Mall owners advised to think holistically

Mall owners need to think more holistically about makeovers and renovations of their shopping centres to meet the demands of modern consumers.

That was one of the key recommendations presented on Thursday at the ICSC Marketing conference in Amsterdam during a session entitled ‘Rebranding the mall’. ´It´s time to rethink bricks,' noted Geoff Morrison, founder and executive director of Concept i Design.

With a significant number of new mega-malls set to open in coming years, there's a risk that developers are creating inhuman spaces, he warned. ´Shopping centre landlords need to explore the digital interface between smart phones and customers. They need to break down the boundaries between shoppers and products.'

Rows of shelves or glass counters with current stock are outdated, he added. 'Mall owners need to let customers touch and experience products. They need to contemporise their malls and make them inspirational places.'

Citing a report entitled 'The Joy of Shopping' by retail marketing specialist Fitch, Morrison said shopping was a 'state of mind'. The report distinguishes three key phases during the shopping process: dreaming, exploring and locating. 'Most effort so far has gone to locating in retail design,' he said, pointing to the locations where specific products and brands can be found. 'There's so much room to enhance the dream aspect,' he added. 'Let customers touch and experience the product.'

While consumers in emerging regions such as Asia and Latin America are relatively newcomers to the shopping centre experience - and still very enthusiastic - in mature markets, shopping is much more of a chore, Morrison said. 'The slogan "We hate shopping, we love experiences" says it all,' he said.

DREAM FACTOR
But some savvy retailers are creating new spaces and concepts to meet consumer needs. A case in point is Selfridges, he said. The UK-based retailer has created a Fragrance Lab at its London store where an interview with the consumer forms the basis for the design of a personalised perfume that is provided at the end of the session in a specially labelled bottle. Morrison: 'That gives them the dream factor.´

While centrally located shopping malls in city centres may not need a major makeover for 25 years, a more normal market cycle for a mall is 8-10 years, Morrison noted. However, some malls need to be refurbished within 4 to 8 years and in highly competitive markets high street stores may need to be renovated every two years.

Mall owners are not keen to spend money on renovating and refurbishing their centres, he pointed out. 'Most investors don’t want to invest every year, and don’t even really want to invest every 15 years.
Renovations must pay for themselves.'

While experience retail is the new buzzword in the shopping centre landscape, other trends are also visible, Morrison said, pointing to food innovation; pop-ups; digital way finding; augmented reality; edutainment; luxury services, sustainability and media façades. 'Consumers want it all, experience, omni-channel and seamless retail. Mall owners need to think seamlessly between the physical, human and digital domains.'