European shopping centers are experiencing a surprising resurgence, defying predictions of decline in the face of e-commerce. Klépierre, a major player in the European retail real estate market, reported strong performance in 2025, building on positive trends from the previous two years. This positive momentum, coupled with similar gains reported by competitor Unibail Rodamco Westfield, suggests a broader revitalization of brick-and-mortar retail across the continent. The shift marks a significant turnaround from the challenges posed by the COVID-19 pandemic, which initially threatened the viability of physical stores.
Jean-Marc Jestin, Chairman of Klépierre’s executive board, described 2025 as a “exceptionally good year,” albeit slightly less robust than 2023 and 2024. He emphasized that the past three years – 2023, 2024, and 2025 – represent “historical” periods for shopping centers, with growth levels not seen in fifteen to twenty years. “We have the wind in our sails,” Jestin stated, signaling confidence in the company’s current trajectory. This positive outlook is fueled by increased foot traffic and rising sales within Klépierre’s portfolio of properties.
The Impact of the Pandemic and the Rise of Physical Retail
The recovery of physical retail is particularly notable given the disruption caused by the COVID-19 pandemic. As reported by Les Echos, the pandemic fundamentally altered the landscape of commerce, accelerating the shift towards online shopping. However, the recent data suggests a strong rebound for brick-and-mortar establishments, indicating that consumers still value the in-person shopping experience. This resilience is likely due to a combination of factors, including pent-up demand following lockdowns and a renewed desire for social interaction.
Klépierre’s Strategy and Focus on Europe
Klépierre’s success is rooted in its strategic focus on the European market. In 2018, the company’s chairman, Jean-Marc Jestin, articulated a clear preference for concentrating on Europe, stating that expanding outside of the region did not appear to create value for shareholders. He noted that the majority of Klépierre’s clients are European retailers with limited global reach. This strategy contrasts with Unibail-Rodamco’s $16 billion acquisition of Westfield Corp in the same year, which provided the company with significant exposure to the U.S. Market. According to Yahoo Finance, the Westfield deal was intended to help Unibail-Rodamco counter the growing challenge from online retailers like Amazon.
Jestin believes that Klépierre benefits from stronger synergies within its European portfolio. “You have even fewer synergies when you are in territories which are distant than those that are close,” he explained. The company has also benefited from improving consumer confidence in Europe, which has driven increased sales and leasing activity at its malls. In 2017, Klépierre reported net current cash flow per share of 2.48 euros, up 7.4 percent year-on-year.
Strong Leasing Activity and Economic Factors
Intense leasing activity has been a key driver of Klépierre’s success. In 2017, the company signed 1,864 leases, an 8 percent increase compared to the previous year. This demonstrates strong demand from retailers for space in Klépierre’s shopping centers. The positive trend is supported by a growing Eurozone economy and decreasing unemployment rates across Europe, which are boosting consumer spending. Klépierre anticipates cash flow of 2.57–2.62 euros per share in 2018, representing potential growth of up to 5 percent.
Jean-Marc Jestin’s Extensive Experience
Jean-Marc Jestin’s leadership is central to Klépierre’s strategy. According to Marketscreener, Jestin currently serves as Chief Executive Officer at Klépierre SA and Chairman at Steen & Strøm AS, a Klépierre subsidiary. His extensive experience in the retail real estate sector includes previous roles at Immobilière Lidice, Alba SARL, and Unibail-Rodamco-Westfield SE, demonstrating a long-standing commitment to the industry.
Jestin’s career spans numerous leadership positions across various shopping mall ventures, including roles as Managing Partner at several Polish and Czech shopping malls. He also held positions at Unibail Rodamco Sif Services and SAS Immobilière Chateau Garnier, further solidifying his expertise in the European retail landscape.
Looking ahead, Klépierre is well-positioned to capitalize on the continued recovery of the European retail market. The company’s focus on its core European market, combined with strong leasing activity and improving economic conditions, suggests that the positive momentum will continue. Investors and industry observers will be closely watching Klépierre’s performance in the coming months to see if the current trends persist. The next key update will likely come with the release of Klépierre’s full-year 2025 financial results, providing a more detailed assessment of the company’s performance and outlook.
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