THE WOLF OF MALL STREET
In the latest edition of the Newsec Property Outlook, Newsec has analysed trends on the physical retail market in the Nordics and Baltics. In the report, Newsec has identified a number of trends on the retail market that have not been highlighted earlier.
Newsec find that the physical retail market in the Nordics and Baltics is thriving. A sizeable amount of retail is doing better than ever – including not just external retail areas and grocery stores, but also shopping centres.
- Retail is doing very well. All forms of shopping centres – regional, district and neighbourhood – are performing well, and in many cases better than ever. In 2021, turnover increased compared to 2019 for both “experience-based” and “local” shopping centres. It is essentially only city malls which continue to post turnover figures substantially below those seen 2019.
- Footfall on the high street in the Nordics in 2021 is down an average of 29% – with the European average being closer to down 40%, and individual countries such as the Netherlands being down as much as 55%.
- Remarkably, almost all forms of retail tenants in shopping centres have seen turnover increase compared to 2019 in 2021, with only books and other retail continuing to decline. Even clothes & shoes have seen turnover in stores increase in 2021.
- Retailers are starting to think more about what experiences and community service they can provide to enhance the retail experience, but more can still be done.
- The intersection between ESG and retail space is becoming more important – and physical retailers can capitalize on this in many ways.