♦ The management of the mall in the north of the Capital wants to keep all the spaces of the mall occupied by tenants and adjusts the rent according to the evolution of sales, so that the stores can remain functional.
Băneasa Shopping City, the mall in the northern part of the Capital, managed by Băneasa Developments, plans to maintain all the rented spaces in the shopping center in 2021 and has adapted its way of calculating rents to the current situation affected by the pandemic. In the case of Băneasa, the management opted for rent reductions.
“The closure of shopping centers and the blockade during the state of emergency have caused a drastic decline in sales, placing retail among the most affected economic sectors. We knew that a difficult period can only be overcome together, so we tried to rise to the challenges of 2020 by offering real support to our stores. Specifically, over 99% of our tenants were unable to carry out their activity and we decided to support them by exempting them from paying rent during the restrictions. Also, after the partial reopening on June 15, we continued in the same direction, offering help to those who did not benefit from a legal framework favorable to the resumption of activity: restaurant, cafe and cinema operators “, explained Arthur Popa, CEO of Băneasa Shopping City.
He pointed out that in the conditions in which distance measures were imposed against the background of the pandemic, and the traffic in malls and shopping centers was affected by them, the company decided to reduce rents so as not to affect the businesses present in the mall.
“As the restrictions imposed by the authorities have led to a decrease in the number of visitors, but especially have had a significant impact on certain segments of activity, we have chosen to act firmly, by reducing the value of rents on our own initiative. The aforementioned measures have significantly affected our financial results, but for us it is essential to ensure sustainable premises for the future “, said the CEO.
Last year, Băneasa Shopping City had a turnover of 33.2 million euros in 2020, compared to 52.8 million euros in 2019, but in 2019 Băneasa sold the Grand Cinema & More cinema to the Austrian giant Cineplexx – thus, the turnover from 2019 includes both the revenues from the sales of cinema tickets until the time of the sale of the cinema activity, as well as the revenues collected from the actual sale of the cinema operation.
“A real comparison of the results recorded in 2020, compared to the previous year, involves the elimination of the period in which the mall was not open to the public. Thus, while the number of visits had a negative variation of about 35% compared to 2019, the cumulative sales of our tenants registered a decrease of only 13% “, explained Arthur Popa.
On July 23 last year, the French group L’Oreal opened a YSL monobrand store in the Bucharest mall that sells perfumery, makeup and skin care products, the first such boutique in Europe under this brand, and on July 31 the store was inaugurated multi brand Various Brands, known for the mix of sports items from famous brands, suitable for a wide range of sports practiced and at the same time suitable for casual urban style.
In October, in Băneasa Shopping City, a Sport Vision store was opened, for footwear, clothing and multi-brand sports equipment, spread over an area of 1,200 square meters, and also in 2020, a Hugo Boss store was opened, as part of the strategy of developing the portfolio of tenants operating on the premium segment of the market.
“The unprecedented challenges of 2020 have mobilized us towards responsibility and solidarity towards the community we belong to. Despite the unfavorable context created by the pandemic, the commercial strategy remained a constant, being characterized by the intention to differentiate and strengthen our reputation. The opening of Yves Saint Laurent Beauty Boutique, for the first time in Europe and of the Hugo Boss store, last autumn, reaffirms the leading status of Băneasa Shopping City as a favorite destination for shopping for premium products.
We also want all stores to be open to the public, a detail that contributes significantly to the success of our project, but also to the experience we offer visitors. From this point of view, our expectations for 2021 are related to maintaining a 100% occupancy rate with the current partners “, said Arthur Popa.
Băneasa Shopping City was the first mall in Romania to voluntarily discontinue its activities on March 23, in the context of the COVID-19 pandemic, before this was imposed, and the activity was resumed on June 15.
“2020 has been a year of unprecedented challenges around the world. Since the beginning of the pandemic in Romania, we have mobilized quickly and tried to identify the most effective solutions to protect all our employees, customers and partners. Băneasa Shopping City was the first shopping center in the country to take an unprecedented decision, that of stopping commercial activity voluntarily, before the state of emergency was established “, Arthur Popa explained.
In the last 15 years, Băneasa Developments has generated through its customers and suppliers an average annual contribution of over 33 million euros to the state and local budget, according to a study conducted by KPMG and reviewed annually according to financial figures by the financial audit company TPG Advisory.
In 2020, the total amount of taxes paid only by Băneasa Developments to the state and local budgets amounts to approximately 12 million euros, of which over 1 million euros were paid for employees’ salary contributions, for the tax on value added generated over 6 million euros, for the profit tax for 2020 over 2.7 million euros, and for local taxes and fees 1.8 million euros.
The cumulative contribution of the tenants of the Băneasa Shopping City project, according to the study carried out by the financial audit company TPG Advisory, stood at an estimated value of 1.053 billion euros. In addition, according to the same study, the entire Băneasa project, of which Băneasa Shopping City is a part, contributed to the overall economic development by over 1.306 billion euros in the period 2005-2020. It is also estimated that, in the period 2005-2020, Băneasa Developments indirectly generated to the Romanian economy, through the value chain of its clients, a net added value of approximately 268 million euros. In total, in the last 15 years, Băneasa Developments has generated through its clients and suppliers an average annual contribution of over 33 million euros to the state and local budget.
Together with the retailers operating in Băneasa Shopping City, Băneasa Developments paid over 51,000 salaries, and together with the other partners located in the Băneasa Shopping Area, it contributed to the payment of over 140,000 salaries generated by the jobs that were created. .
