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Are big shopping centres getting better at attracting customers and what to do about it?

by Oziboomer
4 replies
Are larger shopping centres getting better at attracting and keeping customers and what should other offline retailers do to stay in business?

Over the last year I've had a local Westfield shopping centre undergo a huge overhaul.

My primary business is located in a Homemaker type centre with Big Box retailers primarily selling homewares.

The big shopping centre installed gated car parks where you get 3 hours free and then you pay.

Didn't like at first and avoided shopping there but now it is becoming convenient because they have a whole digital parking experience where spaces are easily located and they have pushed out the commuters who used to clog the car parks.

They also have Valet or Concierge Parking.

They have created little shopping villages or experiences, for example...a replicated Hutong for Asian food rather than a large food hall.

They are open later and longer and incorporate night-life into the mix.

There are numerous very specialised retailers like german delicatessens or Korean food stores, Pilates specific clothing stores, BMW or BOSE lifestyle stores etc etc. You get the idea.

Most stores are "high end" with the exception of the category killers or the Japanese everything is $2 store.

Is this the trend everywhere?

What strategies should offline business who are in either strip shops or smaller centres do to keep attracting customers when they are squeezed between BIG retail and the Online shopping experience?

Should they look more to Online or how should they compete?

Is it much like when shopping centers first surfaced and smaller businesses felt pressured to relocate in to the traffic aggregators?
#attracting #big #centres #customers #shopping
  • Profile picture of the author savidge4
    Originally Posted by Oziboomer View Post

    Is this the trend everywhere?

    What strategies should offline business who are in either strip shops or smaller centres do to keep attracting customers when they are squeezed between BIG retail and the Online shopping experience?

    Should they look more to Online or how should they compete?

    Is it much like when shopping centers first surfaced and smaller businesses felt pressured to relocate in to the traffic aggregators?
    Has this been a trend in the states... I would say yes. to the extent of valet parking... I am not sure we have gone that far.

    You have pointed out some things in your post... its about the "experience" everything is "high end" they got rid of the trashed and filled up parking lots... Put on your marketer hat for a moment, and think... what have they done? They have corrected all of YOUR pain points, and SOLD you on the idea that it is convenient.

    How far of a drive is it for you? how many stores that offer the same goods do you pass that have parking right outside their front door? How many stores right in your neighborhood fit the same bill?

    Now flip this all around what are YOUR clients pain points? is it the distance to the super fancy mall? wouldn't a neighborhood solution be more appealing? Is it how clean your store front is? Nothing a power washer paint and window cleaning cant fix.

    I don't know what your main "store" is.. but could it be better suited in the mall? or do you prefer the 9 to 5 rut you have now not being there? you are suggesting that from 10 to 10 would be better hours?

    In terms of "going online" there are many considerations to be made here. #1 is your product / service price competitive enough to compete online? #2 if the answer to #1 is "No" then are you prepared to rebrand ( for online only ) and compete on that level - or can you even financially compete with pricing here?

    One of the services that I do for offline clients is store front renovations. be it the simple clean and spruce, up a notch to some color and a new sign, window decals, or go full blow with some nice lighting and awnings etc.

    I also offer interior redo's, flooring, wall fixtures, display lighting etc. The environment is just as important ( well I would say MORE important ) than the products themselves. With the right budget and 1 day and a rent a truck at IKEA, my girl can make some snit happen - let me tell you.

    I think in most cases the advertising part is easy... its the environment that gets them in the long run. People in general.. don't WANT to go to malls... but its the "experience" and I think better yet.. its the clean and updated environment that keeps them there. your average office or store in the hood.. its just run down beat up and old.

    I can tell you right now... this is the look we use over and over. goto "The Gap" in the mall. dark wood or concrete floors. Light wood industrial looking tables in the middle sections of the store I produce with solid wood tops ( cut down 2x4 strips glued into a table top ) sent off to be planed sanded and varnished, and I use 3 in PVC pipe for the leg structure. ( I also use 2 inch PVC pipe filled with concrete for added rigidity ) and like I already said the entire wall display area can basically be purchased at IKEA. A couple of larger format images around the space and you are set ( I do these in house )

    anyways.. that's what I do! lol


    Hope that Helps!
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    • Profile picture of the author Oziboomer
      Thanks Savidge for your insights an observations...and solutions to some of the problems

      Originally Posted by savidge4 View Post

      How far of a drive is it for you? how many stores that offer the same goods do you pass that have parking right outside their front door? How many stores right in your neighborhood fit the same bill?

      Now flip this all around what are YOUR clients pain points? is it the distance to the super fancy mall? wouldn't a neighborhood solution be more appealing? Is it how clean your store front is? Nothing a power washer paint and window cleaning cant fix.
      This is so true and an easy fix to just clean up

      I don't know what your main "store" is.. but could it be better suited in the mall? or do you prefer the 9 to 5 rut you have now not being there? you are suggesting that from 10 to 10 would be better hours?
      From a personal position my type of business that does involve some manufacturing doesn't really suit the mall type situation unless you split some of your operations and focus the showroom component and the manufacturing component in another site.

      Many have tried over the years to combine the two aspects in one higher end retail location but the only really successful ones have multiple retail showrooms around a central servicing hub.

      We have several restrictive of in some people's eyes "too unrestricted" trading hours. There are lots of penally rates paid for wages on weekend and overtime hours.

      It is a bit like you've really got to go for the volume and high margins if you want to trade outside the regular hours and more so if you are in a centre that has long hours each day and leasing clauses that state you must trade the extended hours.

      In terms of "going online" there are many considerations to be made here. #1 is your product / service price competitive enough to compete online? #2 if the answer to #1 is "No" then are you prepared to rebrand ( for online only ) and compete on that level - or can you even financially compete with pricing here?
      We spun off several niche targeted online businesses that now account for about 30% of revenue and one day may overtake the "traditional" revenue streams.

      One of the services that I do for offline clients is store front renovations. be it the simple clean and spruce, up a notch to some color and a new sign, window decals, or go full blow with some nice lighting and awnings etc.

      I also offer interior redo's, flooring, wall fixtures, display lighting etc. The environment is just as important ( well I would say MORE important ) than the products themselves. With the right budget and 1 day and a rent a truck at IKEA, my girl can make some snit happen - let me tell you.
      The renovate route is something that I'm part way through.

      It's nice to think it takes a day or weekend but it has taken me longer than I originally planned for.

      I think in most cases the advertising part is easy... its the environment that gets them in the long run. People in general.. don't WANT to go to malls... but its the "experience" and I think better yet.. its the clean and updated environment that keeps them there. your average office or store in the hood.. its just run down beat up and old.
      This is the norm but it doesn't last too long because the better businesses are renovating and refreshing and the others are just closing down or relocating.

      In talking to several business owners that moved to a recently upgraded neighbourhood...new road improvements....better lighting...marginally wealthier demographic...their improvements have been quite significant with a couple reporting nearly "double the average sale". When pressed they feel the demographics of the area contributed to the outcome but they have implemented just about all of your suggestions and then some.

      I can tell you right now... this is the look we use over and over. goto "The Gap" in the mall. dark wood or concrete floors. Light wood industrial looking tables in the middle sections of the store I produce with solid wood tops ( cut down 2x4 strips glued into a table top ) sent off to be planed sanded and varnished, and I use 3 in PVC pipe for the leg structure. ( I also use 2 inch PVC pipe filled with concrete for added rigidity.
      This is a great tip and I like the idea of producing a few custom pieces that anchor the design and work with the IKEA type enhancements. Love the concrete filled PVC pipes...thanks.

      It is easy to become complacent with the situation you find yourself in and it is good to get some inspirational suggestions and support from others.
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  • Profile picture of the author tryinhere
    My primary business is located in a Homemaker type center with Big Box retailers primarily selling homewares.
    I help out in a similar environment and look at the similar problems and or concerns you are talking about.

    Just the other day I was talking with the caretaker guy there and he was having his usual moan about the woe is the world and the place, my reply was do not worry in 3 - 5 years this place will be closed down and a forgotten yesterdays hero if they continue to do the same as they have been.

    He did look a little puzzled, so I asked him to tell me the difference from where we were to the new big centers being build down the road ( and with very similar naming and branding / such as the home makers center or abouts ). He had a few wild guesses and the and then I replied look out at your car park, it's empty, now look at theirs, it's full.

    This is so true and an easy fix to just clean up
    These guys where we are spending dollars now on trying to do that and revamping the center, but as best I can see is amounts to no more than pissin in the wind. A revamped sign, a lick of paint will not be what saves this place and very happy to put down on that, so a revamp in a dead and decaying place may stem but not holt the swing.

    In days gone by these places were a thriving place to be located but the times have changed, these days people do all if not all of their research on line, they do not need to come to these centers anymore to find or secure the latest information.

    their improvements have been quite significant with a couple reporting nearly "double the average sale".
    That would sound about right, as the call i would make would also be to relocate to the larger more modern centers with full car parks, and maybe a few north south and west east per se,

    The good thing about these places is you have multiple cashed up companies all running ads pointing to the new center, combined it is a powerful magnet, over and above the dying center that has a lick of paint and a dying budget and does not advertise any more or very little.

    I think malls with empty spots as mentioned above ? would also be a winner along with shows and trade expos. A recent show we doubled any expections in sales and most items are above 10K so we not talking blenders and mix masters.

    Back up the shows, trade, new location with the web, and other promotions such as TV radio etc and probably going to sit a lot better than sitting in a back water location.

    Lastly even with all of that it is also very very important with the sales team then to be able to complete the picture, and today people do not want the kiss me and suck my toe crap, they want people who know the product / service back wards and are near experts in their field, thinking you just going to just waffle through and make sales has a low outcome.

    We are surviving well where we are because of a high TV presence / advertising, strong general marketing campaign with flyer's etc, on line advertising, doing shows etc along with strong product knowledge, given that most everyone around us is dropping like ten pins, it still makes better sense to move with the times than stay put.
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    • Profile picture of the author Oziboomer
      Originally Posted by tryinhere View Post

      The good thing about these places is you have multiple cashed up companies all running ads pointing to the new center, combined it is a powerful magnet, over and above the dying center that has a lick of paint and a dying budget and does not advertise any more or very little.

      I think malls with empty spots as mentioned above ? would also be a winner along with shows and trade expos. A recent show we doubled any expections in sales and most items are above 10K so we not talking blenders and mix masters.

      Back up the shows, trade, new location with the web, and other promotions such as TV radio etc and probably going to sit a lot better than sitting in a back water location.

      Lastly even with all of that it is also very very important with the sales team then to be able to complete the picture, and today people do not want the kiss me and suck my toe crap, they want people who know the product / service back wards and are near experts in their field, thinking you just going to just waffle through and make sales has a low outcome.

      We are surviving well where we are because of a high TV presence / advertising, strong general marketing campaign with flyer's etc, on line advertising, doing shows etc along with strong product knowledge, given that most everyone around us is dropping like ten pins, it still makes better sense to move with the times than stay put.
      Thanks for your contribution.

      I definitely think the combined marking efforts of the various tenants helps significantly with bringing people into a centre.

      Fortunately my neighbouring stores are all good advertisers and we have a diversity of tenants including a few big white good sellers, two large pharmacies, big Pet and Vet store, haberdashery and surprisingly we had a bank/building society just open which is a little odd but the area is one of those suburbs with an older demographic that will gradually be changing as the "oldies" are being bought out and the homes are renovated or re-built.

      I do notice a trend in even the big centres where stores don't really advertise much because they use the collective pulling power is many of the stores are seriously "Understaffed".

      It is pretty disappointing when you have made the effort to visit a store to only find one sales assistant or a few very green or unknowledgeable staff in attendance.

      As for trade expos there is always one going on for something each week and although hard work to attend and do well they do usually provide ongoing business for the months afterwards and if you can at least break even on attending then they are worthwhile.

      I guess the bigger issue is that in the past you could pretty much rely on passing traffic and the weekend shopping trip that people used to do.

      Nowadays you have to so much better at marketing and meeting a more demanding clientele as they usually already come so pre-educated that it is vital staff have deep knowledge and strong interpersonal skills otherwise you lose.
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