Is window shopping a thing of the past? Well, it’s complicated. Retail space for lease in Sydney has changed since the pandemic. The surge in online shopping is here to stay and retailers must adopt new strategies to remain relevant in the eyes of customers. There’s a great opportunity for modern retailers to leverage new trends in a retail space. Creating a new type of shopping experience: one that seamlessly blends lifestyle with digital and in-store experiences.
According to CommercialRealEstate.com.au, when we cannot predict the future of retail, interim multi-purpose built hubs provide a way to reimagine buildings.
Retailers are increasingly demanding flexible spaces for hours, days, weeks or months rather than years. This type of future retail city, contingent on mobility, creates a demand for multi-purpose space for a retailer to scale orders up (or down) rapidly. The industry is tapping into a new retail culture of customisation, localisation and co-creation.Commercialrealestate.com.au
Traditional retail stores are stepping up to the plate to take advantage of this trend. In fact, online stores are taking advantage of these cultural shifts as well. Online retailers are making moves into physical spaces with showrooms open the public, pop up stores and permanent boutiques. These physical spaces are proven to create better in-person customer experiences.
“After experiencing five years of eCommerce growth in a matter of months due to the pandemic, retailers and brands need to leapfrog their investment programs to deliver their 2025 plan today.”Matt Darby, Head of Retail at KPMG.
Retail for Lease in Sydney is Returning to a New Normal
Fortunately, customers want to get back to visiting physical stores. As lethargic lockdown restrictions continue to ease and companies return to work, commercial real estate precincts are starting to open up.
As a result, retail leasing property in Sydney is transforming into multi-purpose retail concepts. These hybrid models are rethinking how we perceieve the traditional online and offline shopping experience. In this post, we’ll cover how innovative retail technology and new sales channels are reshaping retail space for lease in Sydney.
Here’s how you can take advantage of the new normal with commercial real estate trends in 2022 and beyond:
Multi-purpose Retail Shop
Whether you’re getting a haircut, shopping for a new outfit, or going to the dentist, multi-purpose retail spaces are the new normal. A one-stop shop makes it easy for consumers to shop on the go.
For retailers, these hubs can include a variety of professional services, onsite facilities and dining experiences to complement your business. Small businesses, eCommerce stores, and boutique retailers can quickly run to their stock rooms to refill shelves and swap out old products with the new ones in a matter of seconds. Hybrid retail precincts for lease in Sydney now allow you to run front-of-house and back-of-house business operations under the same roof. Meanwhile, consumers continue to shop, dine and relax in a communal space.
Sydney’s New Place to Gather in Alexandria is a heritage building for lease in Sydney. Surrounded by breakout spaces, lounges, cafes and restaurants at an affordable cost. The space offers a bespoke environment for retailers to provide personal customer experiences. In addition, access to complimentary features like an auditorium and beer garden add to an enjoyable in-person shopping experience for consumers. Retailers can now offer interactive and complementary services onsite that consumers can use in conjunction with products and services available.
Multi-purpose commercial properties make it easier for retailers to run their front-of-house and back-of-house operations. Whether you’re launching a business or building an empire, you need more than an office space. You can access onsite facilities like commercial office space, storage and showrooms, goods in and out stations. These hybrid retail and eCommerce hubs make it easy to process online orders and scale your business faster.
Which brings us to our next retail property trend…
Online stores in offline spaces
This one is a major key alert. Many brands are scrambling to accommodate online shopping trends. But, online retailers must not neglect the in-person customer experience because it’s an opportunity for online retailers to stand out from the competiton. Providing personal shopping experiences in addition to online storefronts sets eCommerce businesses a part from what’s already available on the market.
Direct-to-consumer brands who started out online are now building up an in-person presence. Online retailers are using property spaces in Sydney to set up pop-up shops and showrooms to showcase new collections, product demos, and more.
“The brand’s physical expansion to a showroom approach has really given customers confidence to purchase from us. Customer’s don’t just start with the entry level products that they do online.”Rebecca Ruddle, Head of Showrooms at luxury online clothing brand Made.com.
Going into 2022, we can expect to see giant retailers and smaller brands using offline experiences that continue to blend the convenience of eCommerce with new face-to-face experiences. In order to stay relevant in the digital age, both traditional retailers and online merchants must find and adapt to new sales channels.
Convenience Consumerism is key
Riddle me this, what has long wait times, requires a medical expert and typically isn’t open on weekends? You guessed it- health care clinics.
An emerging concept in favour of convenience consumerism is retail clinics. Retail healthcare clinics are becoming increasingly popular to meet the demand of frontline workers and healthcare services. Receiving quality care in a low-cost environment has given rise to the trend of convenience consumerism. If you’re busy maintaining a work-life balance on the go, a retail clinic just a short walk to shops, or onsite healthcare services at your workplace is the future of access to healthcare services.
The shift towards convenience-focused commercial precincts in Sydney is a groundbreaking trend. It allows greater flexibility for consumers to shop, dine, relax- and stay healthy. It’s a great way to increase accessibility and sustainability in commerce. This flexible model is a brand new take on integrated, onsite professional services that will benefit consumers of all ages. As a result, these new retail shops take the burden off of overcrowded hospitals and doctor’s offices, while remaining in walking distance to Sydney’s CBD.
Faster Delivery Times
A big component to consider when looking for a retail for lease in Sydney is order fulfillment. Retail giants like Amazon offer same-day delivery. Customer expectations for faster delivery times and cheaper shipping rates are at an all time high. According to PwC, 88% of consumers are willing to pay for same-day or faster delivery.
It’s hard to compete with same day delivery. That’s why selecting real estate needs to be logistically intentional. Retailers must consider street frontage, operations and logisitcs when selecting where to set up a retail shop. That’s why selecting a commercial property near a micro-warehouse is a great option. Microwarehouses allow small to medium sized online and offline retailers to lower shipping rates and scale warehouse space. This makes it easy for businesses to liaise with vendors around Sydney with opportunities to offer local dispatch and click and collect services.
“Most freight companies are located in Mascot so we have found Alexandria, NSW microwarehouses very convenient to engage with vendors. Being close to the city means we can get our parcels picked up quickly and delivered using a faster transportation route.”Sophia Lang, Operations Manager of online retailer Showpo.
It’s clear that consumer expectations will only continue to grow when it comes to online and offline shopping experiences. To stay relevant in the marketplace, retail property in Sydney must diversify into multi-purpose spaces. Select a commercial retail hub that is conveniently located in a high traffic area with access to local order fulfillment logistics. It’s important that retail property for lease in Sydney includes more than just a storefront. So remember to keep your back of house operations at the front of mind when choosing a commercial retail leasing property in Sydney.
To successfully grow your business into 2022 and beyond, retailers must continue to sell and advertise across multiple sales channels, both online and offline. Consider spaces with street frontage that are in close proximity to commercial properties that are still being built. Customer experience and convenience is a top priority. Build your brand in a space that is surrounded by bespoke environments and first-class service. It’s will leave your customer’s wanting more while consistently building loyalty with you and your brand- online and offline.
Looking for a new space to set up a retail shop? Customise your commercial real estate space from the ground up at Workit Spaces. Book a tour now.