Page 49 - Sep-Oct 2021

Has Covid-19 Changed Retail Expansion?
Retail expansion has long been known as the physical expansion of a brand’s store footprint in either its home market or abroad, and while this
is most certainly still the case and is once again picking up speed following the lifting of some pandemic related restrictions around the world (as the
section further below will highlight), has the outbreak perhaps sped up the increased importance of digital and e-commerce and that brands need to
expand in this area. Amid slowing economic activity, Covid-19 led to a surge in e-commerce and accelerated digital transformation. As lockdowns
became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online, raising
e-commerce’s share of global retail trade from 14 per cent in 2019 to about 17 per cent in 2020. These and other findings were showcased in a new
report, ‘COVID-19 and E-Commerce: A Global Review, by UNCTAD and eTrade’.
According to a report by the Spinoso Real Estate Group, since the start of 2021 the amount of store openings announced by retailers is a number
that is significantly higher than that of store closures, according to findings from Coresight Research. Numerous players in the industry are looking to
grow – with lower rent and flexible lease terms as two major factors. Brick-and-mortar retail and expansions plans are on the rise like never before,
significantly outpacing closures.
The Covid-19 pandemic may have forced the hand of many retailers to up their digital game following 18 months of turmoil and change, but long-
term physical expansion still appears to be the way forward for many brands across the world.

RETAIL AND LEISURE INTERNATIONAL SEPTEMBER / OCTOBER 2021