Retail / news
APAC retailers keep physical stores at centre of capital plans as online sales rise
Retailers across Asia Pacific expect online sales to take a larger share of revenue within three years, but they plan to direct the biggest slice of extra capital to physical stores. AI initiatives rank second in planned spending.
Given an additional 10% of capital to allocate, Asia Pacific retailers would direct nearly a quarter to physical store networks, making them the largest single investment category.
Online sales are still expected to grow. Currently, 37% of retailers in the region generate more than 10% of their sales online; that share is projected to reach 61% within three years.
AI-related initiatives collectively represent the second-largest allocation of additional capital. The spending covers efforts to improve operating models and productivity, invest in high-value applications and upgrade technology infrastructure.
The plans place store networks at the core of investment even as digital revenue increases. AI is being explored alongside store spending to support productivity, profitability and business performance.