Amidst the rise of e-commerce and the ability to purchase nearly everything via your smartphone or computer, many have shown concern when it comes to the retail market. While e-commerce provides a convenient means of obtaining consumer needs, the physical retail market possesses a plethora of attributes that keep consumer traffic running steady. Marcus and Millichap reported that in 2018, transactions online increased by 20% however, only 4% of the Canadian retail activity took a hit. The unique traits physical retail markets encompass contribute highly to their authority within the consumer market.
A major factor contributing to the continued success of retail shops is the consumer experience. The ability to physically interact with tangible means and various services bodes well with consumers. Retail stores, such as clothing shops, continue to see a high amount of consumer traffic; this can be correlated to the desire for consumers to try-on clothing and browse various outlets.
Service-oriented businesses providing services such as fitness centres and restaurants thrive due to the desire for a memorable experience that cannot be obtained through digital means. The ability to create an experience and explore tangible elements continues to be a strong point for the Canadian retail market.
Canada’s retail real estate market continues to thrive when it comes to high-end sales. While luxury goods can be obtained online, many looking to spend copious amounts of money on a product or service would rather do so in person to ensure they are getting their moneys’ worth. The wave of tourism in Canada also contributes to the influx of luxury goods purchased in Canada. Marcus and Millichap reported a 2.4% rise in luxury expenditures in relation to tourism within Canada in the third quarter of 2018. For those in the high-end retail market, the sales continue to grow thanks to the boom of tourism and the demand for luxury products.
Moving into 2019, the forecast predicts favourable outcomes for retail real estate investors. Albeit, the growth of e-commerce is moving rapidly, the plethora of attributes retail shops provide to consumers can ensure their place within the realm of shopping remains at a high.
Learn more about Canada’s retail sector growth here: https://www.redevgroup.com/news-article/canadian-retail-sector-shows-strength