Every shopping centre needs a good marketing plan. The plan is something that encourages community interest, customers, and sales for tenants. Unfortunately, many smaller shopping centres and those that are privately owned can tend to be less active when it comes to local area marketing and promotional spending. Over time that can reduce the profile and relevance of the property in the local area, and retail sales or market position can decline.
Let’s face it, the shopping centre industry and retail properties all compete for customer attraction in one way or another. If there are many retail properties in your town or city, then competition between properties will be an issue.
Ensure that your retail property is competitive, attractive, and offering a vibrant tenant mix. Retail marketing costs money, but it does form an essential part of shopping centre success.
Retail Facts to Know
Consider these facts:
- Retail rents are underpinned by sales and customer interest
- All tenants in a shopping centre should be involved in marketing their business and the overall property that they occupy
- The retail industry is changing dramatically as sales move online in many merchandise segments
- Successful shopping centres are now either destination based, entertainment integrated, or convenience related.
An excellent shopping centre will be comprehensively marketed to the customers and the local demographic. What is that customer profile? Consider your shopping centres now and the categories they fall into, be that regional, sub-regional, local, or neighbourhood-based. How do they compete?
Is your typical customer coming from the residential community, local businesses, or tourism? Some shopping centres are a mixture of all customer bases, so the marketing campaign for the property each year must be carefully designed and supported.
The customer base drives the marketing campaign for the retail property and the location. The money for marketing must be carefully controlled to the customer profiles, the shopping seasons and the activities within the property. There are many variables to balance.
Things to Review in a Shopping Centre
It is wise to review the results from shopping centre marketing campaigns each month and indeed each quarter. In that way you can see what is working and what might be struggling with:
- Merchandise groups
- Property locations
- Precincts in the common areas or malls
- Tenant retention
- Tenant attraction
So, there are things that can be done here to support the success of a shopping centre over time.
Retail shopping centre leasing and management are exciting parts of the property industry, and they do take a good deal of respect and understanding. If this part of the industry is for you, then build your skills and specialize in every way possible. The rewards and transactions will be there over time.