Retail and real estate have always had a symbiotic relationship. For major retailers, finding a location that taps into a target demographic and a commercial site that enables a brand’s deepest aspirations has always meant joining forces with real estate providers and property developers who can bring these goals to life, however, wide-scale disruption across the retail industry means that serious changes are afoot.
In March 2017, Bold Moves, a new PwC report that offers radical strategies for Australian retailers in an increasingly fragmented landscape, suggests that brands identify the worst-performing stores and shut down 25 percent of their network to invest resources in digital touchpoints. The report also recommends that flagship stores are converted to customer experience centres or showrooms that use omnichannel techniques to attract and retain customers. How will this impact the real estate sector?
Key actions landlords and property developers should take to thrive in the future:
Understand the trends disrupting the retail industry and anticipate future vacancies
Build good relationships with current and prospective clients
Be strategic about your mix of tenants