Dealers hit Europe's traditional retail: European countries are forced to decline in rents

Axa Real pence, Europe's biggest real estate fund regulator, reported in Monday that European shopkeepers would be forced to accept lower rents in the next few years to help retailers address the impact of the rapid rise of e-commerce and the slump in consumer spending.

In European countries such as France and the UK, http://www.aliyun.com/zixun/aggregation/7976.html "> online shopping has posed a" huge threat "to physical retailers, Axa Real Estate said in the report. That would make it impossible for some retailers to afford the current rent, forcing landlords to cut rents.

Property investors underestimated the impact of internet shopping and the downturn on traditional retailers, the report said. The report shows that between 2012 and 2016, 90% of retail sales in Britain, France and Germany will come from online spending, about 122.2 billion dollars.

Axa Property said it would cause retailers to cut real estate costs to ensure profitability, leading to a forced drop in rents. Spain's lease costs, for example, will fall by as much as 18% during that period, and France will fall by 17%.

"Retailers will be forced to lower lease costs, and the current rents may be affordable for some profitable businesses," said Axa Real estate. But for other businesses, it is not profitable to pay the current rent.