Situs Studies How to Get Consumers Back to Malls
Analysts predict up to 25 percent of U.S. shopping malls could close by 2022, but there are steps mall owners can take today to keep their customers coming, said Situs, Houston.
The rise of convenient online and on-demand shopping has contributed to the steady decline of mall traffic and analysts estimate online sales will increase from 17 percent of all retail sales today to 35 percent by 2030, Situs said in a special report, How to Get Consumers Back to The Mall.
But mall owners can lure American consumers back, the report said. Situs asked respondents to rate how specific mall characteristics ranked in determining their decision to visit a mall more frequently with one representing no influence and five representing great influence. The influence of the number and variety of stores a mall contains ranked highest at 3.44.
So, the most important thing a mall owner can do is increase the number and variety of stores. “This feature, or lack thereof, will presumably continue to pose a huge challenge for mall owners,” the report noted. “Retailers are leaving because they are not getting enough customers, and one of the main reasons that customers are leaving is because the malls do not have enough stores.”
The survey suggested that in addition to the sheer quantity of stores, consumers prefer to visit malls with better infrastructure, including general location, parking accessibility and even mall-wide Internet access. The mall infrastructure rating ranked second with a 3.26 average.
Malls’ entertainment offerings also influenced consumers’ decisions to return regularly, Situs said. The addition of entertainment venues including sit-down restaurants and movie theaters averaged 3.21.
Convenience and value also contribute to a shopping mall’s attractiveness, but to a lesser extent than variety, infrastructure and entertainment, the report said. For example, in-store pickup for online purchases averaged 3.09 and targeted coupon offerings averaged 3.06.
“In what is likely reassuring news for existing shopping malls, the age of the building seems to have little influence on its lure,” the report said. “Survey respondents said a newer or cleaner appearance had less than a moderate amount of influence on their decision to visit a mall.”
The survey said malls can compete with online shopping. “While it may be difficult to add new stores to an existing mall, certain targeted changes and promotions such as the availability of wireless internet, sit-down restaurants, online purchase collaborations and coupons will likely prove to be a valuable investment going forward,” Situs said.
