Online and off, new strategies for fashion retail’s changing needs
The anticipated onslaught of online retailing may come at a cost for landlords, who will have to rethink their strategies as 25- year leases cease to make sense in the age of digital. Although online retail currently contributes only about 1% to total retail sales in South Africa, online fashion retail appears to be insulated from the drop in consumer spending. Jay Padayatchi, a director at Meago Asset Managers, said long leases were predominantly with anchor tenants that sold food, and leases for apparel tenants rolled over in a much shorter period. However, the growth of "internet penetration - still relatively low in South Africa", meant that malls were "changing their strategies". "They are focusing more on providing entertainment and also providing experiential shopping and they also have to have physical presence. They have to provide more than a place for people to shop, they have to create an experience for a brand and they are adding points for click-and-collect, but it's ...
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