Role of physical stores in digital retail space

A recent report from CBRE suggests that physical retail stores are seeing a resurgence across Asia Pacific as e-commerce growth moderates. In many parts of the region, footfall is back to pre-pandemic levels. The report found that less than 5% of consumers solely shop online, with the majority being hybrid shoppers who display different shopping behaviours.

CBRE's Head of Occupier Research, Ada Choi, emphasised the importance of physical stores in an increasingly digital retail space. Physical stores must support online shopping, fulfil demand for "Instagrammable" and social media-friendly elements, and be able to cater to different shopper behaviours. Choi commented that "physical retail is here to stay" due to its ability to provide an expert experience and allow customers to feel the product.

CBRE predicts that investment volume in retail will remain largely flat due to uncertainty surrounding the financial markets and concerns about the banking sector affecting investment sentiment. However, CBRE identified Singapore, Australia and Japan as markets leading the way in the return to physical retail. Overall, the report highlights the need for retailers to adapt and evolve in response to changing consumer habits, and optimise sales networks to provide a combined experience for their shoppers.

To know more, watch the full interview.