The ball is in our court

Further Covid restrictions have just been announced, which include limiting the number of people per sqm allowed into shopping centres. How has the pandemic and its restrictions affected business in malls?

Anna Malcharek, the managing director of Gemini Holding and vice-president of the Polish Council of Shopping Centres (PRCH): It’s been a stressful time (smiles). Firstly, I should point out that shopping centres from the very beginning have taken every possible measure to ensure safety, both for employees – because with a centre of around 40,000 sqm at least 1,500 people will be working there – and for shoppers. The PRCH is currently talking with the government and every guideline that results from these talks is passed on to shopping centres and then implemented. Shopping centres are and have been safe, which is a message that we as a sector often communicate. Moreover, we take every possible pre-emptive measure and promote social responsibility That’s why, for example, in the Gemini Park centres in Biełsko-Biała and Tarnów there are vaccination points. The sector faces many challenges that are a sign of these times; but unfortunately, not all shoppers want to wear masks and comply with the restrictions. It often happens that people become aggressive when confronted by security staff. I don’t understand this. We need to show respect for one another and be socially responsible.

The pandemic has hit Polish retail hard. What do you think the future of Polish shopping centres will be like?

Of course, we have had to face with a lot of problems. Especially during the lockdown, when regulations were arbitrarily imposed that denied us our revenue without any help or support from the Polish Development Fund or financial assistance from the government’s shield programme. Our tenants received no help whatsoever. However, I’m an optimist at heart and I believe in retail. My prescription for all the problems that arise is always to adapt to the changing circumstances and seek out new solutions – and as a result, change. The market in which we have to operate right now is difficult. During the lockdowns, many things were disrupted, including trade, supply chains, customer service, tenants’ revenue streams and rent payments to shopping centres. Tenants and landlords have had to adapt very quickly. I can say that Gemini Park’s centres are operating very well and shoppers have returned.

And are you tempted to make predictions about the market?

It’s been written in many publications that the pandemic has sped up the evolution of a new type of consumer. Such individuals do their shopping when they want to and pursue their own needs and desires. Retail must adapt to these needs. Paradoxically, this doesn’t mean that online shopping has gained a huge upper hand. We need to look for solutions that combine the online with the offline. Basically, I believe in retail. I believe that we are social animals and we need the company of others. We need to shop as a form of reward and as a way to spend our time, which in the end is confirmed by the rises and falls in online trade after the lockdowns. During the lockdowns, internet shopping did indeed rise by 11 pct, but afterwards it fell by 7–8 pct, which means it has held more or less steady over the period. In my opinion, bricks-and-mortar retail will maintain its position over the long term. The importance of local communities will continue to grow and it will become increasingly important how near and accessible a location is. Let’s not forget that Polish shoppers like shopping centres very much, which is unsurprising given the climate in which we live. Shopping centres provide a way for us to spend our time. They provide a form of entertainment and an opportunity to socialise. The pandemic has only confirmed to us how important all of that is.

What is 2022 going to be like for Gemini and the centres it owns?

In March 2020, we began constructing a centre in Tychy with retail, services and entertainment. We’re planning to open this in Q1 2022. Among its new features there will be a seven-screen Multikino cinema, which will be the first of its format in Silesia and featuring all the latest solutions. We can’t wait for the opening. The food section will be a challenge, because this sector has suffered under the pandemic, but we are in advanced negotiations and are convinced that everything will work out. We also have a big challenge before us in Tarnów, since right now we are at the stage of signing up new tenants. We are going to rebuild the former large-format Tesco, which used to operate with us. Gemini Park Tarnów is a regional centre and so we are looking to supplement the tenant mix to emphasise its unique character and regional prominence. Gemini Bielsko-Biała is also undergoing a large-scale recommercialisation, which will strengthen its home & deco range – a segment that has been developing rapidly during the pandemic.

And finally, a personal question: have you made any new year’s resolutions?

I always try to set myself new goals. I really enjoy a challenge, so I try to think them up and then work out how to achieve them. I’m passionate about playing tennis. I think it’s a fantastic way to get away from what is, after all, a very stressful job. When I first joined a tennis league, I usually lost. Then it struck me that if I didn’t lose so badly, it would be an improvement. First I said to myself: “OK, I’m going to lose, but not with zero points, with four games.” Later, I told myself I could win at least a couple of matches. Then, after I’d managed to win a few, I set my sights on getting into the play-offs. And now I’m in the playoffs, I’m thinking it would be great to win the whole thing!

Interview: Magdalena Rachwald