Retail Crisis in Hauts-de-France: Solutions for Rent & City Centers
Across France, concerns are rising about the health of the nation’s small businesses. Empty storefronts and shuttered shops are becoming increasingly visible in communities, prompting a search for solutions. In the Hauts-de-France region, authorities are focusing on addressing commercial rents and revitalizing city centers to support local commerce.
A Shifting Landscape for French Retail
The Hauts-de-France region is a significant economic hub, supporting 445,000 jobs and 99,000 businesses – ranging from jewelers and clothing boutiques to restaurants, garages, and grocery stores. While the region saw a net increase of 44,000 jobs in the commerce sector between 2014 and 2024, recent months have witnessed hundreds of job losses, raising questions about a potential downturn.
This recent slowdown follows a period of growth at the end of the 2010s, fueled by career changes and a surge in consumer spending following the COVID-19 pandemic. As Annabelle Cozette, president of the CCI régionale’s commerce commission, notes, “In some areas, we were closed for 6 months in a year. The customer needed to rediscover that human contact, which meant we had to hire to meet customer expectations.”
The Rise of E-Commerce and Changing Consumer Habits
The competitive landscape has been reshaped by the growth of e-commerce, including Chinese platforms and the secondhand market. Philippe Guilbert, president Nord of the chamber of trades and crafts of Hauts-de-France and founder of the “Gourmandine” pastry shop in Valenciennes, reflects on this evolution, stating, “I’ve been in the business for 45 years, and in the 1980s, the bogeyman was the hypermarket. Since then, I’ve known how to transform, do things differently, and the business still exists and has even grown.”
Addressing High Rents and Revitalizing City Centers
The apparel sector has been particularly affected by closures in city centers, squeezed between online competition and soaring commercial rents driven by real estate speculation. The CCI has responded by creating a commercial real estate company that purchases properties and then re-leases them at 20% below market price.
Efforts to attract customers back to city centers are also underway. Annabelle Cozette emphasizes the importance of ensuring a steady flow of foot traffic, noting that pedestrianizing areas, like the Grand-Place in Lille since early January, can be effective. She points to Amiens, which pedestrianized its city centre 35 years ago, as a successful example, with a vacancy rate of less than 5% and a significant influx of customers. However, she stresses the need for a robust transportation network, including easily identifiable park-and-ride facilities and free weekend transportation.
Frequently Asked Questions
What is the current state of commerce in the Hauts-de-France region?
The region supports 445,000 jobs and 99,000 businesses, but has recently seen hundreds of job losses after a period of growth between 2014 and 2024.
What steps are being taken to address the challenges faced by businesses?
The CCI has created a commercial real estate company to offer lower rents and is advocating for pedestrianization of city centers to increase foot traffic.
What factors are contributing to the difficulties faced by small businesses?
Increased competition from e-commerce platforms and rising commercial rents due to real estate speculation are key challenges.
As cities and regions continue to grapple with the changing retail landscape, will strategies focused on affordability and accessibility be enough to ensure the survival of small businesses?