Following a study which took place earlier this year, it was concluded that around 100 shops are standing empty in the southern city. Esch residents' spending power falls notably below the Luxembourgish average, which has had repercussions on businesses in the area.
Pim Knaff, DP alderman in the city, said Esch residents had around 89% of the national spending power average, which meant there was a requirement to have shops at different price levels, offering affordable shopping for all residents. However, Knaff said there were those who criticised the current offering which is lacking in higher priced items, saying there were too many budget stores in the area. This, said Knaff, could make the area less attractive to shoppers.
Fewer shoppers from surrounding towns have been coming to Esch-sur-Alzette, which has also had an effect. The municipality is hoping to encourage shoppers back to the city by developing the Belval and Esch-Schifflange shopping centres. Astrid Fries, president of the Esch business association, said the clientele had changed and that stores would have to adapt to suit customers' demands.
The Luxembourg Institute of Socio-Economic Research (LISER) is currently undertaking further studies to provide more precise figures for the city council and shops. Knaff said the figures they were looking for would comprise the number of businesses, the average duration of a business in Esch, commercial and business rent prices, as well as demographic for shoppers, residents and employees. These would help to inform both local authorities and business on how best to proceed.
A new shopping centre is planned on the city's outskirts over the next few years, although Knaff did not think this would be a danger to local stores, saying the Cactus supermarket planned will not become a new Cloche d'Or or Belle Etoile-style shopping centre. Instead the new complex will centre around food, with a few small stores, a dry cleaners and a fitness studio.
Fries also ascribed the decline in stores to competition in neighbouring countries, as well as online commerce.
The phenomenon is not restricted to Esch-sur-Alzette, with a number of shops empty or closing down in Luxembourg City as well. The way forward was not exactly clear, said Fries.
