The retail sector has endured a period of sustained pressure, firstly through the growth of e-commerce and the rise of omnichannel retailing, and then came government-mandated lockdowns through 2020 and 2021. Although the sector demonstrated great resilience in adapting to new conditions, it is simultaneously facing cyclical headwinds of high inflation, interest rates and service charges, reveals "Retail Asset Optimisation for Tomorrow" [1], a report from global real estate services firm Cushman & Wakefield. Other significant challenges include the need to boost customer loyalty in an increasingly competitive environment and mounting ESG pressure. Against this backdrop, experts of Cushman & Wakefield highlight strategic approaches for building owners to managing their assets so that they remain relevant and on course for success as the economy inevitably rebounds.
Analysis[2] of the first quarter of this year on the retail market has confirmed the strength of retail parks which dominate new supply, indicating that it is experiencing an increasingly sustainable and geographically diversified growth. There is 400,000 sq m under construction, of which only 18% is in shopping centres. It is worth noting that the beginning of the year brought a long-awaited rebound in retail sales which rose 3% in January and 6.1% in February and March amid higher shopping centre footfall levels,”
explains Ewa Derlatka-Chilewicz, Head of Research, Cushman & Wakefield.
Social shopping is a growing trend that is seeing shopping centres turn into places to meet and mingle. As well as looking for things to buy, customers are also seeking experiences and opportunities to connect and build relations with others. Shopping centres may serve as platforms for local entrepreneurs, artists and communities by offering showroom and retail floor space. In addition, by holding events and workshops they promote the integration of local communities. The market is on a path to building authenticity, transformation towards sustainability and building stronger customer relations - shopping centres that will address these challenges will enjoy a competitive advantage,”
says Paulina Bauer, Head of Retail Asset Services, Cushman & Wakefield.
Addressing sustainability risks and opportunities
We advise our clients to make an informed choice of sustainability programmes and to effectively communicate them. Similarly to other commercial real estate, retail properties are also facing challenges brought by the recent adoption of the recast EPBD, which mandates improving the energy performance of buildings and carbon assessment throughout the lifecycle of a building,”
explains Katarzyna Lipka, Head of Strategic Consulting & ESG Advisory, Cushman & Wakefield Poland.
All optimisation policies should be backed up by careful planning and be data-driven. Before implementing any changes, we recommend carrying out an energy audit and other analyses to assess current energy consumption levels, to identify possible savings areas and to recommend the most efficient solutions,”
adds Katarzyna Lipka.
Building customer loyalty
Placemaking should be a core part of shopping centre management. In addition to a financial aspect, building an appropriate marketing strategy and communication with customers is one of key priorities. Shopping centres that create positive retail and leisure experiences and offer relaxation, entertainment, education and interaction zones will gain repeat customers,”
comments Sylwia Wiszowata-Łazarz, Head of Marketing, Asset Services, Cushman & Wakefield.
It is, of course, essential to offer a vast array and the right mix of services that will allow for creating a consistent and compelling ecosystem for customers. This requires cooperation with brands that will match the values and the image of a shopping centre and offer unique products and services, ultimately translating into visitor engagement,”
adds Paulina Bauer.
We started with refreshing a marketing strategy and identifying our target audience. We focused on engaging younger customers (18-34-year-olds), fashion-conscious professionals as well as both domestic and international tourists on account of the location in the city centre, near Warsaw Central Station. We implemented marketing automation tools which leveraged mobile tracking and sophisticated customer loyalty programme, together with a digitally-enabled tenant relationship management programme. As it turned out, a tenancy clustering strategy creating specific precincts to help customers navigate the shopping centre intuitively was also key,”
says Sylwia Wiszowata-Łazarz.
[1] Complete Asset Optimisation Guide 2024: https://www.cushmanwakefield.com/pl-pl/poland/insights/asset-optimisation-strategies
[2] Retail MarketBeat: https://www.cushmanwakefield.com/pl-pl/poland/insights/retail-marketbeat
[3] “Retail UX in Poland. Polish People Talk About Building Retail Experiences”: https://www.cushmanwakefield.com/pl-pl/poland/insights/how-do-we-use-different-retail-formats-in-poland
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit http://www.cushmanwakefield.com.