Contrary to popular perceptions, physical retail stores and elements of the property, building and constructionindustry which service them should hold up reasonably well over the internet age both in Australia and around the world as retailers embrace multi-channelling, a landmark study canvassing the opinions of 50 leading international retailers with a combined store network exceeding 32,000 stores indicates.
In its study, The Role of Real Estate in the Multi-Channel World, leading real estate services firm CBRE International says that despite concerns regarding future demand and provision of real estate for retail use, the immediate outlook for retail construction was not bad as store locations continued to play a significant role in multi-channel sales and distribution strategies.
CBRE says that in two years’ time, 72 per cent of retailers around the world say they will operate the same or greater number of stores in their domestic markets, while 60 per cent say they will need more shop space across their overall network.
“Our message to the retail and real-estate industry is don’t panic,” Peter Gold, head of cross border EMEA retail for CBRE. “Consumer-driven technology continues to advance and contrary to widely held assumptions multichannel retailing is actually complementing, not competing with, existing store networks. In reality, multichannel is encouraging shoppers to visit stores and is driving additional business to retailers – the overall retail pie is getting bigger and it is critical for retailers and landlords alike to embrace multichannel, understand that it does not have to be expensive, and secure a greater slice of the market.”
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