4 zones of Bucharest with great retail potential
* this article was first posted on the 26th of October 2011
There are many companies that focus their activity only on the center of Bucharest, or the malls. This is not wrong. Most of them do the right thing, as these areas suit to their brand’s profile better. But there are several other “interesting” areas in Bucharest, except these “obvious” options for a Retailer. This especially true for the ones that have a project which can match each area’s profile, characteristics and demographics.
Let us not forget that the… Retail tradition in Romania says that people are used to do their shopping only from shops located on the main boulevards. This is why very populated areas have just some hundreds of commercial spaces.
Let us choose 4 areas of Bucharest with great Retail potential:
Iuliu Maniu: Helped also by the… traffic!
Search for an area surrounded by hundreds of thousands of inhabitants, intense pedestrian traffic, but also very good visibility and “respectable” average income. You find all these plus more at Iuliu Maniu boulevard, the heart of the Militari area. As thousands of companies have moved to the Western exit of the city, this boulevard has constant traffic and thousands of pedestrians. Prices of commercial spaces here are not low and the demand remains considerable. The traffic there is… incredible, but this aspect increases the spaces’ visibility. Keep in mind that the boulevard’s attraction remained strong, despite the retail developments in the area.
Dristor: The closest possible to the center!
It is located very close to the southern part of the city center. This is one of the reasons that make it very popular to tens of thousands of citizens. The traffic is also very intense, as the area is crossed by cars who head to several different directions. It has managed to maintain the rental prices at decent (if not good) levels, as it combines pedestrian traffic and good visibility. Plus the income is above the average of the city.
Pantelimon: Very populated area, serious potential
This is the boulevard which is the easiest to access, almost at any hour of the day. The commercial spaces here benefit from excellent exposure and good pedestrian traffic, plus they serve an area of more than 200.000 inhabitants. If we add the suburbs (Cernica etc) where the income is much higher than the average one, the total catchment area is very attractive. This is why the shops are usually rented, once their rent is “payable”. A new Retail project is expected to open in the area in 2013 and then we will be able to measure its impact on the High Street Retail.
Titan: Unexploited potential
If we ask 1.000 employees of multinational companies about their home address, Titan will be in the top 3 positions. Its potential though remains partially unexploited. The traffic is very good, both pedestrian and by cars. People have respectable incomes and there are tens of companies who cannot “afford” to be missing from this part of the city. The population density is good as well, but there is still space for Retail potential to grow. One more area which will be tested, once a new Mall will open there in 2014.
There are more areas where the population is “what retailers are searching for”, but their Retail potential is really weak (Drumul Taberei, Timpuri Noi etc). I mentioned the ones that combine many different advantages, from a Retail point of view.