A recent survey has projected that many Shopping Malls in America could close down in another 5 years’ time because e-commerce will lure away the traditional shopper. The closures could be in the region of between 20 to 25 percent and traditional shopping malls that will have to accept the inevitable.
The growing popularity of online purchase and Business portals have put a question mark over the survival of malls that are losing out in the new scenario. They had their uses when malls were places where one could get a whole range of products under one roof.
But, with the advent of e-commerce, the picture has changed to match with the lifestyle of buyers.
E-commerce will rule the roost
Los Angeles Times reports that a survey carried out by Credit Suisse, a Wall Street firm, has painted a gloomy picture for shopping malls. The survey has predicted that within another five years, malls will be edged out by e-commerce. The malls will have to face the reality that customers are switching their loyalties and their preference is shifting towards e-commerce. An example is the sale of apparel which is expected to go up to 35 percent by 2030 on the e-commerce route. At present, it is around 17 percent.
The study goes on to say that within the next five years, 20 percent to 25 percent of the shopping malls will down their shutters.
Many traditional malls have already announced numerous closures in recent months. As per estimates, around 8,640 stores will shut down by the year end because business will continue to suffer as e-commerce takes a firm grip.
New malls will cater to lifestyle needs
While there are fears of e-commerce encroaching into the domain of retail sales and across the counter sales, many shopping malls are aware of a gloomy future ahead.
In spite of that, new ones keep coming up but these are mostly lifestyle malls.
In the opinion of experts, the method of survival under such circumstances means that the malls will have to modify their business strategies and change their concept of marketing. The new-look malls will have to embrace the concept of multiple-user oriented affairs.
It is observed that the numbers of restaurants and service providers are greater compared to clothing stores for obvious reasons. People will opt for e-commerce when ordering clothes but, when it comes to eating, they want to feel at home and will patronize the mall culture.
Once there are outlets for food and entertainment, it is possible to build a court around them to cater to the needs of the people and be lifestyle oriented. Shopping malls of the future will be driven by demands of the future generation who would like to spend their money on entertainment rather than on just clothing. Malls of the future would be not just for shopping but also for other activities and experiences.
