CPABC Industry Update Summer 2015 - BC Real Estate Industry | Page 13

Accordingly, retail sector square
fo o t a g e h a s d e c re a s e d d u e to
changing retail buying patterns, the
efficiency of omnichannel distribution,
and the changing behaviour of
millennials. All these factors result in
reduced store traffic in the US3, and
Canadian retailers need to take note
and recognize that the physical store,
although as important as ever, today
plays a different role today in the eyes
of the consumer.
As in the office sector, real estate is a
significant driver of cost, accounting
for anywhere from 5%-20% of sales
depending on the type of retail. The
shift to online shopping and maturing
retail markets has meant more focus
on profitability and sales over growth.
The ability for retailers to decrease the
capital-intensive cost of real estate
means those funds can be redeployed
elsewhere, such as in developing
new channels to reach customers,
improving logistics, and developing
warehousing and fulfilment strategies.
Retail proper ty owners need to
continue evolving their “shopping
experience” through the addition of
food, entertainment, and a wide array
of retail offerings.
Technology needs to extend to more
than just the storefront; the back office
needs to be able to capture customer
preferences and tap into data analytics
to suppor t and help drive sales.
Understanding big data will be a key
driver of long-term retailer prosperity.

From a Real Estate
Perspective, the Retail
Industry is Undergoing a
Profound Change
Physical stores remain core to creating
an innovative and long-lasting
shopping experience, but they are no
longer the sole touch point for a retail
brand. Instead,