What: In the first half of 2024, fashion stores accounted for nearly 40% of newly leased retail space in Europe, making it the most active sector in the retail market.

Why it is important: This trend underscores the resilience and importance of the fashion industry in the European retail landscape, despite a decrease in the total area of new spaces rented compared to the previous year.

Retail rental activity in Europe remained stable during the first half of 2024 compared to 2023, as reported by Cushman & Wakefield's "Retail Radar." The study, based on 900 transactions, revealed that nearly a third of these involved fashion stores, which represented almost 40% of newly leased retail space. This made fashion the most active sector, surpassing restaurants and beauty-health sectors. Notable fashion brands driving this activity include JD Sports from the UK, Calzedonia from Italy, and Inditex from Spain. Despite being the leading sector, the total area of new spaces rented by fashion brands decreased by 13% from the previous year.

The report also highlighted the growth of luggage brands such as Tumi, Delsey, and Carl Friedrik, fuelled by a rebound in global tourism. The mass market segment dominated transactions, accounting for 70% of deals and rented areas. In contrast, the premium and luxury sectors saw significant declines in rented space and transaction numbers.

Most transactions involved smaller retail units under 200 square meters. Rental costs either remained stable or increased but were still below pre-pandemic levels on average. In France, rental activity was invigorated by the "Olympic Games effect," expected to benefit various sectors from 2025 onwards, particularly sports, travel goods, and leather goods.

Fashion leads retail space leasing in Europe