A performance update on the German retail sector

We’ve analysed recent data compiled by Bulwiengesa covering trends in German retail and have  prepared a brief report illustrating the changes in the distribution of German retail between 2000-2014 (the “Retail Activity”).

We have focussed the review on German food dominated retail parks, food retail warehousing, medium and large standalone retail markets and large Fachmarktzentrum which constitute “ Our Asset Class”.

Changes in German Retail Trends

In 2014 our Asset class was responsible for c.41.5% of the Retail Activity. This is a share that the graph clearly illustrates is remarkably consistent and stable since 2000.

In stark contrast department stores and non-food/specialty retail chains’ share of the retail activity has sharply declined (by upwards of 20%).

Online share doubled

Unsurprisingly, the biggest mover was the online and mail order sector who have seen their share of the Retail Activity nearly doubled from 5.4% in 2000 to 10.1% in 2014. Along with the growth of discounters this has primarily effected the department stores and non-food/specialty retail chains’ share of the retail activity.

Importantly this online growth does not have any significant impact on food retailing and our Asset Class as yet. With German consumers still favouring our Asset Class for convenience shopping.

As sector specialists we have also identified a trend in our target Asset Class to construct in prime retailing sites, B and C locations. These are occupying the spaces made vacant by former department stores. The result is a new type of ‘Hybrid Centre’.

Should you require further information please contact our Investor Relations team on +353 (0)1 647 1121 or [email protected].