canadian retailers to become more profitable in 2017

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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

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Page 1: Canadian retailers to become more profitable in 2017

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

Page 2: Canadian retailers to become more profitable in 2017

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.