No prospects? - New study on East German retail appeared

The many places mashed out of the ground after the turn shopping centers on greenfield complicate retailers in many eastern German medium and large cities even now the existence. "To date, created in the first years after reunification retail structures to act," says Dr. Gerd Hessert, the lecturer of Retail Management at the University of Leipzig. Together with Prof. Dr. Arnd Jenne from the degree program trading and logistics of Ostfalia University of Applied Sciences in Suderburg he has the situation of retailers in 29 East German cities with more than 50.000 population studied empirically.

The results of the analysis, the two authors now published in the book "Future Perspectives of the inner-city retailing in eastern medium and large cities". The data are based on written surveys of each charge of urban planning, economic development and city marketing, the Chambers of Commerce and on its own surveys to stores in so-called 1a locations locally. Also already present retail reports were included in the analysis. "We describe every single city with tables and data as total sales, purchasing power, sales areas, of offerings, 1a locations, shopping center space and vacant retail space," said Hessert.

All the cities examined between Rostock and Chemnitz - with the exception of the special case Berlin - were divided into four clusters. Cluster one includes cities with significant population declines and unattractive inner cities such as Bitterfeld-Wolfen, which don't stand a chance against the mostly dominant shopping centers on greenfield sites. In the second cluster, Hessert and Jenne have grouped cities such as Brandenburg and Cottbus, whose core areas are moderately attractive to customers, but which have prime locations with potential for development. Chemnitz and Erfurt are examples of the third cluster with cities that, according to Hessert, have considerable potential to assert themselves against the shopping centers a little further afield, which mostly concentrate the purchasing power of the region. "These cities have potential. The retailers in the inner cities should be strengthened and further developed," emphasizes the expert.

The fourth cluster describes the situation in the two large cities of Leipzig and Dresden, which have a special status due to their very strong and attractive inner cities. "In these two cities, it makes perfect sense to further expand the retail space," says Dr. hessert In contrast, more caution is required in categories one and two. "These cities will continue to suffer greatly in the future from the retail decisions made shortly after reunification. The city centers are insignificant. The shopping centers have the central function," explains Hessert. If the market leaders in retail withdraw from the inner cities, then the cities will no longer be attractive.

"The often-cited renaissance of the city centers is - from the specific point of view of the retail trade - more a wish than reality in many cities," says Jenne. The study shows that only a few East German inner cities have scope for quantitative development, so expanding retail space is not worthwhile in most cases.

As a conclusion of their study, the two experts give recommendations for action, especially for retailers. They are called upon to accept upcoming challenges - even if this entails the abandonment or relocation of the existing business location or a serious change in the business model. "Holding on to the 'old' or waiting for help from the public sector is not a viable option," says Prof. Jenne. However, the study makes it clear that many inner cities can remain attractive retail locations in the future if the focus is on strengthening 1a - layers is directed.

Volume "Future perspectives of inner-city retail in East German medium-sized and large cities" by Dr. Gerd Hessert and Dr. Arnd Jenne, published by Books on Demand Verlag Norderstedt; ISBN 978-3-7322-9284-4, edited by Prof. Johannes Ringel and Dr. Gerd Hessert.

Source: Leipzig [Uni]

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