To attract customers and sell out products, retailers reduce the prices of their merchandise. This tactic however also reduces the profit of sellers. With the additional rise of online shopping and selling, retailers suffer from the considerable loss of profit.

Rentals on the other hand continue to rise which also leads to the downfall of retail marketing. This, according to Stephen Dittman, President of the Chambers Alliance (CALL), will bring down the local businesses of the region if the landowners will not reduce their rents.

Customers’ ways of spending have changed with the trend of online shopping. Purchasing inexpensive products abroad makes an impact on the marketing value.

According to Dittman, reducing the rentals however will lower the value of commercial properties which is a risk that cannot be afforded by the owners. Thus, it is quite hard to convince landowners to reduce their prices.

Reducing the rents will create a significant long-term effect on retail marketing, which is supposed to be the focus of landowners. Instead of focusing on the value of their property, Dittman suggests that landlords should lower their prices if they want the region to benefit from this long-term effect.

On the other hand, retailers also must not simply look into reducing the prices of their merchandise if marketing becomes challenging, but rather on reducing things but maintaining fixed costs.

Learn more from this article.