The Baltic States retail markets, although in some respects may be similar - differ from each other.
Most of the retail space is located in Riga (639,000 m2), but taking into consideration the population, Tallinn has the highest saturation (1,035 m2 / 1,000 inhabitants). Moreover, due to the projects currently being implemented, Tallinn may soon outstrip the Latvian capital city as of the total stock of retail space. Shopping centers in the Baltic States change and the catalysts of these changes are entertainment and recreation. An interesting example of such modernization is CH Mega in Kaunas, Lithuania, where, after reconstruction, there was a two-storey aquarium, a large dining area, a cinema, a fitness club, a bowling alley, a mini zoo and a children's education center.
As in Riga or Vilnus shopping centers, in terms of mix of tenants, resemble those in Poland, in Tallinn we will notice a much stronger representation of the Estonian brands and individual concepts (e.g. large department store Kaubamaja). We observe a very interesting situation in the food sector, in the context of entry into these markets the Lidl chain. While Estonia and Lithuania have around 4-5 large grocery chains, Latvian market is dominated by two such chains (Rimi and Maxima). In the gastronomy sector it is worth mentioning the Lithuanian Lido concept, which is an interestingly arranged food court. Interestingly, in the Baltic countries in many shopping centers in the vicinity of food courts and leisure modules there are casinos or a full size ice rink – as in the Vilnus Akropolis CH.
Among the fashion sector in the Baltic countries the following companies operate: Reserved, H&M, CCC, Desigual, Guess, Masimo Dutti, Mango, Zara, P&C i Max Mara. Entering the market takes place through licensing / franchising (e.g. Apranga Group or Sportsland) or directly (e.g. Ikea). Recently brands such as Michael Kors, La Perla, Imaginarium, Kazar, Calzedonia, Intimissimi, Sportsdirect, Sketchers, 4F, COS, Maje, Sandro, NYX, Sizeer and Zara Home have opened their stores there.
Also Polish brands, especially those selling sportswear and footwear, have a strong representation in the Baltic States. Sizeer has four stores in Lithuania and a new store in the Riga Domina shopping center in Latvia. In 2016 4F opened three stores in Latvia and recently in Vilnius. The CCC footwear company is present in all three Baltic States. Also LPP is now well established in these countries and all its brands are present in those markets.
In Tallinn and Vilnius the vacancy rate in shopping centers is very low – around 1%. In Riga the vacancy rate increased from 2.5% in Q1 2017 to 7.1% in H1 2017. This is due to the closure of three Prisma hypermarkets and the withdrawal of this network from the Latvian market.
Rental rates in shopping centers in Tallinn and Vilnius range from 23 to 48 EUR/ m² /month, depending on the size of the premises. The average rates in Riga are slightly higher and range from 30 to 55 EUR/ m² /month.