Shopping during the holiday season is almost always a guarantee, but where consumers are spending their money is beginning to change, according to retail experts.
Vacancy rates are up in some malls in Winnipeg. To fill the space, pop-up shops are appearing for the holidays. The stores normally last until mid-January, and retail expert Rob Warren said finding tenants beyond that could be tough in today’s market.
“Retailers are becoming less of a place where you go to buy something, and more of a place you got to look at something,” said Warren.
It’s because of the online demand. More people are ordering things through the internet, which means retailers are beginning to shift their focus said Warren.
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St. Vital Centre is sitting at a 3.1 per cent vacancy rate, above the 1.2 per cent average. General Manager Cheryl Mazur said despite the number, sales are up in 2016, and there are no worries moving forward.
“We still see a lot of people coming to the shopping centre. Even though online might be popular, and it is with a lot of people, people still want to experience and come into the mall. They like to touch things, so it’s still going very well,” said Mazur.
Conversations are underway with potential tenants right now, but there is no guarantee when the mall could see new stores come in.
“It just gives us the specialty leasing sides, to see what we can drum up, and who we can bring in here.”
Warren said with more developments popping up across the city, retailers have more options for space, and malls are becoming less attractive.
“Going into a mall is very expensive,” said Warren
“Because the mall wants to make their shared cost. So if you’re going into one of the major malls in Winnipeg, that’s a much higher cost per square foot for a retailer than it would be going into a power centre where you’ve got a basic structure, or into a neighbourhood like Bridgewater or Sage Creek.”
In the future, Warren said shopping will be more digital, in order for retailers to compete with the online market.
“That new Amazon concept that came out, where you walk in, you scan your iPhone or your smart phone when you go in, as you put things in your bag and it automatically charges you, we’re going to see more of that type of thing.”