Retail market fundamentals have shown signs of contraction since the second half of 2007 with consumer confidence declining notably in Spain, Switzerland, Denmark, the UK and Sweden, according to ING's European Retail View research report released at the Mapic retail property fair in Cannes on Thursday. The Central and Eastern European (CEE) countries have been only somewhat affected by the economic slowdown.
Retail market fundamentals have shown signs of contraction since the second half of 2007 with consumer confidence declining notably in Spain, Switzerland, Denmark, the UK and Sweden, according to ING's European Retail View research report released at the Mapic retail property fair in Cannes on Thursday. The Central and Eastern European (CEE) countries have been only somewhat affected by the economic slowdown.
With the exception of CEE, retail sales are stabilising or even declining and will continue to do so through 2009, with recovery expected from 2010 onward, ING said. The decline is mostly being driven by the low availability and high cost of consumer debt, growing household uncertainty on income and the onset of declining house prices in several European countries.
Nevertheless, demand for prime high-street retail and prime shopping centres is expected to remain relatively unaffected, as retailers aim for units in the best locations. Retail warehouses are also proving quite popular in some markets due to their defensive nature. However, declining retail sales growth tends to weaken demand for most other retail types, ING added.
