Destination Retail Benelux 2016 - Key retail cities across Benelux - Paperjam
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Destination Retail Benelux 2016 Key retail cities across Benelux
Foreword
Challenges and opportunities in Benelux!
We think that the time is right to issue a Benelux version of the global Destination
Retail 2016 report based on three important observations: Benelux’s population
is forecast to increase to 33.2 million by 2050, retailer demand in the region is
concentrated in large conurbations and Benelux has proved resilient to economic
downturns. This report focuses on the 13 main retail cities in Belgium, the
Netherlands and Luxembourg.
As both food and beverage and luxury are booming sectors, separate chapters
have been added to provide you with deeper insight into the trends in these market
segments.
In terms of real estate, there are significant opportunities in many cities as current
retail locations are being improved by redevelopment and because new future-
proofed retail places are being created in growing cities.
This report, Destination Retail Benelux 2016, explores the most attractive retail
hotspots across the region and provides valuable insight to retailers looking to
expand or optimise store portfolios. One of the indicators we use is ‘international
retailer presence’, which is an effective indicator of the attractiveness of a retail
zone. Our Benelux teams have selected and analysed the international retailer
presence, either existing or imminent, of 200 brands.
We appreciate that the challenges of successful store expansion, careful planning
and thorough due diligence remain crucial for long-term success, but we also want
to emphasise that those who get it right are able to reap the rewards of their efforts.
To our clients, we are grateful and proud to be able to accompany you on your
journey. And to other stakeholders and interested parties, we hope you enjoy this
report, whether you are a shopper, a retailer or an investor.
Thierry Debourse*
Regional Director,
Head of Retail Benelux
JLL
| 2 | JLL Destination Retail Benelux 2016 | 3 |
Apple store,
Brussels
Content
1 Fast Facts 7
Key highlights and conclusions from the report
2 European Context 8
Appeal of Benelux in Europe
3 Retail Cities Benelux 10
Analysis and key retailers of major city markets in Benelux
4 Luxury 30
Key market trends and Benelux luxury city ranking
5 Food & Beverage 34
Food & Beverage market gains momentum
6 Outlook Retail 2020 40
| 4 | JLL Destination Retail Benelux 2016 | 5 |
1. Fast Facts
Destinations: Benelux has a current population of 28.8 million concentrated
in large yet human-scale urban centres. Amsterdam, Brussels, Antwerp,
Luxembourg City and Rotterdam are the top five retail cities in Benelux, with
widespread international retailer presence. Overall, the retail cities in this report
are easily accessible and attract national and international retailers.
Extensive and expansive retailers: H&M, C&A, Vero Moda and Zara are the
most widespread fashion retailers in the retail cities of Benelux; Dutch retailers
Hunkemöller and Rituals show resilience; and Starbucks and JD Sports have
also achieved broad market penetration. For the aforementioned brands online
retailing is of significant importance nowadays as well.
Luxury: The luxury market has shown resilience in difficult market conditions as
luxury brands have focused on an exclusive shopping experience, thus limiting
the impact of online retail, which offers expansion opportunities in this segment.
In addition, the luxury market is benefitting from long term growth prospects for
tourism.
Dining: The food and beverage sector is a growing and exciting market, although
consumer behaviour is evolving and new formats are therefore demanded. The
Food and Beverage sector may therefore benefit and potentially take a share of
20% – 25% in our future retail landscape.
Retailer Strategy: International retailers are increasingly focusing on prime
profitable locations, where they tend to expand their retail stock to be able to
offer comprehensive services. In addition, online retail demand is increasing,
meaning that both national and international retailers have to anticipate new
and changing trends in order to integrate the physical and the online sale into
a “phygital” store.
| 6 | JLL Destination Retail Benelux 2016 | 7 |
2. European Context
Growing appeal of Brussels, Amsterdam and
Antwerp benefit from robust growth whilst mitigating operational risks in a
fast-changing world.
Brussels, Amsterdam and Antwerp are among the most attractive
shopping destinations in Europe. Based on the analysis from Brussels, Amsterdam and Antwerp are attractive destinations for
Destination Retail 2016, these cities rank 11th, 12th and 20th international brands looking to expand across Europe and should be
respectively in terms of international retailer presence across high on the list as the next port of call for retailers looking to expand
Europe’s key retail cities. On a global level Brussels ranks 39th, into Benelux. Looking at next-tier destinations, the Benelux region
followed by Amsterdam (43rd) and Antwerp (63rd). offers other attractive cities with a strong appeal to international
brands that can add to a more diversified retail offer, including
The three cities are regarded as ‘mature retail cities’ and are often Ghent, Bruges, Luxembourg City and Utrecht.
the next port of call for international retailers looking to expand
further into Europe after entering major European cities such as Within the Benelux retail market, the largest international retailers
London, Paris, Milan, Madrid or Berlin. Brussels, Amsterdam and originate from the US, such as Foot Locker and Tommy Hilfiger,
Antwerp are established markets, with strong domestic sales, although German retailers have expanded most rapidly in the last
domestic brands and an affluent consumer base. They are among year, with brands such as & Other Stories, Decathlon and Superdry
the most transparent real estate markets globally, and local entering the market in prime retail locations.
legislation is favourable towards international retail brands. Thanks
to a well-developed retail offer, these cities have a strong appeal Thanks to Benelux’s sizeable market and the access it provides
towards shoppers in their respective wider surroundings as well as to both local shoppers as well as tourists, a retail presence in
international tourist visitors, making them also the most resilient the region can help international retailers achieve more balanced
retail destinations in Benelux. growth across their international store portfolio.
The growing appeal of Brussels, Amsterdam and Antwerp for
international retailers has been well evidenced in recent years.
Amsterdam has welcomed premium brands including Ted Baker, Top 10 retailer presence
Stradivarius and Hudson’s Bay Company on historic Leidsestraat, % Coverage of Benelux's key countries of origin
Kalverstraat and Rokin, whilst luxury brands have found their way to
The Netherlands 11
P.C. Hooftstraat. Brussels’ Louizalaan and Boulevard de Waterloo,
where upmarket brands such as Montblanc and Fabiana Filippi have US 22
opened up new stores, have seen a similar upward trend. As a result Germany 33
of the increased competition between retailers for quality space,
France 44
rents have risen significantly on these shopping locations
Spain 55
Italy 66
Benelux is calling
UK 77
Recent developments, including the outcome of the Brexit vote, Denmark 88
growing concerns over China’s economy and hardening geopolitics, Sweden 99
have increased uncertainty in the global economy. Against the
Hong Kong 10
10
background of ongoing structural change of retail markets, we expect
international retail expansion across the world’s most attractive and 0 5% 10% 15% 20% 25% 30%
resilient cities will accelerate. Retailers with a strong proposition can
Source: Tjard Martinus, EMEA Retail & Consulting JLL, 2016
| 8 | JLL Destination Retail Benelux 2016 | 9 |
Top 13 most attractive markets 2016
Amsterdam % coverage of surveyed retailers in the 13 key retail markets in Benelux
Mainstream Premium Luxury
The Hague Utrecht
Amsterdam 1
Rotterdam
Brussels 2
Antwerp 3
Luxembourg City 4
SOURCE: JLL, 2016
Rotterdam 5
The Hague 6
Ghent 7
Eindhoven
Hasselt 8
Source: Locatus, 2016 and JLL, 2016
Utrecht 9
Antwerp Maastricht 10
Bruges
Eindhoven 11
Ghent Liège 12
Bruges 13
Hasselt
Maastricht 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Brussels
Liège
3. Retail Cities Benelux
With its central location in the mature markets of Western Europe and with neighbours as Germany and
France, Benelux is a well accessible market. The present publication concentrates on the 13 major retail
cities in Benelux, respectively six in Belgium and the Netherlands and one in Luxembourg.
We have examined the retail market of Benelux with a focus on retailer presence, as the number of
international retailers present in a market is an effective indicator of the global attractiveness of a market. Luxembourg
We have based our analysis on the presence of 200 selected brands combining non-food and food
brands in the largest retail cities in Benelux.
For Belgium these are Brussels, Antwerp, Ghent, Liège, Hasselt and Bruges, whilst for The Netherlands
cities surveyed in this report are Amsterdam, Rotterdam, The Hague, Utrecht, Maastricht and Eindhoven.
In Luxembourg the highest retailer presence is measured in the Capital, Luxembourg City. On the
following pages we present our top 13 ranking.
| 10 | JLL Destination Retail Benelux 2016 | 11 |
Docks Bruxsel
Prime rent compared to catchment relative to GDP per capita shopping district
highest
International Retail Markets
National Retail Markets
Rotterdam
The Hague Amsterdam
Brussels
Utrecht
Antwerp
Eindhoven
Liége
Ghent
Maastricht
Bruges
SOURCE: JLL, 2016
Luxembourg City
Hasselt
Prime Retail Rent (€)
lowest
0 1,000 1,500 2,000 2,500 3,000 3,500
The size of the circles in the graph above represent the GDP per Capita, with circle size providing an overall indication of the
affluence of the local consumer base. Luxembourg City for example is displayed by the largest circle in the graph indicating the
considerable wealth of the population base.
The X-axis represents the current prime retail rent, for example indicating that the prime retail rent in Benelux stands at € 2,950
per sq m per year in Amsterdam. The Y-axis represents the 30 minute catchment area of each city in Benelux, indicating that
Brussels’ catchment is larger than Antwerp’s.
| 12 | JLL Destination Retail Benelux 2016 | 13 |
Belgium
Major Belgian cities are resilient retail locations
Brussels and Antwerp are the two largest cities and the top retail destinations in Belgium. Brussels has
the highest presence of international retailers, closely followed by Antwerp. Although both cities differ in
market size, opportunities and barriers for retailer expansion, they are the entrance point to the country
for many international brands.
Flagship stores of both national and international retailers are located here, with recent entrants such as
Marks & Spencer, Apple and Bodum in Brussels, and Bimba y Lola, Uniqlo and Manila Grace in Antwerp.
Market entrance is hindered by low vacancy rates and the absence of retail stock growth possibilities
in prime locations. Brands have increasingly focussed on prime locations in the cities with their flagship
stores to showcase and reinforce their brand’s image.
Apart from the top two cities, the prime high streets in other large cities such as Ghent, Hasselt, Liège
and Bruges also attract many international retailers, thanks to various drivers such as market size, the
presence of new projects and, in various degrees, tourism. In terms of international retailer presence,
however, Ghent completes the top three thanks to its advantageous catchment area and the presence
of available opportunities, whilst Liège, Bruges and Hasselt remain more regional markets with fewer
international formats present.
Mainly European and American retailers present
Retail brands present in Belgian high streets are dominated by North American and European brands,
with the US, Italy and France comprising the top three countries of origin for retailers. In addition
retailers from other European countries such as the Netherlands, the UK, Spain and Germany are well
represented in cities across Belgium.
Domestic brands such as JBC, Caroline Biss, Delvaux and Leonidas are limited in number. Independent
local shops are gradually disappearing and are being replaced by international formats. On the other
hand, new local brands have entered the market, often with specific urban formats, such as Juttu and
Cook & Serve.
The rise of online retail
Online retail recorded over 30% growth in 2015 with a volume of approximately €8.2 billion. However,
online sales still represent only a fraction of total retail sales in Belgium, compared with mature
e-commerce markets such as the UK, where online sales account for more than 10% of total retail
sales. E-commerce is still a growth market in Belgium, and with forecasted average growth rates of over
15% each year over the next 2-3 years. International brands are focused on locating their physical shop
networks in prime future-proof locations where large flagship stores and concept stores appear, often
incorporating a new vision of shopping. As such, international brands will likely reduce their physical
presence in secondary locations.
| 14 | JLL Destination Retail Benelux 2016 | 15 |
Rank 3
Antwerp
Antwerp is the largest city in the Flanders region and is the third one of the highest in Europe, with an average of over 90,000
most attractive location for international and national retailers in daily visitors, including many foreign tourists hailing mainly from
Benelux. Antwerp is Europe’s second largest port and one of the the Netherlands.
largest centres of the diamond trade worldwide. With 520,000
inhabitants and a bevy of tourists and business travellers, Huidevettersstraat, just off Meir, forms a link between the
Antwerp has an impressive national and international customer mass-market offerings on Meir and the luxury brands on
base. A key driver of footfall is Antwerp’s tourist appeal. Schuttershofstraat. Huidevettersstraat houses many premium
fashion brands such as Bimba y Lola, G-Star, Nespresso and
Antwerp is Belgium’s fashion capital, hosting the MoMu fashion Michael Kors. Schuttershofstraat and its prolongation, Hopland,
museum, the Flanders Fashion Institute and the Fashion is the place to be for international luxury brands, including Gucci,
Department of the Royal Academy of Fine Arts – all of which are Hermès and Burberry.
housed within the ModeNatie fashion complex on Nationalestraat.
Antwerp is renowned as an international fashion centre thanks to The Wilde Zee district is a trendy retail zone just off the main
world-famous stylists such as the ‘Antwerp Six’, including Walter shopping streets of Meir and Huidevettersstraat. It is a trendy
Van Beirendonck, Dries Van Noten and Ann Demeulemeester. neighbourhood that attracts fashionistas and foodies with its mix
Their success has boosted the fashion industry in Antwerp and of clothing, shoe and design brands and gourmet food stores.
Rank 2
has created a vibrant atmosphere in the heart of the city, full of The centrally located, four-storey shopping centre Stadsfeestzaal
Brussels energy and centred around fashion. Nearby Kammenstraat and (25,000 sq m) on Meir encompasses around 40 shops, including
Steenhouwersvest house young design brands such as Fish & mainstream brands such as Urban Outfitters, Sacha and COS.
Chips and Dstrezzed and trendy local stores such as Wasbar. Grand Bazar Antwerp (10,000 sq m) is another large shopping
Brussels, the capital of Belgium, has the highest proportion of Pomelo, a new urban format of Trafic group, Sucx candy store and centre in town, and Den Tir (13,000 sq m) is a shopping centre
international retailers in the country and is the second most soon also Primark. Avenue de la Toison d’Or was boosted by the A varied supply of national and international brands is available located at the edge of Antwerp comprising 23 shops divided over
attractive destination for international and national retailers in recent opening of Flying Tiger Copenhagen and flagship stores on Meir, Antwerp’s prime high street, which is located within two floors. Also outside of Antwerp is Wijnegem (60,000 sq m),
Benelux. The retail scene is characterised by a very diverse of Apple and Marks & Spencer, which have had a positive impact walking distance of Central Station and leads to the old city the largest shopping centre in the country, encompassing 250
consumer market that includes a large amount of commuters, on footfall and have ensured a smooth link between both ends of centre. It houses mainly mainstream brands such as H&M, Zara, shops such as mainstream brands H&M and Zara and premium
a big expatriate community from all parts of Europe and many the avenue. Boulevard de Waterloo, the prime street for luxury JD Sports and soon also Primark. On Saturdays its footfall is brands such as Claudia Sträter and Supertrash.
domestic and international tourists. As such, the city is often brands in the city, is where many French and Italian haute couture
used by international retailers to test the launch of new brands houses are located alongside recent newcomers such as Moncler,
or concepts, and the city’s international appeal continues to grow. Fabiana Filippi and Dolce & Gabbana, with more expected in the
The city’s most sought-after locations for international and national near future.
retailers are Rue Neuve in Brussels Downtown, and Chaussée
d’Ixelles, Avenue de la Toison d’Or, Avenue Louise and Boulevard The largest shopping centre in Brussels is Docks Bruxsel (56,000
Waterloo in Brussels Uptown. sq m), a new shopping district concept, which opened its doors
in October 2016. It is the first new shopping centre in Brussels
Brussels Downtown is an extensive pedestrian retail zone in the in more than 30 years. Besides a shopping district featuring an
city centre around Rue Neuve linking the Rogier metro station and innovative retail mix – with drivers such as Media Markt, Zara
City 2 Shopping Mall at one end to The Mint project on Place de la and H&M and a differentiating upscale cluster with brands such
Monnaie at the other end. Demand in this zone mainly originates as Michael Kors, Liu Jo, 7 for All Mankind and Guess – Docks
from mass-market brands, which include Primark, Zara, H&M, Pull Bruxsel also contains a movie theatre, an indoor adventure
& Bear and C&A. Recent newcomers include Guess and Primark, park, an event hall and various food concepts. Docks Bruxsel is
whose first shop in Brussels is expected to increase footfall in the setting a new standard in Belgium in accordance with the new
southern end of Rue Neuve. customer desire to enjoy an extended, well-rounded experience
that combines shopping with other activities. In addition, Brussels
Brussels Uptown is a retail zone formed by four main streets: contains City 2 Shopping Mall (51,000 sq m), an inner city
Avenue Louise, Avenue de la Toison d’Or, Chaussée d’Ixelles shopping centre, and Woluwe Shopping Centre (44,400 sq m),
and, opposite Toison d’Or, Boulevard de Waterloo. Chaussée which is near the eastern ring road. Two other shopping centres,
d’Ixelles has a retail mix oriented towards mainstream brands, Westland (37,500 sq m) and Basilix (17,900 sq m), are located
with recent newcomers such as La Halle, a French shoe retailer, near the city’s western periphery.
| 16 | JLL Destination Retail Benelux 2016 | 17 |
Rank 7 Rank 12
Ghent Liège
Ghent is Belgium’s third largest city, with more than 250,000 inhabitants, and it is Benelux’s seventh Benelux’s twelfth most attractive location for international and
most attractive location for international and national retailers. Many tourists are attracted to Ghent national retailers is Liège. Liège is the largest city in the Walloon
by its seaport, and the city is also an important industrial cluster in Flanders with large international Region and has close to 200,000 inhabitants. Retailer demand
companies active in the automobile, food, paper and chemical sectors. Ghent’s slogan, ‘So much city’, is boosted by a positive economic growth outlook and visits from
refers to its multifaceted character, which balances urban-scale and human-scale, as well as historical domestic and international tourists.
and contemporary, elements.
Liège has an extensive network of high streets in the city centre,
Retailer demand is boosted by an attractive catchment area and high volume of tourist traffic. The including Rue du Pot d’Or, Rue Vinâve d’Ile and the area extending
city centre has one of the largest pedestrian zones in the country and includes the important historical from Place Saint-Lambert near Palais des Princes-Evêques to Rue
city centre, with the medieval Gravensteen (‘Castle of the Counts’) close to the heart of the inner city du Pont d’Ile. Key retailers in these city centre high streets are
shopping zone. international brands such as Zara, H&M, Mango and Desigual.
The city’s most sought-after locations for both international and national retailers are Veldstraat, Volder- largest shopping centre in Liège, and a 6,000 sq m extension is
straat, Brabantdam, Lange Munt and Koestraat, which have attracted retailers such as Bershka, Zara Médiacité (48,000 sq m) is located in the centre of Liège and is the currently being studied.
and WE Belgium. Retail properties in the city centre underwent extensive refurbishment in the past few city’s largest shopping centre, encompassing 124 shops divided
years, attracting a number of newcomers such as Primark, H&M, H&M Home and Sissy-Boy. over two floors, including mainstream brands such as Primark, H&M, Finally, the centrally located Espace Sain Michel (20,000 sq m)
Media Markt and Foot Locker. includes such retailers as H&M, C&A and WE fashion. Apart from the
Shopping centre Gent Zuid (11,200 sq m), the main shopping centre in Ghent, encompasses 36 shops. extension of Belle-Ile, three new retail units totalling 3,000 sq m will
It is fashion-focused with several international and national retailers such as H&M, LolaLiza and Cassis. Galeries Saint-Lambert (40,100 sq m) is the second largest shopping open on the site of a former covered marketplace on Rue Frédéric
In addition, two recent small shopping centres, Korenmarkt and Vrijdagmarkt, are located in town. centre in Liège and includes 40 shops representing a wide mix of Nyst, and a mixed redevelopment project including approximately
tenants. With over 30,000 sq m in 99 shops, Belle-Ile is the third 5,000 sq m retail is planned on Rue des Guillemins.
Rank 9 Rank 13
Hasselt Bruges
Hasselt, a city in the east of Belgium, is Benelux’s ninth most The three-storey TT shopping centre (20,500 sq m), located in the Bruges is Benelux’s thirteenth most attractive location for international and national
attractive location for international and national retailers. Retailer heart of the city, was recently renovated and is the largest shopping retailers. Bruges is the capital of the province of West Flanders and is known for its
demand is boosted by an attractive catchment area, the high volume centre in Hasselt, attracting high levels of footfall. It is fashion- stable retail environment with low retailer rotation. The city has 118,000 inhabitants,
of tourist traffic (the Netherlands and Germany are in close proximity focused and houses a number of international retailers, with key and the broader region 280,000.
to the city), connectivity with other large cities in Belgium such as tenants including Pimkie, JBC and Carrefour Express.
Antwerp and Leuven and as a result of the large amount of students Its historical centre is a well-preserved Unesco world heritage site and thrives thanks
in the city. In addition to a high number of fashion retailers, Hasselt The most prominent new scheme in Hasselt is the city centre retail to the constant flow of domestic and international tourists. Thanks to its rich historical
has many restaurants and bars and has dubbed itself the ‘capital of zone, which will extend towards the Kanaalkom, where a mixed-use heritage and its many canals, the city is called ‘the Venice of the North’. It has the
taste’. project with retail and leisure of approximately 21,700 sq m will be second highest number of tourist arrivals in the country after Brussels. The main
situated. This scheme is currently under construction and is planned retail high streets are two parallel streets, Zuidzandstraat (and its prolongation to
The local population is very fashion-minded. The city’s most to open in 2019. Steenstraat) and Noordzandstraat, which link the historic Grote Markt square in the
sought-after locations for international and national retailers heart of the city to the nearby Zand, another large square. Steenstraat houses both
are Hoogstraat, the central part of the north-south axis located national and international brands such as Galeria Inno, McDonald’s, Massimo Dutti,
between Demerstraat and Koning Albertstraat, and a secondary Jack & Jones and Desigual. Newcomers to Noordzandstraat include Juttu and Zadig
retail zone on the perpendicular streets such as Maastrichter- & Voltaire.
straat and Aldestraat. The main retailers in the city are the
recently opened Primark, located in the northern part of the retail The small Zilverpand shopping centre, which houses mainly premium brands, has
zone just off Demerstraat, and the Galeria Inno at the other end entrances on Noordzandstraat, Zuidzandstraat and Steenstraat. There is also a
on Koning Albertstraat. Retailers on Hoogstraat include Pull & 3,900 sq m retail zone spread over 13 shops in the mixed-use Groen Brugge project
Bear, & Other Stories, Mexx and Kiko Milano. at the Bruges train station.
| 18 | JLL Destination Retail Benelux 2016 | 19 |The Netherlands
Major Dutch cities are resilient retail locations
Amsterdam and Rotterdam, the two largest cities in the Netherlands, are also the country’s top retail
destinations. Although both cities differ in market size, opportunities and barriers for retailer expansion,
they are the entrance point to the country for many international brands. Amsterdam has the highest
presence of international retailers, covering 85% of the surveyed retail stock in the inner city, followed
by Rotterdam with 75% coverage. While small and mid-sized cities in the Netherlands will continue to
play a more pragmatic role by providing everyday shopping, shopping in the country’s largest cities will
be more of an experience and leisure activity. Flagship stores of both national and international retailers
are located in Amsterdam, such as Ted Baker, Hugo Boss, Tommy Hilfiger and Michael Kors. In addition,
Canadian department store Hudson’s Bay Company is settling in the Dutch market, opening stores in
large retail cities in the Netherlands. The most expansive retailer in our sample is the Swedish fashion
retailer H&M. H&M now has 100% coverage across the key retail cities in the Netherlands, with recent
expansion in both Amsterdam and The Hague.
Apart from the top two cities, the prime high streets in other large cities such as Utrecht, The Hague,
Eindhoven and Maastricht also attract many national and international retailers thanks to various
drivers including market size, the presence of new projects and, in various degrees, tourism. In terms of
international retailer presence, however, The Hague completes the top three thanks to a broad consumer
base and tourism.
In the past few years, various retailers in the Netherlands went into administration. Because of this, a lot
of new (international) retailers, such as Hudson’s Bay Company, Lola Liza, TK Maxx, Søstrene Grene
and Primark, have had the opportunity to establish stores in prime locations in city centres.
Mainly European and North American retailers present
An increasing number of international retailers are finding their way to the Netherlands, with the US, Italy
and the UK the dominant countries of origin of retail brands present in Dutch high streets. In addition, a
growing number of Asian originating retailers are focussing on Benelux market such as Owndays, Liu Jo
and Uniqlo. Domestic brands are also largely present within the Dutch retail market. Retail brands such
as Blokker, Hema and Rituals are widely present in the Netherlands, with new domestic retailers such as
We Are Labels, People’s Avenue and Costes also entering the mix.
The rise of online retail
In addition to falling turnover levels, the Dutch retail market is structurally impacted by the strong growth of
online sales. Online sales rose from € 12.7 billion in 2013 up to € 13.7 billion in 2014, which is a growth of
almost 8%. Online Retailing nowadays is a structural part of the Dutch Retail market, making the Netherlands’
online market one of Europe’s most mature. This is indeed evidenced by the annual online turnover
which came to approximately €16.26 billion in 2015. While online sales experienced multiple years of
double digit growth figures in the last decade, the most recent growth figures indeed point in the direction
of a maturing retail segment which accounts for a significant share of total retail sales in the country.
| 20 | JLL Destination Retail Benelux 2016 | 21 |Rank 5
Rotterdam
Rotterdam, famous for its large port and modern architecture, Outside the city centre of Rotterdam is the large Alexandrium
is Benelux’s fifth most attractive location for international Shopping Centre (also known as Alexandrium I), which has a lot
retailers. The city benefits from a broad consumer base and of national and international retailers, attracts high footfall and
strong retailer demand. The city centre has a mass-market and is the most profitable shopping centre in the greater Rotterdam
premium retailer focus, which is reflected in the expansion of area.
Zara and H&M on Lijnbaan and discount store Primark that is
moving to the new Forum Rotterdam which will open its doors Directly adjacent are Alexandrium Megastores (also known as
in 2018. The city centre boasts a large amount of retail floor Alexandrium II) and Alexandrium Woonmall (also known as
space, with a large amount of unit shops and several shopping Alexandrium III), which sell bulk goods. Vacancies are low and
centres such as Markthal, Beursgallery and Beurstraverse. the three Alexandrium shopping centres attract a combined 10
million visitors each year. In addition, shopping centre Zuidplein
The city’s most sought-after locations for international is located it the south of Rotterdam and also attract footfall.
and national retailers have traditionally been Lijnbaan,
Beurstraverse and the adjacent Beursplein. However, as The most prominent new mixed-use scheme in Rotterdam
a result of the future opening of the developing of Forum is the Markthal, a new indoor marketplace that attracts a
Rotterdam, at the Binnenwegplein, the area has experienced lot of domestic and international customers, encompasses
increased footfall and has supplanted Lijnbaan as the city’s approximately 9,900 sq m of retail- and leisure space, and
most popular retail area. Three other streets, Kruiskade, 228 apartments. In addition, the redevelopment of the central
Hoogstraat and Meent, are significant additions to the train station in Rotterdam, which opened in March 2014,
Rotterdam retail market and house upmarket brands such as has contributed to the growth in the number of domestic and
Oger, Michael Kors and Marc Cain. international shoppers retail customers.
Rank 1
Amsterdam
Amsterdam is the capital of the Netherlands and is ranked rented a unit shop on Leidsestraat and Kiehl’s has opened a
as Benelux’s most attractive location for both national and flagship store on Kalverstraat.
international retailers. The capital benefits from a strong
international customer base, with a considerable proportion The Kalvertoren on Kalverstraat attracts high footfall and is
of retail sales driven by tourists, as well as its size, and the Amsterdam’s most central shopping centre. Sold in 2014 the
transparency of the retail market. The total retail stock in shopping centre will undergo a significant refurbishment by its
Amsterdam amounts to approximately 1.1 million sq m (with an new owner Kroonenberg Groep. In addition, H&M openend a
average vacancy rate of 6%) and attracts almost €3 billion in new flagship on Rokin/Kalverstraat, next to its existing flagship
spend every year. In particular, mainstream and luxury retailers store on Dam square. It marks the second flagship location in
are attracted to Amsterdam thanks to its renowned reputation Amsterdam.
as the largest fashion centre in the Netherlands. This demand,
together with a lack of prime retail supply, is putting upward Two notable retail pipeline developments include the
pressure on rents across the city centre. transformation of project ‘Nowadays’ on Damrak into an
attractive mixed-use destination including the recently
Although there are a significant number of peripheral shopping completed Zara, JD Sports and Starbucks and the building
centres and unit shops available, the inner city of Amsterdam which houses C&A and Primark up for completion at the
remains the prime retail destination. The most sought-after high end of 2016. Furthermore, the transformation of Rokin 21
street locations in Amsterdam are Kalverstraat, Heiligeweg, and 49 as part of the Rokin District, this project involves the
Leidsestraat, Nieuwendijk and Rokin, all of which benefit from redevelopment of the former Fortis headquarters on Rokin by
high footfall. In addition, the Negen Straatjes (‘Nine Streets’) Ivy Group, a property investor and developer, into a mix of unit
area is known for its boutique shopping area. P.C. Hooftstraat shops, housing and restaurants. Large Canadian department
is the prime street for luxury brands in the city. Flagship stores store Hudson’s Bay Company will be one of the tenants.
set the tone in the Amsterdam retail market. Ted Baker has
| 22 | JLL Destination Retail Benelux 2016 | 23 |Rank 6 Rank 10
The Hague Maastricht
The Hague, the seat of the Dutch government, is Benelux’s sixth Maastricht, a popular shopping city in the south of the Netherlands that attracts more than 3
most attractive location for international and national retailers. The million tourists on a yearly basis, is Benelux’s tenth most attractive location for both international
city benefits from a broad consumer base, the large international and national retailers.
expatriate community and is a popular destination for tourists, thanks Retailer demand is boosted by an attractive catchment area and a high volume of tourist traffic
in part to the close proximity of the sea. owing to the close proximity of Belgium and Germany. Although the city has a significant number
of shopping centres, Maastricht’s inner centre unit shops remain the prime retail destination.
The main shopping area is located in the city centre of The Hague, A major reason for this is that many of these shops are located within the city centre’s vast
centred around Spuistraat and Grote Marktstraat, which benefit from collection of historic 17th- and 18th-century buildings. Indeed, because of its heritage value, the
high footfall owing to the presence of many international retailers whole of Maastricht city centre has been declared by the Dutch government as a protected area.
such as Zara, Kiko Milano and River Island. There has been an
expansion in both the mass-market and premium segment in the The city’s most sought-after location for both international and national retailers is Grote Staat,
inner city whilst luxury brands prefer the fashionable shopping district which forms a long shopping strip with Kleine Staat and Maastrichter Brugstraat. The Stokstraat
around Noordeinde and Hoogstraat. quarter is the prime area for luxury brands in the city.
The most prominent new scheme is Haagse Passage (10,500 sq m), better pedestrian flow in the city centre. In addition, the redevelopment Mosae Forum (18,500 sq m), at the end of Muntstraat is the city’s largest shopping centre
which opened in September 2014 and encompasses 57 shops. This of The Hague’s central train station, which was completed in January encompassing 33 shops. It attracts high footfall and is the most profitable shopping centre in
update to the oldest existing shopping centre in the Netherlands, extends 2016, has contributed to the growth in the number of domestic and Maastricht. Adjacent to Spilstraat is shopping centre Entre Deux (12,500 sq m), which has a
from the other side of Spuistraat towards Grote Marktstraat. Together international retail customers. The redeveloped central train station has focus on fashion, and it features several international and national retailers such as Zara and
with the arrival of Primark and Decathlon in prime pitches in the centre, enhanced the pedestrian flow towards the city centre, contributing to Hollister.
this has led to a new stream of footfall for Grote Marktstraat and a the retailer demand in The Hague.
Rank 8 Rank 11
Utrecht Eindhoven
Benelux’s eighth most attractive location for international and national retailers is Utrecht. With 223,000 inhabitants, Eindhoven is the fifth most populous city 76 shops including mainstream brands such as H&M and Costes and
Retailer demand has been boosted by a positive economic growth outlook stemming from the in the Netherlands and ranks as the 11th most attractive location for premium brands such as Supertrash and Hugo Boss.
redevelopment of the area around the city’s central train station and a high volume of tourist traffic. international and national retailers in Benelux. The city is part of the
Brainport region and is known as a technology and knowledge hub. Three notable retail projects include the 2013 opening of Primark in
The most important shopping streets of Utrecht are located in historic city centre. Lange Fuelled by improving economic conditions, retailer demand across a newly renovated building on Hermanus Boexstraat, which has had
Elisabethstraat, Steenweg and Oudegracht have traditionally been the most sought-after the wider city continues to strengthen. International retailers are a positive impact on the street’s footfall, the 2010 opening of The Blob,
locations by mainstream retailers, whilst premium brands such as Suitsupply are located around increasingly interested in Eindhoven, and national retailers continue to a unique development that counts Sissy-Boy as a tenant and the
Oudkerkhof. play an important role in the city’s retail life, contributing up to 33% of ongoing renewal of shopping centre Heuvel.
the total retail stock in Eindhoven.
Various retail brands such as Flying Tiger Copenhagen, Zara and Superdry have continued to
expand their store networks by opening stores in Utrecht, and the ongoing refurbishment of the Eindhoven’s main shopping area is centred around Demer and
Hoog Catharijne shopping centre (105,000 sq m), which is situated directly next to the central Rechtestraat, where various mainstream and premium national and
train station in the centre of the city, offers attractive opportunities for Utrecht as a retail city. international brands are clustered. Hooghuisstraat is another significant
shopping street, housing luxury brands such as Jaguar Fashion and
The most prominent new urban regeneration project in Utrecht is around the central train station, Alberto Bellini alongside premium shops such as Vielgut.
including retail developments Vredenburg and Hoog Catharijne. This area is being developed
into a mixed-use leisure, office and retail destination. In addition, the train station itself has a The four-storey Piazza (31,000 sq m), located at the beginning
direct passage leading to the Hoog Catharijne shopping centre. Following the redevelopment, of Demer, is the city’s most prominent shopping centre, encompassing
the historic centre and the station area will become a coherent whole, which will create a better 36 shops spanning mainstream brands such as Zara, Decathlon and
dynamic for the city. Esprit. The newly renovated Heuvel, located near Markt and Vestdijk,
is Eindhoven’s largest shopping centre (35,000 sq m), encompassing
| 24 | JLL Destination Retail Benelux 2016 | 25 |Grand-Rue,
Luxembourg City
Luxembourg
Rank 4
Luxembourg City
Luxembourg City is Benelux’s fourth most attractive location The main shopping zone in the city centre is along Grand-
for international and national retailers. The city benefits Rue and its adjoining streets, including Avenue de la Porte-
from a broad consumer base and strong retailer demand. Neuve, Rue des Capucins and Place d’Armes. A large variety
Luxembourg City has a central location in the country and is of mainstream and premium brands are located in the area,
relatively dense: the city contains approximately 20% of the with drivers such as H&M, Zara, Massimo Dutti, Jack & Jones
country’s inhabitants on 2% of its territory. More than two-thirds and Tommy Hilfiger. The city centre also houses a luxury
of the city’s inhabitants are foreign, mainly originating from cluster on Rue Philippe II, where haute couture houses such as
other countries of the European Union. This is a consequence Cartier, Chanel and newcomer Dior are located, and which will
of the presence of a number of European institutions, including extend in the future towards the soon-to-open Royal-Hamilius
the Court of Justice of the European Union, the European shopping centre.
Court of Auditors, the European Investment bank and several
departments of the European Commission and the secretariat The prime retail zone of the city is located within walking distance
of the European Parliament. of the old city centre and close to office areas. This prime
catchment area of the country, and the wider region, includes
Luxembourg has, by far, the highest gross domestic product a small luxury cluster that may extend in the future towards the
per capita (in purchasing power standards) in the European Royal-Hamilius project. This is part of the international expansion
Union, as well as the highest actual individual consumption. programme of the Hudson‘s Bay Company, a Canadian retail
Luxembourg’s high spending power makes it attractive for business group that recently acquired Galeria Inno. Another
luxury and premium retailers. Luxembourg City is located prime retail zone near the central train station boasts high
centrally in the country, and its prime retail zones are easily footfall and is where many international mainstream brands
accessible by car and by public transport. Tourism is another can be found. The central commercial zone will experience a
driver of retail, as Luxembourg City’s old quarters and wave of expansion beginning in the second half of 2018 with
fortifications are classified as an Unesco world heritage site. the opening of two large shopping centres, the first of which will
be located within the Royal-Hamilius development. The second
The Luxembourg City property market has relatively low notable retail development set to open at the second quarter of
transparency in comparison with other European cities, but its 2019 is the Cloche d’Or shopping centre (75,000 sq m) in the
location, its infrastructure, its heritage sites, its spending power city’s south, which will offer 120 retail units together with an
and the presence of many international retailers are stable Auchan hypermarket.
market drivers.
| 26 | JLL Destination Retail Benelux 2016 | 27 |Market statistics at a glance
2013), CBS, Statbel, FOD Economie, Statec Luxembourg. Notes: Retail Spending is based upon 30 mins drivetime around the main high streets and is a total of food and beverages & fashion (clothing, footwear, accessories) – Source MBR, ArrcGIS.
*Based upon 30 minute driving time, Ranking municipalities except for Brussels, this is Brussels Capital Region. Sources: JLL (2016), Oxford Economics (2016), ArcGIS Esri Maps/MBR 2016, Eurostat 2016 (population, purchasing power, retail spending – figures
Luxembourg
Luxembourg
Brussels
Brussels Antwerp
Antwerp GhentGhent Liège Liège Hasselt
Hasselt Bruges
Bruges Amsterdam
Amsterdam Rotterdam
Rotterdam Utrecht
Utrecht The Hague
The Hague Eindhoven
Eindhoven Maastricht
Maastricht
City City
Population
Population
per cityper
2016
city 2016
(No. inhabitants)
(No. inhabitants) 1.175,000
1.175,000 517,040
517,040 257,030
257,030 196,970
196,970 76,69076,690 118,050
118,050 821,800
821,800 623,700
623,700 334,200
334,200 515,000
515,000 223,300
223,300 122,400
122,400 115,230
115,230
Population
Population
(within(within
30 minutes
30 minutes
drivetime*)
drivetime*) 2.1 million
2.1 million 1.6 million
1.6 million 1.08 million
1.08 million 1.14 million
1.14 million 780,000
780,000 522,850
522,850 2.16 million
2.16 million 2.6 million
2.6 million 1.9 million
1.9 million 2.23 million
2.23 million 1.2 million
1.2 million 582,000
582,000 554,000
554,000
GDP per
GDPcapita
per capita
(EU index
(EU =
index
100)= 100) 117 117 117 117 117 117 117 117 117 117 117 117 129 129 129 129 129 129 129 129 129 129 129 129 271 271
Purchasing
Purchasing
PowerPower
(per capita)
(per capita) € 20,420
€ 20,420 € 21,110
€ 21,110 € 21,600
€ 21,600 € 18,560
€ 18,560 € 20,090
€ 20,090 € 21,120
€ 21,120 € 30,800
€ 30,800 € 34,600
€ 34,600 € 33,900
€ 33,900 € 31,600
€ 31,600 € 31,500
€ 31,500 € 30,400
€ 30,400 € 28,390
€ 28,390
Retail Retail
Spending
Spending
per capita
per capita
(food &(food
fashion)
& fashion) € 4,550
€ 4,550 € 4,540
€ 4,540 € 4,590
€ 4,590 € 4,220
€ 4,220 € 4,310
€ 4,310 € 4,530
€ 4,530 € 4,100
€ 4,100 € 3,840
€ 3,840 € 4,030
€ 4,030 € 3,910
€ 3,910 € 3,830
€ 3,830 € 3,800
€ 3,800 € 6,160
€ 6,160
OPEN OPEN
International
International
retailerretailer
presence
presence
(presence
(presence
of of
200 selected
200 selected retailers) 71% 71%
retailers) 68% 68% 28% 28% 27% 27% 31% 31% 26% 26% 78% 78% 40% 40% 31% 31% 35% 35% 26% 26% 28% 28% 45% 45%
Prime Prime
rent rent
(€/sq m/year)
(€/sq m/year) € 2,000
€ 2,000 € 2,000
€ 2,000 € 1,450
€ 1,450 € 1,200
€ 1,200 € 1,100
€ 1,100 € 1,200
€ 1,200 € 2,950
€ 2,950 € 1.830
€ 1.830 € 1.680
€ 1.680 € 1,400
€ 1,400 € 1,400
€ 1,400 € 1,650
€ 1,650 € 1,560
€ 1,560
Tourism Tourism
(arrival(arrival
# persons)
# persons)3.35 million
3.35 million 1.08 million
1.08 million 566,300
566,300 209,000
209,000 121,550
121,550 1.11 million
1.11 million 4.5 million
4.5 million 1.7 million
1.7 million 3 million
3 million 885,900
885,900 300,000
300,000 3 million
3 million 647,580
647,580
| 28 | JLL Destination Retail Benelux 2016 | 29 |Glass façade in front,
P.C. Hooftstraat Amsterdam
4. Luxury
Trends in the Benelux luxury market Amsterdam ranks highest …
The retail market for luxury goods is maturing and stabilising in As in the city attractiveness rankings for international and national
Benelux. The luxury market has been relatively resilient to economic retailers, Amsterdam, Brussels and Antwerp also lead the city
crises, and the number of consumers has increased by 13% since attractiveness rankings for luxury brands. These markets represent
2013. Despite the global economic turmoil and geopolitical issues Benelux’s most mature luxury markets, each with a critical mass
worldwide, there has been continued strong demand by wealthy of international luxury retailers which attract both domestic and
consumers for luxury goods, with growth in spending for high- international customers.
end goods encompassing jewellery and other accessories, cars,
clothing, perfumes and cosmetics. Large international luxury brands keep investing in the Netherlands,
with flagship stores from brands such as Michael Kors and Chanel
Luxury markets in the top four cities Amsterdam, Brussels, Antwerp targeting not just domestic consumers but also the rising flow of
and Luxembourg City can expect continuing strong growth led by affluent tourists visiting the country.
demand for luxury shopping, with a good influx of European, US
and Asian customers, the latter two benefitting from a weak euro. As global demand for luxury goods has grown, and as the luxury
Tourism growth is having a growing impact on retailer expansion retail market in the Netherlands has matured, an increasing number
strategies, with luxury brands using tourism statistics as a guide on of national and international luxury retailers have expanded their
where to establish new stores. Combined tourist arrivals in the three Dutch operations. Reflecting the fact that luxury retailers tend to
Benelux capitals amounted to nearly 11 million in 2015. cluster together, in recent years, retailer demand in the Netherlands
has increased in specific locations, notably on P.C. Hooftstraat
Unlike mainstream retailers, who regularly penetrate beyond the and Bijenkorf in Amsterdam, where nearly all international luxury
core markets, luxury retailers generally take a conservative approach retailers entering the Dutch market open their first store.
and cluster within luxury areas or streets in larger conurbations with
high tourism flows. To reach customers outside these clusters, luxury The street, which is the city’s best-known luxury zone, today includes
retailers mainly focus on their wholesale business. This new focus on luxury brands such as Prada, Louis Vuitton, Gucci, Chanel, Dolce
city-level strategies, rather than the traditional regional-level strategies, & Gabbana, Dior, Bulgari, Tiffany & Co, Cartier, IWC Schaffhausen,
provides cities with the chance to grow their luxury market segments. Jimmy Choo and Longchamp. Luxury brands that do not yet have a
presence on P.C. Hooftstraat are the primary drivers of demand for
The growth of the luxury retail market in Benelux is also reflected retail space on the street.
in the number of flagship store openings in the last 24 months.
Larger and more established retailers often position several of their In Brussels, luxury brands tend to concentrate in the Haut de la
retail stores as showrooms or brand pavilions, and locate them Ville, the so-called uptown retail zone that consists of Chaussée
in prime locations with high occupancy costs. This flagship store d’Ixelles, Avenue Louise, Avenue de la Toison d’Or and Boulevard
strategy places less importance on turnover and more importance de Waterloo, the latter of which has become the most exclusive
on providing a unique consumer experience and increasing brand luxury cluster in Brussels. At the end of the 19th century, this large
awareness. Examples of luxury flagship stores in Benelux include boulevard was the most distinguished place to go for a stroll in
Montblanc, Chanel and Belgian retailer Natan on P.C. Hooftstraat Brussels, and today it is a pleasant shopping and residential area
in Amsterdam, the upcoming Dolce & Gabbana and Fabiana Filippi that includes a luxury hotel and is close to fashionable bars and
flagship stores on Boulevard de Waterloo in Brussels, Chanel restaurants.
and Montblanc on Schuttershofstraat in Antwerp, and the recently
opened Dior and Christian Louboutin flagship stores on Rue Philippe Up and down Boulevard de Waterloo, flagship stores of renowned
II in Luxembourg City. fashion houses can be found, including Chanel, Dior, Gucci, Giorgio
Armani and Versace. In addition, many luxury jewellers such as
Cartier, Bulgari, La Maison du Diamant and Wolfers are located here
alongside high-end brands such as Louis Vuitton, Hermès, Jimmy
Choo and Sergio Rossi.
| 30 | JLL Destination Retail Benelux 2016 | 31 |A growing luxury market in Antwerp
The luxury market in Antwerp is concentrated on and around Schuttershofstraat
and its prolongation, Hopland, which run parallel to Meir, the city’s prime
high street. The luxury streets are within easy walking distance from Meir
via Huidevettersstraat, which also houses a number of luxury retailers such
as Natan and Gucci at its end. Schuttershofstraat is located in the Quartier
Latin, a lively and classy neighbourhood with two large theatres, the Bourla and
the Stadsschouwburg, many bars and restaurants, and also antiques shops.
Hopland and Schuttershofstraat offer a long succession of luxury boutiques Key Luxury retailers
such as BCBG Max Azria, Chanel, Delvaux, Hermès, Jimmy Choo, Karl
Pauw 1
Lagerfeld, Moncler, Philipp Plein, Paul Smith and Emporio Armani. 1
Caroline Biss 2=
Max Mara 2
2=
Liu-Jo 33
Opportunities and challenges within the luxury market Longchamp 4= 4
La Perla 4=
5
While the global luxury market weathered the recession well, it is certainly Valentino 5
not immune to the current economic conditions. The recent slowdown in the 6
Louis Vuitton 6=
Chinese economy could have an impact on international tourism flows and Hermès 6=7
luxury sales in Benelux. Also, global political turmoil currently negatively affects Dolce & Gabbana 6=8
inbound tourism to Europe and Benelux, although longer term prospects are for Gucci 6=
9
a positive impact from tourism on the luxury goods market. Emporio Armani 6=
Mont Blanc 10
7=
Cartier 7=
In addition, e-commerce is another challenge for luxury retailers. Luxury
BCBG Max Azria 7=
retailers are limited in offering a premium online shopping experience that can
Jimmy Choo 7=
mimic the personalised, hands-on in-store experience that defines the luxury Chanel 7=
segment. However, in order to keep up with the desires of consumers, luxury Christian Dior 7=
retailers have to figure out how to build a premium online experience in addition Chopard 7=
to focusing on their physical stores. Burberry 7=
Ermenegildo Zegna 7=
Karl Lagerfeld 7=
Pauw tops the rankings Tod's 8=
Salvatore Ferragamo 8=
Due to the relatively mature and stable nature of the Benelux luxury retail Prada 8=
Bulgari 8=
market, luxury brands generally focus on careful company-owned strategies
Tiffany & Co. 8=
that protect and enhance the brand. In our city sample, Pauw, with 14 shops
Loewe 8=
only in the Netherlands, has the highest presence in the region and is clearly
Pomellato 8=
number one in the rankings. Giorgio Armani 8=
Bally 9=
“Italian luxury brands also have dominant presence in Benelux, with Max Mara Van Cleef & Arpels 9=
ranking high in our city sample, followed by Liu Jo and La Perla. Expensive Miu Miu 9=
luxury retailers include up-and-coming brands such as Philipp Plein, BCBG Max Loro Piana 9=
Azria, Loro Piana and Pomellato, while established brands such as Louis Vuitton,
SOURCE: JLL, 2016
Christian Louboutin 9=
Chanel, Jimmy Choo, Tiffany & Co Longchamp and Rolex have been expanding Dries van Noten 9= % out of selected luxury brands
their Benelux presence over the last few years. Whilst Missoni is not present in Rolex 10
the 13 retail cities, the brand is present in shops-in-shops and multi-brand stores, 0% 2% 4% 6% 8% 10% 12%
which do not figure into this report.
| 32 | JLL Destination Retail Benelux 2016 | 33 |Markthal,
Rotterdam
Give me what I want, what I really, really want
5. Food and Beverage The major change in consumer behaviour in foodservice in the
last decade is that now, diners know exactly what they want.
They know more about food, they cook, they bake, they indulge
The changing foodservice landscape in a range of cuisines and they travel. They are better informed
about their choices and options and, as a result, they are more
Throughout Europe, we are seeing changes in consumer behaviour that are having a very strong impact discerning. This has led to higher standards, better operations
on the type of foodservice offered. The trend we see can largely be separated into two categories: one and broader choice in the foodservice industry. It has also led
being the increasing importance of ‘time’ for consumers because of our changed behaviour in which we to restaurants focusing on small product groups, or even single
have lesser time for leisure purposes and thus value quality of services offered more than the quantity we products or concepts like burgers, wraps, barbecue or chicken.
experience. The other being the perceived value of places which give us the opportunity to ‘unwind’ and This approach reflects the growing desire among restaurants
‘relax’. As a result, one of the main beneficiaries of this is the foodservice industry. For the first category, to do something well and be famous for it in order to stand out
we use foodservice providers on the way to work, at the roadside, at railway stations and airports, on the against a broader choice of restaurants.
street, around and in our offices of even at home through the increasing availability of quality food through
delivery companies such as Deliveroo or Foodora. On the other hand, when meeting friends, family or As we spend the precious time we have, eating out is now
loved ones for a social gathering, we increasingly value the area in which we can unwind and relax for so much more about experience, and is to be savoured and
eating and drinking. The latter can either be a visit to a destination focusing on food & beverage or a visit enjoyed. Creating foodservice environments that capture and
to a major retail city that offers food & beverage as a complimentary service to its retail offering. create an experience is key. Developers and landlords can no
longer just create spaces; they need to be in the business of
The demand for foodservice space cannot just be satisfied by square metres. Food places need to be place making, combining great space, great food and great
destinations of their own and provide an experience that goes beyond pure retailing to compete for our atmosphere to ensure that the right environment is created
time and our emotional connection. Simply put, guests expect great places in which to eat, and this has where operators can be successful. This might be in traditional
meant a huge change in the quality of fit-out, delivery and excitement around food. One of the main shopping centres like the City 2 Shopping Mall in Brussels or in
impacts of this new-found consumer expectation on the physical environment is the growth, both in the the new breed of shopping and leisure destinations like Docks
quantity and importance, of the food and beverage sector in Benelux. Bruxsel.
The space dedicated to food and beverage is increasing in volume, quality and importance each year. Operators also have to think carefully about not only how they
Over the last 10 years, shopping centres have seen a 100% growth in space occupied by food and can create an experience for their guests, but how guests can
beverage operators, and this is set to grow further across the next 5 to 10 years by an expected further share their location, food, drink and overall experience. The
50% in Benelux. This is demonstrated by the retail developments in Brussels, Amsterdam, Rotterdam foodservice market in Benelux region has a strong social
and Luxembourg City that include significant food components. element to it, with a good mix of small independent operators
creating environments for guests to enjoy.
Historically, the growth in foodservice space in shopping centres across Europe, and especially in the
Benelux countries, has been slower than in individual markets like the UK, Spain and Germany. There
was already a very strong food culture outside of the shopping centre industry in Europe and many
cities and towns have strong foodservice provision. In European shopping centres, the amount of space
typically dedicated to foodservice has grown from 5% 10 years ago, to 10%–15% today, but what is really
interesting is the change in quality and range that has also occurred. Shopping centres across Benelux
have widened the range of choices and price points while improving and upgrading quality, as they have
embraced their changing role as a food destination, and they understand that they cannot simply provide
basic fast food.
This, in turn, is making operators improve what they do, with exciting new brands and formats appearing.
The divide between high street and shopping centre foodservice is rapidly closing, as both formats realise
they need each other for successful business in the future. Some of the major trends impacting the
Benelux food and beverage industry are outlined in the next paragraphs, and as ever these evolve. Each
year our Foodservice Consulting team publish their new Trends, which helps guiding clients, operators
and tenants in the right direction as food and drink become more and more a part of our everyday lives.
| 34 | JLL Destination Retail Benelux 2016 | 35 |You can also read
