Collaborate Or Perish

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Mall operators and retailers have always been in a love-hate relationship, garnished with liberal amounts of ego from both sides. But with the pandemic battering both like never before, it seems necessity is the mother of all invention collaborations. 

Context, Please.

Since April 2020, shopping malls have been shut on and off, first sparking a big rent payment row between mall operators and retailers, then moving on to showdowns, and ultimately ending in a state of forced understandings. 

Both retailers and mall operators now understand that disruption is part of life and they must work together to make each other's lives more predictable, and thus easier. 

Is There Real Change?

Yes, to a large extent. For the first time, a true sense of partnership between the two sides has developed and become more stable after the second lockdown, industry veterans feel. 

Mall operators finally got to know retailers more closely during the pandemic crisis. Negotiations on all areas of concern thus took place amicably, and solutions suiting both sides have been reached. 

To increase footfall and revenue, malls are now actively discussing their marketing programs with the retailers and similarly, retail brands are also sharing their plans with mall operators.

Going Forward?

Retailers - Retailers and food chains, the biggest footfall drivers for shopping malls feel that the post COVID shopper has changed in many ways and mall operators must also make significant changes - like creating food delivery outlets on the ground floor, resizing stores and the retail mix, and introducing innovative pricing.

Mall Developers - Mall operators feel that the key to revival lies with retailers unlocking their consumer databases, which would enable them to jointly launch marketing campaigns with the concerned retailers to target and woo shoppers. 

Both - All sides agree that e-commerce is a huge threat to both malls and retailers, primarily due to their speed, service and consumer engagement policies. 

And likewise, retailers and mall operators should adopt similar strategies, because only customer service and personalised interaction can help bring back customers to malls.

In One Sip?

N. P. Singh, Samsonite South Asia, puts it aptly, "Malls and retailers must co-exist, and this should be the biggest factor in determining the next step."