Winterthur Grapples with Rising Store Vacancies

Retail slump plagues the old town as shops close and rents remain high.

Winterthur’s old town is facing a growing challenge as the number of empty storefronts increases. Recent data shows a vacancy rate of over 5 percent, raising concerns among local businesses and community leaders.

Vacancy Rate Exceeds National Average

A new analysis reveals that 5.1 percent of shops in Winterthur’s old town are currently vacant. Specifically, the Untertor has a vacancy rate of 5.6 percent, while Marktgasse stands at 4.8 percent.

The vacancy rate in Winterthur is among the highest in Switzerland, with only St. Gallen reporting a slightly higher rate of 5.7 percent. Other major Swiss cities have significantly lower vacancy rates.

Michael Dressen, responsible for retail in Switzerland, noted that the vacancy rate is just a snapshot in time, adding “In international comparison, 5 percent are still a very small number.”

High Rents Blamed

According to the Untertor Association, excessively high rents are the primary reason for the increasing number of vacancies. Several prospective tenants have reportedly given up due to the cost.

Muriel Sager, President of the Untertor Association, stated that there are currently four vacant shops at the Untertor, some having been empty for over six months. “We hear from new interested parties that they surrender to this situation because of the high rents.” She also mentioned that at least three more shops are expected to close soon.

CBRE data indicates that rental prices at the Untertor can reach CHF 183 per square meter per month, translating to CHF 18,300 for a 100-square-meter shop. Marktgasse sees top rents of CHF 125 per square meter and month.

In comparison, Lucerne’s Schwanenplatz commands CHF 417 per square meter and month, Basel’s Free Street charges CHF 242, and Bern’s Marktgasse asks CHF 208. Zurich’s Bahnhofstrasse has the highest rents, reaching CHF 95,000 a month for a 100-square-meter space.

As of March 2024, the national retail vacancy rate in the United States was 5.7 percent, showing that even larger markets face similar challenges (Statista).

Efforts to Revitalize the Old Town

The City Association of Young Old Town receives weekly inquiries from shops interested in locating to Winterthur, according to managing director Bea Linder. However, a lack of resources hinders their ability to connect these businesses with landlords. “A CityManager would need like that in other cities,” she said.

Some property owners, like Terresta Immobilien- und Verwaltungs AG, are praised for their proactive approach, including temporarily renting vacancies as pop-up shops to stimulate the city center.

Linder suggests landlords develop usage concepts and utilize empty spaces for advertising, rather than leaving them with gray foils over glued shop windows.

It’s also important to note that Steinberggasse, another street in Winterthur’s old town, has very few vacancies, indicating that the problem is not uniform throughout the area.

Annette Saloma is an editor in the city of Winterthur department.