The Retail Association of Ukraine states that the number of operating retail facilities has decreased by 29% over the month of hostilities on the territory of Ukraine.
Ukrainian News Agency learned this from a statement of the association with reference to the study.
The study was conducted by an online survey among 97 owners and CEOs of retail enterprises from March 18 to March 21, 2022.
"As of March 21, the total number of operating retail outlets in Ukraine amounted to 9,701, with a total number of 13,674. Currently, 3,973 retail outlets are closed due to their complete or partial physical loss, the inability to supply goods, the threat of danger to personnel. At the same time, out of 71% of open facilities, 15-18% work on a limited schedule or several days a week due to hostilities. The remaining 52% of existing retail facilities experience difficulties with the availability of goods from manufacturers and their transportation, lack of logistics personnel and staff in stores," the statement said.
According to it, the largest number of closed objects fell on the jewelry segment.
"In the Jewelery category, 1,119 outlets have suspended their work, which is 85% of the industry. Now the number of open jewelry stores is 194, they mainly work in Western Ukraine and large cities that are not in the zone of active hostilities. The largest losses in percentage terms were the entertainment industry and fashion retail: out of 46 entertainment centers and cinemas 40 or 87% are currently closed. Sellers of clothes, shoes and fashion accessories were forced to close 72% of stores or 368 outlets out of 510. Such figures are due to the fact that many shopping centers and malls, where mainly famous brand stores are located, are now closed, and in areas of active hostilities and occupation in general damaged or destroyed (for example, such shopping and entertainment centers as the Nikolsky shopping center in Kharkiv, the Fabrika shopping center in Kherson, the Retroville shopping center in Kyiv, etc.),” the statement says.
According to the statement, 51% of household and digital equipment retailers also do not work, in addition to complicated work in war zones, there is the problem of destroying some warehouses, such as in the Foxtrot chain, as well as a sharp change in demand for different categories of goods.
The number of stores in non-food retail decreased by about a third, so out of 111 outlets selling building materials, only 76 remained open, and in the segment of household goods, household chemicals and cosmetics, 724 stores or 27% of the industry were closed.
In the pharmaceutical segment, 625 pharmacies were closed, which accounted for 16% of the industry, while the food segment (mini-markets, supermarkets) decreased by 580 outlets (-17% of the industry).
"In grocery retail, the issues of the availability of goods and their logistics are acute, especially in war zones, which makes it difficult to provide retail facilities in these regions. The destruction of warehouse and production facilities by the enemy added to the problem. Also, the closure of retail outlets is often associated with the optimization of retail chains, when “base” stores are left open, while the rest of the stores temporarily stop working or are used as a warehouse,” the statement says.
As Ukrainian News Agency reported, the Ministry of Economy estimates Ukraine's losses from the Russian invasion at USD 564.9 billion.
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