ICSC executive opinion survey hits all time high

Business conditions for the European shopping centre industry are at a record high, according to the latest Pan-European Shopping Centre Executive Opinion Survey.

Released by the International Council of Shopping Centers (ICSC), the survey results were compiled from responses by European shopping-centre executives collected between 16-30 June 2014.

Expectations for the next six months show a substantial improvement on a year ago when the industry was still steeped in negativity. Although re-leasing rental levels continue to be a struggle for landlords, market sentiment suggests that sales are showing strong growth.

The ICSC Shopping Centre Executive Opinion Survey is made up of three indices:Current Conditions Index; Expectations Index, and Euro-Shop Index.

The Current Conditions Index measures the performance of sales, footfall, occupancy and re-leasing rent. In June, sales, occupancy and re-leasing rent rose, though footfall dropped on the previous month, a likely consequence of the distraction of the World Cup.

The Expectations Index, which measures market sentiment for the coming six months, leaped impressively in June, showing a huge improvement in industry confidence over the last 12 months.

The Euro-Shop Index, the survey’s summary index of current and future business conditions, rose to a record high since the index began in March 2011.

Sarah Banfield, manager of international research at ICSC, said: 'We are delighted to note that confidence among shopping centre executives grows stronger. There is never room for complacency but this optimism bodes well for the retail industry which is now heading towards another crucial period with the August back-to-school sales.'

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