Pent-up demand from customers post-pandemic for immersive engagement and convenient in-store experiences has driven productivity at retail spaces, says report
New Delhi, NFAPost: According to a study conducted by real estate consultancy firm CBRE, transactions in the retail sector grew by a staggering 160 per cent year on year in the first half of Calendar year 2022 and more than 100% quarter on quarter in Q2 of CY2022, Business Standard reported.
Pent-up demand from customers post-pandemic for immersive engagement and convenient in-store experiences has increased the productivity of retail spaces, CBRE said in a press release issued on Thursday. ‘Experiential retail’ is currently counterbalancing the prevalence of ecommerce and has increased the brands’ physical presence, states a report by CBRE.
The ongoing exploration of innovative ideas by retailers will attract consumers’ attention and increase sales on online and offline stores, the report further stated. The retail sector witnessed more than a 500 per cent surge in project completions during H1CY2022.
Moreover, brands are revamping and resizing their physical store strategies across different cities to diversify their portfolios and expand their footprint as ‘in-house experience’ becomes an important borderline to bridge the retailer-consumer gap, it added.
Commenting on the impact of experiential factors on real estate in retail, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Physical retail locations must evolve into places where people want to go rather than have to go if they are to succeed in the future. Covid-19 has modified consumer priorities, (and) it is therefore imperative to deliberate on how real estate stakeholders can improve their spaces to enhance the experience quotient and subsequently value.”
Suggesting strategies to improve the consumers’ experience, the report mentioned the evolution of thematic design for an enhanced visual experience, considering the real estate as a service (REaaS) approach to deliver digital and physical services and place-making for converting malls to less transactional, more inclusive and adding more entertainment-focused tenants for gen-Z dominated catchment area.
QoQ growth in transaction activity in retail sector: >100% (Q2CY2022)
