The middle ground is no more, according to retail experts during a panel discussion of European retail trends and investment hosted by PropertyEU at this year's EXPO REAL. Retailers go luxury, go discount or go home, was their message.
This retail trend is not new, but remains current as mid-range brands continue to struggle against more defined and targeted retail offers.
The same goes for shopping centres, according to Bill O’Connor, president and CEO of Capital Partners. 'The better centres are getting stronger, the lesser centres are declining. Tenants are closing their shops in B and C centres and trying to get into the A [prime] centres,' he said. He cited Primark’s expansion, taking advantage of stores such as JC Penney and Sears, some of which are not trading as successfully as the discount store.
What can asset managers do to help? Henrike Waldburg, head of shopping centre investment management at Union Investment real estate said: 'Landlords need to take more responsibility in order to enhance retailers business. At Union Investment, as a landlord, we are trying to bring new retailers and retail formats into our centres, supporting new start ups, working with our partners Sonae Sierra.'
Marleen Bosma, head of research, Bouwinvest said: ‘There are other trends too, including organisational, technological as well as ecommerce.’
