TOM June 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
June 2024
The food retail sector is operating in a highly competitive environment.
Food retail under
intense competitive pressure
Youngest Report of the German Retail Association also analyses consumer demands
The latest food retail report
from the German Retail Association
shows the complexity
of the value chain, the intensity
of competition in the food
retail sector and consumer expectations
of the industry.
„The food retail value chain is
complex. Food retailers have an
important position here, but not
an absolutely market-significant
one compared to producers and
growers,“ says HDE Managing
Director Stefan Genth. With its
well-known supermarkets and
discounters, the food retail sector
is present with consumers
on a daily basis. However, it
only buys a fraction of the agricultural
products produced in
Germany from the preliminary
stages. Only twelve per cent of
the fresh milk produced in Germany
ends up on the shelves of
food retailers. According to the
Food Trade Report, the food
industry and wholesalers as importers
in particular generated
the highest sales in 2023.
„The role of food retailers in pricing
is therefore subordinate on
the market,“ Genth continued.
Numerous product groups are
characterised by foreign trade
and demand from the food processing
industry. „In the case of
fresh food, food retailers are not
the most important negotiating
partner for agricultural producers.
The recurring discussions
about the role of food retailers
in the level of farmers‘ earnings
are therefore not expedient,“
emphasised Genth.
The Food Trade Report also
shows that consumers have high
expectations of food retailers.
For around two thirds of consumers,
a product range with the
best possible price-performance
ratio is particularly important. A
large selection of different products
(60.9 per cent), consistently
high product quality (60.5
per cent) and good accessibility
of shops (59.8 per cent) are also
among the most important services
provided by food retailers
from a consumer perspective.
„The food retail sector meets
the wishes of consumers with
Symbolic image: Pixabay / TaWiPoP
a variety of different business
concepts and a wide range of
products and assortments. Reliability,
quality and variety are
valued by customers,“ continued
Genth.
Interest in the food retailer‘s
own brands has grown in recent
years. Over 85 per cent of those
surveyed think it is good when
own brands are offered in shops
alongside branded products. A
range of organic products is also
important. This is now expected
by more than 60 per cent of respondents.
„Customers‘ price
sensitivity and their increased
awareness of sustainability are
reflected in the product ranges
and offers of food retailers,“
says Genth.

Page 2 T O M
NEWS
June 2024
ECE‘s Retail Meeting
celebrates its anniversary
Around 800 participants at the industry get-together in Hamburg
Twenty years of networking
and exchange in the retail real
estate sector: at this year‘s
edition of ECE Marketplaces‘
international Retail Meeting ,
around 800 top decision-makers,
experts and partners
from the retail, hospitality,
placemaking and entertainment
sectors met in Hamburg‘s
Fischauktionshalle to
exchange views on current
topics as well as the opportunities
and challenges in the
retail real estate sector.
Numerous industry players took part in ECE‘s twentieth Retail
Meeting.
Photo: ECE
The ECE Retail Meeting was
first held in 2003 and has since
developed into the largest
industry meeting of its kind
in Europe. This year‘s discussions
and the panel talk at the
start with high-ranking speakers
focused on the diverging
development in the retail sector
with a continuing high number
of insolvencies on the one hand
and many successful expanding
concepts on the other, the great
importance of future-oriented
investments and partnershipbased
cooperation between
tenants and investors for the
sustainable success of retail locations
as well as success factors
for the stable performance
of shopping centres.
Common
understanding
„The large number of participants
at our Retail Meeting
shows us once again how important
it is to work in partnership
and have a common understanding
of the opportunities
and challenges in the industry in
order to successfully move the
retail real estate sector forward
and develop it for the future,“
says Joanna Fisher, CEO of
ECE Markeptlaces. „Successful
examples of best practice and
the positive developments in the
shopping centre segment are a
good basis for driving forward
the necessary transformation together.“
European GfK study:
Luxembourgers spend
the most money in the
retail sector
According to a recent GfK
study, the average European
spends 6,517 euros per year
in the retail sector. Purchasing
power is highest in Luxembourg
at 12,067 euros and lowest in
Romania at 2,986 euros. Switzerland
follows in second place
with 11,617 euros , Austria in
eighth place with 8,041 euros;
Germany is in mid-table with
6,667 euros, in 13th place out of
25. Overall, the countries analysed
have a spending potential of
3.4 trillion euros.
Paunsdorf Centre and
Skyline Plaza are
apparently to be sold
Apparently, two large shopping
centres are being offered for
sale. According to information
from Thomas Daily / CoStar
News, Unibail-Rodamco-Westfield
is planning to sell the
Paunsdorf Centre in Leipzig
(via CBRE). In addition, the
Skyline Plaza shopping centre
in Frankfurt, owned by Pimco
Real Estate, CA Immo and ECE,
is also coming onto the market
(via JLL). The Paunsdorf Center
was opened in 1994 and modernised
in 2012 with the purchase
by URW.
Opening date for Überseequartier finalised
URW initially prioritises retail, gastronomy and leisure
Aftersome back and forth, the
date for the grand opening of
Westfield Hamburg-Überseequartier
has now been finalised.
The grand opening will
take place on 17 October.
Westfield Hamburg-Überseequartier opens in mid-October.
Visualisation: URW
Jakub Skwarlo, Chief Operating
Officer Central Europe at Unibail-Rodamco-Westfield,
says:
„With the opening of Westfield
Hamburg-Überseequartier, we
are creating a new piece of city
for Hamburg and bringing the
heart of HafenCity to life. It is a
unique urban development project
in which a former industrial
site is being transformed into a
vibrant place for people, especially
for the local community.
Together with our partners from
the retail, catering and entertainment
sectors as well as offices,
hotels and residential properties,
we are working with full
commitment towards the opening
and are looking forward to
the Grand Opening. We are all
firmly convinced of the attractiveness
and uniqueness of the
project. We are looking forward
to this milestone and would like
to express our sincere thanks to
all those involved and our partners.“
Occupancy rate 93
per cent
As planned, the residential, office
and hotel spaces will be occupied
and opened successively
after the grand opening.
The focus of the opening on
17 October will be on retail,
gastronomy and leisure with
entertainment and culture. The
occupancy rate for these areas is
currently 93 per cent, and only
a few units are still available in
the quarter.

Page 3 T O M
TOP STATEMENT OF THE MONTH June 2024
TOP STATEMENT
June
„There is an obligation
to open in the shopping
centres, which is
stipulated in the rental
agreements. Nevertheless,
due to a lack of
staff, various tenants
are hardly in a position
to fully implement
this.“
Joachim Will (ecostra), who
produces the annual „Shopping
Centre Performance Report“
for Germany and Austria with
his company in an article of the
in an article in the trade journal
„Textilwirtschaft“

Page 5 T O M
ANALYSES June 2024
Delivery services: market
shakeout now evident
Aengevelt Research: This has had an impact on the property industry
According to analyses by the
Düsseldorf-based real estate
services company Aengevelt,
delivery services were recently
regarded as stars of the
start-up scene and as a rapidly
expanding, financially
strong demand group for inner-city
commercial space to
set up the necessary warehouses
close to customers. In the
meantime, many have become
disillusioned.
Examples of recent problematic
developments include the Getir
group of companies, which
first took over struggling sector
competitor Gorillas, but is now
withdrawing from numerous
markets itself. Picnic, on the
other hand, continues to expand
strongly and is increasing its annual
turnover, but also - at least
so far - its annual losses.
Food delivery services are in a phase of market consolidation.
Food delivery services are by
no means a new development.
Frozen food suppliers Bofrost
and Eismann, for example, have
been on the market since 1966
and 1974 respectively. Regional
beverage suppliers have also
been active on regional markets
for a long time and have
gained a national competitor in
Flaschenpost. Restaurants have
been offering delivery services
for decades, which they finance
in part from the difference between
the full VAT rate for food
consumed in the restaurant and
the reduced VAT rate for delivered
meals. Online portals such
as Lieferando have entered this
segment.
A new market segment is delivery
services that offer online
orders and home deliveries for
the typical product ranges of
discount food retailers, such
as fruit and vegetables or dairy
products. These include REWE,
Flaschenpost, Gorillas and Picnic.
This segment in particular
also requires commercial space
close to customers in city centres
in order to store the corresponding
product range and
deliver it to end customers quickly.
There are several drivers for the
expansion of the delivery business.
For example, digitalisation
has simplified and accelerated
the ordering process, meaning
that customers now only need
three minutes on average to place
an order, which usually saves
them more than half an hour of
valuable time that they would
have had to spend shopping in a
shop. What‘s more, the coronavirus
pandemic has fuelled online
retail as a whole, which has
also benefited food delivery services.
The growing trend among
the younger generation in urban
areas to do without their own
cars is also fuelling interest in
delivery services. According to
Aengevelt‘s forecast, most of
these factors will become even
more important in the future,
even once the pandemic is over
and bricks-and-mortar retail has
regained market share.
However, delivery services are
an „emerging market“. Aengevelt
Research points out that
such new developments and
trends exhibit typical cycles until
they develop into „mature“
markets. Typically, new goods
or services are initially adopted
by „innovators“, who are
usually younger, have a higher
level of education and income,
are willing to take risks and are
also able to pay higher prices
for new offers or forms of supply
because they see themselves
as avant-garde. These pioneers
are generally followed by „early
adopters“, who are also characterised
by higher education and
higher income and see the use
of new goods or services as a
welcome attraction and also a
source of prestige. Innovators
and early adopters enable providers
of new products to compensate
for typical initial losses
more quickly through higher
prices and to achieve the economies
of scale required to win
over the mass public more quickly.
Electronic gadgets, wellness
services and electric vehicles
are good examples of this
emerging market cycle. On the
supplier side, emerging markets
are characterised by the fact
that numerous start-ups enter
the markets in the early phase,
some of which are taken over
by companies that are generally
quite well-funded, while at the
Symbolic image: AdobeStock
same time the market is being
shaken out.
Delivery services differ from
other emerging markets in that
they did not start out with particularly
high-quality and highpriced
products such as organic
food or luxury food. Instead,
they have demanded low to
extremely low delivery prices
from the outset in order to lure
customers away from bricksand-mortar
retailers.
For property owners, this means
that, depending on business
development and strategic (re)
orientation, shops rented by
delivery services could be relinquished
after a relatively short
time, for example if the providers
withdraw from the local
market or withdraw completely
from Germany. Conversely, the
delivery services that remain on
the market will build up a hierarchy
of locations - with supraregional
goods distribution centres,
urban logistics centres and
small to medium-sized hubs at
district level, for example if deliveries
are made by cargo bike
and not by small trucks.

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Page 7 T O M
GUEST CONTRIBUTION June 2024
Anything but sustainable
Why Temu, Shein and co. need to be put in their place - an opinion piece by well-known
specialised journalist Christian Hunziker
It is always fascinating to
look around the Temu and
Shein websites. If you absolutely
need a stainless steel
prawn peeler - no problem,
you can order one from Shein
for 1.24 euros. If you fancy a
set of four gold-coloured cake
shovels, you can get them for
1.63 euros. Five pairs of boxer
shorts for 7.79 euros, a pair of
children‘s shoes for 9.09 euros,
a laptop for 195.48 euros:
Competitor Temu also leaves
nothing to be desired for the
price-conscious consumer.
Anyone who spends even an
occasional amount of time on
social media channels cannot
avoid the Chinese trading platforms.
Their rise has been meteoric:
within a very short space
of time, they have become serious
competition for Amazon,
Otto and Zalando. According to
ECC Cologne‘s „Trend Check
Retail“, 91 per cent of consumers
are familiar with the new
platforms from Asia and 43 per
cent use them.
The protest
is forming
Christian Hunziker has been working as a freelance journalist for
many years and writes regularly for the FAZ and the business magazine
Capital. He wrote the introductory chapter for the latest HI
HEUTE book „TRANSFORMATION INNENSTADT“. He has now
written a detailed opinion piece for us on the topic of „Shein, Temu
and Co.“
At the same time, resistance to
the marketplaces from the Far
East is growing. In Germany,
the Federation of German Consumer
Organisations has issued
a warning to Shein, claiming
that the platform violates the
EU‘s Digital Services Act in several
respects. Specifically, the
consumer advocates criticised
the seemingly arbitrary discount
levels and the lack of information
in star ratings, among other
things. At European level, the
consumer organisation BEUC
has filed a complaint against
Temu with the EU, also citing
violations of the Digital Services
Act.
In March, the French parliament
even adopted concrete measures
with regard to the platforms, including
an environmental levy
on non-sustainable products.
Germany has not yet made
such progress. Nevertheless, the
Bundestag‘s Committee on Digital
Affairs debated a report by
the German government in June
that deals with measures „to ensure
compliant behaviour by online
retailers Temu and Shein in
Germany and Europe“.
But cultivated debates are not
enough. Effective measures are
needed to put the platforms in
their place. Of course, Temu,
Shein & Co. should not be
fought to protect their own business
from unwelcome competition.
Market economy principles
must also apply to this issue
- but that also means adhering to
the rules of the market economy.
And this is precisely where
the crux of the matter lies. Stephan
Tromp, Deputy Managing
Director of the German Retail
Association (HDE), is right
when he says: „Anyone who offers
and sells goods in this country
must also abide by our rules
and laws.“
Poor product
quality
But this is a problem - for several
reasons. Firstly, many
products do not fulfil consumer
protection requirements. Customers
and mystery shoppers report
significant quality defects
in many of the products offered
on the platforms; for example,
some items lack the CE mark.
A lack of control is also evident
in customs regulations. Obviously,
the customs authorities
are unable to carefully check the
vast quantities of parcels from
the Far East. And the responsible
authorities are also failing
to enforce compliance with the
Supply Chain Act, which obliges
companies to respect human
rights in global supply chains.
Greenwashing
at its finest
This is linked to another point:
The controversial marketplaces
are clearly engaged in greenwashing
and socialwashing.
They go to great lengths to
present themselves as exemplary
companies that comply
with high ecological standards,
guarantee workers‘ rights and
do good for the environment.
Temu, for example, boasts that
it supports the planting of trees
in Africa through the „Trees for
the Future“ programme. And
Shein publishes a comprehensive
„Supply Chain Transparency
Statement“ on its website, in
which the company pledges to
„address issues related to modern
slavery, forced labour and
human trafficking“.
Well roared, lion. In reality, nobody
knows exactly under what
conditions the products that
make bargain hunters‘ hearts
beat faster are manufactured. It
should be clear to everyone that
job security, eight-hour working
days and health care play a very
minor role in the production of
a prawn peeler for 1.24 euros.
And the platforms‘ principle of
launching a myriad of new products
onto the market in quick
succession, thereby encouraging
unnecessary purchases,
makes the idea of sustainability
absurd anyway. The T-shirt and
trousers are so cheap - I can easily
dispose of them after wearing
them twice and buy something
new.
Does the consumer
want sustainability?
However, this is where guidelines
and rules reach their limits.
It is also the responsibility of the
responsible consumer, who repeatedly
emphasises in surveys
how important sustainability is
to them. According to the recently
published „Consumption
Monitor Sustainability 2024“
by the HDE, no less than two
thirds of respondents consider
themselves to be sustainabilityconscious,
and almost half say
that they actually shop sustainably
and therefore pay attention
to the durability of products,
sustainable materials and fair
production conditions - in other
words, points that are diametrically
opposed to the business
model of Temu, Shein & Co.
Now the respondents should
please follow up this lip service
with action.
A concrete
proposal
However, this does not absolve
politicians and administrators of
their responsibility. They must
ensure that Chinese platforms
comply with local laws and regulations.
The HDE has put forward
an interesting proposal in
this regard: According to this,
companies from third countries
should be obliged to appoint a
responsible economic operator
in the EU who can be called
upon in the context of official
and private law enforcement.
The authorities could then actually
enforce sanctions - to the
benefit of consumers, reputable
retailers and the environment.

Page 8 T O M
NEWS June 2024
The huge potential of
converting non-residential buildings
Double interview with David Rouven Möcker (PwC Germany) and Sven Carstensen (bulwiengesa)
David Rouven Möcker from
PwC Germany and Sven
Carstensen from bulwiengesa
are part of the „Initiative
Wohnen. Stadt. Gewerbe“,
initiated by the nationwide
network „Die Stadtretter“ In
an interview with TOM, they
talk about the huge potential
of converting or adding storeys
to non-residential buildings.
TOM: Can you briefly describe
how the „Initiative I Wohnen
City ...“ has come about?
David Rouven Möcker: At
PwC, we carried out a study
together with the Deggendorf
Institute of Technology. It was
generally about the topic of
densifying living space. We
have considered various ways
of creating living space by adding
storeys to residential buildings,
but also by adding storeys
or converting non-residential
buildings.
TOM: And the potential was
great?
David Rouven Möcker: Yes, it
is. I was also totally surprised by
the potential that I realized. The
estimate is that around 1.3 million
additional residential units
can be created across Germany
by converting and adding storeys
to non-residential buildings.
TOM: I‘m not very impressed
by these huge figures. What
potential was the starting signal?
David Rouven Möcker: That
made it very interesting to take
a closer look at the topic. We
have also made ourselves At the
last Expo Real, we exchanged
ideas with the Stadtretter and
the architectural firm Kinzo and
considered how we could make
the topic more relevant together.
Our initiative then grew out of
this.
TOM: In addition to the n addition
to the companies you
mentioned, other partners
have joined the initiative that
are definitely in competition
with each other. PwC and bulwiengesa
are also involved ...
Sven Carstensen: We certainly
have overlaps in our service
profiles, but we also have different
service modules, so we
complement each other rather
than being competitors. That‘s
the point of the whole initiative.
The point of the whole initiative
is that we are an interdisciplinary
team that has set itself the
goal of bringing our cities back
to life. On the other hand, we
also want to solve another social
problem when it comes to
housing.
TOM: This requires good
quality. It is important to look
at the problem from different
angles.
Sven Carstensen: Exactly. Not
only PwC and bulwiengesa
are involved in the initiative,
but also architects and experts
from the field of social research,
among others. This is the only
way to offer a complete range
of services that cannot be provided
by one company alone. that
it also works. We are all good
at what we do, but we need to
make additions left and right. s
the whole point of the initiative.
TOM: Let‘s come back to the
huge potential of more than
one million apartments. Estimates
assume that there will
be a shortage of around one
million apartments in Germany
by 2025. Have you found
the solution to the problems
on the housing market with
your approach?
David Rouven Möcker: To
put the figure of one million
apartments into perspective,
it‘s a fact that city centres are
becoming increasingly This actually
involves adding storeys
and converting non-residential
buildings. The greatest potential
stems from the increase in g. If
we focus on conversion, we are
still talking about 360,000 units
across Germany in all cities.
And to come back to the question
men: I don‘t know whether it
can solve the housing crisis, but
I am convinced that it is an important
building And that‘s why
it‘s such an important topic for
me, because I believe that there
is far too little room for improvement.
It‘s happening now.
TOM: It‘s important to look
at the problem from different
angles.
Sven Carstensen: Exactly. As
already mentioned, not only
PwC and bulwiengesa are involved
in the initiative, but also
architects and social research
experts, among others. This allows
us to offer a complete range
of services that one company
alone cannot provide. This is
the only way it can work. We
are all good at what we do, but
we need additions to the left and
right. That‘s the whole point of
the initiative.
TOM: Let‘s come back to the
huge potential of more than
one million apartments. It is
estimated that there will be a
shortage of around one million
apartments in Germany
by 2025. Have you found the
solution to the problems on
the housing market with your
approach?
David Rouven Möcker: To put
the figure of one million apartments
into perspective: This
actually involves adding storeys
and converting non-residential
buildings. The greatest potential
comes from adding storeys. If
we concentrate on conversion,
then we are still talking about
360,000 units across Germany
in all cities. And to come back
to the question: I don‘t know
whether it can solve the housing
crisis, but I am convinced that it
is an important building block.
And that‘s why it‘s such an important
issue for me, because I
believe that far too little is happening.
TOM: Why is too little happening?
David Rouven Möcker: Conversion
is very complicated, and
lengthy approval procedures in
particular stand in the way of
such projects. You can‘t just
start tomorrow and convert, you
need the appropriate permits.
TOM: Isn‘t that also due to
the fact that not every building
is suitable for conversion?
David Rouven Möcker: Of
course there are buildings whose
structure is not suitable for
conversion. But I also think that
this is a very small proportion
of buildings. Where conversion
is possible, it is very difficult to
create the right to be able to implement
it. That‘s why we also
need to get the attention of politicians
and administrators for
the issue, that‘s also what we‘re
about.
TOM: Mr. Carstensen, is there
anything else you would
like to add?
Sven Carstensen: Personally, I
don‘t think much of these huge
figures that are thrown at the
market. But they show the theoretical
potential. But at the end
of the day, the question is how
do you make it economically
viable? We very often have
conversion scenarios that are similar
in cost to new builds. Nevertheless,
and this is what we
still have to look at, it can pay
off in locations with very good
quality. And in terms of sustainability,
it makes more sense to
use existing buildings.
TOM: How do the approval
procedures play into this?
Sven Carstensen: It‘s important
to show decision-makers
that if an approval process takes
two to three years, the project
developer simply has to spend a
lot of money, for example on interest
and other costs - without
anything happening. That‘s why
the whole issue of conversion -
especially of inner-city, formerly
commercially used buildings
- needs to be much higher on the
political agenda.
And what must not be forgotten
is that conversion does not contribute
to solving the housing
problem, but also to the attractiveness
of city centers. It is also
important to us that cities do not
become deserted, but that this
change of use is achieved.

Page 9 T O M
NEWS June 2024
David Rouven Möcker (PwC Germany)
Sven Carstensen (bulwiengesa)
TOM: De-bureaucratization
feels like an ongoing issue.
How do you see the current
efforts from politics and administration?
David Rouven Möcker: Unfortunately,
we don‘t see enough
overall. But I would say that
the issue has certainly been recognized
at federal level. Together
with Stefan Müller-Schleipen
from Stadtrettern, Sven
Carstensen and I saw this at a
workshop held by the Federal
Ministry of Housing, Urban
Development and Construction:
In the presence of the minister,
the focus there was exclusively
on the topic of conversion. The
ministry offered a large number
of people a forum to exchange
ideas. And I had the impression
that they listened carefully to
what was being said and what
hurdles need to be removed.
TOM: In addition to the federal
government, however, the
federal states and local authorities
are needed above all to
actually change things.
David Rouven Möcker: That‘s
right. Of course, the federal
states and local authorities have
to implement it. And that raises
the question of the extent to
which what is wanted at federal
level is actually implemented.
TOM: What would be a concrete
demand for these levels?
David Rouven Möcker: For
example, we have called for a
„conversion“ coordination office
in the municipal building
authorities. It‘s about creating
a position that deals specifically
with this topic and drives it forward.
This would be extremely
helpful because, of course, it ultimately
comes down to people
and processes that are perhaps
not yet designed for this topic.
Sven Carstensen: I agree with
that. If we look at it from a topdown
perspective, then I can
also see that some things are
being attempted from the top,
such as the specific initiatives of
the federal government (editor‘s
note: in 2023, the federal government
presented a package
of measures that, among other
things, promotes the conversion
of vacant commercial properties
into new apartments with 480
million euros).
TOM: But in the end, it‘s still
up to the municipal level.
Sven Carstensen: Yes. The municipal
decision-makers have
to implement it accordingly. I
think it makes sense for them to
leave the beaten track and break
new ground.
TOM: But that depends very
much on the individual person
on the ground?
Sven Carstensen: Yes, it really
depends on the person on
the ground and therefore varies
greatly from city to city. I‘m always
amazed at the major projects
that are delayed and even
fail because one or two people
get stuck. More will to shape
and change is needed here. And
like David Möcker, I believe
that a coordination office would
be very useful here. That would
really be a big, big step forward.
TOM: Are there already lighthouse
projects that serve as
role models?
David Rouven Möcker: There
are certainly lighthouse conversion
projects that have taken
place - large and small projects.
Documenting and examining
these projects in detail is something
we still have to do. In
this way, we can make these
positive examples more visible
and certainly take the wind out
of the sails of some counter-arguments.
TOM: We are also experiencing
a vacancy rate for large
properties in the retail real estate
sector due to the closures
at Galeria Karstadt Kaufhof,
among other things. Are these
asset classes also suitable for
conversion into apartments?
David Rouven Möcker: We
believe in this topic. And we
also believe that department
stores have potential for conversion.
However, it should be
noted that conversion to residential
use will only be possible
to a limited extent. In practice,
therefore, mixed use is certainly
more likely.
Sven Carstensen: Just to interject
briefly: Department stores
are a good example of theoretical
potential but difficult practical
implementation.
TOM: In what way?
Sven Carstensen: These buildings,
I‘ll say blocks, are very
difficult to reuse due to the
lighting conditions - both as
apartments and as offices. This
involves major conversion
work. In other words, sawing in
an inner courtyard or something
similar. This would all be possible
in theory, but in the end it
would be difficult to realize economically.
TOM: How can the problem
be solved?
Sven Carstensen: We have to
think beyond the limits of the
current standards and consider a
use that sometimes goes beyond
the conventional mix of uses.
That is also a task that we need
to tackle now.
About Möcker and
Carstensen:
David Rouven Möcker is a
partner at PwC Germany
and heads the Real Estate
Consulting & Transformation
division. The real estate
expert has more than 15
years of professional experience
in the real estate
consulting and construction
industry.
Sven Carstensen has been a
member of the bulwiengesa
Management Board since
2009. He has been working
in the real estate industry
since 1995. Sven Carstensen
has been working for
bulwiengesa AG since 2005.
Before joining bulwiengesa,
he worked for companies
including Wohnungsgenossenschaft
Schifffahrt-Hafen
Rostock, Bavaria Objektund
Baubetreuung and DI-
BAG Industriebau.

Page 11
T O M
ANALYSES
June 2024
The right concept in the right location: local supply in rural areas has great potential. Symbolic image: AdobeStock
Local supply in rural areas:
new concepts for the future
From mobile supermarkets to village shops
OPS F THE ONTH
THE HO
INTERV
+++ PA
ANALY
presen
Marc
Rural regions characterise
Germany, but still face enormous
challenges when it comes
to local supply - understood
as basic supply with vital
services and infrastructure.
BBE Handelsberatung has
now published a white paperon
this topic.
In rural regions, the population
is ageing faster than in urban
areas, partly due to the migration
of younger people and the
lower birth rate. The increase in
senior citizens and single households
is also changing the demand
for services and products.
High-performance broadband
networks are now a key infrastructure
requirement for regional
services of general interest
and local supply concepts in rural
areas. These are the findings
of the current white paper „Local
supply in rural areas“.
„Our analysis shows that local
supply concepts that bundle
various services are promising
approaches to counteracting the
decline in population. These include,
for example, mobile supermarkets,
community-owned
village shops and multifunctional
local centres. One of the
key prerequisites is an efficient
internet connection,“ explains
Oliver Ohm, Regional Manager
North.
Since 2011, small food retailers
(LEH) with around 400,000
square metres of space have
closed in Germany. „In recent
years, discounters and supermarkets
have grown, especially
in primary, secondary and regional
centres - with a simultaneous
decline in small food
retailers. This creates space for
new concepts and approaches in
rural areas. The order of the day
is therefore: bring the right concept
to the right location,“ says
Oliver Ohm.
Successfully tried and tested
rural local supply concepts
in Germany include several
components. MarktTreff in
Schleswig-Holstein, for example,
demonstrates this with the
so-called three-pillar principle,
which is also the basis for public
funding. The three-pillar principle
comprises the core business
- i.e. food retail, often supplemented
by catering, complementary
services such as post
office, lottery or medical care as
well as the meeting point function:
for public and private use.
Smart stores with great potential
„Sustainable rural supply concepts
are geared towards real
local needs and involve all relevant
stakeholders. This creates
prospects for local supply and
forms the basis for sustainable
operation,“ adds Ann-Kathrin
Lötz, Senior Consultant at BBE
Handelsberatung. „In structurally
weak regions, smart stores in
particular, which do not require
checkout staff and can open
around the clock, and vending
machines for marketing regional
products have great potential.“
T
TOPS
O M
OF THE MONTH
TOM
TOPS
OF THE
MONTH
RETAIL REAL ESTATE
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
IMPRINT
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

www.wisag.de
Your shopping centre in the best hands
Perfect cleanliness, uncompromising security and optimum service:
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 13 T O M
MAP OF THE MONTH June 2024
Retail Purchasing Power, Europe 2023
GfK’s Map of the Month for June shows the regional
distribution of retail purchasing power in
Europe in 2023. The average retail purchasing
power in Europe is 6,517 euros per capita. However,
there are significant differences between
the 25 analyzed European countries in terms of
retail spending: At 12,067 euros per capita, Luxembourgers
have the most money to spend in the
retail sector, followed by the Swiss (11,617 euros)
and the Danes (9,479 euros). Romania brings up
the rear: People there spend 2,986 euros per capita
in the retail sector.

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