With the rise of e-commerce, COVID-19 and changing consumer behaviours, the retail industry has experienced a significant shift over the past few years. When combined with the recent interest rate hikes and the current state of the economy, there are several substantial hurdles for traditional brick-and-mortar retailers to overcome.
While these factors have posed challenges for traditional retailers, they have also created opportunities for collaboration and growth. Lucky for us, Australians have a reputation for their resilience and an overwhelming ability to come together when times are tough!
Now, more than ever, it’s important to look at the potential opportunities we have as an industry to overcome the challenges presented by this buoyant market – and with completely new situations, there’s a need for completely different solutions.
Let’s look at the positives…
The rise of e-commerce
While there has been a significant rise in online retail, there is also evidence that suggests that Australians have been displaying a renewed interest in traditional spaces. Consumers have been drawn back to physical stores since the pandemic. Not just for the convenience of product availability, but for the sheer enjoyment of the shopping experience.
The opportunity
The shift to the shopping experience provides great opportunity for retailers to stand out. Physical retailers now have the ability to leverage their bricks-and-mortar stores to provide engaging experiences that complement online shopping.
According to Mike Reid, Managing Director and Chief Creative Officer for DAE Global, “Shopping plays a huge role in everyone’s lives, but people’s expectations are also increasing so we feel the time is right to look for new ways to elevate the retail experience to build longer-term connections that can’t be replicated any other way.”
The retail industry is poised for growth and innovation. Retail is undergoing significant transformation and with emerging technologies like augmented reality, AI and personalised marketing, retailers and landlords have the opportunity to embrace these advancements to enhance customer experiences, optimise operations, and gain a competitive edge.
RPM Sydney event, 2022
Retail model disruptions
While e-commerce is projected to continue its growth trajectory through 2023, the e-commerce sector isn’t without its own set of challenges, with one key factor being the increase in product return rates. According to Invesp, the average return rate for e-commerce purchases is estimated to be around 30%, compared with 8.89% for brick-and-mortar stores.
The opportunity
According to KPMG, in-store sales before COVID were growing at 4.4% a year, and are now increasing by 9.7% annually so it’s by no means a one-horse race. There is significant interest beyond e-commerce retail. Customer service, convenience and memorable experiences are just some of the areas that both landlords and retailers should be focusing on to entice consumers to physical store locations.
The economy
While we can’t ignore the current state of the economy, 44% of Australians believe that it’s important to indulge or pamper themselves regularly, according to GfK consumer trend research. The spending rate is looking to improve towards the end of 2023, and it’s important for landlords and retailers to come together and prepare to come out even stronger on the other side.
The opportunity
Probably the most important opportunity of all is collaboration. Collaboration between retailers and landlords can foster resilience and drive economic recovery. KPMG’s Australian Retail Outlook 2023 emphasises the importance of strong partnerships between landlords and retailers to navigate the changing retail landscape successfully.
By leveraging each other’s strengths and expertise, retailers and landlords can adapt to consumer preferences, optimise space utilization, and create vibrant retail environments that attract customers.
Retail Property Marketplace
Retail Property Marketplace’s sole purpose is to create the best opportunity for retail and leisure operators to connect face-to-face with a host of landlords and property agents – to accelerate the acquisition of bricks and mortar stores, grow existing portfolios, showcase new developments and network with industry peers.
With a goal to unify the industry, the event has been designed, down to the finest detail, to speed up the business process. “The format of the show is unique and designed for optimum effectiveness,” said Tim Rusbridge, co-founder of event organiser connexU.
“Firstly, all the exhibition stands are the same size to enable a level playing field. Secondly, we are launching ‘Emerge’, which provides a stage for small or new brands to present their concept to a targeted audience of property professionals. We’ve also introduced a series of conference sessions where attendees can learn from industry heavyweights, as well as a retail clinic which offers one-on-one consultation time for brands looking to grow their retail business.
“Simply put… RPM is the place where exhibitors and visitors meet, network, learn, exchange market insight and requirements, set up deals, then leave in a better, more-connected position than before.”
Located at The Timber Yard, Melbourne, on the 21 June, Retail Property Marketplace (RPM) is a game changer for retailers who are looking to upsize, grow or consolidate their retail business, and with more than 140 shopping centres and hundreds of retail locations to view; it’s the most time and cost-effective way for retailers to meet with Australia’s leading property professionals.
Australia’s leading landlords and agents have signed up to attend and are already excited about showing their latest spaces. These will include shopping centres, central business district locations, retail strips and regional or local neighbourhood assets.
Retail Property Marketplace (RPM) is Australia’s only retail leasing event and is free to attend for all retailers. Registration is available here.
Want to exhibit? With limited spaces available, now is time to secure your position alongside our growing list of Australian Landlords and property professionals. Find out more here.
