Non-retail solutions for underperforming malls - Effectiveness of complementary service and facility

Abstract

More than just a retail activity, shopping has been perceived by consumers as a form of leisure activity entrenched in their everyday lifestyle. Such a change has ushered in a new class of experience-oriented recreational shoppers, which simultaneously demand alterations in the retail industry to match their preferences. Currently, the relentless triumph of major brands over smaller ones has led to a repetitive tenant mix in almost every shopping mall. While this reflects to an extent the success of the local economy in attracting these businesses, it may inevitably lead to a backlash when a unique shopping experience is lost in the face of heightened homogeneity. Therefore, it is imperative for underperforming malls to seek alternative non-retail solutions of complementary facilities or services as a strategy of product differentiation in order to have an edge in the highly competitive retail-scape. Based on a survey among 300 respondents, complementary services and facilities have beneficial impacts on an underperforming mall. Patrons who come mainly for complementary service/facility remain for a shorter duration but have higher frequency of monthly visits. 86.4% of the respondents showed interest and awareness towards complementary service/facility. The response to complementary service/facility is generally positive as shown by the t-test where the neutral standpoint is rejected as a null hypothesis.. With regard to underperforming malls, 80.7% of the respondents are willing to revisit the mall if their desired complementary facility is added. Similarly, 83% of them are keen to revisit should their selected complementary service be introduced. The findings from this study suggest that mall operators should leverage on the provision of complementary services that consume less physical space and are easy to implement. The concerns by mall managers that shoppers will spend more time on complementary service/facility rather than patronizing the shops have also been nullified by the findings from this survey. The majority of shoppers indicate that they have the intention to shop after spending time on the complementary service/facility.