Transactions in the retail sector rose by a staggering 160% year on year (Y-o-Y) in the first half of 2022 and more than 100% every quarter in Q2 of CY2022. The study was conducted by the real estate consultancy firm CBRE (Coldwell Banker Richard Ellis).

In the Post Pandemic era, customers are seeking in-store experiences greatly since the pandemic caused them to sustain themselves among the four walls and gather their stuff online. Overall online sales globally have elevated to 33.9%, and retail sectors are seeing large negative falls. The pandemic has left a long-lasting impression on the retail sector; customers prefer online shopping rather than going into stores. In a press release on Thursday, CBRE stated that ‘Experiential Retail’ implies that E-commerce has grown extensively, which has caused an upshift in brands’ physical presence.

The report further stated that retailers’ ongoing exploration of innovative ideas would attract consumers’ attention and increase sales in online and offline stores. The retail sector has witnessed more than a 500 per cent surge in project completions during H1CY2022 is witnessed by the retail sector.

However, brands are resizing and revamping their physical store strategies across different cities. This is done to diversify their portfolios and expand their footprint as ‘in-house experience’ becomes an important borderline to bridge the retailer-consumer gap.

Commenting about the result of experiential factors on real estate in retail, Anshuman Magazine, Chairman and CEO -for India, South-East Asia, Middle East and Africa, CBRE, quoted, “Physical retail locations must evolve into places where people want to go rather than have to go if they are to succeed in the future. Covid-19 has modified consumer priorities, (and) it is therefore imperative to deliberate on how real estate stakeholders can improve their spaces to enhance the experience quotient and subsequently value.”

The report also mentioned the evolution of thematic design for an enhanced visual experience, considering the real estate as a service (REaaS) approach to deliver digital and physical services and place-making for converting malls to less transactional, more inclusive and adding more entertainment-focused tenants for gen-Z dominated catchment area. These were the report suggesting strategies to improve the consumers’ experience.