TOM 07 2025

T
TOPS
M
OF THE MONTH
TOMO
RETAIL REAL ESTATE
TOPS
OF THE
MONTH
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
THE HOTTEST DEALS +++
INTERVIEWS +++ STATEMENTS
+++ PARTICULARS +++
ANALYSES +++ PROJECTS
presented by HI-HEUTE.DE
July 2025
Retail remains a strong driving force for vibrant city centers.
Retail remains the
number one visitor attraction
Still an important driving force for city centers
Despite increasing vacancy
rates, growing online competition,
and heated debates about
mobility, brick-and-mortar
retail remains the backbone
of city centers. This is confirmed
by the latest study, “Retail
Location – City Center
2025,” conducted by CIMA
Beratung + Management on
behalf of the Bavarian Trade
Association and the Günther
Rid Foundation.
According to the study, around
75 percent of respondents (74.8
percent) come to the city center
primarily to shop – significantly
more than to visit restaurants
and cafés (66.3 percent), stroll
around town or meet friends
(53.7 percent), or visit doctors
and healthcare providers (52.4
percent).
Retail is therefore the main attraction
and economic foundation
of urban centers. “Without
retail, city centers lack vitality,”
emphasizes Michaela Pichlbauer,
board member of the Günther
Rid Foundation. “It sets the
pace around which restaurants,
services, and public spaces are
grouped in a meaningful way.”
One of the key findings of the
study is that how people get into
the city has a significant influence
on their consumer behavior.
Those who come by car spend
an average of 167 euros per visit
to the city center – around
10 to 30 euros more than other
visitor groups. Retailers also benefit:
car users spend an average
of €86.50, which is also significantly
more than pedestrians
(€79.40), cyclists (€71.30), and
public transport users (€65.10).
These figures show how sensitive
the discussion about mobility
needs to be. In smaller towns and
rural areas in particular, restrictions
on car traffic can lead to
a noticeable loss of purchasing
power. Intelligent concepts are
therefore needed that balance
quality of life, accessibility, and
sustainability.
The study also comprehensively
evaluated the quality of what city
centers have to offer. The best ratings
were given to restaurants
(2.30), services (2.44), healthcare
(2.60), and shopping (2.65).
Less relevant for city center
visits and therefore rated lower
were educational institutions, libraries,
and sports facilities. The
results confirm that the range of
services on offer must be more
Photo: AdobeStock / PRODPLEUM DESIGN
closely aligned with the actual
reasons for visiting. People come
primarily to shop, eat or use services.
Leisure activities such as
culture or events are important
additions – but not the main reason
for visiting.
The Bavaria study provides local
authorities, urban developers,
and retailers with clear starting
points: in order to make city
centers fit for the future, an integrated
concept is needed that
strengthens the retail sector as
a driver of footfall – through
attractive retail spaces, good accessibility,
and urban design that
invites people to linger. If we
want to keep urban spaces lively,
economically strong, and socially
relevant, we must continue to
give them central importance in
the future.

Page 2 T O M
DEALS
July 2025
Specialty stores dominate
the investment market
Transaction volume up significantly to €2.9 billion
At the end of the first half of
the year, the investment market
for retail properties exceeded
the previous year‘s figure
by ten percent with a transaction
volume of €2.9 billion.
However, there is still a 15
percent gap compared to the
average for the past five years.
The number of transactions
also increased, rising from 96
to 112 year-on-year.
Specialist retail properties were
once again the focus of transaction
activity. It is noteworthy
that there was a significant increase
in non-food-related specialist
retail transactions. „This
is due to special effects from a
few portfolio transactions in this
segment. Nevertheless, it should
be noted that non-food-related
properties also experienced a
significant increase in liquidity,“
observes Sarah Hoffmann,
Head of Retail Investment JLL
Germany. However, ”the current
supply landscape is dominated
by classic products, which
will also account for the majority
of transactions in this segment
in the further course of the
year,“ adds Hoffmann.
Supermarkets in
second place
In addition to the two transactions
in the triple-digit million
range in the first quarter, the acquisition
of the Porta Group by
XXXL Lutz has now been added,
bringing the total to more
than €1.5 billion. Together, the
three major deals generate more
volume than the four transactions
worth more than €100 million
in the first half of last year.
The strong dominance of supermarkets,
which accounted for
43 percent of the total volume
in the first quarter as a result
of a portfolio transaction, has
been relativized in the second
quarter. At 64 percent, specialty
store products are still by far the
most important segment of the
market. However, retail parks
themselves are the biggest contributors
with 36 percent, followed
by supermarkets with 20
The Porta Group‘s furniture stores have been sold to XXXL Lutz.
percent and retail park centers
with eight percent. Shopping
centers account for 20 percent,
commercial buildings for 13
percent, and department stores
were hardly traded at all with a
share of three percent.
Increase in
transaction volume
However, Hoffmann advises
looking at the details in addition
to the shares: “One notable
transaction was the purchase of
Galeria in Freiburg im Breisgau,
which is one of the first deals
involving existing department
stores.” In general, she observes
increased purchasing activity in
the commercial building sector
in both A and B cities: „Some
transactions in this segment
have already been notarized and
are in the closing process. In addition,
further properties with
significant volumes are currently
being offered on the market.
This also applies to shopping
centers, where several transaction
processes are currently
underway. We expect a significant
increase in transaction
volume in these segments by
the end of the year,“ Hoffmann
said, looking ahead. In a comparison
of asset classes, the focus
shifted from core to core plus in
the second quarter, which now
accounts for 48 percent, while
core accounts for 26 percent.
Value add (15 percent) and opportunistic
properties with 11
percent complete the field. International
investors expanded
their portfolios by more than €1
billion, contributing 62 percent
as buyers but only 27 percent as
sellers.
Stable
prime yields
Photo: Porta Group
Prime yields in central prime
locations remain stable. Commercial
buildings in Munich
recorded the lowest prime yield
at 3.2 percent. Berlin and Hamburg
followed with 3.4 percent,
ahead of Frankfurt (3.5 percent)
and Düsseldorf (3.6 percent).
Stuttgart and Cologne completed
the field of seven metropolitan
areas with 3.7 percent each.
The other types of use also recorded
a sideways movement in
prime yields in the second quarter:
shopping centers and individual
specialty stores remain at
5.9 percent, while retail parks
remain at 4.6 percent.
Sarah Hoffmann expects the
market to remain on course for
growth: „We are seeing sustained
dynamic transaction activity
in all retail sub-segments.
The stability of the rental market
is contributing substantially
to the momentum in this market.
Investors are benefiting from a
range of opportunities, from
high-yield investments to prestigious
trophy assets. The supply
side is currently extremely
diversified and heterogeneous,
which is attracting a wide variety
of capital to the asset class.“

Page 3 T O M
TOP STATEMENT OF THE MONTH July 2025
TOP STATEMENT
July
„It‘s not just about adapting
existing models, but
finding innovative solutions
that combine different
uses and keep city
centers attractive in the
future.”
Dr. Johannes Berentzen (Managing
Director of BBE Handelsberatung,
Munich) on the question
of what role cooperation between
municipalities, investors, and project
developers plays in the redesign
of city centers.

Page 4 T O M
INTERVIEW July 2025
MEC and ECE move
even closer together
Exclusive TOM double interview with Ulrich Schmitz, member of the executive team
at ECE Marketplaces, and MEC managing director Christian Schröder
MEC and ECE have moved
even closer together following
Metro AG‘s plans to sell its
stake in the joint venture after
announcing its withdrawal.
This is because the wholesaler
has been refocusing on its
core business for some time
now and is therefore no longer
interested in corporate investments
with a focus on retail.
But what does the current collaboration
between the two
companies look like, and how
are they positioning themselves
with regard to the major
challenges of our time? These
were the focus of the first double
interview in the company‘s
history, which the two managers
Christian Schröder (MEC) and
Ulrich Schmitz (ECE) gave to
TOM editor-in-chief Thorsten
Müller at the company‘s headquarters
in Düsseldorf.
TOM: What role does retail
currently play in the German
transaction market? Why are
retail parks considered a reliable
asset class, even from an
ESG and yield perspective?
And what is the shopping center‘s
standing in this regard?
Ulrich Schmitz: The transaction
business basically came to
a standstill during the coronavirus
pandemic. And even after
that, it remained very subdued
for reasons that are well known.
But now capital is returning.
Retail properties and shopping
centers in particular are back
in demand, partly because they
have had enough time to prove
their resilience and ability to
withstand stress. What is surprising,
however, is that the
investors bidding successfully
are different players than before
the pandemic. It can also be
said that interest is focused on
particularly dominant centers in
prime locations.
Christian Schröder: The pandemic
has not harmed the retail
park business, local retail properties,
and, above all, food-anchored
local retailers—quite the
contrary. The strong growth in
working from home has had a
positive effect on food retailers‘
sales. Even after the pandemic,
there was no significant decline,
so we are still performing well
in this area. Investors value retail
parks more than ever because
of their stability and resilience.
However, there is a lot going
on in shopping center investments
at the moment, as the new
market players think differently
and view opportunities and risks
in a different light.
TOM: How is the German
retail real estate market performing
in an international
context?
Ulrich Schmitz: There are indeed
some differences across
Europe. A lot is happening in the
Eastern European market, especially
in the Czech Republic and
Poland, and there is also some
movement in Spain and Italy,
even if the processes there are
not yet really complete. Not
much is happening in Germany
at the moment, but it is very
encouraging to read in the Immobilien
Zeitung that retail real
estate has overtaken office real
estate in terms of transaction
volume. Fortunately, the recent
predictions that retail – and with
it retail real estate – is dead have
not come true.
Christian Schröder: We focus
specifically on the German market
because we are particularly
familiar with the trends and developments
here and can offer
tailor-made solutions. Demand
has been very stable here for a
long time, which is of course
very pleasing.
TOM: How are the typologies
of FMZs, hybrid formats, and
classic shopping centers changing?
What remains worthy
of differentiation and what is
converging?
Ulrich Schmitz: A lot has changed
in recent years. This applies
to the audience, the catchment
areas, and also to consumer
needs. The boundaries between
traditional shopping centers and
retail parks are becoming increasingly
blurred. As shopping
center managers, we must above
all find answers to the question
of why people should still come
to city centers and thus also to
our centers. These are offerings
that did not even exist before the
pandemic. Social media and virtual
reality are important drivers
in this regard. These new options
open up completely new
areas, which in turn contribute
to the increasingly hybrid nature
of centers. But of course,
you have to differentiate between
a local shopping center
with a focus on groceries and a
large inner-city center. The former
performed satisfactorily in
economic terms even during the
pandemic, while the latter requires
increasingly unusual offerings
and an optimized visitor
experience in order to achieve
consistently high footfall.
Christian Schröder: Specialty
retail centers have long been
located on greenfield sites. Visitors
came here to do their big
weekly shop – by car, of course,
and in a large, free parking lot.
So basically, the purchase decision
was made before arriving
at the center. Today, the picture
has changed significantly. Center
locations are increasingly
shifting toward city centers.
Shopping is no longer a oncea-week
activity, but takes place
much more frequently. Store
concepts are changing, and
with them, customer and target
groups.
Ulrich Schmitz: As the boundaries
become blurred, the tasks
of shopping center and retail
park management are also becoming
increasingly similar. Exchange
is becoming more and
more important, and learning
from each other is becoming increasingly
significant.
TOM: What synergies arise
from the close cooperation
between MEC and ECE?
Examples: joint network, concept
developments, technical
innovations in operations, etc.
Ulrich Schmitz: Of course, we
are two independent companies
that operate independently of
each other. But we make sure
that we regularly exchange information
about market and
industry developments, new
trends, concepts, etc.
Christian Schröder: Of
course, a lot of our discussions
also revolve around our tenants,
because customer groups are
becoming increasingly similar
and are overlapping more and
more. But it‘s not about the performance
of specific tenants,
but about tenants in general. Another
important aspect is that we
are both service providers for
owners and investors. It is our
job to listen carefully to what
exactly our clients‘ issues and
needs are so that we can then
provide them with appropriate
answers and solutions.
TOM: Where do asset, property,
and facility management
stand today? Is there still a
rather hierarchical structure?
How can more equality and
cooperation help to successfully
tackle major issues such
as urban development, ESG,
security, and digitalization?
Ulrich Schmitz: The enormous
complexity of modern retail real
estate today requires increasingly
intensive cooperation between
these three areas. As a rule,
this can only be achieved with a
large, competent, and high-performing
team, which only companies
of a certain size can pro-

Page 5 T O M
INTERVIEW July 2025
Giving their first joint interview: Ulrich Schmitz (ECE) and Christian Schröder (MEC).
Photo: MEC
vide. ECE and MEC have both
of these, but some tasks require
additional resources. This often
involves the mutual exchange of
highly specialized know-how.
For example, we have been dealing
extensively with security
issues lately. We can provide a
lot of input in this area.
Christian Schröder: Our approach
is always to look at and
think about the property holistically.
It is no longer enough
to focus solely on commercial
aspects or customer relations;
instead, it is much more important
to ask yourself about the
strategic orientation of the property
in order to then find the
appropriate and efficient solutions.
It is quite a challenge these
days to put together a team that
is capable of doing this – which
may also include external service
providers (e.g., in facility
management) – that works together
with the client and in their
interests to find good solutions.
Ulrich Schmitz: You have to
realize that the transition from a
hierarchical to a network structure
is a huge step. At first, this
unfamiliar methodology feels
chaotic, but then the transition
gradually reveals its qualities.
It is not the highest-ranking person
who has the final say, but
the person who has the most
knowledge and experience in
the specific subject area.
TOM: Where do AI and smart
systems create real added value
in retail property management,
for example in analysis,
space management or energy
efficiency?
Christian Schröder: First of
all, when it comes to topics
such as AI and digitalization,
it is important to focus on substance
rather than buzzwords.
The decisive factor is how we
use technology to simplify processes
and leverage economies
of scale. AI and digital tools
are already providing significant
assistance when it comes
to large volumes of data and,
in particular, order and invoice
processing, real-time reporting,
and analysis. However, we are
constantly being challenged to
think outside the box, exchange
ideas with our partners, and
keep abreast of developments in
the market.
Ulrich Schmitz: After all, not
everything that says AI on the
label actually contains AI. When
it comes to energy savings, the
magic word is usually “sensor
technology.” Our companies are
currently busy creating the conditions
for its use. AI is currently
helping us most in the back
office, for example in the digitization
of rental agreements, in
inquiry and defect management,
and in the evaluation of sales
figures. And also – almost unnoticeably
– in things like video
conferences, when entire presentations
for a foreign partner,
e.g. from the Czech Republic,
are translated in no time at all
during the meeting, as if by magic.
That‘s really impressive!
TOM: What developments
are currently being observed
in terms of space rents, salesbased
rents, and green lease
clauses? What does this mean
for investors and operators?
Ullrich Schmitz: In recent years,
we have seen a shift from a
landlord‘s market to a tenant‘s
market and a wave of insolvencies
among retailers that has still
not completely subsided. Excess
space remains a reality. This has
naturally had a major impact on
rental models and prices. The
golden age for owners with low
interest rates and high returns is
definitely behind us, but after
a few very challenging years,
everything is gradually adjusting
again. It is therefore still
possible to generate very stable
returns. However, the terms of
rental agreements have shortened
significantly compared to
the past, even though they have
now returned to the five-year level.
But that used to be ten years
for the majority of all rental agreements,
and today such agreements
are usually only signed
by large grocery retailers. There
has also been a lot of movement
among rental partners. Actions
and TEDis have a major influence
because these concepts correspond
precisely to the demand
behavior of our visitors.
Christian Schröder: Of course,
the starting position was exceptionally
favorable for many years.
This makes it all the more
important today to respond to
new requirements flexibly and
in partnership.
TOM: How important is catering
at present, also with
regard to the discussion on
rental prices?
Ulrich Schmitz: In large centers,
it is clearly playing an
increasingly important role. It
is the exact opposite of online
shopping and, with its placemaking
function, one of the
main reasons why people don‘t
do everything digitally. However,
this requires that providers
do their job well and that their
w

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Page 7 T O M
INTERVIEW July 2025
MEC and ECE move even closer together
Continued from page 5
stores are in the right locations.
In the Main Taunus Center, for
example, we have developed six
or seven completely new restaurant
units in place of the former
Karstadt building and are seeing
a huge response. Our other recently
created food gardens are
also performing very well economically
and form a strong pillar
for the regular revitalization
of the centers. Gastronomy is
such an important factor precisely
because of its high emotional
appeal. When things are
going well economically, the
operators are also in a position
to pay higher rents.
Christian Schröder: Of course,
restaurants also play a role in
retail parks, but customers have
different expectations here. It‘s
less about experiences and more
about an appropriate range of
products with fast service that
rounds off a big shopping trip.
We are currently seeing how important
it is for supplying people
who work in the surrounding
area, particularly in greenfield
locations. But of course, it is
not a massive driver of footfall
compared to large shopping
centers.
TOM: What role does retail
real estate play in revitalizing
neighborhoods? How do
mixed use, mobility, quality of
life, and social infrastructure
affect the future viability of
locations?
Ulrich Schmitz: I think demand
for mixed-use and all conceivable
uses for neighborhoods has
increased significantly and will
certainly continue to do so. We
must and want to take this into
account. There is a lot of space
available for new concepts or
complementary uses. There are
also a number of ideas for this.
Integrating healthcare services
into the upper floors is just one
example. It is very important
that we as a center open up more
and more to the outside world
and work together with the city
to develop further measures for
the people in the entire city center.
Christian Schröder: Mixed
use is definitely relevant for our
properties, and we have already
implemented it in several cases.
We have already integrated
After the interview (from left): Ulrich Schmitz, Christian Schröder, and TOM editor-in-chief Thorsten
Müller. Photo: MEC
apartments, doctors‘ offices,
post offices, dance studios,
and fitness studios into several
centers. Our location in Ahlen
is a good example of this. But
mixed use is also increasingly
becoming a social issue, which
goes hand in hand with urban
development.
TOM: How do you think retail
real estate will develop
over the next five to ten years?
Will there be further drastic
changes that will have a major
impact on the economy
and social life?
Ulrich Schmitz: I recently attended
a conference on crisis
management. One of the topics
was the increasing brutalization
of our society. Disrespect is on
the rise, and with it violence.
Physical attacks have also increased
significantly in the retail
sector, especially in the last two
years. Nowadays, people long
for places that embody an “ideal
world” and, above all, ensure
safety, but also climate-controlled
comfort, for example. Shopping
centers can be such places.
I think that in the coming years,
they will increasingly develop
a neighborhood character and
take on social functions—perhaps
they will even have to.
They must be places where
people can run errands, but also
have experiences. They must
also be able to respond to the
ever-changing needs of visitors
in a contemporary way. That‘s
how I see the future, and that‘s
how large retail properties will
also have a future.
Christian Schröder: Basically,
it‘s a good thing that real
estate is immovable. If they are
planned and built with foresight
– and above all offer great flexibility
– this is an excellent prerequisite
for a long future. This
means that, if necessary, it is
always relatively easy to react –
in terms of construction and the
mix of offerings – but of course
the ownership structure must
support this, ideally by planning
for it from the outset. In my
view, flexibility and a high level
of professional expertise are
the simplest means of ensuring
success in almost any future
scenario.
T
TOPS
O M
OF THE MONTH
TOM
TOPS
OPS F THE ONTH
OF THE
RETAIL REAL ESTATE
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
IMPRINT
MONTH
Publisher:
Business News Group GmbH
Address:
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45130 Essen
Germany
Tel. 0049-201-874 55 28
Web: www.hi-heute.de
Mail: tom@hi-heute.de
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sent by e-mail
Editorial team: Susanne Müller,
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THE HOT
INTERVIE
+++ PART
ANALYSE
presente
March

Page 9 T O M
DEALS
July 2025
Specialty stores dominate
the investment market
Transaction volume up significantly to € 2.9 billion
At the end of the first half of
the year, the investment market
for retail properties exceeded
the previous year‘s figure
by ten percent with a transaction
volume of €2.9 billion.
However, there is still a 15
percent gap compared to the
average for the past five years.
The number of transactions
also increased, rising from 96
to 112 year-on-year.
Specialist retail properties were
once again the focus of transaction
activity. It is noteworthy
that there was a significant increase
in non-food-related specialist
retail transactions. „This
is due to special effects from a
few portfolio transactions in this
segment. Nevertheless, it should
be noted that non-food-related
properties also experienced a
significant increase in liquidity,“
observes Sarah Hoffmann,
Head of Retail Investment JLL
Germany. However, ”the current
supply landscape is dominated
by classic products, which
will also account for the majority
of transactions in this segment
in the further course of the
year,“ adds Hoffmann.
Supermarkets in
second place
In addition to the two transactions
in the triple-digit million
range in the first quarter, the acquisition
of the Porta Group by
XXXL Lutz has now been added,
bringing the total to more
than €1.5 billion. Together, the
three major deals generate more
volume than the four transactions
worth more than €100 million
in the first half of last year.
The strong dominance of supermarkets,
which accounted for
43 percent of the total volume
in the first quarter as a result
of a portfolio transaction, has
been relativized in the second
quarter. At 64 percent, specialty
store products are still by far the
most important segment of the
market. However, retail parks
themselves are the biggest contributors
with 36 percent, followed
by supermarkets with 20
The Porta Group‘s furniture stores have been sold to XXXL Lutz.
percent and retail park centers
with eight percent. Shopping
centers account for 20 percent,
commercial buildings for 13
percent, and department stores
were hardly traded at all with a
share of three percent.
Increase in
transaction volume
However, Hoffmann advises
looking at the details in addition
to the shares: “One notable
transaction was the purchase of
Galeria in Freiburg im Breisgau,
which is one of the first deals
involving existing department
stores.” In general, she observes
increased purchasing activity in
the commercial building sector
in both A and B cities: „Some
transactions in this segment
have already been notarized and
are in the closing process. In addition,
further properties with
significant volumes are currently
being offered on the market.
This also applies to shopping
centers, where several transaction
processes are currently
underway. We expect a significant
increase in transaction
volume in these segments by
the end of the year,“ Hoffmann
said, looking ahead. In a comparison
of asset classes, the focus
shifted from core to core plus in
the second quarter, which now
accounts for 48 percent, while
core accounts for 26 percent.
Value add (15 percent) and opportunistic
properties with 11
percent complete the field. International
investors expanded
their portfolios by more than €1
billion, contributing 62 percent
as buyers but only 27 percent as
sellers.
Stable
prime yields
Photo: Porta Group
Prime yields in central prime
locations remain stable. Commercial
buildings in Munich
recorded the lowest prime yield
at 3.2 percent. Berlin and Hamburg
followed with 3.4 percent,
ahead of Frankfurt (3.5 percent)
and Düsseldorf (3.6 percent).
Stuttgart and Cologne completed
the field of seven metropolitan
areas with 3.7 percent each.
The other types of use also recorded
a sideways movement in
prime yields in the second quarter:
shopping centers and individual
specialty stores remain at
5.9 percent, while retail parks
remain at 4.6 percent.
Sarah Hoffmann expects the
market to remain on course for
growth: „We are seeing sustained
dynamic transaction activity
in all retail sub-segments.
The stability of the rental market
is contributing substantially
to the momentum in this market.
Investors are benefiting from a
range of opportunities, from
high-yield investments to prestigious
trophy assets. The supply
side is currently extremely
diversified and heterogeneous,
which is attracting a wide variety
of capital to the asset class.“

URBAN CREATORS.
Architecture | Development & Project Management
European Council of Shopping Places (ECSP) Awards: Commendation for Best Renovation/Expansion for centres between 15.000 – 45.000 sqm

Page 11 T O M
ANALYSES July 2025
Trends for the future of retail
New Bain study highlights strategic direction
Retailers worldwide are currently
facing numerous operational
challenges, such as geopolitical
tensions and tariffs.
But those who focus solely on
short-term issues risk losing
sight of their long-term strategic
direction. The study “The
Future of Retail: Six Disruptions
that could shape the
next Decade” by international
management consulting firm
Bain & Company outlines six
trends that could fundamentally
change the industry‘s
business models and market
mechanisms by 2035.
„Retail is on the cusp of tectonic
shifts that are already noticeable
today and will gain momentum
over the next five to ten years,”
says Bain partner and industry
expert Nikolaus Zacher. “Those
who do not actively address the
strategic implications of this development
now will fall behind
in the long run.”
Industry diversifies
Evidence of this shift can be
seen in the fact that more and
more retailers are diversifying
beyond traditional buying and
selling of goods and tapping
into new sources of revenue—
for example, in areas such as
retail media, third-party marketplaces,
financial services, and
logistics. According to Bain
analysis, these activities will
account for 15% of revenue and
25% of profits for a typical retailer
in the US and Europe by
2024 – a significant increase
from 10% in 2021. At the same
time, AI is enabling the industry
to redesign nearly every aspect
of its core business, from cost
structure and customer experience
to differentiation from
the competition. To prepare
retailers for the challenges and
opportunities that will accompany
this transformation, Bain
has identified six key trends that
could materialize in the coming
decade.
Robots and AI on
the rise
Quo vadis retail? Bain has identified six future trends.
Symbolic image: AdobeStock / Sergej Gerasimov
Algorithms and robots are driving
commerce: Core retail
functions such as pricing, promotion,
and assortment management
are becoming increasingly
automated—and thus
standardized capabilities that
traditionally provided a competitive
advantage. Companies
that do not support these processes
with technology risk losing
efficiency and margins.
Customers are using AI shopping
assistants: As consumers
increasingly delegate their purchasing
decisions to brand-independent
AI tools, traditional
loyalty models and digital marketing
strategies are coming
under pressure. Senior management
needs to start strategic
planning now to address the
likely impact of widespread
AI shopping assistants on their
businesses at an early stage.
Value creation is becoming
more personal and contextspecific:
Success in retail will
depend on meeting customer
needs at the right moment – not
just competing on price. Retailers
who are leaders in this area
have data that paints a complete
picture of customer behavior, as
well as the data strategy and capabilities
to leverage this potential.
Grocers are becoming consumer
goods providers: The growth of
private label brands—almost
half of grocery shoppers in the
US and Europe specifically seek
them out—could increasingly
blur the line between retailer
and supplier. When done right,
private label brands offer retailers
strong differentiation in the
form of exclusive, must-have
products.
Alternative forms
of use
Fewer stores, new usage concepts:
The role of brick-andmortar
stores must adapt to
changing consumer behavior.
Management should remain
open to alternative uses for retail
space, such as franchising or
leasing to third-party providers.
The search for economies of
scale is going global: Local
economies of scale are no longer
enough to meet customer
expectations and competitive
pressure. Cross-border mergers
and acquisitions and virtual alliances
will be crucial to finance
investments in technology and
remain competitive.
Preparing for the
future
„No one can predict the future
with certainty, but we are already
seeing how successful retailers
are diversifying their business
models beyond traditional
retail,” emphasizes Bain partner
and industry expert Philipp
Sautner. Scenario planning can
help executives think beyond
the short-term quarterly focus
and prepare for what lies ahead.
Those who act early and reinvest
in a targeted manner will
take a leading role in a new era
of retail.

The art of
investing
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As real estate experts, we invest in grocery stores
and retail parks throughout Germany.
The advantage?
Financially very strong tenants and crisis-proof basic
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investors.
20 years of experience in food retail
Excellent network
Working in partnership
Big plans? So do we.
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Phone: +49 (69) 756694334 • E-mail: j.burghardt@g-pep.com
GPEP GmbH · Hamburger Allee 26-28 · 60486 Frankfurt/Main GERMANY • www.g-pep.com

Page 13 T O M
CITIES AND TRADE July 2025
What might city centers of the future look like? This is the subject of a white paper published by BBE Handelsberatung.
Symbolic image: AdobeStock / Pornnapa
City centers as multifunctional,
vibrant spaces
Latest BBE white paper examines the future of city centers
BBE Handelsberatung GmbH
(Munich) has presented its
new white paper entitled “The
future of city centers: How
structural change is redefining
urban space.” It highlights
key issues for the future
of city centers and shows how
they can remain vibrant and
functional in the face of profound
structural change in the
retail sector and the growing
importance of online commerce.
„The crucial question is: How
can we not only preserve city
centers as shopping destinations,
but also develop them into
multifunctional, vibrant spaces
that meet the needs of society?”
explains Dr. Johannes Berentzen,
Managing Director of
BBE Handelsberatung GmbH.
„Our white paper addresses these
questions and provides ideas
on how cities and retailers can
respond to change.”
Finding innovative
solutions
The white paper focuses on
key questions. How do we deal
with the effects of the decline in
brick-and-mortar retail?
What new usage concepts are
needed to prevent vacancies
and promote city center development?
How can mixed-use
concepts make urban spaces
sustainable? What role does
cooperation between municipalities,
investors, and project developers
play in the redesign of
city centers?
„It‘s not just a matter of adapting
existing models, but of
finding innovative solutions
that combine different uses and
make city centers attractive in
the future,” says Dr. Berentzen.
Preserving livable
spaces
„We are currently working
with our sister company, the
IPH Group, to actively support
several cities such as Neuss,
Ingolstadt, and Nuremberg in
the transformation of their city
centers. Our focus is on developing
sustainable reuse concepts
for department stores that integrate
both retail and the needs
of urban society,“ adds Markus
Wotruba, member of the management
board and head of location
consulting at BBE Handelsberatung.
The white paper calls on all stakeholders
to actively shape the
transformation of city centers,
taking into account the needs
of retail, housing, and leisure
in equal measure. Only in this
way can cities remain resilient,
livable spaces of the future.
The white paper is now available
for free download on the
BBE Handelsberatung GmbH
website.

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Page 15 T O M
MAP OF THE MONTH July 2025
Retail turnover, Europe 2024
The Geomarketing Map of the Month by NIQ and
GfK for July shows the retail turnover growth rate in
31 European countries in 2024. In 2024, the growth
of retail turnover in the EU-27 slowed significantly
compared to the previous year. While 2023 saw a robust
increase of 5.5 percent, the growth rate in 2024
moderated to just 3.0 percent. The strongest gains
were recorded in Eastern European countries, with
Romania leading at 14.9 percent, followed by Bulgaria
(+9.9 percent), Croatia (+9.3 percent), and Slovakia
(+9.2 percent). In contrast, Estonia experienced a
decline of 1.3 percent in retail turnover, largely attributed
to political uncertainty and growing consumer
skepticism.

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