Shopping centre landlords have been at the forefront of adapting to the change in consumers' retail habits but there is still further to go as the sector continues to evolve.
Given there is a new trend hitting consumers every day, trying to make a mall relevant is a 24/7 proposition. Once, landlords just built a big box at one end for a department store, added a supermarket, some specialty shops, a few fast-food outlets and a car park.
But in the 21st century, consumers are faced with a new trend, almost hourly, with the arrival of new shopping apps, a celebrity label launched on Twitter and the ability to go online night and day.
However, the evidence is overwhelming – people still like to "go to the shops". If the offering is relevant people will still do some "retail therapy", or have a coffee, a meal or just watch the world go by.
As the landlords keep saying, malls are the new town centres.
All the big landlords – GPT Group, Stockland, Lendlease, Mirvac, AMP Capital, Vicinity Centres and Scentre – have redeveloped a large swathe of centres over the past few years and "curated" them to focus on the local community. Vicinity, for instance, is due to open the new Lego Discovery store at its Chadstone centre.
As has occurred among retailers, where 16 have disappeared over the past year, it's a case of adapt or perish. And given the inflow of new international brands, the battle has intensified for the consumer dollar.
According to the latest Australia Retail Investment Outlook Report released by Cushman & Wakefield, the Australian retail sector is being buffeted by cyclical and structural changes, which will provide opportunities for retailers and landlords alike.
Shorter term changes in the economy and financial markets are influencing spending and investment patterns, while longer term shifts in demographics and technology are changing the way people live and shop.
Nick Potter, head of retail investments, Australia and New Zealand, said structurally, longer term changes were evident as the Australian lifestyle shifted away from large weekly food shopping, towards daily food purchases and increased consumption of prepared meals.
At the retailer level, this evolution has driven the development of new "fast dining" options to meet a growing consumer need. Landlords and developers have used these changes to increasingly pursue mixed-use projects and secure "highest and best" site usage.
"With a significant drop in retail centre-based floor space per capita, limited greenfield retail development opportunities and a shift towards daily rather than weekly food shopping, mixed-use retail continues to emerge as a major category in Australia's retail landscape," Mr Potter said.
Speaking at the Cushman & Wakefield retail outlook on Thursday, Joanna Russell, the new general manager of retail development for Frasers Property Australia, said it was not just shopping centres that were changing, with retailers evolving as well and investigating ways to better engage with their customers.
"Mixed-use developments are an increasingly important category in response to the continued population growth we are experiencing in our major cities,' Ms Russell said.
"The trend towards old-style town centres means there's greater emphasis on the concept of place making. This relies on high quality common areas, a blurred line between public and private spaces, and the integration of traditional and non-traditional retail uses like local government offices, community centres, medical, childcare and education services.
"This changes the nature of shopping centres and the role they play in local communities. The sameness of the cookie-cutter approach to many existing shopping centres is dying and we're finding consumers are more inclined to visit and stay in retail centres that offer experiences, and more than just shopping."