New Delhi, Aug 23: Shopping malls and other physical retail locations must focus on providing a unique experience to customers for success, according to property consultant CBRE India.
Property consultant CBRE South Asia Pvt Ltd’s report — The Retail Perspective on Experience and its Impact on Real Estate — highlighted that Indian retail space is witnessing growing footfalls across retail and recreational spaces as the COVID pandemic ebbs.
The retail sector made a robust recovery in Q2 (April-June) 2022, with transaction activity growing by more than 100 per cent on a quarter-on-quarter basis.
In H1 (January-June) 2022, it reported massive growth of more than 160 per cent year-on-year.
This growth resulted from pent-up demand causing a renewal in physical retail visits even as online shopping continued to perform strongly.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, said: “Physical retail locations must evolve into places where people want to go rather than have to go if they are to succeed in the future”.
Magazine said it is imperative to deliberate on how real estate stakeholders can improve their spaces to enhance the experience quotient and subsequently value.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said, “In the current scenario, it is imperative to figure out how players in the retail space can improve physical experiences”.
CBRE has suggested a multi-pronged approach, including diversification of store formats and functions, leveraging data science to develop customised location strategies based on the catchment, repurposing existing stores, creating a personalised experience and developing fruitful partnerships.
Even before the pandemic, the report mentioned that the experience was a critical factor in deciding how retail spaces were designed.
“Following the pandemic, the productivity of retail spaces came into sharper focus, with ‘experience’ becoming more crucial due to its ability to increase customer engagement and not just sales,” it said.
As a result, the consultant said that experiential retail is currently counterbalancing the prevalence of e-commerce.
“… Customers are now looking for engaging, immersive and convenient experiences that give them a reason to visit stores rather than make purchases online,” the report said.
Across cities, brands are resizing and recalibrating their physical store strategies to diversify their portfolio and expand their footprint, with ‘experience’ fast becoming an important frontier to bridge the retailer-consumer gap. (PTI)
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