Netherlands

Amsterdam, NetherlandsThe Netherlands is a relatively small country in Western Europe, with 16.9 million inhabitants. Its retail market however is one of the most mature retail markets in Europe. The capital, Amsterdam, is the most important city, followed by the cities Rotterdam, The Hague and Utrecht. Despite the current economic slump in Europe, these cities are still performing well, driven by the demand from international retailers. Besides the major four cities the country also have a number of cities with a historic city centre that are generally seen as attractive, such as Eindhoven, Tilburg, Groningen, Breda, Den Bosch and Maastricht.

The Netherlands is generally seen as an attractive market to locate a store since the country is well-known for its favourable shopping climate. The majority of non-food stores is located in inner-city high streets while cities with a non-historical centre also see stores being located in shopping centres in their inner-city.
Being densely populated, the retail structure is characterized because of the relatively large number of smaller neighbourhood shopping centres that focus on the sales of daily goods and therefore hardly compete with inner-cities. The inner-city is mostly the main location for retail sales in a city, with large district centres in the largest cities also being attractive for both consumers and retailers.

 

 

 

 

 

 

 

ECONOMIC SUMMARY
ECONOMIC INDICATORS*2011201220132014F2015F
GDP growth 1.7-1.6-0.70.71.3
Consumer spending 0.2-1.5-1.6-0.10.5
Industrial production-0.6-0.40.5-1.72.6
Investment 5.6-6.0-3.90.92.0
Unemployment rate (%) 5.46.48.28.48.0
Inflation 2.32.52.50.91.4
US$/€ (average)1.391.281.331.331.24
US$/€ (end-period) 1.291.321.381.261.22
Interest rates 3-month (%) 1.40.60.20.20.1
Interest rates 10-year (%) 3.02.02.01.51.4

NOTE: *annual % growth rate unless otherwise indicated. E estimate F forecast
Source: Oxford Economics Ltd. and Consensus Economics Inc

ECONOMIC BREAKDOWN
Population 16.8 million (2014)
GDPUS$ 854.0 billion (2013)
Public sector balance -2.3% of GDP (2013)
Public sector debt68.6% of GDP (2013)
Current account balance10.4% of GDP (2013)
Parliament Centrist "grand coalition" of the People's Party for Freedom and Democracy and the Labour Party
Head of State King Willem-Alexander
Prime Minister Mark Rutte
Election date May 2015 (First Chamber) September 2016 (Second Chamber)
RETAIL SALES GROWTH:
% CHANGE ON PREVIOUS YEAR
2010201120122013F2014F2015F
Retail Volume-0.9-1.4-3.1-3.80.80.6
Retail Value0.30.6-1.4-2.90.71.6

Source: Oxford Economics Ltd. and Consensus Economics Inc

LARGEST CITIES (2013)
CITYPOPULATION
Amsterdam810,940
Rotterdam618,360
The Hague508,940
Utrecht328,160
Eindhoven220,920
Tilburg210,270
Groningen198,320
Almere196,010
Source: National Statistics (CBS)

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Amsterdam: 52.370216, 4.895168
Rotterdam: 51.924216, 4.481776
The Hague: 52.070498, 4.300700
Utrecht: 52.090142, 5.109665
Eindhoven: 51.441642, 5.469722
Tilburg: 51.586295, 5.079127
Almere: 52.371353, 5.222124
Groningen: 53.219384, 6.566502

MAJOR DOMESTIC FOOD RETAILERS

Albert Heijn (AH), Jumbo, Coop, Van den Broek, Plus

MAJOR INTERNATIONAL FOOD RETAILERS

Aldi, Lidl

MAJOR DOMESTIC NON-FOOD RETAILERS

Supertrash, WE, G-Star, Scotch & Soda, Hunkemöller, V&D, C&A, Coolcat totaal, Blokker totaal, Coltex

INTERNATIONAL RETAILERS

Primark, Mango, H&M, Inditex, Apple, Marks & Spencer

Food & Beverage Operators

McDonalds, Burger King, Wagamama, New York Pizza, Kentucky Fried Chicken, Starbucks, Coffee Company, Vapiano

TYPICAL HOURS
MONDAY through SATURDAYSUNDAY
06:00 - 22:00Differs per municipality

The Netherlands is one of the more mature retail markets of Europe. Nevertheless, the country is relatively small given European standards, with only 16.9 million inhabitants. The country has one of the highest retail densities in Europe, with many smaller cities having their own retail market. Amsterdam, Rotterdam, The Hague and Utrecht remain the most important cities for international retailers.

The total domestic retail floor space is estimated to stand at approximately 27.92 million square metres across nearly 100,000 stores. Just over one-third of this space is located in the centre of cities, towns and villages, while the remainder is spread across district- and neighbourhood shopping centres, retail warehousing locations and solitary retail units.

The total shopping centre GLA ranks amongst the highest in Europe, with approximately 6.078 million sq.m the Netherlands ranks seventh in the total GLA per 1,000 inhabitants, which stands at approximately 359.6 sq.m per 1,000 inhabitants. This is above the EU-27 average as well as above the average of countries such as the United Kingdom, France and Germany. The shopping centre market of the Netherlands is characterized by relatively small shopping centres and only a few centres of 50,000 sq.m and above.

The retail warehousing market in the country is relatively small, with only few successful retail warehousing locations in the country, mainly because of the strict regulations for these locations that were held tightly in the past by many municipalities. Successful locations include Alexandrium in Rotterdam and the PDV-GDV shops next to the Amsterdam ArenA.

The Netherlands currently has three factory outlet centres scattered around the country. With Designer Outlet Centre (DOC) Roermond being voted as best factory outlet centre in Europe in 2010, the country has proven to have high quality outlet centres. In addition to the centre in Roermond, there are also designer outlet centres in Roosendaal and Lelystad.

The Netherlands ranks amongst the highest countries regarding internet sales. The high level of internet availability in the country has helped the Netherlands in developing its e-commerce sector. Last year, online expenditure increased again to an annual volume of EUR 14 billion. A total of EUR 7 billion was spent on products and EUR 7 billion on services. The EUR 7 billion which were spent on products represent 10.2% of total products expenditure, online and offline. Cross border purchases account for 3%, EUR 390 million, of total online expenditure. The online expenditure on services on the other hand represents 17.6% of the total online and offline expenditure. Main segments in cross border expenditure are airline tickets and accommodations (EUR 132 million), IT (EUR 42 million) and clothing (EUR 31 million). Chinese and German online stores are most popular. In total, 23% of cross border expenditure can be granted to Chinese online stores and 18% to German online stores.

There are no restrictions on foreign companies either buying or renting property in the Netherlands. It is generally believed that the Dutch lease structure is more orientated toward tenant than to landlord. Many retailers in the Netherlands have liked the nature of leases which gives them fixed rents for five year/ten year periods with only indexation once in a year to CPI.

TOP SHOPPING CENTERS BY SIZE
NAMECITYSIZE (GLA SQM) YEAR OPENED
Hoog CatharijneUtrecht110,100 sq.m1971
AlexandriumRotterdam108,000 sq.m11984
In de BoogaardRijswijk102,000 sq.m1963
CitymallAlmere89,500 sq.m2006
ZuidpleinRotterdam70,000 sq.m1972
Stadshart ZoetermeerZoetermeer60,000 sq.m1985
WoenselXLEindhoven55,450 sq.m1951
LeidsenhageLeidschendam55,000 sq.m1971
Amsterdamse PoortAmsterdam50,500 sq.m1986
Stadshart AmstelveenAmstelveen47,500 sq.m1962

New Entrants to the Market

Forever 21PrimarkTK MaxxJD SportsPaprika
Top ShopLola LizaSnipesUrban OutfittersMarks & Spencer
Ted Baker& Other Stories

KEY FEATURES OF LEASE
ITEMCOMMENT
Lease TermsMinimum of 10 years; this can either be a contract of 5 + 5 extension/option years or, in intervals of 5 years, a 10 to 15 etc years contract. After the end of the contract the lease term gets extended yearly. If parties wish to deviate from a 10 year period they have to ask the court for approval.
Rental PaymentMonthly or quarterly in advance
Rent ReviewPossible after first term, then after every 5 years. Review to comparable rental prices over last 5 years, which has a dampening effect.
Service Charges, Repairs and Insurance Services charges depend on contract. Tenant: Minor repairs Landlord: Main structural repairs
Property Taxes and other costs The landlord and the tenant are each partly responsible for the property tax levied by the local authority. Each property is assessed for taxation purposes, known as “onroerende zaak belasting”. The local government gives a value on the property and that value remains for 1 year. Each year the central government collects the tax. The rate depends on the local government and this is a percentage of the value of the Immovable Property Act. The average property tax in the most attractive shopping cities amounts for the landlord 0.2476% and for the tenant 0.1944% of the value of the immovable property act. Below, rates of the property tax are stated per city.

[Location] / [Landlord] / [Tenant]

Amsterdam / 0.1992% / 0.1593%
Rotterdam / 0.3186% / 0.2529%
The Hague / 0.2154% / 0.1193%
Utrecht / 0.2732% / 0.2207%
Eindhoven / 0.1907% / 0.1520%
Tilburg / 0.1872% / 0.1572%
Groningen / 0.4068% / 0.3273%
Almere / 0.2644% / 0.2125%
Breda / 0.1713% / 0.1368%
Den Bosch / 0.2586% / 0.2071%
Maastricht / 0.2380% / 0.1930%
Disposal of a LeasePermitted, subject to lease and landlord consent. Assignment: subject to initial lease contract or to be negotiated upon. Sub-letting: generally not, but landlords cannot turn down requests made on reasonable grounds and so sub-letting is subject to landlords written approval.
Valuation MethodsNEN 2580-i.e. from glass to glass, excluding vertical circulation areas and building related technical areas.
LegislationDutch Civil Law Code book 7


Netherlands Contacts

ARJEN BOESVELDT

Partner, Head of Retail Agency
Atrium 3rd floor, Strawinskylaan 3125
1077 ZX Amsterdam
Netherlands
Tel: +3120 (800) 2035
Mob: +3161 (093) 0908