Dead Malls are increasing in many countries across the globe. And many of mall owners claim that it is due to 3 main reasons: Online Retail, Competition, and recession.Which I totally do not agree with.
Malls struggle, suffer and get distressed or even die but not because of online shopping that makes only 6% or 10% or let’s say 15% of the retail sales but because they already have mismanagement actions and bad customer experience that pushed shoppers to favor the online shopping option. And if you are convinced that online shopping is one reason for dead malls then why Amazon opened its brick-and-mortar shop?!
Same issue with competition; you as a mall owner had unsatisfied customers for a reason or another like limited variety of goods and services available at your mall, outdated mall, expensive merchandise, low quality, mall overall environment is not appealing anymore….and many causes that caused your mall visitors’ to be eager for another alternative.
Regarding a Recession reason that business owners claim to have an extreme negative impact that would cause their malls to shutdown is in most cases not true.Yes, a recession could cause your mall to suffer , could cause some losses, or it will cause some losses, but this will only and mostly happen for a short period of time and it shouldn’t cause your mall to shutdown it’s doors or go bankrupt. This reflects that your mall already wasn’t in a strong financial position or it wasn’t operating profitably.
In this article I will highlight the 7 real reasons behind dead malls even the ones who enjoyed Success for a decade . And these reasons many mall owners do not realize that they are major and can get their malls to be abandoned and then to be dead malls.
Reason #1 : Tenant Contracts; they are long and expensive or short and also expensive with tight benefits.There is no flexibility and creativity in types of contracts.
Reason #2 : Data & Research : there is no sufficient research and effective data analysis that would power mall owners to be proactive and prepare them selves by implementing changes to cope with the potential future changes instead of being reactive . And here reactive might be so expensive because it might be too late or hard to react.
Reason #3: Most of dead malls were relying on some anchors, who for a reason or another had to leave the mall causing great losses for mall owners and a difficulty in replacing them.Well, mall owners should stop depending on them and should substitute type of tenants to dedicate for example some spaces for the owners themselves for short leases to professional service providers or business people like entrepreneurs or web developers or business centers or unique type of leisure places that visitors would like to enjoy every day. Use your creativity…the idea is to keep spaces by mall owners and utilize them with multiple short business agreements for a great flexible income stream and to target and attract new type of mall visitors.
Reason #4 : Old way of operating : hours of operating like same time and duration of working hours.Provide wide range of services at different time frames.
Reason #5: Targeting one type of segment or demographics. Diversify withing some range or niche of audience but don’t stick only to luxury people or high income ones nor encompass the majority just be strategic and expand within a niche…
Reason #6 : NO Balance; like there is no balance in products and services provided and no balance between the types of tenants and anchors….
Reason #7 : Copy and Paste : and I call some malls like that because they are actually a copy and paste either from other nearby malls or the main branded mall in its country of origin. Neglecting differences of culture major needs and preferences and other demographics claiming that nearby malls or our malls are successful. So, they will also be successful in any other location too.
So dead malls are dead for other reasons, other than online shopping, competition, recession or even fast fashion or outlet malls . They are dead because of these 7 critical reasons that get them to die very quickly.
If you have any other un-common reasons for dead malls then please share it. Thank you .
Don’t forget that you are always absolutely welcome to contact me to move forward with your business.The earlier the better and the faster to achieve great results.
Dr.email@example.com or via skype : Dr.Salam Amin.