The 17th of March in CANNES, France (Reuters) – In an 오피 effort to compete with the growing popularity of online shopping among consumers, the owners of shopping malls in Europe are providing services that cannot be reached via the internet, such as health services and government offices, in an effort to entice customers to visit their establishments. Malls need to be re-envisioned as more comprehensive community centers in order for them to be able to compete with the growing number of failing retailers like HMV and Blockbuster, according to comments made by professionals in the real estate industry to Reuters at the annual MIPIM property fair held in Cannes, France.
The growing percentage of transactions that take place online will need businesses to evaluate their chain of brick-and-mortar stores in order to determine the ways in which the physical locations can best support consumer experiences. In order for existing retailers to keep up with the pace of change brought on by the competition, they will need to adopt omnichannel strategies and accelerate the rate at which they adapt. Merchants will need to review the omnichannel solutions they now have and explore for opportunities to innovate while also working to fix gaps in their service in order to successfully adapt to the shifting behaviors and preferences of their customers.
Because an increasing number of customers are increasingly connecting with retailers through mobile devices, retailers need to make sure that all of their digital channels are connected to one another and offer a unified experience (including a variety of checkout choices) and services for their customers. This is especially important given the fact that customers are increasingly connecting with retailers through mobile devices (such as shopping carts updated in real-time across devices). Retailers will need to make a financial investment in order to have any chance of being successful in their pursuit of customer-path innovations. When companies begin to reopen their doors, they will have the opportunity to not only comply with the requirements of their sector, but also to make substantial adjustments to the basic manner in which they run their businesses. This presents an exciting prospect.
Since a store is now more than just a place to generate sales, rather than simply being a location to do so, retailers need to let go of the assumption that a shop is merely a place to make sales. This is because a shop is now also a place to foster customer attachment and loyalty. Malls and tenants with an offline presence have a competitive advantage over online retailers because they offer a physical space where people can congregate for a variety of activities. These activities include social activities (i.e., a place where people can get together with their friends and family) and experiential activities (a place where they can learn something new).
For instance, the Easton Town Center in Ohio, which is located a short distance outside of Columbus, is home to three hundred unique retail establishments. These establishments are scattered among a range of enclosed shopping facilities as well as open-air street grids that are free of automobiles. Tenants that are classified as downmarket include companies selling items for a dollar or less, used book stores, furniture consignment shops, and thrift stores that also sell recycled goods. Other examples include furniture consignment shops. The rent that its tenants pay contributes to costs that are in addition to the building itself, but the goals that your brand has for itself might possibly influence the way in which the retail center is built.
In the event that the owners of the shopping mall find themselves in a scenario in which they want to close, but a particular tenant asks that their doors stay open, they will have no choice but to comply. It is conceivable that the owner of a shopping mall wishes to keep it operating, but it is also feasible that some of the mall’s business owners have chosen to shut their establishments. As was noted previously, the tenant also has the option of taking over the lease and assigning it to a third party. But, this choice is only accessible if the bankruptcy court finds that an acceptable security interest has been established. If this course of action is taken, the owner of the shopping center will be stuck with a new tenant who could create problems for either the landlord of the shopping center or the tenants who are placed close in the shopping center.
While this specific incident is somewhat exceptional, it is not the first time a property owner has considered transforming their company into a retail shop. In this case, however, the transformation is being pursued. In addition to their more conventional function as owners, property owners are now recognized to be participants in this business as well. This is the reality of the situation that has arisen. There is a possibility that some of these collaborations will be fruitful while others will not. The owners of real estate holdings have been given permission to retain such shops as tenants, paying rent – to themselves, mind you – so that they do not have to build any more empty storefronts on their properties. This enables the owners to avoid the necessity of building any additional empty storefronts on their holdings.
Robert Campeau, a Canadian entrepreneur and property owner, got in on this action in the 1990s by first acquiring the Federated department stores, and then afterwards by purchasing McDonald’s. Both of these purchases were made in quick succession. After another fifty years, widespread production of automobiles began, and soon after, strip malls with specialized retailers began popping up in newly created suburbs, which posed a challenge to city-based department stores.
Very few shopping malls turned into engines for intelligent growth, becoming locations where people not only shopped but also worked, learned, and lived on top of the retail space in the mall. This kind of development occurred in very few shopping malls. The rise of online shopping combined with the effects of the Great Recession led to a decline in sales as well as foot traffic for major stores such as JCPenney and Macy’s, which anchored a significant number of the nation’s shopping complexes. This led to a decline in sales overall for retail establishments across the country. The weeks leading up to Christmas are often the busiest for retail sales all through the year. Yet, between the years 2010 and 2013, there was a fifty percent drop in the number of persons who visited shopping malls at this time.
According to data that was supplied by the Ministry of Commerce in China, one of the contributing factors that led to the 7.7 percent rise in retail sales that was seen in Chinese malls was the creation of new malls that were comparable to this one. According to the findings of our study, the United States has a greater mall-based shopping power when compared to other countries that have large retail marketplaces. This is the case despite the fact that traditional brick-and-mortar establishments are necessary in order to provide customers with experiences that meet their expectations.
Conventional retailers are not the industry leaders when it comes to digital advances across various channels, such as mobile shopping and contact centers. Also, conventional retailers do not integrate digital advances across other channels in a seamless way into their most essential channel, which is their physical storefronts. This is a significant barrier to growth for traditional retailers. Consumers are putting a higher focus on cost and convenience, which is boosting the advantages that are given by online merchants. Customers are also placing a bigger emphasis on the ease of shopping online. This is due to the fact that there are fewer services that might potentially differentiate one company from another.
As customers get used to purchasing goods and services via a variety of distribution channels, they have a lower tolerance for the inconveniencies they face while shopping in physical places. As owners of shopping malls and tenants employ more complex data analytics, they are able to detect patterns and trends among the clients that shop at their establishments. This gives businesses with information that help them to better satisfy the requirements and wishes of their consumers, which, in turn, raises the possibility that those customers would return to their store for more purchasing. It is crucial for business owners, whether they own a shopping center or a retail store, to be there for their consumers and to communicate effectively with them at all times. This is due to the fact that consumers have been conditioned to demand fast gratification for everything they seek in the digital era, and social media has changed the way that many users consume media and information.
One potential disadvantage that might be encountered by owners and managers of shopping malls is the risk that this could end up being a disastrous investment. A potential outcome of this situation is the acquisition of underperforming retail establishments that, irrespective of who owns them, do not have a location or business model that will allow them to thrive. It remains to be seen whether or not this strategy is effective, and whether or not another mall operator will join the ranks of failing retailers abandoning the real estate market if it does not succeed. If it does not succeed, it remains to be seen whether or not this way is successful. According to Roberts, in order for owners of shopping malls to effectively adapt what is now popular, they will need to take inspiration from owners of shopping malls in established markets such as Dubai and China. In these nations, shopping malls are either a component of larger mixed-use buildings in which people reside or feature outdoor places in which people spend their time. Both of these models are prevalent.