The growth of omni-channel retail is making the actual point of sale less relevant, but the physical store as important as ever, observes a report just released by ICSC Research. “Most omni-channel strategies are anchored on store portfolios, with their value extended from being a point of sale to the backbone of omni-channel sales and marketing strategies,” notes the report, titled Exploring New Leasing Models in an Omni-Channel World. “Consumers are engaging with multiple in-store and online touchpoints before transacting. As such, it is the contribution of a store to a sale that matters, not the POS.” Some sales take place online after a consumer has researched a product in the store; others take place in a store after consumers have done their research online; and purchases are researched and paid for online, but are picked up from the store. With stores playing a role in all these aforementioned transactions, how does this get reflected in the lease agreement? “Many retailers and owners considered current leasing models to be ‘working, but creaking,’” the report notes. “As a result, many retail real estate professionals are beginning to reevaluate existing leasing models and rent metrics in the United States and Europe to assess whether traditional approaches remain fit for purpose.” The report outlines several ways leases can be adapted to account for online retail activity.
For the full report, click here.
