The rapid growth of eCommerce has fundamentally reshaped the global retail landscape, pushing retailers to rethink how physical stores engage with modern consumers. Justin Thom, a Director at Galetti Corporate Real Estate, comments.
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Notably, rather than diminishing the role of brick-and-mortar retail, this shift has accelerated the evolution of experience-led shopping destinations that continue to attract consumers, tenants and investors alike.
“It’s true that the rise of online shopping has fundamentally reshaped consumer behaviour,” says Justin Thom. “But physical retail has evolved alongside it. Today, successful retail environments are those that create an experience that consumers can’t replicate online,” he adds.
The rise of experiential retail
The ongoing shift toward experiential retail has been particularly evident in the furniture, homeware and décor sectors, where tactile interaction, spatial visualisation and curated showroom experiences remain central to the purchasing journey.
Retail group giant TFG has doubled down on its physical retail investment, announcing in 2025 its plans to open more than 100 new stores while continuing to expand its omnichannel retail strategy across brands including @home, Coricraft and Volpes. The move reinforces growing confidence in curated physical shopping environments, particularly within the homeware and lifestyle categories
“Retailers are increasingly recognising the value of physical environments that strengthen customer engagement and long-term brand loyalty,” says Thom. “Consumers still want spaces where they can browse, discover products, interact with brands and enjoy a more immersive shopping experience.”
Kramerville: where retail meets lifestyle and design
Justin Thom, Director at Galetti Corporate Real Estate
This growing demand for experience-led retail has been a key driver of foot traffic in specialist precincts like Kramerville, which are designed to prioritise discovery, inspiration and engagement over purely transactional shopping.
“Kramerville’s strength lies in the fact that it operates as an ecosystem rather than just a collection of stores. When you have complementary retailers, designers, studios and lifestyle businesses operating within the same node, it naturally drives stronger engagement, repeat visits and longer browsing times,” shares Thom.
Kramerville Place, a landmark interiors and design-focused commercial property in Johannesburg’s Kramerville Design District, sits at the heart of that ecosystem and is for sale via a sealed bid process with final binding offers due 1 July 2026.
Anchored by TFG and comprising 5,843m² of retail and commercial space on a 9,595m² site, the asset accommodates a diversified mix of showroom, retail, studio and experiential spaces aligned with the character of the surrounding design precinct.
Known to some as “the Coricraft Building” due to its anchor tenant, whose long-term lease extends to 2032, the property is positioned to provide excellent income visibility to strategic investors. It’s also home to Levelthree, a well-established rooftop events and lifestyle venue that has become a popular destination for both private and corporate functions, adding a strong hospitality and entertainment element to the property.
Why investors are backing resilient retail assets
Thom says the growing overlap between retail, hospitality and lifestyle offerings is increasingly shaping how investors assess retail property opportunities.
“We’re seeing growing investor interest in assets that offer diversified income streams, experiential components and strong positioning within established precincts.”
Confidence in resilient retail assets is also reflected in recent REIT performance. JSE-listed retail REIT Hyprop Investments, whose South African portfolio includes destination shopping malls Rosebank Mall and Canal Walk, reported a 12.9% increase in distributable income for the six months through December 2025 and increased turnover to R15.5 billion. The REITs gains were not limited to financial results, with trading density up 7.5%, improved foot traffic (+1.9%) and declining vacancy rates across its retail portfolio.
Location also remains central to the success of retail investment opportunities. Kramerville Place benefits from excellent connectivity to key commercial and residential nodes including Marlboro and Woodmead, while its proximity to Sandton’s commercial core continues to drive tenant demand from both retailers and creative occupiers seeking exposure within Johannesburg’s most established design district.
Sealed bid process creates a controlled route to market
As demand grows for well-positioned, income-producing retail and lifestyle assets, sealed bid processes are increasingly being used to create a structured and competitive environment for strategic purchasers. Unlike a public auction, a sealed bid process allows qualified buyers to engage with the opportunity through a controlled timetable, access detailed due diligence material, and submit their strongest offer within a defined framework.
For an asset such as Kramerville Place, this approach is particularly well suited. The Johannesburg property combines long-dated tenancy, destination retail, showroom and hospitality uses, and it has a strong positioning within one of Johannesburg’s most recognised design precincts. Thom emphasises that the sealed bid process is designed to balance transparency, confidentiality and competitive tension.
“Kramerville Place represents the kind of strategically positioned retail asset investors are increasingly seeking: well-located, experience-led and supported by a diversified tenant portfolio that offers defensive income and long-term growth visibility,” he concludes.
