Transforming Real Estate
future of brick and mortar retail
future of brick and mortar retail
future of brick and mortar retail
future of brick and mortar retail
Physical retail was undoubtedly hit hard amid the pandemic in 2020 as customers limited their shopping to mostly essential items, and the e-commerce industry gained momentum.
Despite many challenges, we now are seeing many retailers reposition themselves for significant expansion, later this year. As consumer confidence returns, surviving retailers with strong positions, and new brands will reap ample opportunities to capitalize on pent-up demand.
future of brick and mortar retail
Whether expanding, contracting or reconfiguring an existing footprint, retailers will use data as an important key in decision making. Today’s data goes far beyond compiling population stats, consumer spending and traffic counts. New technologies such as massive mobile data and geofencing are constantly evolving, allowing retailers to be even more precise in making data-based decisions.
future of brick and mortar retail
There is no question that the traditional retail footprint is changing. A trend away from mall shopping has existed for years, with some malls closing down and others adapting for alternatives entirely, often the last-mile or fulfilment centres already cited. While some malls might not survive, it’s clear that many malls have a path to success, albeit potentially not as traditional malls. Instead of asking ‘what else a mall can be,’ the question we should be asking is ‘what else can the former anchor space be?’
As retailers look to expand, dynamic mixed-use properties could be the most desirable locations. Smart landlords are already repositioning properties to incorporate other uses into malls that can help drive traffic and daytime population beneficial to existing retail tenants. Medical is a key example of this reuse in recent years, as anything from outpatient centres to chiropractic practices have helped backfill space in well-located retail centres.