“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?
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?
“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
“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?
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
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