Tbilisi, the capital of Georgia, is home to approx. 30% of the country’s population and is by far its largest city being almost 7 times more populated than Kutaisi, the second largest city. Politically, culturally, economically and socially, this is the heart of the country and has been the capital almost continually since the 5th century. The city, particularly the Old Town, teems with history and enjoys a dramatic setting on hillsides either side of the Mtkvari River. Modern Tbilisi has progressed significantly since independence was gained over 25 years ago and boasts a number of new development projects.
Historically, Tbilisi has been home to people of diverse cultural, ethnic and religious background. Today there is a wide and growing array of good accommodation and places to eat, and a busy cultural scene and nightlife that attracts an increasing number of tourists. Tourism comprised 7.3% of GDP in Georgia (2015).
The city’s retail market is represented by a variety of development types from open markets, bazaars and old type shopping centres to contemporary high street retail and modern shopping & entertainment centres. In terms of the current provision, based on the international standard criteria of modern shopping centres, the market is still far from being saturated. The number of proposed developments, either planned or currently under construction, should lead to an increase in the retail supply in the short and medium term.
Currently, only about 20% of the mass-market fashion retailers present in other CIS countries are operating in Tbilisi, that means that there are plenty of opportunities for brands to enter the market in Tbilisi and subsequently expand further through the rest of the region.
RUSTAVELI AVENUERustaveli Avenue is a central part of Tbilisi stretched between freedom Square and Tbilisi State Concert Hall. The avenue is home to premium and luxury fashion brands with the presence of Burberry, Chopard and Chronograph, Ermenegildo Zegna, Villeroy & Boch, Swarovski, Hugo Boss, Marella, Paul & Shark as well as Merani Shopping Gallery, comprising such brands as Zara, Massimo Dutti, MAC and Coincasa. Moreover, Rustaveli Avenue hosts Tbilisi State Museum, Rustaveli Cinema (which is the city’s largest cinema hall), McDonald's and Wendy’s restaurants. It is also home to international hotels such as Radisson Blu, Courtyard Marriott and Marriott Tbilisi. All the main streets, where the entertainment is in full swing are connected with the Freedom Square. Noteworthy is the increasing pipeline on upcoming international hotel brands on the avenue such as Millenium, Hyatt and Rixos.
PEKINI AVENUELocated in the suburb of Saburtalo, Pekini Avenue is one of the most established retail high streets in Tbilisi. The district is mainly populated with the middle and professional classes and is considered as one of the central places for living. The area accommodates mass market and value brands, and enjoys a high level of footfall due to the number of residents, workers and students who pass through daily. Etam, Promod, Koton, Naf Naf, Kookai, Mexx, Yamamay, are the most well-known retail brands represented in the area as well as local parfume stores - Voulez-Vous and Lutecia.
CHAVCHAVADZE AVENUEOne of the busiest streets, located in downtown area of the capital city. Vake district is mainly populated with middle and high-class families and the households with relatively higher income than the city average. The street provides excellent shopping facilities with famous brands, Calzedonia, Intimissimi, Levi’s, Lee, Timberland, Max Mara Weekend, La Cuccina and Karaca. The most notable mixed used development comprising hotel (Pullman), residences, offices and a retail podium Axis Towers is due to open in 2017.
DAVIT AGHMASHENEBELI AVENUEDavid Aghmashenebeli Avenue is one of the oldest streets in the city, with residential buildings, whereas old "Italian style" buildings (with a small yard shared by several families) are used for residential purposes. Traditionally, the street has been home to a number of ethnic, mainly Turkish, individual retail operators. In 2010 the government funded a comprehensive renovation project along the street that increased the interest from intenational brands: Aldo, New Look, Suiteblanco, Yves Rocher, F & F, Terraova, etc.
Tbilisi mallLocated just over 10 km north of the city centre, Tbilisi Mall, comprises circa 74,000 sq.m of lettable space over several floors. It is the first modern-format retail project to be built in the South Caucasus Region and is anchored by a 9,000 sq.m Carrefour supermarket, as well as a number of well-known retailers, including Inditex brands such as Zara, Massimo Dutti etc. The Mall also has a food court and multi-storey covered car park, and a multi-screen cinema.
TBILISI CENTRAL SHOPPING MALLTbilisi Central Shopping Mall benefits from being strategically located next to the city’s main railway station. This intermodal transport hub comprises approx. 25,000 sq.m GLA shopping area and has a mixture of fashion stores, food outlets and a supermarket. However the main driver is a massive choice of electronics and Golden Market.
MERANI SHOPPING GALLERYMerani Shopping Gallery is located in the very heart of the city, on Rustaveli Ave. This is a modern shopping gallery with 7,645 sq.m. GLA comprising 4 floors and benefits from A class offices on top floors. It is anchored by brands like Zara, Massimo Dutti, Okaidi Obaibi, MAC, Coin Casa etc.
GLDANI MALLThe Gldani Mall is located in Gldani-Nadzaladevi district, the highest populated district in the city. Compared to the other districts, the area is mostly developed with multistory residential buildings. It is also considered to be industrious with wine, cognac and champagne plants. The 7 story shopping center with 7,000 sq.m GLA offers customers a wide range of local and international brands and hosts more than 50,000 visitors per day.
EAST POINTA 72,500 sq.m. largest shopping village in the region, East Point is located in uptown area of the capital city on the main highway to the East. Two-floor open air concept Shopping Village featuring International and local operators as well as F&B and entertainment components. Main anchors are Carefour, Domino DIY, Zara, Massimo Dutti, Koton, Lc Waikiki.
IG MALLThe 9,512 sq.m. shopping center IG Mall is located in the downtown area of the capital city, Saburtalo district, populated with mainly middle-class families and the households with relatively higher income than the city average.
It is a two-floor shopping center with a fusion of fashion shops for all ages, including demanded shops such as OVS, accessories kiosks, food court KFC, home textile/accessories, Electronics. Its anchor is Goodwill Supermarket.
|SHOPPING CENTER TO WATCH OUT FOR|
|Center Name||Galleria Tbilisi|
|Total Size (Sq.m)||22,000 GLA|
|- Retail GLA||N/A|
|- Leisure/Entertainment GLA||N/A|
|- Retail Park GLA||N/A|
|Planned Opening Date||Q3 2017|
|Consumer Profile||Middle Class|
|Description||Galleria Tbilisi is located in the heart of Tbilisi on Rustaveli Avenue, the most representative street of the city, in the vicinity of the former Parliament House, the City Council, the Ministry of International Affairs, the National Museum, and other important institutions, making it a destination point for both local residents and tourists. It is currently under reconstruction and is due to launch in Q3 2017. The development is designed around the existing Griboedov and Liberty Theatres. The mall is also linked to the Metro Station Freedom Square by way of a new reception and ticket area on the ground floor that links directly to the metro platforms. This new venue will provide a comprehensive family entertainment and leisure elements, food outlets, fashion for all ages, food store and house and home appliances.|
|KEY AREAS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||TYPICAL RENT FOR UNIT OF 200SQM||RANGE OF UNIT SIZES|
|Rustaveli Avenue||Mid/high end Local shoppers,Tourists||Burberry, Chronograph, Swarovski, Marella||N/A||$45||90-1700|
|Pekini Avenue||Low/mass-market Local Shoppers||Promod, OVS, Parfoia, KFC, Koton||Next||$35||50-800|
|Davit Aghmashenebeli Avenue||Low/mass-market Local Shoppers,Tourists||New Look, Suiteblanco, Promod, Clarks, Aldo, Charles and Keith, Baldi||Terranova||$30||100-950|
|Chavchacadze Avenue||Mid/Low Local shoppers,Tourists||Calzedonia, Intimissimi, Timberland||Calzedonia, La Cuccina||$30||40-800|
|Tbilisi Mall||Mid/Low Local shoppers,Tourists||Zara, Bershka, Massimo Dutti, Stradivarius, Oysho, Carrefour Calzedonia, Koton, New Yorker, LC Waikiki, Nike, Puma, Giordano,Colins||Super (Toy Store), Corso Italia, Moa,Tac||$25||22-11400|
|East Point||Mid/Low Local shoppers,Tourists||Zara, Massimo Dutti, Koton, , McDonald’s, Terranova, Carrefour, LC Waikiki, Calzedonia, Domino (DYI)||Old Wild West, Factory, Colins||$30||41 -11140|
|Tbilisi Central Shopping Mall||Low/mass-market Local Shoppers,||LC Waikiki, Collezione, AltaOkey(Technics Shop), L’Oreal||Terranova, Flo||$25||36-2900|
|Merani Shopping Gallery||Mid/Low Local shoppers,Tourists||Zara, Massimo Dutii, Obaibi-Okaidi,Mac Accessoires, Koton, Parfois||N/A||$25||19-1700|
|Ig Mall||Mid/Low Local shoppers,Tourists||KFC, Calzedonia, Yves Rocher, OVS, XS Toys, Goodwill (Supermarket)||N/A||N/A||N/A|
|Gldani Mall||Low/mass-market Local Shoppers,||Koton, Colins, Bebe +, LC Waikiki, Polaris, Alexander Guardi||N/A||$25||35-1350|
Data as of July 2016
Competition between restaurants is intense, since dining options abound. No single company has the market. Competitors include everything from local Georgian cuisine and pizzerias to fine-dining restaurants and international Fast Food brands (Wendy’s, Burger King, Subway, McDonald’s, Domino’s Pizza, Dunkin’ Donuts, Paul, Morelli’s Ice Cream, Hard Rock Café, The Coffee Bean & Tea Leaf).
Due to the high number of tourists, particularly in the Old Town area, there is a big variety of dining options. Correspondingly, various international cuisines are represented in this area, although Georgian options still dominate. The Old Town is also home to the vast majority of the city’s best cafes, bars and clubs and has a real European, almost Mediterranean, feel, especially during summer when the weather is warm and tourist numbers are high.
The global chain “Hard Rock Café” has recently entered the market by opening its first restaurant in Tbilisi downtown.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATORS INCLUDING||RENT FOR 300-350 SQM UNIT|
|Vake District||Mass market/high-end||Subway, Wendy’s, Canape, 4seasons, Sakura, Pauls, Entrée, Luca Polare||Information not available|
|Old Town||Mass Market/high-end/lounge Bars||El Centro, Unique, Mohito Lounge, Mclarens Irish Pub, Entrée, Dunkin’ Donuts, The Coffee Bean & Tea Leaf||Information not available|
|River Side||Mass Market||Tavduri, Qartuli Saxli, Kolkheti, Babilo, Tsisqvili, Golden Mug, Maspindzelo, Metekhis Chrdili||Information not available|
Data as of July 2016
Nino DekanosidzeAssociate Director, Veritas Brown
N71 Vazha-Pshavela Avenue
Block 10, 6th floor
Tbilisi 0186, Georgia
Tel: +995 322 47 48 49
Mob: +995 599 73 57 30