REPORTS of the death of the physical store are exaggerated. In fact, retailers are increasingly seeing the store as a key part of the customer journey, according to global real estate advisor CBRE.
New research to be unveiled at MAPIC predicts continued demand for physical store space in a number of key retail markets over the next five years. “Vacancies are rising in some markets, but that’s only part of the picture,” said Natasha Patel, CBRE’s director of global retail research. “Some specific sectors are doing well.”
She pointed to health & beauty, and home & garden as growth categories, as well as the traditional core segments of grocery, fashion and footwear. In health & beauty alone, China is predicted to witness 8.1% growth, followed by Germany on 4.5%, Italy on 4.2%, the UK on 1.7%, the US on 1.6% and Spain on 1.1%.
Melina Cordero, head of CBRE global retail research, said consumers increasingly shop across channels. “We like to browse online, try in store and buy on our device,” she added. “Health & beauty brands like Sephora are innovating and incorporating technology, which plays well with millennials, but consumers still look to the store for knowledge and expertise.”
However, Cordero acknowledged that not all retailers are adapting to these changing trends quickly enough: “If they’re innovative and think outside the box, retailers can thrive. But that takes investment and not all retailers have the necessary capital.”
This and more in the MAPIC News Issue one : https://issuu.com/mipim/docs/mapic_2018_news_1