Which are the most dynamic commercial high streets in Europe?

Are the empty pavements of the Covid era a distant memory for the leading European shopping high streets? This seems to be the finding of the latest study by commercial real estate giant Cushman & Wakefield and footfall analysis specialist Mytraffic, published on July 12. The study tracked the footfall in 120 commercial high streets in Europe over a period of 12 months, from June 2022 to May 2023, and compared it to the same period a year earlier. Even if some high streets and cities are struggling, the study indicated that 60% of the main European thoroughfares analysed have recorded footfall increases.

The study also pitted the top commercial high streets in seven countries against each other. And the competition’s winner was Kalverstraat in the centre of Amsterdam, which recorded a 30% increase in footfall according to Mytraffic, whose study analysed footfall figures at various points of the streets in question. Stores located on the Dutch capital’s main shopping street, which extends for 750 metres between Dam Square and Muntplein, would on average see 726,000 pedestrians pass monthly by their shop windows. Although well known, Kalverstraat isn’t the busiest high street in the Netherlands, the title going to Leidsestraat. Cushman & Wakefield noted that Kalverstraat’s strong footfall growth was driven by greater tourist presence in the city. Following the pandemic, rents on Kalverstraat fell by about 20%, and several new flagship stores have been opened on the street since then, for example by Adidas, JD Sports, Oakley and Tissot. The average rental cost was calculated at €2,500 per square metre per year.

Another winner in this edition of the European high streets’ competition was Gran Via. The Madrid thoroughfare ranked first in terms of absolute footfall among the seven high streets examined by the study, with 1.923 million pedestrians passing by its shops each month. Gran Via was the busiest shopping street in Spain, ahead of Paseo de Gracia in Barcelona and calle Tetuán in Seville. Footfall in Gran Via increased by 26% over the previous year, and the street recorded various notable openings, for example that of the largest Uniqlo store in the Iberian Peninsula, and the return of Pull&Bear. A few more top names are expected to arrive soon: Nike is set to open in the imposing building at 30 Gran Via, a Scalpers store is on the cards, as well as Victoria’s Secret, which will open its second store in the city at number 38. Several Spanish and international brands are keen to open flagships on Gran Via, where the annual rental cost per square metre is relatively affordable, at €2,830.

The Champs-Elysées in Paris are on the upswing, having recorded a 15% footfall growth over last year, and a 131% growth over the past two years. “The world’s most beautiful avenue” was again able to generate a footfall of more than one million pedestrians per month, to the satisfaction of the stores overlooking it. In France, the Champs-Elysées were ahead of two other Parisian thoroughfares, boulevard Haussmann and rue de Rivoli, in terms of footfall. France’s top-five ranking was completed by rue de la République in Lyon and rue Masséna in Nice.

After the pandemic, many mid-market brands had left the Champs-Elysées, their exodus compensated by an influx of sport brands like Lululemon, while Foot Locker moved to a new address, and Adidas will soon open too. Luxury labels also made a come-back, for example Saint Laurent, and an LVMH label is expected to take over the former HSBC headquarters at number 103. The Champs-Elysées have benefited from a renewed influx of tourists in Paris, and will also exploit the enthusiasm for the 2024 Paris Olympic Games. Cushman & Wakefield observed a surge in rental costs for pop-up stores on the avenue, and estimated that the annual weighted rental cost on the Champs-Elysées is €16,350 per square metre.

For the number-four ranked street, the study headed to Milan and Corso Vittorio Emanuele II. The shops in the Italian city’s central street benefited from a footfall of 906,000 pedestrians per month, up 6% over last year. Corso Vittorio Emanuele II, which links Piazza Duomo and Piazza San Babila, was the second-busiest Italian high street behind via del Corso in Rome and ahead of via Condotti, also in Rome. In recent months, Armani Exchange and Polish apparel retailer Reserved have both opened on Corso Vittorio Emanuele II. According to Thomas Casodo, head of Italy retail at Cushman & Wakefield, “both footfall and the level of commercial interest are higher than in the pre-Covid period.” Calzedonia is set to soon take over from the former Disney Store at number 30 on Corso Vittorio Emanuele II, where the average rental cost is said to be €6,000 per square metre per year.

In Belgium, two of the country’s three busiest shopping high streets were in Antwerp. De Keyserlei ranked first, followed by Steenstraat in Bruges, and the Meir, also in Antwerp, was third with a monthly footfall of 834,000. But the Meir, a pedestrian street in the heart of the city, is undergoing a revamp, and its footfall grew by only 2%. Cushman & Wakefield noted that H&M operates a 6,500-square-metre flagship on the Meir, the street where JD Sports moved from a 300-square-metre store to a 1,700-square-metre one, and where Nike opened its Rise concept store, combining physical and digital experiences. Newcomers to the Meir also include Dr Martens, Etam and the Pink Gellac beauty chain. Annual rent per square metre on the Meir is the lowest among the seven high streets analysed, at €1,600.

Footfall slumps on Ku’damm and Oxford Street

Footfall in 40% of the high streets analysed in the study did not improve over the last 12 months, and the last two streets in the study’s top-seven ranking were among those. Footfall in Berlin’s Kurfürstendamm, known as Ku’damm, fell by 12%, with 688,000 pedestrians per month passing by its shops. While footfall in Oxford Street, London, dropped by 18% to 1.014 million pedestrians per month. However, there were big differences between the two thoroughfares.

Ku’damm is three kilometres long. It “can be split into an eastern section, including Tauentzienstraße, which is more focused on mass-market retail, despite the presence of KaDeWe; a central section, where rents are slightly lower, preferred by premium brands; and a western section, towards Halensee, home to luxury brands, where rents are the highest. In the central section, the Fürst complex is expected to be completed in 2023,” said Cushman & Wakefield, adding that Ku’damm, like the German retail sector as a whole, has been affected by the financial troubles that hit various footwear chains, as well as the Peek & Cloppenburg and Galeria department stores. More light should be shed on the situation in the coming months. Ku’damm nevertheless remains the most attractive shopping street in Germany, ahead of Kaufingerstraße in Munich and Schildergaße in Cologne. Luxury watches brand Breitling recently opened a store on Ku’damm, and soon Tiffany & Co. will follow suit, taking over the Cartier store at number 195. The study estimated the rental cost on Ku’damm at €3,000 per square metre per year, a value that is rising, and noted that Chanel and Dolce & Gabbana have relocated their stores there.

Over one million pedestrians passing by any store’s shop windows each month is a strong asset. Although sharply declining, Oxford Street is still a blue chip destination, and remains the UK’s number-one shopping street for footfall according to the study, ahead of Piccadilly Circus in London, and Princes Street in Edinburgh. Oxford Street is home to more than 300 stores between Hyde Park and Tottenham Court Road, and is undergoing a makeover. Several flagships have changed hands or are being renovated, as is the case for Marks & Spencer, which is planning to demolish and rebuild its Oxford Street branch. And, according to the study, GBP98 million have been earmarked to redevelop the street in 2024. Superdry has moved its flagship there, and Reserved has also opened a store. UK sneakers retailer Footasylum is due to open an 1,800-square-metre store in Oxford Street by the end of the year, and Ikea has opted for 10,000-square-metre premises halfway through the street. “In April 2023, retail business rates fell sharply, in some cases by up to 35%. This will drive down operating costs and attract new brands,” said Cushman & Wakefield. The study estimated the current average rental cost on Oxford Street at GBP 7,000 (€8,178) per square metre per year.