Fri, 03/11/2023 - 12:00
· 1 min read

European Retail Market Overview Q3 2023

After a slightly positive first half-year, eurozone activity is likely to stall in the second half-year. The further weakening of economic activity and lower inflation that we expect to see by the end of this year should prompt the Fed, like the ECB and the BoE, to stop raising their policy rates. However, a further tightening cannot be ruled out.

  • Total retail investment at the end of Q3 2023 is €27.3bn (-44% vs Q3 2023). Retail assets are slowly gaining traction in investment market share. In Germany, France and Poland, the retail sector has second place in total investment volume. In Czech Republic, Denmark and Ireland, retail has the highest market share.
  • Premium and luxury brands were the most active in the occupier market over Q3 2023, while innovative mass-market brands continued to open state-of-the-art stores. However, the cost of living crisis is exposing weaknesses in many brands’ business strategies, particularly those that have unbalanced or ill thought out omni-channel approaches to retailing. Food discounters are taking advantage of the crisis with a sharp increase in grocery market share.
  • The Middle East records the strongest growth (+20% of tourists’ arrival compared to 2019 levels), while APAC is the last region to recover, with -40% of 2019 international tourist volumes. International tourists' arrivals were strong in Europe, with the Southern/Mediterranean region leading the recovery (+1% vs 2019 levels).

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European Retail Market Overview Q3 2023