Nearly half of RO non-food retailers expect over 30% revenue drop this year

Some 45% of non-food retailers in Romania expect over 30% turnover drop this year due to the state of emergency.

Another 39% foresee a decline of “up to 30%,” according to a survey conducted by real estate consultancy firm Colliers International among 84 tenants and 21 landlords in the local retail sector. The tenants assume slow recovery toward the end of the year.

Due to the closing of non-essential shops in shopping malls, 62% of tenants suspended or delayed rent and utility payments, and 52% asked for rent reductions when stores will be reopened.

To support business recovery, 88% of the retailers have applied for the technical unemployment facility (under which state pays 75% of employees’ wages).

At the same time, 48% will use the option to defer tax payments, and 33% will postpone the repayment of loans until the end of the year.

To support their tenants, 62% of landlords have chosen to ask only service charges from retailers, to keep the retail centers clean, safe, and the technical equipment in good order.

In this context, landlords are also expecting to see declines in net operating income in 2020, with 67% estimating a decrease of up to 30% and another 24% considering more pronounced drops this year. The

The Colliers survey covered retail tenants active mainly in fashion, food and beverage, cosmetics, services, entertainment, services, and beauty.

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