The Current State of Malls
According to research data from Cowen and Company’s Retail Disruption report, the demise of shopping mall traffic has multiple contributing factors. From the meteoric rise of e-commerce and m-commerce to changing millennial shopping habits and the over-saturation of shopping mall properties, the malls of yesteryear have entered “survival of the fittest” mode. The supply and demand problem has hit shopping malls hard, with not enough demand from consumers and too much supply of space and products. With consumers increasingly turning to online shopping and express shipping, merchants are left questioning the wisdom of investing in expensive shopping mall leases when warehouse space might be a wiser investment decision. With decreasing foot traffic inside shopping malls, carrying large amounts of inventory and paying for expensive retail space doesn’t make sense for a growing number of retailers. Where shopping malls used to be a place to go to relax while making your purchases from one central location, today’s shopping malls have become a place mainly for fun and hangouts. Shopping rarely happens now, which is why malls are increasingly empty and larger department stores are closing down.
The Vision for the Future
But shopping malls aren’t doomed; their future is brimming with opportunity. One of the most exciting advancements in the future of retail will be the transformation of shopping malls into galleries. The shopping malls of the future will act more like areas where shoppers are able to go in and try on apparel and experience products. If they wish to make a purchase, they will be able to have their item(s) of choice delivered to their home the same day or next via express shipping. Instead of only being able to choose from current stock on hand, the shopping mall patrons of the future will be able to have full access to a retailer’s entire inventory.
This re-imagining of shopping malls is our vision for the future. With access to our Global Workforce, whenever a store makes a sale, the retailer will be able to have the product delivered directly to the shopper’s home by the time the customer gets home from the mall. This combining of e-commerce with the physical shopping experience will be a win-win for both retailers and consumers.
The Serve Benefits for Retail
Retailers will no longer need to pay for expensive shopping mall leases with vast storage spaces and throngs of staff members. This waste of real estate is not cost effective and reduces the profits a retailer can generate. When a retailer can simply offer product samples for consumers to experience, there is no need to showcase every product in every size, color, or model. Mall owners will have the power to make their facilities more about entertainment, instead of relying on store sales. Retailers will be able to build stronger relationships with their customers by offering on-demand delivery via Serve’s Global Workforce, putting consumer satisfaction front-and-center of their efforts to grow their businesses.
If your business wants to benefit from the changing retail landscape, we invite you to check out the Serve Platform and our white paper to discover how our Global Workforce can accelerate growth for your company. The future of retail is rapidly changing; Serve is thrilled to be a part of the evolving retail industry.