Multichannel retailing is set to complement, rather than compete, with bricks-and-mortar over the next two years, according to a new study from CBRE.
Investing in new or currently existing stores is a major priority for international retailers, with many indicating a requirement for more physical outlets and increased shop space as a result of their multichannel strategies.
The revelation comes as CBRE has commissioned a comprehensive study of 50 top international retailers with a combined network of stores exceeding 32,000 worldwide. The study has been designed to explore the role of physical stores in multichannel retail, the future of the store as well as how retailers make money from multichannel.
Launched on the 19th of September at London’s World Retail Congress by Peter Gold, Head of Cross Border Retail EMEA at CBRE, ‘The Role of Real Estate in the Multichannel World‘ provides insight into current multichannel strategies and predictions for the next two years.
“Our message to the retail and real estate industry is don’t panic,” Gold says. “Consumer-driven technology continues to advance and contrary to widely held assumptions multichannel retailing is actually complementing not competing with existing store networks. In reality, multichannel is encouraging shoppers to visit stores and is driving additional business to retailers – the over retail pie is getting bigger and it is critical for retailers and landlords alike to embrace multichannel, understand that it does not have to be expensive, and secure a greater slice of the market.”
Key Findings of the Report:
- 70% of retailers see themselves as primarily ‘bricks-and-mortar’, however in two year’s time 63% aim to be multichannel
- Retailers say online accounts for no more than 5% of sales now, but expect that to double in two years
- Stores aren’t currently being used for fulfilment, but retailers say they have plans to change that within two years
- Retailers indicate the need for more region distribution centres as opposed to local or on-site storage
- 60% say they will require more shop space as a direct result of their multichannel strategy
- Online retail is tipped to grow faster than store expansion, however retailers hope to increase coverage of both channels
“The future is a function of the past,” explains Gold. “While some sectors, such as books or CDs, have suffered, shopping will continue to be a social experience – store portfolios are not about to shrink.”