Our world is changing and evolving rapidly, and the retail world is no exception. Read on to get the lowdown on three of the key fit-out trends driving retail tenancies today.
With space and rents at a premium, retailers of all stripes are looking to the latest fit-out trends to save on costs as well as enhance the customer experience and drive sales. From micro-tenancies to lighting to pop-up stores, here's a look at some of the leading trends shaping retail today.
According to Robert Kelly, managing director of Gorman Kelly, “Retail tenants who do well understand the need for fresh, immaculate presentation – simple, bright and inviting spaces with attractive displays and lighting. In addition, they concentrate their efforts on personal service, visual appeal, and depth of choice.”
He says there's a strength around those retailers offering new and original concepts. In particular, he points to Melbourne's new Emporium shopping centre, which offers a wide variety of retailers with diverse fit-outs, many of which are heavily stylised and original – bucking the trend of plain, plasterboard boxes that have littered malls in the past.
With rents on the increase, smaller tenancy sizes are rising in popularity. For instance, news agencies and coffee shops in Australia and New Zealand can be seen eschewing spaciousness in favour of smaller spaces from 100 square metres to the size of a closet. Micro-tenancies allow shopkeepers to save on rental costs while providing landlords with higher returns, so Kelly says we can “expect to see more micro-shops in the future”. Search for properties online to find out more.
A distant cousin of the micro-tenancy, pop-up stores can be seen 'popping up' all over Australian malls as well as trendy neighborhoods as retailers look to capture the attention of the buying public away from online retailers. Pop-up stores allow retailers to rent space by the hour, day, week or month – helping generate revenue for impulse, last-minute and seasonal items. Even national retailers such as Myer are jumping on the bandwagon, featuring pop-up stores at Southern Cross Station in Melbourne and Bondi Junction in Sydney.
There's no doubt that retail is changing with the times. Yet as online sales in Australia skyrocket to record levels, physical stores remain retailers' greatest asset. Factors such as foot traffic and location are vital, but savvy retailers also understand that to stay competitive in today's business climate, they must think out the box and embrace new trends. As Kelly says, “Originality in concept, personalised service and great presentation are the keys.”