Retailers across Europe are planning to expand their store portfolios after two challenging years.
CBRE’s latest EMEA Retail Occupier survey shows confidence returning across Europe, with 57% of retailers identifying store expansion as a key priority.
It surveyed more than 50 retailers across a range of sectors that, between them, account for more than 70,000 stores globally.
Of those, 37% want to open in new markets, with the top three locations identified as Germany, France and the UK.
When asked about their preferred location for expansion, respondents noted regional shopping centres and city centre high streets as their top choices. For clothing and footwear retailers, retail parks are the number one priority, in line with retail park success throughout the pandemic.
The report also highlighted the role a physical store plays in enhancing a retailers’ online presence, with two-thirds saying the presence of bricks-and-mortar stores increases their online sales within the local catchment.
Chris Gardener, head of EMEA retail at CBRE, said: “There is no doubt the advancement of online retail is here to stay, but these survey results paint a more resilient picture for physical retail. Occupiers have expansion plans on the agenda as they see real value in physical retail, something that can’t be replicated through online-only channels.”
Retailers rated brick-and-mortar retail as more effective than online across all of the metrics, demonstrating the value of physical retail in creating brand loyalty.
Respondents also said that supply chain and ESG were key focuses. More than a third of retailers agreed that brands will place a greater emphasis on the ESG credentials of a property when considering expansion.
Alex Ozga, senior research analyst for EMEA retail, added: “Sustainability has become a key focus for retail occupiers. Many of Europe’s largest retailers have pledged to become net-zero businesses by 2040, with retailers in the fashion space increasingly offering repairs and rentals as part of their service offering as an example.
“Our survey results suggest that this push for sustainability is beginning to form part of retailers’ physical real estate plans.”
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