The retail revolution: a changing global landscape

Recently, we at Arcadis released a report which identifies the regions in the world which lend themselves to expansion of the physical retail space. Globally, Hong-Kong sits at the top of the index, with most of the Western European markets concentrated in the top half of the table. Interestingly, the so-called BRIC markets (Brazil, Russia, India and China) where demand is great present other challenges which limit their position in the table.

The report provides a fascinating insight into the regions, as well as the individual markets, their advantages and drawbacks. Of particular interest to the automotive sector is the revolution in retail (p4) and the balance of the optimum retail building portfolio (p25).

Both reflect directly the automotive challenges and provide a fascinating insight into the future… the growth of digital, the need for flexibility and convenience, and the emphasis on premium customer experience. The growth of city-centre brand experience centres such as “Audi City”, “BMW Brand Stores”, “Mercedes me”, Tesla pop-up stores in retail malls and the new mall-based Rockar high footfall retail concept are perfect examples of how the automotive retail landscape is changing from the traditional dealership experience.

“Robust market research and modelling proved to the client that by changing the portfolio into more flexible, convenient locations, revenue could be increased through innovative design and improved customer experience.”


The case study (p26) provides an interesting point for discussion – increasing performance of the retail asset against this new background.  Although the case took place in Asia, the results could easily be applied to urban metropolises in other regions. Robust market research and modelling proved to the client that by changing the portfolio into more flexible, convenient locations, revenue could be increased through innovative design and improved customer experience.  At the same time, the overall cost of the footprint reduced, driving up return on investment.

Have a read of the report.  If you need any further information, contact the experts identified at the rear of the document.  As leading global design and consultancy firm in the built and natural environments, we advise and assist our clients in developing their approach to the ever-changing automotive retail world.

Ed Gibbs

UK Head of Automotive Retail Delivering Brand Experience - Retail Networks +44 7747 559999 Ask me a question