TOM 06 2023 neu

T
TOPS
M
OF THE MONTH
TOMO
RETAIL REAL ESTATE
TOPS
OF THE
MONTH
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
THE HOTTEST DEALS +++
INTERVIEWS +++ STATEMENTS
+++ PARTICULARS +++
ANALYSES +++ PROJECTS
presented by HI-HEUTE.DE
June 2023
Artificial intelligence is also increasingly being used in retail.
Overregulation of AI
could hit the retail sector
German Trade Association sees great potential in the technology
In view of the European Parliament‘s
vote on a negotiating
mandate for the proposal for a
regulation on artificial intelligence,
the German Retail Association
has emphasized the
great potential of the technology
and warned against too
narrow restrictions.
„Artificial intelligence can help
retailers manage the global flow
of goods with even greater precision.
But AI can also be used
in stores to understand customer
needs even better. It is clear that
we need rules, but we must not
throw out the baby with the bathwater,“
says Stephan Tromp,
Deputy General Manager of
HDE.
The HDE therefore considers a
risk-based approach with grouping
into different risk classes
to be suitable and appropriate.
From the association‘s point
of view, it is then very much a
question of which application is
sorted into which risk class.
Plea for computer
vision
„It must not be the case that
computer vision applications,
for example, which do not generate
or evaluate any personal
data, are assigned the highest
risk rating,“ Tromp continued.
For this reason, he said, the specifications
must be formulated
as concretely as possible in order
to ensure clarity. In this respect,
it is positive that the parliamentary
position provides for
new requirements according to
which the EU Commission must
develop and provide guidelines
on certain aspects of the regulation,
such as high-risk AI. In the
HDE‘s view, only applications
that actually pose a significant
and increased risk to health,
safety or a risk to fundamental
rights that cannot be easily reversed
should be considered
high-risk AI systems.
Computer Vision is the AI technology
used to power the cashierless
supermarket. AI is also
being used to anonymously analyze
foot traffic in stores and optimize
product placements, or in
the form of chatbots in customer
communications.
Need for
improvement exists
Symbol image: Unsplash / Kevin Ku
Especially with systems like
chat CPT, there will be further
improvements here in the near
future, according to HDE. The
results can help companies to
respond even more precisely to
the needs of their customers.
Overall, the HDE sees some of
the changes made in the parliamentary
position as positive,
but at the same time identifies a
need for further improvement.
One example is the definition of
AI. It is right that the concept of
autonomy is included as a central
component. However, this
should also be clearly defined
in the legal text. In addition,
the constant learning capability
of AI should also be included
in the definition as an important
element. This would ensure
differentiation from simple software.
„Overregulation on the part of
the EU would once again leave
us far behind companies in the
U.S., for example, in this technology.
That must not happen.
There is no reason to be naive
about AI applications. On the
other hand, a latent and unfounded
sense of fear must not gain
the upper hand either. We need
fair and factually based rules for
AI,“ says Tromp.

Page 2 T O M
NEWS
June 2023
ECE powers
the Rhein-Neckar-Zentrum
New tenants from gastronomy, sports and leisure
More gastronomy, sports,
and leisure experience for
the Rhein-Neckar-Zentrum
in Viernheim: ECE Marketplaces
is further developing
the shopping center in the
economically strong Rhine-
Neckar region and optimizing
the center‘s leisure and
gastronomy offer with new
tenants.
On the site formerly occupied
by a Bauhaus store and located
directly at the center, a completely
new, free-standing restaurant
building with attractive
outdoor terraces is being built,
which will be operated by the
successful pizza and pasta concept
L‘Osteria and for which
the foundation stone has just
been laid.
The Fürth-based urban experience
center FLAiR of the
real estate developer and investor
P&P Group expands
its range of offers and welcomes
its new tenants.
On July 1, the pan-Asian restaurant
KOKONO will open its
doors directly at Theaterplatz.
In addition, the companies mister*lady,
MyAppCafé as well
as Vinyl Der Laden have already
complemented the shopping
and gastronomy experience
since the beginning of the year.
Before the start of the Food
Court Days, the FLAiR draws
a positive balance of the events
and action days in the first half
of the year.
Asian cuisine
Starting July 1, the KOKONO
restaurant will serve traditional
Asian dishes and modern sushi
creations on two floors at
FLAiR. The spacious outdoor
On the other hand, three new
tenants - the specialist bicycle
retailer B.O.C. and the experience
concept JUMP House,
as well as another indoor entertainment
provider - will supplement
the range of products and
services on offer at the Rhein-
Neckar-Zentrum.
Completion in 2024
In addition, attractive new outdoor
areas with green spaces
and seating areas will be created
in the course of further
area with a view of Fürth‘s municipal
theater also offers all
guests attractive seating in the
open air. The renowned clothing
comp
any mister*lady opened its
new branch in FLAiR back in
February. The fashion chain,
founded in 1967 and based in
development. Completion of
the redesigned areas and the
opening of the new concepts
is planned in stages for 2024.
Deutsche EuroShop as the owner
of the Rhein-Neckar-Zentrum
and the new tenants are investing
a total of more than ten
million euros in the further development
of the center and the
expansion of the rental areas.
FLAiR Fürth is almost fully let
P&P Group expands the product range
ECE wants to strengthen the Rhein-Neckar-Zentrum in Viernheim.
Visualization: ECE
The range of products on offer at FLAiR Fürth is growing all
the time.
Visualization: P&P Group
Schwabach, Franconia, offers a
wide range of textiles and clothing
on more than 200 square
meters. Since the beginning of
the year, MyAppCafé, an automated
machine for preparing
coffee specialties, has also been
part of the gastronomic offering.
University study:
inspiring consumers
to save by shopping
As part of its „Customer Inspiration
Study,“ the University
of St. Gallen has investigated
how retailers can continue to
persuade saving consumers to
shop. For the researchers, the
focus is on inspiring customers.
For example, the percentage of
inspired customers who visited
more stores increased by 92
percent, 70 percent more browsed
more departments, and the
number of people who bought
more products increased by 79
percent, they said.
In the process, the average
purchase amount also increased,
he said. An omnichannel
strategy is an essential element
for successful inspiration,
which is particularly effective
with experiential shoppers and
younger consumers. However,
inspiration should remain in
check, because 12.7 percent
of inspired customers were
annoyed by their last purchase
afterwards.
Textile group
Bestseller accelerates
expansion in Austria
Danish clothing group Bestseller
A/S is continuing to expand
its presence in Austria. The parent
company of brands such as
Vero Moda, Jack & Jones and
Only is focusing on new openings
as well as modernization
and expansion of existing locations.
The country is one of the „most
promising markets“ for the
group of companies, the clothing
provider recently explained
in response to a query from
the fashion news portal „FashionUnited“.
Previously, the
trade magazine Österreichische
Textilzeitung had reported on
the current growth plans of the
Danes. According to the report,
the grou
p has already opened eight new
stores of its Only brand and
four stores of the Jack & Jones
label in Austria in the current
fiscal year 2022/23. Children‘s
fashion supplier Name It recently
moved into an outlet store
in Salzburg, with another to be
added in Parndorf on August 10.
At the same time, stores of the
brands belonging to the Group
have been refurbished and enlarged
in several cities in recent
months.

Page 3 T O M
TOP STATEMENT OF THE MONTH June 2023
TOP STATEMENT
June
“Segments, neighborhoods,
brands - the
gold dust that much
long still had on the
shoulder and that it
takes to understand
retail, not many wear
at P & C today.“
Thomas Freude, head of P & C
Düsseldorf KG, which has been
in insolvency in self-administration
since June 1, in an article
in the trade journal „Textilwirtschaft“

Connected
to possibility
We love the idea of creating something new, of thinking differently.
That’s what drives us to generate greater value than expected.
That’s what we have been doing for over 30 years.
www.sonaesierra.com

Page 5 T O M
ANALYSES June 2023
Consumer Behavior: Low propensity
to save prevents stagnation
Current GfK figures: Worries prevent further upward trend
Following the noticeable improvement
in the previous
month, consumer sentiment
showed a rather mixed picture
in May according to
the latest GfK consumer climate
survey. While income
expectations increased for
the eighth time in succession,
both propensity to buy
and economic expectations
suffered slight losses. GfK
forecasts a consumer climate
of -24.2 points in June, 1.6
points more than in May.
The eighth increase in consumer
sentiment this month is
supported in large part by a
five-point decline in propensity
to save. „Consumer sentiment
is not showing a clear
upward trend at the moment.
Consequently, the rise in the
consumer climate has also slowed
down again somewhat,“
explains GfK consumer expert
Rolf Bürkl. „A lower propensity
to save has prevented the recovery
in consumer sentiment
from coming to a standstill this
month. However, consumer
sentiment is still below the low
level seen in spring 2020 during
the first Corona lockdown.“
Income
expectation gains
Another key support for the
modest recovery in consumer
sentiment is income expectations.
The income indicator also
increased for the eighth consecutive
month in May, climbing
to -8.2 points after gains of 2.5
points. Compared with the corresponding
period of the previous
year, this still represents an
increase of 15.5 points.
High cost of living and energy prices slow down consumer spending.
Symbol image: Pixabay / Winfried Wende
Expectations of significantly
higher collectively agreed income
increases are primarily
responsible for the more optimistic
mood. Many employees
assume that the wage and salary
increases will at least partially
compensate for the price increases.
This would mean that
the loss of purchasing power
would be less severe than originally
feared. However, the
still very low level of consumer
confidence suggests that
private consumption will not
make a significant contribution
to overall economic growth in
Germany this year. The expected
loss of purchasing power
will prevent real growth in the
domestic economy. The propensity
to buy did not benefit from
improved income expectations
in May. After three consecutive
increases, the indicator suffered
a setback. It lost three points
and now stands at -16.1 points.
Uncertainty due
to high prices
Compared with the corresponding
period of the previous
year, the drop amounts to five
points. High prices for the cost
of living are unsettling German
consumers. As a result, they remain
extremely cautious in their
purchases.
Recovery a
long way off
In addition, the current discussions
about the government‘s new
heating law are causing particular
concern among property
owners. If the heating system
had to be changed, additional
costs would be incurred due to
energy-related refurbishment
measures, for example thermal
insulation. This is likely to have
an additional negative impact on
consumer spending.
In May, economic expectations
had to give up some of the significant
gains they had made in
the previous month. After a drop
of two points, the economic
sentiment indicator fell to 12.3
points. Compared with the previous
year, however, it was still
up by almost 22 points. Apparently,
consumers are uncertain
about how the German economy
will develop in the coming
months. Although it will probably
be possible to avoid a recession
this year, a noticeable upturn
in the economy also seems
a long way off. Developments
will probably depend very much
on the behavior of the European
Central Bank. An overly restrictive
monetary policy through too
many and / or too large interest
rate steps would greatly increase
the risk of a recession. On the
other hand, it must also keep an
eye on the goal of price stability,
and that in turn requires a more
restrictive monetary policy.

Page 7 T O M
NEWS June 2023
New GMA study on the
importance of GALERIA locations
Assessment of the current situation and subsequent uses
New closure lists for GALE-
RIA stores in Germany are circulating
daily. Locations that
seemed „safe“ one day are up
for grabs again the next. These
are the opening words of a new
study by the Gesellschaft für
Markt- und Absatzforschung
mbH (GMA) on the importance
of department stores for the
frequency of city centers.
These „big tankers“ are supposedly
of central importance for
the further development of the inner
cities, and the question „What
will happen after the closure?“ is
constantly driving the municipalities
and the GMA consultants.
The discussion is often emotional
and sometimes „glorified“.
GMA evaluated 56 of the current
129 GALERIA locations -
around 45 percent - throughout
Germany, including 20 double
locations in ten cities, with regard
to the frequencies in the stores
and their role for the respective
city centers. This was made possible
by using GPS movement
data from PlaceSense. For exam-
study.
ple, cell phones with apps active
in the background continuously
transmit their GPS position to
the operators of apps of all kinds.
This data, known as inapp data, is
systematically analyzed.
The data is then anonymized
using a procedure certified under
data protection law and further
processed in compliance with
DSGVO. With the help of this
technology, the frequencies of
a location can be recorded with
very high accuracy to the hour
or day. Furthermore, conclusions
Art Invest and GALERIA
secure Bamberg store
Rental space to be divided up
Art-Invest Real Estate and
GALERIA Karstadt Kaufhof
have signed a lease agreement
for the Grüner Markt 23 department
store in Bamberg,
thus securing the store‘s longterm
future in Bamberg.
The agreement provides for a reduction
and concentration of the
rental space to around 12,000
square meters in the Grüner
Markt 23 part of the building,
which is thus fully leased to GA-
LERIA Karstadt Kaufhof.
For the part of the building on
Maximiliansplatz with around
10,000 square meters of rental
space, which will be returned
in full to the landlord as part
of the agreement, Art-Invest
Real Estate is planning a comprehensive
repositioning and is
holding initial talks with potential
subsequent users. Tobias
Wilhelm, Partner at Art-Invest
Inner-city department stores are the subject of a recent GMA
Real Estate says: „We are very
pleased to have reached a partnership
agreement with GALE-
RIA Karstadt Kaufhof and will
now focus on the repositioning
of the Maximiliansplatz part of
the building. Our goal is to improve
the quality of stay at the
largest square in Bamberg‘s city
center with the intended mix of
uses and to further increase its
Photo: GALERIA
can be drawn about the place of
residence based on the average
daytime and nighttime locations
of cell phone users.
Based on this data, the origin of
the visitors can also be determined
on a small scale. In this respect,
the PlaceSense data provides
a realistic picture of the
distribution and origin of customers,
frequency and other factors
such as dwell time or coupling
effects between different locations
at specific sites for different
periods of time.
Art Invest and GALERIA have saved the department store in
Bamberg.
Photo: Art Invest
attractiveness.“ Andreas Starke
(SPD), Mayor of Bamberg,
commented, „The continued
existence of the department
store is a great signal for the
city of Bamberg. As the heart
of Bamberg‘s retail city, the department
store will continue to
act as a frequency driver for the
city center. I look forward to its
further development.“
Gery Weber closes
122 stores and cuts
jobs
Troubled clothing retailer Gerry
Weber is closing 122 stores and
outlets in Germany and cutting
jobs. The Halle, Westphalia-based
company, which is currently
undergoing restructuring proceedings,
intends to focus more
on its wholesale business in the
future, Gerry Weber recently
announced. This also means that
the store network in the home
market will be downsized. Of
a total of 171 locations in Germany,
49 will be retained. The
locations that will not be closed
are stores that are already profitable
and have future potential,
according to Halle. In addition,
the German concession business
is also to be discontinued.
The closures are to be completed
by the end of September.
„By consistently turning to the
wholesale business, Gerry Weber
is returning to its roots,“ said
Gerry Weber CEO Angelika
Schindler-Obenhaus. „At the
same time, we are finally putting
an end to the course we embarked
on more than ten years
ago of an overly ambitious expansion
of our own retail, which
has proven to be neither in line
with the market nor viable for
the future.“
Rhein Ruhr Zentrum
in Mülheim to get
new owner
The Rhein Ruhr Zentrum,
which is in need of redevelopment,
is to change hands in mid-
July for less than 60 million euros.
According to Immobilien
Zeitung, a good five years after
the takeover, the joint venture
between Morgan Stanley and
redos has abandoned its plans
to revitalize the Rhein-Ruhr
Zentrum and the neighboring
Stinnes high-rise on Mülheim‘s
A 40 motorway. A consortium
of the Spanish Eurofund Group
and Signal Capital is the presumed
new owner. According to
BILD, the nearly 60 million is
a lower selling price than originally
set. Most recently, a price
of between 50 and 100 million
euros was in the air. When the
investor will tackle the urgently
needed refurbishment
(estimated to cost 200 million
euros) is still unclear. It was
important for planning security
that Galeria, the largest anchor
tenant, would also remain in
Mülheim - albeit on a reduced
floor space.

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Page 9 T O M
NEWS June 2023
Satisfactory financial year
at EDEKA Nord
Group sales of around 3.73 billion euros
Despite a challenging market
environment, EDEKA Nord
can look back on a respectable
financial year 2022. Group
sales were around 3.73 billion
euros.
Supply chain problems, rising
consumer prices and
consumer reticence: even the
booming bicycle industry was
confronted with difficult market
conditions in 2022. The
new „Industry Report Bicycles“
by IFH COLOGNE and
BBE Handelsberatung comes
to this and other conclusions.
Despite this, the market for bicycles
and accessory products
was able to continue its upward
sales trend and grow to a market
volume of eleven billion euros:
an increase of 9.5 percent
compared to the previous year.
Compared to 2018, the market
volume doubled in 2022.
However, the forecast for the
coming years is cautiously restrained.
After the bicycle boom
of recent years, experts expect
slower growth. „Bicycles remain
a trendy topic, even if the
The newly elected supervisory board of EDEKA Nord.
Photo: EDEKA North
Eric Süllau, Chairman of the
Supervisory Board, opened
this year‘s General Meeting of
EDEKA Nord eG at the Congress
Center of Holstenhallen
Neumünster. The Board of Management
then presented the latest
figures for the past financial
year to an audience of around
100 merchants.
„Especially the Russian invasion
of Ukraine has affected us
and the entire industry in 2022.
In this challenging and pricedriven
market environment, our
customers have always been
able to rely on EDEKA“, explained
Stefan Giese, member
of the Board of Management of
EDEKA Nord eG. Overall, the
assessment of the 2022 financial
year is satisfactory under the
given difficult external conditions.In
the 2022 financial year,
the independent merchants of
EDEKA Nord achieved a likefor-like
sales increase of 0.5
percent. Group sales fell by 2.2
percent year-on-year to 3728.2
million euros.
After adjustment for the drop
in like-for-like sales with Iwan
Budnikowsky GmbH & Co.
KG, an increase in sales of +
6.8 percent can be reported. A
total of five new stores were
opened, three former real properties
were taken over, three
properties were relocated, two
first half of 2023 saw a certain
reluctance to buy for the first
time in over ten years. Megatrends
driving the industry and
constant product innovations
were privatized, and there was
a change of ownership at 27
stores. As of December 31,
2022, EDEKA Nord supplied
649 stores with an average sales
area of 1287 square meters
and generated consolidated
earnings of around 19.044 million
euros in 2022. At the end
of 2022, seven MARKTKAUF
stores and nine EDEKA stores
were operated by the company
itself. In the change of ownership,
eleven merchants were
accompanied into self-employment.
Bicycle boom over?
Slight decline is to be expected
New study by IFH and BBE indicates difficult year ahead
After an increase in sales in the previous year, bicycle retailers
are now facing more difficult times.
Symbol image: Pixabay
will keep the bicycle trade growing
in the long term,“ is how
Florian Schöps, Senior Consultant
at BBE Handelsberatung,
classifies the data.
Galeria Karstadt Kaufhof:
Numerous stores
closed in the meantime
Galeria Karstadt Kaufhof has
already closed numerous department
stores this month as part of
its restructuring efforts. An overview
of the company on the Internet
listed 19 stores as „closed“
on Thursday. But a company
spokesman acknowledged that
at least one of the listed stores -
the Galeria Frankfurt Zeil branch
- was currently still selling out.
However, he said, the closure is
only a matter of days. A further
22 stores are expected to close in
January next year. However, the
continuation of the Düsseldorf
Schadowstrasse store, which was
also originally scheduled for closure,
was secured this week.
Surprising: Inditex
presents impressive
quarterly figures
Spanish fashion group Inditex,
which owns the brands Zara,
Pull& Bear, Massimo Dutti and
Bershka, has presented surprisingly
good quarterly figures:
Sales in the period from February
to April rose by 13 percent
compared to the same period last
year to 7.6 billion euros, while
operating profit even increased
by 43 percent to almost 1.5 billion
euros. Business has also
been good in the first weeks of
the new fiscal quarter since the
beginning of May, with sales up
16 percent.
Sonae Sierra saves
almost 35 million
euros through
eco-efficiency
Sustainability has been a fundamental
part of Sonae Sierra‘s
business practices for more than
25 years. This has positioned
the company as a pioneer in the
real estate industry. Pioneering
sustainability measures are implemented
in all business areas.
These include the careful use of
resources and increasing eco-efficiency.
For example, the company
avoided operating costs of
34.9 million euros in 2022. CO2
emissions have been reduced by
90 percent since 2005, electricity
consumption by 66 percent since
2002 and water consumption by
around 40 percent since 2003.
Sierra‘s goal is to become carbon
neutral by 2040 - ten years before
the EU member states‘ „Green
Deal“ aims to achieve this.

Page 11 T O M
NEWS June 2023
Sebastian Strache to become the
Otto Group‘s new Head of HR
Sandra Widmaier-Gebauer privatized
Effective September 1, 2023,
Sebastian Strache will become
the sole Group Vice President
HR of the Otto Group. Sandra
Widmaier-Gebauer, who has
been responsible for Group
HR in co-leadership with Strache
for many years and since
May 1, 2022, wishes to go private
at her own request.
As planned and reliable as
Sandra Widmaier-Gebauer has
been for more than two decades
in taking responsibility for and
advancing the Otto Group‘s
human resources issues, she
has also prepared her farewell
to private life with foresight.
In May 2022, the 56-year-old
shared her position as Vice
President HR with her current
successor in a co-leadership
model. Now, on September 1,
2023, the complete changeover
to Sebastian Strache will
follow at her request.
This marks the end of an era.
Sandra Widmaier-Gebauer joined
the individual company
IPH Handelsimmobilien
strengthens its Munich location
with Stefan Schußmann
as new Director Retail Real
Estate Consulting and Development.
In this position, he
has been advising investors,
landlords and users on issues
relating to leasing, positioning
concepts and project and
portfolio development since
the beginning of June.
As part of the IPH Group, IPH
Handelsimmobilien, together
with BBE Handelsberatung and
elaboratum, offers a range of
services that is unique in Germany,
including conception,
consulting and implementation
for leasing, transactions, development
and positioning of
retail space.
Stefan Schußmann has more
than 30 years of experience in
Sebastian Strache will be the sole Group Vice President HR of
the Otto Group.
Photo: Otto Group
the retail real estate industry. He
has been with ECE since 1998,
most recently as Leasing Manager
Central Tenant Management,
with a focus on fashion.
OTTO in 2000 as Director Human
Resources International.
In this position, she focused on
the topics of foreign countries
and expatriate management.
In 2005, the graduate in economics
and social sciences
was appointed Head of the
Otto Group‘s overall Human
Resources division. She is responsible
for the Group‘s HR
strategy, talent management,
labor relations and collective
bargaining law, the company
pension scheme, the Learning
Hub, the Otto Group Academy
as well as the recruitment and
support of the managing directors
and Group Vice Presidents
in the holding company.
IPH further expands consulting
and development competence
S. Schußmann is new Director Retail Real Estate Consulting & Development
Stefan Schussmann is new to
IPH. Photo: IPH
Prior to that, he focused on the
areas of Food, Leisure & Placemaking.
Within the scope of
his extensive new leasing activities,
he was responsible for
the budget of the rental income
statement for top properties
such as the Milaneo Stuttgart,
the Forum Mittelrhein Koblenz
as well as the Stadtgalerie
Schweinfurt. Here he was able
to build up a broad network and
excellent market knowledge.
He began his career in 1992 at
leading retailer and department
store operator Breuninger as a
real estate manager in Stuttgart.
Stefan Schußmann comments:
„IPH‘s independent, interdisciplinary
perspective enables a
wide variety of stakeholders to
add concrete value to different
projects and assets. I look forward
to continuing the success
story together with the team.“
Not a good mood in
Austrian retail
Austrian retailers do not expect
the situation to improve
this year and anticipate a ten
percent drop in sales. 46 percent
expect a loss. According
to the results of a flash survey
conducted by the Austrian
Trade Association, 53 percent
stopped their investments,
48 percent reduced their advertising
expenses, Leadersnet
Austria reports. For 17
percent, the lack of skilled
personnel could lead to limited
operations. There were
difficulties with government
support services as a result of
Corona, which 32 percent had
not yet received in full. Consumers‘
restrained purchasing
behavior was also a decisive
factor in the clouded expectations.
21 percent of them
limited their purchases to essential
products.
Görtz names new
investor - CK
Technology Solutions
CK Technology Solutions is
the new investor in Görtz. In
mid-May, Görtz announced
that the company had found a
„new investor.“ It is now clear
that Vienna-based CK Technology
Solutions GmbH is
joining the struggling shoe retailer,
Görtz announced Thursday.
The creditors‘ committee
has already confirmed this
and a corresponding investor
agreement has been signed
and notarized. Among other
things, CK Technology Solutions
GmbH owns the Logisticator
platform, which offers
services in the logistics industry.
Now the creditors:inside
still have to approve the submitted
reorganization plans so
that Ludwig Görtz GmbH with
its two subsidiaries Görtz Retail
GmbH and Görtz Logistik
GmbH can leave the reorganization
proceedings again.
The aim is to conclude the insolvency
proceedings in selfadministration
by the end of
July, according to a statement
from Hamburg. „As a traditional
company, it is impossible
to imagine Görtz without the
market,“ said Bolko Kissling,
managing director at CK Technology
Solutions. „After its
extensive transformation, we
see great potential to put the
company back on a stable footing
with the right partners and
a clear customer focus.“

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Page 13 T O M
GUEST CONTRIBUTION June 2023
Can the retail sector still be saved?
Five trends for retail in 2023
Exclusive guest article by Sönke Kewitz, Managing Director of P3 Logistic Parks Germany
After the crisis is before the
crisis. The strict government
measures to contain the Corona
pandemic seemed to be in
their final throes when Russia
invaded Ukraine. This led
to massive price increases in
fuel, energy, and food. The financial
impact of the double
whammy of Corona and conflict
has been devastating for
the global economy, costing
the German economy alone
€420 billion in lost value added
to date. At the same time,
energy and food costs continue
to rise many times over,
creating enormous challenges
for both companies and customers.
While employment was characterized
by shortages and rising
wages at the height of the
pandemic, companies are now
having to cut jobs in order to
reduce costs and remain competitive.
The retail sector is also
facing enormous challenges.
In this context, technological
developments and changes in
consumer behavior are leading
to opportunities that could usher
in a promising transformation in
2023/2024 on both the retail and
customer sides. This is because
while the immediate focus is on
economic survival, many retailers
will use this opportunity to
rethink their assortments, refine
their supply chains and refocus
their attention. The following
are some of the trends we can
expect to see over the next two
years:
1. online retail will continue to
grow
The shift to eCommerce will
continue, albeit at a slower
pace than in the Corona years.
Recent forecasts indicate that
the e-commerce market will
continue its rapid and dynamic
rise. According to Statista, the
penetration rate of e-commerce
users will be 81.1% in Germany
in 2023 and is expected to reach
83.6% in 2027. In the process,
sales will be about 144 billion
euros in 2023 and will increase
by 8.79% annually.
Sönke Kewitz, Managing Director P3 Logistic Parks Germany.
Photo: P3
2. brick-and-mortar stores
will act as fulfillment centers.
The emergence of omnichannel
and the demand for a seamless
multi-channel customer experience
will change the way
physical stores are used, transforming
them into combined retail
and logistics centers that can
serve both online and in-store
customers.
Options such as „buy online,
pick up in store“ and „buy online,
return in store,“ will become
an integral part of the retail
experience to meet customer
expectations.
Indeed, a study by Sendcloud
GmbH shows that two-thirds
of German consumers abandon
their order if they cannot find
information about returns online.
This is another reason why
sellers are expected to make
greater use of inventory management
software.
This will enable them to check
stock levels at various stores
using mobile devices, thus enabling
immediate reservation of
items and delivery to the store
or home.
3. shopping will continue to
become cashless and cashierless.
Contactless payment methods
have been on the rise for years
and have received an additional
boost from the pandemic. Customers
appreciate the convenience
of contactless payments,
which saves them valuable
time. In the meantime, 60% of
all payments in Germany are
processed by electronic payment
methods.
In addition to contactless payments,
cashierless shopping will
also increase in the retail sector
as retailers seek to cut costs and
find ways to remain profitable
with increased customer service.
The automated processes allow
for a smoother and accelerated
shopping experience due to
the elimination of intermediate
steps, as well as lower costs due
to fewer staff.
Tracking the consumer also
helps retailers understand buying
behavior. In addition, continuous
tracking of each item
helps reduce losses due to
shoplifting. Cashierless stores,
then, combine the convenience
(and algorithmic behavioral tracking)
of online shopping with
the community experience of
shopping in person, and save retailers
money in the process. No
wonder retailers like Aldi and
Co are increasingly experimenting
with these technologies.
4. Data-driven decisions become
central
Customer cards or bonus programs
that promise discounts
and various bonuses are very
popular in Germany. For example,
the bonus program provider
Payback alone has 31 million
active users in Germany. Particularly
against the backdrop of
rising food prices, demand for
low-priced food or food available
on special offer is also increasing.
Retailers also benefit
from these programs.
It enables them to collect consumer
information on a large scale
in order to play out increasingly
personalized offers and advertising.
This data will be of growing
value as it allows them to
get a clear idea of who their customers
are, what they want and
how best to meet their needs.
5. sustainability becomes essential
As consumers become more
aware of their environmental
footprint, their desire to purchase
climate-friendly goods has
gone from niche to mainstream.
From environmentally friendly
products made from renewable
resources to ethically produced
products, socially conscious
consumers are becoming
more selective in their choice of
brands.
This is also confirmed by a consumer
survey conducted by market
research institute Appinio,
according to which two-thirds
of consumers in the DACH region
would like to make their
purchases climate-friendly.

www.wisag.de
Your shopping centre in the best hands
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all this keeps not only the customers satisfied, but also tenants and
owners. With our tailored solutions and experience, you will benefit
from optimum management costs. And at all times, we have value
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Joaquin Jimenez Zabala
Tel. +49 162 7861-324 joaquin.jimenez.zabala@wisag.de

Page 15 T O M
ANALYSES June 2023
International luxury labels are also expanding in Germany.
Photo: KaDeWe
Luxury retailing picks up strongly
Savills has checked the market: 77 percent more openings
Rising visitor numbers and
growing luxury consumption
are driving retail in the luxury
segment. This is because,
according to the latest Global
Luxury Retail Report from
Savills, these developments
are closely linked to the increased
rush of international
visitors following the lockdowns
and a growing demand
for luxury goods.
Globally, the number of store
openings in the luxury segment
increased by eleven percent in
2022. With a share of 23 percent,
the European market moves into
second place, just behind China
(41 percent) and ahead of North
America (14 percent).
Major store openings in Europe
last year included a Del Core
flagship store on London‘s New
Bond Street, the sixth Celine
store in Paris and a Ralph Lauren
store in Milan.
Return of tourists
„The return of international tourists,
as well as a willingness to
spend more money on luxury
goods again, has undoubtedly
contributed to European locations
increasingly becoming
the focus of expanding luxury
brands. Similarly, rent adjustments
combined with greater
space availability in some of the
key luxury miles have boosted
leasing activity,“ says Anthony
Selwyn, co-head of prime global
retail at Savills.
Expansion
in Germany
In the German market, brands
such as Hermès, Balenciaga
and Gucci are targeting further
expansion in Düsseldorf, Hamburg
and Munich.
Prime rents for retail space in
the luxury segment remained
constant in Berlin, Frankfurt
and Hamburg in the first quarter
of 2023 compared to the
third quarter of 2021, with only
Munich showing a 13 percent
increase. „The German market
continues to be highly prized
by international luxury brands.
Here, they are consistently focusing
on a strong presence in
prime locations in order to fully
exploit the broad growth potential
and benefit from the increased
demand from customers in
the premium segment,“ says
Daniel Kroppmanns, Director
and Head of Retail Agency Germany
at Savills.
Dubai moves
into focus
In the Middle East, the number
of store openings also increased
significantly compared to 2021
(+ 125 percent). According to
Savills, this continues the trend
observed during the pandemic
of luxury brands increasingly
focusing on comparatively undersupplied,
financially strong
markets.
Dubai in particular is coming
into focus, along with emerging
locations such as Doha. „While
we have seen a large number of
openings in traditional luxury
markets, it has become apparent
that brands are open to a
greater variety of locations and
are likely to diversify in the
future. While Milan, London
and New York continue to be
strong draws for many luxury
brands, low space availability
will reduce transactions in
these markets over the next 12
to 18 months. As a result, we
expect to see more store openings
away from these prime
locations,“ says Marie Hickey,
Commercial Research Director
at Savills.
T
TOPS
O M
OF THE MONTH
TOM
TOPS
OPS F THE ONTH
OF THE
RETAIL REAL ESTATE
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
IMPRINT
MONTH
Publisher:
Business News Group GmbH
Address:
Alexanderstraße 16
45130 Essen
Germany
Tel. 0049-201-874 55 28
Web: www.hi-heute.de
Mail: tom@hi-heute.de
Frequency of publication:
monthly
Circulation: approx. 5000 copies
sent by e-mail
Editorial team: Susanne Müller,
Thorsten Müller
Responsible in terms of press
law: Thorsten Müller
Layout: K4-PR, Essen
THE HO
INTERV
+++ PA
ANALYS
presen
Marc

MOVE
CLOSER

Page 17
T O M
INTERVIEW
June 2023
„Proactive, mutual and positive
synergies for a happy center family“
Interview with Franka Jung-Larsen, Head of Retail & Center Management at APLEONA RE
Franka Jung-Larsen has been
Head of Retail & Center Management
at APLEONA Real
Estate for almost two years.
She was previously with
McArthurGlen and has extensive
international experience
in the retail management
business. TOM editor-in-chief
Thorsten Müller conducted
an exclusive interview with
her. The subject was current
challenges and the right way
to deal with center visitors as
well as tenants and investors.
TOM: APLEONA is a successful
manager of shopping
centers. It‘s always about
creating the best possible value
for the owner, but also for
tenants and customers. What
do you pay attention to?
Franka Jung-Larsen: A „shopping
place“ is only successful if
the target group is understood
and the best possible customeroriented
services are offered.
Why does the customer want
to shop in this particular center
and not go somewhere else or
do the shopping with the click
of a mouse? It is an interplay of
functional need and emotional
attachment. This special feeling
of attraction and loyalty can
only be achieved if a CM team
has the sensitivity for the customer,
the local community, to
deal with and face exactly this
dynamic on a daily basis. In
other words, a dynamic, passionate
team that is always proactively
seeking ways to improve,
open to change, developing
touchpoints along the customer
journey that are aligned with the
specific target audience, and implementing
novel and customfit
experience models. This is
precisely the fundamental key
to a successful shopping mall.
In doing so, we also pay attention
to long-term unique selling
propositions, achieving sustainable
rents from our tenant partners,
developing a customer-focused
ESG concept, leveraging
synergy effects, using sustainable
and digital solutions, and
much more, in order to secure
the long-term commitment of
our investors.
Franka Jung-Larsen, Head of Retail & Center Management at
APLEONA Real Estate.
Photo: APLEONA
TOM: An important aspect in
a functioning shopping center
is a mutually beneficial relationship
between tenants and
CM. In your view, what must
be in place on both sides to ensure
the best possible success
for the center?
Franka Jung-Larsen: The
center management is just as
responsible for the success of a
tenant in a center as the tenant
himself. At APLEONA Real Estate,
we place a very high value
on good and open communication
as well as a cooperative relationship
with our tenants. The
APLEONA center teams are in
close daily exchange with their
tenants and seek proactive, mutual
and positive synergy. This
allows both sides to identify potential,
work through problems
together and act together. In the
end, it‘s a ‚people business‘. A
center itself is a community of
everyone in the center, whether
in the CM, the service providers
and, of course, the employees in
the stores.
One of the main roles of our
center team is to work closely
with our owners/investors and
think together about how we
can support our tenants to achieve
the best possible results. The
moment we contract a new tenant,
the responsibility is also
on our side to help this tenant to
be successful in the long term.
Not only through marketing activities
and measures to increase
the center‘s frequency, but also,
and above all, in welcoming
him or her into the center community
- into the ‚center family.
TOM: How do you manage
to inspire investors for new
projects or major revitalizations,
even though the shopping
center asset class generally no
longer generates as high profits
as it once did?
Franka Jung-Larsen: Shopping
places are lifestyle hubs:
places where you can spend
your everyday life with friends,
family or colleagues.
The world has changed a lot,
especially in the last three to
four years. Online/offline business
has become almost seamless.
People have new values,
less time, are looking for security,
convenience and high value
in their free time. This has
completely changed the way we
shop and spend our leisure time.
Customers want to experience
something, to be surprised, to
have an all-round positive experience
when they set out to
shop.
In plain English, our environment
has changed, which means
we have to redesign ourselves
as well. We need to take a critical
look at the shopping places
we manage. This raises numerous
questions: Is the shopping
offer still up to date? How has
the city, the environment, and
how have people‘s needs evolved?
What is holding us back from
changing our mall? Are we held
back by legacy issues for new
things and approaches? What
if we could reinvent the wheel?
Just completely recast this mall?
We always work on these issues
in close partnership with our investors
and get a lot of encouragement
from them. We need
long-term visions. Work, Live
and Play, and all of this is best
done sustainably. If everyone
shares the same vision, then it‘s
easy to find a consensus.
Sustainable developments towards
„mixed-use centers and
districts“, with a mixture of
different asset classes, for crossfertilization,
i.e. the intensive
consideration of second and
third uses of retail space, are of
central importance here, in order
to give our properties a contemporary,
well thought-out and
broad mix of uses, from which
everyone benefits in the end.
TOM: ESG is becoming increasingly
important. What
are you and your tenants doing
to meet the many tasks
and requirements in the area
of sustainability?
Franka Jung-Larsen: Not only
in the last few months and not
only since we became aware of
our dependence on Russian natural
gas has the topic of energy
costs also come into focus for
retail real estate. Even before
the current price spikes, energy
costs for retail properties sometimes
accounted for more than a
third of operating costs.
While energy consulting with
the goal of cost reduction and
sustainable building management
played hardly any role
a few years ago, especially in
shopping centers where tenants
heavily overlay operating costs,
or was reduced to the optimization
of purchasing costs, this
topic is now rapidly gaining in
importance.

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Page 19 T O M
MAP OF THE MONTH June 2023
Retail turnover growth rate, Europe 2022
GfK’s Map of the Month for July shows the retail turnover
growth rate in 31 European countries in 2022. Across the
EU, retail turnover increased by a total of 6.5 percent in
2022. The highest growth rates were in Eastern Europe, led
by Slovakia with a plus of 23.2 percent. In Sweden, on the
other hand, turnover actually fell by 0.7 percent.

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