According to a study by real estate consultancy CBRE, transactions in the retail sector increased 160% year-on-year in the first half of calendar year 2022 and more than 100% quarter-on-quarter in the second quarter of calendar year 2022.
Pent-up post-pandemic customer demand for immersive engagement and hands-on in-store experiences has increased the productivity of retail spaces, CBRE said in a press release on Thursday. “Experiential retail” is currently offsetting the prevalence of e-commerce and has increased the physical presence of brands, a CBRE report says.
Continued exploration of innovative ideas by retailers will attract consumers’ attention and increase sales in both online and offline stores, the report further states. The retail sector saw an increase of more than 500% in project completions during the first half of 2022.
Additionally, brands are revamping and scaling their brick-and-mortar store strategies in different cities to diversify their portfolios and expand their footprint as “in-house experience” becomes an important frontier in bridging the retailer-consumer divide, he said. added.
Commenting on the impact of experiential factors on retail real estate, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said: “Physical outlets need to evolve towards places where people want to go rather than go there if they want to succeed in the future. Covid-19 has changed consumer priorities, (and) therefore it is imperative to think about how real estate players can improve their spaces to increase the experience quotient and therefore the value.
Suggesting strategies to improve the consumer experience, the report mentions the evolution of thematic design for an enhanced visual experience, considering the real estate as a service (REaaS) approach to delivering digital and physical services. and the creation of places to convert shopping centers into less transactional centres. , more inclusive and adding more entertainment-focused tenants for the Gen Z-dominated catchment area.
| Quarterly growth in transaction activity in the retail sector: > 100% (Q2CY2022) | |
| Year-over-year growth in transactional activity in the retail sector: > 160% (H1CY2022) | |
| Retail location strategy for 2022: | |
| Shopping centers in city centers | 52% |
| Prime shopping streets | 48% |
| Community malls and decentralized neighborhoods | 36% |
| Secondary main streets | 23% |
| Electrical outlets | 22% |
| Transit hubs | 19% |
