Retaliate Highlights 2019

Online growth is forecast to exceed offline growth over the next 5 years Retail space is likely to remain resilient with up to 18% increase in logistics floorspace Homeware is expected to show the largest increase in demand for floorspace If online sales reach 30% by 2024 , this could reduce demand for retail floorspace by up to 20% with a significant shift towards logistics floorspace Research to help you adapt THE RETAILIATE EVENT emphasised that retail isn’t dead, but it is changing, and we can’t continue to build, buy, sell, and curate retail space in the same way. During the event, Cushman & Wakefield’s Emma Williams and Justin Houlihan presented highlights from our research on the Future of Retail Space (featured above). Digital disruption has its place in the research, but another key driver for change is the rising cost of living, resulting in an overall smaller purse for retail spend. In our base case scenario it is predicted the amount of retail floorspace required will stay stable, everyday essentials will take the lion’s share of consumer spend, creating fiercer competition between the non-essential, non-food retailers. Competitive pricing, brand loyalty and an engaging store offer will be key to ensuring repeat visits. Several sectors are forecast to diminish their physical presence in favour of growing their online presence, but there is a simultaneous switch of other sectors looking to grow their bricks-and-mortar offer. Harnessing these changes and providing accompanying services around these will be vital to creating vibrant, profitable locations. We’d love to speak to you about your specific projects or to help guide your overarching property strategy, so if you would like to retailiate to the changes in the retail market, email UKRetail@cushwake.com to register your interest and we’ll give you a call. WHAT IS THE FUTURE OF RETAIL SPACE? @CUSHWAKERTAILUK @CUSHWAKERETAILUK CUSHMANWAKEFIELD.COM • Open your phone camera • Place over code • Open link FOLLOW US _ SHARE _ AT RETAILIATE WE presented highlights of our The Future of Retail Space research, in collaboration with GlobalData. The research compares 2019 online shopping penetration with projections for 2024, including a 'stretch scenario' where online shopping penetration reaches 30% in all retail categories. A RETAIL SPACE ODYSSEY Highlights “As the role of the store is reviewed; part of that naturally focuses on the SKUs we range in store vs fulfil through digital and delivery channels. This gives a great opportunity both to look at the store estate but also the E2E supply chain and supporting logistics network.” TIM CRIGHTON – Partner, EMEA Logistics and Retail at Cushman & Wakefield 04 CUSHMAN & WAKEFIELD No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. © 2019 Cushman & Wakefield LLP. All rights reserved. * Stock Keeping Units (SKUs)