The company "Acropolis Group" is preparing to build a multifunctional cultural, business, shopping and entertainment quarter "Akropolis Vingis" near Vingis Park. There are questions about how competitors - other shopping centers - will react to such big plans.
It is planned that the "Akropolis Vingis" block will have internal streets, shops, a concert hall, a conference center, office and apartment buildings, a food hall, recreation areas and underground parking. parking lots. So, the ambitions are really big.
Competitors are feeling the strain
However, experts also see certain risks here, which may be experienced by Acropolis' competitors - "Oz", "Europe", "Panorama".
"As for the smaller competitors, I think it will be much more difficult for them to compete, because it must be admitted that both Acropolises are well connected to busy arteries, both are easy to reach. In terms of size, they will surpass all competitors or at least not be smaller", Arūnas Vizickas, the head of the price comparison portal Pricer.lt, told lrytas.lt.
He added that there is little that other shopping and entertainment centers will be able to do to stay competitive.
"We see that it is very difficult for "Europa", more difficult than "Oz", "Panorama". With the possible appearance of a new player, there will be another one who will experience difficulties, he will have to think about what to create, what to do. And the space is not that much. You can try to create something more original in food or entertainment, but it is not an easy task, because it costs quite a lot, and the return is not guaranteed", A. Vizickas thought.
"I imagine that the competitors really feel the tension, have certain questions, but there should be no fear or panic. There is only tension, what will happen: maybe some tenant will run over, maybe something will happen?" - seconded Linas Šimonis, a marketing specialist.
He added that the new "Akropolis" may disappoint its competitors and tenants.
"It is possible that shops from other parts of the city will move to Akropolis - maybe there will be better rental conditions, better traffic, more buyers, etc.," thought the marketing specialist.
Not all customers will escape
However, not all experts share this opinion. According to economist Algirdas Bartkaus, the situation for other shopping centers will not worsen at all.
"The pricing that we have in Lithuania does not affect the turnover that companies make on the scale of the entire republic. For large retail chains, the appearance of a retail outlet, even if larger, will not have a particularly large impact on their pricing. New shopping centers appear when there is demand for them. Vilnius is a center of attraction that attracts residents from all over Lithuania. In Vilnius, we have considerable population growth, so we also have a reserve for development", A. Bartkus is convinced.
According to him, it may be difficult for competitors only at the very beginning of the opening of the new Acropolis, when people will be interested in how everything looks. Then the streams should return to their places.
"When a new outlet appears, consumers always want to try it from the start. Then there will be a slight decrease in customers in other shopping centers, but this is only temporary. After that, the flow is restored," A. Bartkus is convinced.
"All customers will never run away, there is no need to have any illusions. Buyers are redistributed, but everything is in order - it will be full of people and everyone will buy. I think that there will be enough space for everyone", seconded L. Šimonis.
Will you hurt yourself?
However, it may also happen that the new "Akropolis Vingis" quarter will not harm the competitors, but the old "Akropolis".
"They need to figure out how to make sure that the new Akropolis doesn't cannibalize the existing one or make such calculations that maybe they will earn more through both than they do now from one," said A. Vizickas.
"It is likely that new stores will open in the "Akropolis Vingis" quarter, which have not yet been seen in Lithuania, and which are of a similar level. This would have a significant negative impact on the shops in the old Acropolis. But I don't really believe that prices will fall or rise for the final buyer. It is true that if it is related to the arrival of some larger Polish or Middle Eastern trader, it is possible that prices will decrease - the greater the competition, the lower the prices," added L. Šimonis.
According to him, the prices in other shopping centers should not change.
