Sharp fall in consumer confidence affects the sector
Consumers remain sceptical. Seldom has confidence among consumers been as low as it was at the end of last year. Unlike the credit crisis of three years ago, consumers are this time experiencing the consequences of the economic situation in their wallets. Furthermore, they have seen that a soft and rapid solution to the economic problems is not apparent. The result is less spending, and retailers are noticing this in their turnover.
More retail real estate empty, rents diverging
Retail real estate take up rose strikingly in 2011. More footage for rent became available, but this does not affect the well-known shopping streets in the larger cities. There is a persistently high demand for stability in the rents. Outside the larger cities there are, however, a growing number of problem areas. Retailers who close their doors are producing gaps in the streetscapes in the better locations within the smaller and medium-sized towns.
Retail spending temporarily at a low level
A rapid improvement is not on the cards. Retail spending is under pressure as a result of the poor economic situation. Furthermore, some of this spending no longer takes place in physical shops, but via the Internet. The situation requires entrepreneurship from retailers and flexibility from owners of retail real estate. The changed economic circumstances mean that some rents are no longer in proportion to the turnover. People are increasingly opting for part turnover-based leases.
Advent of the Internet unstoppable
Despite the reticence of consumers in general, retail spending turnover via the Internet grew again in 2011. Last year, around € 9 billion in total was spent via the Internet or other forms of home shopping.
New building and reorientation
Reorientation within the physical retail market is needed to prevent large gaps from arising in the streetscape. Inactivity is not an option. More new building in the form of transformation and rezoning, for example, is certainly necessary. Municipalities, investors and retailers will have to develop a clearer vision on the question of how the attractiveness of shopping areas can be assured. Striving for more compact, combined shopping areas is a likely option.