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EconomyRetailers

London leads European retail market for third consecutive year

Central London remains the retail market leader in Europe according to a report from global real estate advisors, Colliers International.

The report said its ongoing success is due to greater numbers of Britons and tourists spending more in the capital than any other market.

The figures showed that London had more store openings and a double -digit rental growth over the course of 2016.

Paul Souber, Colliers’ co-head of EMEA Retail, said: “2016 was the third year of consecutive growth in consumer and retail spending in Europe, driven by low inflation, an increase in employment levels and wages due to people having higher disposable income.

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Retailers are still focusing on cost reduction, turnover is still under pressure and it is expected that short-term and more flexible agreements (for example leases based on turnover rent) will become more popular.”

Souber added: “Looking at London specifically, significant increases in occupational costs in 2017, as a result of the rating revaluation and an anticipated rise in inflation, are likely to curb any further rental growth over the coming year.”

Overall, UK retail growth was 5.5% with Dublin having one of the highest growth margins in Europe.

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