Retail Risk Index

The Retail Risk Index sketches the risk profile of shops and shopping areas in the Netherlands. This information reduces uncertainty about the future of store locations - but what exactly is the RRI based on?

The Retail Risk Index sketches the risk profile of shops and shopping areas in the Netherlands. This information reduces uncertainty about the future of store locations - but what exactly is the RRI based on?

The future success of a retail location does not only depend on the performance of the store itself. The combination of supply & demand in the wider economy, as well as the development of other stores in the immediate surroundings all determine the future “chance of survival” of the store. We asked ourselves: can we use the information of the past to evaluate whether a proprietor in sector X will still be on location Y next year? The answer proved to be “yes”, and the query resulted in the development of the Retail Risk “traffic light”.

Risk profile

The Retail RisRRI---risicoprofiel-infograk Index quantifies the risk profile of a storefront via four performance indicators:

  1. Building Index Performance of this particular building up until now.
  2. Street Index Development of the shops and stores in the immediate surroundings of the desired location.
  3. Sector Index Development of the sector in which this store operates.
  4. Supply & Demand Index The relation between supply and demand of the sector in which this store operates (in the immediate surroundings).

This profile thus helps you to get a good overview on the risks and benefits connected with potential shopping areas, streets, or buildings. As a result, you are well-equipped to make decisions on where to invest (or decrease investments). Below you find a timelapse of the Retail Risk Index mapped in our Retail Plans:

Would you like to know more?

Ask Björn Jansen

Björn Jansen has been advising real estate agencies and retailers for many years. He will be happy to visit you to explain more about our databases and apps.