How Today’s Shopping Malls Are Fighting Extinction

A good number of malls in the United States have seen better days. As a recent New York Times piece pointed out, “since 2010, more than two dozen enclosed shopping malls have been closed, and an additional 60 are on the brink.”

Despite these numbers though, we can still expect malls (at least, the ones that survive) to be around for a long time. Research has shown that millennials prefer shopping malls over ecommerce, and at present, over 90% of all retail purchases take place offline.

Plus, around 80% of the nation’s 1,200 malls are still considered “healthy.” In addition, belonging in the upper echelon of that eighty percent are shopping centers that are continuously finding ways to keep up with modern consumers.

This post will discuss the new strategies that these malls are implementing and will offer examples of malls that are doing it right:

Instead of trying to keep people in the mall longer, they’re helping them find what they need quickly and easily

Mall layouts are changing. As consumers’ need for speed and convenience continues to grow, forward-thinking malls are reworking their floor plans to meet shoppers’ demands.

One notable example can be seen in Westfield Montgomery—a newly renovated mall in Bethesda, MD. According to the Washington Post, Westfield is now implementing a strategy called “districting” wherein the mall is “full of little neighborhoods of like stores so that a shopper can hit all their favorite outposts quickly and easily.”

Unlike traditional layouts, which “deliberately spread out similar stores” across the venue to keep shoppers in the mall for longer periods of time, districting focuses on convenience. For instance, Westfield Montgomery has grouped together teen-oriented stores like Hollister, Abercrombie & Fitch, and Lucky Brand, so shoppers can quickly move from one store to the next.

Additionally, Westfield set up the mall’s play area “just outside of Build-A-Bear Workshop and Destination Maternity–stores that are likely to appeal to parents of young children.”

Several mall developers—including Westfield and Simon—have also launched apps with built-in maps to help customers find the stores they need much more quickly. Westfield’s app even has turn-by-turn voice instructions just like the GPS device you’d use in your car.

This new focus on speed and convenience extends to the parking lot. As the Washington Post puts it, “parking is another place where Westfield believes it’s important to shave time off shopping trips.” That’s why several of its malls have parking systems that display the number of available spots and have built-in sensor-powered lights for each parking space indicating its availability.

They’re enriching the in-store experience through entertainment and technology

Innovative malls have learned that it isn’t enough to provide “stuff.” In an age where consumers can make purchases easily online or using their phones, physical retailers would need to offer consumers experiences that they won’t get from other channels or devices.

Indeed, more and more malls are cooking up ways to enrich the in-store (or in-mall) experiences of shoppers. Simon Property Group, for example, has hosted concerts, showcased local talent, and even staged flash mobs in its malls.

In addition, the real estate group introduced digital kiosks in some of its properties, which allow mall-goers to play games, submit receipts, and check in to the location.

They’re embracing connectivity

When showrooming (i.e., when consumers price-check or examine products in a store, only to purchase them online or using their phone) started making waves in the industry, most brick-and-mortar stores had a knee-jerk reaction of resisting the practice. They frowned upon the use of smartphones in store, with some retailers even banning the devices.

But forward-thinking merchants knew better. These retailers embraced showrooming and are even making it easier for customers to go online. They realized that offering connectivity services like free WiFi also has benefits for merchants. For one, it allows them to collect data about customers and even personalize their interactions.

And an increasing number of malls are getting in the same boat. Many of them have started offering mall-wide WiFi and are adding outlets so shoppers can charge their devices.

Simon Property Group is taking things to the next level by creating “smart malls” and installing beacons in its shopping centers.

“We are constantly seeking ways to enhance the Simon shopping experience through relevant, leading-edge technology,” Mikael Thygesen, Simon’s CMO told FierceMobileRetail. “We are pleased to help facilitate the growing adoption of iBeacon technology and believe it is an important new initiative that will provide Simon, its retailers and brands with interesting, new ways to reach and communicate with shoppers who choose to opt in to the program.”

Bottom line

People’s need for convenience, experiences, and connectivity will continue grow. The fate of malls hinges (partly) on how well they adapt to these changing habits and demands.

How are the malls in your area fighting extinction? Share your thoughts in the comments.

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