02-03-2016 - After more than 125 years the Dutch retail sector has lost the largest commercial department chain stores in the Netherlands. The bankruptcy of Vroom and Dreesmann has a significant financial impact as well as significant spatial and social implications. For instance the retail vacancy rate in the Netherlands increased with 350,000 sqm all at once. The disappearance of V&D is also a sensitive loss for the physical retail market, although it strengthens polarization in terms of winners and losers. Apart from the new vacancies, the emotional void that V&D leaves behind plays a significant role in the smaller shopping towns.
The retail market is mainly concerned about the impact of the loss of V&D, which includes the negative impact on the attractiveness of the shopping areas where V&D was located. As an effect this will lead to different relationships between shopping areas and within the centers themselves. This is a reason for Colliers to dive deeper into the consequences for the market as a whole, and the prospects of individual buildings.
The retail market is highly characterized by its dynamism and entrepreneurship, and where innovation and adaptation are the answers for every entrepreneur who wants to remain distinctive. V&D made several attempts to renew itself, but did not manage to regain the leadership it once had.
The loss of V&D is unfortunate, but also offers new opportunities. It is in the hands of the property owners to reposition and prepare the properties for a new future. The potential of the individual properties varies greatly due to a high degree of diversity, and as a result there is a great variety in solutions for the buildings.
In pursuit to find an attractive interpretation to the buildings it is important to remember some key scenarios. Colliers International Research presents these scenarios that describe to best ways to fight vacancy of the V&D buildings. Furthermore the preferred scenario(s) for each property will be highlighted.
The Colliers research report on the V&D bankruptcy and its consequences for the Dutch retail landscape can be downloaded here