Italy and Spain are set for rapid out of town retail sales growth, according to the new report published this week by Verdict Research (part of the Datamonitor Group), in association with Savills.

The report, European Out of Town Retailing 2008, states that the Mediterranean countries of Italy and Spain are showing strong potential for further rapid development, with up to 46% growth in spending in Italy during the period between 2007 to 2012, and a 25% increase in Spain in the same period. Both markets are proving especially attractive to retailers and developers as they are still in a 'catch up' phase, compared to the rest of Europe in terms of out of town retail.

Lydia Brissy of Savills' research comments: "Out of town retailing is still a relatively new concept in Italy and Spain, and we are expecting buoyant sales and space growth over the next five years with international investors and retailers eager to take advantage of the opportunities remaining in these markets."

Looking at the wider European market, the report outlines that countries in the north such as France, Germany the Netherlands and the UK will see slower, yet still strong, growth over the next five years.

Daniel Lucht, senior analyst at Verdict and author of the report, says: "The more mature out of town markets growth will be stifled by the absence of available, high quality space that has potential to be developed. This will be particularly evident in the UK, Netherlands, France and possibly Germany as there is a new focus on the high street and inner city shopping centre development in these markets, which will provide fierce competition for the out of town arena."

The report predicts that growth in mature markets will be driven by initiatives to rejuvenate and redevelop older retail parks, making existing space work harder, in order to maximise potential for both retailers and investors.

Daniel continues: "Following the recent trend of clothing retailers vying for out of town positions across the Europe, we are expecting that future demand will be driven by other types of retailers, who currently don't have an out of town offer."

Lydia Brissy continues: "We are seeing several new concepts emerging throughout European markets such as Dutch furniture boulevards. These outlets create unrivalled destination status, and combined with the development of leisure facilities including restaurants, cinemas and sports facilities have increased footfall at out of town destinations and revitalised existing schemes."

To purchase a copy of this report, please visit:
http://www.verdict.co.uk/eMarketing/vr106/vr106asonsite.htm

Contact Information
Lydia Brissy
+44  (0)20 7016 3776
lbrissy@savills.com