The collapse of Ukrainian retail is announced in Kyiv
Due to the weekend quarantine, Ukrainian retail sales are losing 40-60% of turnover, which is why in the future a reduction in trade turnover in the country is expected by 30-40%.
The founder and head of the Malls Club, Artem Shlapak, announced this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“Market players say the total amount of financial losses is difficult to estimate because it is unclear how long the weekend quarantine will last. Weekends for retail represent 40-60% of weekly turnover. If the weekend lockdown continues for a month, then tenants of shopping centers will lose about UAH 15 billion. Retail trade turnover in the country will decrease by 30-40%.
During the announced lockdown period – 3 weeks – each shopping center, depending on its size, will lose from 2 to 5 million UAH. There are approximately 300 professional shopping centers in the country. If we multiply this figure by 300, we get 1,2 billion UAH of lost profit. Over the weekend,” Shlapak said.
And the director of the Darynok market mall, Egor Verloochenko, said that if a complete lockdown is introduced in December, this will mean a collapse of trade, the curtailment of small and medium-sized businesses and mass layoffs of employees.
“The winter season for all retailers is characterized by increased demand for products. And going into the winter season, getting a weekend lockdown was no less of a challenge than a spring lockdown with the complete closure of the shopping center. Speaking about the weekends that came under restrictions in November, we must understand not 20% of the time, which can be calculated according to the calendar, but 40-60% of losses, which various retailers talk about.
Small and medium-sized businesses, which were finally finished off by the weekend quarantine, are folding despite the support of shopping centers. There was no redistribution of traffic on weekdays, despite the fact that shopping centers extended their opening hours.
And we perceive a possible complete lockdown in December as a collapse that cannot be overcome using the same methods as was done in the spring. If in November the underpaid turnover is 40-60%, then the underpaid turnover in December is no less significant amounts of the annual volume.
Such a decision in our case could lead to dozens, if not hundreds of layoffs, curtailment of the business of our small and medium-sized entrepreneurs and a crisis of non-payments,” Verloochenko said.
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