Online Retailers’ Impact on High Street Businesses
- Retail job losses expected to increase by 27,000
- Property value in retail sector set to fall by 15.9% this year
- Job and store closures forecasted to rise compared to 2018
- Online retailers disrupting commercial real estate industry
- Experiential retailing influencing investment decisions
- Virtual reality and technology seen as key for future retail success
Online retailers are causing a significant impact on the commercial property market, with job losses in the sector expected to increase by 27,000 and store closures set to rise compared to 2018. The Altus Group’s annual Commercial Real Estate (CRE) Innovation Report reveals that property value is predicted to fall by 15.9% this year due to rising costs and subdued consumer confidence. To counteract this, retailers are turning to experiential retailing and technology to attract customers. Virtual reality and augmented reality experiences are seen as key to the future of retail, with 52% of UK property owners and investors already investing in related companies.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (Altus Group’s annual Commercial Real Estate Innovation Report) and discusses the impact of e-commerce on commercial property market, job losses, store closures, and the shift towards experiential retailing. It also includes expert opinions from Professor Bamfield and Altus Group managing director Guillaume Fiastre. The article is well-structured and relevant to the main topic.
Noise Level: 6
Noise Justification: While the article provides some relevant information about the impact of e-commerce on commercial real estate, it also includes some repetitive statements and relies heavily on predictions without strong evidence or data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of e-commerce on commercial real estate values and investment decisions in the retail and hospitality sectors, affecting property owners and investors.
Financial Rating Justification: The article talks about the decline in property values due to the rise of online shopping and its effect on traditional brick-and-mortar businesses, as well as the efforts being made by these businesses to adapt and compete with online retailers. This has implications for financial markets related to real estate investments and companies in the retail and hospitality sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: No extreme event mentioned in the article, but there is a discussion about the impact of online retailers on commercial property market and high street businesses.
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