Insights

The Pulse of Global Retail: Navigating Key Leasing Trends

5 Key Trends Shaping the Future of Retail Real Estate

As we navigate a rapidly changing world, the retail industry consistently showcases its impressive resilience and capacity for innovation. Despite the challenges posed by a global pandemic and shifting market dynamics, the industry’s emphasis on an experiential economy continues to captivate consumer interest.

During our recent webcast, The Pulse of Global Retail: Navigating Key Leasing Trends, Cushman & Wakefield’s experts came together to examine what is driving the retail industry—from international brand expansion to experiential concepts—and how that is manifesting around the world.

KEY TRENDS

01/	Consumer Behavior and Economic Forces Transform Retail During the webcast, Rebecca Rockey, Deputy Chief Economist & Global Head of Forecasting, highlights the interplay between consumer behavior and economic growth. The session also explores the experience economy, which includes the retail, hospitality and leisure sectors. As consumers increasingly prioritize experiences, they create demand for innovative real estate concepts. Retailers that align with this shift can unlock new avenues for growth and success.
02/	The In-Store Experience Remains Crucial Brands know the best experience is the in-store experience. To engage consumers, landlords and brands are collaborating to develop experiential components that captivate shoppers. Retailers are elevating the in-store experience by designing immersive environments, enhancing store layouts to promote exploration, offering personalized services based on customer data, and integrating technology like augmented reality.
03/	Data and Analytics Lead Retail Expansion Strategies In today’s competitive retail landscape, data and analytics are critical for guiding brands as they expand into new markets. Retailers leverage insights from consumer demographics, traffic patterns, and competitive analyses to pinpoint optimal store locations. As Barrie Scardina, President of Americas Retail Services, noted, “New market entry and expansion today is really grounded in data and analytics to mitigate risk and ensure that the new store results are optimized.”
04/	Retailers Invest in Flagship Ownership A notable trend among retailers is the increasing acquisition of flagship locations, particularly in the luxury sector. As Robert Travers, Head of EMEA Retail, stated, “There is no real estate sector that is as location sensitive as luxury. So, it makes a lot of sense to take control and own your flagship locations.” Owning prime real estate solidifies brands’ presence in competitive areas with rising rental rates. This strategy is also gaining traction among mass-market retailers, enabling them to enhance market presence and invest confidently in store designs without the uncertainties of lease renewals.
05/	Evolving Retail Formats Respond to Regional Preferences As international brands expand into new markets, specific retail formats are thriving. In Korea, shopping centers are increasingly popular due to their weather resistance, allowing for year-round foot traffic. Glenn Yang, Head of Cross-Border Retail in Korea, noted that these indoor malls offer favorable financial terms, making them a cost-effective option for retailers. In the U.S., outdoor shopping centers have gained traction, experiencing a rebound in foot traffic since the pandemic. This trend underscores the importance of strategic partnerships between brands and real estate owners to secure prime locations that enhance customer experiences.

As the retail landscape continues to evolve, both retailers and investors must stay attuned to these emerging trends to navigate the complexities of the market effectively. Retailers are encouraged to embrace innovative strategies, leveraging data-driven insights and investing in compelling in-store experiences that resonate with consumers. Meanwhile, investors should focus on identifying prime locations and partnering with brands that align with the shifting consumer preferences. By collaborating and sharing insights, both parties can capitalize on new opportunities, foster resilience, and contribute to the sustained growth of the retail sector in an increasingly competitive environment.

Speakers

Rebecca Rockey

Deputy Chief Economist, Global Head of Forecasting
Washington, United States

Download VCard

Barrie Scardina

President of Americas Retail Services, Agency Leasing & Alliances
New York, United States

Download VCard

Robert Travers

International Partner, Head of EMEA Retail
Barcelona, Spain

Download VCard

Glenn Yang

Associate Director
Seoul, Korea, Republic of

Download VCard

Alanna Loeffler

Managing Director of Business Strategy
San Francisco, United States

Download VCard

Related Insights

Research

European Retail Radar

Get a detailed overview of the retail real estate industry across Europe, backed by thorough research conducted on transactions in 13 European countries and 231 cities.

Sally Bruer • 9/20/2024

Reimagining Cities - City Skyline Abstract (image)

Research • Economy

Reimagining Cities: Disrupting the Urban Doom Loop

Get valuable insights for optimizing city real estate portfolios.

Rebecca Rockey • 9/19/2024

Research

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.

Dominic Brown • 11/21/2023

Ready to talk?

Our professionals are ready to provide further details on this and many other topics.

Your privacy matters to us

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies

More Options

Agree and Close

These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.

These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.

These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.

Cookie preferences

Agree All

Reject All

SAVE SETTINGS

Essential

Non Essential

Marketing