Fashion and Restaurants Lead Retail Openings

24 July 2017

According to the most recent data released by Worx, a real estate consultant, the fashion and restaurant sectors are the most dynamic in terms of new retail store openings in Portugal in the first half of 2017.

In total, there were 153 new openings during the first six months of the year, and according the real estate consultant, street-centred shopping “is experiencing very high levels of demand, especially the restaurant sector.”

The preferred locations for new stores have been Avenida da Liberdade, Chiado, Cais do Sodré, Campo de Ourique and Príncipe Real. However, Worx points out that Avenidas Novas is beginning to attract more attention from retailers and explains that the regeneration of central areas of Lisbon, including the restoration of Avenida da República, Praça do Saldanha, Praça de Picoas and Avenida Fontes Pereira de Melo “has led to greater levels of pedestrian traffic, a higher quality of life in the area, bringing more people out into the streets because of wider, and more pleasant, pedestrian routes in the area.”

Regarding street commerce, Worx points out that the supermarket chain, MyAuchan, opened two stores in Lisbon “seeking proximity to the consumer.” In turn, the JNCQuoi restaurant, in the Tivoli Theater Building, and the Liberdade Brewery are newcomers to the Avenida da Liberdade.

At the same time, Padaria Portuguesa is continuing its expansion strategy by opening four new stores in the city of Lisbon. Shopping centres have been making waves as well, including the opening of the Ikea Loulé store, the inauguration of the French retailer Kiabi’s stores in Mar Shopping and Forum Sintra, and the opening of the H&M store in Fórum Coimbra.

For the second half of the year, Mar Shopping, Designer Outlet Algarve and Évora Shopping, are all expected to open, having a total gross leasable area of “over 90 thousand square meters.”

Worx also stresses that the market was “very active” during the first half of the year in terms of investment. A total of five retail parks were bought and sold: the Albufeira Retail Park, Coimbra Forum, Viseu Forum, Portimão Retail Center and Vila do Conde Style Outlet, with negotiated value of 390 million euros.

According to the real estate consultant, tourism will continue to “be the largest driver of retail sales”, principally street commerce located in the historical centre of ​​Lisbon, “where the trendiest restaurants are located”, placing the capital on the map “not only as a cool city to visit, but also for bringing together many highly attractive factors: excellent weather, friendly people, exceptional dining experiences and very affordable prices.”

Worx’s Research & Consulting department believes that “one of the most interesting trends is the continued inauguration of new restaurants within hotels”. “The concept of going to lunch or dinner at a hotel, without necessarily staying at the hotel, is starting to become a very interesting option for some consumers,” said the press release.

Worx points out that the restaurant sector “will continue to dominate new retail openings with brands that are trying to bring something new to the market.” “Whether through Portuguese or international retailers, street commerce is a large facet of the challenge Lisbon faces in finding its place as one of the best cities to live or visit in Europe,” the company’s statement added.

According to this source, the market has registered an increase in rental costs.  Buzzing street commerce in Lisbon has led to rental costs of 120 euros per square meter, while the stores in the city of Porto remain at 50 euros per square meter.

Original Story: Construir

Translation: Richard Turner