At the end of 2023, reductions in income from clothing per square meter in different brands were recorded, but this reduction is not considered critical, stated in the study of NAI Ukraine.
In Ukraine, most people have changed their approach to emotional purchases and have become more cautious about their budget, which led to a reduction in clothing costs and affected brand profits.
Mass markets have felt minimal changes by losing 12.5% or $ 50 in a square meter. This is due to the availability and solution of the basic needs of this category of goods.
The middle segment brands have on average lost $ 100 or 20% of square meter income due to market trends and stopping the activities of major players, which has encouraged people to make purchases through online stores.
The biggest losses were premium brands, raising 28.5% or $ 200 in a square meter. These results are explained by the significant outflow of solvent population abroad and the overall reduction of the population in Ukraine.
Despite the losses in turnover, brands receive more net profit by reducing rent and rent conditions determined during negotiations than before the war.
It is also worth mentioning that the owner of brands such as Zara, Stradivarius, Pull & Bear, Massimo Dutti and Bershka will return to Ukraine after a two -year absence. The Spanish group of Inditex will begin to restore the activities of Ukrainian stores from 20 establishments in Kiev, but the exact terms have not yet been set.
