14 June 2020
From the JoinPAY archive. Information reflects the original publication date.
In shopping malls, an unusual drop in traffic is noted, many experts attribute this to the booming market of street retail. We analyze the launch details and development trends in 2019.
Street retail is literally "street trade", the format of a retail outlet that is located in a separate building or on the first floor of a residential building with a separate entrance.
Street retail has begun to experience a new round of development. Many major cities in Russia have started preparing programs for the development of street retail, and this is not only because of the upcoming major economic and sporting events. The thing is, this format is suitable for many types of business: home stores, restaurants, cafes, pharmacies, shoe repair, flower shops, and many others.
Why do entrepreneurs more and more prefer to leave shopping malls "outside"?
2018 continues the trend of developing retail formats from large to small. Those who have always been distinguished by large sites are slowly starting to open small stores in the "at home" format. This is all accompanied by another trend – customers do not want to spend their time walking around endless shopping malls. The interest has shifted in favor of quick purchases in a small store with a proven assortment.
The street format provides the opportunity to introduce and develop your own corporate identity, choose how to contact the audience. While shopping malls squeeze their tenants in terms of work, branding under the format of a shopping mall, and much more.
What are the features of opening a business in the street retail format?
Since the format itself is street, the first main requirement in the selection of premises is just passability. You definitely heard about the unspoken principle of three "L":" Location, Location, and Location", but do not forget about the concept of your business.
If you provide services or sell "premium" goods, traffic is not so important to you. The location itself will be the main image component. And if you are engaged in the sale of everyday goods, then you should pay attention to traffic and look for places near transport interchanges, pedestrian flows and etc.
The most valuable places are considered "shopping corridors" - traffic intersections of local residents, office employees and visitors. However, the cost of renting or buying such premises is much more expensive than in the same shopping malls. Therefore, in the real estate market has growing interest in less prestigious places in favor of more economical: basements and semi-basements. Traffic to such places is provided by special promotions and marketing activities.
For example, many developers now design residential complexes, laying the entire first floor for commercial real estate. So it would be most attractive to open a retail store in such places.
Street retail market trends in Russia and regions
The street retail market expects rapid growth in both major cities and regions, while popular destinations in Russia will remain the same: public catering, fast food and 2Go coffee, beauty salons, pharmacies.
There is an increase in street food and so-called pop-up stores. Most of them are exactly with the theme of public catering: boiled corn or chestnuts are not uncommon to find not only in the resorts of the Krasnodarskiy Kray.
The growth of the beauty industry in the street format is also noted. Highly specialized areas of beauty (manicure, sugaring studios, brows) and salon format "wash & dry" are in demand as never before, especially if they provide Express services on the go.
How to keep street retail "afloat"?
As we said above, location and traffic are important in street retail. It is necessary to constantly monitor the dynamics of sales by hours and assortment. If you own a flower shop in the business district of the city, then making such a report, you will notice that in the morning they buy more bouquets as a gift to colleagues and partners, and in the evening bouquets of roses are more in demand. By adjusting your product range based on sales, you, first of all, meet the requirements and wishes of your customers, and secondly, optimize your costs and do not freeze money in circulation. To save your time on reporting, you can purchase the JoinPay Smart Cash Register, where in addition to classic reports on profit and revenue, you can analyze the operation of your sale point or store network in more details.
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