The year 2023 starts in a challenging economic landscape, but a more promising sustainable future. Latest mall retailer data shows that sustainability-related tenant offers have risen significantly in 2022, with the word green appearing in up to four times as many offers over the last year. The trend is an indicator for retailers on ad targeting. Through our aggregated data from over 250 malls across Europe and Asia, we can see mall retailers and owners adapting to the evolving customer demands and expectations. For example, it is clear that retailers believe consumers are increasingly seeking sustainable options. Even though the majority of the offers we see each year are very practical with deal-related information, our study indicates that tenants next year are using ad opportunities to impact sustainable behaviors beyond what used to be just organic food.
Economic crises always encourage retailers to close some points of sale and concentrate their activity on larger stores. They can do the same turnover (physical & e-commerce) with fewer points of sale. The competition between landlords will therefore increase. This will result in landlords finding new solutions and services for retailers and customers to make a real difference. Landlords need to concentrate more accurately on their assets and their customers.
Positive signals from Asia are predicting that physical retail will be back on the growth path as a direct impact of the reduced Covid restrictions. We learn so much from data. In the eCommerce era, retail real estate must analyze its customers and campaigns to develop successful consumer digital journeys with AR experiences, the first stages of Metaverse. Adapting to change and sustainability is the only way to stay successful, especially in these unprecedented times. You need to have centrally managed, robust digitized solutions to keep all functions of your business on the same page. Real estate is no exception.
Read more about expert opinions in our Online Special: “Industry Outlook 2023”.