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You can find the current article at its original source at https://www.theguardian.com/business/2017/dec/16/us-mall-operators-must-adapt-change-ecommerce-retail-space-use
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| Version 3 | Version 4 |
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| US mall operators must buy into e-retail and new use of space | US mall operators must buy into e-retail and new use of space |
| (13 days later) | |
| The death of the American shopping mall has been long predicted but, despite their many problems, malls remains a focus of retail shopping and social interaction for millions of Americans. | The death of the American shopping mall has been long predicted but, despite their many problems, malls remains a focus of retail shopping and social interaction for millions of Americans. |
| The process of reorganisation in a digital age, however, has been painful. It has been three years since a major new shopping mall opened in the US, leading some operators to speculate that the last one has already been built. | The process of reorganisation in a digital age, however, has been painful. It has been three years since a major new shopping mall opened in the US, leading some operators to speculate that the last one has already been built. |
| According to Bloomberg, more than 10% of US retail space, or nearly 1bn square feet, may need to be closed, converted to other uses, or renegotiated. Nearly 9,000 stores are estimated to close in 2017, a third more than during the crash of 2008. | According to Bloomberg, more than 10% of US retail space, or nearly 1bn square feet, may need to be closed, converted to other uses, or renegotiated. Nearly 9,000 stores are estimated to close in 2017, a third more than during the crash of 2008. |
| The rapid collapse of bricks-and-mortar retail has left mall owners and retail property owners on main street USA in a Darwinian struggle to think up new ways to fill retail space and keep consumers coming. | The rapid collapse of bricks-and-mortar retail has left mall owners and retail property owners on main street USA in a Darwinian struggle to think up new ways to fill retail space and keep consumers coming. |
| Malls are confronting erosion on two fronts: retailers are looking for better control of their brands, and to reduce their exposure to bricks-and-mortar retailing. More than 300 retailers have filed for bankruptcy so far this year, up 31% from last year. In addition, brands like Nike, Canada Goose and Michael Kors are fleeing mass-market department stores, typically the anchor tenants of major US malls. In October, Nike chief executive Mark Parker announced that out of Nike’s global universe of more than 30,000 retail partners, the company would now focus on just 40 “strategic wholesale partners”. | Malls are confronting erosion on two fronts: retailers are looking for better control of their brands, and to reduce their exposure to bricks-and-mortar retailing. More than 300 retailers have filed for bankruptcy so far this year, up 31% from last year. In addition, brands like Nike, Canada Goose and Michael Kors are fleeing mass-market department stores, typically the anchor tenants of major US malls. In October, Nike chief executive Mark Parker announced that out of Nike’s global universe of more than 30,000 retail partners, the company would now focus on just 40 “strategic wholesale partners”. |
| Mass-market retail spaces, explains the Business of Fashion, “have increasingly become like kryptonite. In a world constantly seeking what’s next, new or special, mass retail has become toxic in its overexposure.” | Mass-market retail spaces, explains the Business of Fashion, “have increasingly become like kryptonite. In a world constantly seeking what’s next, new or special, mass retail has become toxic in its overexposure.” |
| Mall owners have recognised that they had become too dependent on clothing. According to Louis Conforti, the chief executive of mall operator Washington Prime, more than 40% of merchants were selling junior fashion and accessories. | Mall owners have recognised that they had become too dependent on clothing. According to Louis Conforti, the chief executive of mall operator Washington Prime, more than 40% of merchants were selling junior fashion and accessories. |
| Unless four out of 10 of my customers are wearing a midriff T-shirt, this has been a reactive and lazy industry | Unless four out of 10 of my customers are wearing a midriff T-shirt, this has been a reactive and lazy industry |
| “Unless four out of 10 of my customers are wearing a midriff T-shirt, this has been a reactive and lazy industry,” Conforti told the Observer. | “Unless four out of 10 of my customers are wearing a midriff T-shirt, this has been a reactive and lazy industry,” Conforti told the Observer. |
| Mall operators, Conforti says, are now more aggressive in their effort to introduce more food and beverage outlets and more home furnishings and home goods retailers. The drive includes tie-ins and “real-time incentives”, including fashion shows or selling the wares from a local craft brewery, and tie-ins with e-commerce platforms. | Mall operators, Conforti says, are now more aggressive in their effort to introduce more food and beverage outlets and more home furnishings and home goods retailers. The drive includes tie-ins and “real-time incentives”, including fashion shows or selling the wares from a local craft brewery, and tie-ins with e-commerce platforms. |
| “We need to create common area installations that benefit existing tenants. We need a lot more eventing. The idea that common areas are relegated to kiosks is over. We could have club chairs [armchairs] and artisanal sandwiches, and it’ll be a different thing if you’re in Sacramento or in Kansas City.” | “We need to create common area installations that benefit existing tenants. We need a lot more eventing. The idea that common areas are relegated to kiosks is over. We could have club chairs [armchairs] and artisanal sandwiches, and it’ll be a different thing if you’re in Sacramento or in Kansas City.” |
| Another part of the drive is to partner with e-commerce, including Amazon. As the e-commerce giant begins developing its own line of physical stores, mall operators are optimistic that the two will ultimately combine, creating a class of “experiential merchants” using bricks-and-mortar and online assets to create a new, more personalised consumer experience. | Another part of the drive is to partner with e-commerce, including Amazon. As the e-commerce giant begins developing its own line of physical stores, mall operators are optimistic that the two will ultimately combine, creating a class of “experiential merchants” using bricks-and-mortar and online assets to create a new, more personalised consumer experience. |
| “Whoever doesn’t realise that there is a symbiotic relationship between e-commerce and physical space is moronic, and playing the ostrich does no good for anybody,” says Conforti. | “Whoever doesn’t realise that there is a symbiotic relationship between e-commerce and physical space is moronic, and playing the ostrich does no good for anybody,” says Conforti. |
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