Fashion retailers in the middle-of-the-road segment are most at risk in the current economic malaise, according to Mark Burlton, partner retail services at adviser Cushman & Wakefield. 'The mid-market is under greatest pressure and some chains will inevitable collapse. Without doubt, discounters are better placed to benefit from the downturn,' he added.
Fashion retailers in the middle-of-the-road segment are most at risk in the current economic malaise, according to Mark Burlton, partner retail services at adviser Cushman & Wakefield. 'The mid-market is under greatest pressure and some chains will inevitable collapse. Without doubt, discounters are better placed to benefit from the downturn,' he added.
Speaking at a rather subdued edition of the Mapic retail fair in Cannes after the recent boom years in the property sector, Burlton said that the international players would likely prove to most credit-crunch proof. Citing Irish clothing chain Primark as an example of one of the potential winners in the current economic climate, he pointed out that the store is cheaper than H&M and just as fashionable. 'The company has enormous wealth behind it and is steadily expanding into Europe. They have opened their first store in Rotterdam and have recently done a number of deals in Spain, Portugal and Germany.'
Hypermarkets are also well-placed to benefit from the crisis, he noted. 'There's always a need for food. Food retailers are more immune than most.'
Burlton said he expects to see developers shelving projects while investors flee to quality projects. 'Some projects won't happen or will be delayed. The secondary market will have to fight a lot more. But prime is prime is prime and it will be a long time before that is hit.'
CLICK ON THE LINK BELOW TO READ ' DISCOUNTERS DODGE THE DOWNTURN' IN THE NOVEMBER EDITION OF PROPERTYEU MAGAZINE. THE ARTICLE FEATURES RESEARCH ON THE TOP RETAILERS IN EUROPE.
