The retail sector made a robust recovery in the second quarter of 2022, with transaction activity growing by more than 100 per cent on a quarterly basis.
Overall, in H1 2022, the retail sector reported massive growth of more than 160 per cent Y-o-Y.
The report by consulting firm CBRE South Asia said that relevant and viable online retail may not suffice to satiate retail needs as outing, experience and leisure are critical factors needed to balance the retail equation and will continue to draw in-store shoppers.
The report further added that the experience was a critical factor driving how retail spaces were designed even before the pandemic.
However, following the pandemic, the productivity of retail spaces came into sharper focus, with ‘experience’ becoming more crucial due to its ability to increase customer engagement and not just sales.
With this, experiential retail is currently counterbalancing the prevalence of e-commerce and ensuring profitability by increasing the brand’s physical presence.
“H1 2022 saw more than 500 per cent increase in project completions compared to year ago. We expect these positive sentiments to sustain in the near term even as retailers explore innovative means to attract consumers and drive sales on both online and offline fronts,” the report said.
“Physical retail locations must evolve into places where people want to go rather than have to go if they are to succeed in the future. While we have reasons to believe that retail business activity has already moved towards pre-pandemic levels, COVID-19 has modified consumer priorities. It is therefore imperative to deliberate on how real estate stakeholders can improve their spaces to enhance the experience quotient and subsequently value,” said Anshuman Magazine, Chairman and CEO (India, South-East Asia, Middle East & Africa), CBRE.
