Money Buzz! Europa

Category: Retail

  • The number of visitors in malls could return to normal in December

    The number of visitors in malls could return to normal in December

    Shopping centers are currently finalizing preparations for reopening, starting on June 15, to ensure compliance with the safety and social distancing measures.

    In total, investments in all equipment, supplies and staff needed to implement these measures exceed half a million euros for large shopping centers, according to Colliers International consultants.

    Shoppers will gradually resume their pre-pandemic habits, and traffic in the malls could return to normal during the Christmas season.

    Non-food retailers were among those most affected by the pandemic

    Non-food retailers were among those most affected by measures taken during the state of emergency to prevent the spread of coronavirus.

    The closure of shopping centers has determined retail tenants to revise their revenue expectations for this year, with 45% expecting a drop of more than 30% and 39% expecting a drop of up to 30%, as showed in a study conducted in March by the retail division of Colliers International among 84 tenants and 21 owners in the retail sector in Romania.

    However, the tenants rely on the summer months to start recovering losses accumulated during the period when the stores were closed, even in the context of an estimated number of visitors at half the level from usual periods.

    Traffic is expected to increase in the next period and could return to normal in December.

    Google data suggest a gradual recovery of the traffic in commercial and leisure areas

    Mobility statistics published by Google, based on data collected from users’ smartphones, suggest a gradual, but consistent recovery of the traffic in commercial and leisure areas.

    In Bucharest, Cluj-Napoca and Timis, pedestrian traffic in these areas was 30-40% below a regular average at the beginning of June, compared to 80% below normal levels a few months back.

    In countries where restrictions were lifted earlier, figures look somewhat better and offer hope that the gradual improvement will continue in the next period.

    Anti Covid-19 measures taken by large shopping centers

    Thus, among measures taken by large shopping centers are gates or special rooms through which the body temperature of visitors can be measured or systems for monitoring the total number of visitors at any time within the center, so as to limit access to others visitors when the maximum limit set according to the authorities is reached.

    At the same time, shopping centers are ready to constantly disinfect common areas and escalators with specialized substances or UV lamps and will provide visitors dispensers with disinfectants, and as an additional measure will opt for the introduction of fresh air from outside instead of previous procedures for recirculating air inside the center.

  • Retail trade index sharply declined by 10.5% in Italy

    Retail trade index sharply declined by 10.5% in Italy

    Istat shows that in April 2020 estimates for retail trade index sharply declined by 10.5% in value terms in the month on month series, after decreasing by 21.3% in March 2020, as numerous stores stayed shut due to lockdown measures contrasting the Covid-19 outbreak.

    Likewise volume of sales decreased by 11.4% when compared to the previous month.

    In the three months to April 2020, both value and volume of sales dropped by 15.8% and 16.6%, respectively.

    Year-on-year value of sales was down 26.3%, while volume reached -28.1% when compared with April 2019. Food sales increased by 6.1% in value terms, while non-food sales plunged by 52.2%.

    In April 2020, non-store sales suffered a drop of 45.2% compared with April 2019.

    Online sales increased by 27.1%

    Despite other channels of distribution experienced a significant decline, online sales increased by 27.1% when compared with the same month a year earlier.

    Looking at the value of sales for non-food products, all categories fell dramatically in the year-on-year series.

    This drop resulted in extremely low levels for shoes, leather goods and travel items (-90.6%), furniture and textile items and household furnishings (-83.6%), clothing (-83.4%) and sporting equipment, games and toys (-82.5%), while pharmaceutical products was the category suffering the least with a negative 3.5%.

  • Carrefour will acquire 199 Wellcome Taiwan stores

    Carrefour will acquire 199 Wellcome Taiwan stores

    The transaction between Carrefour hand Dairy Farm involves 224 proximity stores in quality locations (199 Wellcome – average sales area of 420 sq.m – and 25 Jasons – average sales area of 820 sq. m) as well as a warehouse (including ownership of the real estate and land).

    The transaction’s enterprise value is 97 million euros. Wellcome Taiwan posted net sales of around 390 million euros in 2019.

    This acquisition allows Carrefour to accelerate its development in Taiwan in the fast-growing proximity format. Carrefour will thus become the local number 2 in this format. 

    Carrefour currently operates 137 stores in Taiwan, including 69 proximity stores under the Market banner. The Group posted net sales in the country of 1,968 million euros, EBITDA of 209 million euros and recurring operating income of 83 million euros in 2019.

    Wellcome will become Carrefour Market

    Carrefour plans to convert the Wellcome stores to the Market banner within 12 months after the closing of the transaction, and then convert Jasons stores to a Carrefour premium banner.

    The converted stores will benefit from Carrefour’s commercial policy and purchasing conditions. The Group plans to improve commercial density and optimize the cost structure.

  • Sales of retail shops decreased by 10.2% in Hungary

    Sales of retail shops decreased by 10.2% in Hungary

    In April 2020, the volume of sales in retail shops, according to both raw and calendar-adjusted data, decreased by 10.2% compared to the same period last year, KSH data shows.

    The volume of sales decreased by 0.4% in specialized and non-specialized food shops, by 14.8% in non-food retail shops and by 26.3% in automotive fuel retailing.

    In January–April 2020, the volume of sales – also according to calendar adjusted data – was 2.5% higher than in the corresponding period of the previous year.

    Declining retail sales in April 2020 were entirely driven by the impact of the coronavirus epidemic, with epidemic emergency explaining 17 percentage points from the calendar adjusted, year-on-year volume change.

    The volume index for non-food retail shops was 26% lower, while automotive fuel retailing was 30 percentage points lower than previously estimated. Food store sales were only slightly affected by the impact of coronavirus.

  • Carrefour stores to cut greenhouse gas emissions by 30% till 2030

    Carrefour stores to cut greenhouse gas emissions by 30% till 2030

    In 2015, Carrefour made a commitment to reduce its store-related carbon footprint by 40% by 2025 (vs. 2010). Since 2019, this reduction is already of 39%.

    Carrefour is committed to going further by working together with its customers and suppliers to improve the way we produce and consume: more local, eco-designed, reducing packaging, more vegetable proteins.

    For its stores, Carrefour has set the target of cutting its greenhouse gas emissions by 30% between now and 2030 and by 55% between now and 2040 (compared with 2019 levels).

    Gas, electricity and refrigerants used in store are the retailer’s main sources of direct emissions of greenhouse gas.

    As for production of goods by suppliers Carrefour wants to reduce emissions linked to the purchase of goods and services by 30% by 2030, compared to 2019.

    This corresponds to a reduction of 20 megatons of CO2 in collaboration with its suppliers, by offering more plant-based alternatives, local products or by reducing the use of packaging and plastic;

    As for product use by customers, the retailer will reduce product-related emissions – fuels and electronics – by 27.5% by 2030, compared to 2019, by offering decarbonated alternatives and eco-designed products.

    Downstream freight transport of goods: Reduce CO2 emissions related to downstream transport by 20% by 2030, compared to 2019, by optimizing logistics models and developing alternatives to the use of diesel

    Carrefour plans to triple the fleet of biomethane trucks in France by 2022 (332 trucks by the end of 2019).

  • Retail trade in Slovakia decreased by 14,3% in April

    Retail trade in Slovakia decreased by 14,3% in April

    A decrease in retail trade at the level of 14,3 % was influenced by lower turnover in all activities with the exception of retail sale in non-specialized stores, which increased by 2,5 % year-on-year (hypermarkets and supermarkets) in April 2020, latest Slovak Statistical Office shows.

    The most significant decrease was recorded by retailers of other goods in specialized stores by 30,7 %.

    The overall result of retail trade was also affected by a decrease in turnover in retail sale of automotive fuels in specialized stores by 25,9 %, which, however, is attributed to significantly lower unit prices of fuels compared to April 2019.

    A significant decrease was also reflected in retail sale of other household equipment in specialized stores by 25,5 %.

    The largest decrease in turnover by 51,2 % was in retail sale of cultural an recreation goods, which, however, does not represent a significant share of the total turnover in retail trade.

    Turnover in retail trade in the first four months of 2020 compared with the corresponding period of 2019

    Turnover in retail trade decreased by 4 %, a fall was almost in all activities, most significantly in retail sale of other goods in specialized stores by 11 %, in retail sale of automotive fuel in specialized stores by 10,4 % and in retail sale of other household goods in specialized stores by 11,7 %.

    Turnover increased only in retail sale in non-specialized stores by 6 %.

  • 63% of NEPI Rockcastle shopping centers GLA is currently open

    63% of NEPI Rockcastle shopping centers GLA is currently open

    Over the last few weeks, in the context of easing of restrictions imposed by the coronavirus pandemic, a large proportion of retailers have resumed their operations and 63% of NEPI Rockcastle shopping centers Gross Leasable Area (‘GLA’) is currently open, shows a company report.

    ”As we begin to collect post-reopening operational data, we are confident that our high-quality portfolio, robust balance sheet and strong liquidity together with our unparalleled know-how of the CEE region remain key strengths for weathering this storm well”, said Alex Morar, CEO NEPI Rockcastle.

    Lithuania (reopening of shops: 25 April 2020)

    Restrictions substantially ended, with most shops, including those in malls, opened since 25 April. 83% of the GLA currently trading, with normalised occupancy expected in June 2020, when entertainment and indoor restaurants open.

    The Lithuanian government partially covers tenant payments from the commencement of trading restrictions until end of July 2020, the landlord is expected to provide a discount of 30% to the rental and other obligations for this period, while 20% is covered by the tenant and 50% by the government.

    Footfall in May has already recovered to 50% compared to the same period of previous year and is increasing.

    Poland (reopening of shops: 4 May 2020)

    Restrictions on non-essential stores ended on 4 May. Certain services, including restaurants, cinemas, gym and entertainment facilities, are still restricted, but expected to start trading in June.

    72% GLA is trading and normalised occupancy is expected by 30 June.

    Government announced relief for rent and service charges, subject to a mandatory six-month lease extension plus the period when units were closed.

    Footfall has already recovered to 50% compared to the same period of the previous year and is increasing.

    Serbia (reopening of shops: 8 May 2020)

    Restrictions for smaller shops, including those located in retail parks, ended on 27 April, while other non-essential stores reopened on 8 May.

    Restaurants and entertainment facilities will open later, as government monitors situation.

    35% of GLA open, normalised occupancy estimated by 30 June. There is no specific legislation regulating lease agreements.

    Croatia (reopening of shops: 11 May 2020)

    Restrictions for smaller shops, including those located in retail parks, ended on 27 April, while other non-essential stores reopened on 11 May.

    Restaurants, coffee shops and food courts are open, with social distancing measures which limit their capacity.

    90% of GLA open; entertainment facilities, currently closed, are expected to open by 30 June.

    No specific legislation regulating lease agreements.

    Czech Republic (reopening of shops: 11 May 2020)

    Restrictions on non-essential stores ended on 11 May.

    76% of GLA open; restaurants and entertainment facilities will open by end of May.

    No specific legislation regulating lease agreements adopted, other than forbidding their unilateral termination by the landlord before the end of 2020.

    Romania (reopening of part of the shops: 15 May 2020)

    The Romanian government has announced gradual easing of lockdown measures, with shops having street access and those located in retail parks up to 15,000 sqm of total built area allowed to trade from 15 May.

    Reopening of non-essential shops and entertainment facilities located in larger malls will be implemented at a later stage, not yet communicated (expected reopening by mid June).

    Offices remained fully functional, with work-from-home measures adopted by many companies.

    Legislation proposing deferral of rental obligations to year-end under certain conditions is being considered.

    Bulgaria (reopening of shops: 18 May 2020)

    Restrictions on trading of non-essential shops ended on 18 May.

    72% of GLA open; cinemas and foodcourts are not open, although restaurants can sell take-away food. It is expected that cinemas will open by end of May.

    Offices remained fully functional, with work-from-home measures adopted by many companies.

    No specific legislation regulating lease agreements adopted.

    Hungary (reopening of shops: 18 May 2020)

    Non-essential shops opened on 18 May, with restaurants expected to open by end of June, while entertainment facilities are estimated to open in July.

    72% of GLA currently open. No specific legislation regulating lease agreements adopted.

    Slovakia (reopening of shops: 20 May 2020)

    The Slovakian government ended the trading restrictions for all non-essential shops on 20 May.

    Restaurants and entertainment areas expected to open by end of June. 91% of GLA open.

    Offices remained fully functional, with work-from-home measures adopted by many companies.

    No specific legislation regulating lease agreements adopted, other than forbidding their unilateral termination by the landlord before the end of 2020 if the tenant is in delay with its payment obligations for the period April – June 2020.

  • Ikea to open a new-concept smaller urban store in Piraeus

    Ikea to open a new-concept smaller urban store in Piraeus

    Fourlis Group announced that it will open an Ikea small shop, based on a new urban store concept, in the centre of Piraeus.

    Investment comes two years after the extremely successful operation of the IKEA Pop-up Store in the area, which received a warm response from the city of Piraeus.

    The new Ikea Gounari Street is expected to open in October 2020 to welcome its customers in an area of 2,000 sq.m. spread over three floors.

    Visitors will discover more than 1,000 unique products.

    In addition, the store will have a restaurant that will offer daily selected dishes, as well as some choices of salads, desserts and products from the IKEA Swedish food store.

    On the ground floor there will also be a take-away café.

    The commercial activity of Fourlis Group is expanding in Greece, Cyprus, Bulgaria, Romania and Turkey, where they operate Ikea, Intersport and The Athlete’s Foot stores.

  • Thomas Goode & Co’s flagship Mayfair store set for refurbishment

    Thomas Goode & Co’s flagship Mayfair store set for refurbishment

    Thomas Goode & Co’s flagship Mayfair store is set to be part of a multi-million pound refurbishment by the building’s owner, Cain International.

    The business which is approaching its 200th anniversary has been based in South Audley Street for over 150 years.

    Cain International secured planning consent last month for the important Heritage building. It is set to undergo a major refurbishment which will include the creation of 23 luxury serviced apartments operated by the Oberoi Group.

    The Oberoi Group headquartered in New Delhi operates 32 hotels across the world and already has an association with Thomas Goode through the opening of a boutique and a museum within the Oberoi in Mumbai in February 2019.

    Thomas Goode & Co chairman Johnny Sandelson said: “For almost 200 years, Thomas Goode & Co has been synonymous with the finest quality china, glass and tableware. We are now taking the brand into the 21st century. After refurbishment we will return to a smaller retail space, but it will retain much of its glorious past in a more contemporary setting.”

  • Profi, two new logistic projects in Timisoara and Craiova

    Profi, two new logistic projects in Timisoara and Craiova

    Profi expands its logistic activities by contracting two new projects in Timisoara (58,000 sqm) and Craiova (57,000 sqm), which will be developed and rented out by the Belgian logistics real estate expert WDP.

    JLL has advised PROFI in both transactions, thus continuing the partnership started few years ago, which resulted in 250,000 sqm of logistics spaces contracted in Bucharest, Roman, Cluj, Craiova and Timisoara.

    These transactions are the two largest witnessed by the industrial market this year.

    With over 1,250 stores in 571 locations and a team of over 20,000 employees, Profi is the retail chain with the largest geographical presence in Romania. 

  • Fast food in Austria 2020: loss of 200 million euros

    Fast food in Austria 2020: loss of 200 million euros

    According to a market analysis cited by Heute, fast food in Austria is expected to drop sales by around 14% this year, to around 1.1 billion euros.

    This means that the industry is losing revenues of almost EUR 200 million. 

    In 2019, 1.3 billion euros were generated by Austrian fast food industry. This shows an increase of four percent compared to the previous year. Big players such as McDonald’s, Burger King, Subway, sales increased by 4.8 percent compared to the previous year.

    However, the number of unorganized business premises shrank again by five percent to around 1.400 locations.

    As a result, their average operating turnover increased by seven percent compared to the previous year. With an average of 300.000 euros, a snack stand still trades less than a tenth of a typical McDonald’s branch.

  • Planeo Elektro stores will be open on Liberation Day

    Planeo Elektro stores will be open on Liberation Day

    • Ninety Planeo Elektro consumer electronics stores in Czech Republic will be open on public holidays, May 8, 2020.
    • A special Black Friday discount will last until the end of the holiday weekend.

    Each of the stores is equipped with disinfectants and disposable protective equipment. Information about recommended behavior in the store will be communicated to customers at regular intervals through an audio spot, banners on TV screens and through information posters. 

    They will remind the principles of safe shopping – the use of drapes, disposable gloves, disinfection, compliance with the minimum recommended distance from other persons at a distance of 2 m and the use of contactless payments. 

    An exception is the five stores of the Planeo Elektro network, which – due to their location in shopping centers – remain closed until May 11, when the shopping centers will be reopened as part of the release of coronavirus measures. These are the following stores:

    • Brno – Kaufland, Kamenice 745;
    • Kladno – Kaufland, Italská 50;
    • Litoměřice – OC Na Soutoku, Želetická 2277;
    • Ostrava – Avion Shopping Park, Rudná 3119/124;
    • Teplice – OC Fontana, Namesti Svobody 3312.