THE FUTURE OF SHOPPING MALLS? (JUNE 2022)

A good place to start focusing on is ‘omnichannel retailing’. The ‘Future Customer’ will have fleeting loyalty, and almost exclusively purchase through multiple channels, always searching for better prices, more convenience and a custom and more enjoyable experience. We can see this trend unfolding already with purchases via websites, emails, e-catalogues, call centres, social media, cellphones, home and office appliances and even gaming consoles. Remember that the Internet of Things (IoT) does not wait for you to go buy milk or a new ink cartridge, the device itself orders for you. In the future ‘shopping’ will not only be done by humans… think about that for a moment, and while you are doing that don’t forget about the Metaverse, or the next generation internet with your avatar, a version of you that explicitly wants to avoid leaving your couch and would rather go without a product or service if it means having to get into a car and seeing other flesh and blood humans!

The ‘Future Shopping Mall’ will need to have a presence in all these ‘channels’ and make provisions for engagement at whatever level they can to support their tenants and the customers who want their services. How this is achieved is the next important question. It will require the owners of malls in the near future to become ‘E-property Owners’. This means not only ensuring tenants have power, water, waste removal, a rental bill and some marketing support: it means the owner will also need to gather data and help their tenants use that information to customize their services, educating and supporting them all the way to success.

Now, if you are an owner or management of a mall reading this, and feeling all this sounds to exhausting or overwhelming for you, you will know exactly what you are up against, because the ‘Future Shopper’ feels the same way about your parking lot.

Go into ‘adapt’ mode!

Your business will not go away totally, but you are going to take a huge knock in revenue, and at the same time have to spend vast amounts of capital within the next 3 to 5 years. Rework your tenent mix and put all ideas on the table and don’t disregard the concept of becoming ‘green’ (self-power, water and waste systems). Your mall must become an ethical and sustainable business very soon!

Go one step further, and sooner. Consider flexible rental / lease contracts. Some of your competitors will deploy hybrid rental models and even share risk, making the owner of the mall a ‘business partner’ of sorts. Of course, every coin has two sides (with exception to Bitcoin), and tenants need to evolve too. This will require ‘encouragement’ by you to get tenants to act, creating opportunities for collaboration, supporting one another’s invested interests.

There is a technology divide and gap which needs to be closed. Malls have not yet begun to tap the potential of technology. Research and be innovative. Together set out on a path of discovery, but as the mall you must take the lead in obtaining, tracking and processing data for your tenants to use. A simple loyalty card and touch screen information board are not enough anymore. Oh, and before I forget, I suggest you set up electrical charging points for the future car. If you think shopping malls have a challenge… think about all those petrol station owners!

Physical and online evolution must take place simultaneously. A website or App is not enough. You must go further, broker brand exclusivity deals and ensure incentives are offered when using your platforms to compete against larger e-comm brokers like Amazon or Alibaba. The ‘Future Shopping Mall’ will need to become a destination, value centre and a spot for innovation. They must have natural spaces and gardens, spots to be social and work. Consider pets. Your mall must be a transport hub, offer food, beauty, entertainment, health, medical, education, onsite repairs. It must be an area for ‘personal connection’ in a way the Metaverse can never achieve. Think about gyms, sports, casinos, theatres, museums and grand book shops. Your décor, look and feel, will need to change more frequently than the seasons.

“The Future Mall’ could be a micro city on its own, including accommodation, conference and meeting facilities. Then go one step further and have Police, Postal and Government services onsite right next door to the Future Bank. Many of your services, stores and experiences will need to run 24/7, so add some couches, encourage people not to go home.