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„Dare more optimism!" – 6 key trends for 2021

2020: year in review: In contrast to the rest of the broadly embattled German economy, the country’s food retail sector saw its strongest year ever, with sales and earnings up by around 10% in Corona-year 2020.

Alone from the shift in consumer spending away from the depressed gastronomy sector, food retailers gained what will likely end up in the billions in sales. On the strength of non-food promotional products, they also joined online retailers (which grew by 22.7%) in benefitting from the lockdown of smaller specialty stores and department stores.

Despite lower visitor frequency, many food retailers benefited from higher shopping totals (+6 - 12%) and more brand purchases.

And we must take a moment to praise the retail workers in the food sector, who have given their utmost during this crisis. For the first time, citizens are beginning to recognise the essential role played by these “everyday heroes” – though they hardly receive just compensation for their efforts.

2021: the year ahead: Though the uncertain course of the Corona crisis makes precise forecasts difficult, we have been in dialogue with key stakeholders and are prepared to" dare more optimism!" Here are some of the topics that will command the attention of retailers, manufatures and service providers (and thus the real astate industry) this year.

1. Food Online online becoming a competitior

E-food has long been a niche business in Germany (1% of the total food market). Buoyed by the lockdowns, the shift to home offices and consumers' reluctance to shop at brick-and-mortar locations during the pandemic, grocery deliveries are seeing significant double-digit gains. In the first three quarters of 2020 alone, e-food retail took in revenue of €1.77 billion (excluding drugstore products and pet food), compared to total revenue of €1.6 billion in all of 2019, not only for Amazon or Rewe Online. However, this still represents only about 1.5% of total sales.

... click here and read everything about the trends for 2021

2. MultiChannel expansion by brick-and-mortar retailers
3. City locations won't guarantee success
4. Sustainability remains a consumer trend
5. The big winners so far: supermarkets/hypermarkets
6. Innovations in retail trough digitalisation

Our decades of experience represent just on of the reasen why you should work

Carl und Gunda Schubert, founders and owners of Handelsimmobilien Schubert

Our current real estate portfolio

Retail real Estate deals show justified optimism

The retail food trade is still growing. The number of potential new retail properties however is limited as planning permissions for new shops are very restrictive because retail coverage is good in Germany. Consequently the solution is  quality.  All of the relevant retailers invest a lot in upgrading their shops or they let the landlords do or pay for it.  So demand and prices rise and will rise in future as well.  Don´t wait, start investing now. > read all about the trends for 2021 here!

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