The Glatt shopping center in Wallisellen is one of the largest in Switzerland. Image: Glatt
Studies & Reports

It Could Be Rosier…

Experts continue to fear a drop in sales in retail stores, falling demand for retail space, and store closures. That is the essence of the “4th Shopping Center Market Report Switzerland 2017.”

The consulting firm stoffelzurich surveyed 248 experts from the shopping center and retail industries about what they expected over the next two to three years for the “4th Shopping Center Market Report Switzerland 2017.”

The study’s forecasts show a bleak picture regarding sales growth, demand for retail space, and store closures. While only 33.6% of experts surveyed in 2013 foresaw a negative sales trend in retail stores and shopping centers, nearly 72% of the participants in the current reporting year were pessimistic. Conversely, 92% of the experts expect an increase in sales for online retail.

The situation for foreign purchases seems to have stabilized. Around two thirds of participants expect foreign purchases to remain at existing levels. Only 26% expect an increase. Regarding demand for more retail space, more than twice as many experts, namely 77% of respondents, believe that this will continue to decline than did in 2015. In terms of store closures, too, almost 55% of all respondents fear further closures.

Refurbishment required

Overall, Swiss shopping centers had to endure a decline in sales of 3% in 2015. The 248 participants saw the greatest need for action in revitalizing and redeveloping centers. This is unsurprising: The average Swiss mall is almost 30 years old. They also sensed a need to optimize the tenant mix and service offerings. Free internet, event marketing and exhibitions, and optimizing mall architecture were seen as relevant, but considered less important.

Screenshot - 20_04

Follow ACROSS

Download

fb-art 150

Share this article
Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Studies & Reports MORE

Footfall-Anchors Post Corona – 5 Propositions for the New Future of Retail

“Covid-19 is the biggest challenge of our time and it affects the retail sector as well as the retail real estate market. With the study Footfall Anchors Post Corona–5 Propositions for the New Future of Retail, we discuss the current situation for retailers, investors, project developers, and municipalities on a broad scale. In collaboration with renowned experts we discuss the new future of retail, the real estate industry, and subsegments of the retail real estate sector. The result is a comprehensive documentation of the status quo regarding the situation of retail asset class.” - Angelus Bernreuther, Head of Investor Relationship Management at Kaufland Germany.

Yet another hurdle cleared

Modern retail stock in Romania will exceed the 4 million sq m threshold by the end of the year. Several openings were postponed due to Covid-19.

Poland: A review of historic months

Almost 90,000 sq m of new retail space was delivered to Polish market in the second quarter of 2020. Footfall amounted to approximately 80% of last year’s due to the pandemic.

Drastic sales losses in Swiss malls

Malls in Switzerland are currently losing 39 million Swiss francs in revenue per day.

Impact of COVID-19 on the Czech Republic’s retail sector

The corona virus pandemic and the related measures represent an entirely new and unexpected situation for the entire real estate market, with a global scope and a major local impact on everyone. According to Cushman & Wakefield Czech Republic, retail is one of the most affected sectors, yet it should also play a pivotal role in re-starting the economy.

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.