Shopping Center News - - CONTENTS -

With the on­set of fes­ti­val sea­son, malls gear up to cel­e­brate the ex­trav­a­ganza by an­nounc­ing lu­cra­tive of­fers, shop­ping deals and ex­cit­ing events across the coun­try

Dy­namism, Place Mak­ing and Value Added

Ser­vices: Today, the suc­cess of a shop­ping mall is no longer de­pen­dent on the sales gen­er­ated but also on the over­all ex­pe­ri­ence it of­fers. Also, as the mar­ket is chang­ing quite dy­nam­i­cally, shop­ping mall de­vel­op­ers also need to churn their ten­ant mix fre­quently in or­der to im­bibe the new global en­trants and fash­ions. Malls have started au­dit­ing their ten­ant mix reg­u­larly so as to be rel­e­vant and also pro­vide the value added ser­vices to at­tract the con­sumers. Malls are fre­quently churn­ing their ten­ant mix to ac­com­mo­date mar­quee global brands such as Kate Spade, Muji, H&M, Mas­simo Dutti, Gap, Spring­field, Women Se­cret, Xiaomi-Mi Home etc. The fast fash­ion brands along with the F&B are now pre­ferred over the tra­di­tional de­part­ment stores for al­lo­cat­ing prime spa­ces in shop­ping malls.

In­creas­ing Im­por­tance of F&B and

En­ter­tain­ment: F&B and En­ter­tain­ment are the fore­run­ners of the chang­ing re­tail land­scape and will play a cru­cial role in fu­ture proof­ing re­tail spa­ces.

Mall De­vel­op­ers are in­creas­ingly re­al­is­ing the im­por­tance of in­cor­po­rat­ing F&B into their premises to drive foot traf­fic. The amount of space ded­i­cated to F&B cat­e­gory has in­creased from 5%-8% a few years back to 11%-18% now. The diver­sity of F&B of­fer has also ex­panded in last cou­ple of years. Ded­i­cated F&B hubs like Cy­ber Hub in Gu­ru­gram, Sangam Court­yard and Epi­cu­ria in Delhi are also gain­ing grounds in today’s re­tail real es­tate sce­nario.

If con­cep­tu­alised op­ti­mally and in­te­grated well in the shop­ping mall, F&B and En­ter­tain­ment has the abil­ity to drive shop­per traf­fic, in­crease dwell time, con­sumer spend and en­hance over­all sales growth.

In­ter­na­tion­ally there are some key for­mats emerg­ing which are likely to rev­o­lu­tion­ize the way F&B is seen by land­lord. In In­dia also the new for­mats would get pop­u­lar as we move along the evo­lu­tion curve.

The grow­ing trends of in­creas­ing im­por­tance of F&B and its im­pact on re­tail spa­ces are sum­marised be­low. In or­der to in­cor­po­rate the game chang­ing F&B con­cepts, the shop­ping mall de­vel­op­ers have to con­sider the food ser­vices leases and tenants dif­fer­ently from the tra­di­tional re­tailer cat­e­gories.

The share of shop­ping mall units ded­i­cated to food­ser­vice is go­ing to be higher in up­com­ing malls than in older malls, and it is ex­pected to in­crease sig­nif­i­cantly in com­ing years.

The sig­nif­i­cance and type of F&B space in a shop­ping mall varies promi­nently by mar­ket and re­gion, and is driven by macro fac­tors such as mar­ket ma­tu­rity, the po­si­tion on the “de­vel­op­ment curve” and cul­tural nu­ances.

The growth and pop­u­lar­ity of street food, up­scale fast-ca­sual and more di­verse ca­sual din­ing has trig­gered a marked “ca­su­al­iza­tion” of F&B.

F&B op­er­a­tors which of­fer healthy and or­ganic food are gain­ing pop­u­lar­ity.

Re­gional and lo­cal F&B op­er­a­tors are gain­ing fame and ex­pand­ing to other mar­kets.

QSRs are rein­vent­ing them­selves to sus­tain in the grow­ing com­pet­i­tive land­scape and are step­ping up to pro­vide su­perla­tive ex­pe­ri­ence to the con­sumers.

Shop­ping malls are in­cor­po­rat­ing dy­namism through use of pop-up-spa­ces and newer F&B con­cepts with live kitchen and per­for­mances. F&B op­er­a­tors are in­creas­ingly adopt­ing tech­nol­ogy to of­fer better ser­vices and in­crease op­er­a­tional ef­fi­cien­cies. De­spite huge op­por­tu­nity, the fu­ture for F&B needs care­ful con­sid­er­a­tion as evo­lu­tion and growth comes with chal­lenges and risks for food op­er­a­tors as well as mall de­vel­op­ers.

The F&B of­fer needs to in­te­grated and well com­pli­mented in the shop­ping mall oth­er­wise it would lead to re­duc­tion in dwell time and un­fit­ting over­all of­fer for the con­sumers.

So­phis­ti­cated ap­proach is re­quired to seg­ment the F&B op­er­a­tors on part of the mall de­vel­op­ers. Each for­mat of F&B has dis­tinct trad­ing pe­ri­ods, dwell time and trade area char­ac­ter­is­tics which needs to be zoned and man­aged dif­fer­ently.

Food halls can be a great way to freshen the F&B mix within larger, des­ti­na­tion cen­ters, of­ten as a re­place­ment for food courts. They pro­vide the op­por­tu­nity to ad­dress all restau­rant cat­e­gories, across all price points. now look­ing at ex­per­i­ment­ing more with a mixed-use for­mat, rather than stand­alone re­tail for­mats, al­low­ing for qual­ity re­tail on the lower floors and com­mer­cial spa­ces on the up­per floors. As there has been a cap­tive con­sumer base present in the busi­ness dis­tricts, the re­tailer are also mak­ing in­road into these com­plexes. The most com­mon re­tail for­mats in ORCs are the F&B seg­ments and bank­ing & fi­nan­cial ser­vices.

Iconic and Her­itage Prop­er­ties: As the qual­ity mall space has been lim­ited in In­dia, re­tail­ers have been cre­ative and re­spon­sive to seek spa­ces in her­itage prop­er­ties and re­cy­cled places like old mills and re­fur­bished places. With a bit of cre­ative think­ing, the re­tail­ers are open­ing stores in iconic lo­ca­tions thus re­cy­cling them for cre­at­ing cult and unique re­tail spa­ces.

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