Why Malls are Smart Retail Spaces

Shopping Malls offer you all the popular shopping places, play areas for kids, food courts and cinema halls – all at one place. It means that you can double up your shopping time as family outing too.

Shopping Mall offers retail spaces that are optimally designed and well-managed. They attract shoppers with a well-controlled brand mix and customized marketing based on their target demographics – which translate into high footfall for new or growing businesses.

Organised retail in India, valued at Rs 96,500 crore in 2008, grew at the rate of 35- 40% in the last few years even though the overall retail industry in India has grown just at the rate of 9-10%. This fact in itself illustrates that mall retail spaces are valued highly across the country.

Here are some of the reasons why malls translate into smart retail spaces for us:

One-stop shopping and entertainment venue: The trend of working couples has caught on in Tier II and Tier III cities too. It means that people have more disposable income but less time.

Malls offer you all the popular shopping places, play areas for kids, food courts and cinema halls – all at one place. It means that you can double up your shopping time as family outing too.

Malls in Tier II &Tier III cities become a hub for brand shopping: Though brand accessibility might not be an issue in major metro cities, malls in places like NCR region (Noida, Ghaziabad and Faridabad), Rishikesh, Agra and Mathura attract a crowd of shoppers who are more brand conscious and have pockets deep enough to spend on whatever catches their fancy. Both domestic and global brands make good profits in these towns and cities.

Effective Marketing: Malls often organize theme-based events, brand or product launches, and festivals. They have money and space to create an awesome ambience and environment to attract shoppers from everywhere.

They employ neighborhood advertising strategies and usually have large residential catchment areas to ensure good business for their tenants.

Availability of Quality Space: All malls have anchor tenants as well departmental stores and hypermarkets that take up large spaces. It allows them to offer better shopping experience to their visitors.

Who would not like to visit a mall with central conditioning in blazing summers or central heating in bone-chilling winters…instead of suffering the weather on high streets?

Convenient Parking: As a business owner, you do not want customers to rush out of your store because they are worried about a parking ticket or that their vehicles might get towed off because they did not get a proper parking space. Hence, malls make more sense than high streets for shoppers as well as retailers.

Intelligent Zoning: Most successful malls these days offer smart zoning facilities. It means that you can get your hands on the best brands in the same category in one area of the sprawling mall…or you can create niche markets for targeted customers where shoppers can buy things across brands and categories at one place.

In niche market zoning areas, businesses complement each other and hence, in a sense, benefit each other too. It has been found that impulse buying in malls than high streets for this reason.

Malls often accommodate several brands at cheaper rentals or have flexible rental models (such as revenue sharing model) too.

Last but not the least; malls have facilities that most Indian markets do not have – like toilets and changing rooms.

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