Hannes Lindner. Credit: Standort und Markt
Studies & Reports | Ticker

29.7 million euros gross lost revenue per day in Austria

Standort + Markt recently published a first estimate regarding the anticipated daily loss of revenue of shopping places in Austria due to the corona shutdown. Its results provide solid guidelines for the European retail real estate market in general.

Standort + Markt is headquartered in Lower Austria and has been supporting the retail real estate industry for more than forty years. This consulting company operates across the entire CEE region and provides analyses, market surveys, assessments, as well as evaluations for projects and locations. Due to the company’s years of experience, it provides competent and independent support. Standort + Markt recently published its first estimate regarding the daily revenue losses of Austrian shopping places due to the corona shutdown. Its results provide solid guidelines for the European market in general. Further estimates and updates will be published as they come in.

Their research focused primarily on expected daily revenue losses in malls but also in selected inner cities. According to the Standort + Markt documentation “Shopping Center Österreich 2019/20”, which is currently being finalized, there are 242 shopping centers with a total of 4.07 million sq m of leasable shopping area in Austria, including 141 malls and 101 retail parks. The annual gross revenue of these 242 centers amounted to approximately 13 billion euros (provisional figure) in 2019, generated by roughly 8,700 shops. Standort + Markt located each shopping area with their own GIS system and individually assigned each of them roughly estimated revenue figures. Therefore, it was possible to determine a daily average of the anticipated loss in revenue that will be accrued due to the decreed closings of shopping areas in Austria’s shopping centers.

Retail parks less severely affected

The results of this comprehensive data structure are as follows, however, they do not take further specific characteristics into account–such as seasonality or bridge days: Approximately 77% of the 4.1 million sq m in shopping centers remain closed due to the government’s measures–this amounts to approximately 3.1 million sq m. Based on the previous year’s gross revenue of approximately 13.0 billion euros, one can determine a preliminary theoretical revenue volume per day for all shopping areas in Austrian shopping centers for 300 days. This target value amounts to 43.3 million euros. However, only 31.5% of this revenue is effectively generated. Therefore, shop operators in Austrian shopping centers lose 68.5% of their revenue due to the shutdown, which amounts to a gross figure of 29.7 million euros.

It is interesting and understandable that retail parks are significantly less affected by these revenue losses than malls due to their tenant mix, which focuses characteristically on local supply. Especially bigger malls, which are predominantly fashion-oriented, are struggling in this situation.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

Zara Home poised to unveil its new global image

The new Zara Home store concept offers customers a unique experience when they come in to discover its collections. The idea at the heart of the new design, whose rollout began this week at the Plaza de Lugo store in A Coruña, is to create an enjoyable visit to a home that prioritises sustainability and comfort, in which beauty, technology and well-being meld together.

New shops open at the Churchill Shopping Centre, Dudley

Three new stores have opened at The Churchill Shopping Centre in Dudley, heralding an exciting start for 2021 for local shoppers. Cakebox, which specialises in freshly baked egg-free cakes, cupcakes and celebration cakes, has agreed a 10-year lease for unit 9, while discount retailer MaxiSaver has opened a 5,380 sq ft store in units 10-12.

Greenman OPEN signs second framework agreement for €46 million

Greenman OPEN has entered into a €46 million framework agreement with Schroder Holding GmbH, a German developer, securing the rights to acquire seven new standalone EDEKA markets.

People in move

Recruitments, promotions and appointments...

Citycon appoints a Vice President, Strategy and Investor Relations

Laura Jauhiainen, CFA, has been appointed as Vice President, Strategy and Investor Relations at Citycon as of 1 January 2021. In this role, she will lead Citycon’s new strategy function and support Citycon’s strategic transformation further towards a mixed-use real estate portfolio combining modern retail with residential, office and municipal service space.

REInvest acquires exclusive portfolio in Copenhagen

Core office and retail space in the new Carlsberg City district.