Shopping centres suffer EUR 6 million losses every month due to restrictions
Since 15 November, the trade sector has been experiencing another period of restrictions. Currently, points of sale exceeding 1,500 m2 are available only to customers with vaccination certificates, while on weekends, only basic necessities stores operate in shopping centres, but outside them all points of sale are allowed to operate. Dividing points of sale accordingly to their space, again distorts the competition in the country and causes significant losses, therefore the industry calls on the Government to immediately approve a support program for shopping centres.
“The restrictions in force in the trade sector once again restrict the activities of certain companies, preventing them from admitting all visitors or operating on weekends. In the meantime, all stores outside the shopping centres are allowed to operate on weekends. As a result, shopping centres are suffering an average loss of € 6 million a month and are looking forward to the upcoming holiday season with concern, when losses could significantly increase even more. In order not to create even more severe financial difficulties for entrepreneurs, the industry calls on the Government to study the dire situation of shopping centres in detail and make a decision on a support program by allocating compensation per square meter for the current restrictions' period. This would allow to compensate the caused and expected losses, as well as give hope that shopping centres will survive the difficult time of the pandemic,” says Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers.
Considering that currently points of sale with an area of more than 1,500 m2 operate only in the green mode, serving customers with vaccination certificates urges people to gather in smaller shops that operate in the red mode. At the same time, only basic necessities stores are allowed to operate in shopping centres on weekends and holidays, while there are no such restrictions outside shopping centres. These regulations promote crowding of people into smaller stores with worse ventilation than in large shopping centres, creating an epidemiologically unsafe environment and significantly distorting competition by restricting the ability of merchants with the stores located in the shopping centres to operate.
About the Alliance of Real Estate Developers
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry and represent it in a collective manner on a state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
Detailed information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv
“The restrictions in force in the trade sector once again restrict the activities of certain companies, preventing them from admitting all visitors or operating on weekends. In the meantime, all stores outside the shopping centres are allowed to operate on weekends. As a result, shopping centres are suffering an average loss of € 6 million a month and are looking forward to the upcoming holiday season with concern, when losses could significantly increase even more. In order not to create even more severe financial difficulties for entrepreneurs, the industry calls on the Government to study the dire situation of shopping centres in detail and make a decision on a support program by allocating compensation per square meter for the current restrictions' period. This would allow to compensate the caused and expected losses, as well as give hope that shopping centres will survive the difficult time of the pandemic,” says Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers.
Considering that currently points of sale with an area of more than 1,500 m2 operate only in the green mode, serving customers with vaccination certificates urges people to gather in smaller shops that operate in the red mode. At the same time, only basic necessities stores are allowed to operate in shopping centres on weekends and holidays, while there are no such restrictions outside shopping centres. These regulations promote crowding of people into smaller stores with worse ventilation than in large shopping centres, creating an epidemiologically unsafe environment and significantly distorting competition by restricting the ability of merchants with the stores located in the shopping centres to operate.
About the Alliance of Real Estate Developers
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry and represent it in a collective manner on a state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
Detailed information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv