Retail is anticipating the effects of a longer-term transition
Foot traffic at retail centres will rise as more pandemic restrictions are lifted. More tenants are confident about returning to shopping centres, both to re-open and expand business. However, this positive sentiment has yet to impact on occupancy costs. In terms of tenancy mix, since department and hyper stores are in an unfavourable situation, the occupier configuration continues to evolve.
Retailers are using space more efficiently. The ability of retailers to offer new product types is potentially attracting foot traffic from a previously untapped customer base, and is an opportunity for retailers to upgrade digital resources and customer engagement. Landlords are more focused on choosing the right tenancy mix. Healthier economic forecasts will invite higher consumer spending, and the retail sector is expected to be reinvigorated.
