Advertisement

Market report

The disposable income gap between Central and Eastern Europe’s (CEE) economies, which are enjoying solid economic expansion, and stagnating Western European countries is narrowing fast. This is buoying consumer spending in markets like Poland and Romania and attracting international and regional retailers to large modern shopping centers that dominate the CEE’s shopping and experience landscapes, while also offering higher margins and lower costs, NEPI Rockcastle’s latest ‘White Paper for Growth’ research concludes.

According to Regio Data’s most recent report, while brick-and-mortar retailing throughout Europe has been in decline for years, factory outlet centers are developing magnificently. In total, the sales area of the 180 outlet centers is already around 4.6 million sq m, compared with 3.3 million sq m a decade ago. This results in an increased rate of almost 40% – and another 18 projects are in the planning stage.

Digitalization in the retail sector is in full swing. This is leading both to a changed shopping experience for customers of local suppliers and discounters and to simplified processes in the management and purchase and sale of retail real estate. However, retailers should be mindful of customers’ interests when using artificial intelligence (AI) in sales. While functioning digital systems are important, completely digital smart stores without personal support miss the mark when it comes to consumer needs. This is shown in the third GRR Basic Retail Report, which GRR Group is presenting with its cooperation partner Savills.