© Toni Rappersberger
SCS set new standards: The use of plants increases the quality of stay.
Change yes, crisis no
Worlds of experience replace the shopping trip
The branch-based retail and, in turn, the market for retail properties face major challenges. In view of the significant increase in consumer spending, there can be only little talk of crisis – however, a fundamental change is unavoidable. As seen from both the Austrian and international levels, the retail market has been characterised by stagnating and, on a local basis also, declining square metre rents, rising vacancy rates and a reduction in available space for many years. This trend has been accompanied by a steady rise in online retailing as a share of total retail revenues. These facts appear to be a clear sign of a serious crisis at first glance. Then again, private consumption is growing stronger at the same time. Immigration is increasing the number of consumers, and the boom in city tourism is providing added impulses for key regional submarkets. The perspectives are generally positive, at least for markets with stable or rising consumer populations, like the major cities and selected district towns. This solid basis in no way justifies fears of a crisis. The retail world is, however, in the midst of a deep-seated structural change, which can be effectively addressed with new strategic approaches and innovations.
In these times of online retailing, shopping alone has ceased to be the main reason for an increasing number of people to visit a shopping centre or shopping street. The best way to keep pace with the Internet competition and the change in spending habits is to turn the shopping trip into an all-inclusive experience. Conventional shopping centre entertainment programmes are, by far, no longer enough. The focus has shifted to a mix of attractive architecture, continuous entertainment and events for specific target groups. That creates a world of experience where shopping is only one of many reasons to spend an afternoon in the city or in a shopping centre, instead of online shopping on the couch. Shopping centre operators are also challenged to offer an alternative to other consumer events like holidays, concerts or theatre trips.
Gastronomy instead of shopping
Shopping centres and shopping streets must adapt to wide-ranging changes in their tenant mix. The old rule of thumb with a 10 to 12 per cent gastro share is hardly valid today and the share will rise to 20 to 25 per cent in the future. In particular, innovative concepts from the system gastronomy segment are
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