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| CromaConcept/Pixabay |
Friday morning surprise test.
Q. Will shopping malls die due to the pandemic and the surge of e-commerce?
A. Yes. Shopping malls are dying a slow death and there's no way out for them.
Your test score - 0.0
Ever wondered why Amazon hasn't killed a single Apple/Imagine store yet? Why has Flipkart not wiped out every bookstore by now? And why are numerous new brands entering the retail space every year? Certainly not to sell their wares only on e-commerce portals.
But What About JC Penney, Spinach, Sears etc?
We knew those names were coming. Yes, Spinach, JC Penney and numerous other established retailers have wound up and like all other sectors, many more retail businesses will stutter and die, while newer brands will take the sector higher.
Also, before writing off malls, realistic lines of thought can sometimes be enlightening.Maybe Sears, JC Penney and Spinach in particular had been horribly managed for some time leading to their collapse. Maybe the older locations of mid-market department stores are nestled in communities that are struggling economically. Or maybe, they were in the wrong malls.
The malls that have answered these questions through size, efficient design, successful store mix, squeaky clean upkeep and excited manpower only seem to be growing.
💡 Just because your website has stopped getting traffic doesn't signal that the internet is dying.
More Worldly Questions
The mission critical question any retailer or mall owner should ask is, why would someone get in their car and drive to my location, when Flipkart provides millions of items via their mobile app?
Substantial answers will begin to emerge.
Stores need to provide a customer experience that is worth the travel. That could be providing a uniquely curated product assortment, or a unique shopping experience, or capitalizing on the micro market and its needs. Things that will always remain out of scope for virtual shopping platforms.
Yes, like every business today, Coronavirus has left a scar on the mall business too but going by global cues, footfalls are now regularly exceeding pre pandemic levels in many countries.
Fung Global Retail and Technology had once estimated that 20% of malls generate approximately 75% of mall revenues. This 20% finds it easier to access financing to constantly improve their properties and keep marketing initiatives ahead of the curve.
Even with easy return policies, there are some things people simply want to touch and feel.
Fung Global Retail and Technology had once estimated that 20% of malls generate approximately 75% of mall revenues. This 20% finds it easier to access financing to constantly improve their properties and keep marketing initiatives ahead of the curve.
Look around you. India is full of such successful malls.
Alright! What's Next?
E-commerce giants like Amazon, Flipkart and others opening brick-and-mortar stores to let their numbing customers finally get tactile feedback.
Amazon’s purchase of Whole Foods was a clear admission that the online giant needs brick-and-mortar stores to be successful in the grocery category.
We are humans after all and no website in the universe can make your companion happier than hearing the words, 'come on baby, let's go shopping'.