OUTLOOK 2024: “Brick-And-Mortar Retail Is Under Even Greater Pressure Than Before”

Basically, the challenges the placemaking industry is facing are the same as they were ten years ago when eCommerce robbed brick-and-mortar retailers of market share and, above all, growth. However, due to the coronavirus, declining footfall in city centers, a growing proportion of online retail and a simultaneous reluctance on the part of consumers to spend, primarily driven by inflation, brick-and-mortar retail is under even greater pressure than before, especially in city centers and shopping centers. These shopping destinations need to be particularly revitalized, and this is where retailers, investors, landlords and city marketing departments are equally challenged to develop clever concepts – concepts that turn city centers into attractive meeting places, not only in terms of shopping but also in terms of diverse overall experiences. And these are experiences that online retail can hardly offer.

The opportunity for city centers is to create a real shopping experience for people, where they can get together and feel well advised by sales staff, test and customize products, and pay prices that they see as fair and online-compatible, before ending the day with a good meal or a concert in the inner city.

Falling rents can contribute to more retail diversity in city centers. At the same time, further opportunities need to be created for uncomplicated and convenient visits to inner cities. For example, by expanding cycle paths and public transport connections and offering sufficient low-cost to free parking spaces – because high parking fees are a deterrent.

Ultimately, the sector could also do with an upturn in the overall economic and political situation in 2024, in the hope that this will improve consumer sentiment among the population.

Filip Vojtech

Filip Vojtech is a Geomarketing expert for the retail sector at GfK.