Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/528948
T H E C O M M O N A R E A CONSUMERS SHUN LUXURY, IKEA GOES ONLINE — FINALLY — AND TECH SAVES LEASING TIME 6 S C T / J U L Y 2 0 1 5 Consumer shopping habits have changed in the 40 years since the first U.S. mall opened, but the venue remains Americans' favorite place to shop, according to a JLL survey of nearly 3,000 shoppers nationwide. The survey revealed that nearly 100 percent of the respondents had visited a mall at least once in the preceding three months. At least 60 percent claim they visited a mall as often as six times over that period, and roughly 33 percent said they had made more than six trips. "Today's consumers need a reason to come to the store beyond making a transaction, but the million-dollar ques- tion on the minds of retailers and retail owners is, What exactly will entice shoppers?" said Holly Rome, JLL's director of retail leasing. "The survey uncovers that malls and other brick-and-mortar retail options are still an essential venue for consumers to purchase goods despite the expansion of online shopping alternatives." Variety of tenants is important, Rome says. "Populate your mall with key and complementary retailers," she said. Nearly half of the respondents indicated a mall's selection of stores is the key driver for their visits. And nearly three-quarters indicated that they visit as many as five stores; about 20 percent said they hit between six and eight stores. "If consumers take the time to venture to a brick-and- mortar location, they're making it worth their while," Rome said. Convenience is also important. "Retail centers will remain resilient by offering the right balance of the tangible and intangible, as nearly 80 percent of shoppers report they'd be more inclined to visit a mall if it had more convenient service or health businesses," Rome said. Well-planned promotions are a must, too. "Consumers want information pushed to them through promotional emails, mailers and social media," Rome said. According to JLL, the most effective way to reach shoppers is overwhelmingly through email promo- tions (78 percent), but in a congested inbox this is about quality over quantity, and frequency is key. More than half of the survey respondents said they check out shopping apps like RetailMeNot and ShopKick or subscribe to direct text messages from retailers. CASHING OUT Denmark could be the frst country to go cashless and is already well down that road, say observers. Nearly 40 percent of Danes use Danske Bank Mob- ilePay, in which money is exchanged electronically. Scandinavians in general rely on cash for less than 6 percent of their transactions. Promotions key to mall success: Survey Top CEOs get raises Compensation for the top 25 highest-paid U.S. equity REIT CEOs increased by 6.2 per- cent year over year in 2014, to $10.9 million, according to SNL. Average CEO compensa- tion for the 10 largest REITs was $9.9 million last year, SNL reports. David Simon, chairman and CEO of Simon, was the second-highest- compensated REIT chairman, at $14.7 million for the year, a decrease of 6.1 percent from 2013. Office REIT Prologis Inc. Chairman and CEO Hamid Moghadam led the group, with $16.5 million, an 8.7 percent increase from the year before.