The growth of omnichannel model is driving increased collaboration between shopping centre owners and retailers, as well as presenting fresh discussion on lease terms, delegates at the International Council of Shopping Centres’s Destination Retail conference heard today in London.
Brenna O’Roarty, founder at property strategy consultancy RHL Strategic Solutions, said the changing retail landscape meant that the store was no longer viewed as a simple point of sale.
“Historically shopping centre owners have been successful through clever tenant mix, marketing and positioning of the offer but now they need to build a direct relationship with consumers,” she added.
Alan Billingsley, principal at US-based retail real estate research firm Billingsley Investments, suggested the store remains central to an omnichannel strategy, but retailers have not yet been able to quantify its value separately to online, taking into account the store’s catchment area and halo effect.
An audience member raised the example of Bicester Village, owned by Value Retail, which leases out space and takes a percentage of retailer’s sales.
“What is becoming clear is that for lease terms, there is no one size fits all and negotiation terms will remain for both parties,” responded O’Roarty. “I believe diversity in lease strategies will increase going forward.”