Shopping Malls! Where are we heading?

Entratine me,Sell me the expiernce!        

Do you remember when you would wait for a trip to your favourite mall or you were forced to go holiday shopping? That was when shopping malls and mega centres were the only outlets where shoppers could find multiple brands and stores under one roof.

However, with the rise of e-commerce, the same stores have become accessible to people sitting at home. Single click shopping has quickly and conveniently won over customers' trust and transformed how they shop.

So where does that leave shopping malls?

The changes in shopping trends have forced shopping malls and mega centre's management to pivot into a new direction to attract foot traffic. Malls are now focused on providing customers with various experiences other than just shopping.

Why shopping malls are incorporating entertainment centres

There has been much debate about whether shopping malls are on the road to decline. Still, First Insight's most recent study regarding consumer shopping habits shows that 71% of shoppers spend more money in-store than online. This clearly indicates that malls are nowhere near decline and that brick-and-mortar retail is well and alive.

Maximize retail store profits

Online operations and sales have become a priority for most traditional retail stores as they struggle to stay ahead of online shopping trends. But no matter how much they focus on online divisions, it can't replace the business these stores get at their physical locations. In addition, customers still want to have meaningful interactions with a company, which is hard to replicate in an online model.

Attract the Millennials

Other than the surge in e-commerce activities, another major factor has pushed malls into the reinvention phase in the direction of shopping trends among millennials. Gen Z and Millennials have smaller budgets than their parents, and their jobs are lower-paying statistically. Because of budget restrictions, these shoppers are cautious about spending their money, making them less likely to buy something from a shopping mall on an impulse.

According to PEW research, millennials are currently the largest generation. This shows the size of the market that isn't coming into the stores regularly. In addition, this younger generation places a high priority on experiences rather than on material things.

Adapt to changes in customer behaviour

Shoppers today are looking for more than what's available on a website– they want a complete experience. Therefore, malls are now offering amenities, experiences, and entertainment to elevate the shopper's overall experience. They can now access department stores, their favourite retail outlets, popular restaurants, salons, bars, fitness centres, and cinemas.

Lately, it has been observed that shopping centres are incorporating entertainment areas and placing them in prime locations to activate the space. For example, the Riyadh Season and other seasons and events in the region. They are quickly becoming the focal point in redevelopments and design.

What experiences do customers want in a mall?

The rise of e-commerce sales and the waning of in-store traffic have created new challenges for traditional mega malls and shopping centres. Consumers are searching for new points of engagement and impactful direct-to-consumer brands.

By combining the change in customer preferences and the pandemic's impact over the past years, mall owners, investors, and developers are looking for ways to drive consumers back to brick-and-mortar stores. But the major question remains: How do you attract customers to the mall when they can shop from the convenience of their homes any time of the day? What experiences can influence them to visit the mall instead of a website?

Cushman & Wakefield joined hands with WD Partners to compile consumer insights to understand what an average consumer wants in the mall today. When asked what concepts would encourage visits to the mall, customers said they were looking for valuable and desirable concepts.

The survey highlighted the following preferences.

1.??????Consumers voted for food two years in a row. However, they didn't just mention eateries and restaurants but also showed a keen interest in farmer's markets, grocery, curated food courts, and quick service food. There is no doubt that food is a point of engagement for family and friends, and it's a factor that drives mall foot traffic beyond the usual store hours.

2.??????The second thing that most consumers gravitated towards was health and wellness, where 43% voted for wellness and 36% for fitness. Mall consumers see tremendous value in staying fit and healthy and are attracted to activities and stores focused on the two. This concept also includes walk-in medical clinics, meditation centres, gyms, and rands that sell fitness apparel and equipment.

3.??????According to the survey, 35% of consumers insisted on new concepts and experiences introduced in malls. This includes cinemas, kiosks, pop-up shops, gaming arenas, and axe throwing bars.

4.??????There is also an emerging trend for safety and convenience like curbside pickup and buying online pick up in-store. Almost 40% of consumers preferred speed, comfort, safety, and touchless technology.

Entertainment ideas to attract shoppers to malls

Malls reinvent their spaces to make them more inclusive and attractive to shoppers. As people gravitate more towards ease of online shopping, malls management worldwide are coming up with various ways to offer extraordinary entertainment experiences that can't be given online.

Here are a few practical ideas that shopping malls have implemented to drive foot traffic.

Theme-based décor

Nothing grabs attention like a stunning display of festive décor. Malls use this factor to leverage the latest trends and occasions and transform the shopping mall into a themed experience. In addition, it acts as a conversation starter about the mall and piques shoppers' interest and curiosity.

Additionally, festive décor acts as a stimulant, making shoppers feel happy and loved, and encourages them to shop more for family and friends (to share the love). As a result, we have noticed that malls are moving away from clichéd seasonal decoration and experimenting with different concepts.

For example, instead of using the regular Christmas trees and fairy lights, mall management built a mock igloo where children could get fake tattoos and take their pictures.

We have also seen themed entertainers who interact with visitors at some places. This adds to the festive spirit and allows customers to have memorable shopping experiences.

Besides the holiday season, theme-based décor for popular sports events or movie releases is also an excellent way to join in the hype and bring shoppers to the mall.

Stage shows for families

Mall management organizes stage shows and performances from time to time. This has proved to be an effective technique of creating buzz. This concept opens up several avenues and has endless possibilities. From musicals, fashion shows, theatre productions to a circus– performances like these allow families to do fun things at a familiar place every weekend.

The more variety malls can offer in terms of entertainment, the longer they will retain the audiences' attention. Moreover, malls can also align events with their retail stores to give them exposure while creating new experiences for mall shoppers.

For example, a mall could select a few of its stores to participate in a fashion show. This will have dual benefits because shoppers will enjoy an event, and store owners will have the opportunity to showcase their merchandise outside their stores.

Malls could make an event like this even more enjoyable by asking people from the local community to participate in the fashion show or offer exclusive discounts on the products displayed during the show.

Live entertainment

As discussed earlier, people still want meaningful interactions despite the rise of online shopping. So what better way to make one-on-one connections than a live performance? Many malls have implemented this concept in the form of music concerts, standup acts, magic shows, poetry recitals, etc. The main idea is to invite performers that would appeal to the target audience.

For example, if a mall wants to attract families with children, they could organize a magic show to draw in huge crowds. Similarly, suppose the mall wanted millennials to come in. In that case, they could hire a standup comedian who would immediately create a rapport with the crowd.

No matter what events mall management decides to arrange or new concepts they try to introduce, it is important to announce it well in advance and use appropriate marketing strategies to create the right amount of hype around them. In addition, each event has to be actively promoted to draw in maximum crowds. Proximity marketing is another effective way to connect to shoppers in real-time and keep them updated about events on a specific day.

Wrapping it up!

Rethinking and redesigning the way malls operate is the only way these significant investments can survive in this digital age. This article has gone over the challenges that shopping malls face today and how they have overcome these hurdles to deliver extraordinary entertainment experiences to their customers.?