Emerging Trends in Retail Spaces

01

Challenges in Retail Spaces02

“To cut down the occupancy cost, something has to be done with electricity cost. There should be more effective use of open spaces” –

The challenge lies in finding retailers with right productivity mix – who can be a part of the success story of modern retail environment.  Unless this productivity increases they cannot match with high cost of real estate.

Small retailers are leveraging the ecommerce market place as sometimes the omni- channel model doesn’t justify the cost for them.

Shubhranshu Pani, JLL

What type of environment can help pull in customers?

03“As far as design part is concerned, a mall space has to be segregated innovatively. Create zones wherein the brands get effective visibility” –

Ramesh Sanka, DLF Gurgaon

 

Revenue sharing model is one way by which real estate developers can to some extent lighten the burden of retailers

  • Right Infrastructure and accessibility
  • Design a mall such that all requirements  of a user are fulfilled under one roof at a time

Besides shopping facilities foods and entertainment is very important. 15-20% of space should be dedicated to food, whereas internationally it’s 25%, and 20-25% should be given for entertainment.

What makes a good retail space? How does that definition change across emerging markets?

04“Many categories don’t find space in malls – because they are not enough of them (at a category level) to sustain the market price for that category. There’s a lack in depth of categories. Unless this problem is solved, retail spaces will continue to be expensive ” –

Vivek Kaul, CBRE

The revenue sharing model creates a trust and transparency between a retailer and real estate developer. Malls nowadays are built keeping in mind the primary purpose of pulling in customers. It’s not just a mere retail space. Mall developers have realized that there’s a need for creating such environment

05Cost of Real Estate

“5-20% is par – for real estate cost – for all retailers in the country”

Amitabh Taneja, IMAGES Group

Retailing is spreading to new spaces – emerging cities, emerging suburbs / townships in cities, and to rural / semi rural areas.

 

What makes a good Brick and Mortar retail mall and how retailers can create sustainable communities in the suburbs where they are present?

06“Market research is very important which provides insights in to catchment, market demography, etc to create the right environment” –

Rohit George, Xander Advisors India

Tourism attraction can be developed around shopping festivals with local flavors

Adding an e-commerce platform in a mall will have an extra edge with stores and distribution centers made available on the platform

The following two tabs change content below.
RAI
Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI is a not for profit organization (registered under section 25 of Companies Act, 1956), works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. RAI is the body that encourages, develops, facilitates and supports retailers to become modern and adopt best practices that will delight customers. RAI has a three charter aim of Retail Development, Facilitation and Propagation.