In 2020, the cumulative value of turnover in commercial facilities remained negative for all product categories. What is the future of shopping malls in 2021? Cushman & Wakefield experts in the latest report "Trends Radar vol.3" present forecasts and directions of development of the retail sector.

Omnichannel

The focus is on multi-channel and the interpenetration of sales channels, such as the transition from offline to online and from online to offline. Premises and sales platforms offering products derived from returns will develop.

New technologies in trade

The importance of new technologies, both in stationary and e-commerce, is growing. Solutions such as virtual fitting rooms are developing. Experts also see a trend in the emerging MARKET PLACE platforms associating tenants of shopping centers.

Saved savings

According to experts, after the end of the pandemic, there will be a noticeable increase in consumer spending. New solutions in the catering and entertainment industry are already being implemented to meet consumer demand for the use of this type of premises while maintaining the sanitary regime.

Price sensitivity

Another trend that we observed during the pandemic is the strong price sensitivity. We see an increase in the popularity of brands with an economic profile, with a simultaneous increase in the importance of niche brands offering very high quality. We are also seeing a growing importance of second-hand clothing trade - emphasizes Beata Kokeli, Head of Retail Agency, Cushman & Wakefield.

E-commerce

Recently, e-commerce has seen not only an increase in popularity, but also a significant improvement in the quality of service. Examples of this are flexible returns or delivery of purchases within 1 hour.

E-commerce is developing very dynamically, and the closure of shopping centers was an additional driving force for the growth of this trend. However, after the reopening of shopping centers, we saw a decline in this dynamics. Customers are loyal and want to come back to their favorite places, so let them do it, respecting all the restrictions resulting from the sanitary regime - says Beata Kokeli.

In addition, experts forecast that the function of some commercial facilities will change to a mixed function and a growing need to look for alternative solutions for free space in some commercial premises. Retail parks and convenience facilities will continue to grow in popularity. There may also appear new, flexible solutions regarding lease agreements, such as, for example, making the amount of rent dependent on turnover, or the implementation of a mixed model, which is a combination of rent and turnover and the minimum.

What is the future of the retail market? Currently, it is a market of great uncertainty, especially as we do not know how long we will have to function in a pandemic reality. There are numerous voices that vaccinations will allow us to return to the reality from before the pandemic, and thus to stationary shopping, in the middle of this year. What awaits us then? We do not have any research on this subject yet, but already, observing the market, we predict that the number of vacancies will increase significantly. We can especially expect the dismissals of premises by representatives of such industries as food & beverage, fitness or the entertainment industry, whose establishments may disappear from shopping malls and shopping streets, as well as from the ground floors of office buildings - adds Beata Kokeli.

Download the full report here: https://info.cushmanwakefield.com/l/263412/2021-03-03/3jfsmr