Europe’s shopping centres bring joy to millions of consumers. From the adventure-oriented Puerto Venecia in Spain, to the cool ambience of Kanyon in Istanbul, these are places where shopping and sociability go hand in hand.
It’s a competitive market though, and mall owners and operators know they must constantly raise the bar to retain vital shopper traffic. The current trend for upgrades to existing European malls will be a boon to retail tenants, who rely largely on the look and vibe of a centre to attract the necessary visitor numbers to drive their revenues.
Laying foundations for the future
Aesthetic improvements, new crowd-pleasing anchors such as Apple, TK Maxx or H&M, innovative tenant mixes, and cross-channel marketing campaigns all aim to increase traffic and dwell time in modern shopping centres. These essential enhancements are increasingly being accompanied by investment by the property owners in people counting technology and traffic analytics solutions. This is because landlords want to see a ROI in their new concept centres, so are keen to measure and report traffic, which in turn allows them to structure leasing accordingly, and protect profitability
Benefits of unit level traffic data
With this data based approach, landlords are taking responsibility for traffic generation, keeping track of achievements and building on successes wherever possible. ShopperTrak is increasingly working with mall owners who want to collect data not just on perimeter counts (numbers coming in to the centre) but also at ‘zone’ level (counting flow into sections of the centre) and retail unit level (showing the traffic performance of individual stores).
They are granulating the footfall data, which is allowing them to benefit in many ways. Here are just a few examples of how unit level traffic data can be used to commercial advantage:
- Centre owners can make decisions on tenant mix, layouts and extensions based on hard data.
- Property owners and landlords can structure rental around zones within the shopping centre, with the busiest locations commanding higher rents.
- Leasing negotiations get a boost by providing tenant prospects with the footfall they can expect — daily, weekly, annually.
- Landlords can spot which units aren’t performing, and step in with assistance for individual retailers where needed.
- Sector specific traffic data across an estate can help landlords plan leasing and marketing strategies specifically for apparel, footwear, health and beauty and others.
- Mall rents can be justified with evidence that innovations and marketing campaigns are succeeding in drawing the crowds.
- Mall traffic and shopper movement flow data can be combined with demographics, weather data, sales data and purchasing power information, giving malls and tenants deeper insight.
- Tenants can be regularly briefed on weekly or daily power hours, or traffic surges, and should perform better with this insight.
The more data is made available, the better prepared all parties can be, which is why the concept of data sharing between landlords and retail tenants is being so carefully considered just now. The industry-wide interest in data underpins this trend, with the consensus that the more sophisticated all parties become with data-driven strategy, the more likely physical retail is to survive and thrive.
Contact us today for a demonstration on how people counting analytics can improve leasing models, and boost profitability in your shopping centres.
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