That confinement has hit businesses hard is well-known. But two months later, shopping malls in particular have been able to relaunch quite quickly and effectively.
Our colleagues from RTL Radio visited Belle Etoile and Cloche d'Or at the end of last week to assess the situation, and talk to vendors and customers.
It is Friday afternoon and Belle Etoile is crowded. Shoppers are wearing face masks. Even though people were reluctant to go out to the mall in the first weeks of June, their "buying mood" is high again at the end of July, says Belle Etoile director Manu Konsbruck. It was even better in some cases than 2019: "Some of the establishments in the mall have seen more revenue post-quarantine than the year before."
Cloche d'Or, on the other hand, is rather quiet. Apart from the supermarket most establishments are not busy at all. Corridors are so wide here that social distancing is easy to maintain. "Corona meant that most establishments' revenue has halved," says Konstantin Kiermeier, president of the mall's merchant's association. Rents have, however, not changed: "The negotiations were very unsatisfactory. We don't need a reduction in rent of 5 or 10 percent, but at least 50 percent."
Belle Etoile has found alternative solutions to support their establishments, according to Konsbruck: "We dropped rent for two months for all of our 105 stores. This was definitely a measure we had to think about a lot."
Both malls agree, however, that a second lockdown would be fatal. Konsbruck goes on to say: "Stores selling clothes have had to throw them out with changing fashion seasons, or immediately put them up for end of season sale, generating less income. All stores with stocks have had to pre-finance them. Would we sink back into a lockdown in September or October, or even later during the Christmas shopping period, then the consequences will be very dramatic."
Nonetheless, shop owners are positive about the fact that many residents will be spending their holiday time at home, meaning an increase in consumption at home in July and August. If the infection rates stay low, that is.
