Wednesday, November 03, 2021
DIHK study quantifies shrinkage
Citys is threatened with permanent vacancy of 15 percent
It is an illusion that people are streaming back to the cities in large droves after the Corona crisis. A DIHK study quantifies the loss of attractiveness of inner cities. The respondents expect a permanent 15 percent vacancy. The smaller the city, the worse the loss.
The equation that inner city means shopping no longer works: municipalities and business associations are rather expecting a significant increase in vacancies in German inner cities. As the German Chamber of Commerce and Industry (DIHK) announced, the rate of vacant shops before the Corona crisis was around ten percent – those affected expect an increase to 14 to 15 percent after the pandemic. For the DIHK study “Future-proof inner cities”, 750 representatives from German municipalities with over 5,000 inhabitants and business associations across Germany were surveyed.
“Practically all locations”, regardless of size and location, fear the permanent decline of commercial operations. The study also found that the municipalities expect fewer visitors to the city centers during the day, so the frequency is likely to drop by almost ten percent.
In the catering sector, the respondents also expect a decline in the number of businesses – by six to seven percent compared to the level before the crisis. According to the study, however, the assessments of the locations differ: around 65 percent of those surveyed assume a permanent reduction in the number of establishments, 35 percent expect a constant or increasing number. Big cities in particular are more optimistic – 78 percent of them expect an increase. In the small towns it is only 25 percent.
Housing instead of shops
The study also revealed further trends: the smaller the municipality, the greater the loss of importance for retail. In addition, new functions of inner cities come into focus – from living space and common work opportunities (co-working spaces) to green spaces.
In order to make inner cities “future-proof”, the study lists a number of immediate measures for retailers: easy access to cities, including reimbursement of public transport tickets when shopping, relieving Sunday open from business events or better property management. For gastronomy, for example, it is crucial that open spaces can be used more flexibly. The overall attractiveness of inner cities could be increased if the regional manufacturing industry were strengthened and unique selling points were better emphasized, according to the study supported by the DIHK.