A diverse tenant mix is key to shopping center success

Recent industry reports from Chain Store Age suggest the keys to running a successful shopping center include embracing new customer needs, repurposing unused retail space and appealing to a wide range of demographics. This is especially relevant in local markets, where regional shopping centers and national department stores have historically struggled to stay afloat.

Though changing times and growth in online shopping still present a challenge for Pittsburgh retail giants, some local brick-and-mortar centers have worked to determine the appropriate mix of local, regional and national stores and restaurants to keep shoppers engaged.

Here are three reasons why local shopping centers should consider sourcing a diverse tenant mix as part of an overall market strategy:

Demographics matter: Unlike individual retailers, shopping centers must appeal to a wide range of demographics with their store offerings. For instance, although a millennial crowd might be satisfied with trendy eateries and local shops, baby boomers might prefer chain favorites and bigbox stores.

More options mean more profits: Providing customers with more shopping options extends their total shopping time, leading to higher sales and a more profitable center overall. Studies show that consumers are more likely to splurge on unintended purchases the longer they shop.

Your community is important: Shoppers appreciate seeing local retailers as part of the mix because it offers a community feel that can’t be duplicated elsewhere. The “shop local” trend has also become more popular over the years. To successfully execute this community-focused atmosphere, shopping centers should source wellknown local shops or franchises and entice new tenant inquiries by offering a reduced rate for small business owners.