Quality retail space is the new frontier as consumers look beyond the online sales experience
- Bricks-and-mortar stores can exist as a place for people to wander, relax and interact with others
What are the opportunities for bricks-and-mortar stores in a digital era? The answers may be in aesthetic retail space where people can wander and interact with others.
The retail market in Hong Kong has undergone numerous stages in the past five years. It peaked in 2013/14, where rents in core districts such as Causeway Bay’s Russell Street surpassing thousands per square foot.
Then it was the downturn from 2015 to 2017 when government introduced measures to curb travellers from mainland China, resulting in a sharp drop in foot traffic and sales. Finally, the time came for the market to recover amid a booming economy and accelerated tourist arrivals. Throughout the cycle, e-commerce gained ground and people started to shop online instead of walking into physical. As high rents continue to weigh in and people change their consumption habits, brands are increasingly lost about the meaning behind physical stores.
The question is, are stores purely for people to buy and go?