Is retail turning back to bricks & mortar?

While e-commerce remains popular thanks to a continued interest in online spending, there’s new evidence showing the continued appeal of the bricks and mortar store. The Australian Financial Review recently reported that despite focus on online presence, there are more and more retailers (particularly in Australia) expanding their physical store reach nationally.

This is evident with leading beauty outlets Mecca and Sephora, both of which recently confirmed store expansion around the nation for 2016, as well as across the ditch in New Zealand.

“Consumer confidence is trending up, the retailing environment is improving and tourism is booming,” says CBRE Melbourne leasing director Zelman Ainsworth.

Sephora attributes their expansion to the changing retail environment, telling Cosmetics Design: “We really want to encourage freedom inside our stores. You should feel free to wander around a store and at any stage be able to touch and feel the products.” A recent Euromonitor report supports this mentality, saying millennial consumers seek “a curated but interactive sales environment” when shopping.

CBRE Sydney head of retail leasing Leif Olsen says the increased interest in bricks and mortar is the result of revamped shopping centres: “Shopping centres are undergoing major redevelopment, which will be supportive of accommodating new brands - both domestic and offshore - over the coming year.”

This revamp is exactly what is attracting international brands to the Oz market, such as Dutch Rituals Cosmetics. The company - which will add three more Oz stores to its worldwide 400 this year - comments: “We believe very strongly in malls, they have a diverse demographic and are a little more representative of the Australian market.”