emerging trends in retail spaces
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Panel Discussion - Emerging Trends in Retail Spaces
5 Feb 2014
Rohit George, Principal, Xander Advisors India
Challenges in Retail Spaces
“To cut down the occupancy cost, something has to be done with electricity cost. There should be more effective use of
open spaces” –
Shubhranshu Pani, JLL
Small retailers are leveraging the ecommerce market place as sometimes the omni- channel
model doesn’t justify the cost for them.
The challenge lies in finding retailers with right productivity mix - who can be a part of the success story of modern retail
environment. Unless this productivity increases they
cannot match with high cost of
real estate.
What type of environment can help pull in customers?
“As far as design part is concerned, a mall space has to be segregated innovatively. Create zones wherein the brands get effective
visibility” –
Ramesh Sanka, DLF Gurgaon
Revenue sharing model is one way by which real estate developers can to some extent lighten the burden of retailers
• Right Infrastructure and accessibility
• Design a mall such that all requirements of a user are fulfilled under one roof at a time
Besides shopping facilities foods and entertainment is very important. 15-
20% of space should be dedicated to food, whereas internationally it’s 25%,
and 20-25% should be given for entertainment.
What makes a good retail space? How does that definition change across emerging markets?
“Many categories don’t find space in malls – because they are not enough of them (at a category level) to sustain the market price for that category. There’s a lack in depth of categories. Unless this problem is solved, retail spaces will
continue to be expensive ” –
Vivek Kaul, CBRE
The revenue sharing model creates a trust and
transparency between a retailer and real estate
developer. Malls nowadays are built keeping in mind the primary purpose of pulling in
customers. It’s not just a mere retail space. Mall developers have realized that there’s a
need for creating such environment
Cost of Real Estate
“5-20% is par - for real estate cost – for all retailers in the country” –
Amitabh Taneja, IMAGES Group
Retailing is spreading to new spaces - emerging cities, emerging suburbs / townships in cities, and to
rural / semi rural areas.
What makes a good Brick and Mortar retail mall and how retailers can create sustainable communities in the suburbs where they are present?
Rohit George, Principal, Xander Advisors India
“Market research is very important which provides insights in to catchment, market demography, etc to create the right
environment” –
Rohit George, Xander Advisors India
Adding an e-commerce platform in a mall will have an extra edge
with stores and distribution centers made available on the
platform
Tourism attraction can be developed around shopping festivals with local
flavors