It’s called the Amazon effect: How online shopping, or e-commerce, is disrupting traditional retail businesses.
This week, though, a report was issued stating “bricks and mortar not dead,” and that “Kelowna is a haven for investment and is one of the best places for real estate development.”
Issuing the report, a study on commercial real estate, was the HM Commercial group.
“Retail businesses in Kelowna are becoming more and more sophisticated, with a push for culture and experience in contrast to traditional retail plazas and big box stores,” said Jeff Hudson of HM Commercial Group. “Mixed-use developments are a continuing trend in Kelowna, with a focus on live, work and play.”
HM Commercial Group said it reached out to others regarding its prediction of the Amazon effect in the Okanagan.
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Patrick Sullivan is the chief operating officer of Primaris Management, which owns Orchard Park Shopping Centre. He says there’s been change a-plenty because of online shopping, including the closure of some of Canada’s largest retailers.
“Over the past 25 years, there have been few enclosed malls developed in Canada and retailers have steadily reduced their store count in most markets,” said Sullivan. “Large tenant failures, such as Target and Sears, coupled with the growth of e-commerce during the last few years, has accelerated this movement.
“Retailers have realized the importance of maintaining bricks and mortar, recognizing that market coverage can be achieved by operating fewer stores while having an online presence. Other retail developments must differentiate themselves from competing projects, either through the introduction of alternative uses, such as food and entertainment, or by creating a mixed-use project.”
The 2018 HM Commercial Report was unveiled to a large group of property owners, developers and investors at a presentation at the Innovation Centre on Thursday. The report is available online at hmcommercial.com/reports.
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