Get mix right to enhance retail therapy
Posted on Tuesday 24th January 2012
Over the years I have been both a retailer and a shopping centre developer, which has enabled me to see how a deal stacks up on both sides. Ideally, both the retailer and the landlord should be in a win-win position, but both should remember that in the current challenging retail environment, it's all about the customer.
I follow four commandments when dealing with retail space:
Access: It should be obvious, easy and inexpensive for pedestrians and cars to gain access to the shopping centre or store. Anything that makes it difficult for cars and consumers to enter should be improved, otherwise customer numbers will drop. The idea of charging for parking in shopping centres is a difficult balancing act. Parking should be free for the first three hours in suburban retail centres, and cheaper is better in the central business district. It's OK to stop the "park and riders" but not at the expense of encouraging shoppers. The other big no no's are steps in front of a tenancy, garden beds and cattle-style access ramps.
Exposure: The truth is that branding and signage is king. Retail architects must remember the store owner will be there long after they have moved on with their fancy ideas. The shopping centre or store signs should be well exposed to all passing cars and pedestrians. Potential customers should be able to identify the retail offer at a glance. Trees and shrubs should provide shade or ground cover, but not hide the shops.
Tenancy mix: Developers need to group together compatible traders so they can trade off each other's foot traffic and also make it easier for shoppers to compare products and services.
I like the Hong Kong idea of having all competitors next to each other like you might see on the hardware streets. Customer-friendly planning could include locating a bakery next to newsagent as they are both early morning traders.
Ant trail: Every centre develops its own ant trail where customers naturally walk in and move around. This ant trail has to be designed to eliminate the dead spots where customers don't naturally walk.
Online shopping has created a radically new ant trail, especially when customers have done their research via the internet and visit a centre with a definite plan of what they're looking to buy and from where. Physical retailers and centre owners need to respond to this challenge more creatively.
They may sound like basic ideas, but getting back to sound fundamentals is the best way to survive in the current economic environment.
