#Mapic2014 Ecommerce has biggest impact on shopping centre market – survey

Of all the factors affecting the European shopping centre market, ecommerce is having the most significant impact, according to a new survey by Cushman & Wakefield.

The survey, which canvassed the opinions of property owners and managers representing nearly 1,500 centres, revealed that 68% of respondents either ‘agreed’ or ‘strongly agreed’ that ecommerce is the most significant factor affecting the sector.

Justin Taylor, head of retail at Cushman & Wakefield in EMEA, described the impact of ecommerce as transformational. ‘Whilst we recognise that ecommerce is not the only factor driving the market, it is embedded in every aspect of retail from value and quality through to brand and therefore in our opinion, it is transformational for the industry.’

The top priorities for landlords overall were found to be improved centre design, followed by a stronger food and beverage offer and more in-store and in-centre technology.

Interactive screens are the most adopted technology in-centre, followed closely by landlords operating their own transactional website and operating free Wi-Fi. Interactive mobile apps are next in line as mobile technology increases in importance, the research found.

One area of strong agreement among respondents was logistics which is seen as a major area of opportunity to improve service and efficiency as retailers move towards omni-channel selling and look to capture customer attention and loyalty.

The quality of the shopping centre environment and of the services available is expected to improve and centre managers as well as retailers will be looking to capture, analyse and make use of the vast amount of information open to them on customer behaviour. Greater and more intensive use of loyalty programmes will be one way forward.

David Hutchings, head of EMEA investment strategy, said: ‘Large multi-purpose destination centres that appeal to the whole family will dominate in the future. However, size is not everything and there will be room for more diversity, with small, well-focused urban galleries for example as well as more local convenience as a strong anchor in all catchments. The message is clear: centres need a clear ID and “reason to be”.

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