Combining retail, hospitality, education and culture is a golden formula

‘Combining retail, hospitality, education and culture is a golden formula’

‘The colour of the city centre is shifting and giving way to a wider palette of functions. This is mainly due to the experience economy. People have sufficient free time and seek out the city centre for a combination of hospitality, fun shopping, targeted shopping and specialty retail, but also use their visit to be inspired by art, film, culture and e-commerce hotspots or flagship stores. Relatively compact city centres with an authentic and historic character, a wide variety of shops, wider cultural offerings and, above all, a presence of universities and colleges will be tomorrow’s winners.’

‘Combining retail, hospitality, education and culture is a golden formula’

‘The colour of the city centre is shifting and giving way to a wider palette of functions. This is mainly due to the experience economy. People have sufficient free time and seek out the city centre for a combination of hospitality, fun shopping, targeted shopping and specialty retail, but also use their visit to be inspired by art, film, culture and e-commerce hotspots or flagship stores. Relatively compact city centres with an authentic and historic character, a wide variety of shops, wider cultural offerings and, above all, a presence of universities and colleges will be tomorrow’s winners.’

Transition

As an expert urban planner, he is a subject specialist with a sharp and up-to-date view on city centres and retail. ‘Look,’ says Prof. Nozeman, ‘city centres change pretty fast over time. We are now seeing a real transition. We are living in an experience economy, where experience is perhaps the most important argument for visiting a city centre. In addition, single people are increasing in number; they now stand at 22 per cent of the Dutch population and we see similar developments throughout Europe. Many singles want to live in or near to the city centre and settle for smaller homes, for example above shops. Besides, older people are attracted to the city centre as well. This transition in the city centre translates to the retail sector with specialist shops, the second-hand economy, small craft shops, repair shops, smaller fitness centres, urban supermarkets and, above all, a wide variety of catering businesses; from terraces, wine and beer bars to haute cuisine and veggie restaurants. Recently, online shops have also started establishing city centre experience hotspots or flagship stores where consumers can find inspiration; experience also plays an important role there. As space for storage in city centres decreases, ‘trendy neighbourhoods’ on the edge of city centres are also undergoing a transition. This is also known as gentrification, resulting in new and interesting retail locations. And overall, there is a trend towards quicker turnarounds in retail offerings, creating again new experiences.’

“City centres are in transition.”

Prof. dr. Ed F. Nozeman
Emeritus professor of Real Estate Development at both the Amsterdam School of Real Estate (ASRE) and the University of Groningen (RUG). He is known for numerous academic articles and is author and co-author of several well-known urban planning books.

New experiences

‘Consumers are looking for new experiences constantly, for new things to savour, and it is simply nicer to be surprised in a historic city than in a decentralised shopping centre,’ according to Nozeman. ‘And let’s not forget the effects of tourism. Several studies suggest that Amsterdam alone can expect nearly 18 million hotel stays in 2023. But the almost 40 high schools and 14 universities in the Netherlands also have a big impact. And they happen to be partly located in or near historic city centres. Higher education and culture act as key drivers of change in the retail landscape. Furthermore, bigger cities not only have bigger populations, but residents also tend to have higher disposable incomes. In regions without attractive cities, we also often see a decrease in absolute population and an overall less higher income level. Everyone seeks new experiences, and these are widely available in attractive city centres. The combination of shops, bars and restaurants, education and culture in a city is a golden formula. In a digitally connected world, people yearn for face-to-face quality time, and city centres are the ultimate place to find it.’

Retail responds to transitions

‘I am supremely confident that city centres have a great future,’ Nozeman concludes. ‘Large companies are moving their headquarters to be close to public transport hubs and train stations. Their labour force lives in cities, and because their employees often travel with (e)bikes, (e)scooters and public transport, accessibility is great here. Again, this creates momentum for retail. Retail finds its way naturally into all these transitions, so to speak, and actively responds to them. Developers see opportunities to boost attractive brands and the combination of phygital experience and online shopping is a great fit. The city centre retail future looks bright!’