SPECIALFEATURE REPORT
Retail Development Industry Post COVID-19 Thoughts Phil McArthur, CSM, CRX, CDP, is the Founder and Chairman of McARTHUR Retail Development Specialists, a Past President and member of the Middle East Council of Shopping Centres and Retailers (MECS+R) since 1996. He shares his insights about the Post COVID-19 period, which can help the shopping centre and retail industry. 1.
Operating retail destinations will regain market share slowly after COVID lock downs. Statistics from China indicate today about 30-50% traffic levels from the Pre-COVID period. The China Chain Store and Franchise Association is reporting that 60% of large mall operators are witnessing sales dropping from 30-70% for the first quarter of 2020. Certain tourist destination that had reopened have now recently closed due to fears of a second wave of COVID-19. On a positive note, regionally, Bahrain allowed shopping malls and some stores to resume business from April 9, becoming one of a handful of countries to roll back measures intended to curb the spread of coronavirus. Under the new guidelines, shop workers and customers must wear masks inside stores. Retailers are to limit the number of shoppers allowed inside their businesses, and if a line forms, stores must enforce social distancing outside. Droves of shoppers were reported returning to their favourite malls, making social distancing management a big challenge for mall operators
A safe-distancing enforcement officer wearing a red armband watches over customers lining up to buy take-away food at a food court in Singapore on April 18, 2020. (Photo Credits: TIME)
28. RETAIL PEOPLE . APR-JUN 2020
2.
With a large decrease in retail sales, many new retail developments globally will be delayed in oversaturated markets. In some markets, small independent retailers and restaurateurs will be hard-pressed to survive. The retail giants with multiple concepts and thousands of locations will have to reduce their overall operations to try to get to break even or curb the losses. That means closing stores. Without retailer demand, new projects will stall or downsize and developers and lenders will be forced to wait for the market to rebound.
3.
Once the dust settles, and the retail and mixed-use development community understands the shifts in the market, unique new projects will take over market share from a tired old malls and retail formats. More mixed-use projects with significantly less retail will emerge. The need for new destinational occupiers will be strong, as well as professional entertainment attractions and food and beverage operators. The necessity of hosting huge variety in fashion categories
