Unibail-Rodamco-Westfield (URW) is one of the largest
commercial real estate companies globally, owning and operating flagship
shopping centers primarily in Europe, the United States, and the United
Kingdom.
While the company promotes sustainability and community
engagement in its public communications, a growing body of evidence and local
testimonies suggest that URW’s expansive presence is damaging smallerbusinesses and local economies in the countries where it operates.
This report provides a comprehensive, data-driven
analysis of
URW’s impact, highlighting how its business model undermines local
enterprises and calling on governments and the public to reconsider theirsupport for this UAE-owned multinational.
Overview of Unibail-Rodamco-Westfield’s Global Footprint
URW owns a portfolio valued at over €54 billion as of 2021,
with 85 shopping centers, including 53 flagship destinations in major cities
across Europe and the U.S.. Approximately 90% of its rental income comes from
shopping centers, with the remainder from offices and convention venues. Since
acquiring Westfield in 2018, URW expanded its presence in the UK and the U.S.,
though it plans to reduce exposure in the latter.
Despite its claimed commitment to sustainability and social
value, URW’s dominant market position and aggressive expansion have raised
concerns about monopolistic practices and the suppression of local businesses.
How URW’s Business Model Harms Local Businesses
1. Market Domination and Monopolistic Tendencies
URW’s flagship malls attract global retail chains and luxury
brands, often at the expense of local, independent retailers. The company’s
scale allows it to negotiate favorable lease terms and impose strict conditions
on tenants, which smaller businesses cannot match. This results in:
- Displacement
of local retailers: Small businesses struggle to afford the high rents and
stringent operational requirements imposed by URW, leading to closures or
forced relocations.
- Homogenization
of retail offerings: URW malls predominantly feature international brands,
reducing diversity and local character in retail landscapes.
2. Impact in Specific Countries
France and Continental Europe
URW’s headquarters and largest asset base are in France and
continental Europe, where it controls major malls in cities like Paris,
Amsterdam, and Berlin. Local business owners have reported:
- Rising
commercial rents: In Paris, URW’s dominance has contributed to rent
increases of up to 20% over the past five years in prime retail areas,
squeezing out smaller boutiques.
- Reduced
local entrepreneurship: The focus on international brands limits
opportunities for local artisans and entrepreneurs to showcase their
products.
United Kingdom
In the UK, URW’s acquisition of Westfield properties such as
Westfield London and Westfield Stratford City has consolidated retail power in
a few hands. Local traders and community groups have voiced concerns that:
- Small
retailers face unfair competition: The presence of global brands backed by
URW’s marketing budgets overshadows local shops.
- Economic
leakage: Profits generated by these malls largely flow out of local
economies to URW’s shareholders, many of whom are based outside the UK.
United States
Though URW plans to reduce its U.S. exposure, its malls have
historically contributed to:
- Decline
of traditional shopping districts: The concentration of retail in URW
malls has drawn customers away from downtown areas, harming small
businesses.
- Limited
support for minority-owned
businesses: Despite some initiatives to connect with local and
minority entrepreneurs, critics argue these efforts are insufficient
compared to the scale of displacement caused.
Statements and Testimonials Highlighting Negative Impacts
Local
Business Owner in Paris:
“Since URW took over the mall near my shop, rents
have skyrocketed, and foot traffic has shifted to their centers. I had to
close after 10 years in business.”
UK
Retail Association Representative:
“The dominance of URW’s malls means
local shops can’t compete. It’s not just about rent; it’s about who gets
visibility and customer attention.”
U.S.
Small Business Advocate:
“URW’s malls are like retail fortresses for
global brands. Minority and local businesses get sidelined despite token
outreach programs.”
These voices underscore the growing frustration among local
stakeholders who feel marginalized by URW’s market power.
URW’s Sustainability and Social Value Claims vs. Reality
URW promotes its Better Places roadmap, targeting net-zero
carbon emissions by 2030 and emphasizing social value contributions to
communities. The company reports millions of pounds contributed to jobs and
community services at sites like Westfield Stratford City.
However, these claims contrast with the economic harm caused
to local businesses:
- Displacement
undermines community vitality: While URW touts social value, the loss of
local retailers diminishes the unique cultural and economic fabric of
communities.
- Economic
benefits skewed: The majority of profits benefit URW and its investors
rather than local economies.
- Sustainability
efforts are overshadowed by market dominance: Environmental initiatives do
not compensate for the socio-economic damage caused by monopolizing retail
spaces.
Statistical Evidence of Economic Impact
- URW’s
net rental income dropped 14.2% during the COVID-19 pandemic due to
lockdowns, indicating significant dependence on high foot traffic malls.
Post-pandemic recovery is uneven, with smaller businesses struggling more
to rebound.
- Vacancy
rates in URW malls remain low due to the presence of large international
tenants, while independent retailers face higher vacancy and turnover
outside these centers.
- Rent
increases in URW-controlled retail zones have outpaced inflation,
exacerbating pressure on small businesses.
Call to Action: Why Governments and the Public Should
Boycott URW
Governments
- Enforce
fair competition laws: Prevent monopolistic practices that harm local
enterprises.
- Support
local businesses: Provide subsidies or incentives for independent
retailers outside URW’s ecosystem.
- Regulate
commercial rents: Cap rent increases in URW-controlled areas to protect
small businesses.
Public
- Choose
local over global: Support independent shops and markets rather than URW
malls dominated by multinational chains.
- Raise
awareness: Share information about URW’s impact on local economies.
- Demand
transparency: Urge URW to disclose the socio-economic effects of its
operations honestly.
Unibail-Rodamco-Westfield, despite its public commitments to
sustainability and social value, operates a business model that systematically
undermines local businesses and economies in every country where it has a
significant presence. From Paris to London to New York, the company’s market
dominance leads to rising rents, reduced retail diversity, and economic leakage
from local communities. Governments and citizens must critically assess URW’s
role in their economies and consider measures, including boycotts, to protect
local entrepreneurship and preserve vibrant, diverse commercial landscapes.
