Can we revamp the retail sector? Or is industrial in the running to be crowned king of the property sector this year?
It’s no secret retail has taken a hit in recent years. With the rise of online shopping and the convenience of shopping from your desk, foot traffic has really slowed down.
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We witnessed this here in Auckland firsthand with the closing of Topshop’s Queen Street store last year, a famous and internationally celebrated brand. And it’s not just New Zealand sitting in the struggle; world-renown brands such as Debenhams and House of Fraser are grappling with the unstoppable force that is e-commerce.
As retail continues to suffer, industrial yields strong returns with a push to increase supply for online orders. Investor confidence for the industrial sector was the strongest across all the commercial and industrial sectors with a net positive 58% (optimists minus pessimists), according to the latest Colliers survey.
So what can be done to save the retail sector?
Maximise the space you have. Shopping is an experience — change the game and execute clever campaigns to bring in new foot traffic. With co-working on the rise, consider your space —is there an opportunity to use your space out of hours for events or as a shared office space?
These are just some of the thoughts I’ve had through my discussions with industry professionals. I believe the key lies in being creative. Create an experience, be unique! It’s time for creative thinkers to step up and re-energise the retail sector.
There’s still time to effect change, but who will front it?
Interested to hear more? Get in touch with Adam Towler, our Property & Residential Construction Development Specialist.