Credit: ACROSS Magazine
Opinion

Shopping Center Performance Report by ecostra triggered resentment

“Critics doubt that it really reflects the performance of shopping centers.”

By Reinhard Winiwarter, Publisher ACROSS Magazine

A certain report causes quite the stir in the German shopping center industry. To be more specific, we are talking about the Shopping Center Performance Report by the consulting company ecostra from Wiesbaden, Germany, that triggered great resentment among industry colleagues.

As its title implies, the report was supposed to reflect one thing in particular: the performance of shopping centers. Its critics doubt that it does. The data pool used for the report’s preparation is founded exclusively on a survey of tenants and retailers regarding their relative turnover. Is that enough, however, to unerringly create a ranking of the best or worst performing centers in Germany? Many experts say that it is not and I understand them all too well. First of all, these tenant surveys are voluntary. This means that not all tenants had to feel like sharing their turnover and performance data with ecostra. Secondly, lumping them all together for this survey makes it near impossible to assess or grade the quality of the surveyed retailers. And we all know that evaluating shopping centers with one-dimensional valuation methods is diametrically opposed to today’s diversity as well as the current requirements of retail locations. Certainly, an annually prepared performance report for shopping centers may get picked up by the daily press as an entertaining filler–but that does not make the report any more consistent or informative.

Maybe ecostra’s experts will revise their valuation methods or rename it to what it might actually be: a tenant survey. After all, well-founded and fact-based reports are definitely in demand in an increasingly professionalizing industry.

Reinhard Winiwarter

Publisher of ACROSS Magazine

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

Opinion MORE

2020 in Cinema: Movies at Their Best

“Digital signage should not begin in cinema foyers. It must be an integral part of the entire information and marketing presence of all malls.”

20 + 20 = 40 – Millennials Dominate

“Retail schemes must offer all alternatives, pedestrian paths, bicycle lanes and shelters, bus stops, metro stations, if applicable, and taxis (booths). Barriers and fences should be removed.”

Key trends for the retail real estate industry in 2020

“Co-working spaces, medical centers and kindergartens will also increasingly find their ways into malls, thereby shaking up tenant mixes.”

An Initial Review of the Retuna Shopping and Upcycling Park

“In July 2019, Retuna recorded its highest turnover. That proves that our concept works and that we can be role models for future retail.”

How Active Asset Management Boosts Footfall and Spending

“Another factor not to be underestimated in terms of quality of stay are the restrooms, whose cleanliness many visitors regard as a litmus test for the general condition of a shopping center – just like they would in a hotel room.”

Outlet Centers Weather the Storm

“Outlet strategies that blend a hybrid occupier mix with a focus on leisure boost dwell time and engage local communities.”