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6 July 2016

New store openings and rebranding shows promise for the Greek retail

Throughout 2016 and in 2017 so far many international retailers reaffirmed their position in prime locations in Greece as outlined in the NAI Greek retail report. Big players closed down and relocated to rationalize their position. Key locations saw new entries. Openings are a positive sign that international companies are reinforcing their support in the Greek economy.  Glyfada and Ermou are the streets with the highest yield. The evidence shows that

  • Prime rents remain unchanged or even increased due to the lack of supply. Secondary rents have been stable between 2015 and 2016.
  • 2016 Vacancy rates in the retail markets have either decreased or remained unchanged. Vacancy rates in the sub markets increased due to the clusters that form in certain spots in the city.

The supermarket industry financial results show that Veropoulos supermarket chain acquisition by Metro SA.

  • Sklavenitis top supermarket in the center of Athens acquired Marinopoulos the largest supermarket chain in Greece, 400 stores are under a new brand name as of 1st of March 2017, this resulted in a gain in market share and gained access to markets it previously had no exposure to. Renovation is taking place in some stores and it will open 10 additional stores.
  • The chains Masoutis and market In also grew with additional stores. AB Vassilopoulos is planning an expansion.

2016 was a very difficult year for the supermarket industry yet in the 44 biggest chains there was only a marginal fall.

  • Kotsovolos is implementing its investment strategy by opening new stores and renovating others.
  • Leroy Merlin added a new store and launched two more new stores types’ city and xpress.
  • Media Markt also expanded with Plaisio and public group adding new stores

Major investment took place in the commercial real estate market of Greece.

  • Lamda Domiamd Pylea SA sold 31.7% of its shares to varde partner and Lamda malls.

here is still competition from the high street stores although the shopping centres have been performing better overall.

Retail points

  • Occupancy rates are up in comparison to 2015. The demand for space in  shopping centers is high.
  • Developers seek to increase the supply with new schemes and extensions of existing malls.
  • Redevelopment of 14 airports by Fraport will create additional retail space. 200.000 sq.m. is expected to be completed by 2020 with investments expected to reach 1billion euro.

Shopping centres are now a one stop shop for all of your needs and with mixed use development there is an increase in overall turnover. The Greek retail market is growing with regard to shopping centers. Supermarkets are expanding throughout Greece. The future of the retail market looks strong