According to the study, market performance is diverging sharply between segments. Food retail recorded revenue growth of 44.8% between 2010 and 2025, while non-food sales declined by 8.6% over the same period. Discounters have benefited from increased price sensitivity among consumers.
At the same time, brand manufacturers are expanding their own store networks in order to reach customers directly. Large operators show a clear tendency to mix established formats with smaller city concepts. Health and beauty providers are also expanding, particularly in high-footfall locations.
“The structural transformation in retail is continuing, but at the same time it is creating new opportunities for future-proof properties that can flexibly respond to changing consumption and usage requirements. For cities, brick-and-mortar retail remains extremely important, as it represents the primary trigger for many people to visit city centers.”
Joachim Stumpf, Managing Director of BBE Holding and the IPH Group
Local convenience retail remains the most stable pillar of the brick-and-mortar sector. Food and drugstore products still generate around 95% of their sales through physical stores.
In contrast, mid-sized non-food specialty retailers are under pressure. Labor shortages, succession issues and rising competition from online retail are weighing heavily on the segment. In key city center categories such as fashion, footwear and sporting goods, the stationary sales share has, in many cases, fallen below 50%.
The study also points to a growing polarization of locations. Expanding formats are primarily concentrated in metropolitan regions and dominant shopping centers, while smaller and medium-sized towns are more likely to see contraction. Cities with strong purchasing power, high centrality, tourist appeal and attractive urban structures show greater resilience. At the micro level, prime high street pitches are becoming increasingly concentrated in smaller core areas, while peripheral zones are losing retail use altogether.
A key theme of the report is the rising importance of so-called Retail Plus concepts. These strategies focus on combining retail with complementary uses such as gastronomy, healthcare, leisure, services and experience-driven formats. The aim is to create additional reasons to visit, extend dwell time and stabilize footfall over the long term.
Different uses contribute differently to a property’s performance. Gastronomy or medical practices can generate a strong frequency, while residential uses tend to reduce it. Some leisure concepts can only sustain modest rents, whereas serviced apartments may achieve comparatively high rental levels. Cultural uses, such as museums or event spaces, can strengthen a location’s identity but typically contribute limited rental income.
“The decisive factor is the right combination of uses, which varies depending on location, property type and existing customer flows,” says Joachim Stumpf, Managing Director of BBE Holding and the IPH Group. “If different functions are combined effectively, the long-term value of the property can be secured.”
