Retailers are increasing their use of service and food and beverage offerings as a way of enhancing their own offering.

While retail sales remain the primary source of revenue, retailers and investors are broadening the definition and array of activities on offer. Food and beverage is the primary growth area, with additional expansion in services and leisure.

The rapid pace of change is exciting, but also risky. New concept stores, locations which are repositioning, and brands which are succeeding and/or struggling require stronger asset management, greater flexibility, and leadership.

The experience economy is driving in-place retail. Customers of all ages enjoy being together. Even in the age of social media, the best social experience is being face to face, whether that involves sharing a meal, browsing stores, exercising, or simply hanging out. The creation of memory— of experience together—is inspiring the development of how shopping centres look and feel. By adding activities within shopping centres or on high streets that encourage people to stay longer, browse more, and engage more, retailers are finding the “dwell” time is increased. Customers return more often and the impetus for coming to the location is multiplied. Champagne bars, yoga classes and extravagant escalators are some of the tactics being deployed by department stores to reinvent themselves, stepping up spending to make themselves a ‘destination, digital and different’’.

The individualistic and different approach extends further to the high street, where those with chain-stores are being left for independent-flush characterful high-streets.

As ecommerce and online shopping continue to grow the traditional shop must also evolve. With so much available with just a few clicks or taps, there needs to be a reason to go to a physical location or destination. It seems logical that there are always going to be some specialised items that need to be tried, handled or tested and that require an individual to go to the shops but so much can be purchased on line.

Greater personalisation, specialisation and identifying and maximising opportunities for the further integration of retail (complementary services within units), technology, and entertainment to enhance the shopping experience are all factors influencing retailers’ property portfolios.

The retail sector is facing huge challenges over the next couple of years, especially for those trying to innovate and challenge the “status quo”. The solutions must be customer centric and involve Customer Experience – retailers must spoil their customers, Digital Transformation –retailers need to connect with their customers and Design Integration – it’s so important to surprise the customers – only then will they continue to return.