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Published
Nov 14, 2014
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Eurelia “Barometer” survey: sales rise in Spain; stagnate in Poland

Published
Nov 14, 2014

Sales in Spain are out of the red, having recorded a 2% increase in retail sales in the first eight months of 2014, according to the “Barometer” survey of Eurelia, the European Federation of International Retailers, in partnership with Procos.

In an economic environment that appears to be improving, with lower unemployment, record tourism and the end of the European stability programme, things now seem to be going better for retailers.

Retailer Etam is one of Eurelia’s partners.


However, Eurelia’s report also addresses a potentially lethal crisis for many businesses with the closure of retailers, hypermarkets and shopping centers...

Even while economic indicators are back in the green, the European Federation of International Retailers in partnership with Procos has announced further bankruptcies for 2015. 

In a context that remains tense, Spain has been forced to face past mistakes and manage its excessively dense retail environment in the years during which the economy "overheated”. 

In addition, reduced salaries have favored the rise of discount/low price stores at the expense of others ... 

For Eurelia, retailers in Spain who aim to return to growth must focus on rationalization in terms of concept development, as well as formats. 

Poland, which has appeared at the top of the rankings in recent years, would do well to listen to Eurelia’s advice... 

In fact, while sales have held up thanks to promotion, mall footfall declined in the country in 2014. 

According to Eurelia, competition is particularly fierce in “mass-market” ready-to-wear, where almost all European companies are present in addition to powerful local operators… 

Eurelia believes that Poland is the country with the greatest degree of over-saturation over the past fifteen years and fears that it will takes the same path as Spain before its recovery. 

The high volume of projects in large cities (Warsaw, Wroclaw, Krakow) as well as in less populated regions raises an issue of possible shopping mall bankruptcies in 2015. 

In addition, the rise in “prime” rents is also changing the business model. Top locations are becoming more image-enhancing sites rather than real sources of margin for retail networks. Caution is thus warranted. 

Eurelia’s “Barometer” survey includes turnover trends for ninety member store chains on a comparable basis.

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