So what does it mean for retailers?
As global trends move towards online retailing, it’s easy to see why retailers are for the idea. Soaring rent for retailers have been reported by the Sydney Morning Herald as being more than those of London, tokyo and Hong Kong - notorious for their exceedingly high costs. We come in second only to New York! And other states aren’t far behind
So you’d think that we’d be getting something for those higher rents? According to CB Richard Ellis, rent accounts for between 17 and 25% of a fashion retailers gross profit - compared to around 7.6% in the US.
So, what should retailers be doing about it? Is a physical shop neccesary, or is online only an option? It’s commonly reported by retailers that also offer online shopping facilities that they get a mix of both types of shoppers. A lot of shoppers will browse the shop, but end up buying online. So while it looks like having online services is necessary, retailers shouldn’t be giving up their stores yet! It’s a waiting game now - who knows, maybe in years to come everything will be online?!
Let us know what you think - comment on our blog below!
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Retailworld Resourcing is a recruitment agency that specialises in the retail sector. We place people in retail jobs in New Zealand and retail jobs in Australia, throughout all areas and levels within the retail industry.
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