URBAN CREATORS. Architecture | Development & Project Management European Council of Shopping Places (ECSP) Awards: Commendation for Best Renovation/Expansion for centres between 15.000 – 45.000 sqm
Page 7 NEWS December <strong>2023</strong> Battle for market share with non-food discounters Atradius expects a wave of consolidation Stinginess is cool - this consumer leitmotif seems more relevant than ever in view of the inflation rate, high energy prices and declining propensity to consume. But not everyone benefits from this motto. While it‘s all sunshine and roses at the food discounters, the competitive pressure is increasing at non-food discounters - i.e. suppliers of inexpensive textiles, shoes, drugstore products and household goods. „We expect a wave of consolidation among non-food discounters in the medium term,“ says Frank Liebold, Country Manager Germany at international credit insurer Atradius. Tedi, Kodi, Thomas Philipps, Woolworth, Pfennigpfeifer and Co. are facing numerous challenges. In particular, the increases caused by inflation, minimum wage increases and higher personnel costs are weighing on the companies. Energy costs and rent increases are also leading to considerable additional expenditure. This is because companies pay index-linked rents linked to the consumer price index, and these have developed well to well in recent years. „However, as companies cannot pass on cost increases to their customers on a one-to-one basis, this is at the expense of profitability,“ explains Frank Liebold. The margins of non-food discounters have already fallen from six to ten percent to just two to four percent. They are also suffering from declining footfall in city centers, where most of their stores are located. „Discounters that don‘t sell food are coming under increasing pressure. And only the large market players with the corresponding purchasing power will be able to survive on the market,“ emphasizes Frank Liebold. According to Atradius, additional pressure is being exerted on the domestic top dogs by internatio- Photo: Tedi nal competitors who are forcing their way onto the German market - above all the Dutch company Action and the Polish provider Pepco. According to market research institute GfK, Action grew by 39% in the first six months of <strong>2023</strong>, while Tedi, previously the market leader, only grew by 19%. Pepco is also pursuing ambitious goals. The Polish chain for clothing and household goods wants to open 2,000 stores in Germany. Pepco already has around 3000 stores across Europe. As a result, the battle for customers is intensifying. „The cake isn‘t getting any bigger, but has to be spread across more providers - and that intensifies the battle for market share,“ says the head of Atradius Positive trend at the Schwarzwald-Baar-Center New anchor tenant and refurbishment in Villingen-Schwenningen Action Deutschland GmbH (Action) has opened its doors in the Schwarzwald-Baar- Center in Villingen-Schwenningen. The non-food discounter has leased and refurbished an area of almost 1,391 square meters in the existing property of Berlinovo Immobilien Gesellschaft mbH (berlinovo) on a long-term basis, of which around 920 square meters is retail space. By letting this part of the space, berlinovo is continuing the positive trend in the development of this important commercial location. VÖLKEL Real Estate GmbH, which is responsible for center management, brokered the lease agreement between Non-food discounters are currently facing a number of challenges. New anchor tenants Action and Kaufland have moved into the Schwarzwald-Baar-Center. Photo: Schwarzwald-Baar-Center berlinovo and the international company Action. Carsten Pohnke, Head of Commercial Real Estate Management at berlinovo: „The opening of the Action store shows Eurozone trade balance with higher surplus The foreign trade surplus in the eurozone increased in October. The trade surplus as the difference between exports and imports rose from 8.7 billion euros in the previous month to 10.9 billion euros after adjustment, according to the statistics office Eurostat in Luxembourg. Analysts had on average only expected an increase to ten billion euros. This development is due to increased exports and lower imports. Exports climbed by 0.7 percent, while imports fell by 0.3 percent. Foreign trade in the 27 countries of the European Union (EU) developed similarly to the 20 countries of the European currency area. Almost one in four Germans would pay for gift tips with data 24% of Germans are willing to disclose their personal data in return for help in finding the perfect Christmas present. This makes Germans the most willing to provide information in Europe, while the Dutch (18 percent), French (16 percent) and British (11 percent) responded more cautiously in a survey conducted by Zendesk, according to a press release. When it comes to the use of AI, Europeans are that our concept of establishing a varied mix of well-known national and international brands and integrating local players is working. The Schwarzwald- Baar-Center is one of the bestknown and most popular shopping centers in the region. This makes it all the more important to ensure that it remains an attraction for local people.“ The opening of the Kaufland store in September of this year was already a noticeable stimulating element. The retailer has leased a section of around 7100 square meters in the Schwarzwald-Baar-Center on a longterm basis and acts as the anchor tenant of the property. Kaufland closed the gap in the food supply that had arisen following the withdrawal of the hypermarket chain real in 2021. With the arrival of Action, another vacant space has now been put to longterm use in line with customer requirements.
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