Does anyone really care who owns the local mall? Is it brand loyalty or just location that keeps shoppers coming back? What is the next generation looking for in a shopping experience?
These are questions that mall property owners, such as Simon Property Group, Westfield and The Mills Corporation, are asking. The consensus? Retail centers are turning to loyalty programs and entertainment options to entice shoppers to return to their properties.
For Discover Mills in Lawrenceville, owned by The Mills Corporation, loyalty programs include Muggsy's Meadow, an 8,000-plus member kids club, that does about four to six events a month.
"We do these events, geared towards education, and then some of our tenants have different specials for either the day or the month," Discover Mills Marketing Director Heather Lisa Rittner says.
"By showing your Muggsy Meadow card, that looks basically like a credit card but it's a loyalty card, they can get special discounts," Rittner says.
And Discover Mills, associated with the Discover Card, does either a back-to-school and/or holiday promotion every year. Anyone who spends $200 or more this year will receive a $15 gift card back.
The Simon Kidgits Club offers events for kids and mall discounts, which this year include a breakfast with Santa at Gwinnett Place and the Mall of Georgia. The Simon Giftcard, which is a VISA debit card, is a popular choice for those who don't know what to buy that special teen. It can be used at most retailers, including any Simon mall.
These programs are aimed at giving shoppers a whole new experience when they visit retail centers. But are they enough?
"Loyalty programs are pretty much a strong tactical piece in a marketing arsenal," says David Kendall of Kendall Ross Brand Development & Design in Seattle. "It serves its functional purpose, but I think what really shoppers are looking for is some sort of brand loyalty or some sort of experience. The stores themselves have their own strong brand. People understand what Banana Republic is. But I think there's also an opportunity for the centers themselves to brand what kind of experience shopping at the Banana Republic at their center would be like, too."
Kendall says he has seen information that shows the frequency of visits to retail centers is decreasing, but the length of stays is rising. Entertainment has become a way to keep shoppers at malls for longer periods of time while appealing to all ages.
"I also think shoppers are looking for other things besides shopping," Kendall says. "I think they're looking for certain kinds of experiences. They're looking for a variety of choices. We all know that I could go to any mall in the world and find a Gap and a Victoria's Secret. There needs to be a variety of choices. And the shoppers also need to be exposed to constant surprises."
Simon attracts adults with events like Super Chefs Live!, a cooking celebration that included Food Network's Sara Moulton whipping up signature dishes at the Mall of Georgia in April.
Rittner says the addition of Medieval Times, a theme restaurant where shoppers can eat dinner and watch a show, is slated to open in August 2006 and will likely bring in anywhere between 300,000 and 400,000 people a year.
"If you're going to ask people to spend money, you're going to have to make it easy for them to spend money and create an environment that allows them to feel good about doing that," Kendall says.
Read the full article, as featured in "Gwinnet Business Journal" - May 2007
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