Almost three-quarters of European retailers confirm they have plans for further expansion of their physical stores, according to CBRE’s 2024 European Retail Occupier Survey.
71% of retailers that already have plans in place to increase their brick and mortar offering expect to do so in markets they already have a presence in.
In the CBRE’s survey findings from 2022, only 26% of respondents cited a desire to increase the size of their physical stores. This figure has increased this year to 72%.
“Improved consumer confidence is starting to translate into higher levels of consumer spending, which is giving retailers confidence to commit to stores both in markets familiar to them, and new markets altogether. Brand loyalty is often enhanced through in-store experience, and this is where we see retailers really committing to store investments and using bricks and mortar to truly showcase their brand identity,” says Chris Gardener, head of European retail at CBRE.
Other trends that the survey found include luxury retailers showing an increasing desire to own their stores, rather than renting out the space. Nearly half of retailers also wished to target retail park locations. And 61% of respondents said they were exploring AI solutions.
This research coming to light in our digital-first age is truly fascinating. Retailers are recognising the importance of physical stores and reaching their customers face-to-face. Since the pandemic, the retail industry has taken a hit and been forced to move online. This new research presents a shift in customer behaviour and desires.