Mall management strategies
The Mall management strategy that I would be talking builds on the basic idea of interdependence between the Mall and the Retailer. It focuses on the business benefits that can accrue out of collaborated business management between the Mall Developers and the Retailers. This is not to say that the association between these two parties does not exist in the current scenario. Mall developers and Retailers do collaborate, but this collaboration has not been formalized and even when it is formalized, it is rather sporadic in nature. Thus the whole focus of this article is on suggesting a structured and formal way of collaboration between the Retailer and the Mall.
This concept is a whole process of enhancing customer traffic, sharing costs and increasing the profit margins.
Strategic Perspectives
Sharing the Burden-Collaborative Management
If we look at the customer's perspective, there are two major benefits that every customer seeks out of shopping in a Mall. One is an overall experience and the other is a whole variety of goods under one roof. These two expectations cannot be met satisfactorily either by the Mall developer or the Retailer. But if roles are clearly defined and each one develops a core competence, then a fantastic synergy can arise between the two parties. The Mall and the Retailer should work out a strategy where the Mall focuses on enhancing the overall experience and the Retailer focuses on the delivering a good variety of products. To formalize this association, there would have to be a clear definition of expectations and most importantly sharing of profits.
To summarise, the nature of collaboration would be:
• Redefinition of relationship between malls and retailers. It is no more the tenant landlord relationship that existed traditionally. Both need to consider each other as partners or associates, where one parties growth is greatly dependent on the other.
• Malls and Retailers work together to offer the Customers the complete experience. This complete experience would include products that can offer value for money on the one hand and attractive entertainment on the other hand.
• Through mutual discussions, collaborative strategy is defined and areas of core competence are identified. Each one seeks to improve and perfect the specific area of Competence. For e.g. Mall Developer could take up the responsibility of organizing promotions, while the retailer plans the merchandise according to the promotions requirements.
Pulling in the Customers
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
In recent years there has been major growth in the wider business world surrounding the overall influence that the retailing industry holds and because of which, retailing and the issues that surround it have become a vital influence in today’s global economy. (Fisher & Raman, 2001)
Shopping malls didn't just happen. They are not the result of wise planners deciding that suburban people, having no social life and stimulation, needed a place to go (Bombeck, 1985). The mall was originally conceived of as a community center where people would converge for shopping, cultural activity, and social interaction (Gruen & Smith, 2005). It is safe to say that the mall has achieved and surpassed those early expectations. Unfortunately, in today's consumer culture, the mall is the center of the universe and and this has shaped consumers in a negative way.
Most Wal-Marts are considered supercenters because they are the leading company in terms of sales in today’s society. Barry Berman and Joel R. Evans define supercenters as, “a combination store blending an economy supermarket with a discounted department store” (123). Indeed, Wal-Mart offers a wide variety of merchandise, including a large selection of food product along with general merchandise for a low price displaying the qualities of a full-line discount store. Wal-Mart incorporates the retail strategy as a one-stop shop, so to speak. Customers appeal to this factor when deciding where to shop, and how to
For a retail manager determining location for an organisation, it must be decided whether the business holds ‘’competitive advantage’’ and whether there is opportunity to outperform competitors and capture a share an existing market. (Kim, W. C., Mauborgne. R. 2005) If a retail manager was to determine that little to no existing competitors in a location it could prove massively influential on where to base a business. (Kim, W. C., Mauborgne, R. 2005)
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
This section will be examining the anchor tenants that are present at Vaughan Mills. The main formal, traditional anchor at Vaughan Mills is Bass Pro Shops Outdoor World. This is a traditional anchor because it is a department store and additionally it is located on one end of the mall. Many people are drawn towards this retailer because it has a waterfall and small pond at the entrance and a large fish tank inside the store. Additional formal, traditional anchors include The Children’s Place, Designer Depot, DSW, Forever 21, and H&M. Moreover, these are all traditional anchors because they are department stores and all these anchor stores happen to sell apparel. An informal anchor that is located in the mall is LEGOLAND Discovery Centre. This is an informal anchor because, although it is an amusement park for children, it attracts many families. The reason for this is because it is the only location in Canada, whereas the rest of the locations are in The United States of America. These anchors help define the specialty of the mall because they all
The retail industry is as old as human civilizations, and it’s worth noting the retail sector is much better geared to change than most sectors. Over the past couple of decades there has been a wide range of changes in the retailing business. The retail sector dates back to the early 1800’s when the first local corner store sold common household items and basic groceries. As its name states, the corner store was just that, stores strategically placed on corners on high foot traffic areas for easy access. As society started to grow so did the need for new consumer goods and how a consumer would reach those goods. Department stores became popular simply because they were able to offer an assortment of categories and a variety of items within those categories all under one roof. The first two cities to start developing large scale department stores were New York City, and Chicago. In New York in 1846, the first building was built offering a variety of goods at fixed prices that were shipped from Europe. Department stores moved away from the idea of bartering and all items sold were considered fixed. However, department stores did offer discounts and coupons as a way to get customers in the door. In 1862, the largest department store was built during this time in New York City. The department store was on a full city block with eight floors and nineteen departments of dress goods, furnishing materials, carpets, fine china, toys and sports equipment. All these items were arranged around a central glass-covered court. The glass windows quickly became a staple in the department stores design. The act of window shopping was introduced and quickly all department stores had floor to ceiling windows advertising the newes...
Shoe stores, people love them hate them but cannot keep away from them. Let’s be honest everyone loves shoes. Two big shoe stores at the Mall are Champs and Footlocker these stores are notorious for having the newest styles, trends and up to date freshest shoes. These two stores are very similar in some aspects but in some are very opposite varying in their placement of merchandise,sales, price’s, staff, and appearance. But in overall it comes down to who has the best sales and customer service which both are very similar.
Mall appreciators argue that the malls are centers of entertainment and pleasure for mall visitors. George Lewis in “The mall as Refuge”, asserts that “kids come to look around, meet and make friends, stay away from home and hang out- because there is nowhere else to go” (1990, P. 309). He believes that teenagers go to malls to socialize and to escape from the troubles in their lives and at home. Therefore, malls serve as a second home for kids. Similarly, Lewis says that with the controlled environment of malls, with the security and the central location of malls as a good reason why many retired, and old people visit malls. Here they get to meet up with old friends, exercise, eat out, and share experiences with their old friends. These two groups as Lewis claims are misfits in society because; the world considers them as unproductive. Jon Pahl also ...
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Goss argues that developers and designers of the built environment, specifically shopping centers and malls, use the power of place and understanding the structural layout of the space to boost consumption of the retail profits. Shopping centers are separated from the downtown area of shopping either by distance and/or design. These establishments emerge for many to be the new heart and location for public and social life. In his article The "Magic of the Mall": An Analysis of Form, Function, and Meaning in the Contemporary Retail Built Environment, Goss also argues that the regulation of the spaces within the mall creates an atmosphere of "community" rather than one that is "public".
People are always going to go shopping. A lot of our effort is just: 'How do we make the retail experience a great one? '” - Philip Green
Variety is another advantage of the mall. There are specialty stores, such as candle stores, bath and beauty stores and music and video stores. These are the anchors of the mall, and the mall provides "odd stores" for those eccentric shoppers who are looking for different items.