Amazon and Asos High Street bound? - Licensing.biz

Amazon and Asos High Street bound?

Both will be on the High Street by 2020 says head of retail at Jones Lang Lasalle.
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In eight years' time we will see online giants Amazon and Asos with a physical presence on the High Street.

That's the opinion of the head of retail at commercial property specialist, Jones Lang Lasalle, Guy Grainger.

His comments come as the IPD published new figures from its Q1 property report at an event with the Investment Property Forum, which show further decline for UK shopping centres - according to the firm, shopping centres were 38.4 below their pre-recession values.

Speaking to property investors, JLL's Grainger said: "With a period of flat sakes growth, it's vital that investors pay attention to how much debt retailers have. Peacocks was a fundamentally sound business, but the debt dragged it down.

"The UK consumer has totally adapted to online retailing and we have more online sales than France and Germany added together. But online is not the Holy Grail and the property sector is not going to be killed by online - quite the opposite. A property strategy linked directly to online strategy is the key ingredient.

"Purely online retailers will have more impact with a multichannel strategy and I certainly believe that it won't be long before Asos and Amazon have a physical presence.

"The future could be mixed for fashion retailers though. The nation is getting older and by 2020 there will be 15 per cent fewer 18 to 25 year olds, so the very congested fashion sector, which has been driving rents for some time, won't have as many customers. However, in the short-term, inflation on food and cotton is coming down, so for the rest of the year retailers should be able to protect their margins."

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