The coming retail revolution. It’s shopping Jim, but not as we know it…

We are in the midst of a revolution in retail space. Going shopping today does not mean what it used to. There are signs the days of the mega-mall may be over.

Research in Britain shows that slowing sales growth, internet shopping and moves towards more sales per square metre is dramatically impacting the future of where we shop.

The long and short of it is that retail spaces are not going to get bigger, they are likely to contract, and to become part of a mixture of purposes.

Perhaps retail is going to return to its roots. It is interesting to note that the word shop comes from either the Old English word “scoppa” – a booth or shed for trade or work, or from Old French “eschoppe” – a booth or stall.

There are some retail chains that are now showing signs of struggle because it is just far simpler to buy the goods they offer online. Electrical goods and hard copy books are examples.

And now we see a debate breaking out about increases in rates that the Auckland Council wishes to levy against big retail spaces such as Westfield Malls.

Business strategies for the future of retail are going to have to take account of the three trends of less space, more buying online, and slower sales. We are going to have to completely rethink locations, space and activity.

Some creative thinking, as always, will come to the fore and those businesses will prosper while others that can’t work out how to adapt will die.

Take a look at Richard Branson’s Virgin Money Lounges: Banking, not as you knew it.