TOM 04 2024

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
April 2024
Special events and services are well received by customers.
Incentives to buy through excellent services
How retailers can emerge from the crisis
What measures and services
can retailers use to create new
incentives to buy? The new
ECC CLUB study, which analyzes
the fashion and accessories,
living and furnishing,
consumer electronics and DIY
and gardening sectors, provides
the answers.
In 2024, half of consumers
(51%) will still feel financially
under pressure due to cross-sector
price increases. As a result,
consumer spending is being
postponed, the pleasure of shopping
is being lost and retailers
are facing a variety of challenges.
However, retailers can score
points and break down barriers
to purchase by offering an excellent
shopping experience paired
with unique services across
all channels. This is shown by
the results of the study „It‘s
magic - with channel magic out
of the crisis!“, for which more
than 1,000 consumers who have
purchased products from the above-mentioned
areas in the past
six months were surveyed.
Both online and in-store, it has
long been about more than just
buying products. Consumers
expect special experiences and
still see room for improvement.
This is particularly true for online
purchases: for example, a
third of those surveyed consider
online fashion purchases to
be an experience, compared to
41% in the same sector in-store.
Retailers have a multitude of
opportunities to offer a unique
experience factor, especially in
the retail space. From a consumer
perspective, live product
demonstrations or the opportunity
to test products live are
particularly popular. However,
gastronomic offers, workshops
and events are also attractive
reasons for consumers to visit
stores.
Regardless of the channel, customers
have high expectations
and the majority already expect
many omnichannel services
such as online availability displays,
in-store returns or click
& collect. Retailers who want
Symbolic image: Pixabay / StockSnap
to score points beyond this must
offer additional services, an excellent
channel link and financial
benefits. Regardless of sector
and shopping basket size, 72%
of respondents rate the offer of
a money-back guarantee as relevant
for their purchase decision.
Coupons, discount codes and
bonus programs can also increase
the willingness to buy. But
services are not just about saving
money: Customers are also
willing to pay a premium for
certain services. For example,
almost one in two people (47%)
say they would pay 5% more
for good advice when buying
furniture over the counter. Online,
the willingness to pay is
somewhat lower overall.

Page 2 T O M
NEWS
April 2024
EDEKA breaks through
70 billion euros in sales
In a challenging market environment,
the EDEKA cooperative
network can look back
on a positive business performance
in 2023. Total sales
across all divisions rose by 6.7
percent to 70.7 billion euros,
exceeding the 70 billion euro
threshold for the first time.
Woolworth only opened its
600th store in Germany in
June 2023. Less than a year
later, on April 25, 2024, store
number 700 will follow. The
company is continuing its expansion
course and believes
in the future of bricks-andmortar
retail.
With affordable everyday
items, the discounter appeals to
a broad target group, primarily
price-sensitive shoppers. The
retail concept enables Woolworth
to grow further. Within a
year, the discounter has opened
more than 100 stores in Germany.
On April 25, the company celebrates
the opening of its 700th
store. The milestone store is
located in the Linden-Center in
Berlin-Neu-Hohenschönhausen.
Woolworth operates over
The EDEKA Group can look back on a successful financial year.
Photo: EDEKA / Thomas Schinde
The core business area of the
EDEKA Group is the 6,700
stationary supermarkets and
hypermarkets, most of which
are operated by around 3,400
independent retailers. In 2023,
they once again demonstrated
their ability to adapt creatively
to changing market conditions.
Over the course of the year,
EDEKA entrepreneurs generated
sales of 39.3 billion euros (+
7.7 percent), with like-for-like
sales up by almost five percent.
In line with the cooperative‘s
mission to promote entrepreneurship
within its own ranks,
the EDEKA wholesalers handed
over a total of 91 self-managed
stores into the hands of
independent traders, 45 of them
to start-ups. Over the course
of the year, 122 young entrepreneurs
took the step into selfemployment
with their own
EDEKA store. Over the past
five years, the total number of
start-ups amounted to 538.
30 other stores in the German
capital. „We have 700 stores
in Germany, are continuing to
expand our international store
network and are extending our
logistics complex and head
office. So we are growing in
many ways and bucking the industry
trend,“ explains Roman
Heini, CEO of Woolworth. „In
Germany, we see potential for
more than 1500 stores. We are
moving quickly towards this
Netto Marken-Discount also
continued to develop dynamically
and increased its sales to
17.1 billion euros in 2023, an
increase of 8.5 percent compared
to the previous year (+ 7.5
percent on a like-for-like basis).
In 2023, 116 new Netto stores
were opened across Germany
and 450 locations were modernized.
The group increased
its investments in retail infrastructure
in Germany: a total of
around 2.8 billion euros was
invested in IT, logistics, the expansion
of production capacities
and the opening of modern
stores across the group.
With 249 new retail locations,
EDEKA (133) and Netto Marken-Discount
(116) maintained
their high rate of expansion.
The total sales area of all
11,048 stores increased to 12.1
million square meters (+ 1.1
percent). Investments of around
3.1 billion euros are planned for
the current financial year.
Woolworth reaches next milestone
- already 700 German stores
Woolworth is expanding significantly and will soon open its 700th
store.
Photo: Woolworth
goal.“ The company has recorded
sales of well over one
billion euros and is continuing
its growth course in Germany
and other European countries.
Woolworth has been active in
Austria and Poland since 2023.
Further countries will be added
next year. The retail chain plans
to operate 5000 stores in Europe.
The discounter is headquartered
in Unna, Westphalia.
Ex-Kaufhof
Supervisory Board
Chairman Beetz also
becomes new Galeria
co-owner
In addition to the US investment
company NRDC Equity
Partners, the entrepreneur Bernd
Beetz will also acquire a stake in
the insolvent department store
chain Galeria Karstadt Kaufhof.
The two companies would therefore
form a consortium.NRDC
and Beetz, who is president of
third-division soccer club SV
Waldhof Mannheim, did not respond
to requests for comment.
Retail sales in the
eurozone fall more
sharply than expected
Retail sales in the eurozone fell
more sharply than expected in
February. They fell by 0.5 percent
month-on-month, as reported
by the European statistics office
Eurostat in Luxembourg on Friday.
Economists had expected an
average decline of 0.4 percent.
According to revised data, sales
had stagnated in January. An increase
of 0.1 percent had initially
been calculated.
Purchasing power
2024 in Germanspeaking
countries:
Austria the biggest
winner
With an average per capita purchasing
power of EUR 52,566,
the Swiss will once again have
significantly more money available
for spending and saving in
2024 than the inhabitants of neighboring
Austria and Germany.
Austrians have a per capita purchasing
power of EUR 29,266,
while Germans will be able to
spend an average of EUR 27,848
this year. However, the new GfK
Purchasing Power Study 2024
shows that there are significant
regional differences in terms of
net disposable income not only
between countries, but also within
each country.
According to GfK‘s forecast,
the purchasing power of Switzerland‘s
more than 8.8 million
inhabitants will amount to a total
of 463.4 billion euros in 2024
(excluding Liechtenstein). In
Austria, the more than 9.1 million
inhabitants will have a total
purchasing power of around
266.5 billion euros, while the
total purchasing power

Page 3 T O M
TOP STATEMENT OF THE MONTH
April 2024
TOP STATEMENT
April
„In the retail real
estate industry -
and not only there
- there is always
talk of crises. This
is not really correct,
because it suggests
that things will be
the same again after
a crisis. It would
be better to talk about
changed framework
conditions.“
Sebastian Schels, Managing
Partner of RATISBONA Handelsimmobilien,
Regensburg

Page 5 T O M
ANALYSES April 2024
Retail on investors‘ shopping lists
CBRE analysis observes optimistic mood
The German retail real estate
investment market grew
by 15% year-on-year to EUR
1.7 billion in the first quarter
of 2024. The asset class thus
led the German real estate investment
market as the most
dynamic segment in the past
quarter.
In contrast, the share of the top
seven markets in the retail real
estate market declined - by eleven
percentage points to 49%.
The portfolio share increased
by eleven percentage points, although
it remained low at 23%.
International investors also only
had a market share of 22% (minus
45 percentage points). This
is the result of a recent analysis
by global real estate service provider
CBRE.
Passable start to
the year
„Retail is playing a good role
again and is also on the shopping
list of many investors this
year,“ says Jan Schönherr, Head
of Retail Investment at CBRE
in Germany. „The year got off
to a reasonable start - given the
generally challenging conditions
for real estate investments.
In the meantime, the price expectations
of buyers and sellers
have converged further, we are
seeing a greater willingness to
sell overall, and book values
have been adjusted further over
the last few months in line with
market developments. On the
buyer side, equity-rich family
offices and pri-vate investors
are currently particularly active
in the city center area.“
Higher footfall
„The retail real estate invest
ment market is benefiting from
attractive yields and the end of
the coronavirus debate, which is
directly associated with higher
footfall in city centers. In addition,
consumers are once again
preferring bricks-and-mortar
retail to online retail in order
to enjoy the shopping experience
again,“ says Dr. Jan Linsin,
Head of Research at CBRE in
Germany. Both the ifo business
climate index and the GfK consumer
climate index have also
The investment market for retail properties grew in the first quarter.
Symbolic image: Pixabay / wal 172619
recently shown positive developments.
One-A properties are in demand
Transaction activity was dominated
by single-A retail properties,
which accounted for 47%
of the investment market for
retail properties. In 2023, this
figure was only 31%. This develop-ment
is primarily attributable
to two major transactions in
Munich, in which the properties
had a combined retail volume of
around half a billion euros: Fünf
Höfe and Maximilianstrasse 12-
14. Food-anchored specialist
stores and retail parks came a
close second in the first quarter
of 2024 - accounting for 45%
(2023: 58%).
Prime yields
remain stable
Prime yields have remained stable
in all segments since the end
of 2023 - although there were
significant increases compared
to the first quarter of 2023. The
lowest prime yields were achieved
by food markets at 4.7% (up
0.2 percentage points), followed
by single-A retail pro-perties in
the top seven cities at 4.84% (up
0.75 percentage points). Retail
parks were at five percent (up
0.5 percentage points). Shopping
centers in A locations recorded
a prime yield of 5.9 percent
(up 0.8 percentage points)
- significantly lower than shopping
centers in B locations
(7.2 percent, up 0.7 percentage
points). „The fact that groceryanchored
properties now have
the lowest prime yields shows
that online retail resilience can
now be more important than a
very good location,“ explains
Anne Gimpel, Team Leader
Valuation Advisory Services at
CBRE in Germany.
Further recovery
expected
„Depending on the ECB‘s interest
rate decisions, we expect
the retail investment market to
pick up further in the coming
months and especially in the
second half of the year, with an
in-creasing number of transactions.
There are already attractive
investment opportunities
for in-vestors, and there will be
promising investment options in
all sub-retail asset classes over
the course of the year,“ says
Schönherr. „In terms of transaction
volume in 2024, we expect
between five and seven billion
euros by the end of the year, depending
heavily on whether large-volume
mixed-use sales and
shopping center transactions
take place and whether the portfolio
market picks up.“
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:
Handelsimmobilien Heute Verlagsgesellschaft
mbH
Address:
Alexanderstraße 16
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Tel. 0049-201-874 55 28
Web: www.hi-heute.de
Mail: tom@hi-heute.de
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Circulation: approx. 5000 copies
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Editorial team: Susanne Müller,
Thorsten Müller
Responsible in terms of press
law: Thorsten Müller
Layout: K4-PR, Essen
THE HOT
INTERVI
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ANALYS
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Page 7 T O M
INTERVIEW April 2024
„Neighborhood developments
are not a trend topic, but a megatrend“
Exclusive interview with Julia Steinmetz (Apleona Real Estate Management)
Julia Steinmetz has been Managing
Director and now also
CEO of Apleona Real Estate
Management since 2022 and is
responsible for an even larger
area of responsibility following
last year‘s merger with
FM specialist Gegenbauer.
TOM editor-in-chief Thorsten
Müller recently conducted the
following interview with the
42-year-old.
TOM: Ms. Steinmetz, how did
the first quarter go at Apleona
Real Estate from your perspective?
Julia Steinmetz: Definitely
very positive. The merger with
Gegenbauer and its effects
naturally played a large part in
this. Our company has grown
considerably once again and
now employs around 44,000
people. A number of very good
employees have also joined us
in the area of property management.
In general, we achieve
very good scores in terms of
customer satisfaction. Customers
recommend us to others,
which has also led to us being
able to generate a major contract
in the residential asset class involving
around 6,700 residential
units.
We also have a new company,
fmsc, on board. The engineers at
fmsc specialize in strategic and
operational property management
consulting. We also have
a highly competent consulting
team that primarily deals with
the multifaceted issues of sustainability
and ESG. Apleona
Real Estate Management also
focuses on digitalization and the
strategic expansion of its range
of services. Recruitment and
employee development are becoming
increasingly important
for all companies - we are successfully
driving both forward.
Fortunately, we have very low
staff turnover in the company.
We always try to give our employees
new perspectives and
thus keep them in the company
for a long time.
TOM: The „neighborhood“
asset class has recently become
much more important
and will certainly continue to
do so. Apleona has also been
Julia Steinmetz (here at the MIPIM in Cannes). Photo: HI HEUTE
working intensively on this for
some time. How do you see the
medium-term future in this
respect?
Julia Steinmetz: Neighborhoods
are already seen as having
great potential to meet the
future challenges facing our
cities. Above all, a successful
neighborhood must focus on
the needs of its users. Quality of
stay, connectivity and the underlying
concept are particularly
important. But holistic management,
i.e. integrated neighborhood
management, is also becoming
increasingly important.
Together with the well-known
communications agency RUE-
CKERCONSULT, we conducted
a survey at the end of 2023
that revealed precisely these
tasks and objectives. A total of
94 representatives from companies
in the real estate sector
took part. The survey was supplemented
by interviews with
experts, including Dr. Thomas
Beyerle, Managing Director of
Catella Property Valuation, Jens
Hausmann, Managing Director
at Groß & Partner, Prof. Dr.
Marion Peyinghaus, Managing
Director of CCPMRE and Franka
Jung-Larsen, Head of Retail,
Center & Quartier Management
at Apleona Real Estate Management.
TOM: What are the most important
findings and results of
this survey for you then?
Julia Steinmetz: A large majority
of respondents share the
view that districts and district
developments are not a trend
topic, but rather a megatrend.
Urbanity, sustainability, the
15-minute city and the necessary
merging of complementary
uses and functions will lead to a
significant increase in neighborhood
projects - both in new and
existing buildings. However,
neighborhoods place special
demands on property management.
This was stated by almost
all survey participants. The focus
here is on interest management,
i.e. balancing the interests
of the various user groups. Other
special requirements include
networking between users and
the presence of the neighborhood
manager on site as a local
contact.
TOM: What makes the difference
between good and notso-good
neighborhood management?
Julia Steinmetz: Unfortunately,
brand management and the
associated emotional aspects
are often neglected in the management
of neighborhoods.
Traditional property management
alone is not enough. Different
buildings, owners and
users of a neighborhood must
be brought together to form a
whole and the urban context in
which the neighborhood is embedded
should not be ignored
either. After all, you want to be
perceived as a good neighbor.
Brand management therefore
includes the transparent involvement
and information of
users, active maintenance of
the social media presence and
the planning and implementation
of events. All activities
must be precisely aligned with
the positioning of the neighborhood
and any potential disturbances
for users.
TOM: What does Apleona
deal with specifically in terms
of neighborhood management?
Julia Steinmetz: Among other
things, we have been managing
the „Tacheles“ in Berlin for
some time now: this is a very
good example of a neighborhood.
Here, we experience in
everyday life exactly what is generally
perceived as a challenge
in neighborhoods. The presence
of a manager on site who has a
feel for and knowledge of the
needs of visitors and those who
work there is extremely important.
And of course we are constantly
on the lookout for further
properties, most recently at the
Mipim in Cannes, where numerous
cities and regions presented
their construction projects.
TOM: Do shopping centers
also have the potential to become
neighborhoods?
Julia Steinmetz: In many cases,
definitely yes, as do former
department stores in city center
locations. Here, too, it depends
on the right new mix of uses.
Especially where the previous
business model cannot be sensibly
continued, there is a huge
opportunity in the transformation
into a functioning district
- not only for the investors concerned,
but also for the city in
question. This is how vacancies
can be avoided and city centers
revitalized.

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
retention and the sustained development of your centre in mind.
We go one step further for you.
Joaquin Jimenez Zabala
Tel. +49 162 7861-324 joaquin.jimenez.zabala@wisag.de

Page 9 T O M
NEWS April 2024
MEC manages
a further eight locations
MEC is significantly expanding
the portfolio of retail locations
it operates. The Düsseldorf-based
company has
now concluded an agreement
with the investment consultancy
SCP Group for the management
of eight German
retail locations with a total
rental space of around 130,000
square meters.
With the expansion of its portfolio,
MEC now operates almost
80 retail locations across Germany
with a rental area of over
1.7 million square meters. The
mandate includes retail properties
in Bochum, Duisburg, Edingen-Neckarhausen,
Haßloch,
Hildesheim, Kaiserslautern,
Cologne and Schwerin. This includes
large-scale individual locations
as well as the operation
of established retail parks. These
include the Duisburg Mercator
Center, the Sieben Seen Center
in Schwerin and the Pfalz Center
in Kaiserslautern.
MEC will not only take over the
management of the properties
for SCP, but will also contribute
its own leasing expertise with its
broad network of retail tenants
to the operation of the locations.
In addition, MEC will further
optimize some of the properties
together with SCP.
GLOBUS Markthallen is massively
expanding its e-charging parks
GLOBUS Markthallen is
systematically expanding its
charging infrastructure and
thus helping to drive forward
the mobility transition in Germany.
To this end, the company
is the first and so far only
retailer to work in parallel
with two charging network
operators.
Together with EnBW and Tesla,
GLOBUS is building charging
parks at around 50 market hall
locations by the end of 2024.
This will create a total of at least
800 new fast charging points for
electric vehicles and the largest
charging parks in the German
food retail sector.
Contribution to
CO2 reduction
The first location with charging
stations from both providers has
now opened at the GLOBUS
market hall in Limburg, Hesse.
Customers will have 16 EnBW
fast-charging stations and ten
Tesla charging points at their
disposal from the start.
Düsseldorf-based MEC now manages eight retail locations for the
investment consultancy SCP, including the Sieben Seen Center in
Schwerin.
Photo: MEC
The first location with charging stations from both providers has
opened at the GLOBUS market hall in Limburg. Photo: GLOBUS
„We see the improvement of
the charging infrastructure at
our market halls not only as
our contribution to the mobility
transition and part of our commitment
to sustainability,“ says
Thomas Hewer, CEO of GLO-
BUS Markthallen.
„Our customers in particular
benefit from a safe, convenient
and, above all, affordable charging
service at all times.“ „Fast
charging at retail outlets makes
e-mobility easy for everyone,“
says Jürgen Stein, Chief Innovation
& New Business Officer
at EnBW and responsible for e-
mobility. „While customers are
shopping, they can charge their
car with enough range for the
next few days. GLOBUS is therefore
a key partner in the further
expansion of what is already
Germany‘s largest fast-charging
network and for the convenient
charging of e-cars in everyday
life. Together with GLOBUS,
we are driving forward more
sustainable mobility and helping
to reduce CO2 emissions in
transportation.“
Opening of
Überseequartier
postponed to the
end of August
The Westfield Hamburg-
Überseequartier was originally
due to open its doors at
the end of the month, but due
to water damage, the opening
has had to be postponed at
short notice.
The real estate company Unibail-Rodamco-Westfield
has
announced that the opening,
originally scheduled for April
25, will be postponed to the
end of August. In the basement
of the shopping center,
which is still under construction,
there has been a local
ingress of groundwater in
the area of a central technical
system, which means that it
cannot be put into operation
in the short term.
Analysis of the damage has
begun. In view of the seasonal
retail calendar and the
summer vacations, which this
school year in Hamburg run
from July 18 to August 28, the
new date, which is still vague,
has been chosen.
More than 70
Galeria stores
to be kept open
The new owners of Galeria
Karstadt Kaufhof want to get
the insolvent department store
chain back on the road to success.
„We believe in the future
of Galeria and have only
one focus: the department
store,“ said investor Bernd
Beetz yesterday lunchtime in
Essen. The department store
is part of the German way
of life. Together with the US
investment company NRDC,
the 73-year-old is forming a
consortium that wants to take
over Galeria.
The new owners would probably
continue to operate
more than 70 of the current
92 stores, said insolvency administrator
Stefan Denkhaus.
This figure is part of the investor
agreement, which was
notarized on Tuesday. We already
reported yesterday that
Beetz and NRDC were to win
the bid in the bidding process
(and have since done so).

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 11 T O M
CENTERS April 2024
From mixed-use to events, many shopping centers are looking for concepts to position themselves for the future.
Symbolic image: Unsplash / Krisztina Papp
Shopping centers reposition themselves
White paper sheds light on the situation of the asset class
Shopping centers find themselves
in a challenging competitive
environment. Global
crises and war situations are
driving up costs, unsettling
customers and resulting in a
reluctance to spend while at
the same time reducing rental
income.
Despite the difficult waters,
center managers are trying to
develop solutions to make their
centers fit for the future. Mixeduse
is already a proven trend, as
are measures such as increased
and cost-saving energy efficiency
and attractive events.
Decline in rental
volume
„Of course, these can be sensible
measures to combat vacancies
and declining visitor frequency.
However, it is impressive to see
the different lines of development
that are emerging in shopping
centers,“ says EHI study
author and retail real estate expert
Lena Knopf, explaining the
results of the white paper „Center
Management in Focus“ by
EHI and GCSP.
In a clear majority of around
two thirds of centers, the rental
volume (excluding ancillary
costs) declined between 2021
and 2023. The two main reasons
for this are subsequent lettings
with lower rents to retailers and
rent reductions on existing contracts.
Events increase
attractiveness
Only in the more recent centers
built after 2010 did the proportion
with increased rental income
outweigh the proportion
with decreased rental income.
The centers with retail space of
between 30 and 40,000 square
meters performed the worst.
The smallest centers with ten to
20,000 square meters of retail
space performed best, with the
lowest proportion of decreased
rental income and the highest
proportion of increased rental
income. Increased mixed-use
concepts such as leisure facilities
or medical services are attracting
new tenants to shopping
centers.
Events are an established measure
to increase the attractiveness
of a shopping center and
strengthen customer loyalty.
Seasonal occasions such as
Christmas or Easter (93%) promise
the greatest success, followed
by fun events suitable for
families (73%). Overall, many
centers (43%) are organizing
fewer events than before the
pandemic or the same number
(46%). The larger centers are in
the lead. The smaller the center,
the more difficult it is to host
many successful events. Every
second small center under
20,000 square meters reduces
the number of events, but only
around one in three large centers
with 40,000 square meters
or more.
Frequency and
turnover
Visitor frequency - often measured
using video, light or laser
technology - has fallen in 54%
of shopping centers compared
to the pre-coronavirus level in
2019, but 30% have observed
a constant frequency and only
16% are happy about more customers.
However, retail sales
are looking slightly better. At
35%, they are higher or even
significantly higher, and at 29%
they are at a similar level - even
though this growth is currently
accompanied by relatively high
inflation rates, which means that
many retail sectors have been
able to increase their sales in
nominal terms but not in real
terms.
Often moderate
vacancy rate
More than half of the centers
(57%) have a moderate vacancy
rate of up to 5% of the retail rental
space. A good third (34%) of
centers even have a low vacancy
rate of up to 3% this year, although
this was almost twice as
many (66%) in 2019. The proportion
of centers with vacancies
of more than five percent
has more than doubled from 19
percent in 2019 to 44 percent in
2024.

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Page 13 T O M
GUEST CONTRIBUTION April 2024
How bricks-and-mortar retailers
can find and retain footfall
Guest article by Dr. Philipp Hoog, Member of the Management Board of BBE, Munich
In 2024, the retail sector still
faces two all-too-familiar but
all the more present challenges.
Firstly, despite a noticeable
recovery in some areas,
footfall in the city center is still
not back to pre-coronavirus
levels. Above all, tourists with
purchasing power are missing.
This is result-ing in more
and more stores closing, and it
is realistic to assume that we
will lose around 20 percent of
all city center retail tenants in
the medium term. Secondly, e-
commerce is putting pressure
on retailers with a wide range
of goods and a rather vaguely
defined target group in particular
- because it almost inevitably
creates price advantages
to the detriment of bricksand-mortar
retailers.
What should retailers do against
this backdrop? The most important
aspect of a successful
re-tail space is a clear profile
with a defined target group, a
carefully curated product segment
and motivated staff with a
high level of advisory skills.
However, in order for these
advantages to come to fruition
in the first place, the lower frequency
must be optimally exploited.
In other words: where
there is a lack of quantity, retailers
should focus on quality. It
is therefore important to attract
passers-by into the stores with
modern drive-to-store strategies
- and to stimulate purchases.
„Drive to store“
combines online
with offline
The starting position for this is
better than expected: In a survey
recently conducted by BBE,
it emerged that city centers are
becoming more popular again,
especially among younger people.
According to the survey,
around 43 percent of under-24s
visit the city center more often
than five years ago. The most
frequently cited reason was
„shopping“. However, new means
are needed to get to grips
with the old challenges.
Dr. Philipp Hoog
Online and offline retail have
long since merged in many respects.
Customers do not differenti-ate
between the channels,
which is why retailers should
also focus on a mixture when
addres-sing them. This can be
seen very clearly in modern drive-to-store
measures, the aim
of which is the aforementioned
frequency skimming.
These include regional newsletters,
selected discount campaigns
for which the customer
has to come into the store, or a
Google page with lots of positive
reviews (which retailers are
also allowed to ask their customers
for). The now established
click-and-collect system also
Photo: BBE
attracts customers to the store,
where the chance of additional
impulse purchases is very high.
Aug-mented reality allows products
to be experienced in a
virtual environment - and also
impresses with an undeniable
coolness factor. An important
side effect: all these measures
generate a huge amount of data,
which in turn can be used by retailers
to get to know their own
customers even better. This in
turn allows target groups to be
further honed and product ranges
to be put together even better.
The creative use of social media
also has enormous potential.
It‘s less about posting regularly
- and more about creating incentives.
A salesperson who films
the „unboxing“ of new goods
and posts it on TikTok is the best
example. An Instagram reel that
invites people to a fashion show
in the store combines modern
online communication with an
event in the store that stands
for the quality of experience in
stationary retail. If the event is
then filmed and later appears
in the timeline, the synthesis of
the online and offline worlds is
perfect. Another way to attract
new customers to the space is
to cooperate with other local
businesses. After all, the perfect
eve-ning outfit also needs the
right perfume, right?
It is important to emphasize that
none of these measures is a universal
solution in itself. Each
retailer should set their own
priorities and plan their implementation
carefully. Continuous
market observation and the ability
to adapt to new trends are
fundamental.
These are the prerequisites for
a holistic concept that clearly
sets the retailer brand and the
„look and feel“ apart from the
competition. It‘s not just about
being as pleasant as possible for
customers - now more than ever,
it‘s important for retailers to be
distinctive.
Conclusion: More
experience per
square meter
Sales area productivity equals
sales per unit of time divided
by pure sales area. This wellknown
formula for the key figure
„sales persquare meters“ still
dominates the analyses of many
retailers. However, modern
stationary retail thrives on the
„experience per square meter“.
This can even go as far as converting
indi-vidual areas in the
store and integrating a gastronomic
offering, for example. For
a sports retai-ler, on the other
hand, it can make sense to set
up one or two fitness machines.
The result is satisfied customers
who enjoy the experience and
are all the more likely to buy.

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Page 15 T O M
INNOVATIONS April 2024
ALDI SOUTH relies on
gamification to find applicants
With its new digital HR campaign,
ALDI SOUTH is focusing
on gamification in its
search for experts in sales. The
company is now immersing itself
in the world of gaming under
the motto „Level up“ and
using familiar game elements
that allow users to get to know
everyday working life in the
store in a playful way.
According to a recent study by
Bitkom Research, it is not only
the younger target group between
the ages of 16 and 29 who
regularly play computer or video
games in everyday situations.
74 percent of 30 to 49-year-olds
and 46 percent of 50 to 69-yearolds
also have a preference for
the gaming world. With the new
HR campaign, ALDI SOUTH
is addressing precisely this target
group and at the same time
making everyday working life
in sales virtually more tangible.
„As part of the core business,
my heart naturally beats for sales,“
says André Giesen, Group
Director Human Resources at
ALDI SOUTH. „At the ALDI
SOUTH Group, sales activities
are diverse and talent is not only
recognized, but also encouraged
and valued. Having fun at work
is particularly important to us,
ALDI SOUTH is looking for new applicants in innovative ways. Photo: ALDI SOUTH
as this is the only way to fully
utilize individual skills and performance.“
In order to achieve the greatest
possible attention, the campaign
will be played out in the form of
various clips on outdoor screens
and via Connected TV on Netflix
and Prime Video as well
as on YouTube. In addition,
Instagram users can try out the
campaign‘s gaming filter on the
ALDI SOUTH careers channel
for the first time and playfully
prove their skills at the checkout.
In this way, ALDI SOUTH
wants to address the target
group exactly where they are.
This is because almost 35 percent
of potential applicants
search for jobs or career-related
information on Facebook and
30 percent on Instagram. This is
how the ALDI SOUTH Group
aims to counteract the shortage
of skilled workers in its stores.
The media agency PHD Germany
and the HR marketing
agency EMBRACE are responsible
for the employer branding
campaign.
Smart shopping carts
instead of „Just Walk Out“
According to a report by
technology portal The Information,
Amazon wants to say
goodbye to its „Just Walk
Out“ cashierless supermarkets.
Instead, Amazon dash
carts, i.e. self-checkout tills
converted into shopping carts,
are to be used in most stores.
When customers place goods
from the shelf into the shopping
cart, these products are automatically
scanned and added
to the bill. The process can be
controlled via a touchscreen
on the handle of the Dash Cart.
Amazon has now confirmed the
switch to smart shopping carts
at Amazon Fresh locations in
Amazon wants to change the technology in its supermarkets.
Photo: AdobeStock
the USA: „Just Walk Out“ will
initially only be used in a small
number of Fresh stores in the
UK and in some Amazon Go
supermarkets.
Background: With the Just Walk
Out technology, a complex camera
system recorded every
inch of the supermarket. However,
instead of fully automated
computer monitoring, more
than 1,000 people in India are
to evaluate the exceptions and
mark them manually.
The cashiers were therefore
removed from the store and
placed elsewhere on the globe,
from where they observed the
customers. According to The
Information, around 700 out of
1000 purchases had to be analyzed
in this way because the system
was unable to do so. This is
well below Amazon‘s original
target of 50 out of 1000 visits.

Page 16 T O M
MAP OF THE MONTH April 2024
GfK Purchasing Power for Germany, Austria and Switzerland 2024
GfK’s Map of the Month for April shows the regional distribution
of purchasing power in Germany, Austria and
Switzerland in 2024. With an average per capita purchasing
power of €52,566, the Swiss once again have significantly
more money available for spending and saving in
2024 than the inhabitants of Austria and Germany. Austrians
have a per capita purchasing power of €29,266, while
Germans can spend an average of €27,848 this year. However,
there are significant regional differences in terms of
net disposable income not only between countries, but also
within each country. In Switzerland, the district of Hoefe
in the canton of Schwyz takes first place by some distance.
People there have an average of €131,932 at their disposal,
which is more than 3.4 times as much as the inhabitants
of Bernina, the region with the lowest purchasing
power (€38,590). Among Austrians, Vienna‘s 1st district
(inner city) is in the lead with a per capita purchasing power
of €42,495, while Vienna‘s 20th district (Brigittenau)
brings up the rear with €23,371. In Germany, the district
of Starnberg leads the district ranking with a per capita
purchasing power of €38,702; Gelsenkirchen comes last
with a spending potential of €22,007 per inhabitant.