Five trends on WA’s retail radar
Has the tide turned for bricks-and-mortar retail? November was the biggest month in Australian online shopping history, with purchases up 55.6% year on year. The following month, Australia Post delivered a record 52 million parcels.
While health restrictions around the country led to a surge in online retail, Western Australia is bucking the trend. WA’s retail spending – including at bricks-and-mortar stores – was up by more than 16% in the year to November 2020, outperforming all other states.
Bricks and mortar is far from dead, but in 2021 it will be different. As we gear up for the Property Council’s Retail Outlook brunch on 5 March, we are keeping a close eye on five unfolding trends.
1. Experience is everything
The pandemic may have provided the perfect storm for online retailers, but just 15% of consumers were happy with their online shopping experiences in 2020, according to Contentsquare’s recent survey. The opportunity for bricks-and-mortar retail is obvious, and shopping centre owners are reporting a renewed enthusiasm for in-person experiences. Retail environments that create a unique and personalised physical shopping experience are set to stand above the crowded e-commerce space.
2. Not all pandemic pivots will be permanent
From kerbside pickups to dark stores to virtual dressing rooms, retailers redefined the purpose of the store in 2020. This year, retailers will spend more time focused on innovations like augmented reality to test cosmetics, automated checkout technology and group video shopping. Place your bets on which innovations will stick.
3. Technology will be transformational
Consumer analytics, in store automation and contactless payments are the technologies to watch in 2021. Around 71 per cent of occupiers surveyed by CBRE in October ranked in-store automation among the technologies they expect to have the biggest impact on the retail sector.
4. Flexibility first
Gone are the days of the static store. As customers expect more in-store experiences, from cooking lessons to cocktail parties, physical retail must be flexible. With less stock on show, together more agile supply chains and back-end processes, more space can be set aside to wow the customer.
5. A new deal for retail
The impact of COVID-19 on the vibrancy of Perth’s CBD are still being felt. Office occupancy sat at 77% in December, down from 82% pre-pandemic, forcing city retailers to reinvent their businesses to survive. Retail will play a central role in breathing life back into Perth’s CBD post pandemic, and the Perth City Deal could be the biggest boost for business. However, the most immediate impact on retail will be found in the renewed city leadership that has rolled out three hours of free parking on weekends, delivered a dynamic calendar of events and offered grants so small businesses in the city can pivot.
No one has a crystal ball, but the Property Council does have the next best thing.
On 5 March, one of Australia’s most respected economists, Shane Oliver, will headline our Retail Outlook brunch. With a major role plotting AMP Capital’s $16 billion investment path, Shane will unpack the drivers and disruptors impacting retail markets locally, nationally and globally. Shane will be joined by a panel of experts, including Lease Equity’s Jim Tsagalis, Kate Holsgrove from Perth Airport, Andrew Byars from Perron Group and PrimeWest’s Bruce McCully.
Gain insights for positioning assets and strategies to capitalise on emerging trends and insights into the innovations on the horizon. Book your ticket today.