09-07-2025
French government announces new measures to boost city-centre retail
Commercial vacancy rates have risen from 7% to 11% in French city centres in 10 years, according to the CODATA research institute, and from 6% to 14% in shopping streets since 2010, according to figures presented by the Ministry of the Interior, leading the French government to introduce new measures. On July 8, at the Ministry of the Economy and Finance in Paris, Minister of Trade Véronique Louwagie presented a package of measures to businesses, local authorities, embassy envoys, and other attendees of the 'Transformation of city-centre stores' event. Louwagie also announced the opening of a round of consultations on the Commercial City Charter.
The French government has introduced a package of measures designed to bring new impetus to city-centre retail - Shutterstock
In terms of policies, Louwagie said that the government wants to act in favour of city-centre retail, explaining that retail in rural and suburban areas has benefited from ad hoc support in recent years. 'Local retailers play a key role in the heart of our city and town centres, as drivers of the local economy and elements of community cohesion,' Louwagie said in a statement. '[Local retail] is facing major challenges, first and foremost commercial vacancy rates, which contribute to devitalise local areas. Public authorities, retail associations and chambers of commerce all need to act together to address these challenges. Our collective intention is clear: To revive our city centres while building the retail of tomorrow,' she added.
What does the government intend to do, with local government elections looming in 2026? No investment figures were put forward, but the plan hinges on four elements. The funding or co-funding by local chambers of commerce of retail manager positions; the setting up of a working group within the National Trade Council (CNC) focusing on city-centre retail and vacancy rates from the autumn; as a trial, vacant premises will be made temporarily available locally this year to local producers and artisans during the 'month of buying French'; finally, work will start on the simplification and rationalisation of the taxes on unutilised commercial sites. The latter measure should make it possible to reduce vacancy rates. In addition, the government will work on measures for facilitating the handover and acquisition of businesses, and for encouraging retailers to tap the opportunities afforded by AI. The latter is a significant challenge, as most retailers in France haven't yet gone digital.
With regards to the Commercial City Charter, its scope is seemingly set to be defined by the consultation that the government is initiating with the various stakeholders in city-centre retail. The government indicated that 'this charter is based on the mainstays of commercial growth: Accessibility, sustainability, commercial activation, security, visibility, jobs and training, urban planning and local trade governance. For each of these elements, the municipalities that will become charter signatories will be able to set reciprocal commitments with local trade associations in order to work toward a framework conducive to local economic development.' For France's future mayors and the retailers in their towns, this will be akin to a commitment to using a common language to better understand each other.
