COVER STORY
cidedly points to the fact that we still prefer physical stores . It ’ s important to keep in mind , however , that this is bound to change with added accessibility and ease-of-use of online retailers .
A trend that ’ s been seen locally and internationally , is the shift away from large malls in favour of convenience centers and local retailers . It may very well become more common for South African customers to purchase their monthly staples online , while visiting physical stores for daily essentials or top-ups .
Shopping malls are increasingly feeling the pinch , opting to fill untenanted space with concept stores or exhibitions . This adds to the oft-discussed experiential shopping experience . One where shoppers aren ’ t necessarily looking to buy a product , but rather to see and experiment with new offerings .
Opportunity
As more and more locals become familiar and comfortable with online retail , the need for distribution hubs and warehousing will continue to increase . According to Broll ’ s Anthon van Weers , they are seeing a severe shortage of industrial space : “ The scarcity of industrial land within a tight radius of the CBD means that rentals for new A- Grade purpose-built facilities , with 13m eaves heights and high yard ratios have now reached R70 per square meter triple net .”
While Amazon is yet to establish a local distribution hub , local e-retailers like Takealot have shown the rapid growth in need for warehousing space . While it ’ s difficult to predict a precise time frame , it seems the appetite for this type of property won ’ t die off anytime soon .
The bottom line
With a young and mobile population , South Africa is primed for innovation and new ways of doing business . While now may not be the time to panic , we ’ d do well to keep the future in our sights when making investment decisions today . why they decided to invest in a brick and mortar store . Having launched its own food delivery offering ( AmazonFresh ) back in 2008 , the company was in need of a physical footprint . It ’ s estimated that the food distribution market is worth $ 800b , making it a definite focus for the online giant .
In a similar fashion , Amazon opened its first physical store , Amazon Go . Setting it apart from competitors is the ability for shoppers to walk out the store without having to wait in a queue . Each item is automatically added to the subscriber ’ s Amazon account . The first store was opened earlier this year , with Amazon planning on introducing 2 000 more .
Over on local soil , there are a few key factors to look out for .
The South African perspective
According to a 2017 report published by Visa , online retail accounted for only 1 % of the overall retail share . This de-
AMAZON KEY
Grant access to the people you trust with the Amazon Key App and monitor who enters your house when you ’ re not home . Schedule permanent access for your family members or give temporary access to recurring visitors like dog walkers , house cleaners , or out-of-town guests . You ’ ll be notified any time your guest locks or unlocks your door or watch motion clips as they enter and exit .
Prime members in select cities and surrounding areas can opt-in to in-home delivery . To start using in-home delivery , enable it in the Amazon Key App , shop on Amazon using the address that you installed the Amazon Key Home Kit , and select “ free in-home delivery ” at checkout .
On delivery day , you ’ ll be notified in the morning and just before the delivery for you to block or watch in-home delivery . Amazon will authorize the delivery and unlock your door . No keypad code is shared with a driver . You can watch the delivery live in the Amazon Key App or see a video clip of it later . You ’ re notified once the delivery is complete and your door is relocked .
SA Real Estate Investor Magazine MAY / JUNE 2018 9