PwC recently carried out a study in Germany about the decline & repurposing of shopping centres concluding that at least 1/3 were not future proof.
With the continuing trends (online shopping, increased demands for restaurants & entertainment) shopping centres will be repurposed to try and secure their futures.
Covid has certainly accelerated the already growing trend of online vs physical bricks & mortar shopping, which was overtaken in terms of volume in 2013.
Source: PwC Study (link below)
The study interviewed 1000 consumers as well as investors and owners of shopping centres across Germany for their opinions on the future evolution.
Results from the consumer perspective:
Decreasing footfall in shopping centres
Top 3 reasons to go to a shopping centre: Food, bakery, pharmacy.
There is also more interest in food, restaurants & entertainment – but not enough offerings to meet demand. As a result 61% go to shopping centres without actually consuming anything.
Trends which are likely to continue in the future:
Repurposing of shopping centres – top ideas: offices, apartments, health, hotels – although many of these have not been successful financially
Shorter rental contracts, pop up stores, high turnover of renters
More entertainment & restaurants in the offering mix, probably less clothing, accessories etc
The physical buildings challenges which face shopping centres in repurposing include:
1. Construction permits
2. Structures cant take high weight e.g. 5kN/m2 ceiling strength
3. HVAC systems
4. Customer flow
5. Financing
A summary of the key findings in German can be downloaded here:
A more detailed report in German on the study can be downloaded here:
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