Top Trends to Attract Retail Visitors in a Changing Landscape
Near Intelligence, a leading provider of privacy-led data intelligence, has released an insightful report titled "Commercial Real Estate Trends to Revitalize Shopping Centers." The report highlights five key trends that can help shopping centers adapt to evolving consumer preferences and draw in more visitors, even amidst economic uncertainties and the prospect of a recession. With consumer behavior constantly evolving, malls must leverage data analytics and innovative strategies to create engaging, personalized experiences that keep customers coming back for more. Let's explore these trends and discover how shopping centers can thrive in the face of changing consumer dynamics.
Unique Experiences for Wider Reach: Shopping centers that offer interactive experiences and entertainment have the potential to attract visitors from a broader geographical area. For example, Seismique, an interactive art exhibit, revitalized a struggling center by replacing a former big-box retailer. Upon opening, Seismique drew visitors from a median distance of 28 miles, well beyond the traditional trade area of the mall. This highlights the power of unique experiences in expanding reach and attracting diverse audiences.
The Rise of Eatertainment: As casual dining chains face challenges, Eatertainment concepts have thrived by focusing on upscale menus and immersive experiences. Consumers spend a median of 60 minutes at Eatertainment venues, significantly longer than other types of anchors. In contrast, Big Box and Grocery Anchors have half that dwell time as shoppers prioritize completing their errands quickly. The integration of dining and entertainment elevates the shopping center experience, keeping customers engaged and on-site for longer periods.
The Allure of Mixed-Use Developments: Mixed-use developments have become increasingly appealing to consumers, with visitors spending more time at these destinations compared to other types of malls. Near's study found that the median dwell time at mixed-use malls was 60 minutes, surpassing that of any other category. The combination of retail, residential, and open park-like spaces creates a vibrant community atmosphere, enticing residents and visitors to linger, explore, and enjoy the overall experience.
Healthcare as a Draw: Integrating medical offices and medtail (medical retail) within malls presents a mutually beneficial opportunity for both the healthcare industry and mall owners. Medical offices can attract foot traffic to shopping centers, potentially boosting revenue for mall owners and other retailers. Interestingly, healthcare anchors drew visitors from the farthest median distance in the study, even outpacing experiential anchors. Recognizing the value of healthcare services within shopping centers can drive increased engagement and customer satisfaction.
Direct Engagement with Customers: Shopping centers are redefining their approach to customer interactions by actively engaging with visitors across various channels. Through social media, loyalty programs, livestreaming, and more, malls are building direct connections with customers. For instance, Westfield Group's mall loyalty program allows customers to link their credit cards, automatically earning loyalty points with each purchase and offering enticing rewards. This personalized engagement fosters stronger customer relationships and distinguishes shopping centers from competitors, resulting in increased footfall and longer dwell times.
As the retail landscape evolves, shopping centers must adapt to changing consumer preferences to remain relevant and vibrant. This report highlights crucial trends that can revitalize shopping centers and attract more visitors. By offering unique experiences, embracing Eatertainment concepts, exploring mixed-use developments, integrating healthcare services, and engaging directly with customers, malls can create memorable, personalized experiences that keep customers coming back for more. With data-driven insights and strategic implementation, shopping centers can navigate the ever-changing retail landscape and thrive in the face of economic uncertainties.
