How Can Shopping Malls Revive And Bring Back Consumers?
The decline of American mall traffic, particularly in its anchor stores, has been perhaps the biggest indicator of changes in shopper preferences. When Morning Consult asked U.S. shoppers what features would make visiting shopping malls more enticing, most said cheaper retail prices (73%); more and improved food options (58%); and renovated movie theaters (51%).
A separate Morning Consult poll revealed that a majority (54%) of Americans shop at the mall less often than they did five years ago, and 59% don’t think malls will be popular shopping destinations 10 years from now.
The RTP team shares whether the Morning Consult polls align with their own mall shopping experiences, and what malls (and the retailers within them) can do to stay relevant.
Debbie Hauss, Editor-in-Chief: Just like standalone brick-and-mortar stores, malls need to pivot and become more experiential and local. Mall operators must consider the surrounding community: plan events that engage nearby families and businesses. Get involved with local school districts and charities. Malls are no longer the draw they were when they first introduced in the 1950s. One of the fastest-growing mall segments is the Eat-Work-Live environment, where homes and businesses and built nearby or intermixed with the shopping district. Stores and restaurants are planned based on the type of homeowner and businesses moving into the space. This approach offers a greater guarantee of success for the retail businesses.
Adam Blair, Executive Editor: Obviously there’s no one “silver bullet” that will resurrect malls to their once-proud place at the forefront of American retail, but this poll does offer some constructive suggestions. More than half (58%) of respondents identified “more and improved food options” as something that would make malls more enticing. I agree that it would be nice to be surprised by the offerings at a mall food court, and not see just the same old variations on Taco Bell/Panda Express/Cinnabon, etc. How about some fresh local cuisine, reminding the shopper that they are in a specific geographic place and not in an anonymous Anymall, U.S.A.? How about hosting a farmer’s market one Saturday a month? Beyond that, this A.T. Kearney report has a number of provocative ideas about how malls can once again make themselves relevant in a changed retail landscape.
Marie Griffin, Managing Editor: Today, shopping is an always-on activity that can be done while dinner is cooking, while watching TV or while rushing to or from work. Shopping is no longer a special event, and retailers and mall developers must adjust to this new reality. The idea of “shopping” as an anchor for a destination mall no longer makes sense. No wonder the consumers responding to the Morning Consult survey say they want better dining and movie theater options in malls; going out to eat and going to the movies are still activities worth getting off the couch to do. If retailers embrace the idea that shopping is done around other activities, and put pressure on mall developers to build multifaceted attractions — Mall of America is the ultimate model of this — retailers will reap the benefits. Within an environment filled with energized, engaged consumers, stores have the best opportunity to leverage their strengths.
Klaudia Tirico, Features Editor: I may be one of very few people who still believe in malls, but that’s because I live five minutes away from what I think is one of the top malls in New Jersey: Westfield Garden State Plaza (GSP) in Paramus. I can honestly say the Morning Consult survey results don’t really align with my experience at the malls I frequent, especially GSP (besides the fact that malls are crowded, but doesn’t that mean they’re doing something right?). The mall houses a variety of top-notch retailers, from the usual suspects like Hollister and Macy’s to luxury stores such as Tiffany & Co., Gucci and Tory Burch. It is even home to unique retailers that you won’t normally find in New Jersey malls, such as Danish variety store Flying Tiger, Sugarfina and Amazon Books. The food options are awesome (Shake Shack, Bar Louie, The Capital Grille) and there is an AMC move theater. It’s extremely clean and luxurious, with a ton of high-tech parking. Aside from that, it provides consumers with unique experiences. Most recently, GSP hosted an exhibit called Up Close: Michelangelo’s Sistine Chapel, which also offered Italian language lessons. With all that said, I truly believe malls have so much potential to cater to a new generation of consumers and stay relevant in the industry. They just have to evolve with the times and consumer demands — much like The Garden State Plaza has.
Glenn Taylor, Senior Editor: I do find it funny that the top word associated with malls is still “crowded” at 55%. When I shop at malls during non-holidays, I don’t feel like the crowds are that overwhelming. Even if the experience itself is underwhelming, the number of people in the mall never seems to be a major issue preventing me from having a good experience. Instead, it’s often the wild goose chase of having to figure out where everything is and how to find it — so I guess the low 44% calling it “convenient” may be on to something there. Last summer, I had an informative chat with Jason Green, CEO of The Cambridge Group, about the future of malls. Green echoed many of the sentiments others have sharedregarding the need to create a “lifestyle mix” within malls focused on entertainment, even incorporating apartment buildings and condos. But I think he made a great point about mobile that needs to be considered more when reevaluating mall space. To boost convenience, retailers and mall operators can push out messages such as: “While you go enjoy a movie or concert, you have a click-and-collect opportunity where you don’t have to wade through the store. You could just go to the front and pick it up.”