Building a city for the future
A RETAIL REVOLUTION IS UNDERWAY THAT WILL SEE COMMUNITY HUBS GIVING CONSUMERS A BROADER, MORE ATTRACTIVE SHOPPING EXPERIENCE
THE Covid-19 pandemic has impacted our country in a way no one could have predicted.
While the challenges to our working lives, ability to move around and restricted face-to-face social interaction are well understood, the impact on our buying and selling habits looks set to continue.
Ten years ago, the impact of digital technology on the retail sector was starting, where online trade levels were estimated at two to four per cent of all retail sales in Australia.
Fast forward to 2021, the NAB Online Retail Sales Index shows that since July 2019, online retail sales grew 63 per cent to 2020 and then 20 per cent year-onyear to July 2021.
NAB estimates that in the 12 months to June, Australians spent $49.7bn on online retail, a level that is around 13.6 per cent of the total retail trade estimate, and about 32.8 per cent higher than the 12 months to July 2020.
In simple terms, online retail trade has at least tripled in the past 10 years.
Even prior to the pandemic, traditional “bricks and mortar” retail was being challenged.
In March 2019, the Geelong
Advertiser reported that almost one in 10 shops in Geelong’s CBD were vacant, with the highest number of empty shops on Moorabool St, at 17.7 per cent unoccupied.
Now, due to the ongoing “work from home” advice, our cities are lacking the population to support the retail sector.
According to Resilient Geelong, “Despite a turbulent decade for the retail sector globally, the retail industry has become one of Greater Geelong’s largest employers, employing 12,262 people or 11.8 per cent of its workforce.
While national employment growth in
this industry has been relatively subdued over the past five years (up by 3.0 per cent), Greater Geelong sector growth was primarily fuelled by a strong and expanding population, with internal migration the largest factor.
The Australian has reported that Carmel Hourigan, global head of property for AMP Capital, has highlighted the need for retail to “keep evolving”.
They can do this by becoming “social infrastructure-style businesses” and “community hubs rather than traditional shopping points”.
The function and purpose of central Geelong needs to be defined, and businesses and property owners need to consider the new consumer and their demand for experiences.
Consumers are shopping with their emotions instead of their wallets.
This is reflected in the demand for socially-conscious brands and knowing the provenance of the product.
The central area of Geelong needs to have a strong residential population, a series of defined commercial precincts that are investment-ready, an eclectic shopping experience and a vibrant, diverse nightlife offering.
The work of the City of Greater Geelong and the Victorian government’s partnership – Revitalising Central Geelong – will help create the necessary infrastructure and streetscape to make our CBD functional and attractive.
A refresh of the Revitalising Central Geelong Action Plan is imminent and significant government funding will be needed to support the key priorities.
Coming out of the pandemic, building our city for the future is more important than ever.