Global

HOW ACTIVE ARE RETAILERS IN EMEA?

CB RICHARD ELLIS | EMEA RESEARCH & CONSULTING | NOVEMBER 2009 | SPECIAL REPORT

The effects of the recent turbulence in the financial markets and subsequent global recession continue to ripple through the economies of Europe, the Middle East and Africa. Different parts of the world are being affected to varying degrees, and in different ways, as companies and individuals seek to come to terms with a more uncertain future than has been witnessed for many decades.

Much attention has been focussed on the retail sector – and for good reason. Much of the economic growth witnessed in recent years was driven by increasing consumer expenditure, which was itself in many cases fuelled by cheap debt, and rising house prices. As the economy and financial markets have contracted, so the consumer engine of growth has slowed, or in some places stalled completely. Faced with uncertain employment and income prospects, consumer sentiment has weakened and households have started to save
rather than spend.

The potential implications for retailers are clear and, for some, the strain was too much. Gaps have appeared in many high streets, as some retailers have been forced to rationalise their networks or cease trading altogether. High profile collapses of well known retail operators such as Woolworths and Threshers in the UK, Arcandor and Escada in Germany and Icelandic group Baugur have created headlines which fuelled the negative sentiment surrounding the sector.

Author(s): several

Source: CB Richard Ellis

Published: 19.11.2009