There has been rising concern in the commercial property market regarding the rapidly growing online retail market. The commercial property market relies heavily on the retail sector and without this we would see a mammoth decrease in the UK commercial property market.
Over the course of the last decade we have seen huge growth in the availability of online stores. Nearly every large retail company harbours the option of shopping online. CBRE, have recently announced: ‘The online capability of retailers is already substantial, with the majority (82%) operating at a minimum an online catalogue that can be browsed.’
Topshop is a prime example of a thriving online arm of a worldwide retailer. Special offers can often be found on online retail websites such as Topshop, it is at times as though they are encouraging shoppers to buy online rather than visit one of their stores.
There are also a number of retailers which are available solely over the internet, such as Ocado, which specialise in groceries and consumer goods and ASOS, the internet fashion store, which is quickly becoming a major rival to high street stores such as Topshop and H&M. ASOS, records an average of 8.3 million unique users each month.
However, CBRE have said they don’t believe the commercial property market will be seeing the back of the high street retailer just yet, citing that a physical store is a fantastic way of advertising and raising brand awareness.
Peter Gold, Head of EMEA Cross Border Retail, CB Richard Ellis, said: ‘The presence of a physical store makes it easier for a retailer to operate an online platform. Not only is the store a place for buying or viewing a product, it is also the location where consumers go to pick-up goods that have been bought online…There is no doubt that e-commerce presents an important sales channel for retailers as it hugely increases a consumer’s awareness of brands and the choice of products available to them; however, retailers are still concerned about how to capture the essence of their brand and whether the internet represents incremental or cannibalised sales. The effective distribution of goods bought online also remains a key challenge; therefore, the extent to which e-commerce will change the fundamentals of retailing remain to be seen.’
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