Real Estate Investor Magazine South Africa October 2016 | Page 17

RETAIL DISRUPTION

a separate turnover provision for retailers that use
Looking at our home market in South Africa, it
physical stores as a distribution point for online seems that the impact of online sales has not really
orders. Often there is one calculation for turnover begun to be felt by most shopping centre owners yet.
rent based on in-store sales, and a separate formula for Marius Muller, CEO of Pareto, commented that they
online sales. This model, however, is very much in its have not really measured the effect of online sales on
infancy and seems limited to supermarkets at present. turnover in their centres currently, but that he believes
Some landlords were aggressively trying to attract it to be negligible at the moment. He noted, however,
retailers with both robust online and physical channels that local landlords are taking note of the current
to their shopping centres, saying that such retailers research and thought processes going on overseas.
raised the bar in their centres. Yet others said that
Gavin Tagg, MD of Retail Network Services,
whilst some prominent retailers were decreasing the also com