Secure your shopping centre’s commercial position - 4 key insights

Provada 2024 has come to an end. For those wondering, Provada is the largest real estate fair in the Netherlands, and what an event it was! Thanks to all the great learnings, conversations, and interesting discussions. Since we believe in sharing is caring – making our industry as a whole smarter – we’ve compiled our top five key insights. Anyone wanting to learn more about how shopping centres can secure a strong commercial position and ensure profitability now and in the future through a smart approach to data will be interested to read them.

Jun 26, 2024

#1 Experience-driven retail remains essential

The retail market has been incredibly dynamic over the past decade, influenced significantly by technological advancements. However, the love for experiences persists. Investors now better understand how these changes impact shopping, living, and socialising. This has led to bold decisions on redevelopments and restructurings based on geographical positioning and catchment areas.

At PFM, we categorise Dutch shopping centres into three segments:

  • RUN: daily groceries

  • FRUN: fun + daily groceries

  • FUN: a full day of shopping with high-end brands and a broad offering

When spotlighting over 250 Dutch shopping centres, our footfall data from the first quarter of this year reveals a few key observations: 

RUN centres: are performing well. Especially in middle and large cities with new housing developments, these centres show stable year-on-year growth. Footfall numbers remained steady during the pandemic and are now increasing, with a 4% rise in May.

FRUN centres: show a different trend. Footfall in these centres has increased by 4% in the first five months of this year, indicating a recovery post-COVID. In mid-sized towns and villages face an oversupply of retail space, necessitating significant redevelopment. Demolition and conversion into residential areas are key topics. While some locations retain potential, enhancing their look, feel, and offerings is crucial. 

FUN centres: Are experiencing a rise in footfall despite a decline in the total number of venues. Centres offering comprehensive shopping experiences are thriving. Balancing high-end retailers with hospitality and experiences is challenging, but investments and the outlook remain positive, particularly in prime inner-city locations.

Chart: footfall deviation across different types of shopping centres in 2024

Overall, the retail market continues to adapt with clear strategies emerging. Landlords and managing agencies are making informed decisions to meet evolving consumer expectations. The general outlook remains positive, with stakeholders adopting new ways to enhance offerings, optimise businesses, and develop sustainably.

#2 Clear KPIs are key to making data-driven decisions

In a digital-centric world, making data-driven decisions is increasingly crucial. However, identifying the right KPIs and acting on them isn't always straightforward. The multitude of reporting platforms, data sources, and tools can lead to paralysis when it comes to decision-making.

Understanding both online and offline behaviours of visitors and pedestrians is challenging without company-wide key metrics. It’s essential to match multiple data streams to define clear and understandable KPIs for a broader understanding of location performance. Key insights include detailed information on catchment areas, shopping patterns, and demographics. Despite the exponential growth of data opportunities, clear and straightforward reports remain vital. Did you know that we have enriched our reports with geolocation data? If you’re interested, discover more on this topic here. 

#3 Sustainable innovations are gaining momentum

Smart innovations and connected buildings are key. Understanding people movement and space utilisation is essential for measuring CO2 footprints. ESG reporting is improving year by year. This shift towards data-driven environmental management underscores the importance of optimising human interactions with physical spaces, making substantial reductions in carbon emissions attainable.

#4 Partnerships amongst stakeholders are key

In any commercial venue, the three pillars are the owner, the manager, and the visitors. Both owners and managers should know visitor numbers and understand long-term trends. All three share a common interest: providing and enjoying the best shopping experience.

At Provada, it became clear that insights into pedestrian and people flow need to be widely shared. Understanding the reasoning behind numbers is essential for better decisions. By fostering communication and collaboration among owners, managers, and visitors, the overall shopping experience can be enhanced, driving long-term success.

Real interactions create real value

Interactions between people are crucial. This year's Provada was the most connected edition yet, despite challenges like COVID-19 and global instability. Face-to-face interactions are vital for discussing shared interests in retail and attracting visitors. By providing real-time insights and visualisations of location performance, we create a significant impact and align stakeholders across various retail industries.

#1 Experience-driven retail remains essential

The retail market has been incredibly dynamic over the past decade, influenced significantly by technological advancements. However, the love for experiences persists. Investors now better understand how these changes impact shopping, living, and socialising. This has led to bold decisions on redevelopments and restructurings based on geographical positioning and catchment areas.

At PFM, we categorise Dutch shopping centres into three segments:

  • RUN: daily groceries

  • FRUN: fun + daily groceries

  • FUN: a full day of shopping with high-end brands and a broad offering

When spotlighting over 250 Dutch shopping centres, our footfall data from the first quarter of this year reveals a few key observations: 

RUN centres: are performing well. Especially in middle and large cities with new housing developments, these centres show stable year-on-year growth. Footfall numbers remained steady during the pandemic and are now increasing, with a 4% rise in May.

FRUN centres: show a different trend. Footfall in these centres has increased by 4% in the first five months of this year, indicating a recovery post-COVID. In mid-sized towns and villages face an oversupply of retail space, necessitating significant redevelopment. Demolition and conversion into residential areas are key topics. While some locations retain potential, enhancing their look, feel, and offerings is crucial. 

FUN centres: Are experiencing a rise in footfall despite a decline in the total number of venues. Centres offering comprehensive shopping experiences are thriving. Balancing high-end retailers with hospitality and experiences is challenging, but investments and the outlook remain positive, particularly in prime inner-city locations.

Chart: footfall deviation across different types of shopping centres in 2024

Overall, the retail market continues to adapt with clear strategies emerging. Landlords and managing agencies are making informed decisions to meet evolving consumer expectations. The general outlook remains positive, with stakeholders adopting new ways to enhance offerings, optimise businesses, and develop sustainably.

#2 Clear KPIs are key to making data-driven decisions

In a digital-centric world, making data-driven decisions is increasingly crucial. However, identifying the right KPIs and acting on them isn't always straightforward. The multitude of reporting platforms, data sources, and tools can lead to paralysis when it comes to decision-making.

Understanding both online and offline behaviours of visitors and pedestrians is challenging without company-wide key metrics. It’s essential to match multiple data streams to define clear and understandable KPIs for a broader understanding of location performance. Key insights include detailed information on catchment areas, shopping patterns, and demographics. Despite the exponential growth of data opportunities, clear and straightforward reports remain vital. Did you know that we have enriched our reports with geolocation data? If you’re interested, discover more on this topic here. 

#3 Sustainable innovations are gaining momentum

Smart innovations and connected buildings are key. Understanding people movement and space utilisation is essential for measuring CO2 footprints. ESG reporting is improving year by year. This shift towards data-driven environmental management underscores the importance of optimising human interactions with physical spaces, making substantial reductions in carbon emissions attainable.

#4 Partnerships amongst stakeholders are key

In any commercial venue, the three pillars are the owner, the manager, and the visitors. Both owners and managers should know visitor numbers and understand long-term trends. All three share a common interest: providing and enjoying the best shopping experience.

At Provada, it became clear that insights into pedestrian and people flow need to be widely shared. Understanding the reasoning behind numbers is essential for better decisions. By fostering communication and collaboration among owners, managers, and visitors, the overall shopping experience can be enhanced, driving long-term success.

Real interactions create real value

Interactions between people are crucial. This year's Provada was the most connected edition yet, despite challenges like COVID-19 and global instability. Face-to-face interactions are vital for discussing shared interests in retail and attracting visitors. By providing real-time insights and visualisations of location performance, we create a significant impact and align stakeholders across various retail industries.

#1 Experience-driven retail remains essential

The retail market has been incredibly dynamic over the past decade, influenced significantly by technological advancements. However, the love for experiences persists. Investors now better understand how these changes impact shopping, living, and socialising. This has led to bold decisions on redevelopments and restructurings based on geographical positioning and catchment areas.

At PFM, we categorise Dutch shopping centres into three segments:

  • RUN: daily groceries

  • FRUN: fun + daily groceries

  • FUN: a full day of shopping with high-end brands and a broad offering

When spotlighting over 250 Dutch shopping centres, our footfall data from the first quarter of this year reveals a few key observations: 

RUN centres: are performing well. Especially in middle and large cities with new housing developments, these centres show stable year-on-year growth. Footfall numbers remained steady during the pandemic and are now increasing, with a 4% rise in May.

FRUN centres: show a different trend. Footfall in these centres has increased by 4% in the first five months of this year, indicating a recovery post-COVID. In mid-sized towns and villages face an oversupply of retail space, necessitating significant redevelopment. Demolition and conversion into residential areas are key topics. While some locations retain potential, enhancing their look, feel, and offerings is crucial. 

FUN centres: Are experiencing a rise in footfall despite a decline in the total number of venues. Centres offering comprehensive shopping experiences are thriving. Balancing high-end retailers with hospitality and experiences is challenging, but investments and the outlook remain positive, particularly in prime inner-city locations.

Chart: footfall deviation across different types of shopping centres in 2024

Overall, the retail market continues to adapt with clear strategies emerging. Landlords and managing agencies are making informed decisions to meet evolving consumer expectations. The general outlook remains positive, with stakeholders adopting new ways to enhance offerings, optimise businesses, and develop sustainably.

#2 Clear KPIs are key to making data-driven decisions

In a digital-centric world, making data-driven decisions is increasingly crucial. However, identifying the right KPIs and acting on them isn't always straightforward. The multitude of reporting platforms, data sources, and tools can lead to paralysis when it comes to decision-making.

Understanding both online and offline behaviours of visitors and pedestrians is challenging without company-wide key metrics. It’s essential to match multiple data streams to define clear and understandable KPIs for a broader understanding of location performance. Key insights include detailed information on catchment areas, shopping patterns, and demographics. Despite the exponential growth of data opportunities, clear and straightforward reports remain vital. Did you know that we have enriched our reports with geolocation data? If you’re interested, discover more on this topic here. 

#3 Sustainable innovations are gaining momentum

Smart innovations and connected buildings are key. Understanding people movement and space utilisation is essential for measuring CO2 footprints. ESG reporting is improving year by year. This shift towards data-driven environmental management underscores the importance of optimising human interactions with physical spaces, making substantial reductions in carbon emissions attainable.

#4 Partnerships amongst stakeholders are key

In any commercial venue, the three pillars are the owner, the manager, and the visitors. Both owners and managers should know visitor numbers and understand long-term trends. All three share a common interest: providing and enjoying the best shopping experience.

At Provada, it became clear that insights into pedestrian and people flow need to be widely shared. Understanding the reasoning behind numbers is essential for better decisions. By fostering communication and collaboration among owners, managers, and visitors, the overall shopping experience can be enhanced, driving long-term success.

Real interactions create real value

Interactions between people are crucial. This year's Provada was the most connected edition yet, despite challenges like COVID-19 and global instability. Face-to-face interactions are vital for discussing shared interests in retail and attracting visitors. By providing real-time insights and visualisations of location performance, we create a significant impact and align stakeholders across various retail industries.

Contact

Discover more

Would you like to experience more opportunities? Explore hands-on product demos and personalised software training with our mobile demo truck.

Contact

Discover more

Would you like to experience more opportunities? Explore hands-on product demos and personalised software training with our mobile demo truck.

Contact

Discover more

Would you like to experience more opportunities? Explore hands-on product demos and personalised software training with our mobile demo truck.