Retail property in developed markets is struggling across most of the world. As the retail business digests the impact of e-commerce, physical stores have closed and many investors have shunned the sector.
But a far more resilient retail picture is emerging in Australia. QIC, one of the markets largest retail landlords recently published research highlighting that while the Australian market has not been immune to the phenomenon of online sales – like elsewhere, penetration rates have increased and this trajectory is projected to continue – it has not been at the expense of brick-and-mortar retail; there is plenty of room for both physical and online retail to grow.
In this video, QIC’s chief economist, Matthew Peter, gives an upbeat snapshot of the future of brick-and-mortar retail, and explains why achieving a flexible tenant mix and active management of the portfolio are key to healthy investment performance.