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The latest news and events at Maples Teesdale

| 1 minute read

A compelling reason to move from clicks to bricks

With a global e-commerce market expected to total $5.57tr in 2022, online brands are making their way onto high streets and shopping centres, and it is interesting hearing Bronnie Edwards at Least describing new "digitally native vertical brands (DNVBs) taking physical sites, and at a rapidly increasing rate". Brands who originated online and now making their way in stores, include Glossier, Warpaint and Gym Shark, with the latter having recently opened its first-ever store in Regent St.

DNVBs are taking physical occupation not only as a shop/showroom but also to help create community spaces, events venues and marketing channels, to supplement the increasingly crowded e-comm space. This helps "foster brand loyalty and get real-life feedback by trialling different locations, merchandising techniques and engagement methods". These brands are footfall generators, and help create dynamic, high footfall locations – clearly an appealing proposition to landlords looking to curate and repurpose retail assets.

Ben Francis, CEO of Gym Shark recently highlighted the need for flexibility within the store format itself, telling told Forbes “If you come back to this store in 12, 18 months and it’s the same, then either we’ve knocked it out the park or, more likely, we’ve adapted as we find out what our customers and visitors want from us. If we haven’t changed, then we haven’t listened.”

Landlords and building owners are becoming more flexible by "streamlining the onboarding process and putting the customer (brand) at the centre". Simple lease agreements, flexible terms and listening to the customer's needs are all steps to ensure the transition is a lot faster, smoother and therefore "a compelling reason to move from clicks to bricks".

digitally native vertical brands (DNVBs) taking physical sites, and at a rapidly increasing rate

Tags

arron ratti, retail, commercial real estate, commercial property, e-commerce, retail real estate