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News Release

London - Moscow

Experian & Jones Lang LaSalle Launch Joint European Retail Rankings

London and Paris Top the European Shopping League


London - Moscow, 19th June 2009 – Experian and commercial real estate firm Jones Lang LaSalle have launched the 2009 European Retail Centre Rankings, which for the first time shows the relationship between consumer spending in European cities and prime retail rents. The new rankings have been designed to equip investors, developers and retailers with crucial insights into the best European location opportunities.
 
London and Paris are clearly the place to be in Europe, as the cities occupying the first and second positions in the rankings in terms of consumer spend have some of the highest prime rents. Italy, Germany and Spain all have two centres each that make the top 10 of the European Rankings. Moscow is the only city in Central and Eastern Europe to break into the top 10.
 
Rome, in third place, edges Milan as the top Italian location, largely thanks to its importance as a tourist destination and the relative lack of competition to its downtown retail offer. In both cites rents for super-prime units can reach levels commonly found in London and Paris, although their general rental level is much lower.
 
The dominance of London on the UK retail landscape is evident, with Glasgow being the only other top 20 entrant.
Going against preconceptions that the UK is an expensive occupier market, locations away from London have prime high street rental levels that are comparable to those in the wider European pack, although UK rents are currently lower than they normally are relative to other European cities, due to recent exchange rate fluctuations.
 
In Germany, whilst overall spend is highest in Berlin, rental levels are much higher in Munich and Frankfurt. This reflects strong occupier demand and a high quality mix of retailers, and for this reason Munich is widely considered to be the top retail location in Germany. Likewise, Dusseldorf, ranked 43rd in terms of spending, has a strong luxury retail offer with the 13th highest rental level in Europe, and has a spend per capita to match.  This highlights the importance of analysing both spend and rental levels when assessing a city's retail potential. The Euro Retail Rankings are the first rankings to combine both spend and prime rental levels to understand the quality of a city's retail provision and the turnover levels that retailers can achieve.
 
Locations from Central & Eastern Europe account for only 10 per cent of the top 50, demonstrating that despite a boom in retail development over the last few years, downtown areas still generally lack the quality and quantity of retail stock found in Western European cities. Relative disparities in spend per capita are also a major factor in the limited number of CEE cities entering the top 50. Despite this, Prague, Istanbul and Budapest all rank highly thanks to their strong downtown shopping centre offer.
 
Stockholm (26th position) and Helsinki (27th) have comparatively lower rents than their peers in mainland Europe, due in part to historically weaker demand from international retailers (largely for logistical reasons) although this is now changing.
 
There is little to separate many of the locations outside the top 25, with Warsaw (52nd) and St Petersburg (65th) for instance having a similar catchment spend to higher ranked cities such as Antwerp (50th) and Bordeaux (46th). They only fall short of the top 50 due in part to the comparatively lower downtown retail space provision and heightened competition from out-of-town shopping centres.
 
Jonathan de Mello, director of Retail Property Consultancy, commented: “Our pan-European retail rankings, with the addition of rental data from Jones Lang LaSalle, will provide retailers and property investors with unique insight into the best retail centres in Europe. Our rankings are gravity modelled rather than drive-time based, and as such take into account the effect of competition – crucial in markets with significant out-of-town retail such as Berlin, Madrid and Lisbon. Our rankings provide the most comprehensive overview of retail centres across Europe ever.”
 
James Dolphin, head of Pan-European Retail Agency at Jones Lang LaSalle said: “The Euro Rankings provide a major step forward in establishing and comparing the size of the retail spend in major European cities.  This is a crucial first base in assessing the opportunity for retailers, developers, and investors. But it’s not just about size: understanding rental levels is equally important.  By combining both and applying our specialist retail agent’s knowledge and expertise in each country, we can better understand the quality of the retail environment, occupier demand, availability of space and ultimately provide a guide to helping determine potential turnover.  As ever, it is about local expertise and fully understanding the unique supply and demand characteristics in each location.”
 
Experian has analysed levels of retail expenditure for all the major European destinations alongside rental data from Jones Lang LaSalle. The European rankings draw on Experian’s unique and extensive global data resources to calculate total retail spend for each major European destination. For each city, the rankings take into account cross border spend, spend-per-head differences by country, the retail offer within each city and the effects of competing out-of-town centres.
 
This European Retail Rankings provide retailers and property investors with the most robust account of retail trade generated by Europe’s top centres. The gravity model draws on Experian’s unrivalled position as one of the world’s leading providers of retail data, analysis, economic forecasting and consultancy.
 
 
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specialising in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $41 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008 and 2009 at the Commercial Real Estate Awards (Russia). For further information, please visit our Web site, http://www.joneslanglasalle.ru
 
About Experian
Experian is a global leader in providing information, analytical and marketing services to organisations and consumers to help manage the risk and reward of commercial and financial decisions.
Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organisations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage.
For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organisations from financial services, retail and catalogue, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index.  Experian has corporate headquarters in Dublin, Ireland and has operational headquarters in Costa Mesa, California and Nottingham, UK.  The Group employs approximately 15,000 people in 40 countries worldwide, supporting clients in over 65 countries around the world. Total Group revenue for the year ended 31 March 2009 was $3.9bn.