Shopping malls are on the decline, rapidly losing ground to online shopping. And this problem is only set to accelerate. In fact, about 15% of U.S. malls will fail and be converted to a non-retail space within the next 10 years, according to Green Street Advisors, a real estate and REIT analytics firm.
Shop units, where familiar shop brands once occupied, now lay vacant, only enhancing the dominance of online retailers. The proof for the growth of online sales? Forrester Research reported 12.6% online sales growth in 2014 to $176.2 billion, with the expected increase at an compound annual rate of 10% through 2015.
However, not all spells doom and gloom for mall operators and brick and mortar stores. Not for those who innovate. Mall operators and brick and mortar stores can combat new competitors and achieve greater success if they place the same importance as online retailers in understanding their customers through data analytics.
Case in point: A Philippines-based property developer which owns an extensive chain of 30 malls throughout the country have had a long history dealing with:
- Stores ending their lease due to unprofitability.
- Crowds have been affected by the irregularity of shop offerings, while more turn to online shopping.
The mall operator wants to:
- Discover how to better plan their which tenants to lease to and where to situate them
- Increase overall spending in their malls and keep customers loyal to their mall to become the leading property developer in the market
Understanding their customers and what makes them tick is key. BLEep beacon solution was deployed with the objective to:
- Track and map existing customer footfall, dwell time and movement flow by location to understand the their current performance
- Deliver good customer experience by easing customer traffic flow during peak periods
- Implement integrated marketing campaigns based on the information to position their brand and product offerings, be it through mobile engagement or in-store engagement
New customer visits increased by 20% and returning customer visits increased by 35% with an overall increase in sales of 10%.