Before the pandemic of 2020 struck, retailers were already being forced to adapt their practices to consumers’ shifting desires. Customers have increasingly demanded easy, quick, contactless methods to purchase items, and the pandemic only strengthened these desires. Now, there appears to be no going back from the hybrid model of in-store operations and online shopping.
Flexible Shopping Options
Nearly 80% of retail businesses now report that they will implement more flexible shopping models that accommodate consumers who wish to shop in-store; those who want to shop online and receive their items via delivery; and those who want a mix of both options.
Flexibility is the name of the game in the 2021 commercial real estate market. Luckily, businesses seem to have gotten the hint and are responding accordingly.
The “Coffee Shop” Model
For post-Covid commercial real estate needs, an option to consider is structuring the storefront in the same way that coffee shops operate. Coffee shops can offer mobile storefronts in which customers can order, pay, and then easily pick up their items without any extra steps.
Businesses that are able to implement a similar model in all areas of commercial real estate will be able to reduce the space required for their business, which will, in turn, reduce their rent costs. Additionally, there will be fewer staffing needs, which will lead to higher profits for the business.
What About Those Businesses Who Can’t Implement a “Coffee Shop” Model?
Again, flexibility is the key for all businesses moving forward. Shops that can’t quickly adopt a “coffee shop” model can still have an online presence while allowing for some in-person shopping as well. Boutique retailers are already in a decent position going forward. They tend to have a solid online presence and have their storefronts situated in places where their consumer base is likely to find them.
What are the Biggest Hurdles for Retailers Going Forward?
Online selling has become relatively streamlined by many retailers, but the other side of the equation poses a logistical problem: returns of online purchases. Retailers have overcome this problem by allocating parts of their stores to serve as “micro-fulfillment” centers. This has the effect of reducing costs for both the consumer and the retailer.
What are Other Considerations for Retailers in the New Shopping Climate?
A massive push in the world, especially in the new generation of consumers, is for sustainability. Consumers want to know that the brands they support use ethical and sustainable practices in order to leave a smaller environmental footprint.
Therefore, retailers must find ways to use less plastic, ethically source their products, and reduce waste while maintaining a reasonable price point. This is going to be an essential consideration for businesses to keep in mind in a post-Covid world.
Final Thoughts
The retail world is not the same as it was ten years ago. It’s not even the same as it was one year ago. Consumer preferences are constantly shifting, and retailers need to be ready to respond by providing flexible, sustainable, and convenient options to appeal to their audience.
Hi! We’re Josh and Jolene Baijot, the creators of this website. We’re also Commercial Real Estate Agents in Washington State. Thank you for taking the time to read this blog post. We appreciate your time spent on this site. You can connect with us on Facebook, Instagram, or contact us through this website.
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