Shopping Malls have ceased to be a place designated for shopping and buying and selling of goods. Across the world, malls today are expected to cater to ever wider expectations. More and more consumers and visitors demand a unique and novel experience for their day out, something that offers an immersive experience that they can enjoy, take pictures of and cherish with friends or family.
Statistics and research shows that consumers are willing to spend both their time and money on shops offering a novel or unique experience.
The Overarching Trends in the Mall and Retail Sector Across the North American Region
- The landscape is evolving at an accelerated rate. The brick and mortar model of the retail is receiving extreme competition from other business models, especially the online model of retail and therefore is forced to adapt and evolve to survive. Futuristic and forward looking mall owners are already adapting and evolving across USA and Canada and the trend is projected to continue.
- Customers Will Redirect Billions of dollars from discretionary goods to discretionary services. This will entail conversions of shopping-centre space to leisure and entertainment uses over the next five years. Also to cater to such a shift, focus will fall on the experience side of the shopping by hosting events and pop-up stores.
- Online sales growth will more than double in the next few years. It won’t be wrong to say that ecommerce is at the heart of this ongoing change. According to the US Department of Commerce, total eCommerce sales for 2018 stood at $513.6 billion, an increase of 14.2 percent from 2017. eCommerce sales in 2018 accounted for 9.7 percent of total sales, while in 2017, they accounted for 8.9 percent of total sales.
Down, But Not Out
The mall as a concept is not dead, but it needs to evolve and adapt to survive the onslaught of other options in retail, largely triggered by eCommerce and technology. Already, there are malls in US that are incorporating the latest in technology and entertainment to provide a more charming and engaging experience to the customers. Things such as the Artificial intelligence-infused walkways, the smart changing rooms that allow you to virtually try clothes and sizes without even getting into them, or the eye scanners to provide a personalised experience to the customer throughout the visit, are good examples of this.
However, the real thrust forward is expected to come from totally re-imagined retail where stores will act as stages demonstrating the processes behind the production of the good or service or the brands or makers behind the service or goods. Farm allotments will actually allow customers and shoppers to pluck and pick their own produce.
Another major strand of the mall evolution will see them become leisure, dining and entertainment destinations where shopping will be relegated to as “just one of its functions or offerings”, and not the primary one either.
The Case of The Amazing Brentwood
USA has been trying to catch up to changing trends in retail and mall business for some time. With “The Amazing Brentwood” project underway in Vancouver, Canada too is starting off in a big way.
The Amazing Brentwood, touted as the most significant project in Canada, is an unprecedented $2.5B project that is set to redefine shopping experience as it plans to merge it with the luxurious living and entertainment opportunities. The best of dining, retail and entertainment from across the best cities in the world will be incorporated in the planned project to provide the best in urban living in the heart of Vancouver.
The Dining, Shopping and Culture Experience
With over 250 top-tier brands, restaurants and services almost handpicked and carefully placed across the landscaped streets and plazas, Brentwood will be the “times square” of Vancouver. People will be able to dine in at exquisite restaurants, gather for celebrations, as it will provide an exciting, yet secure public space.
Amazing Living
11 luxurious towers will provide dazzling views in every direction. The capacious balconies and kitchens will incorporate open-plan designs that will afford amenities of larger residences. With all the exclusive and sumptuous private amenities coupled with an intelligently planned community, the residents will enjoy the highest of living standards.
The Anchor Tenants
The Cineplex, a massive 64,700 square feet entertainment centre will serve as the anchor tenant that will serve as a hook for the visiting audience and bring most footfall. It will include a VIP cinema with five lounges, a sports bar, upscale restaurants and a massive rec room, “the Playdium”– offering, immersive high tech virtual reality gaming, bowling and dining options such as an upscale restaurant and sports bar.
Trends Across Canada
- Research suggests that all landlords across Canada are trying to attract “service oriented and engaging entertainment businesses”.
- Construction is underway on the overhaul of the Lougheed Town Centre. With an estimated cost of $7-billion, this 37-acre retail and community hub will boast 20 towers and 10,000 housing units once completed.
- Also, the Oakridge Centre is all set to transform into a sprawling community and retail hub with 2,000 appartments, 600 market and non-market rentals, services and cultural attractions.
- A similar Multi-billion-dollar activity at the Metropolis Sears Metrotown site is also underway.
- Incorporating office towers and luxury appartments into new retail developments ensures that thousands of established residents will be step away from their retail tenants.
- The new designs entirely shed the enclosed-mall feel, replacing it with a “high street” approach that emphasises natural light and a diverse mix of shops, restaurants, services, and above all safe, shared space indoors and out.
What is Happening in the USA?
Malls in the suburbs across United States are taking the brunt of the changing consumer trends and expectations as they shut down in large numbers. According to an analysis by the Credit Suisse, almost 25% are predicted to close down by 2025.
People are increasingly less inclined to roam around in these malls, when most of the things on offer can be readily purchased online. The concept of malls for the American consumer is rapidly evolving to that of a “third space” besides office and home where they can hang out with friends, engage in immersive activities, take their kids, dine in and have a good time.
The malls that are adapting by creating more experience driven spaces instead of a primarily shopping environment, are the ones that are not only surviving but thriving as well. Incorporating experience driven businesses such as fitness centres, movie and gaming theatres and fine dine restaurants are effectively turning the mall into a place to “do stuff” not just “buy”.
