Article
How is retail performing against the current economic headwinds?
October 4, 2022
To answer this question, CBRE collects sales and footfall data at many of the continental European assets we manage. With this enhanced insight we are in a strong position to understand retail performance, and proactively manage our assets. Below we take a look at the key findings for H1 2022:
Footfall has continued to improve since the start of the year and is getting closer to pre-pandemic levels. The average footfall at our assets in Czech Republic, Portugal, Slovakia and Switzerland are showing the strongest recovery.
Sales continue to outperform footfall recovery. A third of the markets where we are tracking this metric, now exceed pre-pandemic levels. Shopping centres are now leading the way in terms of performance, but retail parks are not far behind.
Occupancy Cost Ratios (OCR) are also getting closer to pre-pandemic levels. For the year ending Jun-22 the average OCR at our assets had fallen to 10.2%, versus 9.7% in 2019. Over 50% of product categories now have a lower OCR than in 2019, most notably household & furniture, accessories and fashion.
Vacancy Rates have also fallen in 2022. In Dec-21 the average vacancy rate stood at 7.7%, as of Jun-22 it is now down to 6.8%. Improvements in performance have been seen in both Shopping Centres and Retail Parks.
Despite a shaky economic backdrop to the first half of 2022, our analysis has demonstrated the resilience of retail performance at CBRE managed assets. With further headwinds ahead investors and landlords should look to stay up to date with the latest market performance to help make informed strategic decisions about their assets.
If you want to discuss market trends and our asset management services, please do get in touch.
Footfall has continued to improve since the start of the year and is getting closer to pre-pandemic levels. The average footfall at our assets in Czech Republic, Portugal, Slovakia and Switzerland are showing the strongest recovery.
Sales continue to outperform footfall recovery. A third of the markets where we are tracking this metric, now exceed pre-pandemic levels. Shopping centres are now leading the way in terms of performance, but retail parks are not far behind.
Occupancy Cost Ratios (OCR) are also getting closer to pre-pandemic levels. For the year ending Jun-22 the average OCR at our assets had fallen to 10.2%, versus 9.7% in 2019. Over 50% of product categories now have a lower OCR than in 2019, most notably household & furniture, accessories and fashion.
Vacancy Rates have also fallen in 2022. In Dec-21 the average vacancy rate stood at 7.7%, as of Jun-22 it is now down to 6.8%. Improvements in performance have been seen in both Shopping Centres and Retail Parks.
Despite a shaky economic backdrop to the first half of 2022, our analysis has demonstrated the resilience of retail performance at CBRE managed assets. With further headwinds ahead investors and landlords should look to stay up to date with the latest market performance to help make informed strategic decisions about their assets.
If you want to discuss market trends and our asset management services, please do get in touch.
Contacts
Ana Monfort Colom
Director, European Retail Management and Client Service
Klara Bejblova
Retail Research & Consulting CEE & Czech Republic