UNPACKING Retail Experience

The malls and shopping centers are arguably are on a steep learning curve and have much work ahead of them to remain relevant. There has been no shortage of ink given to the fate of the American mall. I, like many other pundits believe that only the highest rated properties (A and B+) have a decent survival prognosis; over 300 are on deathwatch. Fundamentally, the business model they were built around is no longer viable. It’s been anchors-away for most of the department stores that were the centers' initial draw. And the specialty store chains that paid the freight are dwindling like sand through an hourglass.

Report card on the U.S. shopping malls GREEN STREET ADVISORS

Offline Launch Pad

The most insightful owners are taking steps to replenish the tenant stock. Both Macerich and Simon Properties have developed entrepreneurial programs which give digital first, upstart retailers, a launchpad into offline retail. Macerich launched BrandBox at Tysons Corners, and Simon Properties launched Fourpost at Mall of America and The Edit@Roossevelt Field. While varying somewhat, they each involve short-term leases in small plug and play spaces. Most provide tenant services including technology, traffic analysis, and limited marketing assistance. This is a positive effort which I applaud.

Macerich's Brandbox and MOA's Fourpost short term pop-up programs. MACERICH AND CHERYL STEIN

On another positive note, JLL Consultancy estimates that digital first retailers like Untuckit, and Allbirds are planning to open between 800 and 900 stores over the next five years. However, the specialty retail “vacations” are happening at a faster pace than there are newbies to take their place. By mid-year 2019, more than 6,200 store-closings had occurred in the U.S.

It’s becoming increasingly apparent that mall and center operators must literally rethink their businesses. It’s no longer a leasing and management game; it’s become a re-population effort intended to draw new businesses and sustain existing ones. I believe this is no longer a matter that any single or group of mall owners can effectively deal with.

A Completely New Game

The time is right for a new, third party initiative, to aggressively deal with the industry’s “underutilized assets”. The answer I believe is detailed in a concept I named RaveRetail. I developed, patented and trademarked the concept back in November of 2012, but it has yet to be realized. It was conceived in response to the seismic growth of ecommerce, combined with the profound effect of social networking, at a time when the decline in mall traffic was beginning to be felt.

RaveRetail is a third-party "matchmaker" between the space holders and the space users. SANFORD STEIN

This third-party service would create, organize, facilitate, coordinate, and market high-impact branded events located in and around malls and shopping centers. It would become the matchmaker and intermediary between the retail space holders (malls and shopping centers) and potential space users (start-up retailers, national brands, interest groups, and major manufacturers); think turbocharging pop-ups. It is also aimed at generating interest among time starved and experience-focused Generations Y and Z consumers.

RaveRetail would orchestrate events for brand entities of every size, category, and audience. They may last hours, days, or weeks. The soup-to-nuts approach could include location analysis, brand venue design and fit-out, entertainment booking, PR, security, and tactical coordination with all parties to ensure desired brand impact and event buzz. The pop-up nature of these events can bring like-minded fans, brand advocates, peer and affinity core groups together “en masse” to drive traffic and re-populate single or multiple-tenant spaces. It also leverages the FOMO effect (fear of missing out); and adds a sense of serendipity, and spontaneity into spaces that have become all too static and predictable.

Plays Well with Social

The concept pairs incredibly well with social media, at a time when influencer marketing is impacting the strength and trajectory of brands and the loyalty of brand advocates. This even goes beyond what I could have been predicted when the concept was initially conceived, some eight years ago.

RaveRetail plays well with social media, although it was conceived before influencer marketing was a thing. GETTY

In the world of “New Retail”, it will take a robust and holistic approach to reinvigorating hundreds of thousands of square feet of under-utilized or vacant spaces. It will also take a new and dynamic approach to consistently create, scale, and facilitate Consumer Engagement Spaces that enter the realm of immersion; if not transformation. This will require a completely different focus and set of initiatives than even the best landlords have at their disposal.

Sanford Stein is a retail trend forecaster, designer and speaker. He’s the founder of RETAIL SPEAK on LinkedIn, a Forbes.com contributor, and the author of the 2015 IBPA Award winning RETAIL SCHMETAIL. @schmetail