Huge changes in the way we shop will result in the retail landscape transforming, with marketing value and social media reach to be taken into consideration when setting commercial rent prices in the future.
A new study conducted by CBRE looked at how the retail industry will evolve, with technological advancements accelerated by the pandemic resulting in physical and digital platforms converging – also known as ‘phygital’.
With the current severity of the pandemic in the APAC region paling in comparison to the rest of the world, stores in Australia could lead the retail revolution.
Tim Starling, CBRE Head of Retail Tenant Advisory for Australia & New Zealand, said: “With many parts of the globe seeing second waves of COVID-19, the Pacific region represents a relatively stable retail environment.”
“Our APAC Retail Flash survey, which was conducted in October, highlights that there is a more upbeat sentiment towards opening new stores in the next 12 months, with close to 50 per cent of respondents expecting to proceed with store opening and expansion plans.”
CBRE Global Head of Investor Thought Leadership, Henry Chin, said that commercial landlords will have to rethink their marketing strategies as consumers will conduct even more research ahead of making shopping centre visits.
Landlords will need to be quick and adaptive to stay successful, as the retail space evolves over the next decade and new technologies are adopted.CBRE Global Head of Investor Thought Leadership – Henry Chin
“This will require store designs to be overhauled to engage and serve the demands of the next generation of shoppers,” said Mr Chin.
The growth in online retail has led to an increase in shopfloor space being dedicated to click and collect counters and similar services.
And the enhancement of the in-store shopping experience is expected to continue as retailers cater to consumer demand for convenience and cost-effective shopping solutions by embracing the improvements to technology.