Insolvency in your shopping street? No reason to worry

The news about bankruptcies in the Dutch (and German) shopping streets are becoming increasingly common. Many (independent) retailers: In the past few months, the inside has witnessed how a neighbor or a neighbor in the shopping street had to register bankruptcy. Although such messages can come out of the blue, the disappearance of a business does not have to immediately worry about the future of the entrepreneurs: be themselves in the inside, as conversations with Expert show.

Many shops quickly find new use. Just remember how coveted the Blokker real estate were, but the areas of Scotch & Soda and Esprit quickly found a new tenant. Nowadays, in contrast to earlier years, transactions are handed over ready for occupancy and high quality, as Erica Kruissen, spokeswoman for JB Retail, told fashionunited in 2024. This allows a new tenant to move in quickly.

“A business is not without reason, then in most cases it did not attract enough customers,” explains Gertjan Slob from the retail site analysis company Locatus. “A new tenant can also produce bankruptcy, which in turn attracts new audiences,” he puts into perspective.

Dirk Mulder, retail expert at ING, also points out that the cause of bankruptcy is not always at the location of the shops. “In the case of shops or concepts that fail, the current events may be the drop that causes the barrel to overflow. However, there is often a lot ahead. Is the business still relevant, is still invested in the business, the range, customers, etc.?” An insolvency alone on the shopping street in which it is located is not a complete picture.

An insolvente business in your street: Do you have to worry as a retailer: in worries?

Locatus has the Retail Risk Index, which determines how likely it is that a certain business continues at a specific location. This index is created based on various factors, including the “road risk”. In addition, the industry in which a business is active and the general market conditions are also taken into account. When it comes to road risk, attention is paid to the vacancy in the street, the conversion of shops to apartments and the number of business changes. All of this has a negative impact on the appearance of the shopping street, which makes the chance of earning money. Businesses that are still in such a shopping street can get into difficulties in the long term.

But as already mentioned, many shops do not remain empty. However, it is important what these shops are filled with. “Retail is dynamic enough that shops are filled again at good locations. This can improve the shopping street, but it can also go in the other direction,” explains Mulder. “What you often see when there is a long time is that real estate owners: inside or investor: then fill gaps with pop-up stores, nail studios or grocery stores. A nail studio may still go, but several influence the appearance of your shopping street.”

If, on the other hand, there is a business in the segment in which you as a retailer: in your own work, this can attract significantly more audience. “As an entrepreneur: You can also intervene in taxes,” explains Mulder. “Many areas have shopping road managers: inside: Find the conversation. Or speak to the real estate investor: inside in the street or your city. See what you need in the shopping street and what you could attract.

An active role is also important when it comes to assessing the business location. “Don’t wait for your rental agreement to expire, but really start thinking about it one or two years in advance. So if a business fails on your street, this is not an acute reason to worry. Pay attention to changes and ask yourself: Is bankruptcy caused by the business location or are there other reasons? A free business also offers opportunities to continue to design the shopping street in such a way that it fits the area. Find a discussion with the regional manager: inside and real estate investor: inside, and who knows, maybe you will soon have new neighbors: inside.