LEH expansion into German prime locations
22.07.21 – Since the end of last year, we have been hearing time and again that food retailers are looking to expand into the prime locations of German city centers. Edeka made its debut with its store on Spitalerstraße in Hamburg. The discounters Aldi and Lidl are also following suit. The coincidence with the Corona pandemic is no coincidence.
Like a living ecosystem, the inner city organism is constantly evolving: increasing competitive pressure from the online sector, changing consumer habits and, most recently, the pandemic have driven the withdrawal of outdated and no longer profitable concepts from inner cities. Falling rents and vacant retail space in prime locations remain, successor concepts are coming.
The lower average receipt will be offset by increased customer frequency – that is our assumption and the calculation of the food pioneers. In addition to tourists and shoppers, commuters and employees from the surrounding office locations will also use the offer to meet their daily needs and thus bring more frequency into the locations.
With customer frequency on the rise again, city centers are becoming increasingly attractive for other concepts for daily needs – such as flower stores or libraries. The striking thing about this is that many years ago, food retailers were driven out of downtown locations by rising rents. Today, this development seems to be repeating itself – only in reverse.
So, just as it used to be, the inner city is once again becoming the lively center of many major German cities. Whether everything works in practice as described in theory is another question. However, we very much welcome this development and wish LEH in prime locations every success and good business!
20354 Hamburg, Germany
Contact person: Mr. Kai Kurzhals
+49 040 36881380