Modern Australian
Men's Weekly

.

Not all doom and gloom for retail

  • Written by David Krolikowski

 

"Retail not beyond saving – but the blame game needs to stop"
 
 
With retail groups copping a battering during the February reporting season, a Melbourne commercial property expert says that there is a future for bricks and mortar retail – but only if tenants and landlords commit to work together.

David Krolikowski, of Melbourne’s KHQ Lawyers, said that despite the increasing threat of online retail and changing consumer habits, landlords and tenants needed to embrace the idea of collaboration and share the burden of increasing costs for a successful future.

He also suggested that bricks and mortar retailers needed to change the way they sell in order to offer a distinct point of difference and keep customers coming back.

“Amazon’s arrival in December led to analysts forecasting retail doom and gloom, while many large retail groups are feeling the pressure as they deliver half year results,” Krolikowski said.

“Landlords and tenants need to accept the reality however and tackle the online challenge head-on to keep physical retail operating successfully.”

“Overall, those invested in bricks and mortar property (shopping centre and shopping strip owners and their tenants) need to work together to confront the changing face of retail –that is primarily online alternatives, but also by pop-up shops, and a community that is increasing connected both with international suppliers and each other.”

“Landlords who expect that tenants will absorb all increases in outgoings while maintaining or increasing base rents are killing their golden goose, so to speak, so they need to reset their expectations, with an eye on market changes, rather than simply seeking year on year growth.”

“In the current environment it’s not realistic for landlords to simply forecast increased revenue year on year. But when that expectation is imposed upon their staff in the form of KPIs, it can be very difficult for a leasing executive to take a softer stance, without being seen to have failed.”

“Then there is a tendency to blame the other party.  Tenants who continue to do retail the same old way and expect to obtain the same returns are kidding themselves when they blame landlords solely for their woes.”

“The challenge for businesses is to do it better – be active in marketing programs, take advantage of opportunities to advertise, and experiment with things like temporary attractions, or taking on space near competitors to maximise ‘critical mass’ foot traffic.”

“Likewise, landlords that expect that their only role is to provide a physical location for tenants to occupy, consider it’s up to the tenant to do the rest, will find themselves with increased vacancies.”

‘Offering something that isn’t available anywhere else, or by providing another reason for shoppers to visit – like cafes and food outlets should all be a part of forward thinking, and again that is something that needs to collaborative.”

“It’s nothing new, but it’s not that common either.”

Krolikowski added that retail tenants operating in traditional retail sectors also needed to consider that as times are changing, they might be squeezed out by the next phase of retail tenants – such as health services, personal services, food & beverage, even car manufacturers.

“At the end of the day, retail still has a future – it simply needs to adapt, and that goes for both landlords and business tenants”, Krolikowski said.
 

"The challenge for businesses is to do it better"
 

Business

How To Choose The Right Insulation For Your Space

Selecting the appropriate insulation for your home or building is a critical decision that affects comfort, energy efficiency, and present and future operational costs. With various materials and forms available, navigating...

The Value of Professional Rubbish Removal Services

From everyday waste to bulky items like furniture and appliances, finding the right way to dispose of rubbish is not always straightforward. This is why professional rubbish removal services have become...

Why Ugly Websites Sometimes Outperform Beautiful Ones

In the digital age, we're constantly told that first impressions matter, and nowhere does this seem more apparent than in web design. However, a curious phenomenon challenges this conventional wisdom:...

Beyond Clicks and Likes: Why Many Small Businesses in Australia Still Aren’t Leveraging Digital Marketing in 2025

Introduction In 2025, online marketing has become the driving force behind business growth for companies of all sizes. Yet, despite its proven effectiveness, a surprising number of small businesses in Australia...

Eco-smart Car Removal in Sydney: Practical Steps That Cut Waste and Return Value

Sydney’s ageing cars add up to a serious waste stream, and choosing the right removal service makes a measurable difference. Your decision sends metal, glass, tyres, fluids, and batteries down...

Measuring the Success of Your Bus Advertising Campaign

Bus ads turn everyday travel into high-reach media. They move through busy corridors, sit in traffic where people can read them, and keep working after the office lights go out...

5 Signs Your Pool Filter Needs Professional Cleaning

Is your pool water looking cloudy, your pump working overtime, or the jets losing pressure?  These are common warning signs that your pool filter mi...

Social Media: Is It Increasing Rates of Anxiety and Depression?

In today’s connected world, social media has become an integral part of daily life. Platforms like Instagram, TikTok, and Facebook offer opportuni...

Preventive Maintenance Tips for Hydraulic Equipment

Hydraulic equipment plays a crucial role in industries ranging from construction and mining to agriculture and manufacturing. Whether it’s powerin...

Choosing the Right LiDAR System for Your Project

When planning a project that relies on accurate spatial data, selecting the right LiDAR system is one of the most critical decisions you’ll make. ...

The History of Craft Beer: From Monasteries to Modern Breweries

Craft beer has a rich and fascinating history that stretches back centuries. What we enjoy today in trendy taprooms and bustling breweries is the re...

How Natural Pearls Shaped Trade Routes and Global Economies

Throughout history, natural pearls—those rare, untamed treasures formed by nature itself—have exerted a powerful influence on trade networks, po...

How To Choose The Right Insulation For Your Space

Selecting the appropriate insulation for your home or building is a critical decision that affects comfort, energy efficiency, and present and future ...

7 Best Things to Do in Beaufort, Victoria

Beaufort is a charming small town in Victoria’s Goldfields, full of history, natural beauty, and warm, welcoming locals. Whether you’re passing th...

What to Expect During Divorce Mediation & Settlement

Divorce can be a difficult and emotionally draining process, but mediation and settlement often provide a constructive path forward. Instead of goin...

Navigating Disability Services in Perth: Your Questions Answered

Understanding the landscape of disability support can feel overwhelming, especially when you're just starting out. If you’re looking for support a...

How Veneers and Dental Implants Work Together for Full Smile Restoration

Modern dentistry has strong instruments that can produce life-changing outcomes when it comes to repairing a smile that has been impacted by tooth los...

Gen Z’s Are Going off Grid – But Is It Sustainable?

Australia’s cost of living crisis is causing Gen Z to get creative with frugal living options. Earlier this year, young couple Koby and Amelie wan...

The Risks of DIY Air Conditioning Installation and How to Avoid Them

Air conditioning is essential in Australia, especially during the scorching summer months, when homes and workplaces can become unbearable without rel...

How to Find Reliable Air Conditioning Services Near You in Brisbane Northside

Introduction In Brisbane’s hot and humid climate, air conditioning has become more of a necessity than a luxury. Whether it's keeping your home coo...

Enhance Outdoor Living with Lifestyle Awnings

Creating the perfect balance between indoor comfort and outdoor living is something many homeowners aspire to achieve. In recent years, Lifestyle Aw...

Why Buckets with Lids Are Essential for Safe Storage & Transportation

The right bucket can streamline transport and make handling easier day to day. With options suited to food, chemicals and construction materials, th...

Comfort and Style with Ceiling Fans Perth

While air conditioning is common, it is not always the most cost-effective or sustainable solution, particularly during long hot summers. For homeow...

How Professional Air Conditioning Services Improve Comfort and Efficiency

Air conditioning has become a fundamental part of homes and businesses, providing relief from sweltering summers and keeping interiors warm in winte...