The hard lockdown, which saw customers spending less and some retailers closing their doors, was the biggest shock to the sector’s performance, but post lockdown it is a lower household income that is proving to be the biggest challenge.
This will, however, change, and with e-commerce continuing to gain momentum, along with changed consumer habits and people’s financial struggles, retail properties are going to have to make some changes to stay relevant and counter their vacancy rates.Addressing a virtual briefing on the outlook for the retail property sector, John Loos, commercial property economist at FNB, said retailers in prominent business hubs were under particular pressure.
“Online shopping was growing even before Covid-19, and the lockdown gave it a bump up as more people used it for the first time. A portion of them will continue to shop online and as more consumers use it their habits will change . While residential conversion of underused retail property is a possible solution, Loos said it was not always a straightforward task.
busrep Property360_za If you are not doing e-commerce you are seriously falling behind.