Retail Sentiment Survey Results June 2011
Methodological framework
Type of research
Quantitative
Method
Online survey
Period of conducting
8 June - 23 June
Sample
Companies from Retail sector
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Executive summary The majority of the respondents in the survey are retailers/ occupiers. Considering the segment in which they operate the most active are Fashion (18%), Home & Furniture (10%) and Children & Toys (9%).
13% of the respondents are optimistic for development of the retail industry in 2011, while half of sample are pessimistic about it. A little more positive outlook (17%) is registered for the overall economy in 2011.
The downturn in consumer spending and the cost of the rented property are the main challenges that the respondents have faced so far the year and expect to be key issues for their industry until the end of 2011.
Despite the not so positive outlook, about 40% of the respondents have plans to open new stores until the end of the year, predominantly in shopping malls located in the capital.
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19% of the retailers that participated in the survey are from the Fashion segment
Which segment do you belong to? Fashion
19%
Children & Toys
11%
Shoes and bags
10%
Sporting Goods
9%
Underwear
7%
Home & Furniture
7%
Services
6%
Health & Beauty
6%
Food & Restaurants
6%
Entertainment
4%
Jewelry
3%
Fashion Accessories
3%
Optics
2%
Gifts
2%
Bookstore
1%
Refuse to answer
2% 0%
Base: All Retailers/ Occupiers (94)
5%
10%
15%
20%
25%
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Half of the respondents have negative outlook for the overall economy in 2011
In your opinion, what is the outlook for the overall economy in 2011?
Positive, compared to 2010 17% 31% Same as 2010
52%
Negative, compared to 2010
Base: All respondents (120)
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Pessimism is the overall feeling that takes place among the respondents In your opinion what is the outlook for the retail industry in 2011? Refuse to answer Same as 2010 5%
30%
Negative, compared to 2010
51% Positive, compared to 2010
Base: All respondents (120)
13%
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Almost all respondents point out that the decrease in consumer spending is the main challenge they have to manage What do you think have been the main challenges facing the retail property industry so far this year?
Downturn in consumer spending
95%
The cost of rented property
Lack of capital/lending from banks for future development and/or refurbishment
56%
21%
Downturn in consumer confidence
18%
Competitive environment
18%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Base: All respondents (120)
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The drop in consumer spending is expected to continue to be a key issue for the companies in retail sector
What do you think the key issues will be until the end of the year?
Downturn in consumer spending
86%
The cost of rented property
Lack of capital/lending from banks for future development and/or refurbishment
Competitive environment
Downturn in consumer confidence
51%
20%
18%
16%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Base: All respondents (120)
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The shopping malls in Sofia are the preferred place to open a new store until the end of 2011 Type of property Do you intend to open new stores until the end of 2011? Shopping mall
Yes
74%
High street
26%
No 0% 57%
39%
20%
Refuse to answer
80%
83%
Ruse
4%
Burgas
6%
Plovdiv
2%
Pleven
2%
Blagoevgrad
2%
Sliven
2%
Refuse to answer
2% 0%
Base: All respondents (120)
60%
Where? Sofia
3%
40%
20% 40% 60% 80% 100%
Base: Respondents who have intention to open new stores (47)
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Colliers International Main +359 2 976 9976 Fax +359 2 976 9977 Business Park Sofia, Build. 7B, II 1766 Sofia | Bulgaria www.colliers.com
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