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Destination Retail Benelux 2016Key retail cities across Benelux

Destination Retail Benelux 2016 | 3 || 2 | JLL

Thierry Debourse* Regional Director, Head of Retail Benelux JLL

Challenges and opportunities in Benelux!

We think that the time is right to issue a Benelux version of the global Destination Retail 2016 report based on three important observations: Benelux’s population is forecast to increase to 33.2 million by 2050, retailer demand in the region is concentrated in large conurbations and Benelux has proved resilient to economic downturns. This report focuses on the 13 main retail cities in Belgium, the Netherlands and Luxembourg.

As both food and beverage and luxury are booming sectors, separate chapters have been added to provide you with deeper insight into the trends in these market segments.

In terms of real estate, there are significant opportunities in many cities as current retail locations are being improved by redevelopment and because new future-proofed retail places are being created in growing cities.

This report, Destination Retail Benelux 2016, explores the most attractive retail hotspots across the region and provides valuable insight to retailers looking to expand or optimise store portfolios. One of the indicators we use is ‘international retailer presence’, which is an effective indicator of the attractiveness of a retail zone. Our Benelux teams have selected and analysed the international retailer presence, either existing or imminent, of 200 brands.

We appreciate that the challenges of successful store expansion, careful planning and thorough due diligence remain crucial for long-term success, but we also want to emphasise that those who get it right are able to reap the rewards of their efforts.To our clients, we are grateful and proud to be able to accompany you on your journey. And to other stakeholders and interested parties, we hope you enjoy this report, whether you are a shopper, a retailer or an investor.

Foreword


Fast Facts 7 Key highlights and conclusions from the report

European Context 8 Appeal of Benelux in Europe

Retail Cities Benelux 10 Analysis and key retailers of major city markets in Benelux

Luxury 30 Key market trends and Benelux luxury city ranking

Food & Beverage 34 Food & Beverage market gains momentum

Outlook Retail 2020 40

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Content

Apple store, Brussels

1. Fast Facts

Destinations: Benelux has a current population of 28.8 million concentrated in large yet human-scale urban centres. Amsterdam, Brussels, Antwerp, Luxembourg City and Rotterdam are the top five retail cities in Benelux, with widespread international retailer presence. Overall, the retail cities in this report are easily accessible and attract national and international retailers.

Extensive and expansive retailers: H&M, C&A, Vero Moda and Zara are the most widespread fashion retailers in the retail cities of Benelux; Dutch retailers Hunkemöller and Rituals show resilience; and Starbucks and JD Sports have also achieved broad market penetration. For the aforementioned brands online retailing is of significant importance nowadays as well.

Luxury: The luxury market has shown resilience in difficult market conditions as luxury brands have focused on an exclusive shopping experience, thus limiting the impact of online retail, which offers expansion opportunities in this segment. In addition, the luxury market is benefitting from long term growth prospects for tourism.

Dining: The food and beverage sector is a growing and exciting market, although consumer behaviour is evolving and new formats are therefore demanded. The Food and Beverage sector may therefore benefit and potentially take a share of 20% – 25% in our future retail landscape.

Retailer Strategy: International retailers are increasingly focusing on prime profitable locations, where they tend to expand their retail stock to be able to offer comprehensive services. In addition, online retail demand is increasing, meaning that both national and international retailers have to anticipate new and changing trends in order to integrate the physical and the online sale into a “phygital” store.

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Growing appeal of Brussels, Amsterdam and Antwerp

Brussels, Amsterdam and Antwerp are among the most attractive shopping destinations in Europe. Based on the analysis from Destination Retail 2016, these cities rank 11th, 12th and 20th respectively in terms of international retailer presence across Europe’s key retail cities. On a global level Brussels ranks 39th, followed by Amsterdam (43rd) and Antwerp (63rd).

The three cities are regarded as ‘mature retail cities’ and are often the next port of call for international retailers looking to expand further into Europe after entering major European cities such as London, Paris, Milan, Madrid or Berlin. Brussels, Amsterdam and Antwerp are established markets, with strong domestic sales, domestic brands and an affluent consumer base. They are among the most transparent real estate markets globally, and local legislation is favourable towards international retail brands. Thanks to a well-developed retail offer, these cities have a strong appeal towards shoppers in their respective wider surroundings as well as international tourist visitors, making them also the most resilient retail destinations in Benelux.

The growing appeal of Brussels, Amsterdam and Antwerp for international retailers has been well evidenced in recent years. Amsterdam has welcomed premium brands including Ted Baker, Stradivarius and Hudson’s Bay Company on historic Leidsestraat, Kalverstraat and Rokin, whilst luxury brands have found their way to P.C. Hooftstraat. Brussels’ Louizalaan and Boulevard de Waterloo, where upmarket brands such as Montblanc and Fabiana Filippi have opened up new stores, have seen a similar upward trend. As a result of the increased competition between retailers for quality space, rents have risen significantly on these shopping locations

Benelux is calling

Recent developments, including the outcome of the Brexit vote, growing concerns over China’s economy and hardening geopolitics, have increased uncertainty in the global economy. Against the background of ongoing structural change of retail markets, we expect international retail expansion across the world’s most attractive and resilient cities will accelerate. Retailers with a strong proposition can

benefit from robust growth whilst mitigating operational risks in a fast-changing world.

Brussels, Amsterdam and Antwerp are attractive destinations for international brands looking to expand across Europe and should be high on the list as the next port of call for retailers looking to expand into Benelux. Looking at next-tier destinations, the Benelux region offers other attractive cities with a strong appeal to international brands that can add to a more diversified retail offer, including Ghent, Bruges, Luxembourg City and Utrecht.

Within the Benelux retail market, the largest international retailers originate from the US, such as Foot Locker and Tommy Hilfiger, although German retailers have expanded most rapidly in the last year, with brands such as & Other Stories, Decathlon and Superdry entering the market in prime retail locations.

Thanks to Benelux’s sizeable market and the access it provides to both local shoppers as well as tourists, a retail presence in the region can help international retailers achieve more balanced growth across their international store portfolio.

Source: Tjard Martinus, EMEA Retail & Consulting JLL, 2016

The Netherlands

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Hong Kong

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Top 10 retailer presence% Coverage of Benelux's key countries of origin

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2. European Context

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Liège

3. Retail Cities BeneluxWith its central location in the mature markets of Western Europe and with neighbours as Germany and France, Benelux is a well accessible market. The present publication concentrates on the 13 major retail cities in Benelux, respectively six in Belgium and the Netherlands and one in Luxembourg.

We have examined the retail market of Benelux with a focus on retailer presence, as the number of international retailers present in a market is an effective indicator of the global attractiveness of a market. We have based our analysis on the presence of 200 selected brands combining non-food and food brands in the largest retail cities in Benelux. For Belgium these are Brussels, Antwerp, Ghent, Liège, Hasselt and Bruges, whilst for The Netherlands cities surveyed in this report are Amsterdam, Rotterdam, The Hague, Utrecht, Maastricht and Eindhoven. In Luxembourg the highest retailer presence is measured in the Capital, Luxembourg City. On the following pages we present our top 13 ranking.

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Top 13 most attractive markets 2016% coverage of surveyed retailers in the 13 key retail markets in Benelux

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The size of the circles in the graph above represent the GDP per Capita, with circle size providing an overall indication of the affluence of the local consumer base. Luxembourg City for example is displayed by the largest circle in the graph indicating the considerable wealth of the population base. The X-axis represents the current prime retail rent, for example indicating that the prime retail rent in Benelux stands at € 2,950 per sq m per year in Amsterdam. The Y-axis represents the 30 minute catchment area of each city in Benelux, indicating that Brussels’ catchment is larger than Antwerp’s.

Prime rent compared to catchment relative to GDP per capita

International Retail MarketsNational Retail Markets

Docks Bruxsel shopping district



Major Belgian cities are resilient retail locations

Brussels and Antwerp are the two largest cities and the top retail destinations in Belgium. Brussels has the highest presence of international retailers, closely followed by Antwerp. Although both cities differ in market size, opportunities and barriers for retailer expansion, they are the entrance point to the country for many international brands.

Flagship stores of both national and international retailers are located here, with recent entrants such as Marks & Spencer, Apple and Bodum in Brussels, and Bimba y Lola, Uniqlo and Manila Grace in Antwerp. Market entrance is hindered by low vacancy rates and the absence of retail stock growth possibilities in prime locations. Brands have increasingly focussed on prime locations in the cities with their flagship stores to showcase and reinforce their brand’s image.

Apart from the top two cities, the prime high streets in other large cities such as Ghent, Hasselt, Liège and Bruges also attract many international retailers, thanks to various drivers such as market size, the presence of new projects and, in various degrees, tourism. In terms of international retailer presence, however, Ghent completes the top three thanks to its advantageous catchment area and the presence of available opportunities, whilst Liège, Bruges and Hasselt remain more regional markets with fewer international formats present.

Mainly European and American retailers present

Retail brands present in Belgian high streets are dominated by North American and European brands, with the US, Italy and France comprising the top three countries of origin for retailers. In addition retailers from other European countries such as the Netherlands, the UK, Spain and Germany are well represented in cities across Belgium.

Domestic brands such as JBC, Caroline Biss, Delvaux and Leonidas are limited in number. Independent local shops are gradually disappearing and are being replaced by international formats. On the other hand, new local brands have entered the market, often with specific urban formats, such as Juttu and Cook & Serve.

The rise of online retail

Online retail recorded over 30% growth in 2015 with a volume of approximately €8.2 billion. However, online sales still represent only a fraction of total retail sales in Belgium, compared with mature e-commerce markets such as the UK, where online sales account for more than 10% of total retail sales. E-commerce is still a growth market in Belgium, and with forecasted average growth rates of over 15% each year over the next 2-3 years. International brands are focused on locating their physical shop networks in prime future-proof locations where large flagship stores and concept stores appear, often incorporating a new vision of shopping. As such, international brands will likely reduce their physical presence in secondary locations.

Belgium


Brussels

Brussels, the capital of Belgium, has the highest proportion of international retailers in the country and is the second most attractive destination for international and national retailers in Benelux. The retail scene is characterised by a very diverse consumer market that includes a large amount of commuters, a big expatriate community from all parts of Europe and many domestic and international tourists. As such, the city is often used by international retailers to test the launch of new brands or concepts, and the city’s international appeal continues to grow. The city’s most sought-after locations for international and national retailers are Rue Neuve in Brussels Downtown, and Chaussée d’Ixelles, Avenue de la Toison d’Or, Avenue Louise and Boulevard Waterloo in Brussels Uptown.

Brussels Downtown is an extensive pedestrian retail zone in the city centre around Rue Neuve linking the Rogier metro station and City 2 Shopping Mall at one end to The Mint project on Place de la Monnaie at the other end. Demand in this zone mainly originates from mass-market brands, which include Primark, Zara, H&M, Pull & Bear and C&A. Recent newcomers include Guess and Primark, whose first shop in Brussels is expected to increase footfall in the southern end of Rue Neuve.

Brussels Uptown is a retail zone formed by four main streets: Avenue Louise, Avenue de la Toison d’Or, Chaussée d’Ixelles and, opposite Toison d’Or, Boulevard de Waterloo. Chaussée d’Ixelles has a retail mix oriented towards mainstream brands, with recent newcomers such as La Halle, a French shoe retailer,

Pomelo, a new urban format of Trafic group, Sucx candy store and soon also Primark. Avenue de la Toison d’Or was boosted by the recent opening of Flying Tiger Copenhagen and flagship stores of Apple and Marks & Spencer, which have had a positive impact on footfall and have ensured a smooth link between both ends of the avenue. Boulevard de Waterloo, the prime street for luxury brands in the city, is where many French and Italian haute couture houses are located alongside recent newcomers such as Moncler, Fabiana Filippi and Dolce & Gabbana, with more expected in the near future.

The largest shopping centre in Brussels is Docks Bruxsel (56,000 sq m), a new shopping district concept, which opened its doors in October 2016. It is the first new shopping centre in Brussels in more than 30 years. Besides a shopping district featuring an innovative retail mix – with drivers such as Media Markt, Zara and H&M and a differentiating upscale cluster with brands such as Michael Kors, Liu Jo, 7 for All Mankind and Guess – Docks Bruxsel also contains a movie theatre, an indoor adventure park, an event hall and various food concepts. Docks Bruxsel is setting a new standard in Belgium in accordance with the new customer desire to enjoy an extended, well-rounded experience that combines shopping with other activities. In addition, Brussels contains City 2 Shopping Mall (51,000 sq m), an inner city shopping centre, and Woluwe Shopping Centre (44,400 sq m), which is near the eastern ring road. Two other shopping centres, Westland (37,500 sq m) and Basilix (17,900 sq m), are located near the city’s western periphery.

Antwerp

Antwerp is the largest city in the Flanders region and is the third most attractive location for international and national retailers in Benelux. Antwerp is Europe’s second largest port and one of the largest centres of the diamond trade worldwide. With 520,000 inhabitants and a bevy of tourists and business travellers, Antwerp has an impressive national and international customer base. A key driver of footfall is Antwerp’s tourist appeal.

Antwerp is Belgium’s fashion capital, hosting the MoMu fashion museum, the Flanders Fashion Institute and the Fashion Department of the Royal Academy of Fine Arts – all of which are housed within the ModeNatie fashion complex on Nationalestraat. Antwerp is renowned as an international fashion centre thanks to world-famous stylists such as the ‘Antwerp Six’, including Walter Van Beirendonck, Dries Van Noten and Ann Demeulemeester. Their success has boosted the fashion industry in Antwerp and has created a vibrant atmosphere in the heart of the city, full of energy and centred around fashion. Nearby Kammenstraat and Steenhouwersvest house young design brands such as Fish & Chips and Dstrezzed and trendy local stores such as Wasbar.

A varied supply of national and international brands is available on Meir, Antwerp’s prime high street, which is located within walking distance of Central Station and leads to the old city centre. It houses mainly mainstream brands such as H&M, Zara, JD Sports and soon also Primark. On Saturdays its footfall is

one of the highest in Europe, with an average of over 90,000 daily visitors, including many foreign tourists hailing mainly from the Netherlands.

Huidevettersstraat, just off Meir, forms a link between the mass-market offerings on Meir and the luxury brands on Schuttershofstraat. Huidevettersstraat houses many premium fashion brands such as Bimba y Lola, G-Star, Nespresso and Michael Kors. Schuttershofstraat and its prolongation, Hopland, is the place to be for international luxury brands, including Gucci, Hermès and Burberry.

The Wilde Zee district is a trendy retail zone just off the main shopping streets of Meir and Huidevettersstraat. It is a trendy neighbourhood that attracts fashionistas and foodies with its mix of clothing, shoe and design brands and gourmet food stores.The centrally located, four-storey shopping centre Stadsfeestzaal (25,000 sq m) on Meir encompasses around 40 shops, including mainstream brands such as Urban Outfitters, Sacha and COS. Grand Bazar Antwerp (10,000 sq m) is another large shopping centre in town, and Den Tir (13,000 sq m) is a shopping centre located at the edge of Antwerp comprising 23 shops divided over two floors. Also outside of Antwerp is Wijnegem (60,000 sq m), the largest shopping centre in the country, encompassing 250 shops such as mainstream brands H&M and Zara and premium brands such as Claudia Sträter and Supertrash.

Rank 2

Rank 3


Ghent

Ghent is Belgium’s third largest city, with more than 250,000 inhabitants, and it is Benelux’s seventh most attractive location for international and national retailers. Many tourists are attracted to Ghent by its seaport, and the city is also an important industrial cluster in Flanders with large international companies active in the automobile, food, paper and chemical sectors. Ghent’s slogan, ‘So much city’, refers to its multifaceted character, which balances urban-scale and human-scale, as well as historical and contemporary, elements.

Retailer demand is boosted by an attractive catchment area and high volume of tourist traffic. The city centre has one of the largest pedestrian zones in the country and includes the important historical city centre, with the medieval Gravensteen (‘Castle of the Counts’) close to the heart of the inner city shopping zone.The city’s most sought-after locations for both international and national retailers are Veldstraat, Volder-straat, Brabantdam, Lange Munt and Koestraat, which have attracted retailers such as Bershka, Zara and WE Belgium. Retail properties in the city centre underwent extensive refurbishment in the past few years, attracting a number of newcomers such as Primark, H&M, H&M Home and Sissy-Boy.

Shopping centre Gent Zuid (11,200 sq m), the main shopping centre in Ghent, encompasses 36 shops. It is fashion-focused with several international and national retailers such as H&M, LolaLiza and Cassis. In addition, two recent small shopping centres, Korenmarkt and Vrijdagmarkt, are located in town.

Hasselt

Hasselt, a city in the east of Belgium, is Benelux’s ninth most attractive location for international and national retailers. Retailer demand is boosted by an attractive catchment area, the high volume of tourist traffic (the Netherlands and Germany are in close proximity to the city), connectivity with other large cities in Belgium such as Antwerp and Leuven and as a result of the large amount of students in the city. In addition to a high number of fashion retailers, Hasselt has many restaurants and bars and has dubbed itself the ‘capital of taste’.

The local population is very fashion-minded. The city’s most sought-after locations for international and national retailers are Hoogstraat, the central part of the north-south axis located between Demerstraat and Koning Albertstraat, and a secondary retail zone on the perpendicular streets such as Maastrichter-straat and Aldestraat. The main retailers in the city are the recently opened Primark, located in the northern part of the retail zone just off Demerstraat, and the Galeria Inno at the other end on Koning Albertstraat. Retailers on Hoogstraat include Pull & Bear, & Other Stories, Mexx and Kiko Milano.

The three-storey TT shopping centre (20,500 sq m), located in the heart of the city, was recently renovated and is the largest shopping centre in Hasselt, attracting high levels of footfall. It is fashion-focused and houses a number of international retailers, with key tenants including Pimkie, JBC and Carrefour Express.

The most prominent new scheme in Hasselt is the city centre retail zone, which will extend towards the Kanaalkom, where a mixed-use project with retail and leisure of approximately 21,700 sq m will be situated. This scheme is currently under construction and is planned to open in 2019.

Liège

Benelux’s twelfth most attractive location for international and national retailers is Liège. Liège is the largest city in the Walloon Region and has close to 200,000 inhabitants. Retailer demand is boosted by a positive economic growth outlook and visits from domestic and international tourists.

Liège has an extensive network of high streets in the city centre, including Rue du Pot d’Or, Rue Vinâve d’Ile and the area extending from Place Saint-Lambert near Palais des Princes-Evêques to Rue du Pont d’Ile. Key retailers in these city centre high streets are international brands such as Zara, H&M, Mango and Desigual.

Médiacité (48,000 sq m) is located in the centre of Liège and is the city’s largest shopping centre, encompassing 124 shops divided over two floors, including mainstream brands such as Primark, H&M, Media Markt and Foot Locker.

Galeries Saint-Lambert (40,100 sq m) is the second largest shopping centre in Liège and includes 40 shops representing a wide mix of tenants. With over 30,000 sq m in 99 shops, Belle-Ile is the third

largest shopping centre in Liège, and a 6,000 sq m extension is currently being studied.

Finally, the centrally located Espace Sain Michel (20,000 sq m) includes such retailers as H&M, C&A and WE fashion. Apart from the extension of Belle-Ile, three new retail units totalling 3,000 sq m will open on the site of a former covered marketplace on Rue Frédéric Nyst, and a mixed redevelopment project including approximately 5,000 sq m retail is planned on Rue des Guillemins.

Rank 7

Rank 9Bruges

Bruges is Benelux’s thirteenth most attractive location for international and national retailers. Bruges is the capital of the province of West Flanders and is known for its stable retail environment with low retailer rotation. The city has 118,000 inhabitants, and the broader region 280,000. Its historical centre is a well-preserved Unesco world heritage site and thrives thanks to the constant flow of domestic and international tourists. Thanks to its rich historical heritage and its many canals, the city is called ‘the Venice of the North’. It has the second highest number of tourist arrivals in the country after Brussels. The main retail high streets are two parallel streets, Zuidzandstraat (and its prolongation to Steenstraat) and Noordzandstraat, which link the historic Grote Markt square in the heart of the city to the nearby Zand, another large square. Steenstraat houses both national and international brands such as Galeria Inno, McDonald’s, Massimo Dutti, Jack & Jones and Desigual. Newcomers to Noordzandstraat include Juttu and Zadig & Voltaire. The small Zilverpand shopping centre, which houses mainly premium brands, has entrances on Noordzandstraat, Zuidzandstraat and Steenstraat. There is also a 3,900 sq m retail zone spread over 13 shops in the mixed-use Groen Brugge project at the Bruges train station.

Rank 13

Rank 12



Major Dutch cities are resilient retail locations

Amsterdam and Rotterdam, the two largest cities in the Netherlands, are also the country’s top retail destinations. Although both cities differ in market size, opportunities and barriers for retailer expansion, they are the entrance point to the country for many international brands. Amsterdam has the highest presence of international retailers, covering 85% of the surveyed retail stock in the inner city, followed by Rotterdam with 75% coverage. While small and mid-sized cities in the Netherlands will continue to play a more pragmatic role by providing everyday shopping, shopping in the country’s largest cities will be more of an experience and leisure activity. Flagship stores of both national and international retailers are located in Amsterdam, such as Ted Baker, Hugo Boss, Tommy Hilfiger and Michael Kors. In addition, Canadian department store Hudson’s Bay Company is settling in the Dutch market, opening stores in large retail cities in the Netherlands. The most expansive retailer in our sample is the Swedish fashion retailer H&M. H&M now has 100% coverage across the key retail cities in the Netherlands, with recent expansion in both Amsterdam and The Hague. Apart from the top two cities, the prime high streets in other large cities such as Utrecht, The Hague, Eindhoven and Maastricht also attract many national and international retailers thanks to various drivers including market size, the presence of new projects and, in various degrees, tourism. In terms of international retailer presence, however, The Hague completes the top three thanks to a broad consumer base and tourism. In the past few years, various retailers in the Netherlands went into administration. Because of this, a lot of new (international) retailers, such as Hudson’s Bay Company, Lola Liza, TK Maxx, Søstrene Grene and Primark, have had the opportunity to establish stores in prime locations in city centres.

Mainly European and North American retailers present

An increasing number of international retailers are finding their way to the Netherlands, with the US, Italy and the UK the dominant countries of origin of retail brands present in Dutch high streets. In addition, a growing number of Asian originating retailers are focussing on Benelux market such as Owndays, Liu Jo and Uniqlo. Domestic brands are also largely present within the Dutch retail market. Retail brands such as Blokker, Hema and Rituals are widely present in the Netherlands, with new domestic retailers such as We Are Labels, People’s Avenue and Costes also entering the mix.

The rise of online retail

In addition to falling turnover levels, the Dutch retail market is structurally impacted by the strong growth of online sales. Online sales rose from € 12.7 billion in 2013 up to € 13.7 billion in 2014, which is a growth of almost 8%. Online Retailing nowadays is a structural part of the Dutch Retail market, making the Netherlands’ online market one of Europe’s most mature. This is indeed evidenced by the annual online turnover which came to approximately €16.26 billion in 2015. While online sales experienced multiple years of double digit growth figures in the last decade, the most recent growth figures indeed point in the direction of a maturing retail segment which accounts for a significant share of total retail sales in the country.

The Netherlands


Rotterdam

Rotterdam, famous for its large port and modern architecture, is Benelux’s fifth most attractive location for international retailers. The city benefits from a broad consumer base and strong retailer demand. The city centre has a mass-market and premium retailer focus, which is reflected in the expansion of Zara and H&M on Lijnbaan and discount store Primark that is moving to the new Forum Rotterdam which will open its doors in 2018. The city centre boasts a large amount of retail floor space, with a large amount of unit shops and several shopping centres such as Markthal, Beursgallery and Beurstraverse. The city’s most sought-after locations for international and national retailers have traditionally been Lijnbaan, Beurstraverse and the adjacent Beursplein. However, as a result of the future opening of the developing of Forum Rotterdam, at the Binnenwegplein, the area has experienced increased footfall and has supplanted Lijnbaan as the city’s most popular retail area. Three other streets, Kruiskade, Hoogstraat and Meent, are significant additions to the Rotterdam retail market and house upmarket brands such as Oger, Michael Kors and Marc Cain.

Outside the city centre of Rotterdam is the large Alexandrium Shopping Centre (also known as Alexandrium I), which has a lot of national and international retailers, attracts high footfall and is the most profitable shopping centre in the greater Rotterdam area. Directly adjacent are Alexandrium Megastores (also known as Alexandrium II) and Alexandrium Woonmall (also known as Alexandrium III), which sell bulk goods. Vacancies are low and the three Alexandrium shopping centres attract a combined 10 million visitors each year. In addition, shopping centre Zuidplein is located it the south of Rotterdam and also attract footfall. The most prominent new mixed-use scheme in Rotterdam is the Markthal, a new indoor marketplace that attracts a lot of domestic and international customers, encompasses approximately 9,900 sq m of retail- and leisure space, and 228 apartments. In addition, the redevelopment of the central train station in Rotterdam, which opened in March 2014, has contributed to the growth in the number of domestic and international shoppers retail customers.

Amsterdam

Amsterdam is the capital of the Netherlands and is ranked as Benelux’s most attractive location for both national and international retailers. The capital benefits from a strong international customer base, with a considerable proportion of retail sales driven by tourists, as well as its size, and the transparency of the retail market. The total retail stock in Amsterdam amounts to approximately 1.1 million sq m (with an average vacancy rate of 6%) and attracts almost €3 billion in spend every year. In particular, mainstream and luxury retailers are attracted to Amsterdam thanks to its renowned reputation as the largest fashion centre in the Netherlands. This demand, together with a lack of prime retail supply, is putting upward pressure on rents across the city centre. Although there are a significant number of peripheral shopping centres and unit shops available, the inner city of Amsterdam remains the prime retail destination. The most sought-after high street locations in Amsterdam are Kalverstraat, Heiligeweg, Leidsestraat, Nieuwendijk and Rokin, all of which benefit from high footfall. In addition, the Negen Straatjes (‘Nine Streets’) area is known for its boutique shopping area. P.C. Hooftstraat is the prime street for luxury brands in the city. Flagship stores set the tone in the Amsterdam retail market. Ted Baker has

rented a unit shop on Leidsestraat and Kiehl’s has opened a flagship store on Kalverstraat. The Kalvertoren on Kalverstraat attracts high footfall and is Amsterdam’s most central shopping centre. Sold in 2014 the shopping centre will undergo a significant refurbishment by its new owner Kroonenberg Groep. In addition, H&M openend a new flagship on Rokin/Kalverstraat, next to its existing flagship store on Dam square. It marks the second flagship location in Amsterdam. Two notable retail pipeline developments include the transformation of project ‘Nowadays’ on Damrak into an attractive mixed-use destination including the recently completed Zara, JD Sports and Starbucks and the building which houses C&A and Primark up for completion at the end of 2016. Furthermore, the transformation of Rokin 21 and 49 as part of the Rokin District, this project involves the redevelopment of the former Fortis headquarters on Rokin by Ivy Group, a property investor and developer, into a mix of unit shops, housing and restaurants. Large Canadian department store Hudson’s Bay Company will be one of the tenants.

Rank 1

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Eindhoven

With 223,000 inhabitants, Eindhoven is the fifth most populous city in the Netherlands and ranks as the 11th most attractive location for international and national retailers in Benelux. The city is part of the Brainport region and is known as a technology and knowledge hub. Fuelled by improving economic conditions, retailer demand across the wider city continues to strengthen. International retailers are increasingly interested in Eindhoven, and national retailers continue to play an important role in the city’s retail life, contributing up to 33% of the total retail stock in Eindhoven.

Eindhoven’s main shopping area is centred around Demer and Rechtestraat, where various mainstream and premium national and international brands are clustered. Hooghuisstraat is another significant shopping street, housing luxury brands such as Jaguar Fashion and Alberto Bellini alongside premium shops such as Vielgut.

The four-storey Piazza (31,000 sq m), located at the beginning of Demer, is the city’s most prominent shopping centre, encompassing 36 shops spanning mainstream brands such as Zara, Decathlon and Esprit. The newly renovated Heuvel, located near Markt and Vestdijk, is Eindhoven’s largest shopping centre (35,000 sq m), encompassing

76 shops including mainstream brands such as H&M and Costes and premium brands such as Supertrash and Hugo Boss. Three notable retail projects include the 2013 opening of Primark in a newly renovated building on Hermanus Boexstraat, which has had a positive impact on the street’s footfall, the 2010 opening of The Blob, a unique development that counts Sissy-Boy as a tenant and the ongoing renewal of shopping centre Heuvel.

Maastricht

Maastricht, a popular shopping city in the south of the Netherlands that attracts more than 3 million tourists on a yearly basis, is Benelux’s tenth most attractive location for both international and national retailers.Retailer demand is boosted by an attractive catchment area and a high volume of tourist traffic owing to the close proximity of Belgium and Germany. Although the city has a significant number of shopping centres, Maastricht’s inner centre unit shops remain the prime retail destination. A major reason for this is that many of these shops are located within the city centre’s vast collection of historic 17th- and 18th-century buildings. Indeed, because of its heritage value, the whole of Maastricht city centre has been declared by the Dutch government as a protected area.

The city’s most sought-after location for both international and national retailers is Grote Staat, which forms a long shopping strip with Kleine Staat and Maastrichter Brugstraat. The Stokstraat quarter is the prime area for luxury brands in the city.

Mosae Forum (18,500 sq m), at the end of Muntstraat is the city’s largest shopping centre encompassing 33 shops. It attracts high footfall and is the most profitable shopping centre in Maastricht. Adjacent to Spilstraat is shopping centre Entre Deux (12,500 sq m), which has a focus on fashion, and it features several international and national retailers such as Zara and Hollister.

Rank 10

Rank 11

The Hague

The Hague, the seat of the Dutch government, is Benelux’s sixth most attractive location for international and national retailers. The city benefits from a broad consumer base, the large international expatriate community and is a popular destination for tourists, thanks in part to the close proximity of the sea.

The main shopping area is located in the city centre of The Hague, centred around Spuistraat and Grote Marktstraat, which benefit from high footfall owing to the presence of many international retailers such as Zara, Kiko Milano and River Island. There has been an expansion in both the mass-market and premium segment in the inner city whilst luxury brands prefer the fashionable shopping district around Noordeinde and Hoogstraat.

The most prominent new scheme is Haagse Passage (10,500 sq m), which opened in September 2014 and encompasses 57 shops. This update to the oldest existing shopping centre in the Netherlands, extends from the other side of Spuistraat towards Grote Marktstraat. Together with the arrival of Primark and Decathlon in prime pitches in the centre, this has led to a new stream of footfall for Grote Marktstraat and a

better pedestrian flow in the city centre. In addition, the redevelopment of The Hague’s central train station, which was completed in January 2016, has contributed to the growth in the number of domestic and international retail customers. The redeveloped central train station has enhanced the pedestrian flow towards the city centre, contributing to the retailer demand in The Hague.

Utrecht

Benelux’s eighth most attractive location for international and national retailers is Utrecht. Retailer demand has been boosted by a positive economic growth outlook stemming from the redevelopment of the area around the city’s central train station and a high volume of tourist traffic.

The most important shopping streets of Utrecht are located in historic city centre. Lange Elisabethstraat, Steenweg and Oudegracht have traditionally been the most sought-after locations by mainstream retailers, whilst premium brands such as Suitsupply are located around Oudkerkhof.

Various retail brands such as Flying Tiger Copenhagen, Zara and Superdry have continued to expand their store networks by opening stores in Utrecht, and the ongoing refurbishment of the Hoog Catharijne shopping centre (105,000 sq m), which is situated directly next to the central train station in the centre of the city, offers attractive opportunities for Utrecht as a retail city.

The most prominent new urban regeneration project in Utrecht is around the central train station, including retail developments Vredenburg and Hoog Catharijne. This area is being developed into a mixed-use leisure, office and retail destination. In addition, the train station itself has a direct passage leading to the Hoog Catharijne shopping centre. Following the redevelopment, the historic centre and the station area will become a coherent whole, which will create a better dynamic for the city.

Rank 6

Rank 8


Destination Retail Benelux 2016 | 27 || 26 | JLL Destination Retail Benelux 2016 | 27 |

Luxembourg City

Luxembourg City is Benelux’s fourth most attractive location for international and national retailers. The city benefits from a broad consumer base and strong retailer demand. Luxembourg City has a central location in the country and is relatively dense: the city contains approximately 20% of the country’s inhabitants on 2% of its territory. More than two-thirds of the city’s inhabitants are foreign, mainly originating from other countries of the European Union. This is a consequence of the presence of a number of European institutions, including the Court of Justice of the European Union, the European Court of Auditors, the European Investment bank and several departments of the European Commission and the secretariat of the European Parliament.

Luxembourg has, by far, the highest gross domestic product per capita (in purchasing power standards) in the European Union, as well as the highest actual individual consumption. Luxembourg’s high spending power makes it attractive for luxury and premium retailers. Luxembourg City is located centrally in the country, and its prime retail zones are easily accessible by car and by public transport. Tourism is another driver of retail, as Luxembourg City’s old quarters and fortifications are classified as an Unesco world heritage site.

The Luxembourg City property market has relatively low transparency in comparison with other European cities, but its location, its infrastructure, its heritage sites, its spending power and the presence of many international retailers are stable market drivers.

The main shopping zone in the city centre is along Grand-Rue and its adjoining streets, including Avenue de la Porte-Neuve, Rue des Capucins and Place d’Armes. A large variety of mainstream and premium brands are located in the area, with drivers such as H&M, Zara, Massimo Dutti, Jack & Jones and Tommy Hilfiger. The city centre also houses a luxury cluster on Rue Philippe II, where haute couture houses such as Cartier, Chanel and newcomer Dior are located, and which will extend in the future towards the soon-to-open Royal-Hamilius shopping centre.

The prime retail zone of the city is located within walking distance of the old city centre and close to office areas. This prime catchment area of the country, and the wider region, includes a small luxury cluster that may extend in the future towards the Royal-Hamilius project. This is part of the international expansion programme of the Hudson‘s Bay Company, a Canadian retail business group that recently acquired Galeria Inno. Another prime retail zone near the central train station boasts high footfall and is where many international mainstream brands can be found. The central commercial zone will experience a wave of expansion beginning in the second half of 2018 with the opening of two large shopping centres, the first of which will be located within the Royal-Hamilius development. The second notable retail development set to open at the second quarter of 2019 is the Cloche d’Or shopping centre (75,000 sq m) in the city’s south, which will offer 120 retail units together with an Auchan hypermarket.

Rank 4

Luxembourg

Grand-Rue, Luxembourg City


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Market statistics at a glance

Brussels Antwerp Ghent Liège Hasselt Bruges Amsterdam Rotterdam Utrecht The Hague Eindhoven Maastricht Luxembourg City

Population per city 2016

(No. inhabitants) 1.175,000 517,040 257,030 196,970 76,690 118,050 821,800 623,700 334,200 515,000 223,300 122,400 115,230

Population (within 30 minutes

drivetime*) 2.1 million 1.6 million 1.08 million 1.14 million 780,000 522,850 2.16 million 2.6 million 1.9 million 2.23 million 1.2 million 582,000 554,000

GDP per capita(EU index = 100) 117 117 117 117 117 117 129 129 129 129 129 129 271

Purchasing Power (per capita) € 20,420 € 21,110 € 21,600 € 18,560 € 20,090 € 21,120 € 30,800 € 34,600 € 33,900 € 31,600 € 31,500 € 30,400 € 28,390

Retail Spending per capita

(food & fashion) € 4,550 € 4,540 € 4,590 € 4,220 € 4,310 € 4,530 € 4,100 € 3,840 € 4,030 € 3,910 € 3,830 € 3,800 € 6,160

International retailer presence

(presence of 200 selected retailers) 71% 68% 28% 27% 31% 26% 78% 40% 31% 35% 26% 28% 45%

Prime rent (€/sq m/year) € 2,000 € 2,000 € 1,450 € 1,200 € 1,100 € 1,200 € 2,950 € 1.830 € 1.680 € 1,400 € 1,400 € 1,650 € 1,560

Tourism (arrival # persons) 3.35 million 1.08 million 566,300 209,000 121,550 1.11 million 4.5 million 1.7 million 3 million 885,900 300,000 3 million 647,580

OPEN

Brussels Antwerp Ghent Liège Hasselt Bruges Amsterdam Rotterdam Utrecht The Hague Eindhoven Maastricht Luxembourg City

Population per city 2016

(No. inhabitants) 1.175,000 517,040 257,030 196,970 76,690 118,050 821,800 623,700 334,200 515,000 223,300 122,400 115,230

Population (within 30 minutes

drivetime*) 2.1 million 1.6 million 1.08 million 1.14 million 780,000 522,850 2.16 million 2.6 million 1.9 million 2.23 million 1.2 million 582,000 554,000

GDP per capita(EU index = 100) 117 117 117 117 117 117 129 129 129 129 129 129 271

Purchasing Power (per capita) € 20,420 € 21,110 € 21,600 € 18,560 € 20,090 € 21,120 € 30,800 € 34,600 € 33,900 € 31,600 € 31,500 € 30,400 € 28,390

Retail Spending per capita

(food & fashion) € 4,550 € 4,540 € 4,590 € 4,220 € 4,310 € 4,530 € 4,100 € 3,840 € 4,030 € 3,910 € 3,830 € 3,800 € 6,160

International retailer presence

(presence of 200 selected retailers) 71% 68% 28% 27% 31% 26% 78% 40% 31% 35% 26% 28% 45%

Prime rent (€/sq m/year) € 2,000 € 2,000 € 1,450 € 1,200 € 1,100 € 1,200 € 2,950 € 1.830 € 1.680 € 1,400 € 1,400 € 1,650 € 1,560

Tourism (arrival # persons) 3.35 million 1.08 million 566,300 209,000 121,550 1.11 million 4.5 million 1.7 million 3 million 885,900 300,000 3 million 647,580

OPEN


Trends in the Benelux luxury market

The retail market for luxury goods is maturing and stabilising in Benelux. The luxury market has been relatively resilient to economic crises, and the number of consumers has increased by 13% since 2013. Despite the global economic turmoil and geopolitical issues worldwide, there has been continued strong demand by wealthy consumers for luxury goods, with growth in spending for high-end goods encompassing jewellery and other accessories, cars, clothing, perfumes and cosmetics.

Luxury markets in the top four cities Amsterdam, Brussels, Antwerp and Luxembourg City can expect continuing strong growth led by demand for luxury shopping, with a good influx of European, US and Asian customers, the latter two benefitting from a weak euro. Tourism growth is having a growing impact on retailer expansion strategies, with luxury brands using tourism statistics as a guide on where to establish new stores. Combined tourist arrivals in the three Benelux capitals amounted to nearly 11 million in 2015.

Unlike mainstream retailers, who regularly penetrate beyond the core markets, luxury retailers generally take a conservative approach and cluster within luxury areas or streets in larger conurbations with high tourism flows. To reach customers outside these clusters, luxury retailers mainly focus on their wholesale business. This new focus on city-level strategies, rather than the traditional regional-level strategies, provides cities with the chance to grow their luxury market segments.

The growth of the luxury retail market in Benelux is also reflected in the number of flagship store openings in the last 24 months. Larger and more established retailers often position several of their retail stores as showrooms or brand pavilions, and locate them in prime locations with high occupancy costs. This flagship store strategy places less importance on turnover and more importance on providing a unique consumer experience and increasing brand awareness. Examples of luxury flagship stores in Benelux include Montblanc, Chanel and Belgian retailer Natan on P.C. Hooftstraat in Amsterdam, the upcoming Dolce & Gabbana and Fabiana Filippi flagship stores on Boulevard de Waterloo in Brussels, Chanel and Montblanc on Schuttershofstraat in Antwerp, and the recently opened Dior and Christian Louboutin flagship stores on Rue Philippe II in Luxembourg City.

Amsterdam ranks highest …

As in the city attractiveness rankings for international and national retailers, Amsterdam, Brussels and Antwerp also lead the city attractiveness rankings for luxury brands. These markets represent Benelux’s most mature luxury markets, each with a critical mass of international luxury retailers which attract both domestic and international customers.

Large international luxury brands keep investing in the Netherlands, with flagship stores from brands such as Michael Kors and Chanel targeting not just domestic consumers but also the rising flow of affluent tourists visiting the country.

As global demand for luxury goods has grown, and as the luxury retail market in the Netherlands has matured, an increasing number of national and international luxury retailers have expanded their Dutch operations. Reflecting the fact that luxury retailers tend to cluster together, in recent years, retailer demand in the Netherlands has increased in specific locations, notably on P.C. Hooftstraat and Bijenkorf in Amsterdam, where nearly all international luxury retailers entering the Dutch market open their first store.

The street, which is the city’s best-known luxury zone, today includes luxury brands such as Prada, Louis Vuitton, Gucci, Chanel, Dolce & Gabbana, Dior, Bulgari, Tiffany & Co, Cartier, IWC Schaffhausen, Jimmy Choo and Longchamp. Luxury brands that do not yet have a presence on P.C. Hooftstraat are the primary drivers of demand for retail space on the street.

In Brussels, luxury brands tend to concentrate in the Haut de la Ville, the so-called uptown retail zone that consists of Chaussée d’Ixelles, Avenue Louise, Avenue de la Toison d’Or and Boulevard de Waterloo, the latter of which has become the most exclusive luxury cluster in Brussels. At the end of the 19th century, this large boulevard was the most distinguished place to go for a stroll in Brussels, and today it is a pleasant shopping and residential area that includes a luxury hotel and is close to fashionable bars and restaurants.

Up and down Boulevard de Waterloo, flagship stores of renowned fashion houses can be found, including Chanel, Dior, Gucci, Giorgio Armani and Versace. In addition, many luxury jewellers such as Cartier, Bulgari, La Maison du Diamant and Wolfers are located here alongside high-end brands such as Louis Vuitton, Hermès, Jimmy Choo and Sergio Rossi.

4. Luxury

Glass façade in front, P.C. Hooftstraat Amsterdam


A growing luxury market in Antwerp

The luxury market in Antwerp is concentrated on and around Schuttershofstraat and its prolongation, Hopland, which run parallel to Meir, the city’s prime high street. The luxury streets are within easy walking distance from Meir via Huidevettersstraat, which also houses a number of luxury retailers such as Natan and Gucci at its end. Schuttershofstraat is located in the Quartier Latin, a lively and classy neighbourhood with two large theatres, the Bourla and the Stadsschouwburg, many bars and restaurants, and also antiques shops. Hopland and Schuttershofstraat offer a long succession of luxury boutiques such as BCBG Max Azria, Chanel, Delvaux, Hermès, Jimmy Choo, Karl Lagerfeld, Moncler, Philipp Plein, Paul Smith and Emporio Armani.

Opportunities and challenges within the luxury market

While the global luxury market weathered the recession well, it is certainly not immune to the current economic conditions. The recent slowdown in the Chinese economy could have an impact on international tourism flows and luxury sales in Benelux. Also, global political turmoil currently negatively affects inbound tourism to Europe and Benelux, although longer term prospects are for a positive impact from tourism on the luxury goods market.

In addition, e-commerce is another challenge for luxury retailers. Luxury retailers are limited in offering a premium online shopping experience that can mimic the personalised, hands-on in-store experience that defines the luxury segment. However, in order to keep up with the desires of consumers, luxury retailers have to figure out how to build a premium online experience in addition to focusing on their physical stores.

Pauw tops the rankings

Due to the relatively mature and stable nature of the Benelux luxury retail market, luxury brands generally focus on careful company-owned strategies that protect and enhance the brand. In our city sample, Pauw, with 14 shops only in the Netherlands, has the highest presence in the region and is clearly number one in the rankings.

“Italian luxury brands also have dominant presence in Benelux, with Max Mara ranking high in our city sample, followed by Liu Jo and La Perla. Expensive luxury retailers include up-and-coming brands such as Philipp Plein, BCBG Max Azria, Loro Piana and Pomellato, while established brands such as Louis Vuitton, Chanel, Jimmy Choo, Tiffany & Co Longchamp and Rolex have been expanding their Benelux presence over the last few years. Whilst Missoni is not present in the 13 retail cities, the brand is present in shops-in-shops and multi-brand stores, which do not figure into this report.

1

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Key Luxury retailers

12=2=34=4=56=6=6=6=6=7=7=7=7=7=7=7=7=7=7=8=8=8=8=8=8=8=8=9=9=9=9=9=9=10

% out of selected luxury brands

PauwCaroline Biss

Max MaraLiu-Jo

LongchampLa Perla

ValentinoLouis Vuitton

HermèsDolce & Gabbana

GucciEmporio Armani

Mont BlancCartier

BCBG Max AzriaJimmy Choo

ChanelChristian Dior

ChopardBurberry

Ermenegildo ZegnaKarl Lagerfeld

Tod'sSalvatore Ferragamo

PradaBulgari

Tiffany & Co.Loewe

PomellatoGiorgio Armani

BallyVan Cleef & Arpels

Miu MiuLoro Piana

Christian LouboutinDries van Noten

Rolex0% 2% 4% 6% 8% 10% 12%

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The changing foodservice landscape

Throughout Europe, we are seeing changes in consumer behaviour that are having a very strong impact on the type of foodservice offered. The trend we see can largely be separated into two categories: one being the increasing importance of ‘time’ for consumers because of our changed behaviour in which we have lesser time for leisure purposes and thus value quality of services offered more than the quantity we experience. The other being the perceived value of places which give us the opportunity to ‘unwind’ and ‘relax’. As a result, one of the main beneficiaries of this is the foodservice industry. For the first category, we use foodservice providers on the way to work, at the roadside, at railway stations and airports, on the street, around and in our offices of even at home through the increasing availability of quality food through delivery companies such as Deliveroo or Foodora. On the other hand, when meeting friends, family or loved ones for a social gathering, we increasingly value the area in which we can unwind and relax for eating and drinking. The latter can either be a visit to a destination focusing on food & beverage or a visit to a major retail city that offers food & beverage as a complimentary service to its retail offering. The demand for foodservice space cannot just be satisfied by square metres. Food places need to be destinations of their own and provide an experience that goes beyond pure retailing to compete for our time and our emotional connection. Simply put, guests expect great places in which to eat, and this has meant a huge change in the quality of fit-out, delivery and excitement around food. One of the main impacts of this new-found consumer expectation on the physical environment is the growth, both in the quantity and importance, of the food and beverage sector in Benelux. The space dedicated to food and beverage is increasing in volume, quality and importance each year. Over the last 10 years, shopping centres have seen a 100% growth in space occupied by food and beverage operators, and this is set to grow further across the next 5 to 10 years by an expected further 50% in Benelux. This is demonstrated by the retail developments in Brussels, Amsterdam, Rotterdam and Luxembourg City that include significant food components. Historically, the growth in foodservice space in shopping centres across Europe, and especially in the Benelux countries, has been slower than in individual markets like the UK, Spain and Germany. There was already a very strong food culture outside of the shopping centre industry in Europe and many cities and towns have strong foodservice provision. In European shopping centres, the amount of space typically dedicated to foodservice has grown from 5% 10 years ago, to 10%–15% today, but what is really interesting is the change in quality and range that has also occurred. Shopping centres across Benelux have widened the range of choices and price points while improving and upgrading quality, as they have embraced their changing role as a food destination, and they understand that they cannot simply provide basic fast food. This, in turn, is making operators improve what they do, with exciting new brands and formats appearing. The divide between high street and shopping centre foodservice is rapidly closing, as both formats realise they need each other for successful business in the future. Some of the major trends impacting the Benelux food and beverage industry are outlined in the next paragraphs, and as ever these evolve. Each year our Foodservice Consulting team publish their new Trends, which helps guiding clients, operators and tenants in the right direction as food and drink become more and more a part of our everyday lives.

Give me what I want, what I really, really want

The major change in consumer behaviour in foodservice in the last decade is that now, diners know exactly what they want. They know more about food, they cook, they bake, they indulge in a range of cuisines and they travel. They are better informed about their choices and options and, as a result, they are more discerning. This has led to higher standards, better operations and broader choice in the foodservice industry. It has also led to restaurants focusing on small product groups, or even single products or concepts like burgers, wraps, barbecue or chicken. This approach reflects the growing desire among restaurants to do something well and be famous for it in order to stand out against a broader choice of restaurants.

As we spend the precious time we have, eating out is now so much more about experience, and is to be savoured and enjoyed. Creating foodservice environments that capture and create an experience is key. Developers and landlords can no longer just create spaces; they need to be in the business of place making, combining great space, great food and great atmosphere to ensure that the right environment is created where operators can be successful. This might be in traditional shopping centres like the City 2 Shopping Mall in Brussels or in the new breed of shopping and leisure destinations like Docks Bruxsel.

Operators also have to think carefully about not only how they can create an experience for their guests, but how guests can share their location, food, drink and overall experience. The foodservice market in Benelux region has a strong social element to it, with a good mix of small independent operators creating environments for guests to enjoy.

5. Food and Beverage

Markthal, Rotterdam


Technology, and its impact on the restaurant industry, is huge and still growing. We will never be able to ‘eat online’, but technology and the internet – especially the mobile internet – has changed how we search for, find and use foodservice providers. Importantly, this trend focuses on how restaurants and retail spaces should have the appropriate level of technology for guests to use. Guests are now using their smart devices to find a place to eat, check the online reviews and then immediately interact using social media. Restaurants are now providing different service and delivery options – often through third parties – which, in some cases, is generating 15%–30% more turnover. This is smart use of real estate and smart use of technology. With companies such as Deliveroo operating across Benelux, delivery of food for consumers is becoming easier and more efficient. This digital trend has not only influenced how restaurants interact with and serve their customers, but it has created a whole new competitive market for these third-party takeaway and delivery companies.

A booming trend across Europe and emerging in the rest of the world, pop-up restaurants and eateries help create an in-the-know, social experience. Designed specifically to meet demand and, in some instances, create their own demand, pop-ups are often situated on the street, or use old buildings or plots. Once they are gone, they are gone, and, as a result, they create a moment in time for guests. Foodservice operators can vary between ultra-high-end, very basic or something in between.

An example in Benelux includes the creation by ‘moving circus’ BAUT in Amsterdam. This pop-up restaurant settles in a new location every few months. It recently opened its restaurant in the city centre of Amsterdam, near Kalverstraat, in the old Vroom & Dreesman building. This is a well-known Dutch retail department store which closed its doors after more than 100 years.

Another pop-up example in Amsterdam is Eenmaal, which temporarily opened in 2014 as the world’s first restaurant for solo diners – no couples, no families and no groups allowed. Sleek black desks and tables were dotted around the sparse, industrial-chic space, helping solo diners feel comfortable.

More people are eating out more frequently and, within the Benelux region, eating out is very much a social event. In the Netherlands, there was a 5.6% increase in restaurant turnover in 2015 compared to the previous year, with guests spending an average of approximately € 30,- each on a meal in a traditional Dutch restaurant. However, this is just one side of the story. We are also seeing a growing number of smaller, lower-value transactions, because foodservice is always at our fingertips – it is easily accessible, affordable and ubiquitous.

As a result of this flexible and all-inclusive approach, spaces have been reconfigured and tables are sometimes arranged communally. It is therefore common now to find business people in suits next to families, next to students, next to young teenagers. Guests’ expectations are now to eat what they want, when they want, which eliminates the traditional mealtimes that have dictated foodservice operations in the past. This trend is magnified in higher footfall locations, such as tourist destinations, major transport hubs and shopping centres.

A new innovative concept in Belgium is Wasbar. It opened shops in Antwerp and Ghent and is expanding. The idea is to do your laundry whilst enjoying food and drinks in a trendy bar, with occasional concerts and events. Cook & Book in Brussels combines a trendy book shop and a restaurant. Another expanding concept is Cook & Serve that sells trendy kitchenware for the hobby chef in experience stores in centrally located shopping streets.

Dining Diversity

Pop-ups, pop-up everywhere

Living in a connected world

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Wasbar,Antwerp


Many people now travel extensively and include food in their holidays, and these food tourists are an important part of the global foodservice industry. The Benelux region is rich in food history and food culture, boasting some of the finest providers of beer, chocolates, cheese, bakery and fine artisan produce. Food is ingrained in the local cultures and is a strong part of daily life, and this is attractive to visitors and tourists alike. Many new concepts and developments have created unique and stylish ways to provide both a dining destination as well as a gourmet marketplace where guests can buy food items to take home and consume. In Europe over the past few years, there has been a rise in the number of food halls, indoor markets and food hubs dedicated to local, regional and independent food sellers.

These concepts exploit a number of different trends and seasonal occurrences, such as local sourcing and social shopping environments. As shopping centres evolve to respond to underlying trends, these concepts are fast becoming a positive anchor and a unique selling point that attracts consumers. In 2015, foodservice growth in Benelux showed a 2% year-on-year increase, which can mostly be attributed to independent, local operators rather than larger international expansion.

A notable example of this trend in the Benelux region is the Markthal in Rotterdam. Opened in 2014, the food market provides locals with traditional, regional traders and a range of local, national and international restaurants. In addition, Amsterdam’s first indoor food market, the Food hall, opened its doors in 2014. Other examples are the food court of the new shopping district Docks Bruxsel, which opened its door in October 2016 and Mercado in Antwerp, which is a new food hall that will open in the former post office building on Groenplaats. In addition, in Luxembourg City, the sky restaurant in the Royal-Hamilius shopping centre will open in the second half of 2018 and will provide a new state-of-the-art dining experience. And international concepts, such as Eataly, a large Italian marketplace, are also targeting Benelux.

Whilst the overall retail market is becoming more international, the food and beverage market is still significantly less internationalised than the fashion market, for instance. However, the growing aspirational middle class in developing markets, coupled with low growth in domestic markets in the US and Europe and fuelled by globalisation and tourism, has increased the pace of internationalisation in the foodservice industry. This not only applies to the largest operators such as McDonald’s and Subway, but also takes into account the ‘younger’ brands such as Wagamama, Chipotle and Vapiano.

Local food, local flavour

Increasing globalisation of foodservice industry

Selection of main F&B operators in Benelux by No. of Outlets

491 Outlets 107 Outlets 93 Outlets 68 Outlets 6 Outlets

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Food hall, Amsterdam

Source: Jonathan Doughty, Foodservice Consulting JLL, 2016


The physical store’s role is changing, but it remains core to retailing goods and can act as primary distribution channel or support a wider wholesale, franchise or online business. The way retailers will value physical space is evolving, and new multi-channel models will undoubtedly emerge. The “phygital” store is on its way.

Retailers present in the prime high streets of Benelux benefit from a transparent market in stable, long-established democracies. The main retail cities in Benelux have a varied customer base that ranges from business-related visitors to international leisure tourists. For many, these Benelux cities are the next logical port of call after visits to Europe’s most globally renowned shopping cities, which include London, Paris, Milan, Madrid and Berlin. In light of this, Benelux forms an important second-tier entry point into Europe for brands looking to expand further into Europe after entering these first-tier retail cities. The prime retail markets in Benelux have proven their resilience despite challenging economic and political circumstances globally. As the economy slowly recovers in Benelux and the population expands, particularly in its cities, the prime retail zones in Benelux offer future-proof stability for retailers.

Online retail impacts the strategy of retailers

Online retail has melted into physical retail, and whilst physical shops offer a great shopping experience that customers cannot find online, e-commerce has impacted the strategy of retailers worldwide and throughout Benelux. Online retail remains a growth sector, and the investment in online retail has induced an optimisation of the physical network of shops, whereby retailers downsize their networks, reducing the number of shops and focusing their physical presence on prime locations. We expect this trend to continue in the near to medium term, as long as online retail remains a growth sector in Benelux. This in turn creates opportunities not only for the development of large flagship stores in prime locations, but also for the repositioning of inner-city retail in secondary locations to complement the online offer and the offer in physical shops in prime retail cities and shopping centres.

Flagship stores in prime locations

The presence and growth of flagship stores in Benelux’s retail cities proves the importance of quality physical shops for a brand. Customers expect a comprehensive offer combined with a pleasant shopping experience in quality spaces in top locations. A flagship

store enhances the brand image and creates a unique opportunity for the customer to interact with the brand in a high-quality environment.

Growth of both the luxury and mainstream retail markets

Luxury retail clusters are thriving. As luxury goods are less oriented towards online retail given the exclusive character of their brands, they are also less impacted by the growth of online retail. The growth of global tourism also enhances their sales figures. Successful luxury streets are often located just off the busiest high streets in the main retail cities. In Benelux, P.C. Hooftstraat in Amsterdam, Boulevard de Waterloo in Brussels and Rue Philippe II, the Royal-Hamilius area, in Luxembourg City are renowned luxury streets with an extensive offer of international luxury brands. We expect the retailer demand from these types of brands to remain high.

We also see growth in mainstream brands whose products are either fast-moving consumer goods or discount goods, and who are immune to online sales, since the delivery costs of the goods they sell generally exceed the price of the purchase. Examples of retailers expanding in this segment are Primark and Action.

The food and beverage offer diversifies and increases

Customers spend more time shopping if there is a food and drinks offer nearby, which is especially important since consumers’ time is scarcer than ever. Not only that, but places such as food courts become destinations in their own right, and they create a customer experience that goes beyond pure retailing. Shopping centres in Europe were the first to respond to this demand by increasing the area devoted to foodservice from 5% of their space 10 years ago to 10%–15% today, and by diversifying their food and beverage offer, which creates opportunities for new brands and formats. High streets are closing the gap as they, too, are coming to realise the importance of foodservice. This represents a growth opportunity for high streets in the years to come.

Overall, the Benelux retail market is a relatively transparent and mature market. Although vacancy in prime locations is low, opportunities can be found for well-informed retailers. Prime retail locations have shown resilience in times of political and economic crisis in the past, which bodes well for the future. We can therefore say with confidence that retailers who offer the right physical shop in the right location will be successful.

6. Outlook

H&M Flagship Store, Amsterdam


The analysis looks at the presence of retailers in the specific cities covered, as well as retailers that are opening imminently. It focuses solely on retailers’ own shop networks, including franchises. Retailer concessions are excluded, as are second-line brands, multi-brand stores and branded shops within department stores (i.e. shops-in-shops), due to the lack of transparency. The study sample consists of 200 international retail brands, with a focus on non-food brands, with each brand having a significant presence in at least one main city in Benelux.

Geographically, the study focuses on the main retail zones of each city, concentrating on its best-known shopping areas but also looking at shopping centres and malls in prime out-of-town locations.

Prime rents represent the top open-market rent that could be expected to be paid by international and/or luxury retailers, excluding incentives, for a notional unit of the highest quality and specification in the most prime location in a market. The rent values analysed and used date from the second quarter of 2016.

Methodology

Authors

This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

Thierry Debourse*

Head of Retail Benelux+32 (0) 2 550 25 [email protected]* SPRL ECML Consulting

Tessa van VoorthuizenResearch Consultant, The Netherlands+31 (0)20 5 405 [email protected]

Walter GoossensHead of Retail Belgium+32 (0)2 550 25 [email protected]

Chris van KaamHead of Retail Netherlands+31 (0)20 5 405 [email protected]

Ann VanderwegenSenior Research Analyst, Belux+32 (0)2 550 26 [email protected]

Pierre-Paul VerelstHead of Research, Belux+32 (0)2 550 25 [email protected]

Sven BertensHead of Research, The Netherlands+31 (0)20 5 405 [email protected]

Valina SempotHead of Marketing & Communications+32 (0)2 550 25 [email protected]

Anke BusserHead of Marketing & Communications +31 (0)20 5 405 [email protected]

Contacts

Photography in this report: Serge Brison Photography, ©S. Schmitt - globalview.be for Equilis, Flanders Today, Ruimtes in beeld

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