The French economy continued its slow recovery in Q3, with consumers still the main driver of activity and retail sales rising 3.7% year-on-year in August. The retail property sector is vibrant, with strong activity being seen from occupiers and investors across all retail segments.
The high street segment is performing strongly, especially in Paris, with new and existing retailers from the fashion, beauty and restaurant sectors actively looking to expand. Le Marais, in particular, is a top target for many international retailers as they look to test out new concepts and brands. Retailers are also looking to expand in regional markets, with a strong focus on acquiring large, well-located units that heighten visibility and offer greater footfall. The shopping centre segment is seeing healthy demand, with retailers mainly targeting established centres, but also smaller shopping centre formats in second tier regional cities. Activity in the retail park segment has been strong in recent months, with the handover of several La Halle stores providing attractive opportunities for expanding discount retailers, such as Action and Stockomani. Leading fashion retailers, such as H&M and Happy Chic, are also testing out of town formats, which offer the advantages of lower rental costs than other retail formats.
Source : Cushman & Wakefield