Money Buzz! Europa

Category: Retail

  • PENNY donates 2.500.000 Kč worth of food

    PENNY donates 2.500.000 Kč worth of food

    The retail chain with the highest number of stores in Czechia has prepared a project that will help improve the situation of food banks in the next five months.

    PENNY will help the Czech Federation of Food Banks with a central warehouse in Modletice, near Prague. This means an aid worth almost 11 million Kč over five years.

    Through PENNY, 200 tons of aid has reached the central warehouse of the Czech Federation of Food Banks in the last two years. 

    From the beginning of 2018 until the end of April this year, PENNY alone delivered approximately 120 tonnes of aid to food banks. 

    Customers donated an additional 83 tonnes of aid to the collections through one of the 60 participating stores. 

    Donated products that help the most include soups, rice and legumes, pasta, baby food, canned food, long-life milk, oil and basic and children’s drugstores.

  • EU’s volume of retail trade fell by 10% in March 2020

    EU’s volume of retail trade fell by 10% in March 2020

    To prevent the spread of the COVID-19 pandemic, EU Member States have taken a wide variety of restrictive measures. Among other limitations, non-essential retail shops have closed, affecting the retail trade volumes.

    In March 2020, EU’s volume of retail trade fell by 10% compared with February 2020. For a comparison, the retail volume increased on average by 0.3% in March 2010 to 2019, show Eurostat latest data.   

    Spotlight on the effects across the EU

    Since the COVID-19 containment measures differed between the EU Member States as to their timing and strictness, the effects on retail trade also vary.

    In March 2020, retail trade of food products (incl. beverages and tobacco) increased substantially compared with the average March growth rates of the last decade. Among EU Member States, highest increases were observed in Luxembourg (+20%), Ireland (+14%) and Belgium (+13%).

    In contrast, purchases of non-food products (excl. automotive fuel) dropped in all EU Member States, with highest decreases observed in Luxembourg (-35%), France and Spain (both -33.0%). The reduction in retail volume was particularly strong for textiles, with the sales reduced by half or more in a vast majority of EU Member States.

    Supermarket recorded increases in sales, department store decreases

    Around mid-March 2020, many countries closed non-essential stores, whilst groceries, supermarkets and pharmacies could remain open. This had a clear effect on the retail trade volumes of various distribution channels.

    Sales in supermarkets generally increased, even in countries that experienced the strongest declines in sales activities such as Bulgaria (-18% in total and 2% in supermarkets), Spain (-14% in total and 11% in supermarkets) and Portugal (-12% in total and 3% in supermarkets).

    In contrast, sales in department stores, which were mostly closed after mid-March, significantly dropped across the EU. The largest drops were registered in Belgium (-60%), Spain (-39%), Lithuania (-36%) and Germany (-30%).

  • NEPI Rockcastle collected over 90% of the rent for Q1 2020

    NEPI Rockcastle collected over 90% of the rent for Q1 2020

    Gradual easing of restrictions imposed for coronavirus pandemic has commenced in the second half of April 2020 and is expected to continue throughout May – June.

    NEPI Rockcastle released a statement on how the pandemic affected its business in nine European countries.

    Lithuania retail shops are open

    Trading restrictions have been substantially lifted in Lithuania, with most retail shops, including those in shopping centres, being now open. Indoor restaurants and entertainment facilities are expected to open at the end of May or beginning of June. The government safety guidelines require shopping centres, among others, to ensure a maximum density of one person per 10 square metres.

    NEPI Rockcastle resumed its operations at Ozas Shopping Centre and Entertainment in Vilnius on 25 April 2020.

    NEPI Rockcastle malls in Poland resumed normal trading

    On 4 May 2020, Poland ended the temporary trading restrictions on the stores located in shopping centres larger than 2,000 square metres, and all the group’s malls in Poland have resumed normal trading.

    Some safety guidelines imposed by the government remain in place, including wearing face masks and maintaining social distancing when in public spaces. Restaurants currently provide only take-away food. Entertainment facilities remain closed as the government continues to monitor the situation.

    Retail parks in Croatia have been open since 27 April

    Retail parks in Croatia have been open since 27 April, including the group’s Arena Retail Park (Zagreb, Croatia).

    Non-essential store openings are also being accelerated in Serbia, Czech Republic and Croatia, with trading restrictions expected to end by mid-May; and

    Shopping centers in Romania, Slovakia, Hungary and Bulgaria are still closed

    A gradual easing of the lockdown measures has been announced also by Romania, Slovakia, Hungary and Bulgaria, although specific dates for allowing trading of non-essential shops located in shopping malls have not been yet communicated.

    NEPI office portfolio continues to be functional.

    Only 43% of NEPI Rockcastle tenants are open

    As of today, tenants representing 43% of the Group’s GLA are open, and the number is expected to increase progressively over the next weeks.

    The first trading indications in Lithuania and Poland are positive: most of the tenants have already opened their stores, footfall is gradually increasing, and customers react positively to the new safety rules.

    Further increases in footfall and turnovers are expected when the restaurants and cinemas revert to operations, and also when the neighbouring offices have increased attendance.

    Targu Mures Shopping City, the Romanian mall which was initially planned for opening at the end of March, was completed. A new opening date will be decided together with the tenants, once the Romanian government provides more information on the phased easing of restrictions.

    Over 90% of the rent and other charges invoiced for Q1 2020 have been collected

    Over 90% of the rent and other charges invoiced for Q1 2020 have been collected. Although rent payment obligations regarding closed units for April and May (where already invoiced) have been deferred for 60 days without penalties, as a mean to supporting tenants.

    The asset management team is committed to working together with tenants to maintain sustainable, long-term relationships. Any discounts will be agreed on case-by-case basis, based on a thorough analysis of the tenants’ financial situation, occupancy cost ratio and other factors, and will be focused on maintaining a functioning retail environment for the long term.

  • MSGM opens a flagship store in Zhengzhou, China

    MSGM opens a flagship store in Zhengzhou, China

    MSGM opened a new flagship store inside the mall of Zhengzhou, a city located almost 700 km south to Beijing, according with milanofinanza.it

    The new boutique, based at the second floor of the department store, where other Italian brands are already present, covers a surface of about 75 square meters addressed to menswear, womenswear and accessories.

    Despite the coronavirus pandemic, MSGM is going on with its worldwide expansion strategy. The brand has 42 stores distributed in Italy, UK, France, Korea, China, Hong Kong, Japan, Taiwan, Singapore, Malesia and Macao.

  • Sales of retail shops grew by 3.5% in Hungary

    Sales of retail shops grew by 3.5% in Hungary

    In March 2020, the volume of sales in retail shops increased by 4.4% according to raw data and by 3.5% when adjusted for calendar effects compared to the same period of the previous year, show Hungarian Central Statistical Office latest data.

    Due to the worsening epidemiological emergency, regulatory restrictions were gradually introduced, which also affected retailing, with an impact on the turnover of all business types.

    The volume of sales, adjusted for calendar effects, rose by 12.7% in specialized and non-specialized food shops, by 0.5% in non-food retail shops and decreased by 16.7% in automotive fuel retailing.

    In January–March 2020, the volume of sales – also according to calendar adjusted data – was 7.2% higher than in the corresponding period of the previous year.

    Main sales data in Hungarian retail

    The volume of sales increased by 12.7% in specialized and non-specialized food retailing. The volume of sales grew by 15% in non-specialized food and beverages shops accounting for 77% of food retailing and by 4.8% in specialized food, beverage and tobacco stores.

    The turnover of non-food retailing increased by a total of 0.5%. Sales rose in non-specialized shops dealing in pharmaceutical, medical and cosmetics goods (38%), as well as in manufactured goods (0.9%). The volume of sales fell in textiles, clothing and footwear shops (-51%), second hand goods shops (-26%), books, computer equipment and other specialized stores (-14%), as well as in furniture and electrical goods stores (-9.3%).

    The volume of mail order and internet retailing accounting for 7.9% of all retail sales and involving a wide range of goods rose by 41%, continuing a multi-year expansion.

    The volume of sales in automotive fuel stations decreased by 16.7%.

    Sales in motor vehicles and motor vehicle parts and accessories stores not belonging to retail data decreased by 4.6%.

  • Sale of non-food goods significantly decreased due to coronavirus in Czechia

    Sale of non-food goods significantly decreased due to coronavirus in Czechia

    Results for March 2020 were influenced by measures taken to prevent the spread of coronavirus because of which many stores with mostly non-food goods were closed for part of the month or their operation was limited.

    The most significant year-on-year sales decrease (drop by 64.9%) occurred in stores with clothing, footwear and leather goods and in stores with cultural and recreation goods (drop by 47.1%).

    Sales decreased also in retail sale in specialised stores with information and communication equipment (drop by 29.7%) and in retail sale of other household equipment in specialised stores (drop by 22.0%).

    Sales for sale of goods via mail order houses or via Internet increased (+20.8%). Growth of sales was reported also for the sale of dispensing chemist, medical and orthopaedic goods (+9.1%).

    The above mentioned overall growth of sales for food was entirely owing to retail sale in non-specialised stores with food, beverages or tobacco predominating (growth of sales by 5.2%).

    Sales in retail sale of food, beverages and tobacco in specialised stores decreased by 17.3%.

  • Turnover of Austrian retail trade decreased by 29.0% in the non-food area

    Turnover of Austrian retail trade decreased by 29.0% in the non-food area

    In March 2020, the turnover of Austrian retail trade decreased by 12.9% in nominal terms and by 13.7% in real terms compared to March 2019, according to preliminary calculations by Statistics Austria.

    The main reason for this decline is the closure of a large part of the shops due to measures to contain the corona pandemic. In the non-food sector, which was particularly affected, the minus was 29.0% (nominal).

    In the first quarter of 2020, turnover decreased by 1.5% in nominal terms and sales decreased by 2.7%.

    Results were calculated by Statistics Austria, Short Term Statistics Trade.

  • How coronavirus pandemic affected the Bulgarian consumer

    How coronavirus pandemic affected the Bulgarian consumer

    In the conditions of COVID-19, consumers have become more rational and more price sensitive. 41% go to the store only once a week, and 36% even less often as they also admit that they are increasingly looking for bargains and promotions.

    Many of the respondents believe that in the conditions of -COVID-19 they have acquired useful shopping habits and would continue to do so after the end of the state of emergency.

    59% want to think more about their purchases in the future, and 54% say they will continue to buy mainly Bulgarian products.

    81% of Bulgarians want more local products

    According to 81% of them, big chains need to invest more in the economy in Bulgaria by offering more goods produced in the country.

    More than half say they would prefer Bulgarian goods, even if they were at a higher price, and 70% would even change the store from which they shop for another where they can find Bulgarian production.

    87% of respondents indicated that they had complied with the recommendations for social distance and spent Easter at home. More than 70% say they support the state of emergency, but also admit to being concerned about the situation in the country.

    The survey on the Bulgarian consumer behavior trends was conducted by Online Marketing Research Agency JTN.

  • First Lavazza coffee shop concept launched outside Italy, in China

    First Lavazza coffee shop concept launched outside Italy, in China

    • Lavazza and Yum China announced that they entered into a joint venture, to explore and develop the Lavazza coffee shop concept in China.
    • As the first step, a new Lavazza Flagship Store in Shanghai, their first outside of Italy, opened its doors to customers.

    Like Lavazza’s first flagship store in Milan, the Shanghai Flagship Store serves as a “gastronomic café”, offering a variety of classic and creative coffee options alongside an exceptional food selection that includes a range of traditional Italian inspired snacks.

    At the heart of it all is Lavazza’s range of premium and high-quality coffee beans, including Lavazza Kafa, one of the finest coffees in the world originating from the Ethiopian forest, and the Lavazza Classic Collection, which offers traditional Italian espresso coffee with a contemporary twist.

    A particular highlight is Bel Paese Coffee, which is an exclusive lineup created for the China market, offering a unique journey of tastes from across the different regions of Italy, including using historic espresso recipes and local interpretations.

    Coffee Design creations are also available at the Shanghai Flagship Store and offer a line of specialty drinks that bring customers an innovative coffee experience based on exceptional gastronomy techniques.

    Lavazza partnered with a Michelin starred chef for food offering

    To create the food offering for the Flagship Store, Lavazza partnered with a Michelin starred chef to bring the most authentic Italian street food to the local Chinese market.

    Customers will be able to enjoy a wide offering of savory and sweet Italian snacks, such as focaccia and cannolo alla crema, to name a few, all showcasing different gastronomic specialties from across Italy.

    In recent years, the Lavazza Group has embarked upon a process of international development aimed at tapping into new markets and meeting rising customer demand for premium coffee.

    Meanwhile, Yum China has made encouraging advances into China’s coffee market and in 2019 its brands sold 130 million cups of coffee to Chinese consumers.

  • Atterley.com sales are up 200% as High Street crashes

    Atterley.com sales are up 200% as High Street crashes

    • Online fashion marketplace Atterley.com has experienced a sales increase of over 200 per cent during the COVID-19 lockdown against the same period in 2019. 
    • Atterley, which is used by over 250 independent boutiques to reach customers worldwide, has around 2,800 brands live on the site.
    • Atterley was founded in 2016 by Michael Welch OBE, who sold online tyre retail business to Michelin for $100 million in 2014.  

    The company launched a Crowdcube campaign targeting a minimum £500,000 to support the further development of its marketplace technology for boutiques and grow its presence in overseas regions including the US. 

    Atterley’s founder and chairman Mike Welch said: ”The beauty of our business model is that instead of operating out of warehouses with stockpiles, our boutique partners provide Atterley with stock and can operate with just one person in each store ensuring safe continuous trading while their doors remain closed to the public. We’re seeing customer growth on the back of the public wanting to support local boutiques during the pandemic and we’ve also seen a marked upswing in boutiques wanting to join the platform since the lockdown took hold.”

  • 9 of 10 nonfood retailers expect turnovers to be affected by the Covid-19 epidemics

    9 of 10 nonfood retailers expect turnovers to be affected by the Covid-19 epidemics

    Nonfood retailers in Romania are among the most affected by measures taken during the state of emergency to prevent the spread of Covid-19.

    45% of retail tenants expect over 30% decrease of their turnover in 2020 and another 39% foresee up to 30% declines as a result of these at least 2 months of no trading, with slow recovery expected in the second half of this year, according to a study conducted by Colliers International’s Retail Division among 84 tenants and 21 landlords from the retail sector in Romania.

    Medium to long-term effects are still difficult to evaluate, especially considering uncertainties regarding possible further measures that could be applied by authorities after May 15th. However, retail landlords already have support measures in place for tenants that are affected by the emergency state, like suspending rent payments for the no trading period, potentially with later means of compensation, or closing part of the centers in order to reduce the value of the service charge that is supported by tenants. Colliers International’s study is part of a broader analysis of the overall real estate market outlook, based on relevant insights from all market segments, which is presented in this period with the objective of bringing some clarity about the market.

    88% of the retailers applied for technical unemployment measure

    Retailers’ reaction to the government’s decision to close non-essential stores was immediate and in order to minimize impact of the current context. As a result, 62% of tenants suspended or delayed rental and utilities payments and 52% applied for rent reductions when stores will be reopened, according to Colliers International’s study among retail tenants active mainly in fashion, food and beverage, cosmetics, services, entertainment, services or beauty.

    In addition, to support business recovery, 88% applied for the technical unemployment facility, 48% will use the tax payment delay offered by the state and 33% will suspend the financing payments until the end of year.

    On the other hand, 67% of retailers are concentrating to compensate for the loss from the brick and mortar presence with alternative sale channels, but only part of the loss is expected to be recovered though this channel. About 36% expect online sales to grow this year, of which half count on at least 20% increase. However, 22% of retailers believe sales will decline even on this channel, due to low consumption appetite.

    62% of retail landlords suspended rent payment for non-trading retailers

    Landlords of retail spaces also reacted rapidly in the current context, closing part of the shopping centers, where it was physically possible (67%), renegotiating terms with third party suppliers (45%) and even with banks (29%).

    Almost all of them have also used some available state benefits, such as delay of tax payment (52%), technical unemployment (48%) and delayed bank payments (24%).

    To support their tenants during the Covid-19 crisis, 62% of landlords have chosen to charge only service charges from retailers, in order to keep the retail centers clean, safe and the technical equipment in good order while trading is partially closed.

    In this context, landlords are also expecting to see declines in net operating income in 2020, with 67% estimating a decline of up to 30% and another 24% considering more pronounced declines this year.

    The retail market is expected to recover starting Q4 of 2020

    First signs of recovery in the retail market are expected starting with Q4 2020, but with more consistent results in 2021, which shows that both retailers and landlords are confident in a relatively fast recovery.

    More exactly, 67% of landlords and 51% of tenants expect to return to satisfactory business levels compared to levels before the Covid-19 epidemics by the end of 2021.

  • The restriction on shopping centers activity affects over 9.000 stores in Romania

    The restriction on shopping centers activity affects over 9.000 stores in Romania

    The decision of the authorities to temporarily suspend the purchase of goods considered non-essential from the shopping centers affects more than 9.000 stores and each day when they are closed equals with between 15 and 20 million euros lost from unearned income, according to an analysis made by the real estate consulting company Cushman and Wakefield Echinox.

    The military ordinance issued in the context of the Covid-19 pandemic makes an exception for suspending the stores that mainly sell food, electronic, pharmaceutical and pet shop products, as well as cleaning and optical services.

    The modern retail stock (malls, retail parks and commercial galleries) in Romania sums up about 3.9 million square meters, of which 23% is represented by supermarkets and hypermarkets, the main category of stores that remain open, according to Cushman & Wakefield Echinox data.

    The estimated unearned income takes into account an average level of sales in a normal activity timeframe for a shopping center, at around 2,000 euros / sqm / year respectively.