Major retailers to increase their shop networks as they embrace multichannel – CBRE
The future of retail involves bricks and mortar as well as online sales, says CBRE. Multichannel retailing – where retailers use a variety of ways to do business with consumers, including in-store, online via computer and mobile apps – is set to complement physical stores, not to compete with them, according to a new study by the firm, launched this week at the World Retail Congress in London, which has surveyed 50 leading international retailers with a combined store network of more than 32,000 outlets around the world.
There have been some concerns about the future demand for and provision of retail property as international retailers embrace the multichannel approach, but CBRE’s message is: Don’t Panic! Peter Gold, head of cross-border retail EMEA at CBRE, says consumer-driven technology is actually complementing, not competing with existing store networks.
The retailers surveyed say the rise of online retailing is set to drive increased traffic to stores. Their top priority for the next two years is investment in new and existing stores: most of them want to increase the number of their outlets and add to their shop space because of their multichannel strategy.
While 70% of the retailers currently see themselves primarily as bricks-and-mortar retailers, in two years’ time 63% will have become fully integrated multichannel businesses, according to the survey. Online sales represent just 5% of total sales for these retailers on average at the moment, but in two years’ time they estimate this figure will nearly double. Stores are forecast to become a significant part of retailers’ delivery networks, with customers expected to place equal preference on picking up goods from stores and having them delivered to their homes and offices.
“In reality, multichannel is encouraging shoppers to visit stores and is driving additional business to retailers – the overall retail pie is getting bigger,” says Peter Gold. He feels it is vital that retailers and landlords alike embrace multichannel, understand that it does not have to be expensive, and secure a greater slice of the market. “Shopping will continue to be a social experience – store portfolios are not about to shrink,” he adds.
