Modern Australian
The Times Real Estate

.

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

The SEO Benefits of AI-Optimized Landing Pages: Smarter Metadata, Faster Load Times

Landing pages are integral to the conversion funnel in digital marketing. Yet, when SEO works well to drive traffic to the landing page, it's just as crucial for the design...

How to Segment Email Lists Based on Content Engagement (Not Just Demographics)

Email segmentation generally refers to age, location, gender demographic, and conventional elements. While this could be helpful information, it does not encompass every aspect of what an audience might like...

Sydney’s Electricians Helping Cut Business Costs

Running a business in Sydney isn’t cheap. Between rent, wages, equipment, insurance, and endless operational costs, it’s no wonder business owners are constantly looking for ways to save money without...

The Role of CDNs in Enhancing Headless CMS Performance and Reliability

A headless CMS provides businesses with the ultimate freedom for content management and output possibilities across any number of channels. However, when the infrastructure is not ideal, content can load...

Fix These 5 Technical SEO Issues Hurting Your Perth Business Rankings

Perth businesses face unique challenges when competing for visibility in local search results.  While many business owners focus on content creation and Google Business Profile optimization, technical SEO issues often lurk...

How a Professional Bookkeeper Can Help Your Small Business

Running a small business in Australia comes with many responsibilities, from managing day-to-day operations to ensuring compliance with tax and financial regulations. One of the most critical aspects of business...

No Dig, No Drama: Sydney Pipe Relining Explained

You know that feeling when water starts pooling where it shouldn't? Or received a quote for pipe repairs that made your eyes water? Let's chat about...

The SEO Benefits of AI-Optimized Landing Pages: Smarter Metadata, Faster Load Times

Landing pages are integral to the conversion funnel in digital marketing. Yet, when SEO works well to drive traffic to the landing page, it's just a...

How to Reduce Turbo Lag with an Upgraded Mazda BT-50 Exhaust System

Are you struggling with turbo lag affecting your driving experience?  Did you know upgrading your Mazda BT-50 exhaust system could be the key to u...

How to Segment Email Lists Based on Content Engagement (Not Just Demographics)

Email segmentation generally refers to age, location, gender demographic, and conventional elements. While this could be helpful information, it doe...

6 Qualities to Look for in Local Caravan Dealers

If you're searching for reliable caravan dealers in Campbellfield, it's essential to choose a dealer that offers quality products, excellent custome...

How to Repair a Faema Coffee Machine: A Practical Guide for Coffee Lovers

Introduction If you’re the proud owner of a Faema coffee machine, you already know that it’s more than just a kitchen appliance — it’s a vi...

Smart Health Decisions in Your 30s, 40s, and 50s: The Ultimate Prevention Guide

Making informed health decisions becomes increasingly important as we navigate through different life stages. What may have seemed unimportant in our ...

Sydney’s Electricians Helping Cut Business Costs

Running a business in Sydney isn’t cheap. Between rent, wages, equipment, insurance, and endless operational costs, it’s no wonder business owne...

Can Air Conditioning Help with Allergies and Asthma?

Living with allergies or asthma can make everyday environments feel challenging—especially during certain seasons or in homes where dust, pollen, ...

A Fast Charging Power Bank and Wireless Power Bank: The Future of Power Bank Technology

As the use of mobile devices grows, so does the demand for better, more efficient, faster, and more imaginative methods to power them. Previously re...

How to Extend the Lifespan of Your Power Bank: An Overview

Power banks are vital for ensuring your devices are powered while on the go, especially when on the move, outdoors, or during emergencies. They prov...

What is a Power Bank and How To Choose One

In a world filled with gadgets running out of battery is a real issue. This is where power banks can come in useful. They're portable, they hold pow...

Portable Chargers: How They Work & Essential Tips to Extend Battery Life

Portable chargers (also known as power banks) are essential accessories that keep your devices powered up while on the go — be it outdoor activiti...

How Artificial Tulip Displays Enhance Your Home’s Aesthetic

Artificial tulip displays have grown to be a common option for improving interior decor because of their exquisite look and long-lasting quality. Th...

The Psychology of Relationships: How Therapy Can Strengthen Bonds

Relationships require effort, understanding and communication. Couples and individuals can have better relationships with the assistance of therap...

Taking It Up a Notch: How 12.5kg Dumbbells Fit Into Progressive Overload Training

Photo by Jason Grant on Unsplash When it comes to getting stronger, more sculpted, and better conditioned, one principle reigns supreme in the worl...

Behind the Bowl: What Makes Premium Dog Food Worth the Price Tag?

Photo by Ayla Verschueren on Unsplash When it comes to feeding our four-legged companions, the pet food aisle can be a maze of options—bags promi...

Davines Sustainable Haircare: Revolutionizing Eco-Friendly Beauty Solutions

Davines is a well-known brand in the world of haircare, known for its high-quality products that deliver exceptional results. Its commitment to sust...