In the past few decades, shopping malls emerged as a solution for suburban residents who previously had no direct access to goods and services within their neighbourhoods. Alternatively, suburban shopping malls developed into crucial centres for socialization and interaction due to their convenience, luxury and ambience. Despite their popularity, suburban regional shopping malls started facing challenges due to competition from newer shopping malls, increased neighbourhood convenience stores, e-commerce and a drastic change in consumer lifestyle (Ferrera & Paiva, 2017). Due to this situation, most suburban regional shopping malls are struggled to stay open. Recent studies establish that most malls cannot meet their financial obligations and risk closure within the next few years. This situation requires suburban regional mall managers to make informed decisions to avoid being entirely out of business. This paper discusses various critical aspects concerning the suburban regional malls and the prevailing trends in retailing.
- What do you think the mall should do to improve its performance?
As a manager for a suburban regional mall, the mall should establish its customer traffic before initiating any changes. Typically, customers are the life of any business regardless of its type or location. In this sense, firms with high customer traffic make more money and thus become successful. It will be beneficial to physically count the number of clients entering the mall and shopping within particular sections. By examining the numbers, the mall will recognize client preferences and, more importantly, identify the areas that need improvements and the possible innovations that will attract more customers to the facility (Fantoni et al., 2021).
Secondly, transforming the mall into an entertainment hub would increase its popularity and, more importantly, customer traffic. Traditionally, most suburban regional shopping malls were primarily for shopping and with little consideration for entertainment. Currently, most clients are attracted by experiences more than the need to obtain goods and services. From this perspective, the mall should create adequate entertainment activities that will attract and keep clients within the facility for longer (Badar & Ifran, 2018). For instance, the mall could employ live entertainment performances from celebrities to attract more clients to the facility. With time, the mall’s popularity as an entertainment hub will be excited to see their favourite artists.
Thirdly, the mall should occasionally hold community events. As stated, competition has led most suburban regional malls to lose a lot of clients. While improving services may be a viable strategy to beat the competition, making a difference in the lives of the community is among the most effective approach to attract more clients and enhance customer loyalty. By engaging in interactive events like games, charitable activities, and learning events, clients feel that the organization wants more than to make money hence, they will support the business. (Fantoni et al., 2021).
Besides, the mall should increase traffic by renting out space to unconventional businesses and tenants. Presently clients have diverse requirements that go beyond traditional shopping. In this sense, the mall could rent out empty spaces for offices, apartments and other facilities that could be of use to most customers. The availability of such facilities within the mall could attract clients who would like to work and live within the complex. In addition to such spaces, the mall should provide free Wifi to attract clients who would like to engage in online activities while shopping (Fantoni et al., 2021). Moreover, the facility should invest in swings, benches, and play spaces where adults and kids could spend more time and have fun. Such areas will attract more clients who would like to experience a change from work and home environments without spending a lot of money.
Additionally, the mall should invest in an online shopping platform to avert the challenge stemming from e-commerce. In this case, the mall should have a virtual shopping website where individual customers can purchase goods and services at their convenience. A reliable and affordable delivery system should back such a platform. Alternatively, clients could purchase goods online and pick them up at the facility to avoid the extra costs sustained in delivery (Highman, 2021).
Lastly, since we live at a time where social media influences most people preferences, the mall should have a solid and influential social media presence. In this case, the mall should employ social media influencers to increase its followers on popular social media platforms like Snapchat, Facebook, and Twitter (Highman, 2021). Once it gains a considerable following, the mall should use these pages to promote business by keeping the followers informed on new products, festivals, offers and other activities that will attract more traffic. In addition to the social media branding, the mall should also ensure that its physical signage and looks are exciting, fresh and at par with the current trends.
- What shopping trends do you foresee over the next 10 years?
Unlike in the previous century, the current business environment seems different due to the ever-changing consumer trends and increasing technology integration in commercial activities. Due to these circumstances, firms must stay aware much less predict future business trends to avoid making losses. From this perspective, the features listed below are some of the most notable retail trends that will emerge soon.
- Subscription commerce
According to Budacia (2017) subscription commerce denotes a situation where a firm provides goods or services continuously while receiving payments from clients. Primarily, firms using subscription commerce aim to deliver personalized services whereas maintaining customer loyalty. In this way, more companies are embracing subscriptions to make steady sales and predict future business outcomes Pezzini, (2019). Presently, many online shoppers have subscribed for a particular product, and this trend is set to continue in the next few years.
- Building communities
Because the current business environment is highly competitive, firms will explore more attracting customers beyond selling products and services. In this way, Pezzini, (2019) predicts that more businesses will embrace sustainability and seek to build communities around their brands. Such communities will boost brand image and awareness, attract more clients and enhance customer loyalty.
- Use of predictive analytics to make business decisions
Traditionally, most firms were adversely affected by unprecedented changes in the business environment even when they had collected data. This may not be the situation because more firms are utilizing data and studies to create solutions, make informed decisions and predict the future (Tinwala, 2021). This trend will continue as firms will employ big data in enhancing customer experience and developing personalized products and services.
- Product personalization
Due to the increasing individuality in the modern culture, mass production is rapidly becoming unpopular since every client requires goods and services aligned to their needs and preferences. In this situation, firms are increasingly venturing into making customized products and services to attract and retain clients. For instance, brands like Nike and Chanel and others provide an opportunity for customers to design the products they would like to purchase Pezzini, (2019). Such a trend indicates that firms will be more willing to offer exclusive services in the future.
- Non-stop access to products
Presently, due to urbanization, technology and globalization, consumers require unlimited access to products. In simpler terms, the conventional opening or closing hours are inconveniencing a significant portion of consumers who would like to shop whenever they want. In this light, firms are increasing their operational hours to accommodate more clients. This situation means that more firms will be operating around the clock to meet their client’s demands in the future. Alternatively, such firms will require ultra-fast product delivery systems that will reduce delays. Currently, notable companies are exploring various mechanisms of delivering goods, such as drones. (Pezzini, 2019)
- Automated operations
Typically, all businesses require mechanisms to keep records of the costs incurred in production and the sales obtained from the products. Previously, companies relied on human capital to perform such functions. Currently, more firms are using automated systems to store data safely for use when needed. Through these systems, companies can now manage their stock more efficiently and limit the risk of pilferage. This trend will be more prevalent in the future as firms integrate more technology into their operations.
- Virtual reality
Virtual reality is among the most significant features associated with recent advances in computing technology. Same way, Audi and IKEA are now offering their clients an opportunity to experience their products through virtual reality. Through virtual reality, clients gain more experience of a product before the actual purchase and thus, do not overlook important details. As technology advances, more companies will embrace virtual reality to boost sales and, more importantly, reduce customer dissatisfaction. However, Kumar (2021) noted that this trend may adversely affect firms that rely on making physical contact with their clients.
- How will the trend affect suburban shopping malls?
Observably, the future shopping trends discussed above mixed implications on suburban shopping malls. On one side, automation will enable businesses located within suburban shopping malls to manage their stock more efficiently and increase profits. Alternatively, suburban malls will rely on big data to observe market trends, create solutions, and predict sales. Moreover, suburban malls will reap more profits from the increased demand for goods and services in the future (Fantoni et al., 2021). Lastly, suburban malls will benefit by building ties with communities and therefore preserve their presence in society.
Although suburban malls might considerably benefit from future shopping trends, they may also be adversely affected by the impending changes. For instance, due to e-commerce, most suburban malls will face stiff competition from established online businesses and tech-savvy startups (Fantoni et al., 2021). Even as they employ more effective mechanisms like virtual reality and social media marketing campaigns, suburban malls will spend vast resources reinventing themselves and offering customized services.
- What new retail concepts can you identify
As the global business environment gets more complex and unpredictable, firms worldwide are developing ways of increasing their revenue whereas staying in line with the rapidly changing trends. The innovations discussed below are some of the unique retail concepts that businesses use presently.
- E-commerce and social commerce
According to recent statistics, more than two billion across the world shopped online in 2020. Although this figure may have increased due to the circumstances created by the COVID 19 pandemic, studies show that more people will shop online since online businesses are growing with various available products (Kumar, 2021). In addition to e-commerce, social commerce increases as more shoppers can purchase products and services directly from social media platforms.
- Influencer marketing
As firms utilize social media to market and sell their products, most of them also use social media influencers like celebrities and athletes and online content creators to build a positive online brand image. In this case, organizations partner with notable personalities in advertising through pictures and videos that appeal to a broader global audience. Although influencer marketing previously relied on heavily edited advertisements, currently it focuses more on real and relatable experiences (Heddge & Shainesh, 2018).
- Online businesses within spaces
Research indicates that most brick and mortar businesses face closure due to e-commerce, but there has been an unexpected change. Currently, more and more online ventures are opening actual stores to reach their clients. According to….., most online-only firms opening physical premises seek to enrich their client’s experience by integrating e-commerce with conventional shopping.
- AR in shopping
Augmented reality brings an immersive experience that most clients desire. Due to this situation, more firms embrace AI, machine learning and AR technologies to enhance customer experience. Firms like IBM, IKEA, Audi and Shopify are companies that presently use AR technology in retail operations (Riar et al., 2021). With time, the use of AR will increase as consumers will make purchase decisions based on such innovations.
- Value-based production and consumption
Firms are aware that they will not attract more clients even with the most exciting marketing strategies (Pantano, et al., 2018). In this situation, businesses seek to capture their clients’ trust and loyalty by adding more value to products. Such value addition is by building communities and corporate social responsibility. In this sense, companies with shady business practices are more likely to lose their clients once it becomes evident that they are primarily motivated by profits.
- How can you learn more?
Arguably, the retail concepts discussed above are just a portion of the ongoing changes in the external business environment. Managers should be adequately informed on all aspects to develop effective strategies that will save their organization. In this sense, I can learn more by visiting other suburban malls and engaging other managers to learn how they cope and adapt to the present circumstances.
- What strategies do you suggest for learning about new retail concepts?
Whereas learning new retail concepts may seem easy, it can be tricky for a suburban mall manager since they may not have an insight into prevailing market trends. In this case, it would be appropriate to hire professional marketing analysts and firms to assist me in learning new retail concepts. Besides, I would conduct market surveys to obtain information from consumers regarding their needs and expectations, which would tell much about the latest retail ideas.
Conclusion
As a case study analysis, this paper discusses ways to improve the conditions of a struggling shopping mall, the future trends in retailing and their implications on suburban regional shopping malls. Besides, the study discusses the new retail concepts and how managers can learn about emerging trends and concepts in retailing. Generally, this paper explored the above aspects in discovering strategies that suburban regional malls employ to adapt to the current business environment.
Reference
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