Overview of the Vienna retail sector
Executive Summary
Positive trends currently overshadowed by the war in Ukraine
see the current situation as a chance to complete long-awaited rentals at top locations.
Further decline in average per capita selling space
The war in Ukraine and its economic consequences, above all the sharp rise in inflation, are completely overshadowing all other developments in 2022. Retailers are currently confronted with a lack of planning security, and expansion plans and invest- ments are frequently placed on hold. Discounters and retail parks are the big winners in the crisis The decline in real purchasing power is motivating, or rather forcing, consumers towards particularly price-conscious shopping behaviour. This trend is benefitting discounters in the food and non-food sectors as well as retail parks, where these local suppliers are traditionally well represented.
The market is losing more space through demolition and changes in use than can be added with new con- struction. In combination with the steady population growth, this is leading to a continuous decline in the per capita selling space. Strong population growth provides new impulses for the food trade The food trade, and above all the discount seg- ment, remains the most expansive sector in retail trade. Renewed strong population growth in 2022 will support a further expansion of the consumer base. Retail space as an increasingly impor- tant target for service providers The service segment is becoming a more im- portant factor for the use of retail space. Sound growth has been recorded, above all, by health and fitness providers, while banks are continuing to reduce their already heavily rationalised branch networks.
Focus on sustainability
The EU Taxonomy will become an even stronger mo- tor for sustainability in retail properties. The main fo- cus here is on measures to reduce energy consump- tion, conversion to environmentally friendly energy carriers and the minimisation of ground sealing.
Top locations are the best bet in the crisis
The streamlining of branch networks and shop closings are a visible fact in all market segments. At top locations, the demand for vacant space is increasing substantially and, above all, international luxury labels
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