Canadian Retailers To Boost Profitability in 2017

Canadian Retailers To Boost Profitability in 2017

According to Richard Crenian, multiple elements are working together to help Canadian retailers become more profitable in 2017, which could help commercial real estate investors in boosting their portfolios. The Canadian commercial real estate market is constantly fluctuating and it is important to stay ahead of the trends, and increase your profitability.

Below are tome tips from Richard Crenian on how to increase profits in 2017:

Utilizing Online Markets

Online sales do not necessarily result in a loss for brick and mortar retailers. Instead, they may be a way to augment and increase same store sales revenues and profitability, as shoppers can visit a retail location and then complete a purchase from their phones or they can order online and pick up from the store.

Developing Density

Infill building activity and allowances for high density development are going to increase potential traffic for local shopping plazas. From Richard Crenian’s experience, new residents have immediate needs when moving into a new place and for those retail shops that can have a tremendous difference in sales per square foot, resulting in higher profit margins.

Replacement Technology

Although Canada may be lagging on the adoption of technology when compared to other places, however in-store automation is spreading. There are big global concerns that some 80% of jobs are to be replaced by robots, devices, and artificial intelligence in just the next few years.

We are already seeing that at local shops and restaurants, as the technology needed to virtually replace every in-store function done by humans already exists. This may require some upfront investment. Yet, it also means the potential to eliminate waste, reduce labor costs, minimize liability, improve service, optimize efficiency, and increase net income and profit.

Efficient Construction

As commercial properties and individual retail locations are redesigned and remodelled to be more efficient, retailers have seen a boost in the level of worker productivity and the well being of their guests. When coupled with reduced maintenance and operational costs, this trend will continue to contribute more to the bottom line of both retailers and landlords.

Summary

It’s an exciting time to be going into business or growing an existing retail shop in Canada. By capitalizing on some of the trends mentioned above, commercial real estate investors could benefit greatly as retailers continue to grow consistently with increasing profitability and fewer vacancies. Richard Crenian believes that now is the right time to invest!