The shopping mall phenomenon is sweeping across India, as changes in consumersí situations are reflected in changes to the retail structure and retail system. Malls are big business and boast many attractions for consumers. As a consequence, many developers and retailers are looking at malls as a key part of their retail space portfolio, and there has been considerable mall expansion in the country. The rapid growth of this retail format holds benefits for developers, retailers and consumers, but also has some potential drawbacks, particularly once the rapid growth phase matures. Perhaps it is worthwhile to look elsewhere to consider the possible long-term pitfalls and trends for this retail format.

When one thinks of shopping centres or malls, one traditionally turns to the United States of America. The country is littered with shopping centres of all shapes and sizes. Before Wal-Mart became retail enemy number one, malls were believed to be the most damaging forces in the decline of small retailers and downtowns. However, the seeds of the current problems and malaise confronting many North American shopping malls and some retailers were probably inherent in the form of development. Once the most successful retail development space, standard and generic malls and shopping centres are now under huge stress and the format needs to be re-invented.

This decline in shopping centres does not affect all malls and can be overstated, but there is no doubt that many malls are in trouble. Many malls and their core retailers have not done well in recent years. Why is this, and what can we learn from it?



There are a number of problems that we might consider:
Uniformity: Many of the shopping malls contain the same retail tenants in the same locational relationships. They look and feel the same and present a uniform and bland appearance to the consumer. Whilst there are benefits to standardisation, over-uniformity may tend to dull consumersí desires. Maybe there are too many standard or generic malls where developers and retailers have not really thought about the local market and have adopted a ëcookie-cutterí approach.

Scale: Over time, the size of many of the malls has increased such that they may have become too large in many consumersí eyes. Scale was for a while a key positive differentiator, but consumers simply do not shop the entire retail mall space. With pressures on consumersí time, shopping in a mall becomes more of a luxury, particularly if you already have a good idea of what product you need to buy. Adding yet another departmental store anchor does not necessarily add value to the mall, but can add complication and confusion for the consumer.

Architecture: With some exceptions, mall architecture is pretty bland and anonymous. Many malls are inwardfacing and internalise their retailers, forcing consumers to either guess what is inside or else to often try to read out-of-date signage. Many malls are simply unattractive spaces, with regularity the key defining character, rather than the retailing. Access to stores is often only via the mall space, which adds to the time burden for consumers and makes for an unattractive and inaccessible exterior in many cases.

Inconvenience: When malls are difficult to navigate as a result of scale and/or design issues, and hold few surprises, interesting features or retailers, consumers begin to question their value. If malls and the retailers in them are difficult to access, then they seem inconvenient and other formats take on greater consumer relevance. Newer retail formats also begin to challenge malls by focusing on being more accessible and convenient.

Competition: The development of aggressive ëbig boxí and category-killer retailers has had a major effect on malls, particularly through the effects on anchor tenants such as department stores. Traditional malls have been anchored by a number of department stores, but as many of these failed and as consolidation amongst the department store chains took place, there has been less demand for such retail space. In turn, new retail formats, including modern strip and power centres and new outof- town ëtown centresí have provided something different and are perhaps more accessible to many consumers. At such centres, access is easier, consumers can see where the store is and thus save time on a buying trip. This is critical for many consumers, and hence many retailers, including some previously mall-centric department stores, have developed formats to fit these new, more accessible, spaces.

There are, of course, some very good and very successful malls in the US and elsewhere. These have tended to avoid the problems and pitfalls above and have carved out positions for themselves that offer something different and distinct in the consumersí minds, becoming places that consumers want to go to and are able to access in a reasonable fashion. They encourage both shopping and buying. When malls become commonplace and purely functional, they can be picked off by other formats, types and retailers. While looking around for the best in malls, we come across a number of characteristics:

Appropriate scale: There is a place for the super-regional mall, but there cannot be too many of them. Scale can be an attractor for consumers, but the constant endeavour to be the biggest is somewhat curious. An effort to be the best mall would be more understandable. Malls therefore should take account of the likely market and other competition and build scale appropriately. If scale is a key factor in the mall then access and information of the highest standard needs to be provided to the consumer.

Quality standards: Managing a mall is not simply about facilities management, but about service quality in the widest sense. For consumers, this will include access to the mall and the mall environment itself, as well as the tenant mix. Managing such large and complicated enterprises with a large consumer flow-through is a difficult and specialist task. Without the appropriate expertise, it is all too easy for malls to ëgo offí and not maintain standards throughout. It is also critical that enough money is put aside and spent on maintaining the facilities and for refurbishment at key times.


Functionality: Consumers need to be able to shop at the mall. To do this they need to be able to understand what is on offer and where it is located. The tenants need to be attractive and the layout needs to enable consumers to find their way around the mall and/or directly to the retailers that they have come to visit. There is a danger that too much emphasis on functionality leads to overstandardisation and this needs to be guarded against, but if a mall is difficult to access and then to shop, problems are inevitable.

Enjoyability: Malls are not just spaces for functional shopping. If they are working correctly, they become places where consumers spend time and where they engage with other retailers and service activities such as food courts, cinemas, etc. If malls become functional places alone, then they run the risk of being outdone by other, less costly, functional retail forms. It is both the mix of tenants in a shopping mall and the sense of enjoyment and ëleisureí shopping that makes a good mall work. If shopping malls are not enjoyable, why should consumers visit them? Shopping centre managers have therefore to search for ways to add value to the mall and to provide this sense of entertainment or fun, whether through the retail offers provided or through other focused activities, such as shows, music, events and so on.

Differentiation: Many malls in many countries look and feel the same. In many cases, the retailers are the same as well, as consolidation and internationalisation take brands across the world. But the most successful malls seem to offer something different. The source of their differentiation will vary, but the key is offering something that excites the consumer and marks the mall out as different and special. In some cases, the differentiation may come from specialisation (for example, malls based around fashion, design, a particular product category, antiques and so on) whereas in others it comes from the retail mix itself, the quality of the centre, the events put on or even the size and shape of the mall.

India is not alone in experiencing a rapid development of shopping malls and mall ëcultureí. Elsewhere in the Middle East and Asia, many malls have and are being developed. Some are spectacular retail spaces with clear management focus on the target consumers. Others however appear to be simply ëriding the trendí. When malls become commonplace, a shakeout is inevitable. Consumer benchmarks will move higher and their demands and expectations will increase. Mall developers and retailers need to make sure that they are aware of these changing requirements and have plans in place to continue to attract consumers in this more competitive environment.

Many malls are successful and will continue to be so. They focus on the consumer, both in terms of their needs and their changing patterns of behaviour, and adapt the mall focus, environment, tenants and services accordingly. Good malls demand good management, both at the mall level and at the level of the individual retailers. The best malls are a great mix of good design, strong retail and services offered and excellent consumer-focused management. These are the one most likely to succeed in the long term. 

The author is Professor of Retail Studies at the Institute for Retail Studies at the University of Stirling, Scotland, UK.