On this occasion, we are pleased to present the testimony of Gaetano Graziano, Deputy Executive Chairman “ADCC-Italia” Retail Real Estate Leasing & Shopping Centre Manager, Italy. Graziano shares his thoughts on the scenario real estate will face after the pandemic, new challenges and strategies to overcome them, and the incorporation of digital processes in companies.
Which are the real challenges posed by the pandemic?
Gaetano Graziano: The real challenge for the existing structures is to remodel and redevelop the current commercial spaces. In a few words: to rethink a less standardised, more original, unique model of shopping centres that also responds to territorial needs.
And what happens to retailers?
Gaetano Graziano: We all know that the way of selling is changing and that it embraces all sectors. We need to move from a purely physical business to a physical/virtual omnichannel model. Customers (especially young people) are no longer looking for a traditional shop, but a hybrid that equates its digital representation with its purely physical one.
Are companies ready to transform digitally?
Gaetano Graziano: With the acceleration in the use of technology in all sectors, and during this phase of the pandemic, it is no longer possible to discuss whether companies are ready or not ready for digitization, they must necessarily transform, adapting to the present. CRE companies are incorporating digital processes and toolkits to their structure, but they have started too slowly. The main purpose is help real estate organizations with different functions through these digital tools.
It is no longer possible to discuss whether companies are ready or not ready for digitization, they must necessarily transform, adapting to the present
Thanks to the perspective of the Deputy Executive Chairman, we confirm what many colleagues and experts in our industry have affirmed long ago: The key to moving forward in this industry is to reinvent ourselves, adapt and adopt digital practices that allow us to combine spaces and meet new needs that arose with the pandemic.
How important is specialty leasing in this new scenario we are experiencing? How can it help to reduce the empty spaces?
Gaetano Graziano: The specialty leasing in shopping centres has represented a large contribution for years, both in economic terms and, in some cases, in attracting structures. During this particular period, they also help to keep shops open.
What are the most disruptive solutions we can find on the market?
Gaetano Graziano: Currently, there are many interesting solutions ranging from digital marketplaces to virtual shopping and, above all, to click & collect that can greatly help structures with the first steps towards digitization.
Do organizations fear change? Why?
Gaetano Graziano: More than fearing change, they fear not being able to adapt or transform the old sales and management methods without completely overturning them, with the expenditure of large economic resources.
What impact can the delay of digitization have for an organization?
Gaetano Graziano: Technology will be a key factor in making sales points more attractive, increasing the level of service, improving the shopping experience, and increasing the bond with digital consumers (native and non-native). Those who do not adapt will unfortunately remain out of any market logic.
The time to act is now. We have the tools, the information, the experience of other markets and colleagues, the backup of data and technology on our side. All we have to do is move on and put into practice the advice of those who know the most. Give the green light to change and don’t be left behind!
