Shoppers return to brick and mortar stores
After a COVID-led surge in online sales shoppers are now headed back to bricks and mortar stores, according to a new report from Knight Frank. Despite seeing $353 billion in retail spending by Australians in 2022, online retail sales have fallen in volume by 2.6% compared to last year.
Knight Frank head of Research and Consulting in Victoria, Dr Tony McGough, said the retail environment has undergone a substantial overhaul.
“The market has experienced shifts not only in spending patterns between different types of goods, and the flow through of this in occupancy costs to retailers, but also in forced or preferential changes in consumers’ choices of preferred centre types,” Dr McGough said.
“However, the stalling of the online share for spending suggests that while households are now more comfortable utilising online retailing for smaller, non-discretionary spends, the re-opening of traditional retail is encouraging an uptick of retail spending in this area. The slowing in online spend shows that its expansion will be far more gradual than widely thought.”
Knight Frank’s Head of Retail Investment, Chris Maher, said retailers are transforming their offerings to attract more consumers. “As we move on from the pandemic, shopping centres are accelerating an effective countermeasure to online shopping – which is making centres destination locations,” Mr Maher said. “This repositioning, and where needed, repurposing, is reasserting brick and mortar retail offerings after a period of significant online and e-tailing focus.”