After two-and-a-half months of being on lockdown seems to have been too much for Cypriot consumers as they rushed to theır favourıte shopping hub as malls reopened this week.
According to shop owners, stores within malls saw a considerable increase in visitors as they reopened on Tuesday compared to the same day last year, but this has yet to be reflected in sales.
In comments to the Financial Mirror, President of the Cyprus Retail Association (PASYLE) Marios Antoniou said that stores in Cyprus’ malls saw a 15% increase in traffic compared to the same time last year.
Consumers were encouraged to visit malls as they have done a good job in implementing health protocols, while also attracted by sales which in some cases reached 60%.
“Retailers were happy to see an increase in traffic, although it has yet to be reflected in sales as people seem a bit wary about spending money on commodities following the lockdown as uncertainty still prevails,” Antoniou argued.
Stores are expecting to see sales pick up over the weekend, as Saturdays and Sundays are traditionally preferred by shoppers.
The President of PASYLE said stores noted that malls have done a very good job in terms of implementing the necessary COVID-19 health measures.
“This has made people feel safe to visit indoor malls.
Malls implement all health protocols, keeping an electronic record of the number of visitors and frequently reminding customers to follow hygiene regulations and to keep a distance of 2 meters from other customers through announcements.”
Antoniou noted that malls cover large areas ranging from 36,000 Km² to 40,000 km², so they are not expected to reach the limits set by law which allows only one customer allowed for every 8 m².
“Traffic was boosted also by the opening of food courts in the malls, as people sought to combine lunch or dinner with shopping.”
Reduced rents
He wanted to thank malls for helping stores survive the pandemic during the lockdown.
“All malls have proceeded with a generous reduction of rents according to their capabilities. All malls have reduced rents by at least 50% for the months’ shops were closed.”
In the case of the Nicosia Mall, the board decided to write-off rents owed for the month’s stores were closed, while also reducing rents by 50% for the following three months.
“This is something for which we are grateful to the owners of the shopping malls, as, after labour costs, rents are the biggest expenditure a store has to cover.”
Antoniou was pleased by the stance of malls, as the newly voted amendment to the rent law only introduced incentives lowering rents, leaving any reductions up to the goodwill of landlords.
Moving forward, Antoniou said that stores will be looking to make up for lost ground with tempting offers which could be prolonged throughout the summer.
While aware of the difficulties that people face due to the pandemic, shopkeepers are urging the public to start buying again.
Shopkeepers also acknowledge that sales may not be enough for stores to bolster their turnover.
“It will take some time to record a turnover close to those recorded in the era prior to the pandemic”.
Antoniou argued, stores in other commercial areas which opened on 4 May, have yet to see their turnover exceed 35% compared to last year.
“Shopkeepers are also facing difficulties as suppliers are now demanding to be paid in cash rather than accepting credit notes which makes things even harder as there is limited liquidity in the market.”
Also commenting on the reopening of Malls, George Pissis, Marketing manager of the Mall of Cyprus said shopping malls are happy from the traffic they saw on the first days of business since the lockdown was imposed.
“The Mall of Cyprus saw increased traffic compared to any given weekday in June last year as consumers were encouraged by sales offered by stores and the health measures taken at our facilities.”
He expects traffic to pick up during the weekend when indoor entertainment facilities such as arcades will be able to reopen.
Cinemas in malls will remain closed until further notice from the health authorities.
