Insights from the CBRE Adelaide Retail Tour
On 15th and 16th October, FRP Capital had the privilege of participating in the CBRE Retail Tour in Adelaide, South Australia. Over the course of two days, we visited 11 different shopping centres, gaining invaluable insights from 40 industry experts dedicated to enhancing and working within the retail landscape. The tour offered a unique opportunity to delve into the nuances of retail and shopping centre asset management, valuations, and the ever evolving dynamics of customer engagement.
Key Themes
Throughout the tour several key consistent themes and strategies emerged from the tour and insights.
Understanding Your Customer
The necessity of truly knowing your customer has never been more vital. As retail environments evolve, a deep understanding of customer preferences and behaviours is crucial for tailoring tenants, experiences and corresponding products that resonate.
Placemaking Initiatives
Activating areas of shopping centres through placemaking strategies can foster a sense of community. By clustering similar uses—such as food courts, entertainment areas, and retail zones—centres can enhance foot traffic and customer engagement.
Refitting Lower-Performing Spaces
The need to refit and replace underperforming tenants such as discount department stores (DDS) is increasingly apparent. As consumer preferences shift, so too must the offerings within shopping centres to meet evolving demands.
Tenant Reinvestment
One significant takeaway was the importance of prioritising and incentivising tenants to reinvest in their fitouts. Well-designed spaces not only enhance the shopping aesthetic and experience but also attract and grow a loyal customer base.
Remixing Tenants
Adapting to current trends involves a careful remixing of tenants. Shopping centres that can pivot quickly to include trending brands or experiences are likely to thrive in the competitive retail landscape.
Family-Friendly Environments
There is growing pressure on larger shopping centres to develop quality family-friendly Entertainment and Leasure Precincts (ELP’s). This not only enhances the shopping experience but also encourages longer visits and repeat patronage.
The Adelaide Shopping Centre Market
The Adelaide shopping centre market is characterised by a dominant independent supermarket sector, which plays a crucial role in the local retail landscape. During our tour, it became clear that larger shopping centres are actively reinvesting in their assets through upgrades and new developments, ensuring they remain competitive.
An interesting aspect of the Adelaide market is the high percentage of private ownership in neighbourhood shopping centres. This often results in a more personalised approach to asset management and community engagement, allowing for tailored strategies that resonate with local consumers.
The CBRE Retail Tour provided a wealth of knowledge and a deeper understanding of the challenges and opportunities within the retail sector. At FRP Capital, we recognise the importance of staying ahead of trends and embracing innovative strategies to enhance our portfolio. As the retail landscape continues to evolve, our commitment to understanding customer needs and fostering vibrant shopping environments remains unwavering. We look forward to applying these insights to create value for our investors and the communities we serve.
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