Even before the coronavirus began its global sweep in early 2020, leaving a reshaped retail landscape in its wake, there was a perception that brick-and-mortar was passé, and that it was e-commerce’s turn to dominate the marketplace — but the evidence doesn’t prove this out. The simple fact remains: physical retail is alive and well. In fact, it continues to provide the bedrock foundation that bolsters online sales success, rather than the other way around. It’s up to all players within the industry to take action and work together to reimagine retail and pave the way for our collective success.
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Next in Retail:
Reimagining the Future of the Industry
We are excited to sponsor The Business of Fashion's newest podcast, Retail Reborn, hosted by Doug Stephens, author and founder of Retail Prophet. Listen to learn more about how the industry moves forward from here.
Our Findings at a Glance
Physical vs digital conversion
The Halo Effect
Storefronts Provide Many Competitive Advantages
Research shows that shopping centers can pull 40% more traffic than their urban street retail competitors.
Retail centers have always been lifestyle hubs, and now more than ever all parts of the industry must focus on building the marketplaces of the future.
80% of total retail sales are attributed to physical stores.
40%
33%
Online retailers that invest in a physical presence are rewarded with an overall incremental sales lift of 26%.
The
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20%
3%
Physical
Digital
We believe that shopping centers should be about much more than pure retail—they should drive greater experiences for our customers. Join us and become a part of our communities.
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Next in Retail is a Creator Lab partnership with Lisa Tegtmeier. Our Creator Lab program showcases a vast variety of creatives from muralists and photographers to experiential chefs and technology virtuosos — solidifying our commitment to art as a pillar of our business.
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New
Neighborhood
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Brookfield Properties is proud to partner with Lisa Tegtmeier, a freelance illustrator based in Hamburg, Germany, who is known for her playful and bold style of charismatic characters.
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Brookfield Properties’ mall, Glendale Galleria draws 300% more shoppers (1.3 million) than the iconic Rodeo Drive which brings in 396,000 shoppers during a three-month period.
We believe that shopping centers should be about much more than pure retail they should drive .
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Digital
3%
Physical
20%
Physical vs digital conversion
Learn more about the Creator Lab
Total
Store
Value
Brand Building
Customer Acquisition
Returns
Center
Point of
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Distribution Center
Pick-Up Location
Chapter Highlights
In-store conversion rates still exceed online sales by a magnitude of six.
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Cognizant “The Road to 2025 Retail Reimagined” July 2017 Euromonitor Scarborough. Notes: Top 10 DMAs include Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Philadelphia, San Francisco, and Washington DC; NYC excluded given its incomparable urban density; Draw refers to adult shopping behavior (18+). “The Halo Effect –How Bricks Impact Clicks” ICSC, 2018 Mall Shopper Sentiment CI Study, August 2020 Coresight Research 2020 and 2019 Store Trackers, YTD comparing Jan 1- July 31, 2020 vs. Jan 1- July 31, 2019
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Euromonitor
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Scarborough. Notes: Top 10 DMAs include Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Philadelphia, San Francisco, and Washington DC; NYC excluded given its incomparable urban density; Draw refers to adult shopping behavior (18+).
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“The Halo Effect –How Bricks Impact Clicks” ICSC, 2018
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Prior to Q1 2020, physical retail sales had been growing at 2% per year and accounted for almost 80% of all retail sales, resulting in an overall retail growth rate of 3.4% per year since 2016.
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The industry knew change was coming. The pandemic only accelerated savvy retailers’ plans to create a seamless path to purchase for their customers, what we now call a "One Channel" experience. Brookfield Properties defines One Channel retail as providing the consumer with a consistent, relevant, and individualized experience across digital and physical assets to deliver seamless engagement with the brand.
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Data shows that strong regional shopping centers deliver a higher count of unique shoppers—40% more unique shoppers during a three-month period — on average than urban retail districts (excluding Manhattan).
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According to an August 2020 Mall Shopper Sentiment Study, 55% of U.S. consumers report they miss shopping at malls, a lot.
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Success for physical retail means staying relevant and continuing to evolve retail centers into hubs of daily life and commerce. Healthy retailers continue their plans to open stores in 2020, with over 3,000 new stores having already opened year-to-date, +5% more than in the same period last year.
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Mall Shopper Sentiment CI Study, August 2020
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Coresight Research 2020 and 2019 Store Trackers, YTD comparing Jan 1- July 31, 2020 vs. Jan 1- July 31, 2019
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In-store conversion rates still exceed online sales by a magnitude of six.
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Cognizant “The Road to 2025 Retail Reimagined” July 2017
