Global retail trends: online – offline

“

The online marketplace is becoming crowded and fragmented, and a physical presence is becoming a necessity

Just as many physical stores, especially notable brands, pursue an omni-channel approach to serving their customer’s needs, there is a trend emerging whereby former pure play (purely online) retailers are now seeking a physical presence.

The online marketplace is becoming crowded and fragmented, and a physical presence is becoming necessary in order to achieve better customer engagement, brand recognition and higher growth.

The 2016 Urbis International Retail Study Tour to North America has seen a number successful previously online-only businesses take up space in strips and centres, particularly in areas where their product has already achieved reasonable online penetration.

Warby Parker, Bonobos, Blue Nile, Amazon and Deciem are notable examples.

Convergence is certainly accelerating in another direction too, with tech savvy start-up businesses that are new to the retail world emerging in shopping centres. For example:

• WithMe is a new player in shopping centres and is taking up in-line space to incubate emerging fashion brands and new ideas from established brands on a 2-3 month cycle. WithMe certainly brings technology into the store in no uncertain terms, offering personalised digital shopping experiences in store; and
• B8ta has recently completed a capital-raising to showcase the latest tech gadgets in physical stores, or more appropriately a ‘showroom’, where transactions are made online but in store.

Leasing teams will no doubt be looking into the online marketplace for future deals. 

WithMe at Santa Monica Place