Malls urged to move with consumer trends
Glenn Rufrano, the New York-based president and chief executive of the global group Cushman & Wakefield, said internet sales in the US now amounted to 20 per cent of total retail income.
Mr Rufrano, who led the former Centro Properties Group through its dark hours in 2007-09, said on a trip to Sydney that over time malls would need less space and would have to work with tenants to accommodate the new way of shopping.
He said malls would need to offer a combination of bricks and mortar stores, areas to pick up internet purchases, and expanded food courts and entertainment to entice customers.
"The rise in the internet will lead to a retailer requiring less footage but having a strong supply chain relationship," he said.
"In the US, the demand for same-day delivery of goods is becoming very important, which has seen retailers lease out more warehouses than a traditional shop."
The rise in internet retailing has also led Mark Bouris' TZ Limited to strike a deal to introduce an automated locker system for people to pick up goods bought on the internet. TZ has entered into a partnership with AA Holdings, which owns and operates more than 50 BP petrol stations in Victoria, and Australian Fuel Distributors (Ausfuel), which has more than 80 Gull petrol stations across Western Australia, South Australia, Queensland and the Northern Territory.
In January, TZ signed a deal with GPT Group to have the lockers at its offices, shopping centres and business parks.
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The article says malls are shifting to smaller footprints and working with tenants to support online shopping. Expect a mix of bricks-and-mortar stores, dedicated areas to pick up internet purchases, and expanded food courts and entertainment to draw customers into centres.
Retail landlords will need to work with smaller assets to generate the same income as online sales grow. That means reconfiguring space, renegotiating leases and offering services (pick-up points, food and entertainment) that complement online shopping rather than compete with it.
Glenn Rufrano, president and CEO of global group Cushman & Wakefield, is quoted saying internet sales in the US now amount to about 20% of total retail income.
The article notes growing demand for same-day delivery has pushed retailers to lease more warehouses rather than traditional shop space. For investors, this trend highlights the rising importance of logistics and supply-chain real estate alongside conventional retail assets.
TZ Limited has struck a deal to introduce an automated locker system so customers can collect goods bought online. The company is rolling these lockers out through partnerships with fuel retailers and property owners.
According to the article, TZ has partnered with AA Holdings (which owns and operates more than 50 BP petrol stations in Victoria) and Australian Fuel Distributors (Ausfuel), which operates more than 80 Gull petrol stations across Western Australia, South Australia, Queensland and the Northern Territory.
In January, TZ signed an agreement with the GPT Group to install its automated lockers at GPT's offices, shopping centres and business parks, creating more convenient collection points for online shoppers.
Everyday investors should see this as a signal that retail property owners who adapt — by reducing surplus shop space, adding click-and-collect infrastructure, expanding food and entertainment offerings, or investing in logistics — may be better positioned as consumer shopping habits shift online.
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