Daniel Müller-Jentsch
The big trends in retail in transition
Global retail trends are having a concrete impact on the city of Zurich. We discussed what these are and how exactly this affects the retail landscape in Zurich with experts from the fields of business, society, retail and real estate. Watch the video with statements by Markus Neukomm, Head of Planning and Expansion Migros Genossenschaftsbund Zürich, Fredy Hasenmaile, Head of Economic Research Credit Suisse, and other interesting stakeholders.
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Global retail trends are having a concrete impact on the city of Zurich. We discussed what these are and how exactly this affects the retail landscape in Zurich with experts from the fields of business, society, retail and real estate.
In a personal interview, we asked Daniel Müller-Jentsch, Senior Fellow and Samuel Rutz, Adjunct Fellow of Avenir Suisse, for their assessment of the most important trends for retail in transition. Read the answers here:
In your opinion, how will the business landscape in the city of Zurich change in the future?
Daniel Müller-Jentsch: Today's structures in the retail trade are facing a major upheaval. This upheaval has far-reaching consequences, especially in the urban environment. The sooner cities recognize this change and cushion certain developments, the better prepared they are for the fundamental shift in the basic urban fabric. A large part of the purchasing power will migrate to online trading. Online retail is penetrating more and more market segments (e.B. food). The retail trade will be significantly weakened as a result. The required amount of retail space will shrink significantly. It will only survive where it generates a clear added value, an experience. Retail structures are breaking down, and the mix of offers is shifting to low-value offerings. The displacement of small suppliers by chains is already well advanced.
Samuel Rutz: In my opinion, however, this trend will occur belatedly in Zurich, as Zurich has a very heterogeneous shopping structure.
Daniel Müller-Jentsch: I would agree. Zurich is a premium location with a very high purchasing power and high-quality demand. That is why this trend will occur in a softened form. This makes it all the more important to deal with the topic and to break down and analyze the global trends in Zurich.
In your opinion, what are the most important trends and drivers for retail in transition for Zurich?
Samuel Rutz
Daniel Müller-Jentsch: First and foremost, we see digitization as the strongest trend at work.
Samuel Rutz: New forms of work probably also have an influence on people's shopping behaviour. Demographic change also determines the composition of customers. I would also count mobility among the most important trends. Where do people live and where do they have to go to shop?
Daniel Müller-Jentsch: It is certainly special in Zurich that the population is getting younger. Globally, we are observing an ageing society. This always determines supply and demand in the retail trade. Migration is making society in Zurich more diverse.
Samuel Rutz: The influence on spatial development cannot be ignored. If you think beyond the city limits, it is quite possible that the city center will become a "special market" and the majority of people prefer to go shopping in the large malls around the city. Globalization is also important for a city like Zurich. Here's the big question: What kind of world will we live in in the future?
Daniel Müller-Jentsch: To conclude: There is still a lot of music in the important trends for retail in transition.