The pandemic is changing the retail market, BNP Paribas Real Estate Poland assists Castorama in property purchase transactions
A BNP Paribas Real Estate Poland team of experts specializing in advisory services focused on the investment market, capital markets and investment strategies provided comprehensive assistance to Castorama in the purchase of five properties from Tesco. The properties are to be revitalized and will be refurbished in line with the chain’s latest concept, while some of them will be extended. The transactions counted amongst the most notable deals concluded in Q4 of last year.
Castorama’s Polish portfolio increased by more than 70 000 sqm of GLA, with five schemes added to the list of the company’s new locations. The properties are to be modernized with the aim of adapting them to the high standards of the new owner, where the customer takes the centre stage irrespective of the shopping format, be it in the traditional store or online, as well as the new reality that facilities of this type will be now operating and developing within. The new locations, bearing the distinctive blue logo with its yellow hyphen, will be designed and fitted-out in line with the chain’s latest concept. Additionally, Castorama is planning on extending the two smallest schemes located in Starogard Gdański and Olsztyn. The GLA of the remaining three properties, located in Rzeszów, Tychy and Ruda Śląska, will not change.
The transaction was concluded as part of an ambitious strategy implemented by Castorama, the country’s DIY industry leader, focused on the chain’s growth and development involving investing in new properties. Retail suffers when in a limbo, and the pandemic has only accelerated the change process. The new circumstances prevailing on the market present opportunities for those that have the ability to adapt and swiftly review their strategies. There is still a considerable number of investors on the market that are not giving up on their growth plans and are in fact looking for new locations. Castorama is indeed taking advantage of the opportunity presented to it. – Mateusz Skubiszewski, Head of Capital Markets, BNP Paribas Real Estate Poland
One of the aftereffects of the COVID-19 pandemic, in addition to the increasing interest shown by market players in convenience centres and retail parks, is also the continuously high popularity of DIY stores. Castorama is a textbook example of how online shopping is not able to meet all customer expectations, while brick-and-mortar DIY stores additionally serve as showrooms and locations where customers can look for advice and benefit from the knowledge of experts in various fields.
The chain is investing and developing its services with regard to specific zones, such as kitchens and bathrooms, where within a single location customers are able to see for themselves and assess how different technical solutions work, as well as how the different furniture, accessories and ornaments fit together in terms of colour, materials from which they are made and size. In addition, customers can draw up a design for a specific room themselves, e.g. a kitchen or a bathroom, as well as ask for advice from consultants and create a design together. This provides a big advantage over online shopping. Customers can carefully view the available products and later include them in their design.
Moreover, the chain’s stores represent an important link in multi-channel retailing, improving the handling of online and telephone orders, while they also act as critical warehouse locations. Additionally, Castorama’s brick-and-mortar stores now accommodate “click and collect” lockers, where a completed order can be collected within 2 hours of its submission. The CastoMat locker system, which made its debut towards the end of the summer holidays, is a solution for people that choose online shopping and contact-free collection of their goods. The sizeable lockers are open 24/7 and are designed to hold large goods. Furthermore, it is now also possible to collect the ordered goods from the chain’s stores pre-packed on trolleys, which makes it much easier to move and load them into the car.
BNP Paribas Real Estate Poland
Last Updated on February 17, 2021 by Karolina Ampulska