Two retailers close down in city centre due to construction sites

Carolyn Gobran opened Honey/Mustard, a Scandinavian designer shop, eight years ago but is now fully moving to selling her wares as part of a department store in City Concorde. Not the only business person to close their shop, other retailers are also struggling with the state of matters in the capital. A toy shop not far from her premises is also closing its doors. Whilst individual closure causes may differ, the central problem remains the construction sites blighting the capital.

In 1860, Pierre Simonis' grandparents opened the Lassner store in Luxembourg, and the establishment has moved locations three times. In 2020, the traditional shop will close down permanently, in partly due to the age of the owner. Nevertheless, Simonis added that the construction site on Place Guillaume II has damaged sales, pointing out that construction has been endless and ongoing for years: "They have been building for years and we still don't know when it will end."
Gobran, for her part, has been worried about the impact of construction sites on retail in the city centre for years. She explained that construction sites are a barrier against attracting customers, especially due to its knock-on effects on a lack of parking spots, the cost of parking, and smaller pavements. "All of these things have degraded the shopping culture in the capital."

Calculating the losses made by retailers is easily done when you consider rents often laying around €10,000 a month and insufficient footfall.  CSV Luxembourg City councillor Serge Wilmes confirmed that financial compensation due to construction sites is not enshrined in law. Wilmes did however admit the authorities are open to reflecting on the matter:

"This wouldn't be easy, because you need to define different types of construction sites and examine which criteria need to be filled. This is not always as clearcut as one would think. We don't have this type of legislation at the moment, and only applied for compensation as a result of the tram. There, funding will be made available because those retailers need aid. But for the rest of it, when construction sites are launched and retail units remain accessible, we've fulfilled our task."

Wilmes also pondered whether landlords of retail premises could show some flexibility, either by halving rent during construction site times or dismissing it altogether. An added issue for the city's retailers is the increasing competition brought on by shopping centres and online shopping. Retailers must adapt and show themselves as more innovative, something a number of shops in Luxembourg City are already doing, Wilmes added.