2017 Retail Market Check-Up
The Property Council’s 2017 retail breakfast series got underway on Thursday 9 February, with expert analysis on the developing trends and economic drivers bound to affect retail markets, locally, nationally and globally in the year ahead.
The annual Retail Market Check-Up Breakfast provides an opportunity for Urbis Directors, Ian Shimmin and Sue Say, to take the sector’s pulse and diagnose the strengths and weaknesses of the industry’s condition.
Ian spoke to the challenge of retail spending falling as a share of the average household budget. This declining share for retail has coincided with the growth in online retail spend, which now sits at over 10%.
While these challenges are significant for retail property owners, opportunities are being presented through a strong tourism sector, technological advances and robust performances from new international retailers.
Ian’s data illustrated that centres that have undergone redevelopment within the last five years are experiencing considerably greater productivity growth than those which have foregone a recent refresh.
Sue Say outlined the core drivers of recent consumer behaviour, highlighting the increased rate of change. The power, Sue explained, has shifted from retailers to consumers and it is now incumbent on asset owners to ensure generic offers are avoided.
Sue unpacked several key emerging trends that the industry will need to address in the coming year, including the ‘era of disenchantment’, choice overload and digital clutter. According to Sue’s research, accessibility and the ‘ease of experience’ for potential shoppers will be critical to retail success in 2017.
A question and answer session was moderated by new Property Council Queensland Retail Committee Chair, Vicinity Centre’s Regional General Manager Shopping Centre Qld, Daniel Sutton. When questioned on what is keeping CEOs up at night, both Ian and Sue agreed that the potential Amazon disruption was high on the list.
Ultimately, the pair agreed that there was no substitute for strong confidence and a strong economy to achieve retail growth in 2017.
The Property Council thanks Ian, Sue and Daniel for sharing their insights and Joint Sponsors Urbis and Yardi for their sponsorship of the annual Retail Market Check-Up.
Photos from the breakfast can be found here.
Sponsors:
