Online retail is no longer a marginal sales channel and its pace of growth will see online capture almost all retail sales growth in the UK, France and Germany to 2016.
This shift of sales online is reducing sales per unit area in physical stores - to maintain profitability, retailers will be forced to reduce occupancy costs.
There is a clear impact for retail property. For some units rents will be maintained - for others, affordable rents could drop close to zero.
According to our modelling, the retail markets of France, Spain and Italy are most at risk.
Source : AXA Real Estate