DIRECT MARKET REPORT GERMAN RETAIL - Europe Real Estate

Major cities like Berlin, Hamburg and Munich generate the highest retail turnover
in absolute terms, but it is also well worth mentioning the more than 80 midsized
towns and cities in Germany with populations in excess of 100,000. Actually these
can be regarded as the heart of an economic area, providing services to the
surrounding region.
Exhibit 13 Population forecast 2020 and Purchasing Power
source: Berlin-Institut für Weltbevölkerung und globale Entwicklung
Retail power per conglomerate
In order to determine which cities and its wider surroundings are best positioned
to house retail, one can find some key performance indicators in exhibit 14.
Besides the size of the population and its dynamics, the purchase power index
(Germany = 100) provides for an indication if the conglomerate is viable or not
for retail. The turnover index, also called the retail turnover at Point of Sale index,
gives a more effective view on the earlier mentioned purchase power index. Retail
trade centrality brings the previous indices together and is the ‘outcome’ for the
desirability of a retail-location; if the centrality value is > 100 than purchase
power is ‘flowing in’, if the value is below 100 purchase power ‘flows out’.
German retail update - 28/11/2007 14