Pricing Retail Space

The rise in multi‐channel retailing has made assessing the contribution of bricks and mortar to
retailer profits increasingly complex. Current data is limited to the experience of individual
retailers.

Recognising the lack of availability of meaningful data on how important physical retail space is to support multi‐channel retailing, this investigation outlines a methodology for measuring the total contribution of a store to retailer turnover. The research uses this Affordability Model, with expert estimates as to the likely results, to explore such questions as:

• How much do physical stores contribute to online sales?
• How has multi‐channel retailing changed store affordability and how has this impact varied
across product categories (fashion, grocery, etc.)?
• Which retail sub‐sectors (prime high street, secondary high street, out‐of‐town) have
benefited/been hit the most?
• Do official published estimates of expenditure give a good indication of retail sales? What
does the industry need?

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