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Retail

In recent years, the intertwining of retail and hospitality has emerged as a crucial factor in the attractiveness of destinations. By integrating shopping opportunities with accommodation options, innovative concepts are created that offer unique experiences for tourists and locals. Thomas Mark, President of MK Illumination, explains how recent developments have set new standards for retailtainment.

The commercial benefits of accommodating multiple uses in one development are clear: If the offer and environment are tailored correctly, footfall – and therefore turnover and rents – can be increased. Nevertheless, there is a great reluctance to create true mixed-use developments due to the inability to truly understand the different requirements of different user groups, according to a joint report by Pragma and Benoy.

In the ever-evolving hotel industry, there is one category that really stands out – hotels, explains Will Odwarka, Founder and CEO of Dubai-based Heartatwork Hospitality Consulting. The hotel landscape is changing on a global scale as hotels seek to attract and cater to a more diverse and international clientele with their F&B and retail offerings. It is a fact: Hotels, gastronomy, and retail go together.

While the retail space of shopping centers* in Western Europe gradually expanded over many decades, it experienced a real boom in Eastern Europe in the 2000s. RegioData Research has compared the development of shopping center space in both European regions over the last 30 years in detail.

Shopping tourism is on the rise again. International cases have proven that shopping and overnight stays can constitute a profitable symbiosis. Nevertheless, this profitable combination of hotel and retail is still in its infancy in Europe. Christian Buer, Professor of Business Administration and Hotel Real Estate & Financing at Heilbronn University and Founder of the consulting firm Nemis, explains where and how the combination of hotel and retail has the potential for success and why we should focus on the outlet and luxury sectors in particular.

The retail and hotel asset classes are both geared towards the consumer, clearly benefit from tourism and are impacted by the “luxury vs. budget” polarization trend. Six months ago, Union Investment therefore decided to bring together its retail and hotel investment teams by establishing an Investment Management Operational department. The Hamburg-based investment and asset management company is targeting synergies and opportunities for its portfolio in the two property categories and considering acquisitions. Andreas Löcher, Head of Investment Management Operational, and Roman Müller, Head of Investment Management Retail, discuss the megatrends affecting both asset classes, highlight other similarities and identify locations of particular interest.

Retail tourism is here to stay. Travelers collectively spend billions of euros every year when they shop. They create jobs, providing income for retailers, craftsmen, and designers. Retail is one of the world’s most diverse industries, shaping every part of the travel experience, and retail tourism is playing a pivotal role in the recovery of the travel and tourism sector, which saw inbound tourism revenues surge by 82 percent in 2022, according to the World Travel & Tourism Council (WTTC). Despite all the challenges brought on by the pandemic, retail tourism remains strong. Furthermore, if tourism and hospitality are to play an important role in the future of retail, then the presence and location of hotels is crucial, experts say. What, however, does the joint potential of the retail and hotel industry look like? This ACROSS cover story analyzes the synergies between the retail and hotel industries.

The Californian athleisure brand Alo Yoga is continuing its UK expansion with two new stores set to open later this year, one each at Seven Dials in London, and 75 Brompton Road.

In its Q1 period, Inditex´s net profit rose 11% to 1.3 billion euros, in line with analysts’ average forecast, and despite a slight slowdown in sales.

Kintyre has acquired the Kant Center in Berlin Charlottenburg together with its long-standing partner TPG Angelo Gordon. The property was acquired by Credit Suisse Real Estate Fund International as part of an asset deal initiated by CBRE.