr Bricolage sh
ou
ss
e
Bl
vd
.
The Mall
Billa
Technomarket Metro
xan
de
rM alin
Chern i Vrah Blvd.
a Blv d.
Consumer-electronic sector Food sector Furniture sector DIY sector Fashion sector Kids sector Operational
Paradise Center
ra d
.
pts
ov Blv d
lvd vB aro
Va
Lege ND: Retail Park Shopping centre
rig
.
Billa
Bulgaria Mall
Tz a
Rin
gR oa
Ale
r Bo
Simeonovsk o shousse Blv d.
is
ar Tz
ov
d.
lv IB
II
Bulg ari
gR oa d
d.
NADEJDA
Praktiker HIT Nov Dom Simeonov Densi
Rhoje
a
n Blv d.
St r. ts
sh ou ss
e
ni
r.
iv
Rin
St
Sl
e ss ou sh
OBELYA
Jumbo
d
Under construction/Pipeline On Hold
Hippoland HIT JYSK
MLADOST
This map is created relatively to scale Last update: June 2011 IKeA
Sport Depot Technopolis Como Yavor Furniture Ring Road
Black Gold Jumbo Lidl
Tel. +359 2 976 9 976 Colliers International Business Park Sofia Build.7BĐ‘, floor2 1766 Sofia, Bulgaria www.colliers-residential.bg www.colliers.com