Retail Reimagined: The Next Generation of Retail Experience

The mood at the recent retail industry event, MAPIC 2025, was notably optimistic, with Colliers experts highlighting a clear shift in focus from traditional expansion to experience-led, data-driven, and sustainable retail strategies. Here, Uwe Vosse, Niccolò Suardi, Michael Tuck, Damian Harrington, and Nicole Larson share their thoughts on the event, what they heard, and the outlook for retail across EMEA, APAC, and North America. 

Experience-led, mixed-use destinations take center stage 

Uwe Vosse, Colliers’ Co-Head of the EMEA Retail Practice Group, summed up the prevailing sentiment: “The biggest opportunities lie where strong brands, data-driven operations, and ESG-compliant assets meet to redefine the future of retail in EMEA.” Investors and retailers are increasingly aligning around mixed-use destinations that prioritise experience and community, rather than just square footage. Technology and omnichannel integration were recurring themes, with Vosse noting that long-term value creation will depend on “investing in technology, flexible formats, and sustainable operations rather than pure expansion.” This marks a strategic pivot from short-term returns to partnership-driven growth. Damian Harrington, Colliers’ EMEA Head of Research, added, “It’s clear that omnichannel is critical for success for retailers, and it will continue to evolve in multiple ways, impacting retailer sales, store use and optimisation, and logistics networks and operations.” 

Gen Z’s influence and the rise of social commerce 

Michael Tuck, Colliers’ Head of Retail Leasing in Australia, speaking from an APAC perspective, emphasized the growing influence of Gen Z on retail strategy. “The APAC region holds over 45% of the global Gen-Z population,” he explained, “and as this digitally native demographic matures, we’re forecasting a significant increase in online spending adoption, through both social e-commerce and online retail fulfilment.” 

It’s clear that omnichannel is critical for success for retailers, and it will continue to evolve in multiple ways, impacting retailer sales, store use and optimization, and logistics networks and operations. 

Yet, physical retail remains vital. Gen Z consumers crave immersive, stimulating in-store experiences. Tuck stressed the importance of getting the balance right: “The symbiotic relationship between in-store and online has never been stronger or more important to get right.” 

Technology as a competitive edge 

Across regions, technology is reshaping retail real estate. From AI-powered design forecasting to hyper-personalised CRM systems, innovation is no longer optional. “Retail brands need to embrace technology if they want to remain relevant and competitive in a rapidly changing retail landscape,” said Tuck. 

At MAPIC, experiential retail concepts stood out, from surf wave machines in retail parks to large-scale entertainment facilities. These innovations reflect a broader trend: physical retail spaces are evolving into destinations that offer more than just products; they offer memorable experiences. 

Investor strategies: Value, stability, and selectivity 

Damian Harrington shared his perspective on how investor strategies are evolving in the retail sector. “Investor interest is growing across the retail spectrum, supported by greater stability in rents after a long period of correction and re-calibration, particularly post-Covid,” he said. 

High-street retail and established shopping centres are once again attracting attention, buoyed by stable income streams, potential rental growth, and low development activity that supports attractive valuations. The transformation of retail assets into mixed-use, experience-driven destinations is seen as a key value driver: landlords investing in “more than retail” have the opportunity to lead. However, Harrington noted that investor appetite is strongest at the value end of the spectrum. “Convenience and grocery-led outlets, retail parks and outlets remain in high demand, but interest is growing for the right high street opportunities.” 

Niccolo Suardi, Colliers’ Co-Head of the EMEA Retail Practice Group, added, ” There’s a strong willingness to expand: according to a survey shared at MAPIC, 60% of retailers plan to open more than 10 stores in the next two years, and over 20% are targeting more than 50. The physical channel is showing signs of recovery – despite challenges such as inflation and e-commerce competition, footfall is improving and investor sentiment has turned positive.” He also notes the growing geographical appeal in markets such as Italy, Spain, and the Middle East, driven by international brands expanding across Europe. 

This renewed confidence signals a more nuanced approach to retail investment — one that favors operational resilience, consumer proximity, and long-term fundamentals over speculative development. 

Retail construction: A space squeeze despite demand 

From a United States perspective, Nicole Larson, Colliers’ National Research Manager for U.S. Retail Services, addressed the paradox of strong consumer demand versus sluggish retail construction. “Retail construction remains historically low because developers continue to tread cautiously amid elevated financing costs, tariff uncertainty, and economic headwinds,” she explained. 

Since 2020, only 21 million square feet of new retail space has been listed for lease, which is less than 5% of national availability. Developers are prioritizing sectors like multifamily and industrial, which offer faster yields. As a result, retail is facing a “space squeeze,” where demand for well-located properties far outpaces new supply. 

Adaptive reuse and redevelopment on the rise 

Elevated construction costs – still 30–40% above pre-pandemic levels – are reshaping the development pipeline. Indeed, speculative ground-up projects are rare, with developers favouring adaptive reuse and redevelopment of former big-box or mall anchors. 

High-growth markets such as Texas and Florida are attracting investment, but the overall pipeline is skewed toward necessity-based, experiential, and mixed-use formats. “Retail supply growth is expected to remain modest through at least 2026,” she added, with annual deliveries projected to stay below historic norms. 

The future of retail: Living platforms 

The overarching insight from MAPIC 2025 is clear: physical retail is not in decline — it’s being redefined. Vosse captured this shift succinctly: “The future belongs to those who treat their stores as living platforms that connect brand, people, and place.” Suardi added: “Future-facing brands and assets are thinking in terms of experience and community, not just transactions. Physical retail wins when it becomes a place of connection, culture, and storytelling.”  

Retailers and investors must embrace deeper collaboration, align brand strategies with property innovation, and leverage consumer data to stay ahead. The winners will be those who prioritize long-term value, sustainability, and experience over short-term gains. 

Together, these reflections paint a picture of an industry in transformation. One that’s embracing change, driven by technology, and focused on creating spaces that resonate with the next generation of consumers. Learn more about the state of retail and the future outlook in our global retail report.