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ePaper created 2014-04-29, 17:58:02 | version 1.30.00
3 ARGUMENT 3: However, investment security takes top priority. In the wake of the financial crisis, online retail-ing has been another factor pushing investors to- wards risk aversion and a greater focus on core/core plus real estate, with the result that high street proper- ties in prime locations have come into the spotlight more than ever, with prices rising accordingly. Similarly, well-positioned shopping centers will continue to operate with a fairly low degree of cyclicality, whereas weak retail locations will lose out, in part because national and international retailers will cease to need blanket coverage in the long term due to the rise of online shopping and will be able to thin out their store networks. The expectation is that retail properties in large and medium-sized cities will have better market prospects in future than those in smaller towns or in class C or D locations. At pre- sent, only the scarce supply of available properties is acting as a brake on investment transaction volumes in German shopping centers (2012: approx. €3 billion). The high demand for good centers natural- ly has implications for yields, with peak yields remaining stable at around 5%. The competition against e-commerce will force bricks and mortar retailers, and even shopping centers that are currently operating well, to keep up with the times. In so doing, it is less helpful to attempt to lure in customers and try to “train” them by demonstrating the benefits of physical retailing than it is to ad- dress the “modern consumer” via a good multi- channel strategy, gener-ating revenues from cross-selling by linking together attractive online and offline forms of dis-tribution. Phys- ical retail needs to make clear what sets it apart from online sellers and cannot be rep- licated. For shopping centers, that means con- centrating even more squarely on shopping as an experience. That means a new genera- tion of shopping centers that engage the senses of hearing, touch and smell as well as sight (such as the Mönchengladbach Arcaden), along The shopping experience and adaptability of shopping centers will become increasingly important with those making the shopping experience more interactive (such as the Alterstal center in Hamburg and Limbecker Platz in Essen, offering “Future Labs” with 3D orientation sys- tems and virtual customer information) will be in a stronger position. Shopping centers must strive for the status of “third place”, after the home and the work- place, for the catchment areas that they serve. Not only critical mass, but above all a mix of sectors appropriate to the location and the market are central to achieving this. As ex- plained above, there are increasing shifts tak- ing place in the segment mix and product con- cepts on offer in shopping centers in the e-commerce age. The following chart pro- vides an illustration of this. ARGUMENT 2: pu w anan real estate, with the result thate result that ons have come into the spotligo the spotlig accordingly. Similarly, well-poaccordingly. Similarly, well-po ue to operate with a fairly low due to operate with a fairly low d ail locations will lose out, in parail locations will lose out, in par etailers will cease to need blanetailers will cease to need blan he rise of online shopping andhe rise of onl works. The expectation is thatworks. The e -sized cities will have better m-sized cities will have better m n smaller towns or in class C orn smaller towns or in class C or e supply of available propertiese supply of available properties Well-situated retail locations need not be afraid ... and pick the product up in a local shop. DEUTSCHEEUROSHOPANNUALREPORT2013/SHOPPING 047