Germany: Shopping Center – From Stars to Cash Cows

According to a current report from EHI Retail Institute (a scientific institute specialized in retail market research) German shopping center installations have developed from stars to cash cows, as shows their relative market share. Following the opening of around ten new shopping center installations per year – the average value during the past two decades – only three new shopping centers opened their doors in Germany in 2016, also decreasing in size. For the coming years the institute forecasts revitalizations of the country’s existing 479 centers rather than investments in new facilities.

“Nowadays, if a shopping center seeks to attract customers this can only be reached via a profiling of the guests’ stay quality and an attractive mix in tenants – this means higher efforts and greater competition,” said Marco Atzberger, member of the EHI management board. Also, plans for new centers to open in 2017 are rather cautious, including four new objects in smaller German towns like Halver, Neutraubling and Weil am Rhein. The report’s results underline the developments in the leisure industry, with shopping offers rounded off by adding family entertainment centers, ropes courses or gaming areas (amongst others). (eap)