Shoppers return to leisure and luxury spending as consumer confidence grows across continental Europe
CBRE Global Investors is experiencing strong consumer confidence across its continental European portfolio on the back of falling prices and higher wage growth.
The company has seen positive sales growth reported by retailers in its portfolio in 11 out of the 13 continental European markets in which it is invested. Spain, Portugal, Netherlands, Poland and Czech Republic are seeing particularly strong year-on-year growth.
Florencio Beccar, Head of Retail for CBRE Global Investors, said: “We have definitely moved on from describing consumer growth as ‘patchy’ to a picture where we are seeing momentum across most of the continental markets in which we invest. This is being driven by falling prices and higher wage growth but also by consumer behaviour. It appears that appetite to spend has returned as soon as people can afford to do so.”
The retail sectors experiencing the most growth reflect a move towards discretionary spending on non-basic items as well as leisure. While staples such as household goods and pharmacy spending showed strong growth, there were significant increases year-on-year for cinema, restaurants and bars, accessories and specialist electronics.
Marije Braam, Head of EMEA Retail Research, said: “The figures indicate that consumers are now treating themselves alongside their basic shopping needs in our centres. The high spending on cinema and eating out also underscores the growing role that leisure is playing in successful shopping centres.”
The strong consumer growth has translated into strong leasing activity for the company in its centres. It has signed new leases totalling 181,000 sqm across continental Europe so far in 2015.
CBRE Global Investors is a leading retail investment manager in EMEA with €14.1 billion of non-listed retail assets under management with 679 retail assets (of which 72 are shopping centres) across 15 countries and over 6,800 retail tenants.