The recipe for a suc­cess­ful mall

Shopping Center News - - CONTENTS - By Shop­ping Cen­tre News Bureau

To suc­cess­fully man­age a re­tail shop­ping cen­ter, one re­quires a good de­gree of knowl­edge along with seam­less sys­tems.

To suc­cess­fully man­age a re­tail shop­ping cen­ter, one re­quires a good de­gree of knowl­edge along with seam­less sys­tems. Knowl­edge comes with time and sys­tems come with ex­pe­ri­ence; as­tute man­age­ment can do a lot for a re­tail prop­erty over a pe­riod of time. Talk­ing to Shop­ping Cen­tre News, Ra­jeev Ran­jan, Mall

Man­age­ment Ex­pert, talks about the art and sci­ence of run­ning a suc­cess­ful mall. Mall man­age­ment and its im­por­tance in over­all re­tail es­tab­lish­ment

Mall man­age­ment is de­fined as over­all op­er­a­tion and main­te­nance of the en­tire build­ing in­fra­struc­ture, in­clud­ing the ser­vices and util­i­ties, en­sur­ing the wise use of re­sources. Mall man­age­ment in­cludes Op­er­a­tion & Main­te­nance (HVAC, Fire Fight­ing, Power Dis­tri­bu­tion, Pe­ri­odic PPM, MIS, Billing, Col­lec­tions), Mall Mar­ket­ing (Boost­ing Foot­falls, Events, Ac­ti­va­tion, Ex­hi­bi­tion, Ad­ver­tis­ing ATL, BTL, TTL), Leas­ing & Fit-outs (Zon­ing, Ten­ant Mix, Fran­chises), Se­cu­rity (Man­ag­ing Ar­eas, CCTV Mon­i­tor­ing, In-Out Records, Con­trol Sys­tem, BMS), House­keep­ing (Rou­tine Clean­ing, Fa­cade Clean­ing, Pest Con­trol, Am­bi­ence).

For a re­tail es­tab­lish­ment, there are var­i­ous points to be kept in mind, such as reg­u­la­tory bod­ies, sup­ply chain, in­te­grated man­age­ment, mar­ket com­pe­ti­tion, mar­gins, train­ings and many other at­tributes. While mall man­age­ment pro­vides end-to-end so­lu­tions to the above-men­tioned at­tributes, leas­ing and mar­ket­ing teams will align all the lo­cal li­aisons and help the op­er­a­tion to run smoothly.

The Im­por­tance of Ten­ant Mix

Ten­ant mix refers to the com­bi­na­tion of re­tail out­lets oc­cu­py­ing the space in a shop­ping cen­tre de­signed to pro­duce cu­mu­la­tive prof­its for oc­cu­pants and in­vestors. Ten­ant mix is one of the most im­por­tant fac­tors to im­pact the suc­cess of a shop­ping cen­tre; first im­pres­sion on cus­tomers is crit­i­cal and that can be achieved by an in­tel­li­gent mix of re­tail out­lets. Va­can­cies are typ­i­cally Pro­cure­ment of ser­vices / providers; Risk As­sess­ment and se­cu­rity plan­ning;

Man­age ten­ancy Fit-out process; Over­see­ing com­mis­sion­ing of sys­tems; Prepa­ra­tion of ten­ant cri­te­ria doc­u­ment; Set up sys­tems & doc­u­men­ta­tion; Mar­ket­ing (for re­tail prop­er­ties); Re­source Mo­bi­liza­tion & Man­age­ment; Com­pli­ance; Fi­nan­cial pro­cesses; De­tailed site cleanup & prepa­ra­tion; Dry run up of all ser­vices; Stores set-up; Busi­ness plan; Lease man­age­ment. Post-open­ing phase: Prop­erty man­age­ment; Fi­nance and lease ad­min­is­tra­tion; train­ing; Man­ag­ing con­tract and ven­dor ser­vices; Oc­cu­pants’ man­age­ment; Com­pli­ance man­age­ment; Op­er­a­tions and main­te­nance; Ser­vice man­age­ment; Ad­min­is­tra­tion ser­vices; Mar­ket­ing (for re­tail prop­er­ties)

Role of Re­tail­ers in Mall Man­age­ment

There al­ways needs to be a strong bond be­tween the re­tailer and mall man­age­ment with­out which the smooth func­tion­ing of the mall is not pos­si­ble. It is through re­tail­ers that a mall gen­er­ates the pull and ex­pe­ri­ence to draw cus­tomer traf­fic, which is an im­por­tant fac­tor in de­cid­ing the com­mer­cial fu­ture of the de­vel­op­ment. For a re­tailer, there are the con­sid­er­a­tions of car­pet area or su­per built-up area, as well as the Gross Leasable Area (GLA). The sup­port and co-or­di­na­tion of all ten­ants plays a vi­tal role in the suc­cess of the mall and its in­vestors. There is a set of stan­dard pro­ce­dures to which both the e-tail­ers and man­age­ment are bound, and which are de­signed to pro­vide the best re­sults in cre­at­ing a com­mer­cially vi­able shop­ping cen­tre.

Zon­ing of a Mall

Zon­ing refers to the di­vi­sion of mall space into var­i­ous ar­eas for the place­ment of var­i­ous re­tail­ers. A shop­ping cen­tre is de­pen­dent on the suc­cess of its ten­ants, which trans­lates to the fi­nan­cial fea­si­bil­ity of the ten­ant in the mall. As per the rou­tine ten­dency, cre­at­ing the right ten­ant mix not only helps in a_ rac­ing and re­tain­ing shop­pers by of­fer­ing them mul­ti­ple choices and lifestyle ex­pe­ri­ences, but also fa­cil­i­tates the smooth move­ment of shop­pers within the mall, avoid­ing un­nec­es­sary clus­ters and bot­tle­necks. In the cur­rent sce­nario, as the re­tail sec­tor is con­stantly keep­ing an eye on the younger gen­er­a­tion, zon­ing is of­ten planned in a zig zag man­ner so that the cus­tomer can have a look around the com­plete mall and hope­fully not miss any of the choices and stores avail­able.

A zon­ing ex­er­cise, if done prop­erly, helps in build­ing a sep­a­rate im­age in the minds of the vis­i­tors. This also helps in­flu­ence shop­pers’ mall pref­er­ences and fre­quency of vis­its, which is crit­i­cal con­sid­er­ing the ro­bust up­com­ing sup­ply of shop­ping cen­tres. Tar­get­ing both pre­planned shop­pers and im­pulse vis­i­tors is crit­i­cal if the shop­ping cen­tre is to achieve higher con­ver­sions and thereby, higher sales for its ten­ants.

Typ­i­cally, zon­ing is a mall space al­lo­ca­tion ex­er­cise un­der which mall de­vel­op­ers ba­si­cally for­mu­late an ap­pro­pri­ate ten­ant mix to at­tract both types of cus­tomers, es­pe­cially the im­pulse buy­ers.

Ad­van­tages of Zon­ing

1. Al­lows the smooth move­ment of shop­pers in the mall, avoid­ing clus­ters and bot­tle­necks.

2. Cre­ates a dis­tinct im­age in the minds of the cus­tomers.

3. As­sists in for­mu­lat­ing the right ten­ant mix and the place­ment of these ten­ants within the mall.

4. Helps in the se­lec­tion of right an­chor ten­ants.

5. Helps re­tail­ers at­tract both types of con­sumers, es­pe­cially the im­pulse buy­ers.

Zon­ing refers to the di­vi­sion of mall space into var­i­ous ar­eas for the place­ment of var­i­ous re­tail­ers. A shop­ping cen­tre is de­pen­dent on the suc­cess of its ten­ants, which trans­lates to the Ćnan­cial fea­si­bil­ity of the ten­ant in the mall.

Lat­est Trends in Zon­ing

There are cur­rently mul­ti­ple trends in shop­ping cen­tre zon­ing. Pri­mar­ily, zon­ing is done so as to place highly rec­og­nized brands at the ground floor (near main en­trances) and the an­chors at strate­gic lo­ca­tions to which cus­tomer can go with­out ig­nor­ing the vanilla brands. ‘Dog bone’ zon­ing is cur­rently the most vis­i­ble ten­ant place­ment strat­egy.

Since 2013, the con­cept has been im­ple­mented in most shop­ping cen­tres across In­dia, with food courts and cine­mas be­ing typ­i­cally placed at the higher floors for ef­fec­tive utiliza­tion of foot traf­fic. A rel­a­tively re­cent zon­ing prac­tice in­volves hous­ing lo­cal brands in small en­closed ar­eas or spe­cific des­ig­nated ar­eas to at­tract cus­tomers based on their loy­alty. This con­cept of zon­ing is very pop­u­lar in tier II and tier III shop­ping cen­tres. To make the mall a vi­brant, seam­less space, it is es­sen­tial that all stores have a good vis­i­bil­ity of the atrium. The con­cept of clus­ter mar­ket should never be ig­nored while mak­ing the zon­ing plan of a mall.

What would you say about Re­tail in Cen­tral In­dia

Re­tail­ing in In­dia is one of the pil­lars of its econ­omy and ac­counts for about 10 per­cent of its GDP. In­dia is one of the fastest grow­ing re­tail mar­kets in the world, with over 1.2 bil­lion peo­ple. As of 2003, In­dia’s re­tail­ing in­dus­try was es­sen­tially owner manned small shops. In 2010, larger for­mat con­ve­nience stores and su­per­mar­kets ac­counted for about 4 per­cent of the in­dus­try, and these were present only in large ur­ban cen­ters. In­dia’s re­tail and lo­gis­tics in­dus­try em­ploys about 40 mil­lion In­di­ans.

Or­ga­nized re­tail­ing, in In­dia, refers to trad­ing ac­tiv­i­ties un­der­taken by li­censed re­tail­ers, that is, those who are reg­is­tered as tax pay­ers. These in­clude the pub­licly traded su­per­mar­kets, cor­po­rate­backed hy­per­mar­kets and re­tail chains, and also the pri­vately owned large re­tail busi­nesses.

Un­or­ga­nized re­tail­ing, on the other hand, refers to the tra­di­tional for­mats of low-cost re­tail­ing, for ex­am­ple, the lo­cal cor­ner shops, owner manned gen­eral stores, Tem­po­rary road side kiosks con­ve­nience stores, hand cart and pave­ment ven­dors, etc.

As far as the growth of re­tail in Cen­tral In­dia is con­cerned; look­ing to the po­ten­tial of the mar­ket there are lot many ma­jor brands en­tered into the mar­ket & those who are not made it till date are still search­ing for the open­ings to get into this fast grow­ing mar­ket & to eval­u­ate their brand po­ten­tial, this in turn al­lows the cus­tomers to have large va­ri­eties in terms of shop­ping op­tions are con­cerned.

How would you rate the Fa­cil­ity Man­age­ment Com­pa­nies in this con­text?

As I have men­tioned ear­lier the In­dian mar­ket to­day is ex­pend­ing at such a fast speed that not only al­lows the brands or prod­ucts to get into the mar­ket but also al­lows open­ings to var­i­ous ver­ti­cals in it. Man­ag­ing fa­cil­ity is also one of the ma­jor ver­ti­cals that came out of it. To­day there are lot of fa­cil­ity man­age­ment com­pa­nies op­er­at­ing at dif­fer­ent mod­ules, out of which I found Pre­em­i­nent Man­age­ment & Con­sul­tancy one of those com­pa­nies who is hav­ing a team of young pro­fes­sion­als with a very clear aim, that they are, “Formed to Man­age” which they fol­low very strictly re­sult­ing in main­tain­ing ex­cel­lent client re­la­tions with on time per­for­mances, which is the need of the hour in this mod­ern com­pet­i­tive world.

As of 2003, In­dia’s re­tail­ing in­dus­try was es­sen­tially owner manned small shops. In 2010, larger for­mat con­ve­nience stores and su­per­mar­kets ac­counted for about 4 per­cent of the in­dus­try, and these were present only in large ur­ban cen­ters. In­dia’s re­tail and lo­gis­tics in­dus­try em­ploys about 40 mil­lion In­di­ans.

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