canadian retailers to become more profitable in 2017
TRANSCRIPT
Canadian Retailers to Become More Profitable In 2017
What’s happening now? How might it help Canadian retailers become more profitable?
Building Density
Infill building activity and allowances for high density development are going to increase
potential traffic for local shopping plazas. New residents have immediate needs when
moving into a new place and for those retail shops that can have a tremendous difference in
sales per square foot, resulting in higher profit margins.
In-Store Automation
Although Canada may be lagging on the adoption of technology when compared to other
places, however in-store automation is spreading. There are big global concerns that some
80% of jobs are to be replaced by robots, devices, and artificial intelligence in just the next
few years.
We are already seeing that at local shops and restaurants, as the technology needed to
virtually replace every in-store function done by humans already exists. This may require
some upfront investment. Yet, it also means the potential to eliminate waste, reduce labor
costs, minimize liability, improve service, optimize efficiency, and increase net income and
profit.
Online Sales
Online sales don’t necessarily have to result in a loss for brick and mortar retailers. Rather,
it is a way to augment and increase same store sales revenues and profitability, as
shoppers can visit a retail location and then complete a purchase from their phones or they
can order online and pick up from the store.
More Efficient Buildings
As commercial properties and individual retail locations are redesigned and remodeled to
be more efficient, retailers have seen a boost in the level of worker productivity and the
wellbeing of their guests. When coupled with reduced maintenance and operational costs,
this trend will continue to contribute more to the bottom line of both retailers and landlords.
Summary
It’s an exciting time to be going into business or growing an existing retail shop in Canada.
By capitalizing on some of the trends mentioned above, commercial real estate investors
could benefit greatly as retailers continue to grow consistently with increasing profitability
and fewer vacancies.