Technological, demographic and society shifts are all shaping retail and in turn the nature of retail destinations
Over the last 50 years the creation of destinations have tended to be anchored on retail. Yet, the growth in e-commerce, diverging generational consumer demands, increasing urbanisation and expanding global travel are all shaping occupational demand and in turn how retail destinations need to evolve to remain current and appealing.
The specifics of location, size, mix, design and ownership of retail assets will determine the scale of challenges and opportunities presented by these structural shifts. However, for landlords and investors it will fundamentally mean a greater need for investment into assets in order to maintain values rather than to solely drive returns.
A key aspect of this investment will likely require a move to a more service orientated offer, similar to the co-working model. A flexible, service focused offer will have obvious appeal to occupiers, but so too for landlords as it has the potential to enhance revenues through additional income streams while also helping to keep the offer fresh and varied, all the more important when meeting the demands of younger consumers. Albeit this approach will require closer attention to margins. Other opportunities include the intensification of uses and repurposing of excess retail space to alternative uses, ultimately to the benefit of the retail that remains.
These are all themes we explore in more detail in this report with a particular reference to what it could mean for landlords and investors.
Read the articles within Spotlight: The Evolution of Retail Destinations below.