Savills Retail Connect Forum Highlights Experiential Retail Trends

The retail industry is undergoing a transformation, with a focus on creating immersive shopping experiences for consumers. The recent Savills Retail Connect forum highlighted the shift towards experiential retail, where physical stores offer more than just products. Integrating digital and brick-and-mortar platforms seamlessly has become crucial to enhance the overall shopping journey for customers. This approach caters to modern shoppers who value both online convenience and in-store experiences.

One key insight from the forum was the significant increase in rental prices across Greater Cairo. West Cairo saw the highest surge, with commercial rents rising by 30% to an average of EGP 1,068 per square meter. East Cairo remained a high-demand area, experiencing a 22% increase in rental rates to EGP 1,239 per square meter. Downtown Cairo also saw a 21% uptick, reaching an average rental cost of EGP 1,092 per square meter.

The forum emphasized the importance of collaboration between retailers/operators and landlords to navigate the changing retail landscape. It also highlighted the value of local authenticity and cultural relevance in shaping the retail sector. Industry experts shared that while increased foot traffic benefits retail projects, the primary retail category typically reaps 60-70% of the advantages, with the rest distributed among other segments.

The retail industry in Greater Cairo is witnessing a shift towards experiential retail and facing notable changes in rental prices. By embracing omnichannel strategies and focusing on cultural authenticity, retailers can adapt to the evolving landscape. Understanding the dynamics between landlords and operators is crucial for sustainable growth in the sector. As consumers seek immersive experiences and convenience, the retail sector continues to evolve to meet their changing needs.