Shopping Centre Industry Confidence Drops Again
After a promising resurgence in confidence in the previous month, sentiment among the European shopping centre industry fell away again in June as sales, footfall and re-leasing rent dropped, cancelling out the improvement of the previous month, and are actually down on the same month last year.The only improvement was in occupancy, but even this has slowed compared with the previous month. The survey results were compiled from responses of European shopping-centre executives collected between 17-30 June 2013.
The Euro-Shop Current-Conditions Index, which measures the performance of four components (sales, footfall, occupancy and re-leasing rent), showed a significant drop of 14 percentage points, cancelling out the improvement of the previous month and is six percentage points down on the same month last year.The re-leasing rent component dropped to its lowest level in seven months and it is actually the second lowest figure recorded since the survey began in 2011.
As a result, the outlook for the next six months has also suffered a setback as the Euro-Shop Expectations Index also fell with shopping centre executives expecting business conditions to worsen to the end of the year. While June’s survey results make depressing reading, expectations are still higher than this time in 2012 offering some reassurance that progress to recovery is being made.The reason for the U-turn in market sentiment compared with last month is unclear. It may well be that the optimism reported in May was a reaction to the sudden, yet belated, improvement in weather conditions which brought about a sharp rise in footfall and sales, however, these levels have clearly not been sustained and have since fallen back in line with the overall trend seen during 2013 to date (with the exception of the January sales period).