MARKET BEAT
Yerevan Retail Market
Demand:
Demand for quality retail areas is primary driven by internationally recognized and well known brands, franchisers promoting and expanding such brands and retail chain operators both with local and international exposure. These international brands have been mostly opening their outlets on “high streets” and did not demonstrate much interest towards the existing conventional shopping centers. However there are few contemporary format development projects in the pipeline which will encrease retailer's interest for shopping malls.
Several international fashion brands as Debenhams, BHS, Coincasa, River Island, Aldo, Orsay, Promod and Okaidi entered the Armenian market during 2011-2012, opening flagship stores in Yerevan high streets. In 2012, Alhokair Group, together with it's local partner Imex Group (Retail Group cjsc), plans to bring to Armenian market several famouse fashion brands such as, Zara, Berska, PullandBeer, Stradivarius, Massimo Dutti, Top Shop/Top Man, NewLook, GAP, Marks&Spencer and Newyorker are.
Еven though the flagship stores planned to open in Dalma Garden Shopping Mall (grand opening in October 2012), this will lead to a rapid increase in demand for quality street retail space in Yerevan. Newyorker and OVS Industry stores are scheduled to be opened in Northern avenue by the end of 2012.
Underlying demand in the commercial areas create retail banks, fashion retailers, supermarket chains and building materials supplyer chains.
Pipeline
According to the "Old Yerevan" project's plan, in capital's heart, not far from the Republic Square, should be reconstructed a little historical and cultural center of old Yerevan. The total site for the historical development is about 2.0 hectares, which is delineated in rectangular area (300m x68m) by Arami, Abovyan, Buzand and Koghbatsi streets. Over the past years, many historical buildings in Yerevan were dismantled with future purpose to restore them in "Old Yerevan" project.
The project will include historical and cultural buildings built in XIX and early XX centuries and dismantled recently. The 20 relocated historical buildings will accommodate cafes and restaurants, shops, showrooms, specialized art galleries and museums, as well as small hotel becoming the most busy pedestrian high-street and active part of modern urban life.
Street retail
Overview:
Yerevan Downtown, being geographically like a circle, is very compact and easily walkable, with endless dining and entertainment options, itself reminding a huge shopping and entertainment center. From mid April till the late November the weather in Yerevan is warm and the foottrafic is huge during the all day. This is why high-streets in Yerevan have traditionally been active shopping areas attracting consumers.
Supply:
Several major streets in the Center of Yerevan are the locations preferred by many retailers, who benefit from heavy consumer traffic. Quality street retail also enjoys impressive expansion paces, especially triggered by the launch of Northern Avenue and other shopping zones of the city. We estimate that delivery of quality retail space in high streets will increase to GLA 250.000 sqm. by the end of 2012.
Abovyan, Tumanyan, Teryan, Northern avenue, Amiryan, Mashtots and Sayat Nova are the major prime locations of the city, hosting the most prestigious
international brands and retail operators.
Shopping Malls
Overview:
Yerevan’s retail market is now entering a new wave of expansion.
The first generation of city centre schemes like Hayastan Trade Center, Hayrenik Shopping center and Tashir Trade Center opened in 2002-2010 are not popular anymore, while the second generation of shopping malls are in the pipeline namely Dalma Garden Mall, Yerevan Mall, Tashir Group's latest development project which will be delivered in 2012-2013.
Supply:
Russian heavyweight Tashir Group's second Armenian project Dalma Garden Mall is located to the south-west of the city centre in Dalma gardens where they have built GA 46,000 sq m with a GLA of 32,600 sq m. The investment totals $35 million. The retail and entertainment complex will comprise 8 anchor stores as Marks&Spencer, Zara, Berska, PullandBeer, Newyorker, GAP and New Look, over 70 shops, a 10,000 sq m Carrefour hypermarket, café bars and restaurants as well as a Cinemastar 3-screen multiplex cinema and a bowling center. Construction of the mall began in 2008 with completion scheduled for 2010 then it was postponed to October 2012.
Demand:
The effect of prolonged increase of demand of modern-style shopping centers made the opening of Dalma Garden Mall as the most expected event in Armenian retail market. Retail Group's brands Marks&Spencer, Zara, Berska, PullandBeer, Massimo Dutti, Stradivarius, La Senza, Blanco, Oysho, Monsoon, Accessorize, Garage, Charles&Keith, GAP, New Look, TAO, Jennifer, Wallis along with Carrefour compise the 90% of the tenant mix in Dalma Garden Mal. Being the flagship stores in Armenia they will need new prime shopping mall locations for market expansion during the next 2 years. Taking in account the above mentioned also the fact that the second biggest fashion retailer SAS Group (Debenhams, River Island, Next, Aldo, Baldi) is not presented in Dalma Garden Mall at all, makes the demand in prime shopping mall locations very high.
From Year to year Armenia is getting more attractive for tourists, mostly from it's southern giant neighbor Iran with it's over 70 million population. One of the main attractions for Iranian tourists in Armenia is shopping, therefore, the new shopping centers are going to be the major destinations for them.
Pipeline:
Three more shopping centers are scheduled to be completed by 2013-2014 Yerevan Mall, developed by Imex Group, has secured lease contracts with Retail Group (Alhokair and Imex cjsc) and Carrefour Armenia as Hypermarket operator. Yerevan Mall is located in the South-Western part of the city, on one of the most busy transport hubs connecting downtown with Erebouni and Shengavit districts. Yerevan Mall will be the second modern-styled Shopping Mall in Yerevan.
The next development project in Tashir Group's pipeline is located in Arabkir district, surrounded by affluent neighbourhoods. This "Noname" project's completing scheduled in Q2 2014.
The building of soviet time most popular department store - "Detsky Mir" is in process of recunstruction for last 7 years. Located in a very center of the city, on the crossing of Abovyan street and Northern avenue, this still noname project is the most expected one.
Yerevan high-steets
Yerevan shopping centers
