Iranian Retail Market – From Corona Crisis to Rental Campaign Advantages

Iran’s pristine retail market does not benefit much from the services and products of foreign brands due to international restrictions. As a market of more than 80 million, it tried to strengthen domestic brands and despite the spread of COVID-19, it had significant success in introducing and expanding domestic brands. In this regard,

Shahrokh Keshavarz, Regional Representative of the MECS+R in Iran, the Retail People Magazine had the privileged to interview him where he described the trend of the Iranian Retail Market during the corona outbreak.

What was the impact of the Coronavirus on the Iranian retail market?

We commonly use a different methodology to identify the causal impact of the pandemic shock. We found out that during the strictest lockdown months from March to April, the year-over-year growth rate in the value of transactions dropped by 41% compared to the months before the pandemic started. Following the reopening of the economy and shopping centres in Iran from May to June, the year-over-year growth rate rolled up by 12% above the benchmark months, suggesting an accumulated demand discharge after the reopening. What was the reaction of chain stores and brands during the covid-19 pandemic? In the recent crisis caused by the pandemic, not only manufacturing companies but also stores have been unable to meet the mutated demands of anxious customers, and we have seen empty shelves and long queues in most department stores. The retail structures of some countries, including Turkey and Iran, were less damaged by the pandemic, and we did not see any serious crises and empty shelves in stores.

You launched a campaign to support the tenants shopping centres in Iran. This campaign has been successful in helping Iran’s Retail Industry get through these hard times with less loss. Can you enlighten us or share your thoughts on this? We have started a campaign to support the tenants of these shopping centres. With more than 50 convinced owners and managers of great shopping centres, participated to help and support their tenants. Each one assumes their social responsibility by allowing these tenants to work rent-free for 2-3 months or by substantially reducing their rent. As a result, thousands of retailers and shopkeepers was relieved and no longer felt distressed. After being acclaimed by shopping centres and appreciated by the tenants, this campaign has swiftly brought attention to itself by drawing the attention of television channels, newspapers, and social media and has become widespread throughout the country. How do you assess the increase in online sales following the Corona outbreak?

The COVID-19 pandemic led to a spike in online transactions of activities with online terminals. The impact continued to exist after the reopening of the economy. This can imply a persistent effect of COVID-19 on consumer preference for online shopping. What was the development of chain stores in Iran during COVID-19? The process of opening and operating chain stores and shopping malls in Iran were very positive even despite the widespread corona outbreak. Despite the initial shock of closure and inactivity due to the corona outbreak and with the gradual improvement of the situation, we saw the opening of chain stores even virtually. This trend accelerated after passing several dangerous corona peaks, and it can be argued that in terms of positive activities in the field of chain stores, the situation is the same as in the pre-corona era.

Shahrokh Keshavarz

Founder & CEO, Golden Business Magazine MECS+R Regional Representative – Iran