MALL MANAGEMENT

MALL MANAGEMENT

• Shopping malls are an emerging trend in the global arena. The first thing that comes

in our mind about the shopping malls is that it is a big enclosed building housing a

variety of shops or products.

• Malls• Many retail stores operating at one place form

a mall. A mall would consist of several retail outlets each selling their own merchandise but at a common platform.

• Indian retail market:

• Retailing

• Retailing refers to a process where the retailer sells the goods directly to the end-user for his own consumption in small quantities.

• According to historical evidences shopping malls came into existence in the middle ages, though it was not called so. The concept of

departmental stores came up in the 19th century with the Industrial Revolution.

• Consumers wanted a better shopping experience and this demand gave rise to the

emergence of shopping malls in India.

• Originally the first of the shopping malls was opened in Paris. Then the trend followed

in the other metros over the world, and there was a spree of shopping malls coming up

at various places. In this age of mass production and mass consumption, the concepts of shopping malls is most modern method of attracting consumers.

• The concept of shopping

• In India, the emergence of shopping malls has mostly altered the lifestyle of the consumers. With the

• growth in income,• changing attitudes, and• also the demographic patterns favor the

emergence of shopping malls.

• WHAT ARE THE FACTORS THAT IS MAKING SHOPPING MALL HUGELY SUCCESSFUL ?

• 1. what according to them are the factors which influence their behavior ,while going for shopping?

• 2. When asked what are the things they liked about shopping malls?

• 3. When asked, Where do they do their regular monthly shopping?

• 4. When asked whether they are aware of the condition of the small retailer due to these shopping malls?

• 5. When people from the young age group were asked where they prefer shopping and why?

• Define customer service• Measure customer expectations• Measure customer perceptions• Identify gaps between expectations and

perceptions• SWOT analysis of retail

• challenges to the Indian retail market:

• lack of quality locations• shortage of trained staff• rising rental values• mall management• The first three concerns can be classified as

external factors, whereas mall management is internal.External factors are common to all players in the Indian retail industry, whereas mall management is specific to individual malls.

• What is Mall Management?

• Globally, mall management broadly includes:• positioning a mall• zoning – formulating the right tenant mix and its placement in a mall• promotions and marketing• facility management – infrastructure, traffic and• ambience management• finance management

Types of Shopping Malls

• As a general rule, the main determinants in classifying a center are its merchandise orientation (types of goods/services sold) and its size.

• BASIC CONFIGURATIONS• Mall: Malls typically are enclosed, with a climate-

controlled walkway between two facing strips of stores. • Strip center: A strip center is an attached row of stores

or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores. A strip center may be configured in a straight line, or have an "L" or "U" shape

SHOPPING CENTER TYPES

• Neighborhood Center: This center is designed to provide convenience shopping for the day-to-day needs of consumers in the immediate neighborhood. A neighborhood center is

usually configured as a straight-line strip with no enclosed walkway or mall area, although a canopy may connect the storefronts.

Community Center: A community center typically offers a wider range of apparel and other soft goods than the

neighborhood center does. Among the more common anchors are supermarkets,

super drugstores, and discount department stores. Community center tenants sometimes contain off-price retailers selling such items as apparel, home improvement/furnishings, toys, electronics or sporting goods. The center is usually configured as a strip, in a straight line, or “L” or “U” shape.

• Regional Center: This center type provides general merchandise (a large percentage of which is apparel) and services in full depth and variety. Its main attractions are its anchors: traditional, mass merchant, or discount department stores or fashion specialty stores. A typical regional center is usually enclosed with an inward orientation of the stores connected by a common walkway and

parking surrounds the outside perimeter.

• Superregional Center: Similar to a regional center, but because of its largersize, a superregional center has more anchors, a deeper selection of merchandise, and draws from a larger population base. As with regional centers, the typical configuration is as an enclosed mall, frequently with multilevels.

• Fashion/Specialty Center: A center composed mainly of upscale apparel shops, boutiques and craft shops carrying selected fashion or unique merchandise of high quality and price. These centers need not be anchored, although sometimes restaurants or entertainment can provide the draw of anchors.

• The physical design of the center is very sophisticated, emphasizing a rich decor and high quality landscaping. These centers usually are found in trade areas having high income levels.

• Power Center: A center dominated by several large anchors, including discount department stores, off-price stores, or "category killers," i.e.,

• stores that offer tremendous selection in a particular merchandise category at low prices.

• Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. The biggest appeal of these centers is to tourists; they can be anchored by restaurants and entertainment facilities.

• Outlet Center: Usually located in rural or occasionally in tourist locations, outlet centers consist mostly of manufacturers' outlet stores selling their own brands at a discount. These centers are typically not anchored. A strip configuration is most common, although some are enclosed malls, and others can be arranged in a "village" cluster.

• Indian Scenario for Mall Management

• The partial foreign direct investment (FDI)relaxation in 2006 allowed 51% ownership in joint ventures by single-brand companies in the retail market. This triggered high international singlebrand retailer interest in the Indian retail market.

• Additionally, large Indian conglomerates such as Reliance Industries and Aditya Birla Group are commencing their foray into retailing across the country. This prompts the Indian retail industry to undoubtedly move on a high growth curve. However,at this juncture, retailing is still faced with one major challenge: systematic mall management.

Earlier in the decade, mall developers were moreinclined towards exiting the project early by sellingretail mall units to investors at the pre-completionand post-completion stages and booked profits. Asthe ownership of individual retail spaces were withdifferent entities, there was no central authoritymanaging the malls.

• Issues Related to Mall Management in the Indian Retail Market

Lack of Feasibility/Market Research Prior to theDevelopment of a Mall – In the past, some mallswere constructed without carrying out a rigorousdue diligence exercise on their feasibility. Themarket scene is gradually changing wherein moreand more developers are approaching propertyconsultancy firms to conduct feasibility andpositioning studies for their projects.

Zoning – Landlords/developers tend to lease outretail space on a first-come-first-served basis. This creates a sub-optimal tenant mix like a food

and beverage outlet next to a designer apparel shop instead of an accessories or a footwear shop.

Design Issues – At present, most of the popularmalls have long queues and congestion outsidetheir main entry points during weekends andfestive seasons. Having only one entry and exitpoints also leads to overcrowding. Similarly, thevisibility of retail units from all vantage points ispoor in many malls.

Few Promotional Activities – There are very fewpromotional activities organised in the majorityof malls at present. Developers perceive thatThese events only help increase foot traffic and

not revenues.

Facility Management – Good infrastructure/facility management of common areas becomes a problem in malls where retail outlets are sold as strata title.

Parking – Many malls in India do not haveadequate parking. Since most malls are being

built in the city, developers typically provide basement parking facilities. However, these parking spaces are inefficient due to low ceiling heights, bad lighting and single entry and exit points.