Retailers need to focus on offering unique experience to consumers: CBRE
24 August 2022, Mumbai
A new report by property consultant CBRE South Asia says shopping malls and other physical retail locations must focus on providing a unique experience to customers for success.
Titled, ‘The Retail Perspective on Experience and its Impact on Real Estate’–the report highlights the growing footfalls across Indian retail and recreational spaces as the COVID pandemic ebbs.
Even before the pandemic, the report mentioned that the experience was a critical factor in deciding how retail spaces were designed.
As a result, the consultant said that experiential retail is currently counterbalancing the prevalence of e-commerce.
Across cities, brands are resizing and recalibrating their physical store strategies to diversify their portfolio and expand their footprint, with 'experience' fast becoming an important frontier to bridge the retailer-consumer gap.
Retail transactions grew over 100 percent on a quarter-on-quarter basis in Q2 (April-June) 2022,.In H1 (January-June) 2022, transactions grew by over 160 percent year on year. This growth resulted from pent-up demand causing a renewal in physical retail visits even as online shopping continued to perform strongly.
Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, says, real estate stakeholders, need to improve their spaces to enhance the experience quotient and subsequently value.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, adds, that players in the retail space need to improve physical experiences.
CBRE has suggested a multi-pronged approach, including diversification of store formats and functions, leveraging data science to develop customized location strategies based on the catchment, repurposing existing stores, creating a personalized experience, and developing fruitful partnerships.
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