With technology becoming increasingly prevalent in the modern world, more and more consumers are shifting towards online shopping. Through online shopping, customers can choose from a larger selection of lower priced items, while avoiding not only the hassle of leaving their home, but also the cost of gasoline. If this trend continues to develop, what is the future of malls and shopping centers?
Canadian retail sales have already dropped for the first time in seven months and eMarketer predicts that online sales will increase to $43.95-billion by 2018. Digital alternatives such as Amazon.com Inc. are making it harder for malls to attract customers and even the online versions of companies, like Best Buy, are dominating through e-commerce sales.
In order to keep shoppers coming, malls must reinvent themselves to both compete and coexist with online shopping. In my opinion, malls must focus more on the overall shopping experience instead of trying to compete with online retailers in terms of price and convenience. Through offering entertainment, digital attractions, and a safe location for families to shop, relax, and socialize, customers will visit shopping centers not to simply purchase an item, but to gain a positive experience. Providing more venues for movies, classes, and dining, will give customers a reason to leave their home to visit a mall. In addition, I recommend that stores at shopping malls use their space as a facility to pick up e-commerce orders. Ultimately, as technology evolves, ecommerce sales will continue to expand. Instead of competing directly with online shopping, malls must focus on differentiation and offer consumers a complete shopping experience.
Works Cited
“Online Shopping India – Shop Online for Books, Mobile Phones, Digital Cameras, Watches & More at – Tripodisha.com.” tripodisha.com. N.p., n.d. Web. 25 Sept. 2014.
Strauss, Marina. “Online shopping forces malls to evolve to keep customers coming back.” The Globe and Mail. N.p., 24 Sept. 2014. Web. 25 Sept. 2014.