STRATEGIC MANAGEMENT CHALLENGES OF LARGE SHOPPING AND ENTERTAINMENT CENTERS UNDER MARTIAL LAW CONDITIONS

Abstract

This article investigates the challenges faced by the owners and managers of large shopping and entertainment centers (hereinafter - SEC) under martial law, due to the full-scale invasion of the Russian Federation into Ukraine in February 2022. The destruction caused by the shelling of civilian infrastructure, high levels of risk, unpredictable market conditions, and business prospects are challenges that require an appropriate response from the top managers of this commercial real estate segment. This article examines the adaptation of operational strategies and the budget process for the restoration of an SEC that was damaged due to hostilities. The practical aspects of managing large shopping and entertainment centers during active military operations have been investigated by the authors. So far, there have been no studies dedicated to these pertinent aspects of management in conditions of armed conflict. The risks that shopping and entertainment centers face during martial law have been systematized. Using the example of the "Riviera Shopping City" (Odesa, Ukraine), the directions of strategic management adaptation in conditions of martial law have been analyzed, which holds practical significance for owners and managers of such centers, as well as for governmental authorities and other stakeholders. As a result of the full-scale invasion and intensified hostilities, a significant portion of assets in Ukraine has been damaged, leading to a acute shortage in the commercial real estate market for resources necessary for recovery, taking into account the new economic realities. It is argued that the restoration of shopping and entertainment centers (SECs) will serve as a powerful catalyst for investment activity, stimulating the labor market and tax revenues, considering that in many regions, large SECs are among the largest employers and taxpayers. The implementation of recovery programs in conditions of martial law requires adaptation and updating of strategic management strategies to seek the most effective solutions for investment and support business operations' performance.