What lies behind the popularity of retail parks in Europe?

Retail parks, or strip malls as they are often called, make up the majority of the real estate portfolio of the ZDR's Master Fund. What defines retail parks, and why are they considered the future of shopping? Let's explore these questions in the sections below. 

Retail parks? Shopping parks? Strip malls? They have different names in different countries, but the main characteristics remain the same. A retail park is a shopping complex consisting of several separate retail units, often sharing a large parking lot that provides convenient access to all the stores. Unlike traditional multi-storey shopping malls, retail parks are often ground-floor-based, offering wide parking areas and a quick shopping experience without having to navigate through the entire structure like in traditional malls. 

Convenient Shopping and Benefits for Tenants 

Customers appreciate retail parks primarily for the efficient shopping experience. Parking is conveniently close to the store entrances and is often free, eliminating the need to search for a free space in underground garages. Retail parks also tend to be well connected to public transport, ensuring easy accessibility for a wide range of shoppers. 

The design and layout of retail parks are the result of thoughtful planning, aimed at maximizing customer experience and convenience. The tenant mix is also chosen strategically so that customers can find everything they need - from groceries and drugstores to clothing and electrical goods, to pet supplies. This focus on daily necessities and discount stores ensures that retail parks remain popular regardless of the economic climate. This was confirmed not only during the COVID pandemic but also through recent economic fluctuations, during which retail parks continued to enjoy popularity. Due to a high share of groceries and discount chains, retail parks are more resilient to economic crises. This trend was evident during the COVID-19 pandemic as well as throughout subsequent economic tumbles. While general retail sales were declining, discount goods were gaining popularity, reflecting consumers' interest in more affordable products. Groceries, as an essential expense, maintain stable sales regardless of the economic cycle phase. This trend is also confirmed by data on the construction of new retail parks. In 2023 alone, the Czech Republic saw an expansion of retail park spaces by 62,000 m², representing a year-on-year increase of 41%. 

Retail parks also present advantages for retailers, including enhanced store visibility, prime locations in desirable catchment areas, and typically lower rents than traditional malls, attributed to the reduced overhead costs of maintaining communal areas. 

Why Are Retail Parks the Future of the Shopping Experience? 

In today's fast-paced world, consumers prioritize efficiency and convenience, attributes that retail parks excel in offering. Sustainability is also a key element of retail parks, where the extensive rooftops offer ideal locations for photovoltaic panel installation. With an increasing presence in the EU and enduring shopper interest, it's evident that retail parks represent a sustainable, convenient shopping future.