The retail industry has been experiencing quite a bit of turbulence for quite a few years. The emergence of online stores like Amazon has has had an impact on the profitability of brick and mortar businesses. Consequently, the shopping mall industry has also entered a state of frenzy. Dwindling foot traffic and plummeting revenue have forced many shopping centers to shut their doors.
The steady decline of foot traffic has been plaguing shopping mall operators and real estate developers for over a decade. As online stores continue to give brick-and-mortar businesses a run for their money, shopping malls are facing the urgent need to reinvent themselves. It is no longer enough for a mall to offer an assortment of stores. Even fancy food courts and fine-dining eateries aren’t as effective when it comes to attracting foot traffic.
Modern technology is becoming increasingly focused on creating the best customer experiences. Consumers can buy the latest smartphone while sitting on their couch and get their favorite burger delivered at their doorstep. It is fair to say that today’s consumers literally have the power to fulfill all their needs at their fingertips. This has made it difficult for brick-and-mortar businesses to attract paying customers.
Today’s cutting-edge technology has changed the way new-age consumers socialize and entertain themselves. From food and groceries to clothes and gadgets - everything can be ordered in just a few clicks. It is becoming increasingly challenging to motivate such consumers to step out of the comfort of their homes. This, in turn, has compelled shopping mall operators to devise new strategies for attracting foot traffic.
Malls in America are facing a retail apocalypse. Mall vacancies stood at a seven-year high of 9.1% in 2018’s third quarter. These large vacancies have led to the collapse of many shopping malls in the country, and about 1211 remain in the nation.
When was the last time you went to a shopping mall with the sole intent of buying something? Once perceived as the face of modern retail, many shopping malls are dying a slow death. Today, people often go to malls to hang out with their friends or spend quality time with their family. If your mall fails to engage your audience and provide a memorable experience, they will likely never come back.
The advent of online retail stores and e-commerce businesses have stolen the limelight from brick and mortar businesses. Shopping mall operators now have to work harder to attract customers and increase foot traffic forcing you to devise unique and innovative strategies to grab the attention of your audience. This becomes particularly crucial during peak sales periods and important holidays like Christmas, Valentines’ Day, etc.
Events are great-crowd pullers, and by organizing them for your shopping mall, you can increase your foot traffic with ease. They are also a great marketing tactics through which you can increase the sales of your store tenants as well which is why it’s so common to see shopping centers regularly organize events.
Pop-up stores have recently emerged as an effective and popular marketing tool for brands. They are temporary retail establishments that can be set up on the streets, in shopping malls, or at public events. Depending on the location and marketing objective, a pop-up store can be available for a few days or even weeks. Many big brands, including Nike, Google, and Amazon, have integrated pop-up shops into their marketing strategies.
While your retail tenants are planning out their promotions, it’s crucial for shopping malls to come up with unique marketing ideas to increase foot traffic.