THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
Retail Solutions
Food & Drink
Discount retailers remain the focus as Euro market sales decline

Discount and value retailers are expected to remain the focus for 2009 throughout the Eurozone as consumer and business sentiment indicators remain low.


Discount retailers remain the focus as Euro market sales decline

With a 1.4% drop in retail trade over the past 12 months this decline is starting to be reflected in marginal rental falls, according to international property advisor Savills.

The annual retail report shows both shopping centre and retail w

arehousing rents have started falling since the end of 2008, mainly in markets that have experienced strong growth in recent years such as London, Istanbul, Barcelona and Madrid. Prime rents are on average approximately 6% lower compared to 12 months ago. Paris, Brussels, Amsterdam, Milan, Lisbon and Oslo are all showing relative stability however secondary markets are anticipated to be under pressure.

Eri Mitsostergiou, associate director of Savills European research, says: “The market is adapting to changing consumer behaviour, with retailers reviewing their business strategies, developers delaying new construction and investors attaching higher risk premium to retail investments. We believe that negative rental and capital value growth will ease in most markets until the end of the year for the prime segment of the market.”

In terms of the investment markets, the report indicates a 55% decline in investment turnover since April 2008. This is due to limited liquidity and the mismatch between buyer and seller expectations on pricing. The highest outward yield shift was recorded in Dublin at 325 bps on shopping centre stock and 275 bps on retail parks, thereafter Madrid recorded 200 bps and 225 bps on shopping centre and retail parks respectively and London 175bps for both property types. On average there has been a 130 bps correction compared to the same time period last year standing at 6.5% yield on shopping centres and 7.1% on retail parks.

Savills anticipates new retail development scheme completions will drop by between 20-60% in 2009 as a result of the limited availability of finance as well as developer reluctance to complete schemes.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing