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Ukrainian Council of Shopping Centers begins calculating Retail Well-Being Index
KYIV. Oct 13 (Interfax-Ukraine) – The Ukrainian Council of Shopping Centers (UCSC) has begun calculating the Retail Well-Being Index (RWBI), which shows the operation dynamics of shopping centers.
Dmytro Topolskov, the author of the calculation methodology, the chairman of the UCSC research group, the head of the Ukrainian Research Bureau (URB), told Interfax-Ukraine about the launch of the project.
According to him, the method has been tested since August 2021.
"During the pilot period, nine shopping centers sent us information every month. We plan to calculate RWBI not only for the market as a whole, but also for different groups of shopping centers (format, region, type of settlement, size of settlement). This approach requires a minimum sample of 40 shopping centers, and now we have reached it," the head of URB said.
He gave the formula by which the index is calculated:
F (footfall) – mall traffic/attendance, people per month;
O (occupancy rate) – shopping center occupancy, %;
R (rent rate) – the proposed average rental rate for standard vacant lots with an area of 50-250 sq. m, U.S. dollars per sq. m, excluding VAT.
According to Topolskov, when creating the formula, "they balanced between the necessary and the possible."
"The best indicator of the efficiency of the shopping center is the turnover per 1 sq. m. But we had consultations with market participants who confirmed our fears: the turnover of the shopping center is the most sensitive, and therefore confidential information. The current rental rates in the shopping center are also not disclosed: usually written into the lease agreements," he said.
Therefore, indicators were selected that, although they are usually labeled "for official use," are not confidential, and are very important for market analysis: traffic, rental rate (exactly the one that shopping centers offer to tenants) and occupancy.
According to the head of URB, the primary information is provided by the project participants themselves, that is, the owners and managing companies of the shopping center.
"We are not limited to the existing (40) number of objects in the sample and invite shopping centers to join this project," Topolskov said.
The idea of RWBI development belongs to Maksym Havriushyn, UCSC Chairman, who also manages the project.
Established in 2020, the UCSC is a non-profit organization that brings together key participants in the retail real estate market: owners and developers of shopping centers, as well as companies involved in the construction and maintenance of shopping malls.
