Consumers set to benefit as disruption drives down prices
According to the latest Collier’s research and forecast report, the highly anticipated local entrance of Amazon along with other offshore retailers such as TK Maxx and JD Sport mean there is more choice available than ever before.
Daniel Lees, research director at Colliers International said new platforms like the Amazon Marketplace will provide more depth to the current online offering available to consumers, while also delivering end to end online sales infrastructure that was previously out of reach for many small to medium-sized domestic retailers.
Colliers said its research found the wealth effect delivered through the housing market has created a strong spending environment, and the range of products available means consumers have never been more tempted to purchase.
“Although there is perceived general shift in the market towards online retailing, there are certain sectors of the market where a physical retail presence is and always will be essential,” said Julian Demetrovics, director of Retail Tenant Advisory at Colliers International.
Demetrovics said retailers who specialise in the higher end of the market, particularly in food, fashion and jewellery are now spending more time and capital on their fit outs to focus on maximising the customer experience.
“Landlords are creating individual retail precincts which emphasise the experience of shopping, not relying primarily the brands and products themselves to attract customers to their centres,” he said.