Electricity supplier impact on traditional retailers in Europe rent led to decline

Beijing time on February 19th morning news, Europe’s largest real estate fund AXA real estate (Axa Real Estate) released a report Monday that in the next few years, the European shops landlord will be forced to accept the low rent, to help retailers to solve the electronic commerce rapid rise in consumer spending and the impact of the downturn.

AXA real estate

said in a report, in France and Britain and other European countries, online shopping has a huge threat to physical retail stores, which will make some retailers can not afford the rent, the landlord will be forced to cut rents.

reports that real estate investors underestimate the impact of Internet shopping and economic downturn on traditional retailers. The report shows that from 2012 to 2016, the UK, France and Germany, 90% of retail sales growth will come from online spending, about $122 billion 200 million.

AXA real estate, which will lead to retailers cut the cost of real estate to ensure profitability, resulting in the rent was forced to decline. For example, Spain’s rental costs will fall by up to 18% during the period, and France will fall by as much as $17%.

AXA real estate said: "retailers will be forced to reduce rental costs, for some profitable businesses, the rent may also bear. But for other businesses, if the current rent is not paid to achieve profitability."