The past two years experiential retail has been the driving force in the changing retail landscape. This was covered extensively in AIP’s monthly bulletin articles and monthly video series. This month’s video discusses three additional components of change in retail that further emphasize the continued impact on the retail industry, and therefore, the retail market pertaining to commercial real estate. Learn how the shift to e-commerce, technology advancement in brick and mortar stores, and augmented reality phone apps are changing the retail landscape.
1. Shift to E-commerce
United States e-commerce sales are up 15.5% versus this time last year, and with online sales making over 10% of all retail, the continued rise in e-commerce is steadily taking market share from brick-and-mortar stores. Given the environment, some traditional retailers are closing stores while others are choosing to flex and shift their focus to online. This shift in focus to e-commerce is impacting the CRE industrial market. More companies are acquiring warehouse space to expand distribution efforts.
2. Advances in Technology
One way to stay relevant as a brick-and-mortar is to make advances in in-store technology, providing the consumer with digital products that elevate the shopping experience. Stores like Walmart and B.J.’s are creating apps and providing electronic devices to customers, giving the consumer the option to scan and shop for items, and then checkout all from a handheld device. This tech advance makes shopping more convenient and streamlined.
3. Augmented Reality
Augmented reality is another component elevating the retail experience. This feature allows users to overlay digital renderings onto their homes through their smart phone screens via an app. Stores such as IKEA, Target, and Lowe’s all have debuted augmented reality, or AR, shopping technology. Recently Amazon has joined in on the trend and debuted an augmented reality feature of their own.