Ukraine is back on the radar of international retailers, with more brands announcing plans to enter the market in 2018, property consultancy firm JLL said in a press release issued on Jan. 15.
The influx of new brands to the Ukrainian market is due to the improving economy, JLL said. Among confirmed openings for 2018 are clothing retailers DeFacto, Decathlon, Koton, H&M, footwear retailer FLO, and interior furnishings store Zara Home. Swedish home furnishings retailer IKEA has also expressed interest in Ukraine.
Last year 20 new international retailers opened their first stores in Ukraine, among them Turkish clothing brand Collezione, American sportswear brand Under Armour, and German shoe brand Rieker.
“The appearance of such major players will be a signal to other companies that have postponed their decision to expand in Ukraine due to its volatile economic environment,” said Katerina Vesna, the head of the retail space department at JLL Ukraine.
Demand for retail space in Kyiv is now increasing faster than supply. Last year, for the first time in the history of the market, no new shopping malls opened in the city.
The limited amount of vacant space pushed rents up by 23 percent, to $80 per square meters per month – the highest jump in history. JLL forecasts that rents will continue to grow, but more slowly.
That’s because new space is expected to come online this year. The openings of three shopping malls – Smart Plaza Politekh, Rive Gauche and Retail Park Petrivka – were postponed due to construction delays, but should come this year. Two more – Smart Plaza Obolon and River Mall – also plan to open their doors this year. Provided that all five are commissioned, they will together add 114,000 square meters of new retail space.
