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Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.
He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.
In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.
Global Real Estate Project
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Post-communist Europe: Third wave of retail revolutionPeople in post-communist Europe have seen their lives changing significantly since 1989-1991. Political change, economic change, ideological change, territorial change (for some), there were so many changes developing simultaneously. The average person not only began buying new items, s/he also began buying in new retail outlets. It looks like post-communist Europe is catching up fast with most developed countries in terms of buying habits. In reality it has still to go an extra mile to recreate the Western way of life that is much more than a sum of some physical structures and a choice of several types of detergent.
Communist retail sectorFor the communist society, economy, and mentality, retail sector was always a stepchild. It was production that really mattered. How many million tons of iron or coal was produced was more important than how many of them were actually needed. Produced grain in the field was more important than having bread in the nearest store. The retail infrastructure was basically kept without major renovation since the pre-communist times. If you really want to have a glimpse on how stores looked like under communist system you might decide to go to Cuba. Or better you may also look at the small family shops built before the World War II or World War I in many western countries where they still exist. We usually talk about retail spaces of less than 1,000 sq.ft or 100 sq.m., including storage space. Some find these shops exotic and cute, but try to imagine everyone nowadays going to the same shop and you'll soon realize how inappropriate they are in the age of mass consumption. This was the communist retail sector up until at least mid-1980s.
First waveIn the last years of communism and especially in the first years after its overthrow millions of ex-communist countries' citizens decided to fill the gaps of the retail sector by opening millions of new small shops. They had very small capitals, usually personal savings, and sometimes some larger amounts from sold apartments or villas. Banks were still either nonexistent or preferred not to work with very small investors. These millions of small shops were even smaller than the shops that existed during the communism. The new owners usually rented garages or small street-level office spaces used by communist era mass organizations. These millions 'mini-markets' had fundamental economic flaw, they couldn't allow for enough capital accumulation in order to make their owners more than just self-employed shop-keepers. What they gained they had to reinvest immediately to buy usually the same amount of products. With so many shops applying only one business model many of them had finally to close down.
Second waveUnlike the West where many large commercial companies have started from small family shops, in post-communist Europe the big players actually came first from abroad. Betting on the presumption that the urban population sooner or later will move away from the crowded downtowns, these chains started by mid-1990s to build very large stores, the size of Home Depot or Costco, near the main exit highways. The effect of these developments was twofold. On the one hand, they inflicted a fatal blow on thousands of small shops still operating in the downtowns. Using the economy of scale, these new commercial monsters could sell far below the price of the competition. On the other hand, what they did was to inflate the price of land around the largest cities, thus making new residential developments less likely. Their main goal however, to become the main stop for shoppers, didn't materialize in most post-communist countries. Most wealthy persons still live in the downtowns. The transportation infrastructure is still far below the West European and North American standards. People in general cannot afford to move away from the cities. Thus these commercial stores of the second wave, despite their relative profits, have still to wait for their golden age.
Third waveThird wave of the post-communist retail revolution started at the end of 1990s. Predominantly foreign capitals, again foreigners, decided to make built modern shopping malls within the old city centers. These malls should provide additional services than just being a short stop for hurrying shoppers. They have to become a place for social contacts, for fast food, for modern cinema theaters and for many other attractions. They use the fact that most people with money are actually still living nearby. They also use the strategic position of the city downtown for all those who pass by from and to work, as well as for all those who pass by the city on business or pleasure tourism. These malls are still not very many, and in some post-communist countries they are barely entering the market. Save for the special retail villages, which are still a relatively new model even in the West, this third wave completes the circle of modern system of retail outlets.
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