Amid all the gloomy scenarios for Europe's retail property sector as ecommerce continues to bite, there are some bright spots, writes editor-in-chief Judi Seebus in the latest edition of RetailWatch.
It is little wonder that investors are shunning retail assets. The headwinds that have been sweeping through the retail sector have been gathering force and the recent bankruptcy of the Maidenhead mall in the UK is an unequivocal sign that the culling of the shopping centre sector that started in the US is now also under way on this side of the Atlantic.
But while many point to ecommerce as the scapegoat of store closures and retailer failures, savvy investors also see opportunities in its repercussions. Retail specialist Meyer Bergman is a case in point with its new focus on the last-mile delivery solution.
There are other bright spots like the thriving designer outlet centre sector. After achieving record deal volumes in 2017, outlet malls should continue to grow in popularity with investors, according to a research report by TH Real Estate. Indeed, the report shows it has been the strongest performing sector in the region over the past decade and is likely to remain one of the best value property sectors in years to come.
Existing retail landlords clearly have their work cut out for them in making their properties relevant in a landscape where online penetration continues to grow. In an interview in this edition of RetailWatch, Multi Corporation’s outspoken CEO Josip Kardun puts up a convincing argument why shopping centres that provide a good mix of leisure, gastronomy and affordable fashion stores for blue-collar workers and their families will survive in an increasingly torrid retail climate.
Meanwhile the demise of department store chains is spawning new opportunities for retailers that are prepared to reinvent themselves. Consumer engagement and product story telling is a crucial aspect of modern retail which explains the growing number of online-born retailers like Amazon opening physical stores in prominent retail destinations.
Indeed the US ecommerce giant is reportedly opening up to 3,000 new Amazon Go stores in the next three years. Convenience is also a driver for existing brick-and-mortar stores like Ikea. The Swedish retailer recently trialled temporary pop-up city centre stores in Barcelona and Madrid and now plans to roll out the concept in Paris.
A good piece of news on the Food & Beverage front is that a rising number of consumers in Europe are adopting healthy eating habits and buying products that are cruelty-free.
Veganism may have been little more than a fringe movement in most parts of the western world just 30 years ago, but fast forward to 2018 and it has become one of the top consumer trends in Europe. Our special report reveals that as a growing number of people become more aware of healthy and ethical lifestyle choices, the number of independent stores selling vegan produce continues to grow. Moreover, mainstream retailers are also getting on board. It is a trend this fussy meat eater heartily welcomes.
I hope you enjoy the ranking of Europe’s top vegan-friendly cities and vegan-friendly retailers that is included in this edition of RetailWatch as much as I did!
Judi Seebus, Editor in Chief
