Click Vs Brick Case Study
ABSTRACT
Title: Click versus Brick: The impact of eCommerce on Shopping Centres and the growth of Omnichannel shopping channels
Author: Johann Pretorius
Institution: Faculty of Engineering, Built Environment and Information Technology, University of Pretoria
Date: 21 August 2017
The disruptive effects of internet commerce are being felt by traditional bricks-and-mortar retailers and will increasingly influence shopping centres. Within the shopping environment context, the competition from internet retailers has led to the demise of certain tenants and the birth of new types of retailers. It is, however, also clear that bricks-and-mortar retailing and eCommerce are converging and that shopping centres must adapt their strategies accordingly. …show more content…
Shopping accelerated the process to attempt to put in place a strategic response to eCommerce that would enable retailers within centres to enjoy both conventional and online shopping opportunities (Dixon & Marston 2005:98). Within the developed world shopping centres continued the introduction of loyalty cards and associated schemes to enable them to execute relationship marketing models. Some shopping centres even tried to introduce online centres in an attempt to replicate the shopping centre’s style of retailing in the context of the internet (Dixon & Marston 2005:102).
A previous report by the British Council for Shopping Centres listed key aspects that developers and investors of retail properties identified as critical in responding to omnichannel retailing:
1. Establishing central customer pick-up points, though the respondents said it should be the retailers’ responsibility;
2. Accommodating the technological needs of eCommerce within the physical fabric in shopping centres;
3. Changing tenant mix to ensure the most secure customer draw to shopping centres;
4. Changing the function of servicing areas and means of delivery to shops as these shops take on more of a fulfilment role;
5. Flexibility of existing retail space to accommodate changing retail formats and requirements; …show more content…
Take a more active role in shaping the shopping experience by collaborating with retailers.
3. Shopping centre developers need to explore new formats with differentiated design and structure, increasing the public space component of shopping centres, and focussing more on mixed used developments to offer attractive communities to live, work and shop.
Two messages are currently emerging in terms of marketspace responses to omnichannel retailing from the European retail (developed) environment which do not seem to be sector specific:
(1) bricks-and-mortar stores will remain essential for successful retailing, but
(2) there will be a reduction in demand of the size for retail space.
Retailers are introducing “click and collect” (purchasing online and collecting in-store), “click and deliver” (purchasing online and products delivered directly) and “showrooming” (where shoppers use stores as a place to see, touch and feel merchandise before buying it online) as strategic responses to omnichannel retailing and although retailers are expanding their property portfolios they are reducing their size requirements for these stores (Jones & Livingstone
Title: Click versus Brick: The impact of eCommerce on Shopping Centres and the growth of Omnichannel shopping channels
Author: Johann Pretorius
Institution: Faculty of Engineering, Built Environment and Information Technology, University of Pretoria
Date: 21 August 2017
The disruptive effects of internet commerce are being felt by traditional bricks-and-mortar retailers and will increasingly influence shopping centres. Within the shopping environment context, the competition from internet retailers has led to the demise of certain tenants and the birth of new types of retailers. It is, however, also clear that bricks-and-mortar retailing and eCommerce are converging and that shopping centres must adapt their strategies accordingly. …show more content…
Shopping accelerated the process to attempt to put in place a strategic response to eCommerce that would enable retailers within centres to enjoy both conventional and online shopping opportunities (Dixon & Marston 2005:98). Within the developed world shopping centres continued the introduction of loyalty cards and associated schemes to enable them to execute relationship marketing models. Some shopping centres even tried to introduce online centres in an attempt to replicate the shopping centre’s style of retailing in the context of the internet (Dixon & Marston 2005:102).
A previous report by the British Council for Shopping Centres listed key aspects that developers and investors of retail properties identified as critical in responding to omnichannel retailing:
1. Establishing central customer pick-up points, though the respondents said it should be the retailers’ responsibility;
2. Accommodating the technological needs of eCommerce within the physical fabric in shopping centres;
3. Changing tenant mix to ensure the most secure customer draw to shopping centres;
4. Changing the function of servicing areas and means of delivery to shops as these shops take on more of a fulfilment role;
5. Flexibility of existing retail space to accommodate changing retail formats and requirements; …show more content…
Take a more active role in shaping the shopping experience by collaborating with retailers.
3. Shopping centre developers need to explore new formats with differentiated design and structure, increasing the public space component of shopping centres, and focussing more on mixed used developments to offer attractive communities to live, work and shop.
Two messages are currently emerging in terms of marketspace responses to omnichannel retailing from the European retail (developed) environment which do not seem to be sector specific:
(1) bricks-and-mortar stores will remain essential for successful retailing, but
(2) there will be a reduction in demand of the size for retail space.
Retailers are introducing “click and collect” (purchasing online and collecting in-store), “click and deliver” (purchasing online and products delivered directly) and “showrooming” (where shoppers use stores as a place to see, touch and feel merchandise before buying it online) as strategic responses to omnichannel retailing and although retailers are expanding their property portfolios they are reducing their size requirements for these stores (Jones & Livingstone