The military decrees issued by Romanian authorities in the context of the Covid-19 pandemic exempt from this suspension the stores selling primarily food products, electronics, veterinary and pharmaceutical products, as well as cleaning and optical services.
The modern retail stock (shopping malls, retail parks and galleries) in Romania reaches some 3.9 million square meters, of which supermarkets and hypermarkets – the main category of stores left open, account for nearly 23%, according to data from Cushman & Wakefield Echinox.
The estimation regarding unearned revenue is based on an average sales level during a period with normal activity for this type of shopping center, estimated at EUR2,000/sqm/year.
According to consultants, as a viable alternative, depending on the way it will success in managing the current volume boosted by demand, the online commerce could become a winner on the long term, by preserving a significant quota of the retail market gained these days.
“Besides food, care, veterinary products and pharmaceuticals, the online commerce currently represents the only option for consumers. Thus, depending on how long social distancing will last, people’s habit of placing orders from home may change the way of buying products in the future, especially food and other staple goods”, said Bogdan Marcu, Partner Retail Agency at Cushman & Wakefield Echinox.
Globally, in the context of social challenges and financial loss generated by each day of non-activity, large retailers and traditional fashion houses have started to get actively involved in the fight against the spread of the coronavirus, with a view to resuming the normal activity and opening stores.
Large groups in this sector, such as LVMH or L’Oreal, have started to produce disinfectants, while H&M and Inditex focused on producing protective gear and equipment. These situations occur especially in the context in which fashion and beauty retailers have huge stocks of unsold products during this period. The suspension of the fashion week program or not launching the fall/winter 2020 collections are unprecedented and the market needs to adjust.