Will the pandemic spur more ‘dead malls’ or a shopping renaissance?
Malls are modernizing, but the traditional consumer habits that give these spaces their charm continue to transcend flashy tech and retail innovations.
For many, a mall is a place to leisurely take in the latest window-displayed trends, an after-school hangout, a popular hub for senior's exercise, an excuse to satisfy a food court craving.
During a pandemic, a mall is none of those things.
Hamilton shoppers who waited weeks for the green light to return to malls - when red-control zone restrictions resumed on Feb. 16 - were in for a disrupted experience.
The food court is open for takeout only, and we want to make sure that no loitering is happening in our shopping centre," Lime Ridge Mall general manager Liem Vu told The Spectator at the time. Retailers continue to book pickup times with customers, he added, to avoid congestion, avoid gathering, avoid lingering."
Even before the business woes caused by the pandemic, some malls, especially in rural areas, fell under siege by the changing landscape of retail as the reigns of iconic department stores like Zellers and Sears came to an end. Smaller retailers were at risk of being squeezed out by premium brands, or worse, entire malls shuttered, giving rise to the term dead malls."
That phenomenon is facing some retailers now, thanks to the pandemic.
There's only so [much] room for stores in malls. Most will have to rethink should they be here or not, and it will vary by market," said Marty Weintraub, partner and national retail leader at Deloitte Canada.
Foot traffic in Canada's top 10 malls had fallen 42 per cent in February 2020 compared to February 2019, and 22 per cent in the same period in 2019 compared to 2018, according to a Deloitte report last summer on the future of malls. The firm's research suggests the path to purchase has been altered permanently" as a result of the pandemic, with digital shopping, online concierge services, and virtual product testing emerging as consumer demands.
Cadillac Fairview, which owns Lime Ridge Mall, is adapting to this need. In July, the company launched a mobile app for shopping called LiVE by CF," which allows customers to browse merchandise of its retail partners, map the most efficient shopping routes," and access COVID-19 protocols, a press release notes.
Resilient businesses will tend to adapt to these changes, said Brent McKnight, associate professor of strategic management at McMaster University's DeGroote business school.
A willingness to embrace new technologies and new approaches is key," said McKnight, who is studying resiliency among main street businesses during the pandemic. He added that having slack resources, loyal customers, and strong relationships with suppliers can make it easier for retailers in challenging times.
Food will also present another opportunity to keep the heartbeat in a mall, the Deloitte research predicts, with the departures of midmarket fashion retailers making way for an exciting breed of restaurant offerings," the report notes.
At Jackson Square, for example, apparel shops are outnumbered by quick service foods. But fine dining and the kind of food that will be present in malls of the future will likely change, said Deloitte's Weintraub.
You wouldn't have seen a four-star restaurant on UberEats 12 months ago. You see it now," he said. Any time you're in a situation of survival, you're changing behaviour for the long term, and a lot of that will stick.
Vjosa Isai is a reporter at The Spectator covering Hamilton-based business. Reach her via email: visai@thespec.com.