What will be the Future of Retail Real Estate Market?

Recent news may seen like the retail industry is in free fall, but that only makes for good headline. It's easy to point finger at e-commerce and technology for the surge of in-stores closures. It's not that the retail's changing but consumers too. Consumer behaviour is evolving along with technology, leading to increase demand for online and offline shopping experience. Retail is becoming more digitally focused, but physical stores still hold their value.

Here are few retailers who have recognised these trends and are succeeding in the retail real estate:-

• Off-price Retailers- The consumers have adopted more cost-cutting approach to spending. While the economy is fluctuating, consumers are looking for deal seeking ways. Discount retailers are on the top and are adapting approach to home goods to keep inventory fresh and attract consumers more frequently to their physical stores.

• High-end Grocers- Traditional retailers are not only in the business to the changing consumer preference, but high-end grocers are giving tough competition and luring the shoppers.

• Speciality Retailers- Automative retailers are succeeding as consumer focus more on maintenance and less on upgrading to the new trend. The cosmetic industry is booming right now and retailers like Sephora are giving technology with customer experience.

Customer's analytics in the retail industry, from apparel to autos, help in providing insight to open new locations, the relationship between online and in-store sales, and how to make the customer experience more valuable. Global retailers are expanding their portfolio with multiple store openings led by International apparels and domestic F&B players who are continuously dominating the demand for organised retail space. Rental trends are varying across high streets and malls, while some markets are witnessing stable rentals. With this, the entry of global and national brands and expansion of strategies to improve will be seen, which will lead to development of retail space across India. Family entertainment multiplex operators are also going to be active in leasing retail spaces. With increasing urbanisation and policy initiatives there will be a shift in consumption patterns and with advent of REIT'S in future the quality of shopping malls is expected to improve. With the new norm GST, now there will be rationalisation of tax at different level as well as improvement in ease of doing business in retail goods.

This guest post has been written by Gunjan Johar, Real Estate Blogger.