Community Shopping Centres remain relsilient due to Click & Collect role
Posted by Ellandi on 4th Jul 2018
Community shopping centres remain resilient in the retail sector due to consumer shopping patterns resulting in a lower proportion of represented retailers having transactional websites compared to regional malls, as well as their critical role in e-commerce fulfilment, with 13% of visitors to community centres using click and collect services, according to a new report from Savills and Ellandi.
Retail Revolutions: Exploring the impact of e-commerce on local physical retailing, highlights that despite challenges from rising e-commerce, increased costs, structural shifts, several CVAs, and the rhetoric that accompanies these issues, there are positive stories in the retail sector. Online retail continues to dominate the growth story, but it is becoming increasingly clear that for many brands bricks and mortar stores remain key outlets for customers to interact with their omnichannel offer.
While no sector is entirely immune from challenges brought on by e-commerce, Ellandi and Savills say that the community shopping centre market and other local convenience driven centres will continue to be occupied by a mix of retailers for whom e-commerce is a sideshow, as well as brands that use the store as a core part of their supply chain, a means to bring the online and offline channels together and customers in store. For many retailers, physical space is proving to be both a complimentary and synonymous part of their overall omnichannel strategy.
Online trade accounts for only 12% of the UK sales of the top 100 community shopping centre brands compared to 20% in regional malls, according to the Savills/Ellandi report. 68% of the top 10 brands present in community shopping centres have an internet offer, compared to 80% of those in regional malls, with centres tending to focus on goods and services that are not as readily available online, thereby proving more resistant against moves towards online retailing.
Tom Whittington, retail research director at Savills, comments: “With a greater proportion of retailers with no online offer, or online accounting for a low proportion of their UK sales, while not completely immune from the impact of e-commerce, the stores in community shopping centres remain a core and relevant part of retailers’ businesses and one of the best opportunities for them to engage with customers. E-commerce may not prove to be the major threat anticipated for retailers in these schemes as many of these brands offer a distinct point of difference, with in-store service, experience and convenience being paramount.”
Isabelle Hease, Head of Research and Analytics, at Ellandi adds: “Click and collect has a natural synergy with the convenience of local high street and shopping centre locations, giving shoppers a purpose to visit. According to our research, collection services are currently used by 13% of visitors to community shopping centres and are highly effective at bringing shoppers in store and increasing basket spend, with those who use them averaging a £40 basket spend, versus £29 for those who don’t.”
Notes to editors
Retail Revolutions: Exploring
the impact of e-commerce on local physical retailing is based on a survey of 9,500 people across 30
Ellandi-owned community shopping centres in the UK.