The first thing we closed with the arrival of Covid-19 were the locals that did not have essential products: clothing, accessories, decoration, toys… And during this quarantine we have discovered something about the retail, whose future was already questioned by some before touching this health crisis.
Before all this came, the retail was beginning to be demonized by some “experts” in the real estate sector and it is true, who has not thought for a moment that the physical stores were very close to their end? The figure of online stores, delivery men, even drones delivering home orders in the near future was a common thought… The locals continued to be in the top three of the most active assets. desired by investors, but there were more and more demands: smoke vent, very prime area, immense dimensions… It seemed that we trusted retail less and less.
And once again, we are surprised. What has happened at a time when we have little else to do but shop online? Sales are down.
Covid-19 has arrived at a bad time, it would never be a good time for this type of health crisis, but it has arrived and the protection measures have forced us -as everyone has already internalized- to stay at home. In this month and a half (and what we probably have left) of quarantine we have learned to value many things: that the family is better close, breathe fresh air, come home tired and sleep comfortably, time with our children, hugs, kisses, the presence of your colleagues nearby, going for a run, let the sun give us, the importance of entertaining the mind… and in addition to all this, how important it is to have a physical store to go to .
As we have advanced, sales of non-essential products have decreased despite the fact that practically all sales businesses have an online sales section on their web pages.
There are many factors that can affect this drop in sales: the lack of income from the self-employed, the drop in income with the ERTES, the fact that we do not leave the house and therefore do not feel the need to buy new clothes. Indeed, these are circumstances that put sales in check. But there is a fact, which we have personally verified. We need to touch, smell, hold it with our own hands -something we don’t know if we can do so happily after the Corona Virus-, check how much it weighs… We need an expert clerk to advise us. Definitely the reviews we find on the internet are not enough.
In addition, the most famous online and physical sales companies have declared that users are adding more products to their favorites lists, however they are buying less. Another sign that we are waiting for them to open so we can check in person if the product convinces us.
Thus, and against all odds, it is not so easy to replace a physical store with an online one, despite the comfort and speed that technology offers us. The client seeks the complete experience. With this, we are seeing the retail from another prism. Investors are paying attention to it again and at Asset Management Spain, without a doubt, we trust in the possibilities that retail still has to offer. >