Is The Metaverse Bad News For Retail Real Estate?

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Walmart has recently applied for metaverse trademarks, while mega retail brands like Nike, The Gap and Gucci are already there, meaning retailers are darn serious about setting up shop in the metaverse. 

Not A Game Anymore

As the notion of the metaverse being a game balks, the metaverse is being increasingly viewed by investors as a serious real estate investing opportunity. Naturally, more and more retailers have been gradually making their way into the parallel universe. 

And that's leading to predictions - as more and more people hang out with friends, work in offices, attend concerts, and go to school in the metaverse, they'll do most of their shopping virtually as well.

But We've Seen That Film Before

Remember the early internet predictions that e-commerce would rapidly bring about the retail apocalypse? Turns out, a couple of decades or so later, e-commerce still makes up only about 20% of all core retail purchases.

📎 Retail brand Macy's CEO, while reporting the company's Q3 earnings said, that the retailer does more sales online in regions where the company has a physical presence. 

Other examples also suggest that e-commerce has actually served to complement physical retail in many ways. 

The Takeaway?

More likely than a metaverse retail takeover is a scenario where like e-commerce, the metaverse will ultimately serve to augment physical retail. 

From outfitting our digital avatars and online spaces in branded products, to occasionally shopping at brand stores in their metaverse for in-store pickup or home delivery, the possible 'metaverse effects' on retail are constantly expanding. And most of them still work well for retail real estate.