Whether they sell household goods or food and groceries, it is retailers with a focus on convenience goods and essential product categories that have continued to drive footfall to the most successful out-of-town schemes across Europe over the last few years. This is evidenced by the fact that the most profitable retail parks are typically anchored by food stores, consumer spend at which is often insulated by macro-economic headwinds as it is an essential  category. The countries of Eastern Europe are increasingly recognising this, which is why they have seen the most significant growth in grocery- related specialist retailers across the continent, albeit this does reflect growth off a low base.

Poland provides a good microcosm of a wider trend amongst emerging European markets. Relatively under-supplied on a per capita basis, it presents an interesting development and investment opportunity, one that is starting to be realised when considering historical trends. Food store anchored schemes are increasingly being developed to service a growing number of smaller towns and cities across the county with populations of between 50-100,000 people.

Spain’s retail warehouse market has been associated with product variety and affordable prices from inception.  The arrival of a number of new international low-cost operators has further reinforced this positioning: Pepco, Kik, Action, Kiabi and Tedi are some of the brands that have become successful additions and represent a diverse range of sectors including fashion, homewares, pet supplies, DIY, electrical goods, toys and cosmetics.

Denmark (24%) and Finland (43%) have the highest proportion of their total retail spend attributed to value operators as of the end of 2023. The UK, Hungary, Spain, as well as a number of countries in northern Europe, also have significant shares of value orientated spend. Those markets with the smallest proportions of value spend are indeed those where growth in this category has been the highest, highlighting those markets that have begun to recognise the ‘value of value’ as part a successful out-of-town offer.

Further information

Contact Sam Arrowsmith