Challenge to malls
Download
1 / 23

7-1 Challenge to Malls - PowerPoint PPT Presentation


  • 404 Views
  • Uploaded on

Challenge to Malls. Time pressured society makes it impractical to wander malls Fashion apparel sold in malls experiencing limited growth Malls are getting old and rundown – unappealing to shop Anchor tenants are decreasing due to retail consolidation Strategies?

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '7-1 Challenge to Malls' - Leo


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Challenge to malls l.jpg
Challenge to Malls

  • Time pressured society makes it impractical to wander malls

  • Fashion apparel sold in malls experiencing limited growth

  • Malls are getting old and rundown – unappealing to shop

  • Anchor tenants are decreasing due to retail consolidation

  • Strategies?

    • Make shopping more enjoyable (e.g., sofas, children’s playing areas)

    • Great food destination (fast food and full-service restaurants)

    • Tailor make its offering to cater to changing demographics (e.g., repositioning older shopping centers for Hispanic markets)

    • Mall renovation and redevelopment


Lifestyle centers l.jpg
Lifestyle Centers

Photo provided by ICSC and used with permission of Aspen Grove Lifestyle Center

Attractive to specialty retailers


Stores and restaurants at lifestyle centers l.jpg
Stores and Restaurants at Lifestyle Centers

Williams-Sonoma

Victoria’s Secret

Restoration Hardware

Barnes & Noble/Borders

Coldwater Creek

Pottery Barn

The Gap

Banana Republic

Bed Bath & Beyond

Eddie Bauer

Panera Bread

Ann Taylor

Starbucks

Dick’s Sporting Goods

Hallmark

Aeropostale

Johnny Rockets


Lifestyle centers4 l.jpg
Lifestyle Centers

  • Usually located in affluent residential neighborhoods

  • Includes 50K sq. ft. of upscale chain specialty stores

  • Open-air configuration

  • Design ambience and amenities

  • Upscale stores

  • Restaurants and often a cinema or other entertainment

  • Small department store format may be there


Fashion specialty centers l.jpg
Fashion Specialty Centers

  • Upscale apparel shops

  • Tourist areas/central business districts

  • Need not to be anchored

  • Décor is elegant

  • High occupancy costs

  • Large trade area

  • Ex. Phipps Plaza in Atlanta

The McGraw-Hill Companies, Inc./Lars A. Niki, photographer


Outlet centers l.jpg
Outlet Centers

These shopping centers contain mostly manufacturers and retail outlet stores

Courtesy of Beall’s, Inc.


Theme festival centers l.jpg
Theme/Festival Centers

  • Located in places of historic interests or for tourists

  • Anchored by restaurants and entertainment facilities


Larger multi format developments omni centers l.jpg
Larger, Multi-format Developments: Omni-centers

  • Combines enclosed malls, lifestyle center, and power centers

  • Larger developments are targeted

    • to generate more pedestrian traffic and longer shopping trips

    • To capture cross-shopping consumers


Mixed use developments mxds l.jpg
Mixed Use Developments (MXDs)

  • Combine several different uses into one complex, including shopping centers, office tours, hotels, residential complexes, civic centers, and convention centers.

  • Offer an all-inclusive environment so that consumers can work, live, and play in a proximal area


Other location opportunities l.jpg
Other Location Opportunities

  • Airports

  • Resorts

  • Store within a Store

  • Temporary or pop-up stores


Alternative locations airports l.jpg
Alternative LocationsAirports

  • Airports: Why wait with nothing to do?

  • Rents are 20% higher than malls

  • Sales/square ft are 3-4 times higher than malls

  • Best airports are ones with many connecting flights

Kim Steele/Getty Images


Alternative locations resorts l.jpg
Alternative LocationsResorts

Captive audience

Well-to-do customer

Customers have time to shop

Royalty-Free/CORBIS


Slide13 l.jpg

Alternative LocationsStore within a Store

  • Located within other, larger stores

  • Examples:

    • Grocery store with service providers (coffee bars, banks, clinics, video outlets)

    • Sephora in JCPenney


Alternative locations hospitals l.jpg
Alternative LocationsHospitals

Patients cannot leave

Gifts are available

Royalty-Free/CORBIS


Matching location to retail strategy l.jpg
Matching Location to Retail Strategy

The selection of a location type must reinforce the retailer’s strategy

be consistent with

  • the shopping behavior

  • size of the target market

  • The retailer’s position in its target market

  • Department Stores  Regional Mall

  • Specialty Apparel  Central Business District, Regional malls

  • Category Specialists  Power Centers, Free Standing

  • Grocery Stores  Strip Shopping Centers

  • Drug Stores  Stand Alone


  • Shopping behavior of consumers in retailer s target market l.jpg
    Shopping Behavior of Consumers in Retailer’s Target Market

    • Factors affecting the location choice

      • Consumer Shopping Situations

        • Convenience shopping

        • Comparison shopping

        • Specialty shopping

      • Density of Target Market

        • Ex. Convenience stores in CBD; comparison shopping stores next to Wal-Mart

      • Uniqueness of Retailing Offering

        • Convenience of locations is less important

        • Ex. Bass Pro Shop


    Convenience shopping l.jpg
    Convenience Shopping

    Minimize the customer’s effort to get the product or service by locating store close to where customers are located

    The McGraw-Hill Companies, Inc./Andrew Resek, photographer


    Comparison shopping l.jpg
    Comparison Shopping

    Customers have a good idea of what type of product they want, but don’t have a strong preference for brand, model or retailer.

    Typical for furniture, appliances, apparel, consumer electronics, hand tools and cameras.

    Competing retailers locate

    Near one another

    Ryan McVay/Getty Images


    Category specialists l.jpg
    Category Specialists

    Offer the benefits of comparison shopping

    Consumers can see almost all brands and models in one store

    Destination stores

    The McGraw-Hill Companies, Inc./Andrew Resek, photographer


    Specialty shopping l.jpg
    Specialty Shopping

    Customers know what they want

    Designer labels

    Convenient location matters less

    The McGraw-Hill Companies, Inc./Andrew Resek, photographer



    Slide22 l.jpg

    Environmental Issues

    “Above-ground” risks - such as asbestos-containing

    materials or lead pipes used in construction.

    Hazardous materials - e.g. dry cleaning chemicals,

    motor oil, that have been stored in the ground.

    Retailers’ Protection

    Stipulate in the lease that the lessor is responsible for removal and disposal of this material if it’s found.

    Retailer can buy insurance that specifically protects it from these risks.


    Slide23 l.jpg

    Other Legal Issues

    Zoning and Building Codes

    Zoning determines how a particular site can be used.

    Building codes determine the type of building, signs, size, type of parking lot, etc. that can be used

    Signs

    Restrictions on the use of signs can also impact a particular site’s desirability

    Licensing Requirements

    Some areas may restrict or require a license for alcoholic beverages


    ad