Traditional shopping will survive the onslaught of e-commerce, but only with the help of technology, says Yardi’s vice president of sales Neal Gemassmer.
Amazon’s entry Down Under may have landed with a whimper, rather than a bang, but the trendline is pointing in one direction.
Roy Morgan’s March 2018 survey found that 9.46 million Australians – or 46.8 per cent of us – purchased something online in the previous four weeks. That’s an increase of 590,000 in just 12 months, and a 2.3 million increase since 2014.
As Australians turn to online shopping, many bricks-and-mortar stores have shut up shop, with Toys ‘R’ Us, Gap, Esprit and selected Target stores the casualties this year alone.
While the retail sector shakeout is leaving shuttered storefronts in its wake, to lay this upheaval exclusively at the doorstep of e-commerce is to ignore the new dynamics of a market that is redefining itself, Gemassmer suggests.
“A closer look at the market suggests that spaces are being vacated by formats that have failed to adapt to the new shopping environment by attracting customers through a robust combination of web and brick-and-mortar experience.
“Digital technologies, often blamed for the brick-and-mortar shakeout, can be a powerful tool to maintain asset stability,” he explains.
Gemassmer says successful retail owners are embracing new concepts in shopping and filling in empty spaces with more flexible leases to attract temporary users.
“Leasing is one area where software applications provide unprecedented efficiency that can shorten time to market, helping retailers and landlords stay competitive. As retail evolves, these open-ended systems will evolve with them.”
While traditional leases can take months to complete, today’s new applications can expedite the process for both short- and long-term deals.
“Today’s systems can provide a holistic view of prospects and customers, while giving potential tenants a virtual tour of available space. Landlords can access all customer relationship management data from within Outlook, saving time and boosting efficiency.”
Software-based leasing modules offer applications that are designed to streamline the leasing process for temporary and long-term and retail tenants, as well as operators.
“Yardi is developing retail-focused products that enable the user to enter a new tenant prospect in less than 30 seconds,” Gemassmer explains.
“Potential tenants can view space options in Gantt Chart form, along with availabilities and choices for daily, weekly or monthly leases. The transaction provides landlord and tenant with a signed contract in less than two minutes.”
Even as some traditional brands downsize or disappear, new concepts are emerging to backfill space and meet customer demand.
“Creative landlords are turning vacant locations into opportunities, using emerging formats and innovative technology to keep assets financially stable, attractive to visitors and relevant,” Gemassmer concludes.
Established in 1984, Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Learn more: www.yardi.com.au