November 2013

DUTCH
RETAIL WAREHOUSING
The development of
peripheral retail trade in the Netherlands
Disclaimer
CBRE B.V. confirms that information contained herein, including projections, has been obtained from
sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make
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Colophon
Photograps provided by: CBRE Global Investors, Rockspring, CBRE
Photo front page: Meubelplein Ekkersrijt
Special thanks to Anne-Marie Klijn and Berend Haagen of
Boekel De Nere for checking the text on Dutch regulation
DUTCH RETAIL WAREHOUSING 3
Introduction
The current landscape of Dutch retail warehousing
is the result of an ambiguous retail policy. New
retail initiatives were confronted with restrictive
legislation. More relaxation of regulation started
since the 1990s. Due to unclear definitions and
stipulations, however, the result was not necessarily
more clarity. This publication is an introduction
to the current regulation and features of Dutch
peripheral retail trade. It will also highlight the
features of currently well-performing locations.
From past to present
The starting point of retail warehousing in
the Netherlands is to be found in the 70s of
the previous century, when the so-called PDV
policy came in force. This planning policy was a
governmental response to the observed shift of
retailers to the periphery of cities. Trends and social
developments such as increasing prosperity
(increasing disposable income), increasing mobility
(car use) and the introduction of self service
outlets resulted in changing spatial requirements.
Retailers particularly needed larger floor areas,
cheaper ground and better parking facilities.
Logically, therefore, many retailers moved to the
periphery of the cities.
PDV referred to peripheral large-scale retail
trade or: the selling of sizeable goods. The scope
of branches labelled as PDV was limited to cars,
boats and caravans. DIY markets, garden centres,
kitchen, sanitary and home furnishing were added
to the list later on.
The PDV policy allowed retailers in the envisaged
branches to settle outside the existing shopping
centres but still within the built-up area. As such, a
lot of PDV locations are to be found on industrial
sites. Today, PDV usually refers to home furnishing/
living.
Other branches in non-daily goods were allowed
to settle outside the existing shopping areas since
the 90s. The new GDV policy referred to the
size of shops, not to the size of goods. The term Big
Shops, therefore, which is commonly used abroad,
is also appropriate for GDV. The minimum floor
area of GDV units was set on 1,500 sq m. Contrary
to PDV, the GDV policy did not encompass branch
restrictions. There was, however, an important
stipulation: new GDV schemes should not affect the
existing retail structure.
In the National Spatial Strategy (Nota Ruimte)
of 2006 was also incorporated the Fifth Policy
Document on Physical Planning (Vijfde Nota
Ruimtelijke Ordening). The Fifth Policy Document
on Physical Planning envisaged a shift of many
responsibilities on the field of planning of retail
locations from the government to the local
authorities, particularly local councils. Furthermore,
the National Spatial Strategy 2006 dictated
(contrary to The Fifth Policy Document in which
nothing substantial changed regarding retail
warehousing) that retail warehousing was allowed
only within urbanised or in future to be urbanised
areas. New retail locations should complement
existing retail locations as much as possible and
high impact locations should be located near well
accessible public transport hubs. The regulation,
however, was unclear, thus providing both local
authorities and companies space for motivating
respectively planning policy or retail projects.
A new law, Spatial Planning Act (Wro), was
introduced in 2008. All planning visions of central,
provincial and local councils were from now on
compiled in a single document, the Structuurvisie
(structural concept). De Structuurvisie comprises
the long-term vision of councils regarding urban
planning. Municipal zoning must be in line with the
Structuurvisie, although deviation is still possible. In
any case, branch restrictions had to be motivated
by spatially relevant arguments. Nonetheless, now
and then the arguments were actually economically.
In September 2013, the jurisprudence regarding
a retrievable breakdown of the level of facilities
was altered.
Alexandrium II,
Big Shops, Rotterdam
Strong features:
visibility & strong tenants
Decisive today is: will a new retail scheme hinder
the residents of the involved area in obtaining their
basic necessities within a reasonable distance
from home?
Previously, the criterion was daily purchases or
regular purchases. As such, when the realisation of
a new retail scheme is being assessed (is it spatially
acceptable?), the test is less stringent.
4 DUTCH RETAIL WAREHOUSING
Bossche Boulevard,
Den Bosch
Strong features:
image & clear profile
The European Services Directive
The European Services Directive (2006) was
adopted in Dutch law via the Services Act
(Dienstenwet) in 2009 and seeks to further the
European single market for services. Retail trade is
encompassed by the word service. The Directive
is restricting requirements on rules affecting
access to - or the exercise of - a service activity.
Consumers should have optimal accessibility to
competition.

An important issue is how the Directive relates to
Dutch municipal restrictions in zoning plans for
new retail (warehousing) locations. A few legal
cases indicate that all comes down to motivation.
From the Directive results that municipalities
cannot impose retail sector restrictions based on
economic motives. New large-scale retail schemes
in the periphery cannot be prohibited just in order
to protect retailers in the inner city (regulation of
competition). Before the Directive came in force,
restrictions often resulted from economic motives.

As such, sector/branch regulations should be
substantiated by overriding reasons in the public
interest, which should fall in the categories
planning (aspects such as liveability in the
city centre or in small cores, parking (ratio),
accessibility, traffic, disruption of the retail
structure), consumer protection or environmental
quality (noise pollution, dust, air quality).
As for planning, a municipality may still demand
regarding a specific peripheral retail location a
minimum floor area for the units, a maximum
number of square metres for retail warehousing
or a maximum building rate per parcel.
Occasionally, a municipality may also steer
on theming.
Regarding consumer protection, branch
restrictions cannot be based on, for example,
an assumed oversupply or a possible closure
of outlets of existing retailers, since there is no
spatial relevance here. In case of a dispute, the
administrative court will consider: will a new retail
scheme hinder residents in the involved area to
obtain the basic necessities within a reasonable
distance from home?

Another issue is the establishment of supermarkets
at out-of-town retail locations. The Directive
allows municipalities to ban supermarkets,
as long as the restriction results from spatial
considerations.

Summarizing: also the European Services Directive
allows municipalities to impose branch restrictions
if motivated correctly (spatial motivated). The
requirement of a careful motivation, however,
also offers respective parties an opportunity to
dispute the substantiation of imposed restrictions.
The effect and impact of the Directive is not
crystallised yet, due to a lack of legal cases.
Development of retail warehousing
While government policy evolved slowly, the
landscape of retail warehousing was formed
gradually. The development of lay-out and
concepts of peripheral retail locations shows five
stages. To a certain extent these stages resemble
the often referred to generations of peripheral
retail locations. Since, however, particularly
in the last 10 to 15 years, boulevard concepts
emerged more or less simultaneously or were
almost blending, it is easier to define stages than
generations.

First stage
Period: 70s of the previous century. The move
of several retailers to the periphery of cities
eventually led to a governmental response with
the PDV policy. Initiators of the first clusters of
home furnishing stores were retailers. The clusters
emerged in an unstructured way. Typical layout:
often on industrial sites. Buildings were stand-
alone or adjacent, characteristic were an inflexible
use and separate accesses.

Second stage
Period: mid 80s - early 90s of the previous
century. Contrary to the first stage, planned retail
clusters emerged: cities started with allocation of
areas suitable for PDV branches. PDV was also
expanded with branches such as DIY, kitchen,
sanitary, garden and home furnishing. The
branch restriction was 80% Living. Examples
are Woonboulevard Zoeterwoude, Leiderdorp,
Beverwijk and Alkmaar.
DUTCH RETAIL WAREHOUSING 5
Third stage
Since the 90s: planned boulevards with a typical
layout for PDV and related branches. The concept
was a compact mall-like retail cluster. Examples are
Bossche Boulevard and Woonboulevard Zwolle.

Fourth stage
Admittance of GDV branches at PDV locations
resulted in retail clusters combining peripheral
retail trade (PDV) and large-scale retail trade
(GDV/big shops). Examples are Plein Westermaat
(Hengelo), Woonboulevard Cruquius (Cruquius),
Alexandrium II & III (Rotterdam) and Villa Arena
(Amsterdam).

Fifth stage
Most recent concept: large-scale retail trade (PDV)
and/or GDV (big shops) locations combined with
a large supermarket. The supply of retail branches
was widened further. Examples are Big Shops Park
Boulevard (Rotterdam) and retail park Roermond.
Although stages of development and a distinction
between PDV and GDV can be made, the chapter
on retail warehousing policy shows that the
landscape of retail warehousing in the Netherlands
is still somewhat unclearly defined.
To start with, since unclear definitions and
regulation enable municipalities to interpret
regulation differently, the result is, for instance, that
one city allows a supermarket at peripheral retail
locations, while another city does not.
Furthermore, in practice one finds increasingly
branches at peripheral retail locations which were
of old located in traditional shopping centres only,
such as shops with baby and pregnancy goods.
The assortment of original PDV/GDV-branches
is increasingly comprising non-voluminous and/
or non-core goods (blurring of branches). An
exception so far is the fashion branch. Because
fashion is strongly connected to fun shopping in
the inner cities, there is restraint among developers,
local authorities and retail organisations towards
the establishment of fashion at peripheral retail
strips.
To conclude, GDV-shops do not always meet the
requirement of a minimum floor area of 1,500
sq m. One finds here and there also GDV-shops
with a smaller floor area in order to prevent
vacancy.
Identifying success factors of retail
warehousing locations
Generally, factors often indicated as important
for the large-scale retail trade are location,
accessibility, image, visibility, parking, critical
mass, the number of consumers (catchment
area), competition from other retail warehousing
locations, the proximity of a historic shopping area
(city centre), commitment of retailers, commitment
of owners and good marketing (good website).
The Netherlands offers about 184 large-scale
retail locations (Locatus), apart from the outlet
centres. This shows that there is strong competition
since the Netherlands is a small country. As such, it
is questionable whether all locations will be able to
generate sufficient footfall and turnover volumes.
Woonboulevard Cruquius,
Cruquius
Strong feature:
broad supply (good mix of
PDV & GDV/big shops)
6 DUTCH RETAIL WAREHOUSING
Which features are characteristic for currently
strong performing retail locations and could
possibly be helpful for a weaker performing
location?
The success of some peripheral retail strips is
obviously related to location. A few peripheral
retail areas in the Netherlands are situated near
the country borders. These locations fulfil a super
regional role since they also attract German and
Belgian visitors. Examples of such locations are
retail park Roermond (2.5 million visitors annually)
and the boulevards in Venlo, Heerlen, Breda
and Hengelo. Even under the current economic
circumstances, these locations are still showing a
good performance, thanks to a steady amount of
foreign visitors.
Besides, also Designer Outlet Centre Roermond is
located near the country border. DOC Roermond
welcomes about 4.5 million visitors (domestic and
foreign) annually.
The DOC is, however, similar to the other two
outlet centres (Bataviastad in Almere and Rosada
in Roosendaal), a somewhat strange concept in
the Netherlands. Even so, the strong performance
of these locations is related to both a distinct and
clear profile and a super regional role.
Furthermore, it is important to offer a broad
supply of shops. Locations performing well thanks
to a good mix of shops are for example Plein
Westermaat (Hengelo) and Woonboulevard
Cruquius (Cruquius).
From this perspective, it would be helpful when a
municipal zoning allows more segments than PDV
branches only. The presence of a supermarket,
for instance, may increase footfall. Supermarkets
attract consumers throughout the day and week,
while the living branch attracts consumers mostly in
CBRE & Meubelplein Ekkersrijt
Location: Son (near Eindhoven), Province of Noord-Brabant
Instruction: Project management, redevelopment & letting
Reason: Ekkersrijt was outdated. Existing tenants had to be retained via lease renegotiations.
New tenants had to be found for vacant units.
Project: Existing floor area: 26,000 sq m
Demolition: 6,000 sq m
New retail space: 20,000 sq m
Implementation: Property management: CBRE Property Management
Lease renegotiations: CBRE Retail & Development Services
New leases: CBRE Retail & Development Services
5,000 manhours
Result: Completely refurbished home & living mall with both existing and new tenants
weekends and during evening openings.
The presence of other branches in daily goods, for
instance drugstores, may increase footfall as well.
Such branches may benefit from spinoff via the
non-daily purchases and may in turn extend the
stay of consumers. Besides, this also applies to the
presence of restaurants and catering facilities.
Generally, retailers such as Action and Xenos seem
to increase visitor numbers. A special role is being
played by IKEA. Retail locations with an IKEA (in
the vicinity) are without any exception functioning
well.
Brand stores may contribute to both the image and
feeling or experience of a retail location and may
eventually extend the stay of consumers. Brand
experience is very important for Dutch consumers.
Several retailers have expressed the desire to open
brand stores at PDV locations, such as Tempur,
Auping, Siematic and Leolux. Currently, the
number of brand stores is increasing indeed.
The bigger the better surely applies to retail
warehousing. As such, ideally a retail location
should at least cover 25,000 sq m in size in
order to have enough critical mass, both in size
and supply of goods. This implies that there are
currently a lot of retail locations in the Netherlands
which are too small to generate a sufficient
footfall.
Parking is a very important issue. Dutch
consumers wish free parking and not only during
the day but also in the evening. A location with
excellent parking facilities is Big Shops Park
Boulevard Rotterdam.
To conclude, creating a clear and distinct profile is
crucial, since consumers will ignore retail locations
with a jumble of shops and branches. The supply
of shops, therefore, must be a coherent whole.
More information about the Dutch retail market is available on: www.urd.cbre.nl
DUTCH RETAIL WAREHOUSING 7
Source: Locatus
Largest peripheral retail trade locations
PROJECT CITY FLOOR AREA (SQ M) TYPE OF AREA
Alexandrium I, II, III Rotterdam 108,442 Shopping centre, big shops & living mall
In de Cramer Heerlen 106,069 Home furnishing
Woonboulevard Zaandam Zaandam 99,983 Home furnishing
Meubelplein Ekkersrijt Son 97,908 Home furnishing
Woonboulevard Utrecht Utrecht 97,173 Home furnishing
Woonboulevard Cruquius Cruquius 88,615 Home furnishing & big shops
Villa Arena Amsterdam 77,121 Home furnishing & big shops
Megastores The Hague 75,899 Home furnishing & big shops
Woonboulevard Breda Breda 72,270 Home furnishing & big shops
Woonboulevard Sliedrecht Sliedrecht 68,962 Home furnishing
Woonboulevard Beverwijk Beverwijk 66,900 Home furnishing
Woonboulevard Poortvliet Poortvliet 65,326 Home furnishing
Woonboulevard Waalwijk Waalwijk 57,644 Home furnishing
Woonboulevard Doe Mere Almere 53,001 Home furnishing & big shops
Woonboulevard Groningen Groningen 52,380 Home furnishing
Woonboulevard Helmond Helmond 50,833 Home furnishing
Run Shopping Centre Snipperling Deventer 50,007 Home furnishing & big shops
Woonboulevard De Nieuwgraaf Duiven 49,215 Home furnishing
Nijbracht Center Emmen 48,760 Home furnishing
Trefcenter Venlo 43,691 Home furnishing, big shops, food
Outlook
With the living branch as largest occupier by far
at retail warehousing locations, the impact of
the currently stagnating housing market in the
Netherlands is being felt strongly in all home-
related segments. Consumers are also postponing
the purchase of durable goods such as white and
brown goods and cars. With at the most a slight
economic growth forecasted for 2014, the situation
for the large-scale retail trade will remain tough on
the short term.
So far, prime locations have shown a relatively
modest increase of vacancy and rental decline.
This situation is changing, however, since the
summer of 2013. At secondary locations, rents are
declining at a faster pace and at some locations
vacancy is becoming more structural.
An exception are particularly retail locations
situated near the country borders, which are still
able to attract German or Belgian visitors.
As for the liberalisation of zoning for supermarkets,
sporting goods and electronics stores,
municipalities remain cautious. A change on this
field is not to be expected on the short term.
Existing retailers are willing to stay at their present
location, but they desire smaller units. Downsizing
of units, however, is difficult due to the lay-out
(length/depth) of the buildings. A few brands
settled in a multi brand store wish to open a brand
store, ideally with a floor area of 250-500 sq m.
Property owners must make sure that their property
is up-to-date and the parking facilities must be
tiptop. Currently it is difficult to attract expanding
retailers to peripheral retail locations. Still, the
recent coming of a few newcomers to retail
warehousing locations shows that such tenants can
still be found when the terms and the size of the
unit are right.
For more information about this report please contact:
CBRE B.V.
+31 (0)20 626 26 91
netherlands@cbre.com
www.cbre.nl
Ratih Bach
Senior Analyst Research & Consultancy
Leon Overhorst
Director Retail
Rogier van Buuren
Associate Director Capital Markets
Albert Hoogland
Executive Director Asset Services