Prime shopping areas in Madrid reach record highs after fight against Covid 19

• Zona Centro Local leads the rebound in September with 36% more consumption than before Covid, followed by Barrio de Salamanca + 9% consumption and a 14% increase in the number of pedestrians.

• Consumption in Gran Vía-Callao, pedestrian Fuencarral, Goya, ZETa nº1, Espoz y Mina, Cava Baja, and in a relevant number of streets in the Prime Zones of Madrid.

• The average consumption in Madrid improved 25 points compared to August, standing on average 18% below September 2019.

Madrid, September 29, 2021.

September closes with a significant rebound in consumption in Madrid. All commercial areas have registered a significant increase in pedestrians and customers, with a level of consumption never seen before during the pandemic, according to the latest installment of TrueBroker Index, corresponding to the month of September 2021.

In Madrid's Prime Commercial Zones (Barrio de Salamanca and Zona Centro Local), the rebound in consumption exceeded the figures recorded before the pandemic, especially in the Zona Centro Local, where consumption was 36% higher than in the same month of 2019, with 15% fewer pedestrians, which augurs a new rebound in October. For its part, in the Barrio de Salamanca it was 9% above, with 14% more pedestrians than in September 2019.

The pattern of behavior by months was similar to that of before Covid, with the Salamanca neighborhood "suffering" a lot throughout the summer, even in June, and recovering consumption in September, while the Local Central Zone experienced successive rebounds throughout the summer. An area where, since May, consumption levels have been similar or higher than before the pandemic.

According to Pablo Beltrán, CEO of TrueBroker, "everything seems to indicate that consumption in Prime areas may rebound even more strongly in the following months, both due to the increase in pedestrians and the increase in the consumption multiplier, caused by a very positive mood. However, consumption will decline in other areas and streets, which will see their commercial value diminish or even disappear, as consumption shifts to a new type of streets and areas, which have become major players in consumption".

In this regard, TrueBroker is preparing a study on what the recovery in Madrid will be like and the new commercial map of the city, very different from the one we have known until now.

Consumption in other areas

According to the iTB, in September, the Unique Neighborhoods have experienced a great improvement, with a level of consumption (-3%), almost similar to that recorded is September 2019. The Tourist Center Zone also improved a lot compared to August, with an increase of almost 25 points in consumption. However, sales were 22% below September 2019, with 39% fewer passers-by. This figure reflects the lack of recovery in tourism, which may be slow. "We will still have to wait many months to know whether or not it returns to pre-pandemic levels, with or without tourists," indicates Beltrán.

Recovery of rental of premises

During the summer, the level of leasing of premises increased and has been maintained in September, although the pace of closures remains higher, led by large global brands and fashion which are now beginning to vacate many premises of high commercial and morphological quality. In contrast, it is national brands and non-fashion sectors that are leading new hires in areas such as foodservice, health, personal wellness and personalization.

Residential and office streets

For yet another month, Residential and Office streets recorded the worst results, although they grew by 10% in pedestrians and consumption compared to August, both maintain a very high contraction, which, in the case of Office Zones means 52% fewer pedestrians than in September 2019.

Index TrueBroker (iTB)

25% more than in August

The average for Madrid recovered 25 points compared to the previous month, both in terms of footfall and consumption. Within the Zona Centro Turística, there was a 25-point increase in consumption, led by the streets of Espoz y Mina and Cava Baja, which also saw a positive rebound in consumption of 12% and 59%, respectively, with respect to pre-Covid, although 70% of the streets in the Zona Centro Turística continue with negative consumption.

It is very representative that, while the Local Downtown Area has had a very good trajectory in consumption for 7 months (with a great rebound of 36% in September), the Tourist Downtown Area is still unstable and not so good. This phenomenon is clearly observed when the map is analyzed diagonally. Thus, Gran Vía-Callao, in the middle of the Local Center Zone, recorded a rebound in consumption of +54%, while a scant kilometer away, on Arenal Street (Tourist Zone), at its end closest to the Local Center Zone (Puerta del Sol), consumption fell to 13% compared to the 2019 figures and, just 130 meters away, at the lower end of Arenal, closest to the Tourist Center Zone (Plaza de Opera), consumption was 44% lower than pre-Covid, a drop in consumption of 65 points over one kilometer and an additional 31 points over 130 meters.

By streets, September saw a positive rebound in consumption in Gran Vía-Callao (+54%), followed by Goya (+20%), pedestrian Fuencarral (+18%) and Serrano (-2.5%), accompanied by Calle ZETa nº1, which had a positive rebound of 24%, the same as 30% of street witnesses in the Zona Centro Turística.