The once most dominant form of town center retail has gradually declined over the past two decades, with more customers opting for alternatives. The rise of e-commerce has been a key driving factor in this change, as fewer customers require a trip to their local shopping center for their shopping needs.
On top of this, online retailers’ constant offering of competitive prices makes it an overall better experience for customers looking to save money. To add to that, the pandemic had a significant impact on the behavior of shopping center consumers.
However, over the last few years, shopping centers have begun to adapt to increase profitability during this economic downturn. If they don’t find a way to change, we could see the closure and demolition of more shopping centers.
With that in mind, let’s look at some ways shopping centers have adapted and what they have done to revive their fortunes.
Become more experienced-based
To give customers more reason to take a trip to a shopping center, there are usually more entertainment options to make it a place beyond simply buying things. Experiential retail offers the center an opportunity to find subsidiary ways to establish itself as more than just a place that sells products but as an overall attraction that people can’t wait to visit.
Giving customers a unique experience upon entering your establishment and helping them create a positive memory will make them revisit your shopping center. It can also make shopping centers more appealing to a younger demographic, giving them more of a reason to travel to a shopping center rather than shopping online.
The Victoria shopping centre in Leeds includes other entertainment commodities such as a casino and its Boom Battle Bar, which allows customers to play a whole host of drinking games. Including activities like these is a great way to adapt a shopping center and give customers more of a reason to make the journey. Approximately 42% of shopping centre visitors allocate their budget to food and drink, so these activities are becoming vital.
Increased focus on niche markets
Focusing on certain products can offer customers a unique experience, as it can help them find more specialized products that are not easily found online. A shopping centre can pick and choose which products it wishes to focus on, which can be anything from sporting equipment to sustainable fashion. For a shopping center to take full advantage of this, it should develop a structured plan on what niche markets it can benefit from the most in the area.
Other benefits of shopping centers focusing on niche markets include less competition, brand loyalty, and higher profit. If your shopping center focuses on a specialized product type, customers may trust the center’s expertise and consider it the place to go for that type of product.
Become more community-focused
Partnering with local community organizations, such as non-profit organizations and schools, to develop events and activities that interest the local community can be a great way to attract more customers to a shopping center and build a loyal customer base.
Community-centric strategies seem a great form of retail resilience as the retail landscape is redefined. Prioritizing community engagement, hosting events, and supporting local charities and shopping centers can create an inclusive space that everyone in the community cannot wait to visit.
