Wall Street Journal: European Mall Landlords Coping With Online Competition Better Than U.S. Owners
From the Wall Street Journal:
Like in the U.S., the retail world in Europe has been turned upside down by the brave new world of shopping that enables you to buy practically anything while sitting in your pajamas at the computer or waiting in line with your phone.
But the pain to European retail landlords has been less severe.
Shares of listed European retail real-estate companies have fallen but not as far as their U.S. counterparts. Values of European malls and shopping centers continue to rise in some European markets while they’re falling throughout the U.S.
Retailers in Europe currently are healthier, in part, because many of the weaker ones failed during the financial upheaval between 2008 and 2009 and between 2011 and 2013, said Hemant Kotak, analyst at Green Street Advisors.
“We had a cleansing process in the last downturn and what survived were the better concepts and the ones with the better financial positions,” said London-based Mr. Kotak.
The one exception in Europe that faces a cloudier outlook is the U.K., which has more online shopping than others on the continent and faces uncertainties from Brexit. A weakening pound that has yet to fully flow through to consumers could exacerbate pressures on consumers especially if the housing market remains lackluster and interest rates go up, said Green Street Advisors in a report in August.
Read the full article from the Wall Street Journal here.