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IELTS Essay: Purpose of Shopping Malls
by Cang Do Trung (Vietnam)
In the future, the main reason for going to the shopping mall will be for entertainment, not to shop. Do you agree or disagree? The tendency of going to the shopping malls for entertainment has been increasing over the past few years and it is predicted that in the future, entertainment will be the main reason why visitors spend their time there. Personally, I totally agree with this opinion and in this essay, I will explain why this trend will continue to happen. Firstly, in a fast-changing world, the owners of various shopping malls seem to understand the drastic competition among them, so they have decided to develop a variety of creative and innovative recreation facilities to offer a wide range of services to the customers as well as to increase the profit margin in their business. This happens due to the fact that, nowadays, there are a lot of entertainment facilities being available. Secondly, online shopping is in vogue and, as a result, this forces the leaders of shopping malls to develop many kinds of entertainment facilities so that they can remain an attraction and retain customers. Finally, the shift in customers’ behaviors which is considering going shopping as a way to release their stress makes other entertaining activities like watching movies, playing video games, and reading books more acceptable in such places. Of course, some shopping malls which are well-known as shopping paradises would remain their main function. However, it is surely that these shopping malls should consider the entertainment aspects as, generally, having a wider service is beneficial at all. Overall, it appears to me that the prediction is obviously happening in various shopping malls, with the advantages that recreation facilities bring to them.
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Home — Essay Samples — Business — Shopping Mall — My Favourite Shopping Place: A Shopping Mall
My Favourite Shopping Place: a Shopping Mall
- Categories: Shopping Shopping Mall
About this sample
Words: 1087 |
Published: Aug 31, 2023
Words: 1087 | Pages: 2 | 6 min read
Table of contents
Introduction, the appeal of shopping malls, my favourite aspects of shopping malls, works cited.
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Test Resources
TOEFL® Resources by Michael Goodine
Sample imaginary situation essay – opening of a new shopping center, the question.
Imagine that it has been announced that a large shopping center will open in your neighborhood, and you have been asked your opinion. Would you support or oppose its construction? Use specific reasons and details to support your answer.
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The Sample TOEFL Essay
Shopping malls have a major impact on the neighborhoods surrounding them. Personally, I believe that these effects are mostly negative, so I would oppose the construction of a new shopping area in my town. I feel this way for two reasons, which I will explore in the following essay.
To begin with, a shopping mall would cause many small local businesses to shut down, which would have a negative effect on overall employment. It is true that a shopping mall would employ a lot of people from the community, but the jobs lost at small local retailers forced out of business would be greater in number. For instance, when a shopping mall opened in the small town where my parents live, it forced their favorite local hardware store out of business. Even though the hardware store located in the new mall was three times as large as the family store, it only employed half as many people. Not only that, but the small local store employed well-paid experts, while the shopping mall mainly hires teenagers who earn minimum wage.
Secondly, shopping malls often result in urban sprawl, which is something that reduces the quality of life in the surrounding area. While small local shops are usually located at the center of a city, shopping malls are usually found on the outskirts of town. It is possible for customers to walk to local stores found downtown, but it is necessary to drive to shopping malls. To make matters worse, after a shopping mall becomes successful, other retailers will open up nearby and patronizing them also requires driving. I am of the opinion that the ability to walk to shops and services is a part of a high quality of life. My brother’s experience is a compelling example of this. Last year, a shopping mall opened in his city, and his favorite downtown bookstore closed as it couldn’t compete with the new bookstore in the mall. He has told me many times that driving forty minutes just to buy a book is a real inconvenience, especially since he could just walk to the old bookstore.
In conclusion, I would strongly oppose the construction of a shopping mall in my hometown. This is because it would force small family-run businesses to shut down, and because it would cause my life to be less pleasant. (394 words)
This is a sample TOEFL personal preference essay written by a TOEFL expert. It follows our TOEFL writing templates for independent essays. If you find it useful, please remember that we have many more sample essays for you to read!
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IELTS Essay: Malls and Leisure Time
by Dave | General Training IELTS Writing Task 2 Sample Answers | 5 Comments
This is an IELTS writing task 2 sample answer from the general training test about the topic of leisure time.
It’s a very common topic and you can read the exact structure that you should use on IELTS below as well as do some some practice yourself.
Attention : if you are enjoying my free essays, please consider supporting me and sharing with your friends about my Patreon here (and getting access to additional, exclusive materials and Ebooks!).
IELTS Writing Task 2 General Training Sample Answer: Malls and Leisure Time
Shopping is now one of the most popular forms of leisure activities in many countries for young adults.
Why is this?
Do you think this is a positive or a negative development?
Shopping has become more common as a result of the introduction of large shopping malls. I strongly believe this has brought considerable economic benefits to society at large.
Since the advent of the mall, companies have relentlessly sought new ways to attract consumers, resulting in today’s megamalls. In the past, shoppers would make dedicated trips to specific stores for products. In the 1980s in the United States, the novel combination of shopping plazas and department stores with entertainment venues like state-of-the-art cinemas and appetizing foods courts made them the centre of social activity for a generation. It is therefore no wonder that youths and adults alike the world over opt to spend their time and money shopping at malls that cater to all their needs.
While some might argue that shopping is largely a waste of time, I feel that its economic advantages outweigh other concerns. Masses of wealthy middle-class consumers contribute greatly to economic prosperity and that brings various benefits to all socioeconomic classes. A counter-point illustrating this would be in Japan in the last two decades where a long recession has decimated the middle-class, leading to decreased shopping, closures of malls and a stagnant economy. The government has desperately lowered interest rates in order to stimulate the type of spending that malls encourage. Malls, as one crucial part of a consumer society, serve to encourage spending and national prosperity.
In conclusion, an increasing number of people frequent malls for their convenience and this boosts the economy. If governments were to invest more money in tax cuts this would further encourage spending at malls and help developing nations and developed ones whose growth has plateaued.
1. Shopping has become more common as a result of the introduction of large shopping malls. 2. I strongly believe this has brought considerable economic benefits to society at large.
- Paraphrase the overall essay topic.
- Write a clear opinion. Read more about introductions here .
1. Since the advent of the mall, companies have relentlessly sought new ways to attract consumers, resulting in today’s megamalls. 2. In the past, shoppers would make dedicated trips to specific stores for products. 3. In the 1980s in the United States, the novel combination of shopping plazas and department stores with entertainment venues like state-of-the-art cinemas and appetizing foods courts made them the centre of social activity for a generation. 4. It is therefore no wonder that youths and adults alike the world over opt to spend their time and money shopping at malls that cater to all their needs.
- Write a clear topic sentence answering the first question with your opinion at the end.
- Explaing your main idea.
- Start a specific example and develop it fully.
- State the results of your example.
1. While some might argue that shopping is largely a waste of time, I feel that its economic advantages outweigh other concerns. 2. Masses of wealthy middle-class consumers contribute greatly to economic prosperity and that brings various benefits to all socioeconomic classes. 3. A counter-point illustrating this would be in Japan in the last two decades where a long recession has decimated the middle-class, leading to decreased shopping, closures of malls and a stagnant economy. 4. The government has desperately lowered interest rates in order to stimulate the type of spending that malls encourage. 5. Malls, as one crucial part of a consumer society, serve to encourage spending and national prosperity.
- Write another topic sentence with a new main idea .
- Give an example or counter-example.
- Develop the example.
- State the final results.
1. In conclusion, an increasing number of people frequent malls for their convenience and this boosts the economy. 2. If governments were to invest more money in tax cuts this would further encourage spending at malls and help developing nations and developed ones whose growth has plateaued.
- Repeat and summarise your main ideas.
- Add a final thought/detail. Read about conclusions here .
What do the words in bold below mean?
Shopping has become more common as a result of the introduction of large shopping malls. I strongly believe this has brought considerable economic benefits to society at large .
Since the advent of the mall, companies have relentlessly sought new ways to attract consumers , resulting in today’s megamalls . In the past, shoppers would make dedicated trips to specific stores for products. In the 1980s in the United States, the novel combination of shopping plazas and department stores with entertainment venues like state-of-the-art cinemas and appetizing foods courts made them the centre of social activity for a generation . It is therefore no wonder that youths and adults alike the world over opt to spend their time and money shopping at malls that cater to all their needs .
While some might argue that shopping is largely a waste of time , I feel that its economic advantages outweigh other concerns . Masses of wealthy middle-class consumers contribute greatly to economic prosperity and that brings various benefits to all socioeconomic classes . A counter-point illustrating this would be in Japan in the last two decades where a long recession has decimated the middle-class, leading to decreased shopping, closures of malls and a stagnant economy . The government has desperately lowered interest rates in order to stimulate the type of spending that malls encourage. Malls, as one crucial part of a consumer society , serve to encourage spending and national prosperity .
In conclusion, an increasing number of people frequent malls for their convenience and this boosts the economy. If governments were to invest more money in tax cuts this would further encourage spending at malls and help developing nations and developed ones whose growth has plateaued .
as a result the outcome is
introduction of since they started
considerable economic benefits good for the economy
society at large all of society, all citizens
advent beginning of
relentlessly sought looking hard for
attract consumers bring in shoppers
resulting in the result/effect is
megamalls really big malls/shopping centres
make dedicated trips going there just for
novel combination new mix
plazas publick places
department stores malls
entertainment venues cinemas, arcades, etc.
state-of-the-art cinemas new movie theatres
appetizing foods courts enticing restaurants in a mall
centre of social activity social hub
for a generation for all people born around the same time
no wonder little surprise
alike the same
the world over everywhere in the world
cater to all their needs can do whatever they want there
largely a waste of time mostly not a good use of time
economic advantages outweigh other concerns benefits to the economy more important than
masses large groups of people
wealthy middle-class consumers people with some money, not too rich or poor
economic prosperity good for the economy
socioeconomic classes rich and poor people
a counter-point illustrating this would be in an example of the opposite case is
long recession lengthy economic downturn
decimated hurt a lot
closures of malls malls closing down
stagnant economy economy not growing
desperately lowered interest rates hurriedly cut the rate for borrowing money
stimulate encourage
crucial part key element
consumer society people shopping
encourage spending stimulate buying
national prosperity a country making money, doing well
frequent go to a lot (verb)
boosts increases
tax cuts reducing the money you have to pay in taxes
growth has plateaued stable, not increasing or decreasing
Pronunciation
æz ə rɪˈzʌlt ˌɪntrəˈdʌkʃən ɒv kənˈsɪdərəbl ˌiːkəˈnɒmɪk ˈbɛnɪfɪts səˈsaɪəti æt lɑːʤ ˈædvənt rɪˈlɛntlɪsli sɔːt əˈtrækt kənˈsjuːməz rɪˈzʌltɪŋ ɪn ˈmɛgə mɔːlz meɪk ˈdɛdɪkeɪtɪd trɪps ˈnɒvəl ˌkɒmbɪˈneɪʃən ˈplɑːzəz dɪˈpɑːtmənt stɔːz ˌɛntəˈteɪnmənt ˈvɛnjuːz steɪt-ɒv-ði-ɑːt ˈsɪnəməz ˈæpɪtaɪzɪŋ fuːdz kɔːts ˈsɛntər ɒv ˈsəʊʃəl ækˈtɪvɪti fɔːr ə ˌʤɛnəˈreɪʃən nəʊ ˈwʌndə əˈlaɪk ðə wɜːld ˈəʊvə ˈkeɪtə tuː ɔːl ðeə niːdz ˈlɑːʤli ə weɪst ɒv taɪm ˌiːkəˈnɒmɪk ədˈvɑːntɪʤɪz aʊtˈweɪ ˈʌðə kənˈsɜːnz ˈmæsɪz ˈwɛlθi ˈmɪdl-klɑːs kənˈsjuːməz ˌiːkəˈnɒmɪk prɒsˈpɛrɪti ˌsəʊsɪəʊˌɛkəˈnɒmɪk ˈklɑːsɪz ə ˈkaʊntə-pɔɪnt ˈɪləstreɪtɪŋ ðɪs wʊd biː ɪn lɒŋ rɪˈsɛʃən ˈdɛsɪmeɪtɪd ˈkləʊʒəz ɒv mɔːlz ˈstægnənt i(ː)ˈkɒnəmi ˈdɛspərɪtli ˈləʊəd ˈɪntrɪst reɪts ˈstɪmjʊleɪt ˈkruːʃəl pɑːt kənˈsjuːmə səˈsaɪəti ɪnˈkʌrɪʤ ˈspɛndɪŋ ˈnæʃənl prɒsˈpɛrɪti ˈfriːkwənt buːsts tæks kʌts grəʊθ hæz ˈplætəʊd
Vocabulary Practice
Remember and fill in the blanks:
Shopping has become more common a___________t of the i________________f large shopping malls. I strongly believe this has brought c______________________________s to s_________________e .
Since the a__________t of the mall, companies have r_______________________t new ways to a________________________s , r_____________n today’s m_______________s . In the past, shoppers would m______________________s to specific stores for products. In the 1980s in the United States, the n________________________n of shopping p_________s and d____________________s with e________________________s like s__________________________s and a___________________________s made them the c_________________________y f_____________________n . It is therefore n________________r that youths and adults a______e t__________________r opt to spend their time and money shopping at malls that c______________________s .
While some might argue that shopping is l_____________________e , I feel that its e______________________________________s . M_________s of w________________________________s contribute greatly to e__________________________y and that brings various benefits to all s_____________________________s . A__________________________________________n Japan in the last two decades where a l____________________n has d____________d the middle-class, leading to decreased shopping, c________________________s and a s__________________y . The government has d_____________________________s in order to s______________e the type of spending that malls encourage. Malls, as one c_______________t of a c______________________y , serve to e________________________g and n__________________________y .
In conclusion, an increasing number of people f______________t malls for their convenience and this b__________s the economy. If governments were to invest more money in t___________s this would further encourage spending at malls and help developing nations and developed ones whose g______________________d .
Listening Practice
Listen about this topic below with an example from The Philippines:
Reading Practice
Learn more about this from Psychology Today as well:
https://www.psychologytoday.com/us/articles/199501/the-call-the-mall
Speaking Practice
Practice with the following questions from the real IELTS speaking exam :
- Do people in your country shop at malls or street markets?
- Is online shopping common?
- Is it better to shop alone or with friends?
- Why is online shopping becoming more popular?
- Is shopping a waste of time?
Writing Practice
Write about the following topic then check with my sample answer:
Some people think that it is better to build more public parks and sports facilities in new towns rather than shopping malls.
To what extent do you agree or disagree?
IELTS Writing Task 2 Sample Answer General Training: Shopping Malls (Real IELTS Test)
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Nowadays it has become a trend for young adults to go for leisure shopping every now and then. I strongly believe it has bought a considerable imbalance in their finances.
Since the advent of malls these days many companies have established different businesses ranging from clothing, food, gaming, and departmental stores with cinema halls and many more. Most of the companies promote their products with massive promotions and numerous offers to their customers which lure them easily. With the offers like these, young adults get easily trapped in the campaigns and overspend at the end of the day which leaves them broken. For example, a recent survey conducted by the city council has identified that 80% of people of young adults like to spend their free time at shopping malls and departmental stores. Some even like to go to the gaming bar or clubs.
There are many drawbacks to this, when young people tend to spend more at unnecessary things, they would certainly get skint at the end of the month. Firstly, due to poor financial planning, many young people end up speding way too much than required. So, there is no wonder that the young adults tend to shop more than it is needed and spend their both time and money at malls. Secondly, due to less money, they tend to borrow money from family and friends which puts them in a dire situation.
In conclusion, an increasing number of young adults spends most of their money by frequently doing the leisure shopping which in turn leaves them with no or very little money.It is always recommended to plan the budget accordingly to keep the finances upright.
Great job, Atish!
Your paragraphing is a little strange though – try to write in 4 paragraphs like in my essay.
Try to develop the drawbacks more instead of listing them.
Hello, in conclusion paragraph, I think, 1st sentence seems incorrect. Like- number of people frequent mall….
Good question Sandra but that one is actually correct, just a rare usage – you can use frequent as a verb like: More people now frequent museums (meaning go to).
Is that clear?
Oh. That’s a new type of sentence. Amazing!
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Best topics on Shopping
1. The Essential Benefits of Shopping Malls
2. Online Shopping Vs Traditional Shopping: The Better Way To Shop
3. The Choice Between Store Shopping And Online Shopping
4. Confessions Of A Shopaholic: Living Under The Life Destructive Control Of Addiction
5. Role of the Purposes Behind the DLF EMPORIO Mall in New Delhi
6. Retail Apocalypse – The Fall of The Shopping Malls
7. Analysis Of Purchase Decision Making Process
8. How Center American Respects Influence Customer Lead
9. Technology – Redefining The Landscape Of Apparel Industry
10. The View Of Supermarkets In China
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Ielts writing task 2 sample 981 - large shopping malls are replacing small shops, ielts writing task 2/ ielts essay:, large shopping malls are replacing small shops. what is your opinion about this.
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The future of the shopping mall
Officially shopping malls are defined as “one or more buildings forming a complex of shops representing merchandisers, with interconnected walkways enabling visitors to walk from unit to unit.” 1 Wikipedia Unofficially, they are the heart and soul of communities, the foundation of retail economies, and a social sanctuary for teenagers everywhere. In recent decades, the concept of the shopping mall, which has its origins in the U.S. and became a full-blown modern retail trend there in the post-WWII years, has proliferated across the globe. The five largest malls in the world now reside in Asia. China’s New South China Mall in Dongguan stands at the top of the heap with 2.9 million square meters of space.
Despite its ubiquity, the mall as it’s been conceived for the last half century is at a critical inflection point. A storm of global trends are coming together at the same time to cause malls to change the role they play in people’s lives. No longer are they primarily about shopping. Now, when consumers visit malls, they are looking for experiences that go well beyond traditional shopping.
The trends helping to create this change include changing demographics, such as an aging population and increased urbanization, which means more people living in smaller spaces and a greater need for public spaces in which to socialize and congregate. In this environment, malls offer a welcome watering hole, especially in cities where other public spaces are not safe. Sustainability concerns are causing some consumers to prefer mixed use developments where they can live, shop and work all within walking distance – instead of having to get into a car and drive to a crowded suburban mall. The growing middle classes in Latin America and Asia maintain a strong association between consumption and pleasure, driving the need for more engaging shopping experiences. And finally, the e-commerce revolution and the rise of digital technologies are fundamentally reshaping consumer expectations and shifting the function of stores toward useful and entertaining customer experiences.
As these trends advance across the global stage, they are forcing mall operators to rethink how they conceive and operate their properties. This identity crisis is most intense in the U.S., the country that pioneered malls and has the most malls per inhabitant. Thanks to a continued economic slowdown and rapid advance of the digital revolution, the U.S. mall industry is retracting and facing high vacancy levels. Websites such as deadmalls.com collect pictures of weedy parking lots and barren food courts, and try to explain how once-thriving shopping centers began to spiral downward.
In the face of these considerable challenges, malls are seeking to stay relevant, drive growth and boost efficiency. We see successful players investing along three key fronts.
1. Differentiating the consumer offering, with a focus on experience and convenience.
Online shopping provides consumers with ultimate levels of convenience. Malls will never be able to compete with the endless product selection, price comparisons and always-on nature of online. Nor should they try. Instead, malls need to move in a different direction, away from commoditized shopping experiences and toward a broadened value proposition for consumers.
Innovative malls are incorporating value-added elements that attempt to recast the mall as the new downtown, including concerts, arts centers, spas, fitness clubs, and farmer’s markets. These services provide a level of leisure and entertainment that can never be satisfied online. Xanadu, a mall 30 km from Madrid, for instance, has gone out of its way to provide the means for parents to spend quality time with their children. The mall features a ski slope, go karts, balloon rides, bowling and billiards. Similarly, the Mall of America in Minnesota has an underwater aquarium, a theme park, and a dinosaur walk museum. In Brazil, for instance, a new focus on leisure and entertainment is already driving growth. Revenue coming into malls from these offerings grew 41 percent in 2013 compared to 2012.
An emphasis on fine dining and events is also helping to make malls the hub of the local community – a place to share quality time with friends and family, not just wolf down a meal at the food court. The King of Prussia Mall, located 30 km from Philadelphia, has a Morton’s Steakhouse and Capital Grille. The Crystal Cove shopping center in Newport Beach, CA has more than a dozen upscale restaurants, including Tamarind of London and Mastro’s Ocean Club.
On the tenant mix front, innovative malls are strategically rethinking the types of stores that consumers will respond to. Anchor tenants that drive traffic are still key, but we also see a new emphasis on a curated mix of smaller stores that add a sense of novelty to the mall offering. Additionally, some malls are making greater use of temporary, flexible spaces that can accommodate different stores over time. Pop up stores, showroom spaces and kiosks provide customers with a sense of the unexpected and give them a reason to treasure hunt.
Finally, malls are overcoming the commoditization problem by focusing on specific consumer segments and/or creating specific zones within the mall that allow consumers to find an area that caters to them. In the Dubai Mall, for instance, “Fashion Avenue” is an area dedicated to luxury brands and services tailored to the upscale customer, including a separate outside entrance and parking area. In the 7-story CentralWord mall in Bangkok, home décor is on the 5th level, technology on the 4th, and fashion apparel on 1-3. This approach also represents a way for malls to ensure that customers don’t get lost inside the ever increasing square footage of malls.
2. Transforming the mall experience by leveraging technology and multichannel strategies.
The digital transformation of retail is not all bad news for malls. On the contrary, it presents new opportunities for malls to engage consumers throughout their decision journeys. There are three primary ways in which malls are leveraging technology:
First, they are extending their relationships with customers to before and after the mall visit. This is about engaging customers through compelling content and creating deeper bonds with them through social media and proprietary sites and apps, as well as loyalty programs. Social media can be used, for instance, to create buzz about new tenants or solicit ideas from consumers about ideas for new stores. One mall company has utilized segmented Facebook communication to speak to different communities, such as different geographies or interest groups or specific malls. Mall loyalty programs can provide the means for malls to establish a direct relationship with customers that goes beyond each visit to the mall, while allowing malls to collect precious information about customers.
Just like retailers, malls should reach out to their customers with customized offers, gift ideas and other targeted advertisements based on real time intelligence and location-based marketing. While malls face the challenge of not having direct access to shopper purchase data, this can be overcome by inducing shoppers to use their smartphone to scan purchase receipts in exchange for points that can be redeemed for concerts tickets, books, discount vouchers for participating merchants, free parking or invitations to events (e.g., a fashion show). Alternatively, technologies such as face recognition, location-based mobile ads, and beacons are already being successfully applied in order to identify and establish targeted contact with repeat customers. Such technologies are also valuable for gathering consumer behavioral data from which malls can glean useful insights.
Secondly, malls are using technology to transform mall usability as a means of improving customer satisfaction. There is ample opportunity for malls to decrease customer pain points, while simultaneously creating entirely new delight points. Technology, for instance, can be used to address one of the biggest challenges shoppers face at the mall – finding parking. Sensors located in parking lots detect how many spots are available on each level and give visual indicators to drivers. Once within the mall, mobile apps can offer quick, easy guides to help shoppers find what they’re looking for at today’s increasingly large and multi-level malls.
Thirdly, malls are utilizing digital capabilities to take the shopping experience to the next level. It critical for malls to take a more active role in shaping the shopping experience, either by acting more like retailers or by partnering with them. Mall players are experimenting with a variety of different business models to make this happen, but there are no certain winners yet. To introduce elements of e-commerce into the mall, Taubman partnered with Twentieth Century Fox to put virtual storefronts – “Fox Movie Mall” – in at least 18 luxury malls. There, shoppers can purchase movie tickets by scanning a QR code with their smartphone. As the barriers between online and offline blur, some mall operators are venturing into online with a complete virtual mall offering. In 2011, the Australian mall company Westfield launched an online mall (and later a mobile app) with 150 stores, 3,000 brands, and over 1 million products. The company collects a small listing fee from merchants, as well as a commission of between 20-30 percent on every sale. Driven by the knowledge that 60 percent of the 1.1 billion annual shoppers in its malls use mobile devices, Westfield also created a research lab located in San Francisco, with the mission of finding technology applications and services that can further enhance the retail experience for both shoppers and retailers.
3. Exploration of new formats and commercial real estate opportunities.
The most innovative malls today look nothing like their predecessors. Although location remains the key real estate consideration for malls, a differentiated design and structure is increasingly important. Open air malls go a long ways toward lending an atmosphere of a town center, especially when they incorporate mixed use real estate. Many of the malls being built in urban areas are open and fully integrated with the landscape. The Cabot Circus Shopping Centre in Bristol, England, for instance, has a unique shell-shaped glass roof that’s the size of one and a half football fields. Incorporating environmental sustainability considerations, the mall is accessible by public transportation and features a rainwater harvesting system. Even malls that are enclosed are now incorporating more natural ambiance into their design, installing plants and trees, wood walls and floors, waterfalls, and lots of glass to let in natural lighting. Such elements help malls better blend in with their surroundings.
It is critical that malls be about much more than stores. We see the mix of tenant/public space moving from the current 70/30 to 60/40, or even 50/50. When this happens, these expanded public spaces will need to be planned and programed over the year much like an exhibition. They will be managed more like content and media, instead of real estate.
Mixed used developments offer consumers an attractive, integrated community in which to live, work and shop. They also serve to generate additional traffic for the malls while maximizing returns on invested capital. Other commercial real estate opportunities that can add alternative revenue streams are hotels, office buildings and airports.
Lastly, outlets malls are an increasingly popular alternate format in more mature markets such as the U.S., particularly after the downturn of the economy, and they have been a key driver of growth for many players. In emerging economies like Brazil, outlets are also gaining attention and we see mall operators experimenting with this format as a means of attracting price conscious consumers and deal seekers.
Implications for malls
Although these trends are expressing themselves to varying degrees in different markets around the world, we believe they are relevant globally and should be taken to heart no matter where mall companies operate. There are three strategic considerations that players should understand when figuring out how to best react.
1) Evolve the offering by defining a clear value proposition for both consumers and retailers, anchoring it on deep consumer insights and bullet-proof economics. Among the large universe of options for enhancing the customer experience, it is possible to identify initiatives that will be both ROI-positive and substantially boost the satisfaction customers have toward malls. To do this, mall players must first isolate and quantify the consumer touch points that are most responsible for driving satisfaction. Use these touch points to prioritize areas of investment and to design a cohesive customer experience program that will yield higher visit and/or spend rates, and ultimately greater consumer loyalty.
2) Increase productivity and efficiency of the current mall base through a strategic review of the tenant mix, taking into account consumer needs and retailer economics. This analysis should guide the management of rent pricing and overall commercial planning. On the cost front, the focus should be on strict management of direct and indirect costs, combined with operational efficiency, which is critical for successful customer experience transformations.
3) Think surgically about where and how to grow in a way that won’t jeopardize returns. Focus on city clusters and regions that have distinctive opportunities for growth. This includes thinking purposefully about disciplined capex management and which formats are going to create the biggest impact, whether that’s traditional, multi-use, neighborhood or outlet.
Executing against these considerations will often require that mall players develop new capabilities. Westfield, for example, has established a Digital Office group that reports to the CEO with the mission of spearheading digital initiatives across the organization. Other companies have created “customer experience” teams that are responsible for creating and integrating a unified vision of customer initiatives. Still others have created retail teams responsible for working on partnerships with retailers, or alternatively, operating retail operations themselves.
The world of retail is changing dramatically, but the mall still can have a central role in urban and suburban societies. To avoid becoming what one chief executive calls a “historical anachronism – a sixty-year aberration that no longer meets the public’s needs,” mall operators must expand their horizons of what a mall can be. They must envision themselves no longer as real estate brokers, but instead as customer-facing providers of shoppable entertainment.
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Shopping Mall: Lost In A World
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