- Nearly three-quarters of study respondents plan to expand their portfolio of bricks and mortar stores.
- Retailers primarily target Retail Parks for expansion plans.
- 72% of retailers aim to increase their store space, compared to 26% in 2022, with physical stores remaining a key element in the overall strategy.
Bucharest, 29th October 2024 – The results of the CBRE European Retail Occupier Survey 2024 emerge during a time of optimism, as the retail sector and regional economy overall approach the end of a challenging period. The study includes responses from over 60 global retailers with a store network of over 130,000 locations, and shows that 71% of retailers planning to increase their number of physical stores intend to do so in markets where they are already present.
The preference for larger stores is one of the key trends observed in the market, particularly among fashion and athleisure brands in capital cities and major urban areas. A trend specific to the luxury sector is owning stores instead of leasing them. However, leasing remains the predominant strategy for the mass market, with 84% of respondents stating they have no plans to purchase stores.
„Improved consumer confidence is starting to translate into higher spending, which is giving retailers confidence to commit to stores both in markets familiar to them, and new markets altogether. Brand loyalty is often enhanced through in-store experience, and this is where we see retailers really committing to store investments and using bricks and mortar to truly showcase their brand identity”, highlighted Chris Gardner, Head of European Retail, CBRE.
In terms of preferred formats, Retail Parks are dominant, with 45% of respondents favouring them as locations for future stores. The popularity of this format is also supported by factors such as: 1. High foot traffic generated by residents in the area, 2. Access to free parking, and 3. Similar retailer profile within the same retail park—all three criteria being identified as influential factors for store performance.
Overall, bricks and mortar stores remain an essential component of strategy, with 97% of respondents acknowledging their importance. Additionally, there is a shared belief on the effectiveness of physical stores, which outperform online retail in terms of consumer engagement, cross-selling, overall sales strategy effectiveness, introducing new products, and attracting new customers.
„The fact that 72% of retailers want to increase the size of their physical stores, compared to just 26% in 2022, along with the appetite for expansion in both new and existing markets across Western Europe and CEE, suggest a favourable 2025 for retail. The sooner retailers can implement AI solutions, the more they will be able to enhance store profitability and the shopping experience. I would like to thank the retailers in CEE and EMEA who participated in our study; the findings are extremely interesting and reveal some key trends for the coming year”, stated Carmen Ravon, Head of Retail Occupiers CEE, CBRE.