News • 22.06.2018

Stationary retail grows by 2.1 percent in 2018

GfK study on European retail

Shopping Center; Copyright: panthermedia.net/sergeypeterman...
Source: panthermedia.net/sergeypeterman

GfK anticipates a 2018 nominal turnover growth of +2.1 percent for stationary retail in the 28 EU member states. But trends within the individual countries under review vary widely. While real-value growth is expected for countries such as France, Spain and Hungary, countries with low growth rates will come out less favorably due to slightly rising inflation. These are some of the insights from GfK’s newly published free study on European retail in 2018.

The European economy faces major changes due to Brexit in addition to various economic and political challenges. Uncertainty about future trade conditions with the USA is raising concerns about the potential impact on European exports. As in previous years, GfK’s Geomarketing solution area explored the current and anticipated retail situation in Europe through a comprehensive analysis of key retail indicators. Featuring trend analyses for 32 European countries and a turnover prognosis for 2018, GfK’s free, downloadable study “European Retail in 2018” provides important orientation for retailers, investors and project developers.

“All European countries were able to benefit from economic growth in 2017,” explains Dr. Johannes Schamel, study lead and GfK retail expert. “On the whole, we anticipate continued growth in 2018 for Europe’s brick-and-mortar retail, although turnover growth and price increases will cancel each other out in some countries.”

Overview of key insights

Purchasing power: In 2017, each citizen of the EU-28 countries had an average purchasing power of €16,436. This equates to a nominal increase of 1.9 percent compared to the previous year. Among the EU countries, only Great Britain (-1.5 percent) underwent a purchasing power decline, which is partly a result of the devaluation of the British pound. Great Britain aside, the momentum from previous years continued, with above-average growth rates particularly in central and eastern European countries.

Turnover prognosis for 2018: The past year’s growth in demand was able to compensate for stationary retail’s market share losses to online trade. For 2018, GfK expects nominal turnover growth of +2.1 percent in the 28 EU countries. But this is just slightly below the forecasted inflation rate, meaning that only modest real-value growth is anticipated for retail turnover in Europe. Thanks to continuing income increases, the top-ranking eastern European countries of the previous years once again lead the pack in 2018. 

Inflation: With an inflation rate of 1.7 percent in 2017, the EU-28 nations once again neared the European Central Bank’s (ECB) proclaimed +2.0 percent target for consumer prices. Consumers had to reach deeper into their pockets for the same goods in many eastern European countries, which had struggled with deflation in the preceding years. Because the ECB has announced that it will not touch base interest rates until 2019, GfK anticipates a retail trend in 2018 similar to that of last year. An EU-wide price increase of 1.9 percent is expected. It is important to note that this prediction assumes no further escalation of the trade dispute between the EU and the United States.

Sales area provision: In 2017, there was an increase in the absolute retail space in the European countries under review. The only exception were the Netherlands at -0.4 percent. But a different picture emerges at the per capita level: In half of the studied countries, per capita sales area remained constant or even declined. Per capita values for this indicator range widely across Europe.

Sales area productivity: As in the case of per capita sales provision, sales area productivity varies across Europe. Belgium also experienced declining sales area productivity in 2017, although the drop was relatively minor at just -1.1 percent. In Hungary, restrictive planning regulations along with protectionist tendencies slowed the expansion of international retailers. As a result, there was limited development of new large-scale retail spaces. Strong growth in retail turnover fueled sales area productivity, which grew by +6.9 percent to €2,997/m² over the past year. Dynamic growth in sales area productivity counterbalanced to some degree rising rental costs in tight commercial real estate markets in other eastern European countries as well.

Source: GfK

related articles:

popular articles:

Thumbnail-Photo: Worry-free legal compliance: tips for newcomers to online retail...
18.02.2019   #online trading #e-commerce

Worry-free legal compliance: tips for newcomers to online retail

Interview with Johannes Drijkoningen, Händlerbund e.V. (German online trade association)

It is imperative for all online retailers to be legally compliant. We talked to Johannes Drijkoningen, Association Advisor at the Händlerbund e.V. about support, relevant information and unfounded fear of digitization. ...

Thumbnail-Photo: Accurate and efficient: Artificial Intelligence for hiring and...
12.12.2018   #personnel management #artificial intelligence

Accurate and efficient: Artificial Intelligence for hiring and recruiting employees

"Other channels are no longer working": Interview with Melikshah Ünver from Taledo

Skilled labor shortage, high turnover rates and the challenges of digitization: recruiting and hiring top-quality employees is especially difficult in the retail sector, particularly when companies must shake off a dull and dusty image. This is when ...

Thumbnail-Photo: 3D shop and customer analysis with artificial intelligence...
04.02.2019   #customer analysis #Trade fair special EuroCIS 2019

3D shop and customer analysis with artificial intelligence

Product innovation at EuroCIS: Intenta S1000 people counter

Intenta presents the new Intenta S1000 people counter at this year’s EuroCIS – a new 3D vision sensor for fully automatic intelligent scene interpretations. This retail specialist tracks precise data for customer statistics thus giving ...

Thumbnail-Photo: Welcome to the tenth edition of the RetailShow Exhibition...
22.03.2019   #e-commerce #cashpoints, cash register, cash desk

Welcome to the tenth edition of the RetailShow Exhibition

Exhibition of Equipment, Technology and Services for Retail

We kindly invite you to participate in the biggest, annual, B2B retail event in Poland: Exhibition of Equipment, Technology and Services for Retail – RetailShow. The closest, tenth edition will be held on 20-21 November 2019 in Warsaw, ...

Thumbnail-Photo: SES-imagotag VUSION Pulse Software
30.01.2019   #data warehouse management #software management

SES-imagotag VUSION Pulse Software

Improve Profitability and Reduce Waste

For 25 years, SES-imagotag has been the trusted partner of retailers for digital technology in stores. SES-imagotag, the worldwide leader in smart digital labels and pricing automation, develops a comprehensive IoT and digital platform that delivers ...

Thumbnail-Photo: EuroCIS 2019: from the trade fair to the points of sale...
27.11.2018   #digitization #POS Solutions

EuroCIS 2019: from the trade fair to the points of sale

Analogue and digital elements merge in physical retail

Many digital tools presented at EuroCIS over the past few years, have become indispensable to retail today. Which in-store media asserted themselves and what is so special about them? And, beyond this, which tools and technologies have great ...

Thumbnail-Photo: “Carbon” – The future of payment transactions by InterCard...
18.03.2019   #payment systems #Trade fair special EuroCIS 2019

“Carbon” – The future of payment transactions by InterCard

Customer-oriented processes beyond standard market solutions

Thumbnail-Photo: Self-service sells
08.02.2019   #touch screens #kiosk terminals

Self-service sells

Kiosks represent an important part of retail’s future

Self-service is growing exponentially in all areas of retail, hotels, restaurants, healthcare and banking environments. Customers increasingly expect self-service technology options and traditional brick-and-mortar stores are no exception. Retailers ...

Thumbnail-Photo: retail trends: focus Retail Technology
12.02.2019   #mobile shopping #digital marketing

retail trends: focus "Retail Technology"

Omnichannel commerce, mobile shopping, seamless checkout – technology trends 2019

Would you like to find out about the latest retail technologies and hold something tangible in your hands at the same time?We'll be happy to send you a copy of our print edition retail trends: with the focus on "Retail Technology" ...

Thumbnail-Photo: Toshiba spotlights new innovations for empowering retail...
21.01.2019   #mobile payment #payment systems

Toshiba spotlights new innovations for empowering retail

Showcasing its latest solutions, services and innovative concepts at hall 9 booth B42

Visitors to EuroCIS 2019 will learn at Toshiba's booth how every retailer can design his checkout to suit his and the customers' needs. Under the motto "Empowering the Art of Retail", Toshiba will present its end-to-end IT ...

Supplier

Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
ROQQIO Commerce Solutions GmbH
ROQQIO Commerce Solutions GmbH
Harburger Schloßstraße 28
21079 Hamburg
CCV Deutschland GmbH
CCV Deutschland GmbH
Gewerbering 1
84072 Au i.d.Hallertau
LANCOM Systems GmbH
LANCOM Systems GmbH
Adenauerstraße 20 / B2
52146 Würselen
Casio Europe GmbH
Casio Europe GmbH
CASIO-Platz 1
22848 Norderstedt
Intenta GmbH
Intenta GmbH
Ahornstraße 55
09112 Chemnitz
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
AURES Technologies GmbH
AURES Technologies GmbH
Maisacherstr. 118
82256 Fürstenfeldbruck
Allgeier Enterprise Services
Allgeier Enterprise Services
Westerbachstr. 32
61476 Kronberg im Taunus
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn