What: A real estate performance study in pandemic times

Why it is important: Brookfield properties argues that luxury retail outperformed e-commerce in terms of conversion to purchase (20% vs. 3%) with lower acquisition costs.

Brookfield properties operates 19% of luxury real estate in the US, with 830 million shopper visits last year, including Ala Moana mall in Hawai. During pandemic, the real estate operator focused first on setting up the adequate social distance measures, before analysing new trends in consumption patterns. Since 62% of customers buying through Buy Online Pick up In Store (BOPIS) were planning to keep this habit after shopping malls reopened, Brookfield Properties deployed a curb side pick-up programme across 115 shopping centres. They also ease and facilitate via technological support the way retailers can accommodate customers: appointment reservation process, contactless payment solutions, ship from store.

Due to the rise in digital advertising costs (+255% in 4 years), they see physical retail as a good way to acquire customers at a lower cost than digitally. This is how Brookfield properties explains that DNVBs such as Warby Parker, Wayfar, B8ta are opening with them, as well as Amazon which deployed 33% of its Amazon 4-star boutique range in Brookfield properties locations.

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