Skip Ribbon Commands
Skip to main content

News

London

Experian & Jones Lang LaSalle Launch Joint European Retail Rankings

London and Paris Top the European Shopping League


Experian and commercial real estate firm Jones Lang LaSalle have launched the 2009 European Retail Centre Rankings, which for the first time shows the relationship between consumer spending in European cities and prime retail rents. The new rankings have been designed to equip investors, developers and retailers with crucial insights into the best European location opportunities.

London and Paris are clearly the place to be in Europe, as the cities occupying the first and second positions in the rankings in terms of consumer spend have some of the highest prime rents. Italy, Germany and Spain all have two centres each that make the top 10 of the European Rankings. Moscow is the only city in Central and Eastern Europe to break into the top 10.

Rome, in third place, edges Milan as the top Italian location, largely thanks to its importance as a tourist destination and the relative lack of competition to its downtown retail offer. In both cites rents for super-prime units can reach levels commonly found in London and Paris, although their general rental level is much lower.
The dominance of London on the UK retail landscape is evident, with Glasgow being the only other top 20 entrant. Going against preconceptions that the UK is an expensive occupier market, locations away from London have prime high street rental levels that are comparable to those in the wider European pack, although UK rents are currently lower than they normally are relative to other European cities, due to recent exchange rate fluctuations.

In Germany, whilst overall spend is highest in Berlin, rental levels are much higher in Munich and Frankfurt. This reflects strong occupier demand and a high quality mix of retailers, and for this reason Munich is widely considered to be the top retail location in Germany. Likewise, Dusseldorf, ranked 43rd in terms of spending, has a strong luxury retail offer with the 13th highest rental level in Europe, and has a spend per capita to match.  This highlights the importance of analysing both spend and rental levels when assessing a city's retail potential. The Euro Retail Rankings are the first rankings to combine both spend and prime rental levels to understand the quality of a city's retail provision and the turnover levels that retailers can achieve.

Locations from Central & Eastern Europe account for only 10 per cent of the top 50, demonstrating that despite a boom in retail development over the last few years, downtown areas still generally lack the quality and quantity of retail stock found in Western European cities. Relative disparities in spend per capita are also a major factor in the limited number of CEE cities entering the top 50. Despite this, Prague, Istanbul and Budapest all rank highly thanks to their strong downtown shopping centre offer.

Stockholm (26th position) and Helsinki (27th) have comparatively lower rents than their peers in mainland Europe, due in part to historically weaker demand from international retailers (largely for logistical reasons) although this is now changing.

There is little to separate many of the locations outside the top 25, with Warsaw (52nd) and St Petersburg (65th) for instance having a similar catchment spend to higher ranked cities such as Antwerp (50th) and Bordeaux (46th). They only fall short of the top 50 due in part to the comparatively lower downtown retail space provision and heightened competition from out-of-town shopping centres.

Jonathan de Mello, director of Retail Property Consultancy, commented: “Our pan-European retail rankings, with the addition of rental data from Jones Lang LaSalle, will provide retailers and property investors with unique insight into the best retail centres in Europe. Our rankings are gravity modelled rather than drive-time based, and as such take into account the effect of competition – crucial in markets with significant out-of-town retail such as Berlin, Madrid and Lisbon. Our rankings provide the most comprehensive overview of retail centres across Europe ever.”

James Dolphin, head of Pan-European Retail Agency at Jones Lang LaSalle said: “The Euro Rankings provide a major step forward in establishing and comparing the size of the retail spend in major European cities.  This is a crucial first base in assessing the opportunity for retailers, developers, and investors. But it’s not just about size: understanding rental levels is equally important.  By combining both and applying our specialist retail agent’s knowledge and expertise in each country, we can better understand the quality of the retail environment, occupier demand, availability of space and ultimately provide a guide to helping determine potential turnover.  As ever, it is about local expertise and fully understanding the unique supply and demand characteristics in each location.”

Experian has analysed levels of retail expenditure for all the major European destinations alongside rental data from Jones Lang LaSalle. The European rankings draw on Experian’s unique and extensive global data resources to calculate total retail spend for each major European destination. For each city, the rankings take into account cross border spend, spend-per-head differences by country, the retail offer within each city and the effects of competing out-of-town centres.
This European Retail Rankings provide retailers and property investors with the most robust account of retail trade generated by Europe’s top centres. The gravity model draws on Experian’s unrivalled position as one of the world’s leading providers of retail data, analysis, economic forecasting and consultancy.
                                                                              
The twenty five top European retail destinations are as follows:

Rank
City
Country
Catchment Spend (Comparison Goods in Downtown Area)
Q1 2009 Prime High Street Retail Rent (€/sq m/year)
1
London
UK
€ 6,174 million
€ 6,440
2
Paris
France
€ 5,879 million
€ 7,500
3 Rome Italy € 5,762 million € 6,500
4 Madrid Spain € 5,377 million € 2,640
5 Berlin Germany € 5,080 million € 2,640
6 Munich Germany € 4,630 million € 3,720
7 Barcelona Spain € 4,398 million € 2,544
8 Athens Greece € 4,385 million € 2,400
9 Moscow Russia € 4,075 million € 2,900
10 Milan Italy € 4,065 million € 6,800
11 Zurich Switzerland € 3,904 million € 4,970
12 Hamburg Germany € 3,867 million € 2,760
13 Prague Czech Republic € 3,220 million € 1,800
14 Lyon France € 2,982 million € 2,400
15 Amsterdam Netherlands € 2,965 million € 2,265
16 Cologne Germany € 2,813 million € 2,580
17 Frankfurt Germany € 2,733 million € 3,240
18 Glasgow UK € 2,715 million € 1,897
19 Brussels Belgium € 2,705 million € 1,600
20 Istanbul Turkey € 2,653 million € 2,220
21 Birmingham UK € 2,515 million € 1,661
22 Manchester UK € 2,442 million € 1,510
23 Dublin Ireland € 2,411 million € 4,456
24 Copenhagen Denmark € 2,332 million € 2,000
25 Liverpool UK € 2,320 million € 1,810
 
Exchange rates used for Catchment Spend (as at March 2009):

1 EUR€ = Russia ROB 45.421; Switzerland CHF 1.587; Czech Republic CZK 26.946; Turkey TRY 2.206; Denmark DKK 7.456; UK GBP 0.93