Teslas, iPhones provide limited boost to malls chasing shoppers | Fin24
 
  • Money Flows

    About 3 000 super-rich have left SA in the past 10 years, according to a new report.

  • Nelson Mandela

    Madiba would have been alarmed at the polarisation and hate speech in SA, says Derek Hanekom.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Teslas, iPhones provide limited boost to malls chasing shoppers

Apr 15 2019 11:38
Lily Katz, Bloomberg

Mall owners have sung the praises of “experiential retail,” touting it as the savior of a sector battered by store closures and the shift to online shopping. It turns out the buzz may be a bit overblown.

A study by location-data firm Thasos Group shows that malls with a Tesla showroom, Apple store, Eataly or Starbucks Roastery - retailers that offer shoppers a more hands-on experience -- don’t have much of an edge over centers without those shops. In fact, these properties trailed their more-traditional peers in foot traffic up until the end of last year.

Thasos used mobile-phone location data to assess foot traffic at 144 “experiential” malls. In October 2017, visitation at these centers was down 11% from the prior year, compared with an 8.1% decline at other malls. The trend started to reverse this past September, handing the advantage to landlords who’ve invested in experiences, though the edge isn’t substantial.

Landlords are spending billions to make over their properties in hopes of drawing shoppers at a time when everything can be bought online. They’ve added grocery stores, climbing walls and even offices for technology giants like Google. The biggest US mall owner, Simon Property Group last year announced plans to spend $4 billion to create “new lifestyle experiences” at its shopping centers.

Mall owners are spending a lot to win over the specific tenants identified in the study because they believe those retailers will drive more traffic, said John Collins, chief product officer at Thasos.

tesla  |  apple  |  consumer
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote

Loading...