Retail sales fell to their lowest level in eight months in November, largely due to the dip in confidence as a result of the recent terror events. Aside from this, consumer spending has been relatively resilient and is expected to have grown by 1.5% in 2015, up from 0.7% in 2014. Occupiers and investors remain very active, especially in prime markets, with more selective demand for secondary assets and locations.
Paris high streets performed strongly in Q4, with strong demand from upmarket retailers in several activity sectors such as beauty and restaurants. The fashion sector is also very active, with several international brands looking to open their first store or expanding or repositioning their existing portfolios. Retailers are also looking to expand in key regional cities, such as Lyon, Bordeaux and Toulouse, with a strong focus on acquiring large, well-located units that heighten visibility and offer steady footfall. International retailers are also showing a healthy appetite for space in regionally dominant shopping centres. Some shopping centres in weaker locations are struggling from a combination of poor footfall and retailer consolidation and relocations, while many are facing higher competition from retail parks, with several French and international fashion retailers increasingly looking at out of town formats for expansion.
Source : Cushman & Wakefield