In Spain, the retail sector shows a promising outlook, having recovered to pre-pandemic levels and presenting attractive opportunities for growth and investment, according to Savills' Retail Trends presentation.
During this meeting, global retail trends and the reasons behind the firm's commitment to this segment in recent years were analysed. Savills experts highlighted that retail activity in Spain will continue to increase in 2023, driven by a clear recovery in sales, despite the current context of instability.
The event was opened by James Sparrow, CEO of Savills UK and EMEA, and was presented by Luis Espadas, executive director of Retail in Spain, as well as Patricia Matías, national director of Retail Services, together with David Barragán and Andrés Martín, the latter also executive director and leader of the Retail High Street team at Savills.
Growth in shopping centres and retail parks, high street and online retailing
In the area of shopping centres and retail parks, sales have experienced a remarkable growth of 8.8% so far this year. It is noted that consumer behaviour has become more practical and rational, as although they visit these places less frequently, they make more substantial purchases on each occasion, which has led to an increase in average spending.
As for high street retailing, Savills data shows that it is currently experiencing a good momentum in Spain. The average availability rate on high streets has returned to pre-pandemic levels, falling to 6.5% after exceeding 10% in 2020. However, with the exception of prime rents, the average rental price has not yet reached pre-pandemic levels.
In this segment, fashion, which has opted to establish fewer shops but in a more selective manner, and qualified catering, which has consolidated and attracts international groups, stand out. The influence of the new healthy culture has also been observed, with the emergence of new concepts that increase average spending. In addition, luxury retail is focusing on prime locations and the arrival of new brands following the trend of hotel brands in the most exclusive categories has been observed.
A major trend in high street retail is the commitment to sustainability, which has become the focus of operators' strategies.
As for ecommerce, its growth has slowed compared to previous months and has now been integrated as a support within omni-channel strategies for brands. Specifically, Savills explains that 26% of online sales are attributed to the physical shop.
Finally, the meeting addressed the main investment trends in the retail sector. While institutional investment focuses on the convenience and resilience offered by retail parks and supermarkets, private investors are interested in retail and mid-markets.