Mall management strategies
The Mall management strategy that I would be talking builds on the basic idea of interdependence between the Mall and the Retailer. It focuses on the business benefits that can accrue out of collaborated business management between the Mall Developers and the Retailers. This is not to say that the association between these two parties does not exist in the current scenario. Mall developers and Retailers do collaborate, but this collaboration has not been formalized and even when it is formalized, it is rather sporadic in nature. Thus the whole focus of this article is on suggesting a structured and formal way of collaboration between the Retailer and the Mall.
This concept is a whole process of enhancing customer traffic, sharing costs and increasing the profit margins.
Strategic Perspectives
Sharing the Burden-Collaborative Management
If we look at the customer's perspective, there are two major benefits that every customer seeks out of shopping in a Mall. One is an overall experience and the other is a whole variety of goods under one roof. These two expectations cannot be met satisfactorily either by the Mall developer or the Retailer. But if roles are clearly defined and each one develops a core competence, then a fantastic synergy can arise between the two parties. The Mall and the Retailer should work out a strategy where the Mall focuses on enhancing the overall experience and the Retailer focuses on the delivering a good variety of products. To formalize this association, there would have to be a clear definition of expectations and most importantly sharing of profits.
To summarise, the nature of collaboration would be:
• Redefinition of relationship between malls and retailers. It is no more the tenant landlord relationship that existed traditionally. Both need to consider each other as partners or associates, where one parties growth is greatly dependent on the other.
• Malls and Retailers work together to offer the Customers the complete experience. This complete experience would include products that can offer value for money on the one hand and attractive entertainment on the other hand.
• Through mutual discussions, collaborative strategy is defined and areas of core competence are identified. Each one seeks to improve and perfect the specific area of Competence. For e.g. Mall Developer could take up the responsibility of organizing promotions, while the retailer plans the merchandise according to the promotions requirements.
Pulling in the Customers
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
The suggestion regarding the shopping mall becoming its own liturgy is understandable. People are often fascinated by the mall’s environments. In addition, the mall may become a place of worship to an extent. Spending unhealthy amounts of time at mall may have attachment effect. Nevertheless, attending the mall,
What exactly does it take to create a successful leading retail store? So many companies are in competition of gaining the shopper’s loyalty they end up neglecting other important aspects. A perfect retailer has to balance out high-quality, attractive prices, customer loyalty, and an enjoyable environment. “Target has experienced considerable growth in the last decade because its stores offer fashionable merchandise at low prices in a pleasant shopping environment.” (pg42) “It has developed an image of ‘cheap chic’.” (pg42)
Tierney, J. (2006). Smith & Hawken's Retail Renaissance. Multichannel Merchant, 23(12) (p. 56). Retrieved Friday, January 12, 2007 from the ProQuest Standard database.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
Hansen, Torben, and Hans S. Solgaard. New Perspectives on Retailing and Store Patronage Behavior: A Study of the Interface between Retailers and Consumers. Boston, Mass: Kluwer Academic Publishers, 2004. USC Upstate Ebook. Web. 28 February 2011.
Whenever we go out shopping or relaxing at malls, we actually don’t see or recognize any effects of malls as we mostly go there for these two reasons. Malls are an integral part in the lives of America. They are shopping centers that have created a lot of buzz in many writers. This is because we have more malls in America than high schools. Malls have received praises from people like James J. Farrell, Jon Pahl and George Lewis who view malls as not only shopping centers but also as places that provide a reflection of the American culture and serve as centers of pleasure and entertainment. In contrast, William Kowinski and David Gutterson criticize malls for just being an artificial environment that creates disorientation among American shoppers. In my opinion, malls are just magnificent commercial buildings that create a sense of false dreams and imagination.
Goss argues that developers and designers of the built environment, specifically shopping centers and malls, use the power of place and understanding the structural layout of the space to boost consumption of the retail profits. Shopping centers are separated from the downtown area of shopping, either by distance and/or design. These establishments emerge for many to be the new heart and location for public and social life. In his article The "Magic of the Mall": An Analysis of Form, Function, and Meaning in the Contemporary Retail Built Environment, Goss also argues that the regulation of the spaces within the mall creates an atmosphere of "community" rather than one that is "public". This article’s main argument is that developers manufacture an illusion of doing more than just shopping when designing malls and shopping centers.
...act, Langham Place is not alone. There are more and more shopping mall operates their business in the same manner as Langham Place. Though these shopping centres tried to make breakthrough using different methods, it seems that impressions of these shopping malls are blurred in eyes of public. Since these shopping malls are usually invested by large-scaled enterprises with great powers, merchants without resources to apply different tactics like these large-scaled shopping mall, will one day be eliminated. Those survivors will become copies of one another. As Shoppers' Paradise famous for selling products with different characteristics, if similar shopping malls are seen everywhere and merchants with distinguishing feature disappears, Hong Kong will soon lose its competitiveness among tourists. Resent among society may also arise and raise different social problems.
The design of the Mall of America is genius because it is four floors with more than 500 stores also the designers where smart by having natural light enter the Mall this to me makes it feel more homie. The mall was also smart on the how people can park they have four ramps which has five floors which means that it will be easier for the customers to access their building. The Mall of America was also smart on putting an amusement park in their sate of the art mall, this is a big because kid will want to go ride on the roller costars and when the kids see Lego City they will beg their portents to buy them some Legos. The Mall was also smart by putting an aquarium in the Mall which was another attraction that gets peoples attraction to come and visit the mall, another way the mall gets people to come to the Mall is the Movie Theater that is on the top floor of the Mall. Another reason why I think that people keep coming back to the Mall of America is because you can get everything you want in one shot without leaving to go to multiply stores, people could really spend a whole day at the Mall of America because they have a food court and they also have a nice sit-down dinning which is nice. The Mall of America also is more than just a shopping mall, this mall offers work out session because the mall is 1.15 miles so people will just walk around the mall for their daily workout. The Mall of America also has church serves
As the retail industry is confronted with extraordinary challenges (Deloitte LLP, 2011), firms are facing increased competition. Porters leading authority on competitive strategy is largely accountable for the increased importance to a firm’s strategy. The retail industry is becoming highly saturated as the world is becoming smaller; this point alone makes strategy a vital component to a firms success.
Variety is another advantage of the mall. There are specialty stores, such as candle stores, bath and beauty stores and music and video stores. These are the anchors of the mall, and the mall provides "odd stores" for those eccentric shoppers who are looking for different items.
It encompasses all those activities in which one business builds relationships with other businesses for efficiently managing several of their business functions. Thus it involves co...
Places such as coffee shops and lounges have been included in the structures of these malls to give consumers a more comfortable feeling of relaxation. Instead of shopping and leaving people are more enticed to sit back and relax. Enjoying a meal and a cup of coffee while shopping has become a time consuming yet enjoyable process for most shoppers. It's suggested that the longer a person stays the more money they are bound to spend. Mall managers and scientist are not attempting to manipulate the consumer but more so enhance their shopping experience. There's also a sense of creativity and connectivity found in calming environments such as coffee shops that establishments like shopping malls are trying to bring to the shopping