Deficit, deficit and once again deficit
27.10.2011 6216

Deficit, deficit and once again deficit

Vacancy rates and the number of new shopping centers will be the main factors affecting the retail real estate market in 2011, according to a new report "European Retail 2011: 10 Factors", published by the international consulting company Cushman & Wakefield. The report was presented at the MAPIC exhibition in Cannes.

Shopping centers will be under construction for at least another year or two. In 2011, about 5,2 million square meters will be commissioned. m of new retail space (this is the lowest figure for 30 years). For store owners, supply reduction will hit growth in rental rates in quality projects. That is why retailers will continue to carefully and selectively approach the search for new premises.

1. Proposal. Deficit, deficit and once again a deficit of quality retail space.

2. GDP. As long as trade and investment remain the main factors affecting economic recovery, the desire to avoid the second wave of the crisis will dominate the minds of retailers in 2011.

3. Costs. Due to falling rates in 2008 / 2009, rental costs remain acceptable, but rising costs, such as manufacturing and logistics, can make retail development more difficult.

4. Work force. The unemployment rate has stabilized in most European countries. However, next year it can grow if the cuts in the public sector are not offset by new jobs in the private sector.

5. Credit market. Interest rates in Europe are expected to remain low for a long time, and this should help businesses and consumers in the 2011 year, helping to “sweeten the pill” from cutting budget spending items in European countries. The main trend in 2011 is expected to increase bank lending.

6. Trade. An uneven recovery in sales is expected, which will keep pace with the recovery of GDP. But sales of expensive goods will not soon return to the pre-crisis level. The sellers of the economy segment will feel best of all.

7. Strict government action will delay growth and may delay recovery in some sectors. European countries where governments prefer to increase taxes without reducing costs can suffer greatly in the 2011 year.

8. Regulation. Looks like an elephant in a china shop. Changes in regulation will have a big impact on the market in 2011, especially while retailers are trying to adapt to changes in rental accounting that are planned for 2012 or 2013.

9. Demand. Retailers will remain cautious and selective, but with fewer new projects on the market, there will be strong competition for the best places.

10. Demographic situation. This is a critical factor affecting European retail. Experts expect the working population of Europe to peak in 2011. But this will affect business planning, and not short-term sales schemes.

The vacancy rate and the number of new shopping centers will be the main factors affecting the retail real estate market in 2011, according to a new report “European retail ...
5
1
Please rate the article

Materials on the topic

Modern customer: who is he?

A modern customer is, first of all, a person for whom there are more important things than shopping. One of these things is the family: this value is the most significant, and its importance grows every year. Also, such ...
02.11.2013 23502

Outlet Center: an unusual format with great benefits

The first outlet centers began to appear in Russia, and one of them - Vnukovo Outlet Village - will open for customers early next year. The benefits of this shopping format for visitors can be described in one sentence: in the outlet center, Muscovites and ...
27.11.2013 15077

Successful shopping center: concepts and accents

By renting an area in the next shopping center, the tenant wants to be sure that his hopes for profit will not be in vain. Of course, cross-country ability and a set of tenants play an important role, but the main condition for a successful shopping center is quality ...
27.11.2013 46031

Turnkey warehouse: myth or reality?

The tendency to build warehouses for the specific needs of the company in Russia has been developing for more than three years. However, so far even the very concept of build-to-suit has been questioned by experts, and the demand for warehouses of this type is doubtful. To be or not to be…
27.11.2013 9985

6 qualities of the Russian online buyer

Digital Research, Subscribe and Esper Group have joined forces to try to figure out how Russian shoppers relate to online shopping. From the results obtained, it is clearly seen who is buying clothes and shoes online, which ...
28.12.2013 7990
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning