Why Shopping Malls Struggle to Survive While Retail Sales are Thriving
Consider how many times a consumer decides to go shopping…do they visit a mall or do they resort to outlets, boutique shops and the like? While many people still think of a shopping adventure where they go to a mall and spend the entire day browsing, many people have started to look at specific retail stores they wish to visit. In fact, this is being seen throughout the United States. According to the latest statistics, within the next five years, around 20-25% of malls are projected to close. How can this projection occur while the number of retail sales is increasing at a rapid rate?
The Demise of the Shopping Mall
The same study by Credit Suisse states that while malls will be closing, online retail sales are going to be increased by 35% in the year 2030. This presents one of the main reasons that many shopping malls are facing that makes it hard to survive: online shopping. This is not something that surprises most people, as the world of online shopping has been growing progressively in the past five years. In fact, consider this stat: when surveyed, around 60% of adults state that they resort to online shopping rather than going to a mall.
Aside from the rise of online shopping, another fatal factor that adds to the demise of these shopping malls is the fall of Anchor Tennants. Many of the malls throughout the United States are anchored by one large store. For example, Sears, JCPenney, and even Macy’s. The problem is that these stores are closing many of their branches throughout the US. When the main anchor store closes, many of the smaller stores throughout the mall find it hard to stay in business and attract shoppers.
How Retailers are Thriving
How can individual retail stores in these malls, still thrive amongst all these barriers? Due to the majority of these brick and mortar retail stores have an online presence. These retail stores are also using online technology to make their brick and mortar stores more appealing to their demographic.
The Driving Demographic - Millennials
The driving demographic that many retailers are targeting is Millennials. Millennials are still going to shopping malls and retail stores all while they partake in shopping online. So, while many shopping malls are seeing stores leaving, it is not as dire as what most statistics and projections state.
So, what are Millennials looking for when they go into any retail store or shopping mall? They want an experience that is customized and personalized to their own shopping habits. They want the ability to look online and go into the store to find what they want. They want goods that can easily be found online and delivered to their store of choice. And above all else, they want to socialize with the store that they are shopping with while being rewarded for their dedicated patronage and loyalty!
One method that so many stores are staying up to date with the Millennial demographic is by providing mobile apps that allow customers to receive special offers, see rewards and stay up to date on all the latest and greatest their favorite retailers have to offer. Mobile apps also provide the benefit to retailers like yourself by allowing you to truly to get to know your customers, which is half the battle when surviving in this competitive retail market your product and offerings to your target consumer base. Gofindo provides an easy way for any store to connect with their customers to ensure they are up to date on what it takes to stay competitive in the market.