Based on a news report from CBRE, there are going to be a lot of street retail districts that will increase foot traffic in certain trading areas. It will recover to its normal state in the third quarter of 2024 and grow higher in 2025.
By the end of the fourth quarter of 2023, the foot traffic in ten prime trade locations marked down by the A.I. system has increased to 81% of the 2019 level. It shows that there is a strong recovery.
Retailers take advantage of low rentals during the pandemic to get more space. Many investors gain rental income from prime trade locations, an increase of 9% in the USA. On the other hand, it has been reflected globally with a percentage of 5.8% since 2021.
“Retailers face a lot of obstacles to find the place that they desire, which includes low records for rental availability and an increase in rental income.” States Barr, the Retail Leader. “The market conditions already helped other retailers and investors to solve the problems despite lacking property space.”
Retailers who cannot find space in the right location may want multiple locations in different street districts with lower rental and other restrictions to get more space. A targeted location strategy can create more brand expansion and convenience for clients, especially if they wish to get digital pickups.
On the other hand, they also understand the importance of today’s omnichannel environment of getting a physical store along with their online presence. A lot of the retail sales are also influenced by it, and based on Forrester, the whole sales reached 78% of sales growth back in 2022, a giant leap from 46% in 2019. The shopping centre can increase the retailer’s online sales by almost 7%. On the other hand, closing down the store might suppress online sales by about 11.5%.
E-commerce was once believed that it would close down physical stores, but both of them collaborated, and they now help each other. However, it meant that they needed more physical space.
