A new take on Experiential Retail - The 'China Mall'

A viewpoint from Daley Hub

Retail pundits have been saying for years that to balance the appeal of online, the consumer offer from bricks and mortar retailers needs to be more experience-led. Many UK indies have taken up the challenge with all manner of customer clubs, demo events and curated shopping – as well as playing to traditional strengths such as one to one service and knowledgeable staff to give advice. A weaker area in the UK is the multiple sector where corporate policy can stifle store-based innovation. Something for multiple brands to contemplate seriously as they roll out regional marketing programmes.

But the current ‘missed opportunity’ is not just down to multiple retailers, however. Both shopping centre and retail park operators in the UK are also missing a trick. At Daley Hub, we are seeing a disconnect between ‘experiential’ in the UK and what happens in outlets run by equivalent operators in other countries. This is to the detriment not only of the locations themselves, but also to the retailers who pay for their space.

Based on Daley Hub’s knowledge of what happens overseas, multiple retail operators and retail hubs need to up their UK game in terms of making bricks and mortar destinations real consumer attractions.

Let’s take China as an example. Recently we had the opportunity to experience a typical shopping centre in downtown Suzhou. Locally it would be called a ‘mall’ very much like the US, but what it offered was refreshingly full of experiences for all the family. First, there were top quality showcase stores – essential to anchor the retail offer – but it was the interactive areas that really ensured footfall. And footfall committed to a ‘day out’ experience.

We saw:

• Fun for kids (and bigger kids) – in this case in the form of go karting

• Gaming booths proving a real draw

• Exercise facilities – very good ones – with boxing rings especially popular.

• An education hub ranging from language classes to childcare – all with opportunities to practice or to enter into live debates about best policy

• Light entertainment spaces – of all kinds – so that punters can really make a day of it.

• And of course, food, but not just a choice of serveries, but sharing spaces, with opportunities for social interaction. So valued in what can be an increasingly lonely world.

The strategy is clear. People are time-short, they tend to work - then go home during the week... So, to think of going somewhere and do one task (like shop) would be seen as not efficient. Very few people go to shopping centre solely to make a specific purchase - with 50% of sales now online, if it is just for that they will buy remotely. But, those same shoppers might very well spend a day or an afternoon, if there are a number of practical and / or fun opportunities. In other words, achieving several successful tasks and then having dinner. Also key to the offer is easy and cheap parking - a massive driver that boosted both sales and visitor numbers.

To summarise the winning formula: a shopping centre needs to be a living hub, where you can - at a reasonable rate:

• Eat

• Buy things

• Entertain kids constructively

• See health, wellbeing and beauty / personal care experts

• Take lessons and classes

• Enjoy exercise

• Relax /work - with coffee / tea - while kids are looked after and occupied

China is not the UK, but there are retail lessons to be learnt. Many independent retailers have taken up the bricks and mortar versus online challenge with initiatives that are reaping rewards. It’s time that multiple operators got their heads around the same conundrum with similar gusto.

At Daley Hub we can make initiatives worthwhile.  For more information contact us.