How has retail evolved between 2019 and 2022 in Luxembourg? The first so-called Retail Report published on Thursday 2 March, gives a full answer to this question, zooming in on various branches of activity.
In terms of the number of entities, fast-food outlets are seeing the strongest growth (+26.4%), ahead of DIY stores (+22.3%) and food stores (+11.8%). On the other hand, the number of fashion shops fell by 8.6%, perfume shops by 6% and butchers by 5.1%.
“In the case of perfumeries, for example, this development can be interpreted more as a consolidation of the sector, since the number of entities has fallen, but the sales area has increased,” said Tom Baumert, president of the National Observatory for SMEs (GIE Observatoire national des PME) and director of the Luxembourg Trade Federation (Confédération luxembourgeoise du commerce, CLC).
Second hand, pop-up and e-commerce on the rise
The Retail Report also shows a growth in alternative sales formats in Luxembourg: second-hand fashion shops (+42.9%), traditional shops with an online shop (+40%) and pop-up stores (+33.3%). However, these formats remain marginal in the overall commercial landscape.
The latter remains marked by the dichotomy between town centres and shopping centres, which is all the more exacerbated after the opening in 2019 of the Cloche d’Or, Royal-Hamilius and Infinity mega-complexes. In three years, the number of shops has contracted by 2.7% in city centres, while it has increased by 3.2% in shopping centres. In terms of surface area, the contrast is more marked with a 10% growth in covered structures, three times more than in shopping streets (+2.9%).
Localyze.lu for retailers and restaurateurs
These data are included in the wealth of information in the trade register initiated within the framework of Pakt Pro Commerce. It is now accessible free of charge to traders and restaurant owners who are planning to open or develop their activity, on simple request via the Localyze.lu portal.
In addition to data on the distribution of shops in one or more sectors of activity in a given area, it is possible to observe, on an interactive map, demographic information so as to determine the potential purchasing power in the catchment area concerned, but also data relating to mobility (public transport, parking), for example. Municipalities can also access the tool--for a fee of €1,500--in order to see how to adapt their policy and their commercial fabric.
And this database will be updated every year. “In the future, we also want to expand the analysis of the commercial register, for example by including information on business parks,” said Lex Delles (DP), minister for SMEs.
However, the information will remain limited to the borders of the grand duchy. Traders and restaurant owners will therefore have to keep in mind the presence of commercial and leisure complexes located on the direct outskirts of the country, which have experienced dynamic growth in recent years.
This story was first published in French on Paperjam. It has been translated and edited for Delano.