Pierre-Mary Bachelet is the president and CEO of Bachelet Holdings, a company that specializes in commercial real estate in France. This article will look at the evolution of commercial property, highlighting the need for market players to move with the times and shifts in consumer behavior.
In the 1980s, more than half of all retail sales occurred in shopping malls. Over the years, shopping centers have become a symbol of modern consumerism and the go-to choice for people living in urban and suburban communities. However, times are changing.
The COVID-19 pandemic fueled a surge in consumer appetite for online shopping. Nevertheless, despite the rising popularity of ecommerce channels, even during the COVID-19 pandemic, ecommerce sales represented just 14% of total retail sales, according to research from Deloitte.
Deloitte’s findings highlight the importance of retailers integrating store-level inventory as part of their digital supply chains, with the lion’s share of retail shopping continuing to occur instore. However, today’s shopping centers face mounting pressure to reinvent themselves in order to stay relevant in a post-pandemic world.
Deloitte’s report suggests that adopting a holistic vision will be of great importance. Providing physical space for shoppers to purchase goods will no longer be enough for retailers, forcing businesses to engage with consumers and provide them with richer experiences that foster a sense of community.
Meanwhile, research from the consulting firm Kearney indicates that shopping centers are evolving into Consumer Engagement Spaces, presenting shoppers with the opportunity to access compelling social experiences relating directly to their specific wants and needs. Examples include Dubai’s Mall of the Emirates; Xanadu in Spain; and The American Dream Centers, which are currently under construction in Miami and New Jersey.
Kearney’s research suggests that popular destination centers will incorporate a host of attractions, such as museums providing immersive entertainment, roller coasters, indoor ski slopes, and concert spaces.
Experts predict that while physical stores and shopping centers will continue to be a fundamental pillar of the modern retail sector, retail businesses will need to up the ante in order to stand out in the future. Retailers are preparing by enhancing customer experiences and investing in online platforms, as well as strengthening their instore experiences as shopping centers continue to evolve.
Retail store owners are pivoting, presenting unified omnichannel experiences with inventory available both online and instore, enabling modern businesses to meet customers where they are.
