Investing more in the immediate environment: Covid-19 has sent consumers to make their home
The transition to recreation and working from home during the covid-19 pandemic has strengthened the spread of home décor complexes. Against the background of the drop in mall revenues, there is a notable growth of 16% in the industry’s sales in May to July, and two more huge design complexes will open soon
From data from shva (automatic banking services), systems operator Clearing And credit card billing shows that from January to March of this year, Israelis spent an average of about NIS 78 million on furniture and household items. In April, when stores were closed due to covid-19, sales dropped to a daily average of about NIS 71 million, but in May and June they jumped to NIS 92 million and NIS 95 million, respectively. Although there was a decline to NIS 84 million in July, sales are still high compared to the pre-COVID-19 period.
This trend of investing in the home environment began already before the pandemic, and the past few years have indeed been characterized by the construction of large shopping complexes that specialize in home design, along with moderation in the construction of regional malls. The corona period, which has moved the centers of recreation and work to the home, only supports this trend. In the coming months, two huge home design complexes are expected to open: Redesign near IKEA in Kiryat Ata; and Design City in Mishor Adumim.
This trend of investing in the home environment began already before the pandemic, and the past few years have indeed been characterized by the construction of large shopping complexes that specialize in home design, along with moderation in the construction of regional malls. The corona period, which has moved the centers of recreation and work to the home, only supports this trend. In the coming months, two huge home design complexes are expected to open: Redesign near IKEA in Kiryat Ata; and Design City in Mishor Adumim.
"Lively demand"
In Redesign, which is scheduled to open in December, the developers invested NIS 250 million in construction and land purchases. The owners of the complex now are Amir Biram’s JTLV Fund, which holds 50% of the project; original landowner Shuki Schwartz, owner of the Tolman’s furniture chain, who holds 22%; Uri Kramer of Continuum Industries, a sanitary ware company, which holds 22% of the project; Adi Blitzblau of Blitzblau Metal Industries, who holds the remaining shares.
Design City is being built by Kass Group, owned by entrepreneur Hanoch Kass. The complex will include 110,000 square meters of commercial space and a parking lot, and is planned to open in April 2021. The company explains that the complex will be inspired by the Venice Hotel in Las Vegas, and will include a floor with 250 home décor stores, a dining and entertainment complex, a WeWork floor for architects and a hotel with 40 rooms.
Design City is being built by Kass Group, owned by entrepreneur Hanoch Kass. The complex will include 110,000 square meters of commercial space and a parking lot, and is planned to open in April 2021. The company explains that the complex will be inspired by the Venice Hotel in Las Vegas, and will include a floor with 250 home décor stores, a dining and entertainment complex, a WeWork floor for architects and a hotel with 40 rooms.
In the particularly pretentious project, Kass Group invests about NIS 400 million. “Design City is neither a center nor a mall, but a real city,” says Hanoch Kass. “The complex is expected to become the business center of Jerusalem and serve a population of 1.5 million customers from Jerusalem and the surrounding area.” The complex will open stores for furniture, design, electrical appliances, ceramics, home accessories, wallpaper and more.
Covid-19 has increased the demand for retail space among home décor stores. “Immediately after the opening of the stores, we saw a strong demand for stores that remained unmanned in RedDesign,” says Ohad Sinai, of the JTLV Foundation, which among other things is responsible for the construction and marketing of the Redesign complex. “It’s an area that’s less biased online because a closet, bed or sofa are products that the audience needs to feel their physical comfort and see if they meet the need.”
Covid-19 has increased the demand for retail space among home décor stores. “Immediately after the opening of the stores, we saw a strong demand for stores that remained unmanned in RedDesign,” says Ohad Sinai, of the JTLV Foundation, which among other things is responsible for the construction and marketing of the Redesign complex. “It’s an area that’s less biased online because a closet, bed or sofa are products that the audience needs to feel their physical comfort and see if they meet the need.”
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