Chopping shopping

Project details

Full project title: The influence of retail structural change in the evolution of sector allocations in commercial real estate investment portfolios

Duration: 2018-2019

Funded by: IPF Research Programme

Project team:

• Grazyna Wiejak-Roy (project lead)
• Dr Deirdre Toher
• Dr Jim Mason
• Professor Jessica Lamond

Project summary

Much has been written about the current state of bricks and mortar retail, in particular focusing on the health of the high street and shopping centres in light of the impact of e-commerce on consumer purchases of goods and services. However, there has been less discussion of the influence of omni-channel retailing and the potential consequences this may have on allocations to the retail sector from an investment perspective.

The IPF Research Programme (2015 to 2018) has commissioned UWE Bristol, led by Senior Lecturer Grazyna Wiejak-Roy, to undertake this research. The study considered the fundamental question of what influence to date the many changes in retailing have had on allocations to the sector within major, institutional/non-specialist real estate investment portfolios, and what may replace retail should long-term allocations to this sector decline.

The study extended beyond the UK to consider the current impact in a number of locations, including the USA, Australia, Germany, France, Spain and South Korea.

Funders

This research was funded by the IPF Research Programme 2015-2018, and sponsored by a cross-section of businesses representing key market participants. The IPF gratefully acknowledges the support of these contributing organisations:

• Aberdeen Standard Investments
• Addleshaw Goddard
• Aviva Investors
• AXA IM – Real Assets
• Barings
• BNP Paribas Real Estate
• CBRE Global Investors
• CoStar Group
• DWS (formerly Deutsche Asset Management)
• Europa Capital
• GIC
• Grosvenor
• JLL, Kames Capital
• LaSalle Investment Management
• Legal & General Investment Management
• M&G Real Estate
• MSCI
• Picton
• TH Real Estate
• Wells Fargo

Key outputs

• Wiejak-Roy, G., Toher, D., Mason, J., and Lamond, J. (2019). Chopping shopping? Implications of retail structural change on sector allocations: Full report - December 2019. London: Investment Property Forum.
• Wiejak-Roy, G., Toher, D., Mason, J., and Lamond, J. (2019). Chopping shopping? Implications of retail structural change on sector allocations (December 2019) Summary Report. Investment Property Forum.